Mill Gate Price Subsidy Scheme
At a Glance
Scheme Category
Business & Entrepreneurship,Social welfare & Empowerment,Setting up / start-up / entrepreneurship,Credit Linked Subsidy,Financial assistance
Target Beneficiaries
Joint Liability Groups (JLGS),Self Help Groups (SHGS),NGO
Brief Description
The scheme provides 15% subsidy on yarn purchases from NHDC depots to handloom weavers, cooperatives, and NGOs, along with freight reimbursement (1–8.5%). Intended beneficiaries include weavers below the poverty line.
Benefit Type
Cash
Eligibility Criteria
- The applicant must be a handloom cooperative society, NGO, or development center. - The applicant must purchase yarn from NHDC-recognized depots (e.g., Gujarat State Handloom & Handicrafts Development Corporation).
Application Mode
Offline
Application Process
Step 1: The interested applicant should first purchase the yarn from NHDC-recognized depots (e.g., 12 depots in Surendranagar, 1 in Ahmedabad). Step 2: Visit the District Industries Centre (DIC) of his district, and request the hard copy of the prescribed format of the application form from the designated staff. Step 3: In the application form, fill in all the mandatory fields, and attach copies of all the mandatory documents (self-attest, if required). Step 3: Submit the duly filled and signed application form along with the documents, within the prescribed period (if any), to the designated staff at the DIC. Step 4: Request a receipt or acknowledgement from the concerned staff to whom the application has been submitted.
Required Documents
- - Purchase Invoices From NHDC-recognized Depots.
- - Proof of Registration (for Cooperatives/NGOs).
- - Freight Receipts (for Reimbursement Claims).
- - Bank Details for Subsidy Disbursement.
FAQs
Who is eligible to apply for the yarn subsidy under this scheme?
Handloom cooperative societies, NGOs, and development centers purchasing yarn from NHDC-recognized depots can apply.
What percentage of subsidy is provided on yarn purchases?
A 15% subsidy is offered on yarn purchased from NHDC-recognized depots.
From which depots must the yarn be purchased to qualify for the subsidy?
Yarn must be purchased from NHDC-recognized depots like Gujarat State Handloom & Handicrafts Development Corporation.
Is there any freight reimbursement available under this scheme?
Yes, freight reimbursement ranging from 1% to 8.5% is provided based on yarn type and region.
How is the freight reimbursement percentage determined?
It varies by yarn type (non-silk/jute, silk, jute/jute blended) and region (plain, hills/remote, North-East).
What additional charges are applicable for depot operations?
An extra 2.5% is charged for depot operating expenses.
How is the 15% subsidy amount disbursed to beneficiaries?
The subsidy is transferred directly to beneficiaries' accounts through RTGS or e-payment.
Is the freight reimbursement processed along with the yarn subsidy?
No, freight reimbursement is processed separately from the yarn subsidy.
What documents are required to claim the yarn purchase subsidy?
Applicants need purchase invoices from NHDC-recognized depots and bank details for disbursement.
What proof is needed for freight reimbursement claims?
Freight receipts must be submitted along with the reimbursement application.
Do applicants need to submit registration proof?
Yes, cooperative societies and NGOs must provide their registration documents.
Are individual weavers eligible for this subsidy?
No, the scheme is only for handloom cooperatives, NGOs, and development centers.