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Central Schemebusiness-entrepreneurship

GROUP WORKSHED SCHEME

The objective of the scheme is to facilitate the establishment of worksheds for shuttleless looms in an existing or new cluster, which will provide the required scale of economy for business operations.

Ministry / Department
Ministry Of Textiles
Level
Central
Benefit type
other
Last verified: 18 Jun 2026

What is GROUP WORKSHED SCHEME?

The objective of the scheme is to facilitate the establishment of worksheds for shuttleless looms in an existing or new cluster, which will provide the required scale of economy for business operations.

Benefit
MAXIMUM ADMISSIBLE AREA Shuttleless Looms : 400 Sq.ft / Loom Weaving Preparatory : 40% of Loomage area Dormitory : 125 Sq.ft / Person <br> SUBSIDY CHART S.No.CategoryEligible Subsidy on the unit cost of construction Cap on Subsidy per Sq.ft 1General40%₹ 4002SC75%₹ 7503ST90%₹ 900
Level
Central
Ministry / Dept.
Ministry Of Textiles
Benefit type
other
Key eligibility
The group will consist of at least 4 weavers/entrepreneurs having separate legal entities.
Last verified
18 Jun 2026

Overview

The objective of the scheme is to facilitate the establishment of worksheds for shuttleless looms in an existing or new cluster, which will provide the required scale of economy for business operations.

To organize powerloom units in a cluster and to provide improved working conditions in terms of more space, work environment, improve work efficiency to enhance their competitiveness in the global market.

ELIGIBLE BENEFICIARIES

State Government (or) its agency.

A registered Co-operative society.

A Company set-up under the Companies Act, 1956 as amended (or) a firm set-up under the Limited Liability Partnership Act, 2008 as amended, by a group of powerloom owners (minimum of four beneficiaries).

The local powerloom association.

Benefits

MAXIMUM ADMISSIBLE AREA

Shuttleless Looms : 400 Sq.ft / Loom

Weaving Preparatory : 40% of Loomage area

Dormitory : 125 Sq.ft / Person

<br>

SUBSIDY CHART

S.No.CategoryEligible Subsidy on the unit cost of construction Cap on Subsidy per Sq.ft 1General40%₹ 4002SC75%₹ 7503ST90%₹ 900

Eligibility

  • The group will consist of at least 4 weavers/entrepreneurs having separate legal entities.
  • At least 24 nos. of shuttleless looms of width up to 230 cms (or) 16 nos. of shuttleless looms of wider width i.e. 230 cms and above must be installed.
  • Each beneficiary should have at least 4 looms.
  • Only TUFS-compatible machineries are to be installed.
Area: IndiaBenefit: other

Documents Required

  • To monitor the implementation of the scheme and ensure proper usage of the benefit, the Textile Commissioner shall call for any documents/information from the beneficiary as may be deemed necessary and cause inspection of the unit(s) as and when required.

How to Apply

  1. Step 1: Offline application

    The advertisement is published in newspapers.

FAQ

What is the main objective of this scheme?

To support the establishment of worksheds for shuttleless looms in clusters to improve working conditions, efficiency, and global competitiveness.

Who can apply for the scheme?

State governments/agencies, registered co-operative societies, companies under the Companies Act, LLPs with a group of powerloom owners (minimum 4), or local powerloom associations.

How much area is allowed per shuttleless loom under the scheme?

400 sq. ft per loom for shuttleless looms.

What is the area allowed for weaving preparatory units?

40% of the total loomage area.

Is dormitory space allowed under the scheme?

Yes, up to 125 sq. ft per person.

What is the subsidy percentage for General category applicants?

40%, with a cap of ₹400 per sq. ft.

What is the maximum subsidy allowed for Scheduled Tribe (ST) applicants?

90% subsidy, up to ₹900 per sq. ft.

How many looms are required to be eligible?

A minimum of 24 shuttleless looms (up to 230 cm width) or 16 wider-width looms (230 cm and above).

Can a single entrepreneur apply under the scheme?

No, a group of at least 4 weavers/entrepreneurs with separate legal entities is required.

What is the application mode for this scheme?

Offline. The advertisement is published in newspapers for application invitation.

Sources & References

Ready to apply?

Applications are accepted only on the official government portal.

Open Official Website

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