J&K Handloom Working Capital Subsidy

The J&K Wool Processing, Handloom & Handicraft Policy 2020 provides a one-time working capital subsidy for handloom units that use locally sourced materials in their production.

Eligible units can receive up to 10% of their working capital for one year, capped at Rs 5.00 lakh. This support is available to units that utilise local resources for both the production and marketing of handloom products.

The key eligibility criterion is the use of local resources. The incentive aims to encourage demand for J&K wool and yarn instead of imported inputs. As the subsidy is available only once, it is best claimed during a year when working capital deployment is at its highest.

- Enrol the handloom unit under the J&K Wool Processing, Handloom & Handicraft Policy 2020. - Provide evidence that both production and marketing rely on locally sourced resources. - Secure a chartered accountant’s certificate confirming working capital deployed over a one-year period. - Submit the one-time subsidy application, attaching financial statements and proof of sourcing. - The department reviews the claim and disburses 10% of working capital, subject to a ceiling of Rs 5 lakh.

Claims are not subject to a competitive selection process. Instead, each application is checked against the certified working capital figure, the requirement to use local resources, and the applicable 10% rate, which is capped at Rs 5 lakh.