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
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(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
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(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