MySubsidy

New Charkha-Loom Scheme

Cottage and Rural Industries Department, Government of Gujarat · Central government

Gujarat's scheme gives registered Khadi spinners and weavers a 65% subsidy on Amber Charkhas and looms to modernise production and raise productivity.

Open, rolling. Applications are accepted continuously — there is no deadline.

Key facts

Subsidy amount
₹8,450 – ₹19,500
Instrument
Subsidy
Deadline
Rolling
Disbursement
Single lump sum

About this scheme

## New Charkha-Loom Scheme

The Industries & Mines Department of the Government of Gujarat runs this scheme through the Commissioner of Cottage and Rural Industries. It targets the state's traditional Khadi sector by giving registered Khadi spinners and weavers financial help to buy Amber Charkhas and looms.

The scheme's purpose is to modernise how Khadi is produced. Subsidies for equipment purchase let artisans upgrade their tools, which is expected to raise productivity, efficiency and competitiveness.

Support of this kind serves two ends: sustaining India's hand-spun and hand-woven textile heritage, and giving individual artisans the means to compete in present-day markets. It also works to protect livelihoods in Gujarat's rural and semi-urban areas.

Who can apply

Eligible business forms
Sole proprietorship
Udyam registration
Not specified
MSME registration
Not required
DPIIT startup recognition
Not required
GST registration
Not specified
Where the business may be based
Gujarat

- The applicant is required to be a spinner or weaver registered under Khadi/Polyvastra. - A valid Khadi certification must be held by the applicant's organisation. - The equipment has to be bought for the purpose of active Khadi production.

How to apply

Applications under the New Charkha-Loom Scheme are submitted offline, which keeps the process within reach for artisans throughout Gujarat.

- **Step 1: Buy the equipment:** An applicant must begin by buying a new Amber Charkha or loom from a vendor that has been approved. The equipment then stands ready for inspection and verification. - **Step 2: Collect the application form:** To obtain the prescribed form for claiming the subsidy, the applicant visits a local Khadi institution, a Cottage Industries Office, or the nearest District Industries Center (DIC). The official format is issued by the staff designated for this purpose. - **Step 3: Fill in the form and attach documents:** Every mandatory field on the application form has to be completed with care. Copies of all supporting documents — including purchase invoices for the equipment and valid proof of Khadi certification — must be enclosed. - **Step 4: Submit and obtain acknowledgement:** The completed form, signed and accompanied by all enclosures, is then handed over to the designated staff at the relevant office. A receipt or acknowledgement should be requested and kept by the applicant as evidence of submission.

Apply on the issuer's site

How applications are assessed

Applications received under the New Charkha-Loom Scheme are reviewed by the implementing Khadi institutions or government officials, who check them against the eligibility criteria. Verification covers the documents submitted — purchase invoices and Khadi certification among them — and may extend to a physical inspection of the equipment bought, to confirm it matches the scheme specifications and is being used for active Khadi production.

Once verification is complete and eligibility approved, the subsidy amount is processed and credited directly to the beneficiary's account. The aim is to ensure that genuine beneficiaries receive support for modernising their traditional craft.

Frequently asked questions

What is the primary objective of the New Charkha-Loom Scheme?

Gujarat's Khadi scheme gives registered spinners and weavers financial assistance to buy Amber Charkhas and looms, which raises their productivity and helps sustain traditional crafts.

Who is eligible to apply for this scheme?

Registered Khadi and Polyvastra spinners and weavers qualify, provided their organisations hold valid Khadi certification and the equipment bought is meant for active Khadi production.

What is the amount of subsidy available?

Beneficiaries are eligible for a 65% subsidy on equipment cost, which works out to ₹8,450 for an Amber Charkha (65% of ₹13,000) and ₹19,500 for a loom (65% of ₹30,000).

How is the subsidy disbursed to beneficiaries?

Once the scheme authorities verify your application and equipment purchase, the subsidy amount is transferred straight into your bank account.

What is the application process for the New Charkha-Loom Scheme?

The application process is offline: purchase the equipment first, then collect the prescribed form from a Khadi institution or District Industries Center, complete it with all details and attach the required documents (purchase invoices and certification proof), and submit it to the designated staff, asking for an acknowledgement.

Is there any co-financing required from the applicant?

Yes, the scheme covers 65% of the equipment cost as a subsidy, leaving the applicant to fund the remaining 35%.

Sectors

  • Agri Food Rural
  • Manufacturing Industrial
  • Khadi
  • Handloom
  • Subsidy
  • Gujarat
  • Cottage Industry
  • Artisan Support

Details last verified on 18 September 2026. Source: the issuer's published information.