Comprehensive Handicrafts Cluster Development Scheme (CHCDS)

The Comprehensive Handicrafts Cluster Development Scheme is a central-sector scheme run by the Office of the Development Commissioner under the Ministry of Textiles, Government of India. The scheme targets handicrafts clusters for integrated infrastructural and production chain development. It has been formulated to support clusters that have remained largely unorganised and to help them modernise tools, processes, product design, branding and market linkages. The scheme helps you as an artisan collective, producer company or MSME in the handicrafts sector by providing support for cluster-level infrastructure, common facilities, design & marketing interventions and skill development.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process for the Scheme

Key Features

Support for cluster-level infrastructure creation and upgradation: The scheme enables you to develop or upgrade physical infrastructure in the handicraft cluster for example roads, power, water supply, sheds, telecommunication, effluent treatment so that the cluster becomes production-ready and efficient.
Enabling common facility centres (CFCs) and shared production resources: It allows establishment of units that offer high-tech machines, testing labs, design studios and shared services which individual small units cannot afford. Artisans can use these CFCs at reasonable cost, improving productivity and quality.
Assistance for product diversification, design & branding intervention: The scheme supports designing new product lines, improving quality standards, branding the craft cluster’s output, thereby making it competitive in domestic and global markets.
Market linkages including domestic & export marketing, e-commerce, exhibitions: It facilitates marketing activities such as participation in fairs, buyer-seller meets, development of e-catalogues, export facilitation so that your cluster’s products reach broader markets.
Skill development, training and capacity building of artisans within clusters: The scheme includes training for artisans in new techniques, exposure to contemporary design, management of cluster operations, thereby enhancing the human resource capability of your enterprise/cluster.
Social and civic-infrastructure support including work-sheds, amenities, etc.: It recognises that infrastructure includes not just production units but also amenities like work-sheds for artisans, effluent treatment, amenities in craft villages, ensuring sustainable production environment.
Flexible implementation for both fixed geographical clusters and scattered clusters of a craft across different places: The scheme allows projects either in a defined geographical cluster or across multiple locations for a specific craft, giving flexibility for your business or cluster to propose suitable models.

Financial Assistance

Component	Assistance Provided	Detailed Explanation & Example
Cluster Infrastructure & Common Facility funding	Grant support for creation/upgradation of infrastructure	Example: Your handicraft cluster proposes a common production shed and power supply upgrade costing Rs 2 crore; the scheme may grant a share of that cost (per guidelines) to enable the project.
Design/Product Development & Marketing Support	Subsidy for design makeover, branding, exhibitions, e-commerce	Example: Your cluster decides to diversify into lifestyle handicrafts; the scheme subsidises the design consultancy, e-catalogue creation and participation in an international fair.
Human Resource/Training & Skill Development	Funding for training artisans, capacity building programmes	Example: The cluster proposes a training programme for 500 artisans on modern techniques; the scheme provides funding for the training costs and certification.

Eligibility Criteria

Who Can Apply:

Registered artisan groups, SHGs and handicraft cooperatives.
Producer companies and societies working in handicrafts.
State Handicrafts Development Corporations.
Special Purpose Vehicles formed by cluster stakeholders.
Implementing agencies approved by the Office of Development Commissioner (Handicrafts).
Clusters with significant artisan concentration and potential for sustainable growth.

Who Cannot Apply:

Individual artisans applying without a cluster or organizational backing.
Entities not engaged in handicraft production or related activities.
Unregistered groups or informal producer collectives.
Organizations with compliance issues, misreporting or unresolved project violations.
Clusters lacking adequate artisan density or viability.

Documents Required

Cluster Map & Identification documents
Detailed Project Report (DPR) with activity mapping
Registration certificates of agencies or SPVs
PAN & GST (if applicable)
Proof of artisan registration
Bank details & audited statements
Skill survey or baseline study report
Land/structure ownership or lease documents

Application Process for the Scheme

Option 1: Apply with Bullit (Recommended)

Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations.

Recommended for: Lean teams. Designed to save you time and effort. Access expert help from start to finish.

Option 2: Official Application Method

The cluster is identified based on artisan concentration and viability.
A proposal is prepared by the state agency, SPV or implementing agency.
Detailed project reports, infrastructure plans and financials are submitted.
The Ministry of Textiles evaluates and approves the project.
Funds are released in phases based on project milestones.
The SPV manages execution, infrastructure development and artisan engagement.

Power Combos with The Scheme