Government Subsidy For Handloom Sector

The Handloom sector is one of the largest unorganized sectors and constitutes an integral part of the rural and semi-rural livelihood. As per the 4th Handloom Census conducted by Government of India in 2018, Maharashtra has 3354 handlooms in the State which are being run by 3509 handloom workers. handloom subsidy scheme

Incentives For Handloom Sector

The State would extend benefits as provided by the National Handloom Development Programme (NHDP) scheme of Central Government. There are various components of the scheme including cluster development programme, handloom marketing assistance with special emphasis on uncovered and talented weavers, infrastructure and special projects including Indian Institute of Handloom related projects, Mega Handloom cluster, Concessional credit/ Weavers MUDRA loan, Handloom Weavers Welfare and other miscellaneous component.

Urban Haats

The scheme for setting up Urban Haats at prime locations in the State to encourage and facilitate authentic weavers and crafts of Maharashtra. Strategic location in the State will chosen to be developed as Urban Haat providing suitable ambience, with green belts in and around, with sufficient open spaces. The cost of the project up to INR 800 lakh would be financed as below

Government (Central and State)Sharing patternTotal Amount
Central Government80%INR 640 lakh
State Government20%INR 160 lakh and above

Special, infrastructure & Indian Institute of Handloom technology (IIHT) related projects- To set up project/ product development / diversification, improving productivity/ quality of handloom products, value addition of handloom products/ marketing to meet challenges of dynamic market. Land cost shall borne by the State Government and will not be part of project cost. Funding will be in the ratio 80:20 (Government of India share and State Government share).

State component in Raw Material Supply Scheme (RMSS)- Government of India provides 15% price subsidy on yarn (through DBT to linked bank account) with quantitative restrictions. The state government shall provide an additional 15 percent price subsidy on yarn. Total 30% (15% Government of India share and 15% State share) price subsidy will be available on cotton hank yarn, domestic silk, woolen and linen yarn and blended yarn of natural fibers with quantity restrictions.

Handloom Weavers’ Welfare Scheme: The Government of India’s Handloom Weavers’ Welfare Scheme (HWCWS) aims to provide universal and affordable Social Security to the handloom weavers/workers across the country.

 The Pradhan Mantri Jeevan Jyoti Bima Yojana offers life insurance cover for death, due to any reason and is eligible for all handloom weavers/workers in the age group of 18-50 years. 4.2 Benefits- INR 2 Lakh will be payable on beneficiary’s death due to any reason. The State Government will bear the annual premium of INR 180/- under the ‘State Govt/Beneficiary’s share’. The annual premium of INR 330/- will shared as under

Central Government shareINR 150/-
State Government shareINR 180/-
Total PremiumINR 330/-

Scheme for Supply of Free Electricity to Handloom Weavers households Handloom weaver households will be provided free electricity up to 200 units per month.

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