Tiruchengode Gandhi Ashram seeks ₹10 crore government grant

Tiruchengode’s Gandhi Ashram, founded in 1925, faces financial crisis due to declining Khadi sales and seeks ₹10 crore grant for revival

Tiruchengode Gandhi Ashram Seeks Government Grant

The century-old Tiruchengode Gandhi Ashram is struggling with poor sales of Khadi products. The ashram is seeking a government grant to continue its operations.

History and Operations of the Ashram

Founded in 1925 by C. Rajagopalachari, the first and last governor-general of India (1948-1950) and Chief Minister of Tamil Nadu (1952-1954), the ashram is located near Pudupalayam, near Tiruchengode. It was inaugurated by reformist Periyar E.V. Ramasamy. The ashram has a Khadi production unit that produces 172 products, including soaps, shirts, dhotis, towels, pillows, beds, honey, and pickles.

Branches and Historical Visits

The ashram has branches in 12 locations across Salem, Namakkal, Erode, and Tiruchi districts. It operated independently until 1957 when it came under the control of the Khadi and Village Industries Commission (KVIC). Notable leaders, including Mahatma Gandhi, Jawaharlal Nehru, Sardar Vallabhbhai Patel, and K. Kamaraj, have visited the ashram.

Financial Struggles

Interest in Khadi clothes has decreased, especially among youths who prefer modern garments. In 2024-2025, the ashram manufactured items worth ₹4.80 crore and sold them for ₹6.08 crore. The total expenses during this period were ₹2.70 crore, resulting in a loss of ₹56.41 lakh.

Staff and Salary Issues

K. Chidambaram, the president of the Gandhi Ashram, noted that former president R. Venkataraman helped supply soaps to the army. However, orders for soaps have since decreased. Currently, 85 staff members work at the branches, earning low salaries. Staff receive between ₹10,000 and ₹23,000 monthly, with only those with over 25 years of service earning more than ₹20,000.

Debt and Request for Support

The ashram is struggling to pay retirement benefits and currently has debts of ₹11 crore. The State government provided grants of ₹1 crore in 2015 and ₹2 crore in 2018. Mr. Chidambaram urged both the Union and State governments to provide a grant. He mentioned that in 2021, the Gujarat government allocated ₹50 crore for the development of Sabarmati Ashram.

Call for Government Action

Mr. Chidambaram requested ₹10 crore for the Gandhi Ashram’s development and smooth functioning. Until 1973, Khadi dresses from the ashram were sold to government employees through Block Development Offices, with payments deducted from salaries. He urged the government to take steps to boost the sale of Khadi products.