The objective is to develop Mega Handloom Clusters that are located in clearly identifiable geographical locations that specialize in specific products, with close linkages and inter dependents amongst the key players in the cluster by improving the infrastructure facilities, with better storage facilities, technology up-gradation in pre-loom/on-loom/post-loom operations, weaving shed, skill up-gradation, design inputs, health facilities etc. which would eventually be able to meet the discerning and changing market demands both at domestic and at the international level and raise living standards of the millions of weavers engaged in the handloom industry.
The quantum of assistance should be need based depending on the requirement of the cluster, the scope of the activities envisaged in the cluster development project, technical, financial and managerial capacity of the cluster development organization, level of maturity and track record of the cluster etc. The maximum permissible Central cost for each cluster will not exceed Rs.40.00 crore per cluster for a period of 5 Years. This is normally provided as grant. However, part of it can be considered as equity on case to case basis for individual project/s or where it assists in financial closure. Scheme of other Ministries like MSME, Ministry of Rural/Urban Development, Commerce etc. shall be sourced to fund the project.
MSMEs operating in the Handloom Sector are primarily eligible under the scheme. The clusters as per the provisions mentioned in the document are eligible for the grant. The duration of the entire project is 5 years.
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