Scheme for Market Development Assistance for khadi financial assistance


Ministry of micro, small and medium enterprises


Aflexible, growth stimulating and artisan oriented Market DevelopmentAssistance (MDA) scheme has been introduced in place of the erstwhile system of Rebate. Under the MDA, financial assistance is provided to institutions @ 20% of the value of production of khadi and polyvastra, to be shared among the artisans producing institutions and selling institutions in the ratio 25:30:45. MDA allows the institutions flexibility to use the assistance for improving the outlets, products and production processes, besides giving incentive to customers, etc.

Sponsored By

Central Government of India


Financial assistance to khadi institutions to use for improving the outlets, production, processes or giving incentive to customers


The Khadi institutions, having valid Khadi certificate and categorised as A+, A, B and C only are eligible to avail MDAgrant from KVIC.



MDAshall is allowed @ 20% on cost of production of Khadi (cotton, silk, woollen) and polyvastra to the extent of production target approved by the Standing Finance Committee (SFC) of KVIC for the year.

How To Apply

A Udyami Helpline: Dial 1800-180-6763 [Toll Free Number] for queries relating to this Schemes.

The total amount of MDA on production will be claimed by the producing institution from the KVIC and will be distributed amongst the stakeholders viz., spinners and weavers, producing institutions and selling institutions in the ratio 25%, 30% and 45% respectively. Producing institutions shall submit the quarterly claim of MDAbased on the actual production achieved during the preceding quarter of the financial year. The difference, if any, would be adjusted in the last quarter of the financial year on the basis of audited accounts by the Chartered Accountants. The MDA shall be preferably reimbursed electronically by the State/Divisional office of the KVIC on the quarterly basis.




Micro, small and Medium enterprises

Share this article :

Facebook Twitter Google

See Also


vishal hule is the author of

Authored By Vishal Hule

Vishal Hule is the founder of He is from Pune. Vishal Hule is Software Engineer by profession and political enthusiast too.
His blog, receives 4,20,000 to 4,30,000 Pageviews/month.