West Bengal Handloom & Khadi Yarn Subsidy — 10% Discount for Weavers
A West Bengal sub-scheme that supplies yarn to handloom societies at a 10% discount through TANTUJA and roving or high-count cotton fibre to khadi societies at a 10% discount through WBKVIB, running for five years from March 2024.
- Funding amount
- Varies by program
- Funding type
- Subsidy
- Provider
- Department of Micro, Small and Medium Enterprises and Textiles, Government of West Bengal (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
The Supply of Yarn to Societies etc. at Subsidized Rate sits under the wider West Bengal Handloom and Khadi Weavers Financial Benefit Scheme 2024. It was notified on 7 March 2024 by the state's Department of Micro, Small and Medium Enterprises and Textiles and is framed to stay in force for five years.
The scheme addresses a straightforward cost problem. Yarn for handloom weaving, and roving or high-count cotton fibre for khadi work, is the biggest recurring expense for weaving households and societies. Rather than paying out a grant, the government brings that input cost down by having designated state agencies deliver raw material at a discounted price and then reimbursing those agencies for the concession.
Two groups are covered. Handloom weavers and their societies receive yarn at a discount through TANTUJA, while Khadi societies receive subsidised roving and high-count cotton fibre through WBKVIB. Both discounts are set at 10%, and the state also pays the supplying agencies an extra 5% for transportation, storage and handling.
The intended outcome is better margins for weavers, more competitive output, and a steadier supply chain for the handloom and khadi trades across West Bengal. Because the saving lands on the price of raw material, it recurs for as long as the scheme runs instead of being a one-time payment.
Highlights
- 10% discount on yarn supplied to handloom societies by TANTUJA
- 10% discount on roving and high-count cotton fibre from WBKVIB for khadi societies
- State reimburses the supplying agencies and adds 5% for transport, storage and handling
- Open to individual weavers, Master Weavers, allied workers and cooperative societies
- Runs for five years from its 7 March 2024 notification
- No fixed deadline — applications are rolling in the format the department notifies
Who can apply
Eligibility here turns on your place in the weaving trade rather than on company structure. The scheme recognises two broad groups.
Handloom weavers and handloom-linked workers, which covers:
- Entrepreneur weavers, also known as Master Weavers
- Individual weavers
- Allied workers connected with handloom weaving
- Weavers working in the cooperative fold
- Weavers associated with handloom clusters
Khadi weavers, covering individuals as well as societies engaged in khadi weaving. Khadi societies are those registered under the relevant acts.
The notified eligibility conditions do not mention DPIIT recognition or Udyam (MSME) registration as a requirement, and they set out no separate founder-level criteria.
West Bengal Handloom & Khadi Yarn Subsidy — 10% Discount for Weavers is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
West Bengal Handloom & Khadi Yarn Subsidy — 10% Discount for Weavers 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.
What the funding covers
Support reaches the beneficiary as a price concession on raw material rather than as a cheque.
- Handloom side: TANTUJA supplies yarn to eligible handloom societies at a 10% discounted rate.
- Khadi side: Khadi societies registered under the relevant acts buy roving and high-count cotton fibre from WBKVIB at a 10% discount.
The State Government funds these concessions by reimbursing TANTUJA and WBKVIB. On top of the discount, a further 5% administrative cost is paid to cover transportation, storage and handling, which keeps the supply chain working.
Since the relief is built into the input price, the saving repeats with every eligible purchase over the scheme's five-year run. There is no fixed grant figure, because the value a beneficiary receives depends on the quantity of yarn or fibre lifted.
About the provider
West Bengal Handloom & Khadi Yarn Subsidy — 10% Discount for Weavers is offered by Department of Micro, Small and Medium Enterprises and Textiles, Government of West Bengal, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India.
Documents you’ll need
Before you apply to West Bengal Handloom & Khadi Yarn Subsidy — 10% Discount for Weavers, 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.
Frequently asked questions
What does this West Bengal scheme actually give a weaver?
It lowers the price you pay for raw material. Handloom societies and weavers get yarn from TANTUJA at a 10% discount, and khadi societies buying roving or high-count cotton fibre from WBKVIB get a 10% discount as well. The State Government reimburses the difference to those agencies, so the concession is applied at the point of supply rather than paid out to you later.
How much funding is offered, and is there a fixed grant amount?
There is no fixed sum. This is a subsidy on raw material, so the value you receive depends on how much yarn or fibre you buy — every eligible purchase carries a 10% concession. The state also covers an additional 5% administrative cost for the supplying agencies towards transportation, storage and handling.
Who is eligible to apply?
On the handloom side, the scheme covers entrepreneur weavers (Master Weavers), individual weavers, allied workers linked to handloom weaving, weavers in the cooperative fold, and weavers attached to handloom clusters. On the khadi side, it covers individuals and societies involved in khadi weaving, including khadi societies registered under the relevant acts.
Do I need DPIIT recognition or Udyam/MSME registration?
The notified eligibility conditions for this scheme do not list DPIIT recognition or Udyam (MSME) registration as a requirement. What matters is your position in the weaving trade — whether you fall into one of the recognised handloom categories or are a khadi weaver or khadi society.
Is there a last date to apply?
No fixed deadline has been set — the scheme runs on a rolling, always-open basis. The application format is to be officially notified by the Department of Micro, Small and Medium Enterprises and Textiles, so it is worth watching for department announcements or checking with the district helpdesk.
How and where do I submit an application?
Eligible Primary Weavers' Cooperative Societies, Khadi societies and individual weavers apply in the prescribed format, either online or offline. All applications go to the Director, Textiles. The format itself will be notified by the department, and district-wise office addresses and contact details for the helpdesk are published on the West Bengal Handloom website.
Is this a loan, and does the government take equity?
Neither. It is a subsidy, so there is nothing to repay and no equity or stake is taken in your society or enterprise. The support arrives as a reduced price on raw material you were purchasing anyway.
Which agencies supply the subsidised material?
TANTUJA handles yarn for handloom societies, while WBKVIB handles roving and high-count cotton fibre for khadi societies. Both are reimbursed by the State Government for the discount they extend, plus the additional 5% administrative cost for transport, storage and handling.
Who runs this scheme and how long will it remain in force?
It is run by the Department of Micro, Small and Medium Enterprises and Textiles, Government of West Bengal, which notified it on 7 March 2024. The sub-scheme is designed to remain in effect for a period of five years.
Can individual weavers apply, or only cooperative societies?
Both can apply. Primary Weavers' Cooperative Societies, Khadi societies and individual weavers are all covered, and the handloom side of the scheme explicitly names Master Weavers, individual weavers, allied workers, cooperative fold weavers and weavers in handloom clusters.
How do I apply for West Bengal Handloom & Khadi Yarn Subsidy — 10% Discount for Weavers?
Apply directly through the official application link on this page. Review the eligibility criteria and prepare your startup documents before you begin.
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