Jute Diversification Scheme
State: Central
Ministry: Ministry Of Textiles
Department: null
Category: Business & Entrepreneurship
Beneficiary Type: Business Entity

The scheme aims to set up production centres to promote eco-friendly jute products and generate sustained employment. It provides skill training, machine subsidies, and financial incentives to collaborating agencies, targeting artisans, women self-help groups, and entrepreneurs.

Benefits:
##### ***Financial Assistance for Activities***

- The scheme provides an estimated cost of ₹12,40,000/- for organizing 5 cycles of basic, advance, and design training for 24 beneficiaries per cycle.
- Incentive for Collaborating Agencies: The agency receives ₹2,48,000/- (calculated as 20% of the activity cost) for organizing the activities and maintaining the infrastructure.

##### ***Infrastructure Support***
The scheme provides ₹12,000/- for the installation of a biometric machine, internet connectivity, and maintenance.
##### ***Machinery Subsidy***
The scheme offers ₹9,00,000/- per year per centre to procure 72 machines (at 50% subsidy or a maximum ceiling of ₹12,500/- per machine, whichever is less) for successful beneficiaries engaged in production.
##### ***Disbursal***

- 50% of the activities cost is released as an advance along with the approval of the action plan.
- The remaining 50% of the activities cost, the cost of the biometric machine, and the incentive are released upon successful completion of the activities and submission of final claims and reports.
- The machine subsidy is released in two installments, where 50% is released within one month of installation, and the remaining 50% is released after six months upon inspection certifying that the beneficiaries are engaged in manufacturing and sales.
- The payments of such incentives are paid strictly through Direct Bank Transfer.

##### ***Conditions***

- The collaborating agency must ensure the engagement of at least 50% of the trainees in jute diversification activities post-training.
- In the case of self-employment, the beneficiary must achieve sales of at least ₹5,000/- per month or ₹15,000/- per quarter.
- The agency must maintain a separate bank account for all advances and limit cash transactions to a maximum of ₹5,000/- per activity.
- The installation of an Aadhaar linked biometric attendance machine and a webcam is mandatory at the training site.

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Eligibility:
- The applicant must be a bonafide Indian agency or an Indian citizen.
- The applicant must be a reputed registered jute entrepreneur, manufacturer, exporter, merchant trader, non-governmental organization, cooperative society, federation, public sector undertaking, or organization.
- The applicant must be engaged in the product identification, bulk production, skill trainings, and marketing of jute diversified products for at least the last three years.
- The applicant should possess recognized experience in the training, promotion, and development of Women Self Help Groups in the field of production and marketing of jute diversified products, handlooms, or handicrafts.
- The applicant must have their own office of at least 250 sq.ft. equipped with a telephone or mobile connection, a computer or laptop, and email facilities.
- The applicant must have at least 500 sq.ft. of space available for setting up the Jute Resource-Cum-Production Centre.
- The applicant must obtain a minimum of 50 marks in the evaluation criteria to be eligible for consideration for selection.

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##### ***Preference***
Preference is given to recognized agencies with at least three years of experience in training, promotion, and development of Women Self Help Groups in the handloom, handicrafts, and textiles sector.
##### ***Earmarking/Reservation***
At least 70% of the training beneficiaries must be individual women or women belonging to Women Self Help Groups.
##### ***Relaxation***
If an entrepreneur collaborates with the purpose of converting the centre into a full-fledged manufacturing unit by employing at least 50% of its trainees, the condition of training over 70% women will not be applicable.
##### ***Post-Selection Conditions***

- The applicant must sign a Memorandum of Understanding with the National Jute Board.
- The applicant must submit an annual action plan supported by a list of confirmed bonafide trainees.
- The applicant must submit a bank guarantee equivalent to 50% of the activities cost of the approved cycles.
- The applicant must set up the centre by procuring and installing new branded machineries within one month from the date of the in-principle approval.

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Application Process:
[Online]
Step 1: Accessing the PortalThe applicant must access the official website of the National Jute Board to begin the application procedure. The application must be initiated through the designated online portal.
Step 2: Filling the Online ProposalThe applicant must complete the online application by filling in all the relevant details, including agency profile, infrastructure facilities, past experience in jute diversified products, and proposed action plans. All requested information must be accurately entered into the online system to generate an acknowledgement.
Step 3: Submitting the Hard CopiesAfter successfully submitting the online proposal, the applicant must print the online acknowledgement. The printed acknowledgement, accompanied by a covering letter on the official letterhead of the company, must be prepared for offline submission.
Step 4: Physical Document DispatchThe applicant must compile all the prescribed supporting documents and attach them to the printed acknowledgement. This complete application package must be submitted physically to the Head Office or the respective Regional Office of the National Jute Board, depending on the jurisdiction of the proposed centre.
Step 5: Evaluation and SelectionThe submitted proposals will be scrutinized and evaluated by a Sub-Committee based on predefined criteria such as agency experience, proximity of location, and infrastructure. Agencies scoring a minimum of 50 marks will be shortlisted and recommended to the Monitoring Committee for final approval and selection.
Grievance Redressal / Help & SupportEmail: jute@njbindia.in.
Fax: (033) - 2217 2456.
Address: National Jute Board, 3A & 3B, Park Plaza, 71, Park Street, Kolkata 700 016.

Documents Required:
Application StageOwnership Document (Memorandum of Understanding, Articles of Association of Companies, Registered Deed of Partnership, Registration of Societies, or Trade License).
Aadhaar Card or Address Proof of the Authorized Representative.
Income Tax Return for the Last Financial Year.
Permanent Account Number (PAN) Card.
Goods and Services Tax (GST) Returns for the Last Three Financial Years.
Annual Reports for the Last Three Financial Years.
Audited Financial Statements for the Last Three Years.
Project Experience Certificates.
Recommendation Letter From the District Magistrate, District Collector, District Industries Centre, NABARD, District Rural Development Agency, or Block Development Officer (Desirable).
Concept or Approach Note.
Undertaking From the Agency.
Copy of the Front Page of the Bank Passbook.
Copy of a Cancelled Cheque Leaf.
Benefit Disbursal And Reporting StageBank Guarantee.
Detailed Annual Action Plan.
Aadhaar Linked Bio-Metric Attendance Report.
Webcam Recording in a Pen Drive.
Statement of Expenditure.
Original Receipts, Bills, Railway Receipts, and Payment Vouchers.
Activity Reports for Each Training Module.
Photographs With Geo-Tagging.
Self Certification of Expenditure (For Master Trainers and Designers).