J&K Handicraft Working Capital Subsidy
Industries & Commerce Department, Government of Jammu & Kashmir · Central government
A one-time subsidy of up to 10% of a handicraft unit's one-year working capital, capped at Rs 5 lakh, funds the unit's operations.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Up to ₹5,00,000
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Single lump sum
About this scheme
Under the J&K Wool Processing, Handloom & Handicraft Policy 2020, a handicraft unit may avail itself of a one-time working capital subsidy.
The subsidy is calculated at up to 10% of the working capital deployed over a single year, capped at Rs 5 lakh. It addresses the ongoing cash-flow strain typical of handicraft operations, which includes procuring raw wool, yarn and other materials, compensating artisans, and maintaining finished inventory across an extended sales period.
As the benefit is available only once, it is advisable to file the claim in a year when working capital deployment peaks, ensuring the 10% calculation approaches the Rs 5 lakh upper limit.
Who can apply
- Eligible business forms
- Not specified
- Udyam registration
- Not specified
- MSME registration
- Not specified
- DPIIT startup recognition
- Not required
- GST registration
- Not specified
- Where the business may be based
- Jammu and Kashmir
- Units in the handicraft sector in Jammu & Kashmir - Covered under the Wool Processing, Handloom & Handicraft Policy 2020 - One-time claim only - Subsidy computed on one year's working capital
How to apply
- Enrol the handicraft unit under the J&K Wool Processing, Handloom & Handicraft Policy 2020 through the Single Window portal. - Prepare a chartered accountant certificate detailing the working capital utilised over a one-year period. - File the claim for the one-time working capital subsidy, attaching bank statements and the CA certification. - The department checks the working capital amount and then applies the 10% rate and the Rs 5 lakh upper limit. - The subsidy is disbursed in a single instalment.
How applications are assessed
The claim is checked against certified working capital deployment, the policy’s 10% rate, and the Rs 5 lakh ceiling. There is no competitive selection process.
Frequently asked questions
How much is the subsidy?
Up to 10% of the working capital for one year, capped at Rs 5 lakh.
Can I claim it more than once?
No, it is a one-time working capital subsidy.
Who is eligible?
The J&K Wool Processing, Handloom & Handicraft Policy 2020 covers units operating in the handicraft sector.
Is it a loan?
No. The subsidy is provided against your working capital and does not need to be repaid.
What counts as working capital?
The subsidy equals 10% of the working capital the unit deployed over one year, as certified in the claim, subject to a maximum of Rs 5 lakh.
Where do I apply?
Through the J&K Single Window portal, as provided under the Wool Processing, Handloom & Handicraft Policy 2020.
Sectors
- Manufacturing Industrial
- Jammukashmir
- Handicraft
- Workingcapital
- Subsidy
- Handloompolicy2020
Details last verified on 9 September 2026. Source: the issuer's published information.