MGPSS
Mill Gate Price Subsidy Scheme
Handloom weavers, cooperatives, and NGOs can receive a 15% subsidy on yarn purchases from NHDC-recognized depots, alongside freight reimbursement ranging from 1% to 8.5% based on yarn type and location. This initiative specifically supports weavers below the poverty line, enhancing their access to essential materials for their craft.
States / UT: Gujarat
Nodal department: Industries and Mines Department
Scheme for: Individual
Scheme profile
DBT (direct benefit transfer): No
Categories: Business & Entrepreneurship, Social welfare & Empowerment
Sub-categories: Setting up / start-up / entrepreneurship, Credit Linked Subsidy, Financial assistance
Target beneficiaries: Joint Liability Groups (JLGS), Self Help Groups (SHGS), NGO
Tags: Yarn, Subsidy, Silk, Jute, Freight, Handloom
Details
Launched in 2007, the "Mill Gate Price Subsidy Scheme", implemented by the Commissioner of Cottage and Rural Industries, Industries & Mines Department, Government of Gujarat, aims to provide quality yarn at subsidized rates to handloom weavers, ensuring affordability and improved product quality. The scheme offers freight reimbursement (1–8.5% based on yarn type and region) and a 15% subsidy on yarn purchases from NHDC-recognized depots. Eligible beneficiaries include handloom cooperatives, NGOs, and development centers. The scheme is implemented through District Industries Centers (DICs) and aims to sustain employment for economically weak weavers, especially from Scheduled Castes.
Benefits
- Yarn Purchase Subsidy 15% subsidy on yarn bought from NHDC-recognized depots. Freight Reimbursement
- Non-Silk/Jute Yarn: Plain Area: 1.00%, Hills/Remote: 1.75%, North-East: 3.00%
- Silk Yarn: Plain Area: 1.00%, Hills/Remote: 1.25%, North-East: 1.50%
- Jute/Jute Blended Yarn: Plain Area: 7.00%, Hills/Remote: 8.00%, North-East: 8.50% Additional 2.5% depot operating charges. Disbursement Mode 15% subsidy credited via RTGS/e-payment. Freight reimbursement is processed separately
Yarn Purchase Subsidy
15% subsidy on yarn bought from NHDC-recognized depots.
Freight Reimbursement
- Non-Silk/Jute Yarn: Plain Area: 1.00%, Hills/Remote: 1.75%, North-East: 3.00%
- Silk Yarn: Plain Area: 1.00%, Hills/Remote: 1.25%, North-East: 1.50%
- Jute/Jute Blended Yarn: Plain Area: 7.00%, Hills/Remote: 8.00%, North-East: 8.50%
*Additional 2.5% depot operating charges.
Disbursement Mode
15% subsidy credited via RTGS/e-payment.
Freight reimbursement is processed separately.
Eligibility
- The applicant must be a handloom cooperative society, NGO, or development center.
- The applicant must purchase yarn from NHDC-recognized depots (e.g., Gujarat State Handloom & Handicrafts Development Corporation).
Application Process
Offline
Step 1: The interested applicant should first purchase the yarn from NHDC-recognized depots (e.g., 12 depots in Surendranagar, 1 in Ahmedabad).
Step 2: Visit the District Industries Centre (DIC) of his district, and request the hard copy of the prescribed format of the application form from the designated staff.
Step 3: In the application form, fill in all the mandatory fields, and attach copies of all the mandatory documents (self-attest, if required).
Step 3: Submit the duly filled and signed application form along with the documents, within the prescribed period (if any), to the designated staff at the DIC.
Step 4: Request a receipt or acknowledgement from the concerned staff to whom the application has been submitted.
Documents Required
No document list is available for this scheme yet.
Official links
- https://www.myscheme.gov.in/schemes/mgpss
- https://cottage.gujarat.gov.in/Home-214079242566-282472214079-282472214079-282472214079
- https://ifp.gujarat.gov.in/DIGIGOV/StaticAttachment?AttachmentFileName=/pdf/IncentiveDetails/11_Incentives_for_Cottage_and_Rural_Industries.pdf
- https://www.cottage.gujarat.gov.in/Home-2140795B5D2D-282472282472-2824725B5D2D
- https://cottage.gujarat.gov.in/FileExplorer/Citizen-Charter-Eng.pdf
References
Apply
Apply nowOpens the official application or programme portal in a new tab. If in doubt, confirm details on the ministry site.
Documents Required for Government Schemes
Most government schemes require basic documents for verification. While the exact requirements vary, common documents include:
- Aadhaar Card
- Income Certificate
- Caste Certificate (if applicable)
- Residence Proof
- Bank Account Details
- Educational Certificates (for student schemes)
How to Apply for Government Schemes?
The application process for government schemes may be online or offline depending on the scheme. In most cases, you can follow these steps:
- Check eligibility criteria
- Collect required documents
- Fill the application form
- Submit the application online or at the relevant office
- Track application status