Comprehensive Handicrafts Cluster Development Scheme

The "Comprehensive Handicrafts Cluster Development Scheme (CHCDS)" has been launched by the Ministry of Textiles, Government of India, under the Development Commissioner (Handicrafts). The scheme aims to develop handicrafts clusters by creating world-class infrastructure, improving productivity, enhancing market access, and strengthening the overall handicrafts ecosystem.

Objectives

To enhance competitiveness of handicrafts clusters and increase market share.
To integrate scattered artisans and build strong grassroots enterprises.
To generate additional livelihood opportunities and increase artisan income.
To provide infrastructure, technology, design, marketing, and raw material support.
To strengthen capacity building through professional and technical assistance.

Financial & Infrastructure Benefits

1. Financial assistance as per Detailed Project Report (DPR).
2. Up to ₹5,00,000 or 2% of project cost for baseline survey/DPR preparation (whichever is less).
3. 3% of total project cost for Project Monitoring Unit (PMU).
4. Creation of infrastructure such as:

• Common Facility Centres
• Raw Material Banks
• Design Centres
• Trade Facilitation Centres
• Support for product diversification, branding, and export promotion.

Skill Development & Capacity Building

• Training and skill upgradation for artisans.
• Engagement of designers with ₹55,000 per month (including TA) for up to 3 years.
• Preference to NID (National Institute of Design) and NIFT (National Institute of Fashion Technology) graduates.

Market & Livelihood Benefits

• Increased employment opportunities.
• Better income and living standards for artisans.
• Access to national and international markets.
• Promotion of exports and foreign exchange earnings.

Mode of Disbursement

• Funds released in installments through Aadhaar Enabled Payment System (AEPS).
• Cashless and electronic transactions are followed.
• Disbursement based on project progress and utilization certificates.

Frequency of Disbursement

• 1st Installment: 50% of approved project cost.
• 2nd Installment: 40% after utilization of 70% of first installment.
• Final Installment: 10% after project completion.

Validity

• Project duration: 3 years (extendable by 1 year with approval).

1. The applicant should be an implementing agency such as a state/central handicrafts corporation, autonomous body, cooperative, producer company, or SPV.
2. The applicant should have experience in the handicrafts sector.
3. The applicant should prepare a Detailed Project Report (DPR) based on cluster needs.
4. The applicant should cover more than 10,000 artisans or as available in the cluster.
5. The applicant should ensure ownership of land free from litigation (where infrastructure is required).
6. The applicant should ensure a cluster-based approach in a specific geographical area or craft sector.
7. The applicant should ensure integration of artisans and SMEs for large-scale production.

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

Offline

Application Process:

1. Agency start identification of handicraft clusters through a field survey and a viability study.
2. Conducting a diagnostic study to assess needs, gaps, and baseline data.
3. Preparation of Detailed Project Report (DPR) including technical, financial, and implementation aspects.
4. Validation of DPR with stakeholders including artisans, associations, and government bodies.
5. Submission of DPR to Project Approval and Monitoring Committee (PAMC).

Post-application Process:

1. Approval of project by Ministry of Textiles based on DPR evaluation.
2. Release of funds in installments as per project milestones.
3. Implementation of interventions such as infrastructure, training, and marketing.
4. Regular monitoring through field offices and submission of Monthly Progress Reports (MPR).
5. Final evaluation and submission of utilization report after project completion.