Professional Documents
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NHDP (Final) Anex-III DT 01.01.2016 (Handicraft)
NHDP (Final) Anex-III DT 01.01.2016 (Handicraft)
a
CONTENTS.
1. List of abbreviations c
2. Background 1–3
b
List of Abbreviations
c
Background
While Baba Saheb Hastshilp Vikas Yojana (AHVY) is a cluster specific scheme, the
remaining schemes cut across clusters dealing with specialized interventions. Further, a
synergy is missing between the various schemes which results in overall dilution in
expected outcome. Under the existing format, the AHVY scheme envisaged sanctioning
of a project to one implementing agency and it was entrusted with the responsibility of
undertaking all the specialized interventions. Experience shows that one implementing
agency normally does not have the expertise to execute the various specialized
interventions such as design development, skill upgradation, technology support,
marketing and infrastructural support. Furthermore, there is another basic flaw in the
scheme as it envisages ‘one shoe fits all’ approach which is not in sync with reality as the
needs and strengths of each cluster are unique.
This requires a change in the scheme design by adopting ‘a need based cluster specific’
approach. Therefore, it is proposed that an annual action plan will be prepared in
advanced by earmarking cluster specific interventions to be carried out in a time-bound
manner in the following year and implemented either departmentally or through various
expert agencies.
The following three pronged approach will be adopted to put the sector on high growth
trajectory as well as preserving existing cultural heritage:-
I. Promoting premium handicrafts products for the niche market.
II. Expansion of production base for utility-based, life style and mass
production handicrafts products.
III. Preservation and protection of heritage/languishing crafts.
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Exquisite master-piece handicraft items with substantially high artistic content should
command a higher price in the market. Such high-premium medium- volume handicraft
products should be positioned in the niche market through strong promotional and
advertisement efforts with development of “Handcrafted in India” mark which will create
the willingness in customers to pay a much higher price. Growth of such products will be
ensured through selection and training of young promising artisans with imaginative and
artistic skills by the top-class master-craftsperson to facilitate the transfer of traditional
skills. Direct e-sales of such products with suitable marketing, sourcing and logistic
arrangements should result in many times higher incomes for the artisans and thus
arresting the large scale migration of artisans to other jobs. The artisans in the segment
will also be supported through direct assistance for tool-kits, education, social security
etc.
Utility-based home décor and furnishing handicraft products will need introduction of
substantial technology and mechanization of parts of the manufacturing process thereby
enabling mass production quality-enhancement and cost-reduction to face the challenges
of global competition. These issues will be addressed by empowering the artisan
communities through organizing them into community groups, handholding them to set
up and run Common Facility Centers equipped with training, modern technology,
improved tools, raw material, processing, designing facilities and also through assisting
them directly through bank account. Each such CFC will be linked with the market
through bulk buyers or exporters from the region. Smooth provisioning of other inputs
alongwith artisans’ welfare and other marketing support will also be ensured. Moreover,
there is a lack of adequate and authentic data on craftspersons, including their socio-
economic status, livelihood conditions and details of their families which has become a
major bottleneck adversely affecting planning and policy making for this sector. Hence,
comprehensive surveys will be undertaken for building comprehensive data-base which
will help in devising suitable interventions.
There are many crafts which represent India’s rich cultural heritage but some are on a
decline due to various economic and other factors. These crafts need to be preserved
and protected through various interventions like Handicrafts Museums, Hastkala
Academy etc. These heritage crafts can also be modified or re-designed to meet the
requirement of the present market demand and thereby preserving them. The lack of
proper processes and systems for identification, documentation and mapping of all crafts
and clusters is still a major challenge which will be addressed by carrying out studies and
surveys. The languishing crafts will be given additional design, training and marketing
support so that crafts are revitalised.
Promotion of handloom and handicraft will be linked with tourism keeping in view the
potential for foreign as well as domestic tourists, whose number has been increasing
steadily, due to higher disposable incomes and increase in the size of the middle class in
the country. Towards this end, the possibility of convergence between on-going
schemes of other Ministries such as Ministry of Tourism, Ministry of Culture etc with the
active cooperation of the state governments will be explored. Development of
Destination Villages, Setting up state-of-the-Art exhibition-cum-sales Showroom, way
side amenities, souvenir shops and organization of state level fairs will be undertaken.
2
The National Handicraft Development Programme for development and promotion of
Handicrafts Sector will have the following three components:
Eligible organizations
Eligible Non-Governmental Organizations, local statutory bodies, Apex cooperative
Societies and National level Apex Societies (registered under society act/ trust act,
etc.) and organization like COHANDS, EPCH, CEPC, Sector Skill Councils and its
affiliated Bodies, MHSC, IICT, NCDPD, HMCM, Hastkala Academy, NIFT, NID,
University Department., DRDA, NISIET, EDIs, and other similar bodies.
Central/ State Handloom and Handicrafts Development Corporations and other Govt.
Corporations/ agencies promoted by State Government or organization promoted by
Financial Institutions/banks, university departments,
Any component can be implemented departmentally as well.
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A. Ambedkar Hastshilp Vikas Yojna
(i) Dastkar Shashktikaran Yojana
Deliverables
Conduct survey of each artisan in the prescribed format
Mobilisation of artisans groups/SHG formation with office bearers,
Holding awareness camps for cluster artisans, discussion and formation of Annual
action Plan of the activities,
Opening of Bank accounts of SHGs.
Facilitating opening of Bank accounts of Individual artisans under Jan Dhan Yojna,
Issue of Artisans’ Identity Cards (AIC) to all cluster artisans,
Processing of the surveyed data in MS Excel Sheet format containing artisans’ details
such as identity card No., Photographs, Aadhar no., EPIC No., bank Account No. with
bank name.
Covering each artisan under RSBY and AABY Scheme,
Appointment of cluster Manager as per qualification and experience,
Formation and registration of Producer Company/ Federation/Institutions with at
least 50% of the Cluster artisans as members/ shareholders,
4
Financial assistance and funding pattern
Financial Assistance will be provided to the tune of INR 300/- per artisan for the
number of persons to be surveyed and mobilized for empowerment in the form of
grant in aid.
