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Handicrafts: Government Incentives

A Shawl Factory - Kullu valleyGovernment has various schemes for the handloom sector. These schemes take care of various activities such as training weavers, supplying equipments, product development, institutional support, infrastructure and marketing support etc. in an integrated and coordinated manner. The main objective of these schemes is to ensure overall development of the handloom sector and to benefit the handloom weavers. These schemes are an attempt to provide such facilities which would enable the weavers to take up production as per the demands of the market.

These schemes attempt to look after the needs of the weavers for working capital, basic inputs, creating awareness and attempt to support quality fabric production through appropriate design intervention, alongwith increase in productivity, provision of publicity, and marketing incentive.

Components of Incentive Scheme

Basic Inputs
Financial assistance is provided in the form of margin money to avail credit facilities from the financial institutions. Financial assistance is also provided in the form of grants for procurement of new looms, dobby, jacquard and accessories which is maximum of 50% of the cost of the item. To facilitate weavers to switch over from low value added items to high value added products, assistance for training is provided.

Infrastructure Support
Financial assistance is given for setting up of water and effluent treatment plants and for process houses, having facilities like bleaching, dyeing, finishing etc.

This assistance is provided to Primary Cooperative Societies/ Self Help Group etc., having a turnover of more than 25 lakhs and National level Organisations/ State Handloom Corporation etc. having a sales turnover of Rs. 5 crore or more.

Design Input
Keeping in view the changing market scenario within the country and abroad, assistance towards provision of design and installation of Computer Aided Design System to improve the design quality of the handloom products is provided.

Assitance in the form of grant is provided to avail sevices of National Institute of Design (NID), National Institute of Fashion Technology (NIFT), Design Consultants/Freelance Designers etc.

Financial assistance is provided to handloom organisations for projects involving expenditure towards publicity, advertisement, printing of brochures/catalogues, market research as well as production of films for promotion of sales of handlooms.

Marketing Incentives
Financial assistance is provided to prepare conditions which are conducive for marketing of handloom products. The organisation is expected to use this assistance towards activities which would attract consumers in order to gear up the overall sales of handloom goods.

Transport Subsidy
Assistance towards subsidising the cost of transportation of finished goods to the approved outlets of the state to which it is transported/ to the approved site of exhibition/ fairs organised by Development Commissioner Handlooms is provided. This assistance is provided on condition that the place to which it is transported has a minimum of 10 lakh population.

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