Sarkari Yojana

Jute Diversification Scheme

Quick Summary: This National Jute Board scheme sets up Jute Resource-cum-Production Centres run by experienced agencies, funding training cycles (₹12.4 lakh for 5 cycles), machinery subsidies (up to ₹9 lakh/year), and infrastructure support. At least 70% of trainees must be women, with collaborating agencies earning a 20% activity-cost incentive.

About Jute Diversification Scheme

Launched by the National Jute Board, Ministry of Textiles, Government of India, the “Jute Diversification Scheme” spreads jute diversification programmes, offers training, and builds sustained employment by setting up Jute Resource-cum-Production Centres nationwide. It provides basic, advanced, and design training in manufacturing jute diversified products, financial incentives for collaborating agencies, and machinery procurement subsidies. Applicants must be a registered agency or entrepreneur with at least three years’ experience in product identification, bulk production, skill training, and marketing of jute diversified products. The National Jute Board implements the scheme, with applications submitted online through the official website and followed by a hard copy.

Scheme Overview

Government Level

Central Government

Ministry

Ministry Of Textiles

Eligible Entity

Business Entity

Scheme Details

Eligibility

Eligibility Requirements

To qualify for Jute Diversification Scheme, applicants must satisfy the following conditions:

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The applicant must be a bonafide Indian agency…

The applicant must be a bonafide Indian agency or Indian citizen.

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The applicant must be a reputed, registered jute…

The applicant must be a reputed, registered jute entrepreneur, manufacturer, exporter, merchant trader, NGO, cooperative society, federation, PSU, or organization.

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The applicant must have been engaged in product…

The applicant must have been engaged in product identification, bulk production, skill training, and marketing of jute diversified products for at least the last three years.

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The applicant should have recognized experience training, promoting,…

The applicant should have recognized experience training, promoting, and developing Women Self Help Groups in producing and marketing jute diversified products, handlooms, or handicrafts.

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The applicant must have their own office of…

The applicant must have their own office of at least 250 sq.ft., equipped with telephone/mobile, computer/laptop, and email facilities.

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The applicant must have at least 500 sq.ft

The applicant must have at least 500 sq.ft. of space to set up the Jute Resource-Cum-Production Centre.

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The applicant must score at least 50 marks…

The applicant must score at least 50 marks in the evaluation criteria to be considered for selection. Preference Preference goes to recognized agencies with at least three years' experience training, promoting, and developing Women Self Help Groups in handloom, handicrafts, and textiles. Earmarking/Reservation At least 70% of training beneficiaries must be individual women or members of Women Self Help Groups. Relaxation If an entrepreneur partners to convert the centre into a full manufacturing unit employing at least 50% of its trainees, the 70% women-training condition is waived. Post-Selection Conditions

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The applicant must sign a Memorandum of Understanding…

The applicant must sign a Memorandum of Understanding with the National Jute Board.

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The applicant must submit an annual action plan…

The applicant must submit an annual action plan with a list of confirmed bonafide trainees.

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The applicant must submit a bank guarantee equal…

The applicant must submit a bank guarantee equal to 50% of the approved cycles' activity cost.

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The applicant must set up the centre by…

The applicant must set up the centre by procuring and installing new branded machinery within one month of in-principle approval.

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

Benefits Provided

Jute Diversification Scheme provides the following benefits to eligible applicants:

Financial Assistance for Activities

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The scheme provides an estimated ₹12,40,000/- for organizing…

The scheme provides an estimated ₹12,40,000/- for organizing 5 cycles of basic, advanced, and design training, 24 beneficiaries per cycle.

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Incentive for Collaborating Agencies

Incentive for Collaborating Agencies: ₹2,48,000/- (20% of activity cost) for organizing activities and maintaining infrastructure. Infrastructure Support ₹12,000/- is provided for installing a biometric machine, internet connectivity, and maintenance. Machinery Subsidy ₹9,00,000/- per year per centre for procuring 72 machines (50% subsidy or up to ₹12,500/- per machine, whichever is less) for successful beneficiaries engaged in production. Disbursal

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50% of activity cost is released as an…

50% of activity cost is released as an advance along with the action plan's approval.

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The remaining 50%, the biometric machine cost, and…

The remaining 50%, the biometric machine cost, and the incentive follow successful completion of activities and submission of final claims and reports.

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The machine subsidy comes in two installments —…

The machine subsidy comes in two installments — 50% within one month of installation, and the remaining 50% after six months, once an inspection confirms beneficiaries are manufacturing and selling.

