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40% Subsidy On Hank Yarn, Dyes & Chemicals Scheme

40SHYDCS

Published: Oct 2026

7 min read

Reviewed by Navin, Editor · First published: 10 Oct 2026

40% Subsidy On Hank Yarn, Dyes & Chemicals Scheme
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Written by Navin · Editor, tsmpb.inUpdated: 17 Oct 2026 · How we verify scheme facts

About this business scheme

The "40% subsidy on Hank Yarn, Dyes & Chemicals Scheme" is a Subsidy Scheme by the Dept. of Handlooms & Textiles, Govt. of Andhra Pradesh. The assistance will be in the form of Grant from the State Govt. The subsidy will be available only on purchases / procurements from NHDC & APCO.

The "40% subsidy on Hank Yarn, Dyes & Chemicals Scheme" is a Subsidy Scheme by the Department of Handlooms & Textiles, Government of Andhra Pradesh. The entire assistance under the scheme will be in the form of Grant from the State Government. The scheme is operative from 29th April 2011. The subsidy will be available only on purchases / procurements from NHDC & APCO. The amount sanctioned will be credited directly to the members bank account of the concerned primary weavers cooperative societies.

Benefits at a glance

Scheme name40% Subsidy On Hank Yarn, Dyes & Chemicals Scheme (40SHYDCS)
Launched byDepartment of Industries and Commerce
Benefit typeIn kind (goods, services or support, not cash)
CategoryBusiness
Level / StateState ยท Andhra Pradesh
Official portalaphandtex.gov.in (link at the end of this page)

Key facts

Scheme forIndividual
Application modeOffline
Last dateOngoing (no last date notified)
AgeNo lower limit to 80 years

Who can apply (quick check)

  • ๐Ÿ‘คAll genders
  • ๐ŸŽ‚Age 0 to 80 years
  • ๐Ÿ’ผArtisans, Spinners & Weavers
  • ๐Ÿ“Offline

Quick check from official data. Full conditions are in the Eligibility section.

What you receive

  1. 40% subsidy on the purchases / procurements of Hank Yarn, Dyes & Chemicals from NHDC & APCO.
  2. The 75% amount will be credited directly to the members bank account of the concerned primary weavers cooperative societies as production bonus basing on the wages earned by them.
  3. The remaining 25% amount may be utilized by the societies for giving rebate on sales or any other production related purpose.

Who qualifies

  1. The subsidy will be available only on purchase / procurement of yarn from NHDC, Yarn Deports sanctioned by NHDC and APCO for self-consumption of Handloom Weaver Cooperative Societies for providing work to weaver members.
  2. The subsidy will be allowed only on the Hank yarn purchased from the APCO & NHDC and its depots and utilized for the production on Societies, account during the quarter.
  3. The claims for subsidy shall be submitted by the Weavers Cooperative Societies in the prescribed proforma on quarterly basis during the financial year with in 15 days from the end of the respective quarter.
  4. The claims for subsidy in complete shape should reach Head Office with in 30 days from the end of the Quarter.

NOTE 1: The Weavers Coop Societies shall NOT claim any subsidy on the Yarn, Dyes and Chemicals purchased from private yarn dealers, Mills etc.

NOTE 2: The Weavers Coop. Societies should NOT claim any subsidy on Yarn, Dyes & Chemicals even if purchased from APCO or NHDC, but not utilized for production of cloth by way of issue of yarn and sold to non-members.

Who is not eligible

  1. The Weavers Cooperative Societies shall not claim any subsidy on the Yarn, Dyes and Chemicals purchased from private yarn dealers, Mills etc.
  2. The Weavers Coop. Societies should not claim any subsidy on Yarn, Dyes & Chemicals even if purchased from APCO or NHDC, but not utilized for production of cloth by way of issue of yarn and sold to non-members.

Papers to keep ready

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Registration walkthrough

Offline

Application:

Step 1: The claims for subsidy shall be submitted by the Weavers Cooperative Societies to the Assistant Director (H&T) in the prescribed proforma on quarterly basis during the financial year within 15 days from the end of the respective quarter.

Step 2: The AD(H&T) after scrutiny shall recommend the claims with in next 15 days.

