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Comprehensive Handicrafts Cluster Development Scheme

CHCDS Β· Ministry Of Textiles

Avatar photoNavin 15 Oct 2026
Comprehensive Handicrafts Cluster Development Scheme
In short

The Comprehensive Handicrafts Cluster Development Scheme supports artisans and craftsmen in India by providing financial aid and infrastructure development. Applications are accepted offline and there is no last date for submission.

At a glance

Scheme levelCentral
Scheme typeCentral Sector Scheme
Benefit typeComposite
StateAll India
Ministry / DepartmentMinistry Of Textiles
Scheme forInfra
Application modeOffline
Last dateOngoing (no last date notified)
DBT (direct bank transfer)No
Project duration3 years, extendable by 1 year
Disbursement methodFunds released in installments
Designer engagement feeRs. 55,000 per month for up to 3 years
Monitoring periodInfrastructure monitored for up to 10 years after completion

Who can apply (quick check)

  • πŸ‘€All genders
  • πŸŽ‚Age 18 to 80 years
  • πŸ“Offline

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

The Comprehensive Handicrafts Cluster Development Scheme aims to uplift artisans and craftsmen in India. It is run by the Ministry of Textiles. The scheme provides financial assistance, infrastructure support, and skill development.

This initiative is crucial for enhancing the livelihoods of artisans and improving their market access. It helps in creating a robust handicrafts ecosystem.

By integrating scattered artisans, the scheme fosters strong grassroots enterprises and generates more employment opportunities.

Benefits: what you get

  • Financial aid based on Detailed Project Report (DPR)
  • Up to Rs. 5,00,000 or 2% of project cost for DPR preparation
  • 3% of total project cost for Project Monitoring Unit (PMU)
  • Support for infrastructure like Common Facility Centres and Design Centres
  • Monthly designer engagement fee of Rs. 55,000 for up to 3 years

Funds are released in installments based on project milestones and utilization certificates. The first installment is 50% of the approved project cost.

Eligibility: who qualifies

  • Applicant must be an implementing agency like a handicrafts corporation or cooperative
  • Must have experience in the handicrafts sector
  • Must prepare a Detailed Project Report based on cluster needs
  • Must cover more than 10,000 artisans or as available in the cluster
  • Must ensure land ownership free from litigation
  • Must ensure a cluster-based approach in a specific area

Who is not eligible

  • Applicants submitting incomplete reports or proposals are not eligible
  • Applicants with land litigation issues are not eligible

Documents required

  • Detailed Project Report (DPR)
  • Baseline Survey Report
  • Land Ownership Documents (if applicable)
  • Registration Certificate of the Agency
  • Memorandum and Articles of Association (MOA/AOA)
  • Last 3 Years' Annual Reports
  • 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

How to apply (step by step)

  1. Identify handicraft clusters through field surveys and viability studies.
  2. Conduct a diagnostic study to assess needs and gaps.
  3. Prepare a Detailed Project Report (DPR) including all necessary aspects.
  4. Validate the DPR with stakeholders.
  5. Submit the DPR to the Project Approval and Monitoring Committee (PAMC).
  6. Wait for project approval and fund release based on evaluation.
  7. Implement the approved project and submit Monthly Progress Reports.
  8. Complete the project and submit a utilization report.

How to check status and payment

To check the application or payment status, you can contact the Ministry of Textiles or visit their office. Keep your application number handy for reference.

Examples: who qualifies and who does not

Example 1: A state handicrafts corporation is eligible because it meets all requirements, including experience and covering more than 10,000 artisans.

Example 2: A cooperative society is eligible as it has prepared a valid DPR and owns land free from litigation.

Example 3: An individual artisan is not eligible because the scheme requires an implementing agency to apply.

Common mistakes that get applications rejected

  • Submitting incomplete application forms or DPRs. can lead to rejection.
  • Not having the required number of artisans may disqualify the application.
  • Land ownership issues can result in ineligibility.
  • Failure to validate the DPR with stakeholders may cause delays.
  • Missing necessary documents can lead to application rejection.
  • Not following the prescribed application process can cause issues.

Frequently asked questions

Who benefits from this scheme?

Artisans, craftsmen, and cluster-based enterprises benefit from the scheme.

What type of support does the scheme provide?

It offers financial, infrastructural, technical, and marketing support.

What is the maximum financial support for DPR preparation?

The maximum support is Rs. 5,00,000 or 2% of the project cost, whichever is less.

How many artisans are required in a cluster?

More than 10,000 artisans are needed in a cluster.

What is the duration of the project?

The project duration is 3 years and can be extended by 1 year.

Is skill development included in the scheme?

Yes, training and skill upgradation are key components.

How are funds released?

Funds are released in installments based on project progress.

What types of infrastructure are developed?

Infrastructure like Common Facility Centres and Design Centres are developed.

tsmpb.in is not affiliated with any government department. Apply only on the official portal and never pay anyone for an application.

First draft prepared with editorial AI tools; every fact verified against the official notification and rewritten by our team.

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