Mill Gate Price Subsidy Scheme — 15% Yarn Subsidy, Gujarat — Frequently Asked Questions

There are two components. You get a 15% subsidy on the value of yarn purchased from NHDC-recognised depots, and separately a freight reimbursement that ranges from 1% to 8.5% depending on the type of yarn and the region. An extra 2.5% is also allowed towards depot operating charges. Because the rates depend on what you buy and where from, the final amount varies by applicant.

Handloom cooperative societies, NGOs, and development centres are the eligible applicants. Along with the entity type, there is a purchase condition: the yarn must be bought from a depot recognised by the National Handloom Development Corporation (NHDC), such as the Gujarat State Handloom & Handicrafts Development Corporation.

No. This is a subsidy, not an investment. The 15% yarn subsidy is credited straight to the beneficiary's account through RTGS or e-payment, and the freight reimbursement is settled separately. There is no equity stake taken and nothing to repay.

The eligibility conditions specified for this scheme relate to the type of applicant organisation and to buying yarn from NHDC-recognised depots. Neither DPIIT recognition nor MSME registration is listed as a requirement, so registrations of that kind are not what the District Industries Centre verifies against the guidelines.

After the District Industries Centre verifies your application and the proof of yarn purchase, the subsidy amount is processed for direct credit to your account via RTGS or e-payment. The freight reimbursement is processed as a separate component.

No. The rate varies with the category of yarn — Non-Silk/Jute, Silk, and Jute/Jute Blended — and with the region of procurement, which may be a Plain Area, a Hills/Remote area, or the North-East. Across these combinations the reimbursement works out to between 1% and 8.5%.

Start by purchasing your yarn from an NHDC-recognised depot. Then visit the District Industries Centre in your district and ask the designated staff member for the prescribed hard-copy application form, which is not normally available online. Fill in all mandatory fields, attach the supporting documents, submit the signed form at the DIC, and collect an acknowledgement receipt as proof of submission.

You will need proof of the yarn purchase, the registration documents of the cooperative or NGO, and other relevant identification or operational proofs. Self-attested copies are required where applicable, and all mandatory fields on the form must be completed.

The scheme runs on a rolling basis, so there is no fixed published last date. However, the DIC may communicate a prescribed period for submission, so it is best to confirm the current timeline with your District Industries Centre when you collect the form.

The scheme is aimed at sustaining employment for economically weak weavers in Gujarat, with a specific focus on weavers from Scheduled Castes. It works by making quality yarn affordable, which also improves the quality of the finished handloom products.

Mill Gate Price Subsidy Scheme — 15% Yarn Subsidy, Gujarat is offered by Cottage and Rural Industries Department, Government of Gujarat, a government body. It is provided as non-dilutive funding.