Financial assistance will be provided for a maximum of Rs 1 lakh per year for a
maximum of three years for formation of Producer Company/ Federation/Institution.
100% of the amount shall be released after registration as advance for the first year
to the organization for formation and registration of Producer Company/
Federation/Institutions. From the second year onwards the organization will be
provided 75% of their annual recurring expenditure in advance subject to a
maximum of Rs 1 lakh, which will be reduced to 50% for the third year subject to a
maximum of Rs 1 lakh. The grants will be released subject to the suitable conditions
fulfilled by the organizations. The amount will be provided directly to the account of
the organization.
In so far as possible existing SHGs formed under different schemes of Government
of India and State Government should be leveraged. In short formation of new SHGs
should be done only where no SHGs exist.
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The DSR/ DPR should clearly set the objectives in terms of increasing artisan income,
total production, and encouraging new persons to take up handicrafts as full time/part
time activity and should invariably contain the following details:
Project area (specification of village, Development Block and District with map)
Target Group indicating number of artisans
Project Goal:
(i) Expected increase in sales of all cluster artisans from Rs.--- Lakhs to Rs. ---
Lakhs
(ii) Expected increase in the average daily earning of cluster artisans from Rs.
___ to Rs. __
(iii) Preserving Heritage/ Languishing Arts/Crafts,
Problems to be addressed,
Details of need assessment done (if any) in the area before deciding on the project,
Proposed interventions with yearly programs and expected expenditure,
Proposed system of procuring Raw Materials,
Proposed methodology of manufacturing/ branding/marketing etc.
Eligibility
Financial Assistance will be provide up to a maximum of Rs.2.00 lakh per annum per
appraiser/moderator for a period of 3 years in case of third party consultants. Nil in case
of implementing agency
The handicrafts Clusters sanctioned earlier and where project life has ended but
the interventions have either not started or implemented in a scattered/ ineffective way
will also be considered as per the need of the cluster. While identifying such clusters
tourism potential of the area should also be taken into consideration.
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(A) (ii) Design & Technology Up-gradation.
(i) Design and Technology Development Workshop
The objective of the workshop is to develop new prototypes to suit the tastes and
preferences of contemporary market using the traditional skill of artisans and
introduction of new techniques and technologies for enhanced production
Duration and participation:
25 days subject to a minimum of 125 hours of training.
No. of participants per workshop: up to 30 artisans
One month can be taken for market survey, intelligence gathering and test
marketing, modifications, etc. including compulsory participation in one marketing
event.
Financial assistance and funding pattern
The total financial ceiling is maximum of INR 3,37,500/-.
Assistance shall be in the form of 100% grant-in-aid by O/o DC(H)
The break-up of expenses is as follows:
Maximum
Expense Head (for a training of 25 days (125 hrs.) for 30 permissible
artisans) assistance
(INR)
a) Fee for one Designer or master craftsman * INR 55,000/- per 1,10,000
month including TA
(one month for market survey and one month for training)
b) Market survey, intelligence gathering and test marketing, 35,000
modifications and participation in one marketing event.
c) Compensation for the cost of raw materials for development of 40,000
prototypes (2 set of 10 prototypes)**
d) Cost of documentation 15,000
e) Wage compensation/ stipend for 30 participants @ INR. 150/- 1,12,500
per day for 25 days.
f) Miscellaneous expenditure (stationery, telephone, 25,000
refreshments, publicity, repair of machinery, videography, etc.)
Total 3,37,500
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(ii) Integrated design and technology development project
The project has three essential components comprising design development, technology
development, techniques/process and formulation and publication of crafts design/craft
technology to the large number of artisans for their skill up gradation.
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(iii) Assistance to exporter and entrepreneur for design prototype
The objective of the programme is to promote the organizations in export of handicrafts
for development of new and innovative items. The financial assistance is provided for
development of design prototypes for exporters and entrepreneurs by selecting or
involving reputed designers from India and abroad who will help in the development of a
range of products suitable for particular markets.
Duration and participation
Maximum duration of 6 months
Eligibility
Entrepreneurs/ exporters/ association of exporters
Entrepreneurs/ exporters/ association of exporters can be assisted maximum once
in a year.
Designers to be sourced through reputed institutions such as NID, NIFT, NCDPD
and others.
Financial assistance and funding pattern
Financial assistance of upto 40% of the designer fee upto a maximum of INR
20,000/- per month for six months.
Mode of payment
Assistance will be released directly to the design institution.
Funds will be released in 2 installments
First installment of 50% of the sanctioned amount will be released as advance
and balance as reimbursement on submission of audited statement of accounts of
expenditure and performance report of the event and its acceptance by the
competent authority.
10
Note on design support interventions:
The maximum admissible financial assistance has been provided under each
scheme component. However, the sanction shall be based on the proposal
wherein the duration and participants will be defined. Accordingly the budget will
be reduced on pro-rata basis if the event is held for lesser number of days or if
there is lesser participation.
Wage compensation shall be paid to artisans @ INR 150/- per day per trainee.
Maximum fee for designer will be INR 55,000/- per month including TA wherein one
month is calculated as 25 working days.
All components can be implemented departmentally by the offices of DC (H) at
any point in time. In such cased payment will be 100% and in advance.
The word ‘Artisans’ will also include carpet weavers
Eligibility:
Vocational training institutions, Industrial training Institutes (ITI), polytechnics,
technical and other institutes recognized by central Government/concerned state
Government/universities/Handicrafts Sector Skill Council and such other
affiliating bodies.
Implementing Agency should have sufficient infrastructure to run the 5 year
Training Programme.
Other organizations which are imparting vocational trainings of Ministries of
Central Government.
The Institutes should have
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at least 3 yrs of experience in imparting vocational training and has trained at
least 500 people.
sufficient premises for imparting the training
necessary power connection for operating machinery and tools
necessary administrative/technical staff for maintenance of requisite records and
imparting training
a systematic syllabus containing theory, wherever applicable, as well as practical
Note: A MoU will be signed by the Institution/ Implementing agency to run the training
programme clearly indicating the output and the outcome.
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Note: The Training Project Sanctioned to various Institutions during XI Plan Period will be
funded for remaining period of the project on old pattern (i.e. pattern approved for XI Plan)
during XII Plan Period.
