Handlooms & Handicrafts

The objective is to develop Mega Handloom Clusters that are located in clearly identifiable geographical locations that specialize in specific products, with close linkages and inter dependents amongst the key players in the cluster by improving the infrastructure facilities, with better storage facilities, technology up-gradation in pre-loom/on-loom/post-loom operations, weaving shed, skill up-gradation, design inputs, health facilities etc

The programme includes various schemes and components such as the following 

• Block-level cluster - Introduced in 2015-16 providing financial assistance up to INR. 2.00 crore per BLC for various interventions such as skill up-gradation. Besides financial assistance up to Rs. 50.00 lakh also available for setting up of one dye house at the district level.
• Handloom Marketing Assistance - To provide a marketing platform to the handloom agencies/ weavers to sell their products directly to the consumers. 
• Weavers' MUDRA Scheme - Credit at a concessional interest rate of 6% is provided to the handloom weavers. Margin money assistance to a maximum of Rs. 10,000 per weaver and credit guarantee for a period of 3 years is also provided.
• Education of handloom weavers and their childers - MoU signed with Indira Gandhi National Open University (IGNOU) and National Institute of Open Schooling (NIOS) to secure educational facilities for the weavers and their families.
• India Handloom Brand - It was launched by the Hon'ble Prime Minister for the branding of high-quality handloom products.  Since its launch, 1232 registrations have been issued under 122 product categories and sale of Rs. 689.72 crore as reported on 31-03-2019
• E-commerce - In order to promote e-marketing of handloom products, a policy framework was designed and under which any willing e-commerce platform with a good track record can participate in online marketing of handloom products. Accordingly, 23 e-commerce entities have been engaged for online marketing of handloom products. A total sale of Rs. 34.72 crore has been reported through the online portal as on 31-03-2019.

Yarn Supply Scheme is being implemented throughout the country to make available all types of yarn at Mill Gate Price. The scheme is being implemented through National Handloom Development Corporation.  Under the Scheme freight is reimbursed and depot operating charges at 2% is given to depot operating agencies.  A component of 10% price subsidy also exists on hank yarn, which is applicable on cotton, domestic silk and woollen yarn with quantity caps.

A special fund of INR. 2000 crore has been set up in National Bank for Agriculture and Rural Development (NABARD) to provide credit at affordable rates to boost the Food Processing sector. Loans are extended up to 95% of the eligible project cost for entities promoted by the State Governments while other categories of promoters are extended loans up to 75% of the project cost.