Sarkari Yojana

Comprehensive Handicrafts Cluster Development Scheme

Quick Summary: CHCDS funds implementing agencies to build shared infrastructure, train artisans, and open new markets for handicrafts clusters covering 10,000+ artisans, with project costs disbursed across three instalments over up to 3-4 years. It also funds designers, especially NID/NIFT graduates, to support product and branding upgrades.

About Comprehensive Handicrafts Cluster Development Scheme

The Ministry of Textiles, Government of India, through the Development Commissioner (Handicrafts), runs the “Comprehensive Handicrafts Cluster Development Scheme (CHCDS)” to build world-class infrastructure for handicrafts clusters, lift productivity, widen market access, and strengthen the sector’s ecosystem overall. > Objectives

To sharpen handicrafts clusters’ competitiveness and grow their market share. To bring scattered artisans together and build robust grassroots enterprises. To open up additional livelihood opportunities and raise artisan incomes. To supply infrastructure, technology, design, marketing, and raw-material support. To build capacity through professional and technical assistance.

Scheme Overview

Government Level

Central Government

Ministry

Ministry Of Textiles

Scheme Details

Eligibility

Eligibility Requirements

To qualify for Comprehensive Handicrafts Cluster Development Scheme, applicants must satisfy the following conditions:

✅

The applicant must be an implementing agency -…

The applicant must be an implementing agency - a state/central handicrafts corporation, autonomous body, cooperative, producer company, or SPV.

✅

The applicant must have prior experience in the…

The applicant must have prior experience in the handicrafts sector.

✅

The applicant must prepare a Detailed Project Report…

The applicant must prepare a Detailed Project Report (DPR) reflecting the cluster's needs.

✅

The applicant must cover more than 10,000 artisans,…

The applicant must cover more than 10,000 artisans, or as many as the cluster has.

🌾

Where infrastructure is needed, the applicant must hold…

Where infrastructure is needed, the applicant must hold litigation-free land ownership.

✅

The applicant must take a cluster-based approach within…

The applicant must take a cluster-based approach within a specific geography or craft sector.

✅

The applicant must bring artisans and SMEs together…

The applicant must bring artisans and SMEs together for large-scale production.

Applicants must meet all of the above conditions to be considered eligible for this scheme.
Benefits

Benefits Provided

Comprehensive Handicrafts Cluster Development Scheme provides the following benefits to eligible applicants:

Financial & Infrastructure Benefits

💰

Financial assistance as laid out in the Detailed…

Financial assistance as laid out in the Detailed Project Report (DPR).

💰

Up to ₹5,00,000 or 2% of the project…

Up to ₹5,00,000 or 2% of the project cost (whichever is less) for baseline survey/DPR preparation.

✅

3% of the total project cost for the…

3% of the total project cost for the Project Monitoring Unit (PMU).

💰

Infrastructure built includes

Infrastructure built includes:
Common Facility Centres
Raw Material Banks
Design Centres
Trade Facilitation Centres
Support for diversifying products, branding, and promoting exports. Skill Development & Capacity Building
Training and skill upgradation for artisans.
Designers engaged at ₹55,000 per month (TA included) for up to 3 years.
Preference given to NID (National Institute of Design) and NIFT (National Institute of Fashion Technology) graduates. Market & Livelihood Benefits
More employment opportunities.
Better income and living standards for artisans.
Access to domestic and international markets.
A push toward exports and foreign-exchange earnings. Mode of Disbursement
Funds go out in instalments via the Aadhaar Enabled Payment System (AEPS).
All transactions are cashless and electronic.
Disbursement tracks project progress and utilization certificates. Frequency of Disbursement
1st Installment: 50% of the approved project cost.
2nd Installment: 40%, once 70% of the first instalment is utilised.
Final Installment: 10%, after the project is completed. Validity
Projects run for 3 years, extendable by 1 more year with approval.

Benefit amounts and conditions may vary by category — refer to the official scheme guidelines for exact figures applicable to your case.
Documents Required

Documents Required

Applicants should keep the following documents ready before starting the application:

✅

A Detailed Project Report (DPR) for the cluster

A Detailed Project Report (DPR) for the cluster

✅

The report of the baseline survey

The report of the baseline survey

🌾

Papers proving land ownership, where relevant

Papers proving land ownership, where relevant

📄

The agency's certificate of registration

The agency's certificate of registration

✅

The agency's Memorandum And Articles of Association (MOA/AOA)

The agency's Memorandum And Articles of Association (MOA/AOA)

✅

Annual reports covering the last 3 years

Annual reports covering the last 3 years

💰

Audit reports together with financial statements

Audit reports together with financial statements

📄

The Aadhaar card of the authorized representative

The Aadhaar card of the authorized representative

✅

Particulars of the agency's bank account

Particulars of the agency's bank account

💰

Utilization certificates, needed for release of funds

Utilization certificates, needed for release of funds

✅

The report of the cluster diagnostic study

The report of the cluster diagnostic study

✅

Documents showing validation by stakeholders

Documents showing validation by stakeholders

Ensure all documents are valid and, where required, duly attested before submitting your application.

How to Apply

Offline Application

Applicants can apply for Comprehensive Handicrafts Cluster Development Scheme through the offline application process outlined below.

Application Process:

1️⃣

The agency begins by identifying handicraft clusters through…

The agency begins by identifying handicraft clusters through a field survey and viability study.

2️⃣

It runs a diagnostic study to gauge needs,…

It runs a diagnostic study to gauge needs, gaps, and baseline data.

3️⃣

It prepares a Detailed Project Report (DPR) covering…

It prepares a Detailed Project Report (DPR) covering technical, financial, and implementation details.

4️⃣

It validates the DPR with stakeholders - artisans,…

It validates the DPR with stakeholders - artisans, associations, and government bodies.

5️⃣

It submits the DPR to the Project Approval…

It submits the DPR to the Project Approval and Monitoring Committee (PAMC). Post-application Process:

1️⃣

The Ministry of Textiles approves the project based…

The Ministry of Textiles approves the project based on its DPR evaluation.

2️⃣

Funds get released in instalments tied to project…

Funds get released in instalments tied to project milestones.

3️⃣

Interventions - infrastructure, training, marketing - get implemented

Interventions - infrastructure, training, marketing - get implemented.

4️⃣

Field offices monitor progress regularly, with Monthly Progress…

Field offices monitor progress regularly, with Monthly Progress Reports (MPR) submitted.

5️⃣

A final evaluation follows, with a utilization report…

A final evaluation follows, with a utilization report submitted once the project wraps up.

Ensure all required documents are ready before starting the application process.

Exclusions / Who Is Not Eligible

1. The applicant should not submit incomplete DPR or proposals.
1. The applicant should not have litigation issues related to project land or ownership.

Official Application & Website

Verify the latest eligibility, dates and instructions before applying.

Official Sources & References