New Charkha-Loom Scheme
Cottage and Rural Industries Department, Government of Gujarat · Central government
The Gujarat government scheme funds registered Khadi spinners and weavers with a 65% subsidy on Amber Charkhas and looms to modernise production.
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
The New Charkha-Loom Scheme is administered by the Commissioner of Cottage and Rural Industries, operating under the Industries & Mines Department of the Government of Gujarat. It provides financial assistance to registered Khadi spinners and weavers for the purchase of Amber Charkhas and looms, with the aim of modernising production methods in the state's Khadi sector.
The scheme supports technological upgrades within the cottage industry, seeking to improve productivity and efficiency among artisans. It is intended to preserve hand-spun and hand-woven textile traditions while helping artisans compete in current markets. The initiative also works to protect livelihoods in rural and semi-urban areas of Gujarat.
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
- Applicant must be a registered Khadi/Polyvastra spinner or weaver. - The applicant’s organisation must hold a valid Khadi certification. - Equipment must be purchased for active Khadi production.
How to apply
The application procedure for the New Charkha-Loom Scheme is carried out entirely offline, which makes it accessible to artisans throughout Gujarat.
- **Step 1: Purchase the Equipment** – Applicants are required to buy the new Amber Charkha or loom from a vendor who is approved for this purpose. This step ensures the equipment is available for inspection and verification. - **Step 2: Collect the Application Form** – The next step is to visit a local Khadi institution, a Cottage Industries Office, or the nearest District Industries Center (DIC) to obtain the prescribed form for claiming the subsidy. Authorised personnel at these locations will provide the official format. - **Step 3: Fill the Form and Attach Documents** – The form must be completed with all mandatory fields accurately filled in. It is essential to attach copies of every required supporting document, including purchase invoices for the equipment and valid proof of Khadi certification. - **Step 4: Submit and Obtain Acknowledgement** – The signed and completed application, together with all attachments, must be handed over to the designated staff at the relevant office. Applicants should ask for and keep a receipt or acknowledgement as evidence of their submission.
How applications are assessed
The selection process centres on verifying that applicants meet the stated eligibility criteria. After submission, applications are reviewed by the implementing Khadi institutions or government officials. This review involves cross-checking documents such as purchase invoices and Khadi certification, and may include a physical inspection of the equipment to confirm it matches scheme specifications and is intended for active Khadi production.
Once eligibility is confirmed and the application is approved, the subsidy is processed and credited directly to the beneficiary's account. The procedure aims to ensure that support reaches genuine beneficiaries for modernising their traditional craft.
Frequently asked questions
What is the primary objective of the New Charkha-Loom Scheme?
The scheme provides financial assistance, in the form of subsidies, to registered Khadi spinners and weavers in Gujarat for purchasing Amber Charkhas and looms, with the aim of modernising production, raising productivity, and sustaining traditional crafts.
Who is eligible to apply for this scheme?
The scheme is available to registered Khadi/Polyvastra spinners and weavers whose organisations possess a valid Khadi certification. Equipment bought under it must be used exclusively for active Khadi production.
What is the amount of subsidy available?
Beneficiaries are eligible for a 65% subsidy on equipment costs, which amounts 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?
The subsidy is transferred directly to the beneficiary’s bank account once the scheme authorities verify the application and confirm the equipment purchase.
What is the application process for the New Charkha-Loom Scheme?
The application is offline: purchase the equipment first, then collect the prescribed form from a Khadi institution or District Industries Center, complete it with the required documents (purchase invoices, certification proof), and submit it to the designated staff for an acknowledgement.
Is there any co-financing required from the applicant?
The applicant funds 35% of the equipment cost, with the scheme covering the remaining 65% as a subsidy.
Sectors
- Agri Food Rural
- Manufacturing Industrial
- Khadi
- Handloom
- Subsidy
- Gujarat
- Cottage Industry
- Artisan Support
Details last verified on 3 August 2026. Source: the issuer's published information.