(ii) Handicrafts Training Program
To increase production base by involving more and more persons in this sector, large
number of training programmes in hard and soft skills are required to be undertaken to
fill the gap of the skilled workforce. Two type of skill training programs will be held
under this component:
a) Technical trainings
b) Soft skill training
(ii)(a) Technical trainings: Aims to train the persons in handicrafts and handmade
carpets including pattern making, stencil making, talim writing, mould making etc.
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Mode of payment
50% of the sanctioned amount will be released as first installment and balance amount
will be released as second and final installment in the shape of reimbursement after
receipt of requisite audited statement of expenditure, UC in GFR-19 A format, final
report on the training programme and other required documents, etc.
(ii) (b) Soft skill trainings: Aims to train the persons in non-Technical skills such as
micro finance/ entrepreneurship development/preparation of Business plans/preparation
of project reports/ packaging/ export procedures/Documentation etc. so that to enable
them in running their own enterprises smoothly.
Maximum Permissible
S.No. Expense Head
Assistance
a Space rent and infrastructure including Rs.5,000/- per week
services
b Wage compensation/ stipend for trainees Rs. 150/- per day per trainee
c TA for trainee Rs. 1500/- per trainee
d TA/Honorarium for trainer (for 2 trainers) Rs. 10,000/- per trainer
e Boarding/lodging for trainer Rs. 1000/- per day per trainer
f Documentation/ study material Rs. 20,000/-
g Miscellaneous expenditure (stationery, 10% of [total (a) to (f)]
telephone, refreshments, publicity, repair excluding the items not
of machinery, videography, etc.) admitted from (a) to (f)
above
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(iii) Training through Guru Shishya Parampara
This component provides for handing over/transfer of traditional knowledge from master
craftsmen to the new generation ensuring the sustenance of the craft. New/Semi-skilled
artisans are provided training by master crafts persons.
These trainings will help add value to the quality of the outputs, help the artisans learn the
finishing techniques and also give them the exposure to innovative techniques which can be
achieved using improved tools and technology. The training will enable improved production
as well as productivity and help artisans adapt to new design and techniques
Eligibility
Shilp Guru Awardee, National Awardee, National Merit Certificate, State Awardee
and other master crafts persons.
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In a week maximum 6 days and in a month maximum 24 days will be considered
as admissible for working out the financial assistance wherever financial
assistance is indicated on per day basis.
The programme is organized to acquaint the trainers as well as other practicing master
craftsmen with the latest developments that have been taking place in the field of design
technology and production techniques. The programme would essentially address the
issues like new design concepts, use of improved tools, new production techniques, new
technologies, Production management and costing, Economic and commercial
intelligence, Packaging etc.
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(v) Design mentorship and apprentice program
The component aims at providing mentorship and learning to final year/graduate/post
graduate students from reputed design institutes, recognized schools of fine arts and other
premiere design institutes recognized by AICTE / UGC / CSIR / Central/State Govt. and other
such affiliating bodies.
The component has the following objectives:
To provide new designs, technology & product development to the handicraft
sector
To promote of dedicated cadre of designers and merchandisers for the
handicraft sector
To provide regular design inputs to handicrafts clusters and exporting community
To update the sector about the changing global scenario with reference to
innovative designs
To support product development and upgrade quality
Development & supply of market driven New / Innovative Design / Product lines
Transforming designs into products with the help of Sr. designers / merchandisers
To establish specific integrated design development approach
To fill up the gap in the areas of Design & Product Development - the biggest
constraint in present handicraft sector
Adoption of new design, pattern and product development on the principle of
Focused Products and Focused Markets
Financial Assistance:
The amount shall be reimbursed to respective institutions with the following caps per
trainee enrolled:
S.No. Expense Head Maximum Permissible Assistance
a Designer Fee
2 International designer Rs. 60,000/- per designer per month
4 Domestic designer Rs. 30,000/- per designer per month
b Apprentice allowance Rs. 5000/- per participant per month
c Raw material Rs. 2000/- per participant
d Miscellaneous expenditure (stationery, Rs. 5000/- per participant
telephone, refreshments, publicity,
repair of machinery, videography,
etc.)
e Travel and logistics Rs. 5000/- per designer per month
Institutional charges Rs. 4000/- per participant
Rajiv Gandhi Shilpi Swasthya Bima Yojana (RGSSBY) aims at financially enabling the
artisans’ community to access to the best of healthcare facilities in the country.
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Eligibility to get the coverage
All craft persons will be eligible to be covered under the Scheme.
Except for OPD, the scheme shall align with RSBY in respect of remaining
parameters such as IP treatment and final limits decided per package for IP treatment by
Ministry of health and Family Welfare.
Implementation
In states where RSBY is already under implementation and States have consented, the
RGSSBY will be implemented by Ministry of health and Family Welfare. The GOI premium
contribution amount will be released by O/O DC (H) to State Nodal agencies upon receipt
of intimation from Ministry of health and Family Welfare.
In states or districts, where RSBY is not being implemented or where the States
have not consented, the scheme will be implemented by O/O DC (H) through the service
provider selected on basis of ‘open tender’ and will be subject to the guidelines issued by
DC (H). Export Promotion Councils will also be eligible for grants under this component.
In addition grants will also be sanctioned for specialized welfare projects based on DPR
to be approved by PAMC under Mega Cluster Projects.
(ii) Bima Yojana for Handicrafts Artisans (Aam Admi Bima Yojana (AABY)
The objective of “Aam Admi Bima Yojana (AABY) for Handicrafts Artisans” is to provide
life insurance protection to the Handicrafts Artisans.
18
All crafts persons will be eligible to be covered under the “AAB “Yojana for Handicrafts
artisans subject to the conditions laid down by LIC from time to time. The present age
between 18-59 years living below & marginally above the poverty line were provided
insurance cover in the erstwhile JBY as well as in the newly merged AABY.
The scheme details given are indicative and based on existing guidelines. These details
are subject to changes in scheme by LIC. However, in case LIC changes the premium or
share of respective stakeholders, then revised premium and shares will be applicable.
IMPLEMENTING AGENCY
LIC of India will be implementing the scheme and the Central Government share
of premium is released to the LIC directly for coverage of Artisans under the scheme.
