Babasaheb Ambedkar Hastshilp Vikas Yojna PREAMBLE Handicrafts constitute an important segment of the de-centralized/unorganized sector of our economy. It is mainly rural based, having reach in backward and in-accessible area. Originally, started as a part time activity in rural areas, it has now transformed into a flourishing economic activity due to significant market demand over the years. Handicrafts have big potential as they hold the key for sustaining not only the existing set of millions of artisans spread over length and breadth of the country, but also for increasingly large number of new entrants in the crafts activity. Presently, handicraft sector is contributing substantially in employment generation and export but this sector has suffered due to very nature of being unorganized with additional constraints like lack of education, capital, poor exposure to new technologies, absence of market intelligence and poor institutional framework. In order to overcome these constraints, Baba Saheb Ambedkar Hastashilp Vikas Yojana (BAHVY) was launched in 2001-02 wherein the main thrust is on a projectised, need based approach for integrated development of potential handicrafts clusters with participation of the craft persons at all stages of implementation of the scheme with the ultimate objective of their empowerment and hence sustainability. The scheme envisages a package of support to the cluster of handicraft artisans, which inter-alia includes basic inputs and infrastructure support in addition to capacity enhancement to cater to target markets. While it is an undisputed fact that the Govt. of India and the State Governments have intervened in meaningful ways that have led to the revival and survival of crafts in the past few decades, in the light of new economic developments of one global unified market, handicrafts sector of India has to be strengthened further to be globally competitive. There is therefore, compelling urgency to fill in critical gaps, which have been taken care of in the scheme based on CLUSTER APPROACH. The package of support under AHVY can be clubbed under the following five parts which have some components :- PART I SOCIAL INTERVENTIONS i. Diagnostic Survey and formulation of Project Plan ii. Community empowerment for mobilization of artisans into Self Help Groups iii. Issuance of Identity cards to the artisans (Departmental activity) PART II TECHNOLOGICAL INTERVENTIONS i. Development and supply of improved modern tools ii. Design and Technical Development Workshops iii. Integrated Design and Technical Development project. iv. Training of artisans v. Organizing Seminar & Symposium. vi. Technological status and need based study and research provision. PART III MARKETING INTERVENTIONS i. Organizing Exhibitions ii. Publicity through printing and electronic mode and brand building campaign iii. Setting up of Handicrafts emporia in own/rented/ outright purchase of building and renovation iv. Market assessment, product assessment study and Study cum exposure tours for artisans and other stake holders tour v. Establishment of warehousing cum Common work shed vi. Entrepreneurship Development Programme. PART IV FINANCIAL INTERVENTIONS i. Margin Money support ii. Wage compensation to cluster manager iii. Service charges for Implementing Agencies Scheme of the Office of Development Commissioner (Handicraft) 7 Babasaheb Ambedkar Hastshilp Vikas Yojna iv. Engagement of expert/ consultants/institutions, etc., for providing need based assistance including guiding and monitoring. v. Credit Guarantee (Departmental activity) PART V CLUSTER SPECIFIC INFRASTRUCTURE RELATED INTERVENTIONS. i. Establishment of Resource Centre for major crafts ii. Establishment of E-kiosks iii. Creation of Raw Material Banks iv. Setting up of Common Facility Centre. v. Technological assistance by setting up of Facility Centres by Exporters/Entrepreneurs, etc. ELIGIBLE ORGANIZATIONS :1. Reputed NGOs, Cooperatives, Apex cooperative societies, Trusts. 2. Reputed Organizations’ -COHANDS, EPCH, CEPC, MHSC, IICT, NCDPD, NIFT, NID, University Deptt., DRDA, NISIET, EDIs, 3. Central/ State Handloom and Handicrafts Development Corporations and other related Govt. Corporations/ agencies promoted by State Government or Financial Institutions. 4. Federation of NGOs/ SHGs Consortium, Associations/Federations/Consortium of entrepreneurs, Designers, Exporters. 5. Organizations registered under section 25 of Company act (Non profit), etc. 6. Organizations registered under proper statute of state / Central govt., for sustainable development of identified craft clusters. Note: For few specific components eligible organizations are mentioned along with the details of the components and only those organizations will be eligible for implementing such components. Outcome and Deliverables of AHVY Scheme: a) Effective collective participation of all members involved in production and marketing process for optimal growth in human resource, 8 production, business and income. b) Creation of centers of excellence (based on philosophy of cooperation) with well integrated forward & backward linkages. c) Up gradation of artisan’s skill through appropriate design & technology intervention so as to enable them to use quality raw material, tools and