Financial Assistance Schemes For Handicrafts

Loan/Credit Granting Institutions
In order to seek guarantee cover in respect of the credit/loan to be sanctioned to the handicraft artisans by Member Lending Institutions (MLIs), an advance amount covering Guarantee Fee / Annual Service Charges payable by various MLIs to CGTSI , Mumbai has been sanctioned in favour of six MLIs. These MLIs are coordinator banks of State Level Banker's Committee.

  • United Bank of India
  • UCO Bank
  • Bank of Baroda
  • Bank of Maharashtra
  • State Bank of India
  • Oriental Bank of Commerce

Scope of the Financial Scheme

  • Survey / Studies of specific crafts for which adequate information are not available.
  • Problems relating to availability of raw material, technology, design, common facilities, etc.
  • Living and working conditions of artisans in specific areas or crafts .
  • Market evaluation studies of specific crafts for either domestic or overseas markets.
  • Techno-economic feasibility studies and post evaluation of the various promotional projects or programmes undertaken in the handicrafts sector.
  • Areas requiring special study for uplift of the weaker sections viz.,. Scheduled Castes and Scheduled Tribes.
  • Financial assistance for preparation of legal, para legal, standards, audits and other documentation leading to labelling / certification.
  • Financial assistance to organizations for evolving, developing a mechanism for protecting crafts, design, heritage, historical knowledge base, research & implementation of the same enabling the sector / segment to face challenges for utilizing the opportunities of post WTO regime.
  • Financial assistance for taking up problems / issues relating to brand building and promotion of Indian Handicrafts.
  • Any other problems / issues of specific nature relating to handicrafts sector.

Assistance under this schemes would normally be given to such projects, for which the O/o the DC (Handicrafts) is of the opinion that it would be desirable to utilize the expertise of an outside agency for assessment of any local problem or it would require an independent study. Such projects which could normally be conducted by the DC (Handicrafts) with its existing staff would not be conversed by this scheme.

Eligibility

Assistance under this scheme will be extendable to an organization registered under any of the statutory acts (Companies Act 1956, Societies Act 1860, Cooperative Act etc.) or registered with any bodies like DCSSI, O/o the DC (Handicrafts) etc. or universities and recognized research institutions. Generally, such assistance would not be extendable to any particular individual unless he is an eminent scholar or a person associated with promotion of handicrafts for a long time.

Pattern of Financial Assistance

The financial assistance would be in the form of grant-in-aid / other charges. The terms of payment, schedule of payment and the amount indicated in the proposal would require the approval of DC (Handicrafts), which, if necessary, may modify them. The advance, if any, payable to the grantee institution prior to the commencement of the project, would not normally exceed 50% of the total grant-in-aid sanctioned for the project. However, the DC (Handicrafts) may increase the advance, if found essential. Balance 50% amount would be released in 2 instalments, i.e., 25% as second instalment on receipt of the draft report along with audited statement of accounts & its presentation and acceptance of the report. Third instalment would be reimbursed after receipt of the final report along with audited statement of account. In the case of other charges the organization has to submit all the vouchers pertaining to the study.

Publication

  • All information gathered in the course of the study and findings shall not be made public through any form of media without the prior permission of this office.
  • Publication of any study, if found essential, in public interest, the institution undertaking the study may be so instructed to keep necessary provision in their estimates for printing.

Component of the Scheme

Departmental
The scheme covers incurring expenditure to cover establishment cost including pay & allowance of the staff of closed departmental Training Center in various crafts.The expenditure would be made as per the existing Government guidelines/rules.

Grant-in-Aid

  • Incurring expenditure for conducting field visits/study tours in India and Abroad to give exposure to designers and master craftspersons working in handicrafts sector with a view to enable them to learn and adopt best practices prevailing for promotion and development of handicrafts sector in India.
  • Financial Assistance for capacity building and to conduct awareness-cum-training workshops/seminars for artisans, NGOs etc. in various spheres related to handicraft sector.

Manner of Implementation
Eligible organization/experts shall be given financial assistance in the form of 100% grant-in-aid as turnkey assignment for taking up above assignments. Grant will be released in two installments, i.e., 50% as advance and 50% as reimbursement on the conclusion of the event.

The Office of the Development Commissioner (Handicrafts) shall identify the areas for training/refresher courses /filed visits / study tours etc. within Indian and Abroad as per requirements and thereafter the proposals from eligible organizations shall be invited and processed on merit.

Guidelines for Preparing the Proposals
All the eligible organizations /individuals shall be required to submit the proposal through office of the Development Commissioner (Handicrafts), concerned Regional office or through concerned State Government for taking up the assignment with the clearly defined terms of reference, output and timeframe. The organization/individual shall be selected through an open and transparent mechanism and only those organization/individuals shall be provided assistance under this scheme who have substantive experience in the concerned field (Not less then 5 year in respect of research projects.), which should be reflected through documented achievements of the organization/individuals and also curriculum vitae of the faculty of the organization should reflect the required competence so as to achieve the desired objective.

Eligible Organizations
The scheme shall be implemented departmentally as well as through reputed research institutions, registered organizations/public sector units, experts etc. specializing in concerned areas.

All organization/individuals seeking assistance under this scheme, therefore, have to fulfill the following criteria for becoming eligible for consideration:

1. Whether organization is eligible under the scheme
2. a) Registration Certificate and validity
    b) Artisans of Association
    c) Bye Laws
    d) Memorandum of Association
    e) List of office bearers
    f) Copy of report of last AGM
    g) Bio data of the Research Scholar/Expert
    h) Affidavit for non-corrupt practices
3. Copies of audited statement of last three years reflecting experience on development of handicrafts sector
4. Details of the programmes undertaken by the agency other studies pertaining to informal sector undertaken by the agency
5. Faculty members to be engaged in the programme with their qualification
6. Organization is profit making or non-profit making
7. Expected period of implementation
8. Expected benefit to the participants
9. Any previous grant pending settlement in the same section
10. Any previous grant pending settlement in any other section of Office of the DC (HC)
11. Affidavit from the organization about non-dependency of grant and black listed from other Department/Ministry

Submission of Proposals/Claims
The eligible organization shall be required to submit proposal as per the format taking into consideration guidelines mentioned above to the Office of the DC (Handicrafts) through Head Office, concerned Regional Office or through concerned State Government for taking up the assignments on a turnkey consultancy basis with a clearly defined TOR, output and time frame.