ASHA Scheme Kerala — ₹3L Grant for Handicraft Artisans

ASHA — the Assistance Scheme for Handicraft Artisans — is a grant programme of the Government of Kerala, administered by the Directorate of Industries and Commerce. It exists to put money directly behind artisans in the state's handicrafts sector so they can set up a new handicrafts-based micro-enterprise or strengthen one they already run.

Kerala has folded its support for craftspeople into this single scheme rather than spreading it across several windows, so an artisan deals with one application and one grant. The assistance is deliberately structured as back-end financial support: it is meant for the fixed capital an artisan puts into the unit, not for routine operating expenses.

For ASHA, an artisan is a person recognised by the Development Commissioner (Handicrafts), Government of India, or by a state-level organisation such as SURABHI, KSBC, KADCO, HDCK or KELPALM, and who has also taken concrete steps to establish an enterprise in the handicrafts domain.

The grant is one-time and released in a single installment, and there is no fixed closing date — applications are open on a rolling basis, so an artisan can apply once their enterprise plan and paperwork are in order.

• One-time grant of up to ₹3 lakh from the Government of Kerala
• 40% of fixed capital investment for general category artisans, capped at ₹2.00 lakh
• 50% for young (18-45), women and SC/ST artisans, capped at ₹3.00 lakh
• Covers work shed construction, tools, machinery, electrification and design/technology support
• Applications are open on a rolling basis — no fixed deadline
• Assistance is paid in a single installment after approval

ASHA is open to micro-enterprises in the handicraft sector that are established in Kerala. If the unit operates outside the state, or works in a sector other than handicrafts, it does not qualify.

The applicant must be an artisan in the scheme's sense of the term — someone recognised by the Development Commissioner (Handicrafts), Government of India, or by a Kerala state-level body such as SURABHI, KSBC, KADCO, HDCK or KELPALM — and must have taken concrete steps towards setting up a handicrafts enterprise.

On registration, one of two documents is required:

• An Entrepreneurs Memorandum Part-II filed with the District Industries Centre, or
• Udyog Aadhaar registration.

Units that have already received a subsidy or grant from the State Government, the Central Government or a government agency can still apply. In such cases, the ASHA assistance is restricted to whatever eligible amount remains, so the total support does not exceed the scheme's limits.

ASHA Scheme Kerala — ₹3L Grant for Handicraft Artisans is open to startups at any stage. It is open to startups registered anywhere in India.

ASHA Scheme Kerala — ₹3L Grant for Handicraft 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.

ASHA offers a one-time grant calculated as a share of the fixed capital investment made in the handicrafts enterprise. The rate depends on which category the artisan falls under.

• General category artisans: 40% of fixed capital investment, subject to a ceiling of ₹2.00 lakh.
• Young artisans (aged 18 to 45), women artisans, and SC/ST artisans: 50% of fixed capital investment, subject to a ceiling of ₹3.00 lakh.

Fixed capital expenditure that the grant is intended to support includes:

• Construction of work sheds or workshops
• Purchase of tools, equipment, machinery and accessories
• Electrification of the unit
• Technology integration, product development and design improvement

The approved amount is paid out in a single installment once approval is granted, which gives the artisan the liquidity to build or upgrade the enterprise straight away. This is government grant assistance, not a loan, and no equity is taken in the business in return.

ASHA Scheme Kerala — ₹3L Grant for Handicraft Artisans is offered by Directorate of Industries and Commerce, Government of Kerala, a government body. As a government-backed grant, it is publicly funded and open to eligible startups across India.

Every application filed through the state's online portal goes through the following route before money is released.

1. Initial screening: The application is checked for fulfilment of the eligibility criteria and for completeness of the required documentation.
2. Review by the recommending or sanctioning authority: The details submitted by the applicant are examined by the authority responsible for recommending or sanctioning the assistance.
3. Clarifications: The applicant may be asked to provide clarifications or additional details during the review.
4. Physical inspection and verification: Officers may carry out a physical inspection to verify enterprise details, including tools, equipment and other assets.
5. Final approval and legal agreement: Approval rests on the assessment of the sanctioning authority, after which a legal agreement is executed.
6. Disbursement: The grant is then released to the artisan as a single installment.

Before you apply to ASHA Scheme Kerala — ₹3L Grant for Handicraft 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.

ASHA Scheme Kerala — ₹3L Grant for Handicraft Artisans is best suited for startups in India seeking non-dilutive funding of ₹3L. If that describes your startup, review the eligibility criteria above before applying.