Assistance Scheme for Handicraft Artisans - Kerala
The Assistance Scheme for Handicraft Artisans – Kerala is implemented by the Department of Industries and Commerce, Kerala through agencies such as Kerala State Handicrafts Development Corporation (SURABHI). The scheme has been operational for several years and continues in the current plan period, subject to annual budget approval. The primary purpose of the scheme is to support traditional handicraft artisans in Kerala by providing financial assistance, skill upgradation, modern tools, design support, and marketing opportunities. As an MSME or artisan in Kerala, your business benefits through improved productivity, better market access, and sustainable income generation.
Key Features
- One-time grant assistance: The scheme provides financial assistance only once to an eligible handicraft micro enterprise. This ensures focused capital strengthening and prevents repeated claims for the same unit.
- Fixed Capital Investment support: Assistance is provided as a percentage of eligible fixed capital investment made by the artisan, such as machinery, tools, and production-related equipment required to run the unit.
- Working Capital support: The scheme also provides a grant towards working capital needs. This is calculated strictly based on the working capital requirement shown in a Project Report approved by a financial institution.
- Category-based enhanced assistance: Women artisans, Scheduled Caste / Scheduled Tribe artisans, young artisans between 18–45 years, and differently abled artisans are eligible for higher percentage assistance and higher monetary ceilings.
- Overall financial ceiling: Even though fixed capital and working capital assistance are calculated separately, the total assistance payable under the scheme is subject to an overall maximum limit based on the applicant category.
- Project Report linkage: Working capital assistance is not automatic. It is considered only when supported by a detailed Project Report that has been assessed and approved by a recognised financial institution.
- District-level implementation and sanction: Applications are scrutinised and sanctioned by the General Manager of the District Industries Centre, ensuring decentralised implementation and district-level verification.
Financial Assistance
Eligibility Criteria
Who can apply:
- You must be a handicraft artisan from Kerala
- You must be recognised as an artisan by authorised central or state handicraft agencies
- You must have set up or be running a micro enterprise
- Investment in plant and machinery is mandatory
- Udyam Registration is required
- The scheme can be availed only once for the same unit
Who cannot apply:
- Existing medium or large enterprises.
- Artisans who have already availed similar one-time capital assistance for the same unit.
- Applicants with non-handicraft commercial activities.
- Units not registered or not operational in Kerala.
- Applicants with proven cases of subsidy misuse or serious loan default.
Documents Required
- Identity & address proof
- Proof of artisan status / handicraft certification
- Udyam Registration Certificate
- Project report with cost breakup
- Caste certificate (if applicable)
- Bills / invoices for fixed capital investment
- Bank account details
Application process for the scheme
Option 1: Apply with Bullit (Recommended)
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Recommended for: Lean teams. Designed to save time and effort with expert assistance.
Option 2: Apply Through District Industries Centre (DIC)
- Prepare a basic project report and cost details.
- Submit the application with documents to the District Industries Centre (DIC).
- Site inspection and verification by officials.
- Sanction and release of assistance after approval.
Power combo with the scheme
Related Schemes
Frequently asked questions
Is the ASHA scheme a loan or a subsidy?
ASHA is a back-ended grant assistance, not a loan. Eligible artisans receive a portion of their fixed capital investment reimbursed after verification and sanction, reducing the need for borrowing.
Can women artisans apply individually?
Yes. Women artisans are encouraged and are eligible for higher assistance rates under the priority category, subject to scheme limits.
Is Udyam registration mandatory?
Yes. The handicraft unit must be registered as a micro-enterprise to ensure formal recognition and eligibility
Can existing handicraft units apply?
Existing micro units can apply only if they have not availed similar capital assistance earlier for the same purpose.
How long does approval usually take?
Timelines vary by district, but applications generally move through scrutiny, inspection, and sanction stages over a few weeks.
Is the scheme applicable outside Kerala?
No. ASHA - Kerala is strictly a Kerala state scheme for artisans operating within the state.