Pradhan Mantri Van Dhan Yojana (PMVDY)

Pradhan Mantri Van Dhan Yojana (PMVDY) or Van Dhan Vikas Yojana (VDVY) is a scheme launched by the Ministry of Tribal Affairs, Government of India, with the aim of improving the livelihood of tribal communities in India. The scheme focuses on developing value chains for forest-based products and enhancing the income of tribal communities by providing them with skill training and capacity building.

Under the Van Dhan Vikas Yojana, tribal communities are encouraged to form clusters and take up the processing of forest produce to increase their value. These clusters are provided with necessary infrastructure, such as tools and equipment, and training in value addition and entrepreneurship. The scheme also provides market linkages to the tribal communities for their products through various channels, including online platforms.

The scheme has a three-tiered implementation process that involves the formation of Van Dhan Vikas Kendras at the village level, Van Dhan Vikas Sanrakshan Samitis at the cluster level, and Van Dhan Vikas Samuh at the district level. The scheme has a target of establishing 50,000 Van Dhan Vikas Kendras across the country, which will benefit around 10 lakh tribal entrepreneurs.

The Van Dhan Vikas Yojana has the potential to transform the lives of tribal communities in India by providing them with alternative livelihood opportunities and improving their socio-economic status. The scheme not only promotes entrepreneurship but also helps in the conservation of forests and the protection of biodiversity.


  • Initiative targeting livelihood generation for tribal gatherers and transforming them into entrepreneurs.
  • Idea is to set-up tribal community owned Van Dhan Vikas Kendras (VDVKs) in predominantly forested tribal districts.
  • A Kendra shall constitute of 15 tribal SHGs, each comprising of up to 20 tribal NTFP gatherers or artisans i.e. about 300 beneficiaries per Van Dhan Kendra.
  • 100% Central Government Funded with TRIFED providing Rs. 15 lakhs for each 300 member Van Dhan Kendra


Depending on the nature of the method of its extraction, hydrogen is categorised into three categories, namely, Grey, Blue and Green.

  • Tribal Gatherer Contribution of Rs.1000 / member to instil ownership
  • Panchayats/ District Administration to provide
  • Operational premises to SHGs
  • Well thought out Bankable Project Report comprising of -
    • Annual MFP Gathering Plan,
    • Types of Value Addition: Sorting and Grading, Processing
    • Business Plan
  • Procurement of Equipment (thru' GeM/ tendering by SIA/DIU)
  • Identification of Master Trainers
  • Training in Value addition, Use of equipment, Enterprise Management
  • Identification of local, district level, state level, national, global buyers for MFP Value Added Products
  • Arrangement for Logistics & Transportations
  • Branding & Marketing

Van Dhan Yojana is not limited to gathering NTFPs from forest and value addition. The Scheme allows SHGs to engage in farming/agriculture production and post-harvest processing and value-addition of these items.


Stage I (set up) of the Van Dhan Yojana shall be to set-up 6000 Van Dhan Kendras over a period of 2 years in tribal districts across all States (except Haryana, Punjab and Delhi, as these do not have Scheduled Tribe gatherers). During this phase the provision for required building facilities shall be established in one of the beneficiary’s household or part of house or Government/ gram panchayat building.

  • Implementation Stage: The Van Dhan Yojana is envisaged to be implemented through a robust framework with TRIFED at the centre level, State Nodal Department and State Implementing Agency, District Implementing Units at State and district level respectively.
  • Supply of Equipment & Commencement of Training: The District Implementation Unit in respective states to provide for each Van Dhan Vikas SHG with basic equipment for harvesting and value addition of MFPs shall. Through ESDP program to impart trainings for each Van Dhan Vikas SHG with a maximum of up to 7 days training on sustainable harvesting, value addition of MFPs, branding and Marketing.
  • Branding & Packaging: The members of the Van Dhan Vikas SHG shall adopt the learnings from the training programme and start operations by sustainable harvesting of MFPs and their value addition. The VDVK's to develop business plan for the allocation of funds for the processing, value addition, branding and packaging of products matching to the world export and retail standards.
  • Marketing: Through various convergence initiatives with Industry partners each VDVK is provided for marketing and promotion platform to create local value supply chain and also to create presence for the Tribal products globally.


Kendras into pucca facilities with enhanced facilities i.e. storage, primary processing, packaging facilities etc. The assessment of respective Kendra shall be conducted by District Level Coordination and Monitoring Committee (DLCMC) and finalized by State Level Coordination and Monitoring Committee (SLCMC). Based on the assessment, the District Collector shall submit the proposal for sanction of Pucca Kendra to TRIFED.


The total amount approved for a 20 member SHG shall be limited to Rs.1 Lakh only in accordance with the Guidelines. Any Group having less than 20 members, proportionate amount only shall be released. (For example, 10 member SHG will get Rs.50,000 against their own Working Capital investment of Rs.10,000). DLCMC and State Nodal Department may suitably approve the procedures.