equipments to produce value-added items. d) Self Sustained and self managed Artisans clusters e) State of Art, CFC to enhance production capacity f) Ability of artisans to sustain and grow in the competitive market. Part-I SOCIAL INTERVENTIONS 1. DIAGNOSTIC SURVEY AND FORMULATION OF PROJECT PLAN & COMMUNITY EMPOWERMENT FOR MOBILIZATION OF ARTISANS INTO SELF HELP GROPUS (SHG’S). Objective & Methodology: a) Diagnostic survey of the identified clusters is the prima-facie requirement for ascertaining the needs of specific interventions required for making the clusters self-sustainable. b) Mobilization of the beneficiaries shall be undertaken in the clusters where diagnostic survey has been completed. This activity shall include mobilizing the artisans into SHGs, thrift and credit, training of SHGs on various aspects of forming and running the community business enterprise. With introduction of economic reforms through liberalization, privatization and globalization, India has entered into a new era of economic development and therefore, Community Empowerment programme for handicrafts sector/ cooperative/ SHGs is a must to empower the artisans by making them active Scheme of the Office of Development Commissioner (Handicraft) Babasaheb Ambedkar Hastshilp Vikas Yojna entrepreneurs-cum-primary stake holders of development and bringing them to a visible platform so as to enhance their operational efficiency and competitiveness to face the new challenges and make them viable and self supporting economic entity. Financial Assistance & release of funds : Financial assistance will be provided to the tune of Rs.500/- for the number of persons to be surveyed in the form of grant in aid subject to a maximum of Rs. 1.50 lakhs per cluster up to a cluster size of 500 artisans. An additional assistance of Rs. 300 per artisan will be provided for those clusters having more than 500 artisans. Funds will be released in two installments i.e 50% as advance and balance as reimbursement. Deliverables: The out put of the baseline survey would be in the form of detailed project report indicating the needed interventions in order of priority, indicating the sequencing of the implementation of the interventions and concurrent activities etc. The project report shall also include the requisite details under each of the activities that would be undertaken for different components of this scheme including activity-wise, financial implications, means of financing, pattern of release of funds, implementation schedule and duration, deliverables and bench mark for assessment of effectiveness of the intervention. 2. ISSUE OF IDENTITY CARDS Objectives and Methodology: To give an identity to the Handicrafts Artisans. The identified artisans will be given Photo Identity card. Agencies having necessary infrastructure to undertake the work will be identified by this office. Financial Assistance & release of funds : Assistance to the tune of Rs. 25/- maximum per card, software and training for this work will be provided by this office. Payment will be made through Other Charges. Deliverables: A photo identity card to each artisan. Part-II TECHNOLOGICAL INTERVENTIONS 1. DEVELOPMENT AND SUPPLY OF IMPROVED MODERN TOOLS Objective: To improve the productivity of the craftsmen and their income, there is a need to develop standardized tools and equipments for each major craft and facilitate their access to artisans. Financial Assistance & release of funds : Note: Financial assistance to the tune of Rs. 5,000/Besides, the activity of Diagnostic survey and per tool kit. The pattern of assistance is 100% grant in mobilization of artisans will also be undertaken advance. departmentally for the clusters identified by this Deliverables: office of the D.C (H) through feed back received A set of improved tool kit to each artisan based from the Regional Offices and Field Offices for on the craft practiced. preparation of business plan to operate the clusters as viable economic enterprise. Implementing 2. DESIGN AND TECHNICAL Partners for this purpose will be identified and DEVELOPMENT WORKSHOPS finalized by a committee headed by AS&FA with DC (H) & ADC (H) in charge as members. Financial Objective: implication for this purpose is finalized on case-toTo develop new prototypes to suit the tastes and case basis based on the methodology, input and preferences of contemporary market using the expected deliverables of the proposal. In this case traditional skill of artisans and introduction of new payment will be made through other charges. techniques and technologies for enhanced production. Scheme of the Office of Development Commissioner (Handicraft) 9 Babasaheb Ambedkar Hastshilp Vikas Yojna S.No. Item of the Expenditure Funds permissible 1. Designers fee TA.DA, etc 2. Cost of raw materials for development of at least 15 prototypes x two sets 30,000/- 3. Cost of documentation 10,000/- 4. Wage compensation for 30 participants @ Rs. 150/Per day for a duration of 15 days 5. Miscellaneous expenditure towards site preparation, Light refreshments, etc Total Standardization of products based on the feedback & test marketing Documentation 60,000/- Parameter S.No. Item of the Expenditure Funds permissible Designer Fee including TA/DA 2,50,000/- 2 Cost of prototypes for 2 set