It is estimated to cover 8 lakhs artisans under the insurance coverage during the 12 th
Five Year Plan.
Benefits and conditions
The benefits and conditions of the Scheme will be per the guidelines issued by LIC from
time to time.
Eligibility
Mastercraftmen who are the recipient of Shilp Guru Awards, National Awards or
Merit Certificates or State Awards in Handicrafts will be eligible for being
considered for financial assistance
The annual income of the artisan will not be Rs 30,000/- (Rs Thirty thousand
only) or more.
The applicant should not be a recipient of similar financial assistance from any
other source
The artisan should not be less than 60 years of age on the date of application.
Age may be relaxed in case of artisan with disabilities.
19
Nature of assistance
Assistance from the government may be either in the form of monthly allowance or
lumpsum grant or both. In no case however, shall the assistance exceed Rs. 3000/-
(Rupees Three Thousand only) per month.
Fund Disbursement
The monthly pension is disbursed through Assistant Directors in the field formation of
the O/o DC (H). Funds are placed with the respective field officers on yearly basis and
are disbursed on monthly basis to the eligible applicants.
The component is envisaged to alleviate the problem of collateral security or 3rd party
guarantee and remove impediments to flow of credit to handicrafts sector.
Eligibility
The handicraft artisans/ producers groups/Self Help Groups who are engaged in
manufacturing activities in Handicrafts Sector are covered under Credit Guarantee
Scheme.
Financial assistance
This guarantee cover is extended to all the lending institutions (Member Lending
Institutions) that are member of CGTSME.
To avail this facility CGTSME is paid following guarantee money:
● A onetime guarantee fee at specified rate of CGTSME (currently 1.5 per cent for
credit up to INR 2.00 Lakh) of the credit facility sanctioned, (comprising term loan
and/or working capital facility) to be paid upfront to the Trust by Office of the
Development Commissioner (Handicrafts).
● The annual service fee at specified rate of CGTSME (currently 0.75% per annum)
shall be paid by the O/o DC (H) within 60 days. This shall be calculated on the
outstanding amount to the debit of the borrower’s accounts covered under the
scheme as on March 31 of each year.
● The Scheme covers collateral free credit facility (term loan and working capital)
extended by Eligible Lending Institutions to artisans/ manufacturers involved in
manufacturing of Handicrafts upto INR 25 lakh per borrowing unit. The guarantee
cover of the CGTSI is available for eligible collateral free credits upto INR 25 lakh.
● The rate of interest and the duration of the loan shall be as per the norms of
lending banks i.e. the Member Lending Institutions of CGTSME.
● The coverage will be for three years.
● A provision for payment of service charge @ 5% of the total amount of guarantee
fee/ annual service charges remitted by the agency/ agencies every year to the
CGTSME, or actual, whichever is lesser will be paid to partners who facilitate
credit disbursal.
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NOTE: The scheme details are subject to changes to SIDBI’s CGTSMI scheme
Eligibility:
Handicraft artisan registered with the office of DC (H) subject to the guidelines
issued by DC (H) from time to time containing eligibility criteria, indentified crafts
and such other conditions as deemed fit.
Financial assistance
An interest subvention of 7% is provided for artisans.
Funding pattern:
The amount will be reimbursed to banks
The identified artisans will be given Photo Identity card. Agencies having necessary
infrastructure to undertake the work will be identified by this office.
Financial assistance
Assistance to the tune of INR 50/- maximum per card, software and hardware
training for this work will be provided by this office.
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Financial assistance and funding pattern:
The assistance will be upto a maximum of INR 10,000 per artisan depending on
the craft practiced. However in case of purchase of looms and furnaces etc. the
financial ceiling will be Rs.20, 000/- per unit including of required accessories.
Assistance shall be in the form of 100% grant-in-aid by O/o DC(H)
(viii) Shilp Guru Award, National Award & National Merit Certificate for
outstanding contribution in Handicrafts Sector.
The scheme is continued for implementation during the 12th Plan period with some
modification. The objective of the scheme is to give recognition to outstanding
craftspersons in the handicrafts sector. Under the scheme, Shilp Guru Awards, National
Awards and National Merit Certificates will be awarded to a craftsperson only once in a
lifetime to encourage master craftsperson’s to maintain excellence in craftsmanship and
keeping alive our old tradition. The component will be implemented by Hastkala
Academy or departmentally.
Eligibility
Outstanding craftsmen having vast experience in the handicraft sector
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participation of the various agencies dealing with promotion of Tourism, Culture, Food,
Processing Industry, etc., involving the tour operators, hotel operators in addition to
those dealing with handloom and handicrafts for broad basing and ensure utilisation of
facilities for long duration for management and day-to-day running of the same.
24
between implementing agency and CCIC/HHEC, as the case may be, will be
worked out and approved by the PAMC.
Land will be provided by implementing agencies and will be over and above the
60% contribution by the implementing agency
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(vii). Design Banks
The design bank is to be established with the objective of having a collection of
designs in electronic form and these digitized designs should be made available to
various users groups to enable them to diversify/innovate and also customize
products according to the domestic / international market needs. These banks shall
also provide details of availability of raw material, technology required, skilled human
resource and cluster from where these innovative products can be sourced/
produced.
Funding pattern
The financial ceiling for the total amount to be sanctioned for each Design Bank is
INR 60 lakh.
The assistance will be in the form of 100% assistance from Office of DC (H).
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3rd installment of INR 50 lakh will be released when the actual rotation of capital
has been 100% of the 2nd installment and at least a 5% increase in the raw
material corpus in terms of quantity has been achieved.
4th installment of INR 50 lakh will be released once the total capital rotation of
100% of the total grant sanctioned (2nd & 3rd installment) has been achieved. In
other words, if the value of raw material off take from the Raw Material Bank is
achieved to the tune of 100% of the amount of grant released and if the
earnings/ increase in the value of the corpus of raw material is 10% of the initial
corpus, the total grant provided will be considered as utilized if the total off take
after 4th installment becomes equal to 110% of the total grant released and
corpus has increased by 15%.
(xi) Technology Upgradation Assistance to Exporters/ Entrepreneurs
The objective is to extend the technological up gradation facility to
exporters/entrepreneurs. The facility center should be an infrastructure with modern
machinery including packaging machinery to support product, productivity, quality,
etc.
