“Marketing Incentive” under the “Handloom Marketing Assistance” Component of the National Handloom Development Programme
About this Scheme
The scheme aims to develop and promote marketing channels for handloom products to bring greater visibility to the sector and ensure commensurate remuneration to weavers. It provides Marketing Incentive to eligible handloom agencies for creating conducive conditions for marketing handloom products.
About This Scheme
The scheme “Marketing Incentive” under the “Handloom Marketing Assistance” Component of the National Handloom Development Programme by the Ministry of Textiles, Government of India, aims to develop and promote marketing channels in domestic and export markets in a holistic and integrated manner to bring greater visibility to the sector and ensure commensurate remuneration to weavers. The scheme provides Marketing Incentive calculated at 10% on average sales of handloom products of the last 3 years with maximum caps of âš1,00,00,000/- for state level organizations and âš15,00,000/- lakh for primary societies, equally shared between State Government and Central Government except for National Level Handloom Organizations where entire assistance is borne by Government of India. The scheme is implemented by the Office of Development Commissioner (Handlooms) under Ministry of Textiles with applications accepted through prescribed proformas and State Government recommendations.
Benefits
Financial Assistance Structure
Marketing Incentive Rate: 10% on average sales of handloom products of the last 3 years.
State Level Organizations: Maximum âš100.00 lakh (Central Government share).
Primary Level Organizations: Maximum âš15.00 lakh (Central Government share).
Category-wise Maximum Caps
State Level Organizations (Handloom Corporations, Apex Cooperative Societies, National Level Handloom Organizations): âš1,00,00,000/- Central Government share.
Primary Handloom Weavers Cooperative Societies, Producer Companies, Self Help Groups, Joint Liability Groups, Federations and Other Eligible Handloom Entities: âš15,00,000/- Central Government share.
Financial Assistance Sharing
General Cases: 50:50 sharing between Government of India and State Government.
National Level Handloom Organizations/Societies: Entire assistance borne by Government of India.
Benefit Distribution: 10% benefits shared equally between Organizations and Member Weavers through Direct Benefit Transfer.
Mode and Frequency of Disbursement
Marketing Incentive will be given maximum for 3 years during the scheme period of 5 years.
Release through Direct Benefit Transfer mechanism.
Nodal Agency must release amount to eligible handloom agencies and their member weavers within 7 days of receipt.
Conditions for Availment/Continuation
Amount to be used towards activities that attract consumers to gear up overall sales of handloom goods.
Enable handloom agencies to adjust prices towards increasing cost competitiveness, improve designs, and invest in infrastructure.
State Government recommendation subject to matching contribution by concerned State Government.
Claims must be Goods and Services Tax compliant.
No similar incentive/rebate received under any other Central Government scheme.
Eligibility Criteria
The applicant must be one of the following:
Handloom agencies including State level organizations such as Handloom Corporations, Apex Cooperative Societies and National Level Handloom Organizations, Primary Handloom Weavers Cooperative Societies, Producer Companies, Self Help Groups, Joint Liability Groups, Federations and Other eligible Handloom entities.
The applicant must have made the final transaction of product sale to the consumer.
The applicant must use Handloom Mark or India Handloom Brand for their handloom products.
The applicant must have average sales turnover of handloom products for the last 3 years for incentive calculation.
Application Process
Apply Offline
For State Level and Primary Level Organizations
Step 1: Prepare Claim Documentation
Compile sales bills/invoices, yarn purchase bills, and average sales turnover details for the last 3 years ensuring Goods and Services Tax compliance.
Step 2: Complete Application Form
Fill the prescribed proforma (Annexure – B8) with all required details including sales data and beneficiary information.
Step 3: Submit to State Government
Submit the completed Marketing Incentive claim to the concerned State Government with all supporting documents.
Step 4: State Government Verification
State Government will verify claims, ensure matching contribution availability, and complete prescribed certificates (Annexure – B9).
Step 5: State Level Project Committee Recommendation
Obtain recommendations from State Level Project Committee for the Marketing Incentive claims.
Step 6: State Government Consolidation
State Government prepares consolidated statement, sanction order for state share release, and certificate as per Annexure – B10.
Step 7: Nodal Agency Identification
State Government identifies suitable nodal agency for fund aggregation and onward release to eligible agencies.
Step 8: Forward to Development Commissioner (Handlooms)
State Government forwards verified claims to Office of Development Commissioner (Handlooms) with all required documentation.
Step 9: Central Government Processing
Office of Development Commissioner (Handlooms) processes claims and releases Central Government share to identified Nodal Agency.
Step 10: Fund Distribution
Nodal Agency releases amount to eligible handloom agencies and their member weavers through Direct Benefit Transfer within 7 days of receipt.
For National Level Handloom Organizations
Step 1: Direct Application Preparation
Prepare Marketing Incentive claim with all supporting documents and prescribed proforma (Annexure – B8).
Step 2: Submit to Development Commissioner (Handlooms)
Submit claims directly to Office of Development Commissioner (Handlooms) with complete documentation.
Step 3: Central Government Processing
Office of Development Commissioner (Handlooms) processes and approves claims for National Level Organizations.
Step 4: Direct Release
Marketing Incentive assistance released directly to National Level Handloom Organizations by Government of India.
Official Source: View on myScheme.gov.in
Scheme Benefits
- Financial Assistance Structure
- Marketing Incentive Rate: 10% on average sales of handloom products of the last 3 years.
- State Level Organizations: Maximum âš100.00 lakh (Central Government share).
- Primary Level Organizations: Maximum âš15.00 lakh (Central Government share).
- Category-wise Maximum Caps
- State Level Organizations (Handloom Corporations, Apex Cooperative Societies, National Level Handloom Organizations): âš1,00,00,000/- Central Government share.
- Primary Handloom Weavers Cooperative Societies, Producer Companies, Self Help Groups, Joint Liability Groups, Federations and Other Eligible Handloom Entities: âš15,00,000/- Central Government share.
- Financial Assistance Sharing
- General Cases: 50:50 sharing between Government of India and State Government.
- National Level Handloom Organizations/Societies: Entire assistance borne by Government of India.
- Benefit Distribution: 10% benefits shared equally between Organizations and Member Weavers through Direct Benefit Transfer.
- Mode and Frequency of Disbursement
- Marketing Incentive will be given maximum for 3 years during the scheme period of 5 years.
- Release through Direct Benefit Transfer mechanism.
- Nodal Agency must release amount to eligible handloom agencies and their member weavers within 7 days of receipt.
- Conditions for Availment/Continuation
- Amount to be used towards activities that attract consumers to gear up overall sales of handloom goods.
- Enable handloom agencies to adjust prices towards increasing cost competitiveness, improve designs, and invest in infrastructure.
- State Government recommendation subject to matching contribution by concerned State Government.
- Claims must be Goods and Services Tax compliant.
- No similar incentive/rebate received under any other Central Government scheme.