🧵 Comprehensive Handicrafts Cluster Development Scheme (CHCDS)

Launched by: Ministry of Textiles, Government of India
Implementing Agency: Office of the Development Commissioner (Handicrafts)
Scheme Category: Cluster Development & Infrastructure Scheme
State / UT: All India
Beneficiary Type: Artisans, Producer Companies, Handicraft SMEs, Cooperatives
Subsidy Type: Grant-in-Aid / Infrastructure Funding
Application Mode: Online and Offline

🏛️ About the Scheme

The CHCDS is designed to develop world-class infrastructure and production chains in handicraft clusters across India.
It addresses the unorganized nature of the sector by supporting modernization, technology upgradation, design development,
and brand promotion.

The scheme promotes cluster-based development through common facility centers, raw material banks, design centers,
testing labs, and marketing hubs to make Indian handicrafts globally competitive.

🎯 Objectives

1. Build globally competitive clusters with modern infrastructure.
2. Enhance productivity, quality, and export potential of handicrafts.
3. Generate employment and sustainable livelihoods for artisans.
4. Integrate artisans and small entrepreneurs into organized production networks.
5. Promote innovation, branding, and design diversification.

💰 Payout & Benefits

All payments are made via Direct Benefit Transfer (DBT) to the artisan’s registered bank account.

👥 For Whom is the Scheme

• Registered handicraft artisans, master craftspersons, and producer groups.
• Self Help Groups (SHGs) and cooperatives in handicraft clusters.
• Producer Companies supported by Office of DC (Handicrafts).
• Government bodies, NGOs, and autonomous institutions working in craft development.

🚫 Who Cannot Apply

• Private individuals without artisan registration or cluster affiliation.
• Organizations without prior experience in the handicrafts sector.
• Entities not recommended by State or Regional Handicraft Offices.
• Non-registered or profit-only commercial enterprises.

✅ Eligibility Criteria

• Implementing agencies must have:
  • Proven experience in cluster or handicraft development.
  • Minimum turnover of ₹1.5 crore for 3 consecutive years (except government agencies).
  • Legal status under Societies Act, Trust Act, or Companies Act.
• Artisans must have valid Pehchan Card (Artisan ID).
• Projects must serve at least 10,000 artisans per cluster or craft region.

🧾 Documents Required

1. Detailed Project Report (DPR) and Baseline Survey.
2. Land ownership or lease deed (minimum 10 years).
3. Organization registration documents and audited financials (3 years).
4. Recommendation from DC (Handicrafts) regional office.
5. List of beneficiary artisans with Pehchan IDs.
6. Cost estimates verified by Chartered Engineer.
7. Feasibility report certified by recognized bank or institution.

Online

• Visit https://handicrafts.nic.in
• Select “Apply for CHCDS/NHDP” under the schemes section.
• Fill in project details, upload DPR, and attach supporting documents.
• Submit digitally signed proposal through the online portal.

Offline

• Collect application format from Regional Office of DC (Handicrafts).
• Prepare DPR as per guidelines with baseline survey.
• Get recommendation from the State Handicraft Department.
• Submit completed application physically at DC (Handicrafts) office or via State Government.

Benefits – Comprehensive Handicrafts Cluster Development Scheme (CHCDS)

🌟 1. Infrastructure Development for Artisans

• Establishment of Common Facility Centres (CFCs) equipped with modern tools, machinery, testing, and packaging facilities.
• Creation of Craft Villages, Urban Haats, Emporia, and Marketing Hubs to support both production and sales.
• Upgrading existing clusters into integrated production and marketing zones to enhance artisan productivity.

🧵 2. Skill Upgradation and Capacity Building

• Training in modern design, quality control, and finishing techniques to meet global standards.
• Exposure visits, workshops, and collaborations with National Institute of Fashion Technology (NIFT) and National Institute of Design (NID).
• Special capacity-building programs for women, youth, and tribal artisans to ensure inclusion and skill diversification.

💡 3. Financial Assistance and Subsidy

• Up to 90% government funding for infrastructure projects in North Eastern and Hill States, and 80% in other regions.
• Assistance for working capital, raw material banks, and design-cum-resource centres.
• Direct disbursal of grants through Public Financial Management System (PFMS) and Direct Benefit Transfer (DBT).

🛍️ 4. Market Access and Branding Support

• Support for national and international exhibitions, e-commerce integration, and buyer-seller meets.
• Promotion of Geographical Indication (GI)-tagged crafts to enhance global visibility.
• Assistance in developing brand identity, packaging, and certification of authentic handmade products.

