Comprehensive Handicrafts Cluster Development Scheme (CHCDS)

Funds to the tune of 2% (max.) of project cost upto a maximum of Rs. 5.00 Lakhs (whichever is less) per project shall be earmarked for establishing baseline data/ DPR against which performance can be compared at the end of the project.

Integrated projects under CHCDS are intended to scale up the infrastructural and production chain at Jl Handicrafts clusters which have remained unorganized and have not kept pace with the modernization and development that have been taking place so far. Consequently, there has not been any addition of ' fresh impetus of development and optimum realization of output in the handicrafts sector, which is not only the backbone of long traditional heritage and cultural linkages.

The prospect of this sector lies in infrastructural improvement, modernization of the tools, machinery, process, product development & diversification, and creating strong brands. Innovative designs as well as technical know-how, furthered by brand building of the native products hold the key to creating a niche market for the products manufactured by the clusters. The proposed programme is expected to support the Up gradation/creation of infrastructural facilities coupled with market linkages and product development & diversification.

Comprehensive Handicrafts Cluster Development Scheme (CHCDS) Objective Image

Objectives

To enhance the competitiveness of selected clusters in terms of increased market share and ensure increased productivity by higher unit value realization often products.
To ensure effective integration of scattered artisans, building their grass roots enterprises and linking them to SMEs in the sector to build critical mass for customized interventions and ensure economies of scale in operations. This will build a supply system that is geared to responding to large-scale orders, adhering to quality and product standardization, which are pre-requisites of global markets.
To generate additional livelihood opportunities to the people through specific intervention in the segmental sub-sector industry and increase the incomes to the artisans/craftsmen already engaged in the is sector.
To provide requisite support/ linkages in terms of adequate infrastructure, technology, product diversification, design development, raw material banks, marketing & promotion, social security and other components that are vital for sustainability of artisans/craftsmen engaged in the Handicrafts sector.
The core elements of the strategy for the proposed program are given below: Proactive and strong technical and program management assistance for capacity building, designing of the interventions and their implementation, through a competent professional agency.

Benefits

Funds to the tune of 2% (max) of project cost upto a maximum of Rs. 5.00 Lakhs (whichever is less) per project shall be earmarked for establishing baseline data/ DPR against which performance can be compared at the end of the project. The total fund requirement will be as per the Detailed project Report (DPR). 3% of Total project cost shall be provided for setting up of Project Monitoring Unit (PMU).
50% of the approved project cost will be released as advance/I instalment. 2" instalment @ 40% of the approved project cost will be released on utilization of 70% of 1s instalment. The last I 0% amount will be released as reimbursement on completion of project and submission of utilization report etc.

Comprehensive Handicrafts Cluster Development Scheme (CHCDS) Benefit Image

Eligibility

The Implementing Agency (lA), which will be a Special Purpose Vehicle (SPV), shall be a legal entity, preferably a company, with the participation of related stakeholders, particularly the leading manufacturers, suppliers, buyers, and artisan federations/SHGs.
The SPV shall be selected preferably through an open competitive bidding process. However, selection of SPV would mainly depend on the project profile, activities required to be intervened, and on various other parameters, therefore selection of such suitable SPV after seeking formal approval of PAMC.
As the Handicrafts sector is highly unorganized, the procedure for selection of SPV in special cases shall be kept open for PAMC/Government.