of 40 prototypes minimum 2,00,000/- Cost of documentation, report, etc., 1,00,000/- survey/identification of improved tools, gadgets, dies, etc for mass production 1,00,000/- Wage compensation to 50 crafts persons @ 500/- per month for 6 months 1,50,000/- Market impact survey & Test marketing 1,00,000/- Misc.Exp. towards site preparation, light refreshment, etc 1,00,000- 67,500/3 12,500/- 4 1,80,000/maximum 5 Parameters: Duration of the workshop : 15 days, No. of participants per workshop : 30 artisans minimum workshop Financial Assistance & release of funds: Extent of Government assistance available is 100% and funds will be released in 2 installments i.e. 50% as advance and balance as reimbursement. Deliverables: A set of 15 prototypes developed. Enhanced skill of artisans. Awareness of new designs, techniques & tools. Documentation report comprising details of cluster, craft, tools, prototypes, participants, etc., 3. INTEGRATED DESIGN AND TECHNICAL DEVELOPMENT PROJECT: Objective & methodology: The project covers the following activities: Study of clusters to understand the skill, present product ranges, raw material & tools used, etc., Study of market to assess the product demand Development of new prototypes/ diversified product range to suit International/domestic market requirement Development of new tools, process, techniques, etc, for mass production Test market of new products 10 1 6 7 TOTAL 10,00,000/ maximum Duration of the design project up to 06 months maximum No. of participants per project 50 artisans minimum No of prototypes to be developed 40 prototypes in two sets Financial Assistance & release of funds : Extent of Government assistance available is 100% and funds will be released in 2 installments i.e. 50% as advance and balance as reimbursement. Deliverables: A set of 40 new prototypes developed Improved tools/techniques/gadgets identified Preparation of Documentation report Enhanced market reach Business increase to individual artisans Survey report of technology, market, etc., Scheme of the Office of Development Commissioner (Handicraft) Babasaheb Ambedkar Hastshilp Vikas Yojna 4. a) TRAINING FOR HANDICRAFTS OTHER THAN CARPETS 4. b) TRAINING FOR CARPETS Objective: Objective: In order to increase production base and upgrade the skill of artisans in the clusters. In order to increase production base and upgrade the skill of artisans in the clusters. Parameters: permissible S.No. Item of the Expenditure Funds permissible S.No. Item of the Expenditure Funds permissible 1. Honorarium to Instructor @ Rs. 4,000/- per month x 6 months x 2 48,000/- Compensation for wastage of rawmaterial not exceeding Rs. 500/per trainee per course for 40 trainees 20,000/- 1 Honorarium to Instructor @ Rs. 4,000/- per month x 4months 16,000/- 2. Compensation for wastage of rawmaterial not exceeding Rs.500/per trainee per course for 20 trainees 10,000/- Tool-Kits allowed @ Rs. 1,000/per trainee/per course for 20 trainees 20,000/- 4. Rent @ Rs. 2,000/- p.m for 4 months 8,000/- 4. Rent @ Rs. 2,000/- p.m for 6 months 5. Wage compensation for trainees @ Rs, 1,500/- per month for 4 moths for 20 trainees 1,20,000/- 5. Wage compensation for trainees @ Rs, 1,500/- per month for 6 moths for 40 trainees 3. 6. Contingency for entire session Total 2. 3. 7,000/- 6. 1,81,000/maxmimum Parameters: Duration of Training Course : Up to Maximum of 4 months. No. of trainees per course : 20 artisans / Instructor per course : : 1 (one) In case the No. of trainees increases or decreases according to the size of the cluster, reduction of training duration the amount would be increased/ decreased proportionately on pro-rata basis depending on the subhead. 8 number of improved looms with accessories @ Rs.16,000 per loom (50% to be shared by I.A) Contg. for entire session Total 1,28,000/12,000/- 3,60,000/7,000/5,75,000/-* maximum Out of Rs. 5,75,000, Rs. 64,000 will be the share of implementing agency. * Duration of the training up to 06 months Course maximum No. of trainees per course 40 artisans minimum Instructor per course 2minimum Financial Assistance & release of funds : Extent of Government assistance available is 100% and funds will be released in 2 installments i.e. 50% as advance and balance as reimbursement. In case the No. of trainees increases or decreases Financial Assistance & release of funds : according to the size of the cluster, reduction of Extent of Government assistance available is training duration the amount would be increased/ 100% and funds will be released in 2 installments decreased proportionately on pro-rata basis i.e 50% advance and balance as reimbursement. depending on the subhead. Deliverables: Deliverables: Enhanced skill, confidence and production Enhanced skill, confidence and production capacity of artisans and clusters increased. capacity of artisans. Scheme of the Office of Development Commissioner (Handicraft) Improved looms/technology Access to new technology 11 Babasaheb Ambedkar Hastshilp Vikas Yojna 5. ORGANISING SEMINAR AND SYMPOSIUM. Objective: Organize interactive sessions of different nature to focus on policy issues/ problems, sharing experiences of different clusters to improve system efficiency through problem solving and the experience sharing as a part of learning process. Parameter: 1 2 3 4 5 6 Hire charges for venue for 2 days Including hiring of furniture etc. 20,000/Lodging and Boarding expenses for 30 persons Including craftpersons (for 4 days) 2,00,000/TA and DA during journey period 2,40,000/Honorarium for expert and his team per day Rs. 60,000 x 2 days, if engaged. 