Comprehensive Handloom Cluster Development Scheme (CHCDS).

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.
Scheme Benefits:
 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.

Eligibility:
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.

Yarn Supply Scheme:

The objective of this component is to make available all types of yarn at Mill Gate Price to
the eligible handloom weavers so as to facilitate regular supply of basic raw materials to the
handloom sector and help utilize the full employment potential of the sector.

Eligibility:

 Handloom organizations (including weaver co-operative societies) at National/ State/

Regional/ Primary Handloom level.
 Handloom Development Centres.
 Handloom producers/manufacturers exporting directly and registered with HEPC/ any
other Export Promotion Council under Ministry of Textiles/Director of
Industries/Handlooms of State/U.T.
 The Consortium/producers Company formed in the handloom clusters sanctioned
under IHDS/IHCDS/Mega Clusters/Integrated Handloom Textile Parks.
 Members of recognized/approved handloom associations. 
  NGOs fulfilling CAPART norms. g) Self Help Groups/ Joint liability Groups. h)
Individual weavers and Weavers entrepreneurs.

Beneficiaries:

Mill Gate Price Scheme (MGPS) has been in effect since 1992 to make yarn available to
handloom weavers by reimbursing transportation charges to depot operating agencies.
Freight is reimbursed and depot operating charges at 2% is given to depot operating agencies.
Funds for YSS are released to NHDC as per proposals initiated and utilization of previously
released funds.

The Mill Gate Price Scheme (MGPS) has been continued along with a subsidy of 10% and
modifications. This scheme is called the Yarn Supply Scheme (YSS) with a total outlay of
Rs.433 crores. Mill Gate Price is the price at which the yarn is procured from registered
license holders of Silk Exchange. Cotton hank yarn is obtained from the mills producing
hank yarn under the Hank Yarn Packing Obligation as recorded by the Textile Commissioner.
This helps remove monopoly and cartels. NHDC procures yarn in huge quantities and thus
the MGP is lesser than that procured by wholesalers at the mill gate.

Mahatma Gandhi Bunkar Bima Yojana Scheme:

The basic objective of the 'Mahatma Gandhi Bunkar Bima Yojana' is to provide enhanced
insurance cover to the handloom weavers in the case of natural as well as accidental death
and also higher sum assured.
ELIGIBILITY:
For availing of assistance under the scheme, the weaver should fulfill the following
conditions:

 The weaver should be earning at least 50% of his income from handloom weaving.
 All weavers, whether male or female, between the age group of 18 and 59 years are
eligible to be covered under the scheme.
 Weavers being regular members of a Co-operative Society will be eligible to benefit
from the scheme. While it is difficult to set a definite criterion of a regular member,
ordinarily, a weaver would be considered to be a regular member if he has obtained the raw
materials and supplied finished goods to the cooperatives for quantities worth his productivity
of 180 days in a year. It will be up-to the Society to quantify 180 days productivity taking
into each individual weaver's skill, ability and performance in past years.
 Weavers affiliated to State Handloom Development Corporations will also be eligible.
The scheme will be administered by the Life Insurance Corporation of India.
Beneficiary:

(i) Natural Death Rs.60,000/-

(ii) Accidental Death Rs.1,50,000/-

(iii) Total Disability Rs.1,50,000/-

(iv) Partial Disability Rs.75,000/-