ARI Division Schemes

The Agro and Rural Industries (ARI) Division operates under the Ministry of Micro, Small and Medium Enterprises (MSME) in India. Its primary objective is to promote and support micro and small enterprises, especially in rural and agro-based sectors. By implementing various schemes, the ARI Division aims to enhance employment opportunities, foster entrepreneurship, and facilitate sustainable economic development in rural areas.

The ARI Division collaborates with key organisations such as the Khadi and Village Industries Commission (KVIC), the Coir Board, and the Mahatma Gandhi Institute for Rural Industrialisation (MGIRI) to execute its initiatives effectively.

Explore the diverse schemes initiated by the ARI Division to bolster agro and rural industries, empowering artisans and entrepreneurs across India:

Prime Minister's Employment Generation Programme (PMEGP)
A credit-linked subsidy scheme providing financial assistance to individuals for setting up new micro-enterprises in the non-farm sector. It is a credit-linked subsidy scheme that provides financial assistance to individuals, including rural artisans and unemployed youth, to set up new ventures.

At the national level, the Khadi and Village Industries Commission (KVIC) serves as the primary implementing agency for the scheme. In each state, the PMEGP scheme is executed through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), and District Industries Centres (DICs). This ensures comprehensive coverage and support across the country.

Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
The scheme seeks to enhance the competitiveness and sustainability of traditional industries by organising artisans into collaborative clusters. By providing support for infrastructure development, capacity building, and market promotion, the scheme enhances the productivity and income of artisans. The Khadi and Village Industries Commission (KVIC) acts as the nodal agency for the implementation of SFURTI.

A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship (ASPIRE)
Focuses on setting up incubation centres and technology business incubators to promote entrepreneurship and innovation in agro-based industries. The scheme focuses on skill development, capacity building, and nurturing start-ups in rural areas. It encourages participation in international markets by supporting entrepreneurs in developing innovative products and services. Financial institutions collaborate with implementing agencies to provide necessary funding and support.

Coir Vikas Yojana (CVY)
Targets the development of the coir industry through skill development, quality improvement, and market promotion. It focuses on skill development, quality improvement, and market promotion of coir products. The scheme includes components like the Skill Upgradation and Mahila Coir Yojana, which aim to empower women and enhance their participation in the coir sector. Coir exporters benefit from the scheme through support in participating in international trade fairs and exhibitions.

Coir Udyami Yojana (CUY)
Provides credit-linked subsidy for setting up coir units, encouraging entrepreneurship in the coir sector. The scheme covers project costs up to ₹10 lakhs, excluding working capital, which should not exceed 25% of the project cost. The Coir Board facilitates the implementation of CUY by coordinating with financial institutions to ensure smooth disbursal of subsidies and loans.

Market Development Assistance (MDA)
The Market Development Assistance (MDA) scheme offers financial support to Khadi institutions for production and marketing activities, enhancing their competitiveness. It replaces the earlier rebate scheme and provides assistance for activities like participation in exhibitions, buyer-seller meets, and other market promotion initiatives. The scheme aims to increase the earnings of khadi artisans and ensure the quality of khadi products for customers.

Interest Subsidy Eligibility Certificate (ISEC) Scheme
The Interest Subsidy Eligibility Certificate (ISEC) Scheme provides concessional bank finance to Khadi institutions for working capital requirements. Under the Interest Subsidy Eligibility Certificate (ISEC) Scheme, Khadi institutions receive working capital loans at a concessional interest rate of 4% per annum. 

The Central Government, through the Khadi and Village Industries Commission (KVIC), compensates the lending banks for the difference between this concessional rate and the actual lending rate. This scheme plays a vital role in sustaining the operations of Khadi and Village Industries.

Janshree Bima Yojana for Khadi Artisans
Janshree Bima Yojana is a group insurance scheme for Khadi artisans, providing coverage against natural and accidental death, as well as disability. The scheme also offers scholarships to the children of insured artisans studying in classes 9 to 12. It ensures social security and financial stability for Khadi artisans, contributing to their overall well-being.

Science and Technology Scheme
The Science and Technology Scheme supports research and development activities in traditional industries to enhance productivity and competitiveness. It aims to extend the benefits of laboratory-level research to the field level, facilitating the application of new technologies in the production processes of micro and small enterprises. The scheme also provides assistance for testing and service facilities, promoting innovation in agro-rural industries.

The ARI Division implements these schemes through collaboration with national boards, financial institutions, and state-level agencies. The Khadi and Village Industries Commission (KVIC) and Coir Board are the key implementing bodies for most schemes. Local NGOs, SHGs, and co-operative societies also help extend benefits to rural artisans and entrepreneurs.

Most schemes follow a cluster-based development model, encouraging group-based skill development, marketing, and infrastructure support. Online portals, such as e-MSME and PMEGP e-portal, are used for application, monitoring, and fund disbursement. Training institutions and technical support centres further enhance the reach and effectiveness of these programmes.

Awareness campaigns and handholding support ensure better participation and long-term impact at the grassroots level. The schemes are regularly reviewed to match current market trends and rural industrial needs.