Eligibility
Exporters and Entrepreneurs.
Financial assistance and funding pattern
The maximum amount of funds to be sanctioned is INR 60 lakh for each facility
center.
The financial pattern would be based on 30:70 sharing between the Government
of India through the Office of the D.C (H) and the Exporters/ Entrepreneurs
respectively.
MOU between exporters/entrepreneurs and Government of India (GOI) will be
signed before release of funds.
(xii). Testing Laboratories
Under this scheme, in order to standardize / certify raw materials/products, it is
proposed to
set up new labs,
Strengthen existing labs.
The objective is to offer total Testing and Quality Assurance support for handicrafts
Financial assistance and funding pattern
The financial assistance would be in the form of Grant-in-aid with a ceiling of INR
100 lakh for each testing laboratory.
This grant would be in the form of 100% through the Office of the D.C (H) to the
eligible institute/ organization.
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The O/o DC (H) would provide assistance both towards improving infrastructure in
existing villages where a substantial number of craftsmen practicing similar crafts are
residing and also setting up of new villages where craftsperson can be rehabilitated.
The aim would be to select villages that can be connected with some tourist circuit to
ensure sale of products. Under this component office of DCH will fund
improvements/creation of infrastructure which would include roads, sewerage, water,
street lights, footpaths, housing cum workshed, shops and display areas. These will
be undertaken by the implementing agency and the craftsmen will be rehabilitated
with new worksheds and display areas. The display areas will be in form of stalls
where the artisans can sell their product. Each project will be approved by a
committee headed by the Secretary.
Financial assistance and funding pattern
The financial ceiling for the total amount sanctioned per unit will be INR 1000 lakh.
The funding pattern will be 70% by GOI and 30% by implementing agency and in
case of government agencies 100% by GOI.
Land will be provided by implementing agency and it will be over and above its
30% contribution, attributed in the funding pattern.
Mode of payment:
The funding pattern will follow 40:60 ratio, with 40% funded by government and
60% borne by implementing agency.
Land will be provided by implementing agency over and above its 60%
contribution, attributed in funding pattern.
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(xv) Construction of office buildings & revitalizing existing institutions,
restructuring of regional design and technical centres, setting up of Hastkala
Academy, construction of craft and office Complexes at Vasant Kunj and
Okhla and any other infrastructure to be created at departmental level
This is proposed to be undertaken as a departmental activity. Need based projects
would be devised for each activity i.e. either restructuring or revitalizing of the
existing institutions and / or field / regional offices.
Financial assistance and funding pattern
i) Each project will be approved on the basis of DPR by the competent authority
(Secretary (T) and HMOT for projects upto Rs 100 Cr.). The amount for each
project, the funding pattern, the components of funding etc. will be decided by the
competent authority on case to case basis.
ii) For projects involving outlay of Rs. 10.00 crores or above, there should be a Project
Approval & Monitoring Committee [PAMC] under the Chairpersonship of Secretary
[Textiles]. The PAMC will have representative from IFW, Planning Commission,
Ministry of Tourism and Ministry of Culture.
iii) For projects below Rs. 10.00 crores, the PAMC will be chaired by DC [HC]. The
PAMC should include representative from IFW.
iv) Apart from the eligible agencies mentioned against various components of the
scheme, the PAMC may also consider to include any other agency if it so deemed fit
as eligible implementing agency for any intervention under the scheme.
v) Evaluation studies to be got conducted and its findings to be submitted to PAMC
from time to time.
vi) GOI funding shall not be used for financing procurement of land.
Implementation strategy for Infrastructure projects.
For each Infrastructure projects under the components under infrastructure support, DPR shall
be prepared. Recurring expenditure will be borne by the implementing agencies. However, at
the time of appraisal, PAMC can allow funding for recurring expenditure for a maximum of two
years in deserving cases.
The timelines shall be decided based on the DPR submitted by the implementing agency.
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A (vi) MEGA CLUSTER
Mega cluster approach is a Drive to scale up the infrastructural and production chain
at Handicrafts clusters which have remained unorganized and have not kept pace with
the modernization and development that have been taking place so far. Consequently,
there has not been any addition of fresh impetus of development and optimum
realization of output in the handicrafts sector, which is not only the backbone of long
traditional heritage and cultural linkages.
Further, during implementation of the Mega Cluster projects it has been observed
that in certain cases interventions are required to be implemented at various places
throughout the country in a particular craft for generating employment through skill up-
gradation and also for increasing the market base of the craft within the country as well
as in the International market. In such cases the mega Cluster Scheme would be
flexible to reach all corners of the country wherever the selected craft exists. The
activities may vary from soft to hard interventions. In short, Mega Clusters can be
implemented in a fixed geographical area as well as different places throughout the
country in a particular craft or in a state where crafts are identified on block/cluster level.
The Mega Clusters will be taken up for development through Handicrafts Mega
Cluster Mission (HMCM) or through Central/State Corporations as and when announced
in Union Budget or as per requirement and as per the DPR prepared for the purpose.
The objective is to develop these two clusters with world-class infrastructure. The
guiding principle behind the design of clusters would be to create world-class
infrastructure that caters to the business needs of the local artisans & SMEs to boost
production and export. In brief, the main objective of setting up these clusters is to
assist the artisans & entrepreneurs to set up world-class units with modern
infrastructure, latest technology, and adequate training and HRD inputs, coupled with
market linkages and production diversification. SPV is designed in such a way, which will
have Standard Models of units of SSI and SME with infrastructure that is customized to
give a competitive edge and these centres have greater potential to become globally
competitive.
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The broad objectives of the proposed program are as follows:
i. To enhance the competitiveness of selected two clusters in terms of increased
market share and ensuring increased productivity by higher unit value realization
of the products.
ii. To ensure effective integration of scattered artisans, building their grass roots
enterprises and linking them to SMEs in the sector to build critical mass for
customized interventions and ensure economies of scale in operations. This will
build a supply system that is geared to responding to large-scale orders, adhering
to quality and product standardization, which are pre-requisites of global markets.
iii. To generate additional livelihood opportunities to the people through specific
intervention in segmental sub sector industry and increase the incomes to the
artisans/craftsmen already engaged in this sector.
iv. To provide requisite support/ linkages in terms of adequate infrastructure,
technology, product diversification, design development, raw material banks,
marketing & promotion, social security and other components that are vital for
sustainability of artisans/craftsmen engaged in the Handicrafts sector.
v. The core elements of the strategy for the proposed program are given below:
vi. Proactive and strong technical and program management assistance for capacity
building, designing of the interventions and their implementation, through a
competent professional agency.
