UP Handloom & Powerloom Subsidy for IIHT Diploma Holders — Up to ₹60 Lakh

The Uttar Pradesh Handloom/Powerloom Subsidy is an incentive created for graduates of the Indian Institute of Handloom Technology (IIHT) who want to move from being trained weavers to owning their own production units. It sits under the UP Textile and Garmenting Policy 2022 and is administered by the Government of Uttar Pradesh.

The scheme targets a very specific gap: skilled IIHT diploma holders often have the technical knowledge to run weaving operations but lack the capital to buy looms, set up a shed and fund initial working expenses. The subsidy is designed to close that gap for first-generation entrepreneurs in the weaving sector.

Support is available for both handloom and power loom routes, and the amount is calculated as a share of the total project cost rather than as a flat payout. The intent is to modernise weaving at the grassroots level across Uttar Pradesh while generating local employment in a sector that is central to the state's textile economy.

The window is rolling, so there is no fixed annual cut-off to plan around — applications are accepted as long as the scheme is in force.

• 75% of total project cost covered as a non-repayable subsidy
• Up to ₹20 lakh for handloom units; up to ₹60 lakh for power loom units
• Open only to three-year IIHT diploma holders
• Must install 5–20 handlooms or 5–10 power looms in a shed
• Applicable to new weaving units set up within Uttar Pradesh
• Rolling deadline — applications accepted on an ongoing basis

Eligibility is built around your qualification and what you intend to install.

• You must hold a three-year diploma from the Indian Institute of Handloom Technology (IIHT). A shorter certificate or a diploma from another institution does not satisfy this criterion.
• You must be starting new employment related to weaving — that is, your project should be a fresh weaving venture rather than an expansion of an existing unrelated business.
• The unit must be set up inside Uttar Pradesh, since the scheme flows from the UP Textile and Garmenting Policy 2022.
• Your installation must fall within the prescribed band: 5 to 20 handlooms, or 5 to 10 power looms, housed in a shed.

Both individuals and groups can apply, as the per-person cap applies to a person or a group. If your planned loom count sits below or above the bands above, the project will not fit this particular scheme.

UP Handloom & Powerloom Subsidy for IIHT Diploma Holders — Up to ₹60 Lakh is open to startups at any stage. It is open to startups registered anywhere in India.

UP Handloom & Powerloom Subsidy for IIHT Diploma Holders — Up to ₹60 Lakh 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 is a capital subsidy rather than a loan, which means the support does not have to be repaid and no promoter equity is diluted.

• 75% of the total project cost is covered by the government.
• For handloom units, the subsidy is capped at ₹20 lakh per person or group.
• For power loom units, the subsidy is capped at ₹60 lakh per person or group.
• The remaining 25% of the project cost is co-financed by the applicant.

Because the amount is expressed as a percentage of project cost subject to a ceiling, the practical benefit scales with the size and cost of the unit you propose. The money is meant to be put towards machinery, infrastructure and getting operations off the ground, so it directly lowers the debt burden a new weaving business would otherwise carry. Claims are disbursed according to the terms of the policy, which typically means after verification of milestones or completion.

UP Handloom & Powerloom Subsidy for IIHT Diploma Holders — Up to ₹60 Lakh is offered by Government of Uttar Pradesh, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India. You can verify current details and timelines on the provider's official website before applying.

There is no multi-round pitch format here. Applications are scrutinised administratively by a committee or designated authority within the Uttar Pradesh Government's Department of Textiles and Garmenting.

Reviewers look at three things in particular: whether your IIHT diploma establishes eligibility, whether the proposed handloom or power loom unit is viable and appropriately scoped, and whether the project proposal and supporting documents are complete.

A decision follows from how closely the application adheres to the policy guidelines and from the likely impact of the unit on employment and the local industry. Once approved, the subsidy is released as per the policy terms, normally after verification of project milestones or completion of the unit.

Before you apply to UP Handloom & Powerloom Subsidy for IIHT Diploma Holders — Up to ₹60 Lakh, 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.