Pashupalan (GBCDC) 2026

This scheme supports handloom businesses by boosting marketing efforts, making handloom products more visible, and ensuring weavers Read More... get fair pay for their work. Read less

Details

The Ministry of Textiles, through its National Handloom Development Programme, offers a 'Marketing Incentive' to help handloom weavers and their organizations. This initiative focuses on improving how handloom products are sold, both in India and abroad. The goal is to make these beautiful crafts more visible to buyers and ensure weavers earn a good income.

What Is This Scheme?

The 'Marketing Incentive' is part of the 'Handloom Marketing Assistance' component. It's designed to encourage handloom agencies to create better marketing strategies and activities. This helps increase sales, make products more competitive, and improve the overall business environment for handloom artisans.

Who Can Benefit From This Scheme?

This scheme is for various handloom agencies. This includes big state-level organizations like Handloom Corporations and Apex Cooperative Societies, as well as smaller groups such as Primary Handloom Weavers Cooperative Societies, Producer Companies, Self Help Groups, and Federations. Essentially, any recognized handloom entity involved in selling products to consumers can potentially benefit.

Why This Scheme Is Important

The scheme aims to tackle challenges in the handloom sector by providing financial support for marketing. It helps organizations cover costs related to marketing activities, design improvements, and infrastructure. By boosting sales and competitiveness, it ensures that weavers, the backbone of this industry, receive fair remuneration for their hard work and skill.

Objective

This scheme supports handloom businesses by boosting marketing efforts, making handloom products more visible, and ensuring weavers get fair pay for their work.

Benefits

Low-Interest Loan:A loan is provided at an interest rate of 6 per cent per annum.

Maximum Loan Limit:The maximum loan limit in this scheme is up to ₹1,00,000/-.

Unit Cost Coverage:85 per cent of the unit cost will be loaned.

Out of this 85 per cent, 85 per cent will be from the national corporation.

10 per cent will be from the state government.

5 per cent will be from the beneficiary's contribution.

Intended Use:The loan is for agriculture-related activities, specifically animal husbandry (cow-buffalo).Repayment Terms:This loan is to be repaid in 60 equal monthly instalments, including interest.

Sources and references

Guidelines

Who Can Apply for This Scheme?

To be eligible for this marketing incentive, you must meet the following conditions:

You must be a registered handloom agency. This includes State Level Organizations (like Handloom Corporations, Apex Cooperative Societies, National Level Handloom Organizations), Primary Handloom Weavers Cooperative Societies, Producer Companies, Self Help Groups (SHGs), Joint Liability Groups (JLGs), Federations, and other similar eligible handloom entities.
Your sales records should show that you have made final transactions directly with consumers.
You must be using the 'Handloom Mark' or the 'India Handloom Brand' for your handloom products.
You need to have an average sales turnover of handloom products for the last 3 years, which will be used to calculate your incentive amount.

How to Apply for Marketing Incentive

Applying for the Marketing Incentive involves a structured process:

Prepare Application: Gather all required documents as listed, ensuring they are GST compliant and reflect your last 3 years of sales turnover.
State Government Recommendation: For most organizations, applications need to be recommended by the State Government. This usually involves submitting claims through a prescribed proforma (Annexure - B9) and a consolidated statement.
National Level Organizations: If you are a National Level Handloom Organization, you can submit your claims directly to the Office of the Development Commissioner (Handlooms) and do not require State Government recommendations or matching contributions.
Nodal Agency Identification: A suitable Nodal Agency will be identified to help aggregate and release the funds.
Fund Release: Once approved, the Nodal Agency must release the incentive amount to eligible handloom agencies and their member weavers within 7 days of receiving the funds.

Official Application Link: Applications are typically submitted through prescribed proformas, and details can be found via official government channels. For detailed guidelines and proformas, please refer to: Revised Guidelines.