2. Funding pattern
Funds to the tune of 3% (max.) of project cost shall be earmarked for establishing
baseline data / DPR against which performance can be compared at the end of the
project. The total fund requirement will be as per the DPR. The maximum duration of the
project will be three years. 50% of the approved project cost will be released as
advance. Second Installment @ 40% of the approved project cost will be released on
utilization of 70% of ist installment. The last 10% amount will be released as
reimbursement on completion of project and submission of utilization report etc.
3. Implementation Methodology & Framework
A project of this nature, which is need based, multi stakeholder driven, holistic and
outcome oriented, would require institutional structure and processes that are capable
and conducive to achieving the objectives of the program. The following will be the
methodology and process through which the project would be implemented: -
i. Undertaking a detailed diagnostic study of the cluster in order to identify the
needs, gaps and also developing base line reference data.
ii. Preparation of a Detailed Project Report (DPR) covering technical, financial,
institutional and implementation aspects, based on the diagnostic study. This
DPR would clearly establish the expected outcomes of each of the
interventions, which are measurable.
iii. Validation of the findings of the diagnostic study and the DPR by the key
stakeholders of the cluster including representative associations I federations
of the artisans, support institutions, service providers, State Government and
Central Government agencies.
iv. Approval of the DPR by PAMC under Ministry of Textiles.
v. Procurement of land, wherever needed for any of the interventions of the DPR,
by the SPV
vi. Implementation of the interventions as per the phasing mentioned in the DPR.
vii. Monitoring and evaluation of the implementation of the interventions against
the outcomes defined in the DPR.
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4. Project Approval and Monitoring Committee (PAMC)
The Detailed Project Report (DPR) shall be considered and approved by the Project
Approval and Monitoring Committee (PAMC). The PAMC shall accord further approvals
only after the comprehensive DPRs are in place. The implementation of the various
projects should also be reviewed periodically by the PAMC. The composition of the
PAMC would be:
Social:
i. Employment Generation;
ii. Better living standards for the existing artisans.
Economic:
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B. Marketing Support & Services.
The following interventions will be provided under marketing support:
(i) Domestic Marketing events
Eligibility:
The eligible organization includes Central and State Handicrafts Corporations, other
institutions and organizations under central and state governments,
COHANDS/EPCH/CEPC/IICT/MHSC /NCDPD, Apex cooperative Societies and National level
Apex Societies (registered under society act/ trust act, etc.) and National level Apex
Societies (registered under society act/ trust act, etc.) Societies and NGOs (registered
under society act/ trust act, etc.)
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The breakup of the available funds is as follows:
Expense head (for an event of 100 stalls for Maximum permissible assistance (INR)
period of 10 days )
class I class II class III
Space rental & Infrastructure including services 12,25,000 10,65,000 8,85,000
Publicity 200,000 170,000 1,55,000
TA (@ 2000 per participant) * 200,000 200,000 2,00,000
DA @ Rs. 100/- 1,00,000 1,00,000 1,00,000
Insurance 25,000 25,000 25,000
Service charges 50,000 40,000 35,000
Freight (@ 1000/- per person) 1,00,000 1,00,000 1,00,000
Misc including stationery, telephone, 1,00,000 1,00,000 1,00,000
refreshments, videography, documentation
charges etc
TOTAL 20,00,000 18,00,000 16,00,000
In case of GSB, 100% funds shall be in the form of grant-in-aid and will be sanctioned by
the Office of the Development Commissioner (Handicrafts) to the eligible organizations.
In case of Craft Bazaars
o The financial assistance to the extent of 75% of the approved cost (subject to a
ceiling specified in table above) will be considered and balance 25% will have to
be borne by the eligible organization. The same will apply to Craft Bazaars being
organized in North-East.
o In case of Craft Bazaars being organized outside NER, 90% of approved cost shall
be provided as assistance and 10% shall be contributed by the organization
subject to condition of 100% participation of artisans of NER with a provision of
relaxation upto 20% in deserving cases by DC (H) only if sufficient number of
artisans from the North-East are not available. .
Bazaars with less than 60 participants or if organized for less than 7 days will not be
admissible
The stalls will be provided free of charge to the artisans and organizations are free to raise their
contribution through gate money/publicity/food stalls etc.
The maximum permissible assistance will not exceed Rs 1800/- per participant per day in class-
I city, Rs 1600/- per participant per day for class-II city, and Rs 1400/- per participant per day
in class-III city.
In case of craft bazars the permissible assistance will be reduce to 75% of the limit indicated
above depending on the class of cities.
Mode of payment
First installment of 50% of the sanctioned amount will be released as advance and balance as
reimbursement on submission of audited statement of accounts of expenditure and
performance report of the event and its acceptance by the competent authority.
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(i)(a)(2)Exhibitions
Organizing large events with 100 artisans in a cities requires lot of capacity both financially and
logistically on the part of an organization and in the handicrafts sector which is fragmented and
rural in nature finding agency with such large reach among the artisans is not so easy. Therefore it
is proposed to provide financial assistance for smaller marketing events at local level to provide
marketing opportunity to group of artisans from the area. This will enable continuous availability of
marketing platform to the artisans/entrepreneaurs/SHGs without the limitation of logistics and
increase the penetration of the crafts to all parts of the country.
Duration and participation:
The exhibitions shall be organized for a period of 5 -7 days with participation from
minimum of 10 and maximum of 50 artisans
Eligibility
The eligible organization includes Central and State Handicrafts Corporations, other
institutions and organizations under central and state governments, COHANDS,
EPCH,CEPC, NCDPD, Apex cooperative Societies and National level Apex Societies
(registered under society act/ trust act, etc.) and National level Apex Societies
(registered under society act/ trust act, etc.) Societies and NGOs (registered under
society act/ trust act, etc.)
