Mill Gate Price Subsidy Scheme

The Commissioner of Cottage and Rural Industries, Industries & Mines Department, Government of Gujarat, administers the Mill Gate Price Subsidy Scheme, operational since 2007. Its purpose is to supply handloom weavers with quality yarn at reduced rates, thereby lowering costs and improving the standard of finished products. Support includes freight reimbursement ranging from 1% to 8.5%, depending on yarn type and region, along with a 15% subsidy on yarn acquired from depots recognised by NHDC.

Eligibility extends to handloom cooperatives, NGOs, and development centres. Implementation is carried out through District Industries Centres (DICs). The scheme is designed to maintain employment for economically disadvantaged weavers, with a particular focus on those from Scheduled Castes. By easing the financial burden of raw material procurement, it strengthens the economic position of handloom weaving and aids in sustaining traditional crafts. This mechanism supports rural industries and communities reliant on handloom production, contributing to both economic stability and cultural preservation. Its targeted attention to vulnerable groups, especially Scheduled Castes, reflects the state's objectives of social advancement and inclusive growth.

- **Step 1: Procure Yarn**: The applicant must first buy the required yarn from any depot recognised by NHDC. These depots verify the quality and eligibility of the yarn for the subsidy. - **Step 2: Collect the Application Form**: Go to the District Industries Centre (DIC) in your district and ask the designated staff member for a hard copy of the prescribed application format. The form is generally not accessible online, as the process is conducted offline. - **Step 3: Fill and Assemble Documents**: Complete all mandatory sections of the form carefully. Attach every required supporting document, including proof of yarn purchase, registration papers of the cooperative or NGO, and any other relevant identity or operational records. Self-attest copies wherever necessary. - **Step 4: Submit the Application**: Hand over the signed and completed form, along with all required documents, to the authorised staff at the DIC. Submission must occur within any timeframe the DIC specifies. - **Step 5: Secure an Acknowledgement**: Always ask for and keep a receipt or acknowledgement from the staff member after submission. This document confirms your application and helps in tracking its status.

The assessment is a compliance check conducted by the District Industries Centre (DIC). After an application is submitted, DIC staff examine the form and its attachments to confirm eligibility, such as the applicant's entity type and evidence of yarn bought from NHDC-approved depots. The submission is then checked against the scheme's guidelines to ensure all conditions are met.

Once the documents pass verification and every criterion is satisfied, the yarn purchase subsidy is released directly through RTGS or e-payment. Freight reimbursement is processed as a separate transaction. No competitive ranking or scoring is involved in this procedure.