Charmashilpa Scheme: ₹10L Aid for Karnataka Leather Artisans

Charmashilpa is a Government of Karnataka programme delivered by the Karnataka State Leather Industries Development Corporation Ltd., better known as LIDKAR. It is aimed squarely at the state's traditional leather craft sector, helping artisans move away from conventional, hand-driven production towards mechanised and better-equipped units.

The gap it fills is a familiar one: individual leather workers, small groups and co-operatives rarely have the capital to buy machinery or fund a full production cycle. Charmashilpa answers that with a package worth ₹10,00,000 per production unit, combined with technical guidance on adopting modern machinery and production techniques. The amount is deliberately split into a ₹5,00,000 subsidy that does not have to be returned and a ₹5,00,000 bank loan that is repayable.

Spending is directed at the unit itself — ₹3,50,000 for machinery, ₹6,00,000 for working capital covering raw materials and labour, and ₹50,000 for other expenses. The results the state is chasing are better finishing and product quality, stronger market competitiveness, higher productivity and, in turn, higher incomes for the artisans involved.

There is no closing date attached to the scheme. Applications are accepted round the year and are filed online through the Seva Sindhu portal under the Social Welfare Department.

• Up to ₹10,00,000 per production unit
• ₹5,00,000 subsidy plus a ₹5,00,000 repayable bank loan
• Earmarked for machinery (₹3.5L), working capital (₹6L) and other costs (₹50k)
• For leather artisans, artisan SHGs and co-operative societies in Karnataka
• Family income ceiling of ₹30,000 rural / ₹25,000 urban
• No deadline — applications stay open on the Seva Sindhu portal

Charmashilpa is open to three applicant types: individual leather artisans, artisan self-help groups (SHGs) and co-operative societies. It is a Karnataka scheme for people working in the leather trade.

Beyond the occupation test, applicants must clear these conditions:

• The applicant must belong to one of the specified Scheduled Caste sub-castes — Arundathiyar, Chammadiya and Chamar are among those listed.
• Minimum age of the applicant is 18 years.
• Annual family income must not exceed ₹30,000 in rural areas or ₹25,000 in urban areas.
• Neither the applicant nor any family member should have received benefits from other government schemes; training programmes are the one exception.
• No family member should be employed in a government or semi-government organisation.

Charmashilpa Scheme: ₹10L Aid for Karnataka Leather Artisans is open to startups at any stage. It is open to startups registered anywhere in India.

Charmashilpa Scheme: ₹10L Aid for Karnataka Leather Artisans accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.

Every selected production unit receives ₹10,00,000 in total assistance, made up of two components:

• ₹5,00,000 subsidy — a non-repayable grant.
• ₹5,00,000 bank loan — repayable, which keeps financial discipline in the package.

The funds are earmarked by purpose before they are released:

• ₹3,50,000 towards machinery
• ₹6,00,000 towards working capital, i.e. raw materials and labour
• ₹50,000 towards other necessary expenses

Alongside the money, beneficiaries get technical assistance in adopting modern production techniques and machinery. Taken together, the support is designed to turn a traditional leather workshop into a competitive, mechanised unit — improving product quality and widening market reach.

Charmashilpa Scheme: ₹10L Aid for Karnataka Leather Artisans is offered by Karnataka State Leather Industries Development Corporation (LIDKAR), a government body. As a government-backed debt / loan, it is publicly funded and open to eligible startups across India.

Applications reach the state through the Seva Sindhu portal, where the first filter is a screening check against the scheme's eligibility conditions — caste, age and family income.

Applications that clear screening are reviewed by the Social Welfare Department together with the Karnataka Leather Industries Development Corporation Ltd. (LIDKAR). That review looks at how viable the proposed modernisation of the production unit is.

A committee or panel then evaluates the proposals, weighing their completeness, how well the plan fits the scheme's objectives and the impact it is expected to deliver.

Shortlisted applicants may be contacted again for verification or to clarify details of their project plan. Final selection is followed by disbursement of the benefits.

Before you apply to Charmashilpa Scheme: ₹10L Aid for Karnataka Leather Artisans, keep the following documents ready:

• A pitch deck or short business plan describing the problem, product and traction
• Company registration documents and PAN
• Founder identification (PAN / Aadhaar) and brief profiles
• Recent financial statements or projections
• Product details — a demo, prototype or working link if available

Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.

Charmashilpa Scheme: ₹10L Aid for Karnataka Leather Artisans is best suited for startups in India seeking non-dilutive funding of ₹10L. If that describes your startup, review the eligibility criteria above before applying.