New Charkha-Loom Scheme — 65% Subsidy for Gujarat Khadi Artisans

The New Charkha-Loom Scheme is a Gujarat government subsidy built for the state's Khadi artisans. It is run by the Commissioner of Cottage and Rural Industries, which operates within the Industries & Mines Department of the Government of Gujarat.

The point of the programme is equipment upgrade. Spinners and weavers who buy an Amber Charkha or a loom can claim 65% of the cost back as a subsidy — up to ₹8,450 for an Amber Charkha and up to ₹19,500 for a loom, with the artisan funding the balance.

Khadi is made by hand, which makes the tools an artisan works with the single biggest factor in how much they can produce. By lowering the cost of modern spinning and weaving equipment, the scheme aims to raise output and product quality for individual artisans, and to keep hand spinning and hand weaving economically worthwhile in Gujarat's rural and semi-urban areas.

There is no fixed application window. The scheme runs on a rolling basis, so claims can be filed whenever the equipment has been purchased and the paperwork is ready.

• 65% subsidy on Amber Charkhas and looms — up to ₹19,500
• ₹8,450 for an Amber Charkha (equipment priced at ₹13,000)
• ₹19,500 for a loom (equipment priced at ₹30,000)
• Open to registered Khadi and Polyvastra spinners and weavers with valid Khadi certification
• Offline claims filed at Khadi institutions, Cottage Industries Offices or District Industries Centres in Gujarat
• Rolling intake — there is no fixed last date

Eligibility is tied to being an active Khadi artisan in Gujarat rather than to any business structure or startup registration.

• The applicant must be a registered Khadi or Polyvastra spinner or weaver.
• The organisation the applicant deals with must hold a valid Khadi certificate.
• The Amber Charkha or loom purchased must be put to genuine Khadi production — not left idle or diverted to other work.
• The applicant must be able to fund the remaining 35% of the equipment price.
• Equipment should be bought from an approved vendor so that it can be inspected and verified later.

Claims are filed through Khadi institutions, Cottage Industries Offices or District Industries Centres, which is also where the eligibility check happens.

New Charkha-Loom Scheme — 65% Subsidy for Gujarat Khadi Artisans is open to startups at any stage. It is open to startups registered anywhere in India.

New Charkha-Loom Scheme — 65% Subsidy for Gujarat Khadi 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.

The scheme pays a portion of what you spend on new equipment. It is a subsidy — no repayment is expected and no stake is taken in the artisan's business.

• 65% subsidy on equipment purchases. An Amber Charkha costing ₹13,000 attracts ₹8,450, while a loom costing ₹30,000 attracts ₹19,500.
• Direct benefit transfer. Once the purchase and the documents are verified, the subsidy is credited straight into the beneficiary's bank account.
• Output and quality gains. New Amber Charkhas and looms let artisans produce more, and more consistently, which supports higher income potential.
• Guidance through Khadi institutions. Because claims are routed via registered Khadi or Polyvastra organisations, applicants can get help with paperwork and verification.
• A long-term investment in the craft. The assistance is designed to keep traditional spinning and weaving viable within Gujarat's cottage industry rather than letting the trade decline.

New Charkha-Loom Scheme — 65% Subsidy for Gujarat Khadi Artisans is offered by Cottage and Rural Industries Department, Government of Gujarat, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India.

There is no competitive round or pitch here — the test is verification.

• Submission. The completed claim form, with the equipment invoice and Khadi certification proof attached, goes to the receiving office — a Khadi institution, Cottage Industries Office or District Industries Centre.
• Scrutiny. Staff at the implementing Khadi institution or government officials review the file and measure it against the scheme's conditions.
• Cross-checking of papers. Purchase invoices and the Khadi certificate are examined to confirm the purchase was genuine and the applicant qualifies.
• Physical inspection where required. The Amber Charkha or loom that was bought may be inspected to confirm it matches the specifications and is being used for Khadi production.
• Approval and payment. Once eligibility and the purchase are verified, the subsidy is processed and credited directly to the beneficiary's bank account.

Retaining the acknowledgement slip given at submission is useful, since it serves as proof that the claim was filed.

Before you apply to New Charkha-Loom Scheme — 65% Subsidy for Gujarat Khadi 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.

New Charkha-Loom Scheme — 65% Subsidy for Gujarat Khadi Artisans is best suited for startups in India seeking non-dilutive funding of ₹8,450 – ₹19,500. If that describes your startup, review the eligibility criteria above before applying.