The Scheme intends to promote entrepreneurs to set up new handloom production unit as proprietorship/ Partnership/ company/ self-help group and to introduce new products, new designs and in turn help the weavers to produce value added items in handloom sector. As per the Scheme of Margin Money Assistance, training and Marketing support are being given to entrepreneurs to set up their own handloom manufacturing units.
Features of Scheme
- Individual entrepreneurs, Partnership firm, private limited companies, start –up units etc. can avail the benefit of this scheme for projects for manufacturing and value addition of handloom products.
- The unit which does not take up weaving should be a MSME with valid Udyog Aadhar, undertaking value addition in handloom products.
Priority sectors
- Own Land
- Land on lease will be considered only if the lease period is not less than 15 years.
- Land in DA/DP under DIC, KINFRA, KSIDC and land /shed is MIE also will be considered.
Eligibility
- The beneficiaries should have studied up 10th Std and have knowledge in Handloom Field.
- Preference will be given to those having 10 years of experience in handloom weaving, Diploma/Degree in Handloom or Textile Technology, passed two years certificate course of IIHT, Kannur, Diploma or Post Diploma or Degree in Fashion designing
Financial Assistance
40% of the Fixed capital investment limited to Rs. 4 lakhs and 30% of the working capital requirement limited to 1,50,000/- will be Government assistance. Remaining fund should raise by the entrepreneurs by way of loan from commercial bank/ Financial Institution. The applicant should raise at least 10% of the project cost as own share.
How to apply
Application can be submitted online or in person to the DIC concerned with all supporting documents including the 5 days training certificate from IIHT with the recommendation from the financial institution.
Sanctioning Authority
Director of Handloom & Textiles
Other points
If the entrepreneur /entrepreneurs fail to Utilize the Margin Money Grant or Utilized partially even after one year of the disbursement of Margin Money Grant, the unutilized Margin Money will be refunded to Government account is lump with 72% interest if the party fails to make refund, the amount shall be recovered under RR Act. If the party mis utilize the fund, the entire unutilized amount with 12% of the interest from the date of release to the date of refund shall be refunded to the Government account.
- The fixed asset acquired with the assistance under this scheme, should not be transferred, sold or alienated for 5 years from the date of sanction of the assistance without prior permission from sanctioning authority.
- The progress of implementation as well as functioning of the unit shall be periodically inspected by General Manager, District Industries Centre concerned / ADIO of concerned Taluk /Handloom Inspector os concerned circle or any other authorized by the Directorate of Handloom & Textiles or General Manager, District Industries Centre of the concerned district.