"Marketing Incentive" under the "Handloom Marketing Assistance" Component of the National Handloom Development Programme

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.

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.

Offline

For State Level and Primary Level Organizations

Step 1: Prepare Claim Documentation

Compile sales bills/invoices, yarn purchase bills, and average sales turnover details for the last 3 years ensuring Goods and Services Tax compliance.

Step 2: Complete Application Form

Fill the prescribed proforma (Annexure - B8) with all required details including sales data and beneficiary information.

Step 3: Submit to State Government

Submit the completed Marketing Incentive claim to the concerned State Government with all supporting documents.

Step 4: State Government Verification

State Government will verify claims, ensure matching contribution availability, and complete prescribed certificates (Annexure - B9).

Step 5: State Level Project Committee Recommendation

Obtain recommendations from State Level Project Committee for the Marketing Incentive claims.

Step 6: State Government Consolidation

State Government prepares consolidated statement, sanction order for state share release, and certificate as per Annexure - B10.

Step 7: Nodal Agency Identification

State Government identifies suitable nodal agency for fund aggregation and onward release to eligible agencies.

Step 8: Forward to Development Commissioner (Handlooms)

State Government forwards verified claims to Office of Development Commissioner (Handlooms) with all required documentation.

Step 9: Central Government Processing

Office of Development Commissioner (Handlooms) processes claims and releases Central Government share to identified Nodal Agency.

Step 10: Fund Distribution

Nodal Agency releases amount to eligible handloom agencies and their member weavers through Direct Benefit Transfer within 7 days of receipt.



For National Level Handloom Organizations

Step 1: Direct Application Preparation

Prepare Marketing Incentive claim with all supporting documents and prescribed proforma (Annexure - B8).

Step 2: Submit to Development Commissioner (Handlooms)

Submit claims directly to Office of Development Commissioner (Handlooms) with complete documentation.

Step 3: Central Government Processing

Office of Development Commissioner (Handlooms) processes and approves claims for National Level Organizations.

Step 4: Direct Release

Marketing Incentive assistance released directly to National Level Handloom Organizations by Government of India.

At Application Stage

Sales Bills/invoices for Handloom Products (Goods and Services Tax Compliant),

Yarn Purchase Bills (Goods and Services Tax Compliant).

Average Sales Turnover Details of Handloom Products for the Last 3 Years.

Handloom Mark or India Handloom Brand Usage Documentation.

Final Transaction Proof of Product Sale to Consumer.

For State Government Processing

Certificate as Per Prescribed Proforma (Annexure - B9) for Each Individual Claim.

Consolidated Statement of All Claims.

Recommendations of State Level Project Committee.

Sanction Order for Release of State Share.

Documentary Proof of Amount Transferred to Beneficiaries.

Certificate as Per Prescribed Proforma (Annexure - B10).

Identification of Suitable Nodal Agency for Fund Aggregation and Release.

At Verification Stage

Utilization Certificate From Nodal Agency.

Certificate Of Direct Benefit Transfer Release Within 7 Days.

Details Of Beneficiaries (State Share And Government Of India Share) Uploaded In Public Domain.

NOTE: All sales bills/invoices and yarn purchase bills must be Goods and Services Tax compliant for claiming Marketing Incentive.