1,20,000/Documentation and Misc. expenses including postage and preparation of material for discussions, secretarial assistance. 60,000/Hire of conveyance 30,000/Total 6,70,000/maximum Financial Assistance & release of funds: Extent of Government assistance available is 100% and funds will be released in 2 installments in the following manner In case of NGO/Implementation Partners 50% of Grant in aid as advance and balance as reimbursement. In case of departmental activity 90% advance and 10% by way of reimbursement and expenditure will be met out from Other Charges Note: In case of increase/decrease of number of participants & duration of programme the amount in question would proportionately increased/ decreased under the relevant heads on pro data basis. 12 7. TECHNOLOGICAL STATUS AND NEED BASED STUDY WITH PROVISION FOR NEED BASED RESEARCH: Objective: To ensure availability of appropriate technology process and infrastructure to enhance productivity and quality of the product. Financial Assistance & release of funds: For this component maximum provision of Rs. 5.00 lakhs per programme will be provided as financial assistance in the form of Grant-in-aid. Funds will be released in two installments. 50% in advance and 50% as reimbursement. Note: Cluster implementing partners have to provide a detailed justification for conducting such study while submitting such proposal and its utility for the cluster. Part-III MARKETING INTERVENTIONS 1. ORGANISING EXHIBITIONS Objective: To provide a marketing platform to show case and test market the products developed by the artisans of the clusters throughout the country. Parameter: Number of artisans : 15 Artisans minimum, inclusive of 4-5 artisans for demonstration Duration of the programme : 10 days minimum Financial Assistance & release of funds: a) For states other than NER & J & K : Rs. 1,85,000/- per event with 25 % share from the implementing agencies. An amount of Rs. 1, 38,750/- subject to the actual / whichever is less Scheme of the Office of Development Commissioner (Handicraft) Babasaheb Ambedkar Hastshilp Vikas Yojna is reimbursable on completion of the event. Participants invited for demonstration only are eligible for TA/ DA. The participants should invariably from the SHGS. b) For organizations hailing from NER & J&K if organized out side their respective region They are eligible to reimburse 100% of Rs. 1,85,000/- and Rs. 2,000 per artisan subject to a maximum of Rs. 30,000/- will be provided as transportation charges i.e. total Rs. 2,15,000. All participants invited for sale and demonstration are eligible for TA/DA. The above amount is reimbursable on completion of the event. c) Organizations hailing from NER & J&K if organized within their respective region: Rs. 1,85,000/- per event with 25 % share from the implementing agencies. An amount of Rs. 1, 38,750/- subject to the actual / whichever is less reimbursable is reimbursable on completion of the event. No transportation charge is permissible and TA/DA is only permissible to the artisans invited for live demonstration. The above amount is reimbursable on completion of the event. Deliverables: Continuous marketing platform is ensured to keep the pace of the activity at the cluster level which could ensure participatory business mode in the long run. Direct interaction between the producers and consumers which would help artisans to understand the need of the buyers 2. PUBLICITY THROUGH PRINTING AND ELECTRONIC MEDIA Objective: Create awareness about the hand crafted products and thus opening up new opportunities for boosting the sales of handicrafts in India and abroad through various kinds of publicity mediums. Financial Assistance & release of funds: For proposals of printing for brochures, catalogues, folders, craft maps, craft directory, electronic media, etc., the assistance will be as below:- S.No Type of Publicity No. Total of copies Amount of assistance Govt. share Share of (75%) NGO (25%) 1 Printing of catalogues 3,000 3,60,000 2,70,000 90,000 2 Printing of Brochures 5,000 2,25,000 1,68,750 56,250 3 Printing of Folders 5,000 1,50,000 1,12,500 37,500 4 Printing of craft maps 3,000 3,60,000 2,70,000 90,000 5 Printing of craft directory, etc 3,000 3,60,000 2,70,000 90,000 6 Launching of web site NA 8,00,000 6,00,000 2,00,000 Allied hardware and equipments worth Rs.2, 00,000/is allowed. 