Van Dhan Vikas Kendra: Up to Rs 15 Lakh per Centre Under PMJVM

From gathering produce to running an enterprise

Forest-based livelihoods include products other than timber, such as fruits, seeds, honey and other locally gathered materials. These are commonly described as minor forest produce. The word “minor” identifies a category; it does not mean the income is unimportant to a household. A gatherer selling an unsorted seasonal product has a different commercial position from a group able to process, store and market it.

Value addition means doing useful work that makes a product more suitable for its next buyer. Sorting separates grades; processing changes its usable form; appropriate packaging and storage protect the product. These activities can create opportunities beyond the initial sale of raw material. But a higher selling price is not automatically a higher profit: labour, equipment, transport, wastage and other costs must also be covered.

Van Dhan builds on existing knowledge of produce and local conditions rather than treating gatherers as people without skills. Its enterprise model adds collective organisation, technical support and access to markets. A group can aggregate enough material to attract a buyer or share equipment that would be difficult for one household to purchase. Those advantages depend on the group actually working together.

The programme and the wider mission

The Van Dhan scheme was launched on 14 April 2018 at Bijapur in Chhattisgarh. The initial model included training and primary processing, with tamarind-brick making among its proposed activities. That example explains the basic idea: a forest product need not leave the community only in its least processed form. It does not establish that every centre must process tamarind or use the same equipment.

The wider Pradhan Mantri Janjatiya Vikas Mission, abbreviated PMJVM, supports tribal products and livelihood enterprises. Van Dhan is a component of that framework, not an alternative expansion of the same abbreviation. The Tribal Co-operative Marketing Development Federation of India, known as TRIFED, is the national-level body working under the Ministry of Tribal Affairs. State implementing institutions and district coordination connect the national framework to local enterprises.

What a centre represents

The published mission guidelines describe a Van Dhan self-help group of up to 20 members. Around 15 such groups form a Van Dhan Vikas Kendra, with up to 300 members. Grouping them creates potential economies of scale in training, aggregation, processing and marketing. These are organisational provisions, not proof that each sanctioned centre has exactly 300 active members or identical production.

The guidelines also preserve the position of earlier sanctioned groups that comply with the rules applicable when they were formed. This is why older descriptions of the programme may use a different grouping pattern. The initial pilot arrangement does not replace the later published structure. Equally, that later structure does not invalidate older groups protected by the guidelines.

Understanding the ₹15 lakh provision

Under the guidelines, TRIFED may sanction a maximum of ₹15 lakh to the state government for establishing a centre. Eligible uses include raw material, training, tools and machinery, mentoring, packaging, branding, transport and storage. A proposal and its appraisal connect the amount to the planned activity. The figure is therefore a centre-level support ceiling, not a personal entitlement or an unconditional loan to each gatherer.

Training is an integral part of the arrangement because equipment alone does not create a business. Members need to operate it safely, maintain quality, manage stock and understand costs. The programme's resource documents accordingly cover business planning, bookkeeping, storage, transport and marketing. The combination matters: a processing machine without raw material, a suitable product or a buyer may remain underused.

Markets, sustainable supply and shared returns

The market chain has several connected stages. Collection must provide suitable material; processing must meet the intended buyer's needs; storage and transport must preserve quality. Branding can help identify the product, but it cannot substitute for reliable supply. A business plan also needs to account for seasonality rather than assume that the same quantity of forest produce is available throughout the year.

Value addition and a minimum support price serve different functions. The latter provides a procurement safety-net framework for covered produce under the applicable arrangements. Processing and marketing seek additional value through the product and its sale. A centre's existence does not mean every product has a guaranteed buyer, unlimited procurement or an assured profit. Sustainable harvesting is also essential if the enterprise depends on natural resources continuing to regenerate.

The important results are therefore more specific than the number of centres approved. Are members participating, is equipment usable, are products sold, and are costs and returns recorded clearly? These questions connect institutional support with household livelihoods. They also help distinguish a functioning collective enterprise from infrastructure that exists only as a sanctioned proposal.

Conclusion

Van Dhan seeks to strengthen tribal producers' position by combining their knowledge with processing, organisation and market access. The ₹15 lakh provision supports that shared enterprise; it is neither a separate payment to every member nor evidence of income already earned. The programme's promise rests on a complete chain from sustainable supply to a viable product and a real buyer. Its success should be understood through those working links and the returns reaching members.