Jute Diversification Scheme (JDS)

The Jute Diversification Scheme is run by the National Jute Board under the Ministry of Textiles, Government of India. The scheme has been incorporated under the umbrella programme titled National Jute Development Program . The purpose of JDS is to promote diversified jute products beyond the traditional jute sacks, encourage modernization of jute mills and MSME units producing JDPs, support linkages for raw-material, training of artisans, new product development, retail outlets etc. The benefit: your unit, if you are producing jute diversified products (bags, geo‐textiles, handicrafts, home furnishing etc) or planning to set up one, can get financial incentives under this scheme to modernize, diversify, link raw-material, training and market.

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

Key Features

Modernisation / Upgradation of jute mills & MSME JDP units via capital subsidy: Under JDS there is a sub-scheme of Capital Subsidy for Acquisition of Plant & Machinery (CSAPM) for manufacturing JDPs. For example, the incentive is about 30% of cost of machinery for JDP units, with a ceiling for each unit.
Training of artisans & women/SHGs through JRCPCs: The scheme supports setting up Jute Resource-cum-Production Centres (JRCPCs) in multiple locations for providing basic, advanced and design training on jute diversified products to rural youth, women SHGs, etc.
Raw-Material Bank scheme (JRMB): To ensure raw jute material is made available at reasonable cost to JDP units/artisans, the scheme supports setting up Raw Material Banks (JRMBs) in clusters.
Retail Outlets (JRO) for JDPs: To enhance access of diversified jute products to consumers, retail‐outlet support is provided wherein existing/new artisans/entrepreneurs can open retail outlets/showrooms for JDP sale.
Design Resource Centre (JDRC) & export/market linkages: As part of diversification push, design centres for innovating new jute products and market support for exports are inbuilt.

Financial Assistance

Component	Assistance Provided	Detailed Explanation & Example
Capital Subsidy for Acquisition of Plant & Machinery (CSAPM)	~ 30% of machinery cost for JDP units (or as per prevailing norms)	Example: If your JDP unit invests ₹ 1 crore in new machinery to produce diversified jute products, you may get subsidy roughly 30% (₹ 30 lakh) subject to ceilings and norms.
Retail Outlet support (JRO)	Financial incentive @ 25% on actual sales (or as per scheme) for retail outlets of JDPs.	Example: A retail outlet for jute diversified products reports annual sales of ₹ 10 lakh; support could be around 25% of that, i.e., ₹ 2.5 lakh under certain conditions.
Raw Material Bank assistance	Support on sales value of jute raw material to operate JRMB (e.g., 30% support on sales value)	Example: A JRMB operator sells raw jute to JDP units to the tune of ₹ 1 lakh in a quarter; support could be 30% of that value i.e., ₹ 30,000.

Eligibility Criteria

Who can apply:

Eligible Jute Diversified Product (JDP) manufacturing units, jute-mills, MSME units engaged in manufacturing value-added jute goods under JDS.
Artisans, self-help groups (WSHGs), collaborating agencies in training centres (for JRCPC) under scheme component.
Agencies/organisations setting up Jute Raw Material Banks or Retail Outlets under scheme guidelines.

Who cannot apply:

Units not engaged in jute diversified product manufacturing (i.e., traditional sacking only) may not qualify for all components under JDS as the scheme focuses on value-added JDPs.
Units or agencies not registered/approved under NJB’s scheme framework or failing to comply with scheme norms (e.g., not submitting requisite audits/invoices) may not get benefits.
Projects undertaken before sanction of scheme/LOI may be ineligible for subsidy unless prior approval sought.

Documents Required

Application form for chosen component of JDS (CSAPM/JRCPC/JRMB/JRO etc).
Unit registration: e.g., Unit’s factory licence, MSME registration or RCMC (for exporters) as relevant.
Detailed Project Report/Budget for machinery acquisition or establishment of centre/bank/outlet, cost estimates, vendor quotes.
Bank account details, KYC, Udyam/MSME certificate (if applicable) and promoter details.
For raw-material banks or retail outlets: proof of land/space, sales/operational plan, backward linkage to jute mills/artisans.
For training centres: collaborating agency’s credentials, training plan, employment linkages.
Audited accounts/turnover proof of unit (if required).
Utilisation certificates, invoices/photographs post-implementation for subsidy release.

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: JDP units, artisans’ clusters, raw-material bank agencies, retail outlet promoters seeking scheme support.

Option 2: Government Process via NJB / Ministry of Textiles

Visit the NJB website or MoT portal listing the JDS guidelines (under umbrella scheme National Jute Development Programme (NJDP)).
Download the application form for corresponding component (CSAPM, JRCPC, JRMB, JRO etc), fill and submit with requisite supporting documents to the NJB Regional Office or designated nodal office.
Upon scrutiny, a Letter of Intent (LOI) may be issued; the beneficiary then procures/install machinery or implements the project per LOI guidelines.
After implementation, claim subsidy/incentive by submitting utilisation certificate, audited accounts, photographs, production/sales proof etc.
NJB verifies and releases subsidy/incentive as per scheme norms.

Option 3: Via Cluster/Association Facilitation
Industry associations, jute-clusters, SHGs may aggregate project proposals for multiple units under JDS component, submit jointly to NJB, and co-ordinate implementation and monitoring.