The Comprehensive Handicrafts Cluster Development Scheme was launched to create a world-class infrastructure that will cater to the business needs of local artisans & SMEs in order to boost production and export.
The Comprehensive Handicrafts Cluster Development Scheme was launched to create a world-class infrastructure that will cater to the business needs of local artisans & SMEs in order to boost production and export.
The "Comprehensive Handicrafts Cluster Development Scheme (CHCDS)" has been launched by the Ministry of Textiles, Government of India, under the Development Commissioner (Handicrafts). The scheme aims to develop handicrafts clusters by creating world-class infrastructure, improving productivity, enhancing market access, and strengthening the overall handicrafts ecosystem.
> Objectives
To enhance competitiveness of handicrafts clusters and increase market share.
To integrate scattered artisans and build strong grassroots enterprises.
To generate additional livelihood opportunities and increase artisan income.
To provide infrastructure, technology, design, marketing, and raw material support.
To strengthen capacity building through professional and technical assistance.
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Financial & 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 & 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 & 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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Step 1: Offline application
> Application Process: 1. Agency start identification of handicraft clusters through a field survey and a viability study. 1. Conducting a diagnostic study to assess needs, gaps, and baseline data. 1. Preparation of Detailed Project Report (DPR) including technical, financial, and implementation aspects. 1. Validation of DPR with stakeholders including artisans, associations, and government bodies. 1. Submission of DPR to Project Approval and Monitoring Committee (PAMC). > Post-application Process: 1. Approval of project by Ministry of Textiles based on DPR evaluation. 1. Release of funds in installments as per project milestones. 1. Implementation of interventions such as infrastructure, training, and marketing. 1. Regular monitoring through field offices and submission of Monthly Progress Reports (MPR). 1. Final evaluation and submission of utilization report after project completion. <br>
Artisans, craftsmen, and cluster-based enterprises benefit from the scheme. <br>
Financial, infrastructural, technical, and marketing support is provided. <br> <br>
Up to ₹5,00,000 or 2% of project cost, whichever is less. <br> <br>
More than 10,000 artisans or as per availability in the cluster. <br>
The project duration is 3 years, extendable by 1 year. <br>
Funds are released in three installments based on utilization and progress. <br>
Yes, training and skill upgradation are key components. <br>
Yes, designers are engaged with a monthly fee of ₹55,000. <br>
Common Facility Centres, Design Centres, Raw Material Banks, etc. <br>
Yes, the scheme promotes exports and international market linkages. <br>
PAMC approves DPRs and monitors project implementation. <br>
Yes, infrastructure is monitored for up to 10 years after completion. <br>
Applications are accepted only on the official government portal.
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