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Assistance Scheme for Handicraft Artisans

The Scheme intends to provide financial assistance in the form of grant to the artisans in the handicrafts sector for setting up handicraft enterprises. The assistance is a one time support to eligible artisans of the state as back end assistance.

Ministry / Department
Industries and Commerce Department
Level
State
Benefit type
other
Last verified: 18 Jun 2026

What is Assistance Scheme for Handicraft Artisans?

The Scheme intends to provide financial assistance in the form of grant to the artisans in the handicrafts sector for setting up handicraft enterprises. The assistance is a one time support to eligible artisans of the state as back end assistance.

Benefit
1. Provides assistance for the Fixed Capital Investment, i.e. construction of Work shed/Workshop, cost of tools, equipment, machinery and accessories, electrification, Technology support/product/Design development. 1. For General Category artisans, assistance is 40% of the Fixed Capital Investment limited to ₹2.00 lakh. 1. For Young (18 to 45 years), Women, and SC/ST artisans, the assistance is 50% limited to ₹3.00 lakh. Note: The assistance under the ‘ASHA’ shall be released to the eligible artisan in one installment.
Level
State — Kerala
Ministry / Dept.
Industries and Commerce Department
Benefit type
other
Key eligibility
All Micro Enterprises engaged in the handicraft sector and set up in the State, which had filed Entrepreneurs Memorandum Part-II with the respective General Manager, District Industries Centre, or have taken Udyog Aadhaar shall be eligible for assistance under the Scheme.
Last verified
18 Jun 2026

Overview

The Government of Kerala has initiated the scheme “Assistance Scheme for Handicraft Artisans (ASHA)” to provide financial assistance in the form of grants to the artisans in the handicrafts sector for setting up handicraft enterprises. The assistance is a one-time support to eligible artisans of the state as back-end assistance. The Scheme aims to replace the existing scheme and bring the artisans in the handicrafts sector under the ambit of a single scheme for availing financial assistance in the form of grant assistance for setting up handicraft enterprises.

For the purpose of this scheme, an artisan is a person who has been categorized as such by the office of the Development Commissioner (Handicrafts), Govt. of India or SURABHI, KSBC, KADCO, HDCK, KELPALM and has taken effective steps to set-up an enterprise in the handicrafts sector.

> Objectives:

To provide extensive support to artisans in the handicrafts sector for setting up handicrafts-based micro-enterprises

To give one-time support(grant) to eligible artisans of the State as back-end assistance.

Benefits

1. Provides assistance for the Fixed Capital Investment, i.e. construction of Work shed/Workshop, cost of tools, equipment, machinery and accessories, electrification, Technology support/product/Design development.

1. For General Category artisans, assistance is 40% of the Fixed Capital Investment limited to ₹2.00 lakh.

1. For Young (18 to 45 years), Women, and SC/ST artisans, the assistance is 50% limited to ₹3.00 lakh.

Note: The assistance under the ‘ASHA’ shall be released to the eligible artisan in one installment.

Eligibility

  • All Micro Enterprises engaged in the handicraft sector and set up in the State, which had filed Entrepreneurs Memorandum Part-II with the respective General Manager, District Industries Centre, or have taken Udyog Aadhaar shall be eligible for assistance under the Scheme.
  • Note: Assistance to any unit which has already received any subsidy or grant earlier under any other schemes, from State or Central Government or Government Agencies shall be limited to the balance remaining eligible assistance payable under this scheme.
  • > Obligations of the applicant artisans:
  • The applicant shall provide all required details and declare such information as to be true.
  • The applicant shall provide clarifications or further details sought by the recommending/ sanctioning authority.
  • The applicant shall allow inspection or verification of any details mentioned in the application including tools, equipment & accessories, and all other assets if so required by the recommending/sanctioning authority.
  • The applicant shall produce originals of any important documents if so required by the recommending/sanctioning authority for verification.
  • The applicant shall execute the requisite legal agreement on paper as and when the proposal is approved for implementation.
  • The applicant shall utilize the amount received only in the manner agreed upon.
  • The applicant shall operate the unit as stipulated in the agreement in which the quantum of support received failing which the assistance shall be resumed by resorting to the provisions of the Kerala Revenue Recovery Act.
Area: KeralaBenefit: other

Documents Required

  • Self-attested copy of the identity card of the applicant.
  • Passport size photo
  • Proof of age, if applicable
  • Self-attested copy of the resolution towards applying for this assistance in case of a unit other than proprietary.
  • Self-attested copy of Udyam Registration of the unit.
  • Copy of Caste Certificate (Attested by Gazetted Officer) in case of SC/ST artisans.
  • Self-attested copy of Project Report
  • Bank account details

How to Apply

  1. Step 1: Online — Step 01

    : Application can be submitted online through the Official website of the Directorate of Industries & Commerce, Government of Kerala. The applicant needs to visit the official website.

