New Charkha-Loom Scheme — 65% Subsidy for Gujarat Khadi Artisans — Frequently Asked Questions
Answers to the questions founders most often ask about New Charkha-Loom Scheme — 65% Subsidy for Gujarat Khadi Artisans — who qualifies, the funding amount, required documents and how the application works.
Frequently asked questions
How much money does the New Charkha-Loom Scheme give?
It covers 65% of the equipment cost — up to ₹8,450 for an Amber Charkha and up to ₹19,500 for a loom. Those figures correspond to equipment priced at ₹13,000 and ₹30,000 respectively. The artisan pays the remaining 35% of the price.
Is there a deadline to apply?
No. The scheme is open on a rolling basis, so there is no fixed closing date. A claim can be submitted once the equipment has been purchased and the supporting documents are ready.
Who is eligible for this subsidy?
It is meant for people already working in Gujarat's Khadi sector — spinners and weavers registered as Khadi or Polyvastra artisans. The organisation they deal with must hold a valid Khadi certificate, and the Amber Charkha or loom bought with the subsidy has to be used for genuine Khadi production.
Does the scheme take equity in my business?
No. This is a subsidy, so there is no equity stake, no repayment and no dilution of ownership. You receive a share of the equipment cost and keep full control of your craft business.
Do I need DPIIT or MSME registration to apply?
The conditions described for this scheme centre on Khadi credentials rather than startup registrations — the applicant must be a registered Khadi or Polyvastra spinner or weaver, and the organisation involved must hold a valid Khadi certificate. DPIIT or MSME recognition is not among the requirements listed for this scheme.
How do I apply for the New Charkha-Loom Scheme?
Applications are handled offline. Buy the Amber Charkha or loom first from an approved vendor, then collect the prescribed form from a local Khadi institution, a Cottage Industries Office or your District Industries Centre. Fill in every mandatory field, attach the purchase invoice and proof of Khadi certification, and hand the complete set to the designated staff. Ask for an acknowledgement and keep it safely.
What documents are needed?
A completed application form in the prescribed format, the purchase invoice for the equipment, and documentary proof of valid Khadi certification. It is also advisable to retain the submission acknowledgement issued by the office, as it is proof that the claim was filed.
How and when is the subsidy paid out?
After the documents and the purchased equipment have been verified — which may include a physical inspection — the subsidy amount is processed and credited directly to the beneficiary's bank account.
What equipment can I buy with the subsidy?
The scheme covers Amber Charkhas and looms bought from an approved vendor. The equipment has to be intended for active Khadi production, and the subsidy limits are up to ₹8,450 for a charkha and up to ₹19,500 for a loom.
Where can I read the official scheme guidelines?
The official guidelines document is published on the Gujarat IFP portal at ifp.gujarat.gov.in, listed among the incentives for cottage and rural industries.
Who offers New Charkha-Loom Scheme — 65% Subsidy for Gujarat Khadi Artisans?
New Charkha-Loom Scheme — 65% Subsidy for Gujarat Khadi Artisans is offered by Cottage and Rural Industries Department, Government of Gujarat, a government body. It is provided as non-dilutive funding.
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