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This scheme helps artisans, craftsmen, and cluster-based businesses by offering financial aid, building better infrastructure, improving skills, Read More... and connecting them to markets. Read less

Details

India's rich tradition of handicrafts is a significant source of livelihood for millions. To further boost this sector and empower artisans, the Ministry of Textiles, through the Development Commissioner (Handicrafts), has launched the Comprehensive Handicrafts Cluster Development Scheme (CHCDS).

What Is This Scheme?

The CHCDS is designed to transform handicraft clusters into well-developed hubs. It focuses on creating top-notch infrastructure, increasing how much artisans produce, helping them sell their goods better, and generally improving the whole handicraft ecosystem.

Who Can Benefit From This Scheme?

The primary beneficiaries are artisans and craftsmen who are part of organized clusters. The scheme also supports cluster-based enterprises and implementing agencies looking to enhance handicraft production and market reach.

Why This Scheme Is Important

This scheme is crucial for making Indian handicrafts more competitive globally. By bringing together scattered artisans and building strong local businesses, it aims to create more jobs and significantly increase the income of artisans, leading to a better quality of life.

Objective

This scheme helps artisans, craftsmen, and cluster-based businesses by offering financial aid, building better infrastructure, improving skills, and connecting them to markets.

Benefits

The financial assistance for permanent teachers of colleges enlisted in2(f) and 12 B of the UGC Actwill be limited to 50% of the total admissible expenditure such as travel, registration fee, per diem allowance and visa fee, once in three years.
For Commission members and Vice-Chancellors of Universities enlisted in2(f) and 12 B of the UGC Act, the assistance will be 100% on admissible expenditure once in three years.

Sources and references

Guidelines

Eligibility Criteria

To be eligible for this scheme, applicants must meet the following criteria:

The applicant must be a recognized implementing agency, such as a state or central handicrafts corporation, an autonomous body, a cooperative society, a producer company, or a Special Purpose Vehicle (SPV).
Previous experience in the handicrafts sector is required.
A comprehensive Detailed Project Report (DPR) tailored to the specific needs of the cluster must be prepared.
The project should aim to benefit more than 10,000 artisans, or cover all available artisans within the cluster.
Clear ownership of land, free from any legal disputes, is necessary where infrastructure development is planned.
The approach must be cluster-based, focusing on a particular geographical area or craft type.
The applicant must ensure the inclusion of artisans and Small and Medium Enterprises (SMEs) to achieve large-scale production.

How To Apply

Implementing agencies interested in developing handicrafts clusters need to follow these steps:

Prepare a Detailed Project Report (DPR) that outlines the cluster's needs, proposed activities, and expected outcomes.
Submit the DPR along with other required documents to the relevant authorities.
The project proposals and DPRs are approved by the Project Approval and Monitoring Committee (PAMC).
Funds are released in installments based on the project's progress and utilization of funds.

For detailed application guidelines and submission, please refer to the official notification from the Ministry of Textiles.

Documents Required

Applicants need to submit a set of documents to support their application:

Detailed Project Report (DPR)
Baseline Survey Report
Land Ownership Documents (if infrastructure is to be built)
Registration Certificate of the Implementing Agency
Memorandum and Articles of Association (MOA/AOA)
Annual Reports for the last 3 years
Financial Statements and Audit Reports
Aadhaar Card of the Authorized Representative
Bank Account Details of the Agency
Utilization Certificates (for subsequent fund releases)
Cluster Diagnostic Study Report
Documents confirming stakeholder validation

Official Sources

For the most accurate and up-to-date information, please visit the official website of the Ministry of Textiles or the Office of the Development Commissioner (Handicrafts).

FAQ’s

What is the duration of a project under the CHCDS, and can it be extended?

The standard project duration under the CHCDS is 3 years. However, it can be extended by an additional year with the necessary approval.

Are designers part of the support provided by this scheme?

Yes, the scheme includes provisions for engaging designers. They can be hired at a monthly fee of ₹55,000, inclusive of travel allowance, for a period of up to 3 years. Graduates from the National Institute of Design (NID) and National Institute of Fashion Technology (NIFT) are preferred.

How are funds typically disbursed to beneficiaries?

Funds are disbursed in installments using the Aadhaar Enabled Payment System (AEPS). The process promotes cashless and electronic transactions. Disbursements are made based on the project's progress and submitted utilization certificates.

What kind of infrastructure development does the scheme support?

The scheme supports the creation of vital infrastructure such as Common Facility Centres, Raw Material Banks, Design Centres, and Trade Facilitation Centres to aid handicraft clusters.

Who is eligible to apply for this scheme?

Implementing agencies like state/central handicraft corporations, autonomous bodies, cooperatives, producer companies, or SPVs with experience in the handicrafts sector and the capacity to prepare a DPR for a significant number of artisans are eligible.

Does the scheme help artisans access wider markets?

Absolutely! A key objective of the CHCDS is to improve market access for artisans, both nationally and internationally. It also supports export promotion activities.

What is the maximum financial support available for preparing the project report?

The scheme provides financial assistance for preparing the Detailed Project Report (DPR) and conducting baseline surveys. The support is capped at ₹5,00,000 or 2% of the total project cost, whichever amount is less.

What are the required documents for applying to the scheme?

Applicants typically need to provide documents like the Detailed Project Report (DPR), Baseline Survey Report, Land Ownership Proof (if applicable), Registration Certificate of the Agency, MOA/AOA, last 3 years' Annual Reports, Financial Statements, Aadhaar card of the representative, and Bank Account details, among others.

Is skill development a part of the scheme's offerings?

Yes, skill development and training are integral components of the CHCDS, aimed at upgrading the capabilities of artisans.

How many artisans need to be covered to qualify for the scheme?

An applicant agency should aim to cover more than 10,000 artisans. Alternatively, it should encompass all artisans available within the specific cluster being proposed for development.

What are the main benefits artisans can expect from CHCDS?

Artisans can expect increased employment opportunities, better income, improved living standards, and greater access to national and international markets, along with support for product diversification and branding.

How are the funds released in installments?

The funds are released in three stages: the first installment is 50% of the approved project cost. The second installment is 40% after 70% of the first installment has been utilized. The final 10% is released upon successful completion of the project.