Comprehensive Handicrafts Cluster Development Scheme
State: Central
Ministry: Ministry Of Textiles
Department: null
Category: Skills & Employment, Business & Entrepreneurship
Beneficiary Type: Artists, Government Organisation, Industries

The scheme aims to provide financial assistance, infrastructure development, skill upgradation, and market linkage support to artisans, craftsmen, and cluster-based enterprises.

Benefits:
**Financial &amp; Infrastructure Benefits**

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

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

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Application Process:
[Offline]
Application Process:Agency start identification of handicraft clusters through a field survey and a viability study.
Conducting a diagnostic study to assess needs, gaps, and baseline data.
Preparation of Detailed Project Report (DPR) including technical, financial, and implementation aspects.
Validation of DPR with stakeholders including artisans, associations, and government bodies.
Submission of DPR to Project Approval and Monitoring Committee (PAMC).
Post-application Process:Approval of project by Ministry of Textiles based on DPR evaluation.
Release of funds in installments as per project milestones.
Implementation of interventions such as infrastructure, training, and marketing.
Regular monitoring through field offices and submission of Monthly Progress Reports (MPR).
Final evaluation and submission of utilization report after project completion.

Documents Required:
Detailed Project Report (DPR)
Baseline Survey Report
Land Ownership Documents (Where Applicable)
Registration Certificate of Agency
Memorandum And Articles of Association (MOA/AOA)
Annual Reports of Last 3 Years
Financial Statements And Audit Reports
Aadhaar Card of Authorized Representative
Bank Account Details
Utilization Certificates (For Fund Release)
Cluster Diagnostic Study Report
Stakeholder Validation Documents