Documents You'll Need to Apply

To apply for the Marketing Incentive, you'll need to provide various documents:

For Application Stage:

Sales Records: GST-compliant sales bills/invoices for handloom products.
Procurement Records: GST-compliant yarn purchase bills.
Turnover Details: A record showing your average sales turnover for handloom products over the last 3 years.
Mark Usage Proof: Documentation that proves you use the Handloom Mark or India Handloom Brand.
Consumer Sale Proof: Evidence showing the final transaction of product sales to consumers.

For State Government Processing:

Claim Certificate: A certificate as per the prescribed proforma (Annexure - B9) for each claim.
Consolidated Statement: A summary of all your claims.
Committee Recommendations: Recommendations from the State Level Project Committee.
State Share Sanction: The sanction order for the release of the State Government's share.
Fund Transfer Proof: Documents showing the amount has been transferred to beneficiaries.
Additional Certificate: A certificate as per prescribed proforma (Annexure - B10).
Nodal Agency Identification: Details of the identified Nodal Agency for fund management.

For Verification Stage:

Utilization Certificate: A certificate from the Nodal Agency confirming how funds were used.
DBT Release Proof: Proof that the Direct Benefit Transfer was released within 7 days.
Beneficiary Details: Information about beneficiaries, including State and Government of India share, uploaded publicly.

Important Note: Ensure all sales and yarn purchase bills are Goods and Services Tax (GST) compliant for your incentive claim to be valid.

FAQ’s

What is the main goal of the 'Marketing Incentive' scheme?

The main goal is to boost the marketing of handloom products in both domestic and international markets. It aims to increase the visibility of handloom crafts and ensure weavers receive fair payment for their hard work.

Can I apply for this incentive if my organization is a Self Help Group (SHG)?

Yes, Self Help Groups (SHGs) are among the eligible handloom entities that can apply for the Marketing Incentive, provided they meet all other criteria.

What percentage of my sales is considered for calculating the marketing incentive?

The marketing incentive is calculated based on 10% of your average sales of handloom products from the last three years.

How is the financial assistance divided between the Central Government and the State Government?

In most cases, the Government of India and the State Government share the incentive cost equally (50:50). However, for National Level Handloom Organizations, the entire cost is covered by the Government of India.

What is the maximum period for which an organization can receive this marketing incentive?

Marketing incentive can be provided for a maximum of 3 years during the total scheme period of 5 years.

What kind of documentation is required to prove my sales are final transactions with consumers?

You need to provide proof of the final transaction of product sale to the consumer. This ensures that your sales are directly with end-users, not between different agencies.

Are there any restrictions on the use of the incentive amount received?

Yes, the incentive amount must be used for activities that attract consumers, boost overall sales, enhance price competitiveness, improve designs, or invest in necessary infrastructure.

What is the role of the Nodal Agency in this scheme?

The Nodal Agency is responsible for aggregating the funds and releasing the incentive amount to eligible handloom agencies and their member weavers. They must do this within 7 days of receiving the money.

What happens if I'm already receiving a similar incentive from another Central Government scheme?

You cannot receive a similar incentive or rebate under any other Central Government scheme. The State Government will favor agencies that have not received such duplicate benefits.

How does the 'India Handloom Brand' requirement help my application?

Using the 'India Handloom Brand' or the 'Handloom Mark' on your products is a mandatory requirement for eligibility. It authenticates your products as genuine handloom items.

What are the maximum financial limits for primary handloom societies?

Primary Handloom Weavers Cooperative Societies and similar entities are eligible for a maximum of ₹15,00,000/- as the Central Government's share.

How is the incentive amount shared between the organization and the weavers?

The 10% benefits received are shared equally between the handloom organization and its member weavers through the Direct Benefit Transfer (DBT) method.

What are the main documents needed for the application stage?

You primarily need GST-compliant sales and yarn purchase bills for the last 3 years, documentation for Handloom Mark/India Handloom Brand usage, and proof of final consumer sales.

Do National Level Handloom Organizations need State Government approval to apply?

No, National Level Handloom Organizations can apply directly to the Office of the Development Commissioner (Handlooms) without needing recommendations from the State Government or matching contributions.