Van Dhan Scheme- Details, Objectives & Features

Van Dhan Scheme

The Prime Minister of India Shri Narendra Modi launched the Van Dhan Scheme under Ministry of Tribal Affairs and TRIFED on 14th April 2018 during the celebrations of Ambedkar Jayanti at Bijapur, Chattisgarh.  Emphasizing the important role of value addition in increasing tribal incomes, Van Dhan Scheme, Jan Dhan Scheme, and Gobar-Dhan Scheme had the potential to change the tribal-rural economic system as stated by the Prime Minister of India.



The establishment of “Van Dhan Vikas Kendra” is for providing skill upgradation and capacity building training and setting up of primary processing and value addition facility under the Van Dhan Scheme. This first model Van Dhan Vikas Kendra in Bijapuris being implemented for the training of  300 training beneficiaries with a total outlay of Rs.43.38 lakhs for training, providing equipment & tools for primary level processing and infrastructure & building for housing the Kendra. This Kendra to start with will have processing facility for Tamarind brick making, Mahua flower storage facility and chironjee cleaning and packaging.

Features of Van Dhan Scheme

The Van Dhan Scheme possesses these key features:

  1. At the unit level, aggregation of produce would be done by SHGs having about 30 members each forming Van Dhan Vikas ‘Samuh’. The SHGs would also undertake primary value addition of the MFPs using equipment such as small cutting and sieving tools, decorticator, dryer, packaging tool etc based on MFPs available in the area.
  2. A typical Van Dhan Vikas Samuh would have the following facilities:
  • A cluster of ten such SHGs within the same village shall form a Van Dhan Vikas Kendra. Subject to successful operations of the samuhs in a Kendra, common infrastructure facilities (pucca Kendra) may be provided to the Kendra in the next phase in terms of building, warehouse, etc. for use of the samuh members
  • An illustrative list of major MFPs which may be covered under the initiative are tamarind, mahua flower, mahua seed, hill broom, chironjee, honey, sal seed, sal leaves, bamboo split, myrobalan, mango (amchur), aonla (churan/candy), seed lac, tez patta, cardamom, black pepper, turmeric, dry ginger, cinnamon, coffee, tea, sea buckthorn tea, etc. Apart from these, any other MFP with potential for value addition may be included.
  • Provision for required building/ infrastructure support to be established in one of the beneficiary’s houses/ part of the house or Government/ gram panchayat building
  • Equipment/ Tool Kit comprising of equipment such as small cutting and sieving tools, decorticator, dryer, packaging tool etc. based on MFPs available in the area
  • Fully equipped training facilities for a batch of 30 trainees with provision for raw material for training purpose and supply of trainee kits (comprising of the bag, scrubbing pad, pen, brochures, training manual, booklet etc).
  • Provisioning of working capital for the SHGs through tie up with financial institutions, banks, NSTFDC etc

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Implementation of Van Dhan Scheme

  • Under Van Dhan, 10 Self Help Groups of 30 Tribal gatherers is constituted.  They are then trained and provided with working capital to add value to the products, which they collect from the jungle.  Working under the leadership of Collector these groups can then market their products not only within the States but also outside the States.   Training and technical support are provided by TRIFED.  It is proposed to develop 30,000 such centers in the country.
  • Value addition assumes critical importance in ensuring remunerative prices to the tribals in this approach. Three stage value addition would be the cornerstone for enhancing incomes of the tribals under the scheme. The grass root level procurement is proposed to be undertaken through Self Help Groups associated with implementing agencies. Convergence and Networking with other Govt. departments/scheme shall be undertaken to utilize the services of existing SHGs like Ajeevika, etc.  These SHGs shall be appropriately trained on sustainable harvesting/collection, primary processing & value addition and be formed into clusters so as to aggregate their stock in tradable quantity and linking them with the facility of primary processing in a Van DhanVikas Kendra.
  • The stock after primary processing shall be supplied by these SHGs to the State Implementing Agencies or direct tie up for supply to the corporate secondary processor. For creation of secondary level value addition facility at district level and tertiary level value addition facility at State level, Big Corporates shall be involved under PPP model. This PPP model will be based on utilizing Private entrepreneur skills in undertaking processing as well as marketing of the produce and Central/ State Govt. support in terms of creating infrastructure and providing enabling environment for undertaking value addition of systematic scientific lines. These will be sophisticated large value addition hubs managed by the Private entrepreneur.

The Van Dhan Vikas Kendras will be an important milestone in the economic development of tribals involved in the collection of MFPs by helping them in optimum utilization of natural resources and provide the sustainable MFP-based livelihood in MFP-rich districts.

One can also get more information from  this link

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