7 Creation of CD Rom NA 8,00,000 6,00,000 2,00,000 8 Making of video film-15 minutes duration minimum NA 8,00,000 6,00,000 2,00,000 9 Catalogue shows on internet NA 8,00,000 6,00,000 2,00,000 10 Printing of books on crafts, advertisement through posters, Bus panels, hoarding, As the expenditure is not feasible to fix, since it involves reputation, site requirement. The financial assistance will be on merit & case to case basis. The sharing of the expenditure between Govt. and partners will be on 75: 25. Scheme of the Office of Development Commissioner (Handicraft) 13 Babasaheb Ambedkar Hastshilp Vikas Yojna Financial Assistance & release of funds: Extent of Government assistance available is 75% and funds will be released in 2 installments i.e 50% as advance and balance as reimbursement. In case of departmental activity 100% financing will be allowed. Note: In case of the proposal for printing of Brochure, Folders/Maps, Catalogues etc. of products of RD&TDCs, BCDI, MHSC, etc. of the Office of the Development Commissioner (Handicrafts), 100% assistance would be available to the implementing agencies. Deliverables: Development of quality publicity aids such as Catalogues, Brochures, Folders, CDs, website, etc., Maximizing the awareness in domestic and international market about the handicrafts products. 3. MARKETING ASSISTANCE THROUGH SETTING UP OF EMPORIA Objective: To provide marketing facilities on a permanent basis to the craftpersons through setting up of sales outlets in own building (including building purchased on outright sales), rented building with a provision for renovation in every five years. Eligible Organizations: Central/State Handicraft Development Corporations. Apex co-operative Societies. l l Organization of Artisans’ Federations, etc, Financial Assistance & release of funds: I. For setting up of emporia in Own Building/ready built building, the extent of financial assistance from Central Government will be 50% of the project cost subject to the maximum of 23,00,000/l New Emporium (own building & on ready built building purchased) Only Non recurring expenditure will be admissible. 14 (a) 1st Instalment : 50% of the share of the Office of the D.C (H) subject to fulfillment of conditions that the MOU is signed (b) 2nd instalment : 25% of the share of the O/o. the D.C(H) on receipt of audited statement of expenditure for the Ist installment and relevant documents/report. (c) 3rd & final installment will be Released in the shape of Reimbursement : 25% of the share of the O/o. the D.C(H) or the balance admissible amount on completion of the project as per guidelines and submission of Final Consolidated audited statement of accounts along with necessary documents. II. For setting up of emporia in Rented Building, the extent of financial assistance from Central Government will be of 50% of the project cost subject to the maximum of 11,50,000/New Emporium (in rented building) Recurring & Non-recurring expenditure both will be admissible. (a) 1st installment 50% of the share of the Office of the D.C (H) subject to fulfillment of conditions that the MOU is signed. (b) 2nd installment : 25% of the share of the O/o. the D.C(H) on receipt of audited statement of expenditure for the Ist installment and relevant documents/report (c) 3rd & final Installment in the shape of reimbursement 25% of the share of the O/o. the D.C(H) or the balance admissible amount on completion of the project as per guidelines and submission of Final Consolidated audited statement of accounts along with necessary documents. III. For renovation and extension of the existing emporia after five years the extent of financial assistance from Central Government will be 50% of the project cost subject to a maximum of Rs. 5,75,000/-The assistance will be extended only once during the project period Renovation/Expansion of existing emporium Non-recurring expenditure, only once in the project period will be admissible. Scheme of the Office of Development Commissioner (Handicraft) B a b a s a h e b A m b e d k a r (a) 1st installment : 50% of the sanctioned amount. (b) 2nd installment : 50% of sanctioned amount to be released in the shape of reimbursement of balance expenditure after issue of UC of 1st installment (whichever is less) Deliverables: A permanent sales out let is established to keep the momentum of the cluster activity and thus ensuring enhanced income to the cluster artisans. 4. (a) MARKET ASSESSMENT AND PRODUCT STUDY TOUR FOR THE ARTISANS/STAKEHOLDERS. Objectives: To understand market trend in terms of design, product utility, etc., in order to ensure enhanced market penetration and higher economic gain to the artisans. Under this component artisans/stake holders could visit successful clusters to study, understand and adopt the methodology/process followed by such clusters Financial Assistance & release of funds: Extent of Goverment avtable is 100%. Financial assistance to the maximum of Rs. 4.00 is available which be released in 2 installments i.e 50% as advance and balance as reimbursement. Deliverables: Enhanced knowledge on product relevance, market, alternate methods, etc., Innovations transfer/Best practices transfer by mutual learning 4. (b) STUDY CUM EXPOSURE TOUR Objective: To provide exposure to the best practices, prevailing through field visit in India and abroad with a view to adopt and learn them for promotion and development of this sector and capacity building. Financial Assistance & release of funds: Financial assistance will be on case to case basis and based on the merit. Extent of Government assistance available is 100% and funds will be released in 2 installments Scheme of the Office of Development Commissioner (Handicraft) i.e 50% as advance and balance as reimbursement Deliverables: Exposure to best practices of other clusters and enhanced knowledge 5. ESTABLISHMENT OF WAREHOUSING FACILITY AND COMMON WORKSHED To