Step 3: All claims in complete shape should reach Head Office with in 30 days from the end of the Quarter.

NOTE: Appropriate cut will be imposed on bleated claims.

Disbursal of the Subsidy:

  1. The amount sanctioned as 40% Yarn subsidy, 75% amount will be credited directly to the members bank account of the concerned primary Weavers Cooperative Societies as production bonus basing on the wages earned by them.
  2. The societies may utilize the remaining 25% amount for giving rebate on sales or any other production related purpose with effect from 1st Dec 2016.

Frequently asked questions

Which Department Manages This Scheme?

This scheme is managed by the Department of Handlooms & Textiles, Government of Andhra Pradesh.

Is This Scheme State Sponsored Or Centrally Sponsored?

This scheme is a 100% State Sponsored Scheme.

Where Can I Find The Link To The Original Scheme Guidelines?

The Scheme Guidelines can be found at this link - https://www.aphandtex.gov.in/open_record.php?ID=136

Where Can I Find The Link To The Amended Scheme Guidelines?

The Scheme Guidelines can be found at this link - https://handlooms.ap.gov.in/documents/G_O_55%20Yarn_subsidy.PDF

What Is The Full Form Of NHDC?

The Full Form of NHDC is "National Handloom Development Corporation Limited".

What Is The Address Of NHDC?

The address of NHDC is: Vikas Deep, 22, Station Road, Chitwapur Bhuiyan, Udaiganj, Husainganj, Lucknow, Uttar Pradesh - 226 001.

What Is The Full Form Of APCO?

The Full Form of APCO is "Andhra Pradesh State Handloom Weavers Cooperative Society".

Does This Scheme Accept Online Applications?

No, this scheme only accepts offline applications. The claims for subsidy shall be submitted by the Weavers Cooperative Societies to the Assistant Director (H&T) in the prescribed proforma.

What Is The URL Of The Website Of Department Of Handlooms & Textiles, Government Of Andhra Pradesh.?

The URL of the website of Department of Handlooms & Textiles is https://www.aphandtex.gov.in/home.php.

Is There Any Application Fee?

No. The entire application process is completely free of cost.

Is There A Percentage Of Slots Reserved For Female Applicants?

No, there is no reservation of slots based on the gender of the applicant.

For What Purposes Can The Amount Of Subsidy Be Utilized?

The amount of Subsidy should be utilized for:
1. as production bonus basing on the wages earned by the members of the concerned primary Weavers Cooperative Societies.
2. rebate on sales or any other production related purpose.

What Percentage Of The Amount Of Subsidy Can Be Utilized As Production Bonus Basing On The Wages Earned By The Members?

75% of the amount of subsidy can be utilized as production bonus basing on the wages earned by the members of the concerned primary Weavers Cooperative Societies.

What Percentage Of The Amount Of Subsidy Can Be Utilized As Rebate On Sales Or Any Other Production Related Purpose?

25% of the amount of subsidy can be utilized as rebate on sales or any other production related purpose with effect from 1st Dec 2016.

What Is The Full Form Of AD (H&T)?

The Full Form of AD (H&T) is Assistant Director (Department of Handlooms & Textiles).

Is There A Deadline For The Submission Of The Claims For Subsidy?

Yes, the claims for subsidy shall be submitted by the Weavers Cooperative Societies to the Assistant Director (H&T) in the prescribed proforma on quarterly basis during the financial year within 15 days from the end of the respective quarter.

Is There A Deadline For The AD(H&T) For Recommending The Claims?

Yes, the AD(H&T) after scrutiny shall recommend the claims with in next 15 days.

What Shall Be The Case If The Claims Are Found To Be Bleated?

Appropriate cut will be imposed on bleated claims.

Since When Is This Scheme Under Operation?

The scheme is operative from 29th April 2011.

Can The Weavers Coop Societies Claim Any Subsidy On The Yarn Purchased From Private Yarn Dealers?

No, the Weavers Coop Societies shall NOT claim any subsidy on the Yarn, Dyes and Chemicals purchased from private yarn dealers, Mills etc.

By When Should The Claim For Subsidy Reach Head Office?

The claims for subsidy in complete shape should reach Head Office with in 30 days from the end of the Quarter.

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