Sarkari Yojana
“Marketing Incentive” under the “Handloom Marketing Assistance” Component of the National Handloom Development Programme
About “Marketing Incentive” under the “Handloom Marketing Assistance” Component of the National Handloom Development Programme
Under the Handloom Marketing Assistance component of the National Handloom Development Programme, the Ministry of Textiles runs the “Marketing Incentive” scheme to build up domestic and export marketing channels for handloom products in a unified way, giving the sector more visibility and ensuring weavers get fair pay. The incentive itself works out to 10% of an organisation’s average handloom sales over the preceding three years, subject to a ceiling of ₹1,00,00,000/- for state-level bodies and ₹15,00,000/- for primary societies; the cost is split evenly between the State and Central governments, except for National Level Handloom Organisations, where the Government of India bears the full amount. The Office of the Development Commissioner (Handlooms), under the Ministry of Textiles, administers the scheme, processing applications submitted on prescribed forms along with State Government recommendations.
Scheme Overview
Central Government
Ministry Of Textiles
Business Entity, Government Organisation, Individual, Joint Liability Groups (JLGS), NGO, Self Help Groups (SHGS)
Scheme Details
Eligibility Requirements
To qualify for "Marketing Incentive" under the "Handloom Marketing Assistance" Component of the National Handloom Development Programme, applicants must satisfy the following conditions:
The applicant must be one of the following:
A handloom agency — this covers State-level bodies…
A handloom agency — this covers State-level bodies such as Handloom Corporations, Apex Cooperative Societies, and National Level Handloom Organizations, as well as Primary Handloom Weavers Cooperative Societies, Producer Companies, Self Help Groups, Joint Liability Groups, Federations, and other eligible handloom entities.
The applicant must be the one who completed…
The applicant must be the one who completed the final sale of the product to the consumer.
Handloom products must carry the Handloom Mark or…
Handloom products must carry the Handloom Mark or the India Handloom Brand.
The applicant needs an average handloom sales turnover…
The applicant needs an average handloom sales turnover figure for the past three years, since the incentive is calculated from it.
Benefits Provided
"Marketing Incentive" under the "Handloom Marketing Assistance" Component of the National Handloom Development Programme provides the following benefits to eligible applicants:
Financial Assistance Structure
The Marketing Incentive rate is 10% of average…
The Marketing Incentive rate is 10% of average handloom sales over the last three years.
State Level Organizations can get up to ₹100.00…
State Level Organizations can get up to ₹100.00 lakh (Central Government's share).
Primary Level Organizations can get up to ₹15.00…
Primary Level Organizations can get up to ₹15.00 lakh (Central Government's share). Category-wise Maximum Caps
State Level Organizations (Handloom Corporations, Apex Cooperative Societies,…
State Level Organizations (Handloom Corporations, Apex Cooperative Societies, National Level Handloom Organizations): capped at ₹1,00,00,000/- from the Central Government.
Primary Handloom Weavers Cooperative Societies, Producer Companies, Self…
Primary Handloom Weavers Cooperative Societies, Producer Companies, Self Help Groups, Joint Liability Groups, Federations, and other eligible handloom entities: capped at ₹15,00,000/- from the Central Government. How the Financial Assistance Is Shared
In general, the Government of India and the…
In general, the Government of India and the State Government split the cost 50:50.
For National Level Handloom Organizations/Societies, the Government of…
For National Level Handloom Organizations/Societies, the Government of India covers the entire amount.
Of the 10% incentive, half goes to the…
Of the 10% incentive, half goes to the organisation and half to member weavers, paid via Direct Benefit Transfer. Mode and Frequency of Disbursement
The Marketing Incentive can be claimed for at…
The Marketing Incentive can be claimed for at most 3 years within the scheme's 5-year span.
Funds move through the Direct Benefit Transfer mechanism
Funds move through the Direct Benefit Transfer mechanism.
The Nodal Agency must pass on the amount…
The Nodal Agency must pass on the amount to eligible handloom agencies and their member weavers within 7 days of receiving it. Conditions for Availing or Continuing the Incentive
The money should go toward activities that draw…
The money should go toward activities that draw in consumers and lift overall handloom sales.
It should help handloom agencies price more competitively,…
It should help handloom agencies price more competitively, improve designs, and invest in infrastructure.
A State Government's recommendation depends on that State…
A State Government's recommendation depends on that State also contributing a matching share.
Claims need to be Goods and Services Tax…
Claims need to be Goods and Services Tax compliant.