Financial assistance and funding pattern
The financial ceiling for exhibitions will be based on classification of towns:
o Class I (cities with population above 5,000,000): INR 8 Lakh
o Class II (cities with population between 5,000,000 and 1,000,000): INR 7 Lakh
o Class III (cities with population less than 1,000,000): INR 6 Lakh
The breakup of financial assistance is as follows:
Expense head (50 stalls for a period of Maximum permissible
7 days) assistance (INR)
Class I Class II Class III
Space rental & Infrastructure including
services 5,25,000 4,40,000 3,65,000
Publicity 1,30,000 120,000 100,000
TA (@ 2000 per participant) * 1,00,000 1,00,000 1,00,000
DA @ Rs. 100/- 50,000 50,000 50,000
Insurance 10,000 10,000 10,000
Service charges 25,000 20,000 15,000
Freight (@ 1000/- per person) 50,000 50,000 50,000
Misc including stationery, telephone, 10,000 10,000 10,000
refreshments, videography,
documentation charges etc
TOTAL 9,00,000 8,00,000 7,00,000
* In case of artisans from North East TA is proposed to be increased to Rs.
3,000/- per artisans.
o The financial assistance to the extent of 75% of the approved cost (subject to a
ceiling specified in table above) will be considered and balance 25% will have to
be borne by the eligible organization. The same will apply to Exhibitions being
organized in North-East.
o In case of Exhibitions being organized outside NER, 90% of approved cost shall be
provided as assistance and 10% shall be contributed by the organization subject
to condition of 100% participation of artisans of NER with a provision of relaxation
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upto 20% in deserving cases by DC (H) only if sufficient number of artisans from
the North-East are not available. .
The stalls will be provided free of charge to the artisans
Exhibitions with less than 10 participants or if organized for less than 5 days will not be
admissible
The maximum permissible assistance will not exceed Rs 2300/- per participant per day in class-
I city, Rs 2000/- per participant per day for class-II city, and Rs 1700/- per participant per day
in class-III city.
Mode of payment
First installment of 50% of the sanctioned amount will be released as advance and balance as
reimbursement on submission of audited statement of accounts of expenditure and
performance report of the event and its acceptance by the competent authority.
Eligibility:
Departmental activity
Financial assistance and funding pattern
The admissible limits for participation are as follows:
TOTAL 10,50,000
* In case of artisans from North East TA is proposed to be increased to Rs. 3,000/- per
artisans.
Note: In case the space is being hired from Government organizations, actual expenditure
may be considered.
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Mode of payment:
100% advance to be placed with the field office.
The space rent will be paid by the field office directly to the organizer of the event.
Mode of payment:
In case of handicraft fair the first installment of 50% of the sanctioned amount will be
released with the sanction and balance as reimbursement on submission of actual bills
and performance report of the event and its acceptance by the competent authority.
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The admissible components vary for different eligible participants as follows:
(ii) (b) Folk Craft Festival of India/ Stand Alone Shows/ road shows
The folk craft festival of India/road shows /catalogue shows/thematic
exhibitions/stand alone shows/ special events/ programmes shall be organized in
India and abroad to create promote the products and create a brand image for Indian
handicrafts in international markets.
Duration and participation:
Maximum of 20 participants for the duration of the event.
The participants include Shilp Gurus/National Awardees/National Merit Certificate
Holders, representative of SHG Federation, entrepreneurs and exporters.
Financial assistance and funding pattern
The funding shall be on actual subject to a maximum of INR 10 lakhs as fixed cost
and INR 10 lakhs per day maximum for the duration of the event
The funding will be in the form of 100% grant-in-aid from O/o DC(H)
The eligible agency shall receive assistance towards Space rent & infrastructure
for participants, Publicity Airfare for artisans, TA of coordinating officer, TA/DA
and expenditure on boarding and lodging, freight, Local conveyance, Misc
including expenditure for buyer seller meet
The financial assistance in respect of Shilp Gurus/National Awardees/NMC
Holders/SHG Federations/Entrepreneurs/Exporters shall be as in component 1.2.1.
In case of SHG Federations/ exporter/entrepreneurs only space rent will be
provided.
To monitor the impact assessment of such participations, one officer of office of
DC (H) can also be deputed to the program.
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Funding pattern
The financial assistance is considered for TA/ DA (upto 5 persons), their boarding/
lodging, local conveyance, desk research/ collection of sample in India & abroad,
procurement of product catalogue, tools and implements, technology,
documentation/ report writing, Misc etc
The assistance will be in the form of 100% grant-in-aid from O/o DC(H) subject to
a ceiling of INR 20 lakh per study
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(ii) (f) Compliance, social and other welfare measures
This sub component covers assistance for
Compilation of product specific common compliance code for use in International
market and assist them in attaining standardized certification
To create awareness about compliance among exporters/artisans/Manufacturers
and assist them to meet the compliance request
Legal fees for contesting cases and to take safeguards against issues like
countervailing duties, which will also include hiring of lobbyist, journey of officials
of Export Promotion Councils.
Any initiatives including labeling initiative to counter problems arising out of
national and international laws and regulations and standard in the areas of
environmental and social factors in exports including hiring of experts and
consultants
Any other measures including welfare measures as well as deputing delegations of
members and officers to resolve labour related or other social problems being
faced in export of Handicrafts.
Financial assistance and funding pattern
Maximum provision of Rs. 1.00 cr per organization/per acidity.
Assistance is based on actual need and requirement and is considered on merit of
the proposal.
Grant-in-Aid will be 100% in case of Export Promotion Councils. In case of
individuals, the expenditure will be shared between GOI and individuals in the
ratio of 70:30.
Eligibility:
Central and State Handicrafts Corporations, COHANDS, EPCH, CEPC, NCDPD,
TPOs, other institutions and organizations under central and state governments,
and Apex cooperative Societies
NGOs (registered under society act/ trust act, etc.) and federation of SHG’s
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Financial assistance and funding pattern
Financial assistance to the tune of INR 15 Lakh will be permissible towards buyer
seller meet. The financial break-up is as follows:
Expense head (for 3 days with participation from 50 Cost
buyers and 50 artisans) (INR)
Space rental and Infrastructure including services like water, 2,50,000
electricity, etc.
