§1What this business is

Ten solar-powered charkhas (each with solar panel, battery and motor) spin sliver/roving into yarn, which khadi institutions weave into towels, bedsheets, uniforms and similar cloth. Sliver comes from KVIC's sliver/roving plants. KVIC says it helps sell solar charkha cloth to government departments and the Railways. Spinners need about a week of training.

Capacity: Yarn worth ₹57,95,650 a year at full capacity from 20,000 kg of sliver; 70% use in year 1.

§2Is it right for you?

Who it is for

A khadi institution or rural entrepreneur tied to a khadi weaving centre.

Who it is not for

Someone without a buyer for the yarn.

Advantages

  • KVIC supplies sliver and helps market the cloth
  • Runs on solar power — almost no electricity bill
  • Creates jobs for rural spinners, many of them women
  • High PMEGP margin money (35%) in the report

Drawbacks

  • Depends on khadi institutions buying the yarn
  • Low spinner wages make staff hard to keep
  • Battery and panel upkeep costs
  • Yarn price is set by the khadi system, not the open market

Skills you need

  • Training and managing spinners
  • Charkha and solar-kit upkeep
  • Yarn quality and count control
  • Working with KVIC and khadi institutions

Why difficulty 2/5: Simple machines and KVIC support; you must keep spinners and a yarn buyer.

§3Market

Who buys

  • Khadi institutions that weave the yarn
  • Government departments and the Railways (cloth, through KVIC)

How it sells

  • Supply to the parent khadi institution
  • KVIC Marketing Directorate support

Good to know

  • Cloth made from the yarn: towels, bedsheets, pillow covers, dusters, uniforms, dungri cloth (report).

§4Raw material & machinery

ItemQtyCost
8-spindle charkha with solar panel, battery and motor10₹8,50,000 (₹85,000 each)
Transportation1₹36,000

From: KVIC Project Profile — Solar Charkha 8 Spindle (PMEGP)

  • Sliver/roving20,000 kg a year at ₹184 a kg = ₹36.80 L (full capacity); from KVIC's sliver/roving plants

From: KVIC Project Profile — Solar Charkha 8 Spindle (PMEGP)

In our raw material database

Cotton (lint) →

§5Licences & registration

  1. Udyam registration
  2. GST registration
  3. Khadi certification through KVIC if you sell as khadi

We can do this registration for you

§6Schemes & subsidies

Built for PMEGP (35% margin money in the report); MUDRA and CGTMSE can also back the bank loan.

§7Money

How the investment is worked out: KVIC project report: 10 charkhas with solar panel, battery and motor ₹8,50,000 + transport ₹36,000 = ₹8,86,000; pre-operative ₹10,000, furniture ₹20,000, contingency ₹5,000 (capital ₹9,21,000); working capital ₹5,46,304 → total ₹14,67,304. Finance: own 5% ₹73,365, term loan ₹8,74,950, working capital ₹5,18,989; KVIC margin money (35%) ₹5,13,556. Work shed rented. The cover says 24 spindles but the machine list says 8-spindle charkhas.

Working capital: Working capital ₹5,46,304 per cycle (bank ₹5,18,989); sliver is the main cost (₹184 a kg).

Year not printed on the KVIC profile — check current machinery prices.

How to prepare a loan file

§8Export potential

Confirm the HS code in the DGFT ITC(HS) lookup before you export

5205Cotton yarn (other than sewing thread), 85% or more cotton, not for retail sale

Export council / board: Khadi and Village Industries Commission (KVIC)

  • Small units sell yarn within the khadi system rather than exporting it.

§9Risks — where people fail

  • Sliver supply delays
  • Spinners leaving
  • Battery failure
  • Slow payment from institutions

§1030 / 60 / 90-day plan

A general plan that applies to any business. A plan for this business will be added after research.

  1. Days 1–30: Visit a working solar charkha yarn spinning unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
  2. Days 31–60: Udyam and the licences you need (Udyam registration, GST registration), a project report (DPR), and the scheme or loan file.
  3. Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.

§11Who to connect with

Not verified yet

Associations, clusters and training institutes — the directory is being built. Connect

§12Watch

There is no episode on this business yet. Shows are coming soon on the Podcast page.

Want to start Solar Charkha Yarn Spinning?

DPR, loan file or registration — ask us on WhatsApp.

Get a DPR / loan file made

Sources

  1. KVIC Project Profile — Solar Charkha 8 Spindle (PMEGP)

Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.