MI-HMA-NHDP

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.

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 ₹1,00,00,000/- for state level organizations and ₹15,00,000/- 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.

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.

> Financial Assistance Structure

• Marketing Incentive Rate: 10% on average sales of handloom products of the last 3 years.
• State Level Organizations: Maximum ₹100.00 lakh (Central Government share).
• Primary Level Organizations: Maximum ₹15.00 lakh (Central Government share).

> Category-wise Maximum Caps

• State Level Organizations (Handloom Corporations, Apex Cooperative Societies, National Level Handloom Organizations): ₹1,00,00,000/- Central Government share.
• Primary Handloom Weavers Cooperative Societies, Producer Companies, Self Help Groups, Joint Liability Groups, Federations and Other Eligible Handloom Entities: ₹15,00,000/- 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.

• Sales by one handloom agency to another handloom agency are not eligible.
• Sales of handloom products by Primary Handloom Weavers Cooperative Societies or any other Handloom Agency to Apex Societies, Federations, Producer Companies, Corporations are excluded.
• Sales by handloom agencies to Government departments/agencies are excluded.
• Sales made under barter system by handloom agencies are excluded.
• Agencies that have received similar kind of incentive/rebate under any other Central Government scheme are not preferred.