provide storage space for finished products and raw materials & working place to the artisans’groups at the cluster level, Financial Assistance & release of funds: Maximum of Rs. 1,00,000 per work shed will be provided under this component. Extent of Government assistance available is 100% and funds will be released in 2 installments i.e 50% as advance and balance as reimbursement. Deliverable: Hygienic working condition with storage facility and thus increase in quality and quantity Note: At least two months prior to submission of the proposal for assistance under this component, one General Body Meeting of the federation/SHGs should have been held and at the time of submission of the proposal 50% in proportionate to the cost of the proposal should have been kept ready in the bank account of the federation/SHGs or as the case may be. 6. ENTREPRENEURSHIP MENT PROGRAMME DEVELOP- Objective: To provide necessary inputs through training for the cluster artisans for development of entrepreneurship quality. Financial Assistance & release of funds: Financial assistance to the tune of Rs. 2.00 lakhs will be provided per batch of training consisting of 20 artisans. Extent of Government assistance available is 100% and funds will be released in 2 installments i.e 50% as advance and balance as reimbursement 15 Babasaheb Ambedkar Hastshilp Vikas Yojna Deliverables: Development of managerial skill of the artisans to perform the activities of the cluster on business mode and enhanced confidence level. Part-IV FINANCIAL INTERVENTIONS 1. MARGIN MONEY SUPPORT To assist the artisans’ federations at the cluster level to avail loan/assistance from banks and financial institutions and thus enhance their corpus to improve their existing business level. Thus providing a provision for working capital. Eligible Organizations: Association/Federation of SHGs at the cluster level, Entities like SPV/ company registered under Section 25 of the Company Act, Cooperatives, etc created by the artisans. Financial Assistance & release of funds: The assistance would be @ Rs. 4000/- per artisan of the SHGs with a maximum ceiling of Rs. 5,00,000/- per cluster. Extent of Government assistance will be 100% which will be released in one installment. Deliverables: Generation of common corpus with enhanced credit facilities and therefore transform the artisans’ groups into a primary stake holders of the project. Note: The amount of margin money so provided would be converted into one time grant once the grantee generate their pool equals to the amount of Margin Money. Corpus will not include loan generated TO Objective: Provide financial assistance to the cluster manager to take care of the day to day activities of the cluster like book keeping, coordination with state 16 Financial Assistance & release of funds: An amount of Rs. 2756/- per month for 60 months and payment will be made year to year on reimbursement basis. Deliverables: Streamlining the activities at the cluster level , maintaining a record of events, etc., 3. SERVICE CHARGES IMPLEMENTING AGENCIES Objective: 2. WAGE COMPENSATION CLUSTER MANAGER government departments, etc, to provide continuous support to artisans. TO Objectives: To provide a token of appreciation to the Implementing Partners for the work undertaken successfully at the cluster level. Financial Assistance: 5% of the total amount released during the project period with a higher ceiling of Rs. 1,00,000/ - for projects implemented up to Rs. 25,00,000/- and for the project of more than 25,00,000/- the ceiling is Rs, 1,50,000/-. The ceiling and financial assistance indicated are for the whole project period. Release of funds: The assistance will be provided on yearly basis during the project tenure which will be 5% of the amount released including reimbursement amount at the end of each year Deliverables: Ensuring increased efficiency at the implementation part by the Implementation Partners. 4. ENGAGEMENT OF EXPERT/ CONSULTANTS/INSTITUTIONS, ETC, FOR PROVIDING NEED BASED ASSISTANCE INCLUDING GUIDING AND MONITORING Objective: Provide continuous handholding to the Implementation Partners in every level of implementation to get optimum results out of the sanctioned activities through planning, scheduling and monitoring. Scheme of the Office of Development Commissioner (Handicraft) Babasaheb Ambedkar Hastshilp Vikas Yojna Eligibility: Professionally managed Consultancies of National/International repute Professionals, management consultants, etc., those who possess a good track record in working with artisans cluster based activities. Enterprenuering Agencies of repute with sound resources and background on handicraft sector/ Socio-Economic Sector. will be provided to the consultant to provide consultancy support to the implementation partner. For continuous assistance and consultancy support release of funds will be on the basis of the requirement/proposals of the consultant subject to a maximum of Rs.1.00 lakh per year. In case of one time requirement actual fee subject to a maximum of Rs. 5.00 lakh will be paid in two installments i.e 50% as advance and balance as reimbursement. Government Agencies/Government sponsored Agencies like DRDA, RGVN, etc, with good 5. CREDIT GUARANTEE SCHEME FOR HANDICRAFTS ARTISANS track