🪡 5. Employment and Livelihood Generation

• Each cluster is designed to benefit 10,000+ artisans and households, creating sustainable income opportunities.
• Encourages local entrepreneurship and micro-enterprise formation within the handicraft ecosystem.
• Focus on self-employment through design-led innovation and skill-based production.

🏗️ 6. Support for Women and Weaker Sections

• Special preference to women-led artisan groups, SC/ST cooperatives, and minority crafts communities.
• Reserved funding quotas for Scheduled Castes (SC), Scheduled Tribes (ST), and North Eastern Region clusters.

🔍 7. Technology Integration and Innovation

• Introduction of modern production techniques, design software, and digital marketing tools.
• Establishment of testing laboratories for quality assurance and export readiness.
• Encouragement of eco-friendly, sustainable, and low-waste production models.

🌍 8. Export Promotion and Global Market Linkages

• Support to artisans for participation in international trade fairs and buyer delegations.
• Assistance in export documentation, product standardization, and collaboration with Export Promotion Council for Handicrafts (EPCH).
• Facilitation of tie-ups with global brands and online marketplaces (e.g., Amazon Karigar, IndiaMart).

🧾 9. Design and Product Diversification

• Collaboration with designers to revive traditional crafts and introduce contemporary designs.
• Funding support for design prototypes, digital catalogs, and new product lines.
• Promotion of “Design to Market” concept — linking innovation directly with sales.

🏘️ 10. Community Empowerment and Cluster Sustainability

• Strengthening artisan governance through Producer Companies, SHGs, and cooperatives.
• Building self-sustainable clusters with integrated supply chains, marketing units, and training centers.
• Long-term goal of making each cluster financially independent and globally recognized.

💬 11. Social and Economic Impact

• Preservation of India’s cultural heritage through revival of traditional crafts.
• Significant contribution to rural employment generation, women empowerment, and inclusive growth.
• Improvement in income levels, working conditions, and quality of life for artisans.

🧮 12. Monitoring and Transparency

• Use of geo-tagging, real-time dashboards, and digital reporting for every funded cluster.
• Transparent fund utilization through PFMS and third-party audits.
• Centralized oversight by the Project Approval and Monitoring Committee (PAMC) under the Ministry of Textiles.

💰 Payout / Financial Pattern

Disbursement is made in three instalments (50:40:10) through PFMS/DBT system.

📊 How to Check Status

Go to https://handicrafts.nic.in

• Navigate to Schemes → Cluster Development → Status.
• Enter your project reference or proposal ID to track application status.
• Updates are also published in notifications on the same website.

🗂️ Follow-up & Escalation

If your application is delayed or not updated:

1. Contact your nearest Regional Office of DC (Handicrafts).
2. Write to:
   The Development Commissioner (Handicrafts)
   Ministry of Textiles, Udyog Bhawan, New Delhi – 110011.
3. Email: support-chcds@handicrafts.nic.in

📍 State / UT Coverage

The CHCDS applies to all States and Union Territories of India.
Priority is given to clusters in Aspirational Districts, North Eastern Region, Women-Dominated, Tribal, and GI-Registered Craft Clusters.

Nodal Ministry: Ministry of Textiles, Government of India
Implementing Agency: Office of the Development Commissioner (Handicrafts)
Address:
West Block No. 7, R.K. Puram, Sector-1, New Delhi – 110066
📞 Phone: +91-11-2301 2365 / 2301 3490
📧 Email: dchandicrafts@nic.in

💬 FAQs

Q1. Who can apply for CHCDS projects?
Eligible government bodies, producer companies, and registered organizations experienced in handicraft cluster development.

Q2. What is the main benefit of CHCDS?
Creation of modern infrastructure, improved market linkages, and livelihood opportunities for artisans.

Q3. How are funds released?
In three instalments — 50% advance, 40% after utilization of 80% of first instalment, and 10% on completion.

Q4. Can private companies apply?
Only if registered as a Producer Company or recognized cooperative with active artisan members.

Q5. Is land ownership mandatory?
Yes, the implementing agency must possess or lease land for at least 10 years.

Q6. How to ensure project approval?
Submit complete DPR, baseline data, and verified financial documents recommended by the Regional Office.

Q7. Who monitors the projects?
A Project Approval and Monitoring Committee (PAMC) chaired by Secretary (Textiles).