  2. Step 2: Online — Step 02

    The applicant may select the scheme “Assistance Scheme for Handicraft Artisans” from the available Online Services listed on the home page and click on the “Apply Now” option. While clicking “Apply Now” redirected to the Login Page. If a new user uses the “New Registration” option and if already registered use the ‘Login’ option.

  3. Step 3: Online — Step 03

    A new user can register by filling in his/her details and after successful registration, the user can login.

  4. Step 4: Online — Step 04

    After successful login, the applicant reaches the “Applicant Home page” and clicks on “New Application” and then ‘Proceed’.

  5. Step 5: Online — Step 05

    Fill out the application form completely and click on ‘Submit’. User Manual for Applicant’s Login

FAQ

What is the aim of the scheme?

The Scheme aims to replace the existing scheme and bring the artisans in the handicrafts sector under the ambit of a single scheme for availing financial assistance in the form of grant assistance for setting up handicraft enterprises.

What is the objective of the scheme?

The objective of the scheme is to provide extensive support to artisans in the handicrafts sector for setting up handicrafts-based micro-enterprises and give one-time support (grant) to eligible artisans of the State as back-end assistance.

Which is the implementing department of this scheme?

Industries & Commerce Department, Government of Kerala

What does ‘Artisan’ mean?

An artisan is a person who has been categorized as such by the office of the Development Commissioner (Handicrafts), Govt. of India or SURABHI, KSBC, KADCO, HDCK, KELPALM and has taken effective steps to set-up an enterprise in the handicrafts sector.

What does ‘Enterprise’ mean?

An industrial unit falling under Micro category under the MSMED Act 2006 and having filed EM Part -II or Udyog Aadhaar.

What does “Women enterprise” mean?

An enterprise in which at least 50% of the promoters are women artisans.

What does “Young artisan” mean?

An artisan between the age of 15 and 45. In case of more than one artisan, then to be eligible for assistance under this Scheme, all the artisans shall be between the age of 18 and 45. At the time of filing application for assistance under ASHA. the artisan(s) should have attained 18 years of age as on the 1st April of the concerned financial yew and should not have attained 45 years of age as on the 1st April of the concerned financial year.

What does “Scheduled Caste and Scheduled Tribe entrepreneur” mean?

An artisan belonging to Scheduled Castes or Scheduled Tribes under The Constitution Amendment (Scheduled Castes) Order, 1050/ The institution Amendment (Scheduled Tribes) Order, 1950 (as amended by Scheduled Castes/scheduled Tribes Orders (Amendment) Act, 1976. In case of more than one promoter, then eligible for assistance under this Scheme, at least 50 % of the promoters shall be SC/ST.

What does “Recommending Authority” mean?

Office of the Development Commissioner (Handicrafts), Government of India or SURABHI, KSBC, KADCO, HDCK, KELPALM for artisans registered through them. In all other cases, the recommending authority shall be the respective Manager in-charge of Handicrafts, District Industries Centres. The recommending authority shall accept applications, process the applications and place the applications before the District Level handicraft Project Appraisal Committee, The committee shall scrutinize the applications and recommend to the sanctioning authority and disburse the assistance.

Which types of enterprises are eligible to get the benefits of the scheme?

All Micro Enterprises engaged in the handicraft sector and set up in the State, which had filed Entrepreneurs Memorandum Part-II with the respective General Manager, District Industries Centre, or have taken Udyog Aadhaar shall be eligible for assistance under the Scheme.

What is the benefit of the scheme?

Depending upon the category of the investor, the unit can avail subsidy from 40% to 50%.

For what purpose the financial assistance shall be given to the artisan?

The financial assistance shall be provided for the Fixed Capital Investment, i.e. construction of Work shed/Workshop, cost of tool, equipment, machinery and accessories, electrification, Technology support/product/Design development.

What is the maximum assistance given to the General Category artisans under the scheme?

For General Category artisans, assistance is 40% of the Fixed Capital Investment limited to [?]2.00 lakh.

What is the maximum assistance given to the Young artisans under the scheme?

For Young (18 to 45 years), Women, and SC/ST artisans, the assistance is 50% limited to [?]3.00 lakh.

Is an enterprise eligible to get assistance if it has already received any subsidy under any scheme?

The financial assistance to any unit which has already received any subsidy or grant earlier under any other schemes, from State or Central Government or Government Agencies shall be limited to the balance remaining eligible assistance payable under this scheme.

How can an applicant apply under the scheme?

Application can be submitted online through the Official website of the Directorate of Industries & Commerce, Government of Kerala.

Sources & References

Ready to apply?

Applications are accepted only on the official government portal.

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