record. NGOs of National / International repute with Objective: good track record. To alleviate the problem of collateral security or 3rd party guarantee and remove impediments to flow of Agencies involved in successful implementation credit to handicrafts sector. of AHVY. Successful Implementation Agencies working Eligibility: with other Ministries. The handicraft artisans/manufactures/ producers/Self Help Groups who are engaged in Roles and Responsibilities will include: manufacturing activities in Handicrafts Sector are Provide expert consultancy support to the covered under Credit Guarantee Scheme. organization through out the project period Financial Assistance Assist the Implementation Partner in forming Under this scheme credit guarantee cover of up federation/ Artisan entity registered under to 75% of the credit facility is provided subject to Section 25 company maximum of Rs. 18.75 lakhs for the loans upto Rs. Phasing out the cluster activities and reporting the output and drawback if any to the office of 25 lakhs. This guarantee cover is extended to all the lending institutions (Member Lending Institutions) the D.C (H) that are member of CGTSI. To avail this facility Guidance to Implementing Agencies in terms CGTSI is paid following guarantee money: of market intelligence, technology and design a) A one time guarantee fee at specified rate input as per the requirement of the clusters. (currently 1.5 per cent) of the credit facility Guidance as a resource agency for transfer of sanctioned, (comprising term loan and/or technology to the cluster groups through working capital facility) shall be paid upfront common design & technology programmes. to the Trust. Guidance in terms of coordination with other A one time guarantee fee at specified rate developmental partners both Govt, and Non- (currently 1.5 per cent for credit up to Rs. 2.00 Govt., including banks and financial institutions. Lakhs) of the credit facility sanctioned, (comprising Guidance as a resource agency for putting in term loan and/or working capital facility) to be paid place a reliable and sustainable supply chain upfront to the Trust by the eligible institution mechanism. availing of the guarantee shall be paid by Office of Guidance in order to ensure functioning of the Development Commissioner (Handicrafts). cluster in sustainable mode. b) The annual service fee at specified rate (currently 0.75% per annum) on the credit Financial Assistance & release of funds: sanctioned. Financial Assistance to the tune of Rs. 5.00 lakhs Scheme of the Office of Development Commissioner (Handicraft) 17 B a b a s a h e b A m b e d k a r (b) Department of Handicrafts would provide per centre (in cash or in kind) 3 computers, UPS, one printer, one scanner and one digital web camera and other hardware and software applications such as Adobe Photoshop, PageMaker and Corel Draw and part of monthly maintenance expenses. Aim of this component is to make easy availability of quality, certified and graded raw material to the artisans/entrepreneur at a reasonable rate. (c) The implementing agency would provide a grant to the NGO which would cover monthly maintenance expenses of the centre, honorarium for the centre coordinators, electricity bills, connectivity expenses, etc. Additionally, agency would provide continuous training and handholding to the NGOs to set-up, manage and sustain the centres. Agency would also make available content and services which would enhance the value of the centre and would help it become a knowledge centre in the true sense. The knowledge centre coordinators would be trained to provide support to local craftsmen and other community members to utilize the centre to its full capacity to enhance their livelihood opportunities. Eligibility: The partner can be a Government autonomous bodies/Council/Apex bodies, an SPV promoted by banks/financial institutions and corporate bodies/ Financial Assistance & release of funds: Government of India would provide an one time grant of maximum of Rs. 3.5 lakhs per E-kiosk to the designated agency for procurement of software and hardware & recurring expenditure for Administrative expenses. 75% of the grant will be for procurement of hardware and 25% will be for administrative. These 25% will be released in three installments subject to a maximum of Rs. 28,000 per annum for a maximum of 3 years. 3. SETTING UP OF RAW MATERIAL BANK Objective: Scheme of the Office of Development Commissioner (Handicraft) State Handloom & Handicraft Corporations/Govt. Joint Ventures, Consortium of NGOs / Exporters bodies/association of exporters etc. registered under relevant acts. Selection Process: Expression of interest will be invited through open advertisement in the newspapers. The project report will be examined by a committee of officers consisting of officers of Office of the DC (H) and IFW and will be considered for grant once the proposal is accepted by the committee. Management Structure : To be managed in private sector in a partnership mode with Government. A core committee may be created for supervising and policy related matter. Core committee should consist of representative of all partners engaged. The committee will frame the modalities and ensure proper & bonafide rotation/ distribution of raw material, fair pricing etc. Financial Assistance & release of funds: A grant of two crores will be provided to the eligible body in staggered manner for capital rotation. The Organization / Implementing partner, first has to submit a project report indicating the management structure, inventory management financial support available, channel for distribution & its mechanism etc. Depending on the report the financial support & its extent may be decided. At the most the grant may be released in 3 installments. 