Comprehensive Handicrafts Cluster Development Scheme

Description
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.

Exclusions
• The applicant should not submit incomplete DPR or proposals.
• The applicant should not have litigation issues related to project land or ownership.

Benefits
• Financial & Infrastructure Benefits
• Financial assistance as per Detailed Project Report (DPR).
• Up to ₹5,00,000 or 2% of project cost for baseline survey/DPR preparation (whichever is less).
• 3% of total project cost for Project Monitoring Unit (PMU).
• 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).

Eligibility Criteria
1. The applicant should be an implementing agency such as a state/central handicrafts corporation, autonomous body, cooperative, producer company, or SPV.
2. The applicant should have experience in the handicrafts sector.
3. The applicant should prepare a Detailed Project Report (DPR) based on cluster needs.
4. The applicant should cover more than 10,000 artisans or as available in the cluster.
5. The applicant should ensure ownership of land free from litigation (where infrastructure is required).
6. The applicant should ensure a cluster-based approach in a specific geographical area or craft sector.
7. The applicant should ensure integration of artisans and SMEs for large-scale production.
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Application Process
Step 1: Agency start identification of handicraft clusters through a field survey and a viability study.
Conducting a diagnostic study to assess needs, gaps, and baseline data.
Preparation of Detailed Project Report (DPR) including technical, financial, a…
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Agency start identification of handicraft clusters through a field survey and a viability study.
Conducting a diagnostic study to assess needs, gaps, and baseline data.
Preparation of Detailed Project Report (DPR) including technical, financial, and implementation aspects.
Validation of DPR with stakeholders including artisans, associations, and government bodies.
Submission of DPR to Project Approval and Monitoring Committee (PAMC).
Approval of project by Ministry of Textiles based on DPR evaluation.
Release of funds in installments as per project milestones.
Implementation of interventions such as infrastructure, training, and marketing.
Regular monitoring through field offices and submission of Monthly Progress Reports (MPR).
Final evaluation and submission of utilization report after project completion.

Required Documents
• Detailed Project Report (DPR)
• Baseline Survey Report
• Land Ownership Documents (Where Applicable)
• Registration Certificate of Agency
• Memorandum And Articles of Association (MOA/AOA)
• Annual Reports of Last 3 Years
• Financial Statements And Audit Reports
• Aadhaar Card of Authorized Representative
• Bank Account Details
• Utilization Certificates (For Fund Release)
• Cluster Diagnostic Study Report
• Stakeholder Validation Documents

Frequently Asked Questions
Q: Who are the beneficiaries of the scheme?
A: Artisans, craftsmen, and cluster-based enterprises benefit from the scheme.
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Q: What type of support is provided under CHCDS?
A: Financial, infrastructural, technical, and marketing support is provided.
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Q: What is the maximum support for DPR preparation?
A: Up to ₹5,00,000 or 2% of project cost, whichever is less.
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Q: How many artisans are required in a cluster?
A: More than 10,000 artisans or as per availability in the cluster.
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Q: What is the project duration under CHCDS?
A: The project duration is 3 years, extendable by 1 year.
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Q: How are funds released under the scheme?
A: Funds are released in three installments based on utilization and progress.
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Q: Is skill development included in the scheme?
A: Yes, training and skill upgradation are key components.
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Q: Are designers provided under the scheme?
A: Yes, designers are engaged with a monthly fee of ₹55,000.
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Q: What types of infrastructure are developed?
A: Common Facility Centres, Design Centres, Raw Material Banks, etc.
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Q: Is export promotion supported under CHCDS?
A: Yes, the scheme promotes exports and international market linkages.
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Q: What is the role of PAMC?
A: PAMC approves DPRs and monitors project implementation.
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Q: Is monitoring done after project completion?
A: Yes, infrastructure is monitored for up to 10 years after completion.
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