Sarkari Yojana
Comprehensive Handicrafts Cluster Development Scheme
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
Central Government
Ministry Of Textiles
Scheme Details
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.
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.
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
How to Apply
Offline Application
Applicants can apply for Comprehensive Handicrafts Cluster Development Scheme through the offline application process outlined below.
Application Process:
The agency begins by identifying handicraft clusters through…
The agency begins by identifying handicraft clusters through a field survey and viability study.
It runs a diagnostic study to gauge needs,…
It runs a diagnostic study to gauge needs, gaps, and baseline data.
It prepares a Detailed Project Report (DPR) covering…
It prepares a Detailed Project Report (DPR) covering technical, financial, and implementation details.
It validates the DPR with stakeholders - artisans,…
It validates the DPR with stakeholders - artisans, associations, and government bodies.
It submits the DPR to the Project Approval…
It submits the DPR to the Project Approval and Monitoring Committee (PAMC). Post-application Process:
The Ministry of Textiles approves the project based…
The Ministry of Textiles approves the project based on its DPR evaluation.
Funds get released in instalments tied to project…
Funds get released in instalments tied to project milestones.
Interventions - infrastructure, training, marketing - get implemented
Interventions - infrastructure, training, marketing - get implemented.
Field offices monitor progress regularly, with Monthly Progress…
Field offices monitor progress regularly, with Monthly Progress Reports (MPR) submitted.
A final evaluation follows, with a utilization report…
A final evaluation follows, with a utilization report submitted once the project wraps up.
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.