1st installment of 50% subject to a maximum of Rs. 1 crore shall be released once the partner has provided proof of storage area. Once the grant is released the subsequent installments will be conditional in the following manner. 2nd installment of Rs. 50 lakh will be released when the actual rotation of capital has been 100% of the 1st installment and at least a 10% increase in the raw material corpus in terms of quantity has been achieved. 3rd installment of 50 lakh will be released once the total capital rotation of 100% of the total grant sanctioned (1st & 2nd installment) has been achieved. In other words, if the value of raw material off take from the Raw Material Bank achieve 100% of the amount of grant released and if the earnings/ 21 Babasaheb Ambedkar Hastshilp Vikas Yojna increase in the value of the corpus of raw material is 20% of the initial corpus. The total grant provided will be considered as utilized if the total off take after 3rd installments becomes equal to 125% of the total grant released (1st, 2nd and 3rd installments) and corpus has increased by 35%. An additional amount of maximum of 5% may be granted for preparation of project report and Business Plan for Raw Material Bank. This will be reimbursed in case the organization is selected for implementation of scheme. An MOU will be signed between the grantee and Office of the Development Commissioner (Handicrafts) incorporating different aspects related to functioning of Raw Material Bank. Accordingly yearly targets to be achieved in terms of physical & financial parameters will be fixed and in case non - achievement the Govt. will forfeit the raw material to the extent of grants released. Further for a period of five years, yearly quantitative increase in corpus/stock of raw material in quantitative terms may be fixed depending on the raw material which will be indicative of functionality of Raw Material Bank. 4. SETTING UP OF FACILITY CENTRE. COMMON Objective: To ensure economy of scale, price competitiveness, quality control, application of Design and Technology input on continuous basis, scope of product diversification and higher unit value realization and compliance with WTO compatible standards. Parameter: Financial Assistance & release of funds: Extent of Government assistance available is 100% and funds will be released in 3 installments i.e. 50% as Ist installment, 40% as 2nd installment and 10% is reimbursable. 1 22 Building (Land to be provided either by Beneficiaries or by State Govt./Panchayat) 2 3 Fixed Assets 4 Expenditure towards training of machine operators 5 Contingency 6 Erection & Commissioning Total 45,00,000 90,000 1,00,000 60,000 2,50,000 60,00,000/maximim In case an organization not availes Rs. 60.00 lakh at one go then further assistance can be provided after 3 years for modernization of the same CFC. The 2nd assistance will be 30% of the 1st assistance or the amount left out of Rs. 60.00 lakh whichever is less for which extent of Government assistance available is 100% and funds will be released in 2 installments i.e. 50% as advance and balance as reimbursement. Deliverables: Creation of infrastructure at cluster level to enhance production, quality and quantity by using new modern tool, equipment and techniques and thereby increased economy of scale. 5. SETTING UP OF FACILITY CENTRES BY EXPORTERS/ ENTREPRENEURS Objective: To extend the technological up gradation facility to organizations other than AHVY implementation partners for healthy export enterprise and to earn higher foreign exchange. Eligibility: Exporters and Entrepreneurs those are not implementing AHVY concurrently Financial Assistance & release of funds: 1 2 10,00,000 Tools Machinery & Equipment related to production and testing including Computer installations, etc. Tools Machinery & Equipment including computer installations 55,00,000 Erection & Commissioning 5,00,000 Total 60,00,000 maximum Scheme of the Office of Development Commissioner (Handicraft) Babasaheb Ambedkar Hastshilp Vikas Yojna The financial pattern would be based on 30:70 Government of India (GOI) will be signed before sharing between the Government of India through release of funds the Office of the D.C [H] and the Exporters/ 2. The ownership of assets created under this Entrepreneurs respectively. component of Facility Centre will be to the extent of the grant / assistance from the Release of funds Government of India. Release of funds will be of 100% reimbursable on completion and commissioning of the Facility Deliverables: Centre in all respect. Creation of infrastructure with modern machineries to support product, productivity, quality, Ownership of assets 1. MOU between exporters/entrepreneurs and etc., Scheme of the Office of Development Commissioner (Handicraft) 23