New Charkha-Loom Scheme
By Cottage and Rural Industries Department, Government of Gujarat
Check your eligibility
Sign up and we'll tell you whether your startup qualifies for this grant.
Quick Answer
This scheme by the Government of Gujarat provides a 65% subsidy for Amber Charkhas and looms to registered Khadi spinners and weavers to modernize production and enhance productivity.
About this subsidy
The "New Charkha-Loom Scheme," spearheaded by the Commissioner of Cottage and Rural Industries under the Industries & Mines Department of the Government of Gujarat, represents a significant initiative to bolster the state's traditional Khadi sector. This program is designed with the core objective of modernizing Khadi production processes by offering crucial financial assistance to registered Khadi spinners and weavers. By providing subsidies for the purchase of Amber Charkhas and looms, the scheme directly addresses the need for technological upgrades within this vital cottage industry. The overarching goal is to enhance the productivity, efficiency, and competitiveness of Khadi artisans, ensuring the sustainable growth and economic viability of this traditional craft. This support not only aims to preserve India's rich heritage of hand-spun and hand-woven textiles but also to empower individual artisans with the tools necessary to thrive in a contemporary market, thereby safeguarding livelihoods in rural and semi-urban areas of Gujarat.
Eligibility
See if you're eligible
Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
Benefits & Funding
- Amount
- ₹8,450 – ₹19,500
What You Get
The scheme provides substantial financial support to Khadi artisans in Gujarat, directly impacting their ability to modernize production.
- Direct Subsidy: Beneficiaries receive a 65% subsidy on the purchase of essential equipment, with up to ₹8,450 for Amber Charkhas and up to ₹19,500 for looms. This significant reduction in capital expenditure makes modern tools accessible.
- Enhanced Productivity: By enabling the acquisition of new Amber Charkhas and looms, the scheme directly helps artisans increase their output and improve product quality, leading to higher income potential.
- Sustainability of Traditional Crafts: The financial assistance is a strategic investment in the future of Khadi production, helping to sustain traditional weaving and spinning practices while making them more economically viable for the artisans.
- Facilitation through Khadi Institutions: The scheme is implemented through registered Khadi/Polyvastra organizations, which can provide guidance and support throughout the application and verification process, ensuring smooth access to the benefits.
- Disbursement
- Lump Sum
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
The selection process for the New Charkha-Loom Scheme primarily revolves around verification and adherence to the stated eligibility criteria. Applications, once submitted, undergo a thorough review by the implementing Khadi institutions or government officials. This verification process typically involves cross-checking the submitted documents, such as purchase invoices and Khadi certification, and potentially a physical inspection of the purchased equipment to ensure it meets scheme specifications and is for active Khadi production. Upon successful verification and approval of eligibility, the subsidy amount is then processed and credited directly to the beneficiary's account. The focus is on ensuring genuine beneficiaries receive support for modernizing their traditional craft.
Application Process
- 1
Purchase Equipment
Applicants must first purchase the Amber Charkha or loom from an approved vendor.
You - 2
- 3
- 4
- 5
- 6
How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the primary objective of the New Charkha-Loom Scheme?
The scheme aims to modernize Khadi production in Gujarat by providing financial assistance (subsidies) for the purchase of Amber Charkhas and looms to registered Khadi spinners and weavers, thereby enhancing their productivity and ensuring the sustainability of traditional crafts.
Who is eligible to apply for this scheme?
The scheme is open to registered Khadi/Polyvastra spinners and weavers whose organizations hold a valid Khadi certification. The equipment purchased must be specifically for active Khadi production.
What is the amount of subsidy available?
Beneficiaries can receive a 65% subsidy on the cost of equipment. This translates to ₹8,450 for an Amber Charkha (65% of ₹13,000) and ₹19,500 for a loom (65% of ₹30,000).
How is the subsidy disbursed to beneficiaries?
The subsidy amount is credited directly to the beneficiary’s bank account after the successful verification of their application and equipment purchase by the scheme authorities.
What is the application process for the New Charkha-Loom Scheme?
The application is offline. Applicants must first purchase the equipment, then obtain a prescribed application form from a Khadi institution or District Industries Center, fill it with all details and attach required documents (purchase invoices, certification proof), and finally submit it to the designated staff, requesting an acknowledgement.
Is there any co-financing required from the applicant?
Yes, the scheme provides a 65% subsidy, meaning the applicant is responsible for funding the remaining 35% of the equipment cost.
Sources
Data on this page is compiled from official program and provider references.