TA @ 10,000 per buyer (subject to actual) 5,00,000
Stay for buyers (@ 3000 per day per buyer) 4,50,000
TA for artisan (@ 1500 per artisan ) 75,000
Freight for artisan (@ 500 per artisan ) 25,000
Publicity 1,20,000
Insurance 20,000
Misc 60,000
TOTAL 15,00,000
The financial assistance to the extent of 80% of the approved cost (subject to a
ceiling specified in table above) will be contributed by O/o DC(H) and balance
20% will borne by the eligible organization.
In case of NER, 90% of approved cost shall be provided as assistance and 10%
shall be contributed by the organization.
In case of Departmental Activity, 100% funding by Government.
Mode of payment
The first installment of 50% of the sanctioned amount will be released as advance
and the balance as reimbursement on submission of bills and the event report
containing the pictures of the event.
(iii)(b) Buyers sellers meet abroad and reverse buyer seller meet in India
Since small exporting units cannot afford to participate in International Fairs
organized in India & abroad on their own, it is proposed to fund the umbrella
organizations mentioned in the eligibility clause for organizing International
Handicrafts Trade Fair/buyers sellers-meets in India and abroad. To monitor the
impact assessment of such participations, one Officer of the Office of DC
(Handicrafts) can also be deputed to the programme.
Duration of event:
The meet will be organized for up to 3-5 days
Financial Assistance and funding pattern
The funding shall on actual subject to a maximum INR 50.00 Lakh
The financial assistance will be permissible towards space rent, interiors, TA,
Publicity, Boarding and Lodging, Documentation and miscellaneous.
The financial assistance to the extent of 100% of the approved cost (subject to a
ceiling specified above) will be considered.
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(iv) Marketing workshops
Marketing workshops will be organized at National/State/Local level departmentally to
discuss various problems faced in handicrafts sector with artisans and experts in
relevant fields like designer, technologist, exporters, buyers and financial institution
etc.
Eligibility:
Departmental Activity
Financial assistance and funding pattern:
The financial parameters for such workshop will be as under:
Event Minimum Number. maximum
of participants permissible
assistance (INR)
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(vii) (a) Publicity via print and electronic media
Publicity and Brand promotion shall help highlight Indian handicraft products as quality
products and thus boost sales in India and abroad.
Further brand promotion shall also be targeted through the same component. Under this
programme comprehensive designing of large scale media campaign will be carried out
to promote the brand. The campaign shall involve both digital (television, online and
audio) and physical (press, billboard, in-store and street) advertising. It shall be floated
across various locations within and outside India; Advertising of the brand at
international and national fairs and events shall be carried out adopting a brand centric
approach and build on the same to increase sales of handicrafts by increasing brand
recall.
Financial assistance will be considered to the eligible organizations for publicity for the
following activities:
Large scale campaign to promote Handicrafts and the brand in lines of ‘Incredible
India’
production of video films on various theme
general advertisement and publicity in print and electronic media
Special supplements in print and electronic media in connection with events like
National Award etc.
bringing out posters/hoardings/ other advertisement panels on handicrafts
official newsletters/ directory/souvenirs/calendars for publicity
printing of hand book of scheme/procedures of the Office of DC (Handicrafts)
Printing of yearly reports required under GFR to be placed before the Ministry/
Parliament etc.
purchase of books/ periodicals/ journals for the departmental library
Subscription for news papers/Magazines etc.
hoarding at strategic locations in the cities
blow-ups banners
bus back panels
kiosks/Railway/State transport advt panels and other such methods
publicity through IT related medium like dedicated web sites
catalogues shows on the internet and fashion show
publicity banners on the home pages of web sites
making of CD-ROMs for various marketing events and launching of the same on
Internet for enlightening/ awareness of the customers about the venue, name of
artisans and their artifacts for direct sales
printing of books/manuals/crafts directories/languishing crafts
audio visual publicity by screening of films on handicrafts at places like airport
lounges, Doordarshan/other private channels and screening of these films in various
departmental Crafts Bazaars/ Melas like Dilli Haat, Surajkund etc.
printing of publicity and propaganda material for incoming/ outgoing exhibitions to be
mounted as per Cultural Exchange Programmes and other events on recommendation
of Indian Embassies
printing/publication of brochures/catalogues/ folders/ state maps on handicrafts as
part of the marketing mix and to supplement the marketing efforts of Central/State
Corporations and Apex Bodies as per the prescribed guidelines
creating a brand image through hiring brand ambassadors
Organising cultural events through hiring off/tie-up with reputed designers and
organizing shows for the products
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Design of Logo to represent ‘Handicraft brand’
Any other activity considered relevant for the purpose.
Financial assistance and funding pattern
The financial assistance of maximum INR 2.00 crore per activity shall be
provided under this component will be 100% Grant-in-Aid for eligible
organization. In case that the office of DC (H) undertake the activity
departmentally there will be no limit on the expenditure.
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(C) Research and Development.
The following interventions will be carried out under this component:
(i). Surveys & Studies on different topics
(ii). Financial Assistance for preparation of legal, para legal, standards, audits and other
documentation leading to labeling/certification.
(v). Registration of Crafts under Geographical Indication Act & necessary follow up on
implementation.
(vi). Assisting handicrafts exporters in adoption of global standards and for bar coding,
including handicrafts mark for generic products.
(vii). Financial Assistance for taking up problems/issues relating to brand building and
promotion of Indian handicrafts.
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II. Financial Parameters
a) Eligible financial assistance for (i). [a to f]
S.N Head Maximum Maximum permissible
o. No. amount
(i) Project Leader 1 @Rs. 40,000/- p.m.
(ii) Senior Research 2 @Rs. 25,000/- p.m.
Expert
(iii) Junior Research 2 @Rs. 15,000/- p.m.
Fellow
(iv) Investigator 3 @Rs. 12,000/- p.m.
[Graduate]
(v) Computer Operator 2 @Rs. 10,000/- p.m.
(vi) Documentation & -- Rs. 1,00,000/-
Videography
(vii) T.A./D.A. -- @Rs. 18,000/- p.m.
(viii) Miscellaneous -- 10% of the total cost
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