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All such incentives are paid strictly via Direct…

All such incentives are paid strictly via Direct Bank Transfer. Conditions

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The collaborating agency must ensure at least 50%…

The collaborating agency must ensure at least 50% of trainees stay engaged in jute diversification activities after training.

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For self-employment, beneficiaries must achieve sales of at…

For self-employment, beneficiaries must achieve sales of at least ₹5,000/- per month or ₹15,000/- per quarter.

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The agency must maintain a separate bank account…

The agency must maintain a separate bank account for all advances and cap cash transactions at ₹5,000/- per activity.

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An Aadhaar-linked biometric attendance machine and webcam must…

An Aadhaar-linked biometric attendance machine and webcam must be installed at the training site.

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:

Application Stage

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A document proving ownership, such as the Memorandum…

A document proving ownership, such as the Memorandum of Understanding, Articles of Association of Companies, Registered Deed of Partnership, Registration of Societies, or Trade License.

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The Authorized Representative's Aadhaar Card or another address…

The Authorized Representative's Aadhaar Card or another address proof.

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Income Tax Return filed for the Last Financial…

Income Tax Return filed for the Last Financial Year.

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The agency's Permanent Account Number (PAN) Card

The agency's Permanent Account Number (PAN) Card.

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Goods and Services Tax (GST) Returns covering the…

Goods and Services Tax (GST) Returns covering the Last Three Financial Years.

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Annual Reports of the Last Three Financial Years

Annual Reports of the Last Three Financial Years.

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Financial statements, audited, for the Last Three Years

Financial statements, audited, for the Last Three Years.

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Certificates showing previous project experience

Certificates showing previous project experience.

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A recommendation letter, desirable but not mandatory, from…

A recommendation letter, desirable but not mandatory, from the District Magistrate, District Collector, District Industries Centre, NABARD, District Rural Development Agency, or Block Development Officer.

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A note setting out the concept or approach

A note setting out the concept or approach.

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An undertaking given by the agency

An undertaking given by the agency.

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A copy of the bank passbook's front page

A copy of the bank passbook's front page.

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A cancelled cheque leaf, as a copy

A cancelled cheque leaf, as a copy. Benefit Disbursal And Reporting Stage

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A Bank Guarantee

A Bank Guarantee.

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An Annual Action Plan in detail

An Annual Action Plan in detail.

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Attendance report from the Aadhaar Linked Bio-Metric system

Attendance report from the Aadhaar Linked Bio-Metric system.

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Webcam recordings saved on a Pen Drive

Webcam recordings saved on a Pen Drive.

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The Statement of Expenditure

The Statement of Expenditure.

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Original Receipts, Bills, Railway Receipts, and Payment Vouchers

Original Receipts, Bills, Railway Receipts, and Payment Vouchers.

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A report on activities for every Training Module

A report on activities for every Training Module.

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Geo-tagged photographs

Geo-tagged photographs.

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Self Certification of Expenditure for Master Trainers and…

Self Certification of Expenditure for Master Trainers and Designers.

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

How to Apply

Online Application

Applicants can apply for Jute Diversification Scheme through the online application process outlined below.

1️⃣

Accessing the Portal Visit the National Jute Board's…

Accessing the Portal Visit the National Jute Board's official website to start the application process through its designated online portal.

2️⃣

Filling the Online Proposal Complete the online application…

Filling the Online Proposal Complete the online application with all relevant details — agency profile, infrastructure, past experience in jute diversified products, and proposed action plans — entered accurately to generate an acknowledgement.

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Submitting the Hard Copies After submitting the online…

Submitting the Hard Copies After submitting the online proposal, print the acknowledgement and prepare it, along with a covering letter on official letterhead, for offline submission.

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Physical Document Dispatch Compile all prescribed supporting documents…

Physical Document Dispatch Compile all prescribed supporting documents with the printed acknowledgement and submit the full package physically to the Head Office or the relevant Regional Office of the National Jute Board, depending on the proposed centre's jurisdiction.

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Evaluation and Selection A Sub-Committee reviews and evaluates…

Evaluation and Selection A Sub-Committee reviews and evaluates submitted proposals against criteria like agency experience, location, and infrastructure. Agencies scoring at least 50 marks are shortlisted and recommended to the Monitoring Committee for final approval. Grievance Redressal / Help & Support Email: jute@njbindia.in. Fax: (033) - 2217 2456. Address: National Jute Board, 3A & 3B, Park Plaza, 71, Park Street, Kolkata 700 016.

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

Official Application & Website

Verify the latest eligibility, dates and instructions before applying.

Official Sources & References

  • Guidelines