The applicant must not already be receiving a…
The applicant must not already be receiving a similar incentive or rebate under any other Central Government scheme.
Documents Required
Applicants should keep the following documents ready before starting the application:
At Application Stage
Sales bills/invoices for handloom products (GST compliant)
Sales bills/invoices for handloom products (GST compliant).
Yarn purchase bills (GST compliant)
Yarn purchase bills (GST compliant).
Details of the average sales turnover of handloom…
Details of the average sales turnover of handloom products over the last three years.
Proof of using the Handloom Mark or India…
Proof of using the Handloom Mark or India Handloom Brand.
Proof of the final sale transaction to the…
Proof of the final sale transaction to the consumer. For State Government Processing
Certificate in the prescribed proforma (Annexure - B9)…
Certificate in the prescribed proforma (Annexure - B9) for each individual claim.
A consolidated statement covering all claims
A consolidated statement covering all claims.
Recommendations from the State Level Project Committee
Recommendations from the State Level Project Committee.
Sanction order releasing the State's share
Sanction order releasing the State's share.
Documentary proof that the amount reached the beneficiaries
Documentary proof that the amount reached the beneficiaries.
Certificate in the prescribed proforma (Annexure - B10)
Certificate in the prescribed proforma (Annexure - B10).
Identification of a suitable Nodal Agency to aggregate…
Identification of a suitable Nodal Agency to aggregate and release funds. At Verification Stage
Utilization Certificate from the Nodal Agency
Utilization Certificate from the Nodal Agency.
Certificate confirming Direct Benefit Transfer release within 7…
Certificate confirming Direct Benefit Transfer release within 7 days.
Beneficiary details (covering both the State and Government…
Beneficiary details (covering both the State and Government of India shares) uploaded to the public domain. NOTE: Every sales bill/invoice and yarn purchase bill claimed under the Marketing Incentive must be GST compliant.
How to Apply
Offline Application
Applicants can apply for "Marketing Incentive" under the "Handloom Marketing Assistance" Component of the National Handloom Development Programme through the offline application process outlined below.
For State Level and Primary Level Organizations
Prepare Claim Documentation
Gather sales bills/invoices, yarn purchase bills, and the average sales turnover figures for the past three years, making sure everything is GST compliant.
Complete Application Form
Fill out the prescribed proforma (Annexure - B8), covering sales data and beneficiary details.
Submit to State Government
Send the completed Marketing Incentive claim, with supporting documents, to the concerned State Government.
State Government Verification
The State Government checks the claims, confirms it can provide the matching contribution, and fills out the prescribed certificates (Annexure - B9).
State Level Project Committee Recommendation
The State Level Project Committee reviews and recommends the Marketing Incentive claims.
State Government Consolidation
The State Government puts together a consolidated statement, a sanction order for releasing its share, and the Annexure - B10 certificate.
Nodal Agency Identification
The State Government picks a suitable nodal agency to pool funds and pass them on to eligible agencies.
Forward to Development Commissioner (Handlooms) The State Government…
Forward to Development Commissioner (Handlooms) The State Government sends the verified claims, with all documentation, to the Office of the Development Commissioner (Handlooms).
Central Government Processing
The Office of the Development Commissioner (Handlooms) processes the claims and releases the Central Government's share to the identified Nodal Agency.
Fund Distribution
The Nodal Agency passes the funds on to eligible handloom agencies and their member weavers via Direct Benefit Transfer within 7 days of receipt. For National Level Handloom Organizations
Direct Application Preparation
Put together the Marketing Incentive claim with supporting documents on the prescribed proforma (Annexure - B8).
Submit to Development Commissioner (Handlooms)
Send the claim, fully documented, directly to the Office of the Development Commissioner (Handlooms).
Central Government Processing
The Office of the Development Commissioner (Handlooms) reviews and approves claims from National Level Organizations.
Direct Release
The Government of India releases the Marketing Incentive directly to the National Level Handloom Organization.
Exclusions / Who Is Not Eligible
- Sales by one handloom agency to another handloom agency are not eligible.
- Sales of handloom products by Primary Handloom Weavers Cooperative Societies or any other Handloom Agency to Apex Societies, Federations, Producer Companies, Corporations are excluded.
- Sales by handloom agencies to Government departments/agencies are excluded.
- Sales made under barter system by handloom agencies are excluded.
- Agencies that have received similar kind of incentive/rebate under any other Central Government scheme are not preferred.