Comprehensive Handicrafts Cluster Development Scheme (CHCDS) is a central scheme of the Ministry of Textiles that builds world-class infrastructure for local artisans and small and medium enterprises so that production and exports rise through better facilities and stronger market links.
Ministry of Textiles has approved continuation of the scheme with a total outlay of ₹160 crore. For 2026-27, the Office of the Development Commissioner (Handicrafts) has invited fresh project proposals from eligible agencies, which keeps the scheme going for the handicrafts sector.
Comprehensive Handicrafts Cluster Development Scheme - Introduction
The main idea of the scheme is to set up professional units that come with modern infrastructure and the latest machinery. Through training, human resource development and production diversification, a cluster becomes more competitive. A specialized entity takes charge so that the cluster turns into a globally recognized, financially self-sufficient unit.
Mega handicraft clusters having more than 10,000 artisans are selected for overall development under the scheme. Soft support such as baseline survey, activity mapping, skill training, improved tool kits, marketing events, seminars, publicity and design workshops is provided to artisans.
Hard support includes Common Facility Centres, Emporiums, Raw Material Banks, Trade Facilitation Centres, Common Production Centres, and Design and Resource Centres. This mix of soft and hard help keeps the whole production chain strong and gives artisans real market visibility.
| Detail | Information |
|---|---|
| Scheme Name | Comprehensive Handicrafts Cluster Development Scheme |
| Level | Central |
| Nodal Ministry | Ministry of Textiles |
| Total Outlay | ₹160 crore (continuation approved) |
| Target Beneficiaries | Artisans, SMEs, Handicrafts clusters |
| Category | Skills and Employment |
| DBT Scheme | No |
Benefits
Eligible artisans and clusters can get many types of support under the scheme that help the craft business grow. Main help includes:
- Baseline survey and activity mapping to understand the present condition of a cluster.
- Complete skill training and capacity building so that artisans learn new ways of working.
- Improved tool kits that raise the quality and speed of production.
- Marketing events, trade seminars and design workshops that open up bigger markets.
The scheme also helps set up vital shared infrastructure so that every artisan has access to:
- Common Facility Centres and Trade Facilitation Centres for shared use.
- Raw material banks that make materials available at fair prices.
- Design and resource centres that support new product development.
- Emporiums for better market visibility and direct selling.
Eligibility
An implementing agency runs the cluster project as a Special Purpose Vehicle (SPV). This SPV must be a legal entity such as a company that brings together manufacturers, suppliers, buyers and artisan federations. For example, if a handicrafts exporter joins a local artisan producer group to form a company, the group becomes eligible to apply as an SPV.
Integrated projects are taken up through Central or State Handicrafts Corporations, autonomous bodies, councils, registered cooperatives, producer companies of artisans, or registered SPVs that have good experience in the handicrafts sector. For 2026-27, the implementing agency must show working experience in a handicrafts cluster for at least 10 years.
While agencies are generally selected through competitive bidding, the Project Approval and Monitoring Committee may consider special cases because of the unorganized nature of the sector.
Application Process
Application is processed offline. Follow the steps given below.
STEP 1 - Prepare the Detailed Project Report (DPR) and the required documents for the chosen cluster.
STEP 2 - Submit the proposal as an implementing agency to the Regional Office of the Textile Commissioner or follow the 2026-27 proposal invitation issued by the Office of the Development Commissioner (Handicrafts).
Documents
Keep these documents ready while applying:
- Detailed Project Report (DPR).
- Document defining the legal nature of the SPV.
- Valid sale or lease deed for land or building registered in the name of the SPV.
- Certificate confirming the land is meant for non-agricultural use.
- Approved layout plan of the proposed project site.
- Proof of working in a handicrafts cluster for 10 years or more.
References
View Official Scheme Guidelines
Press release on continuation of the scheme
FAQ's
What is Comprehensive Handicrafts Cluster Development Scheme?
This scheme is an initiative by the Ministry of Textiles to build world-class infrastructure for handicrafts clusters, helping artisans and small and medium enterprises improve production and business competitiveness.
What is the main objective of this scheme?
The main goal is to help artisans and entrepreneurs set up modern units, use the latest technology, receive quality training and get better market links.
Who can apply for this scheme?
A legally registered Special Purpose Vehicle (SPV), such as a company made of manufacturers, suppliers, buyers and artisan groups, is required to apply.
How is the SPV selected?
The authorities normally select the SPV through open bidding, though direct selection by the committee is possible in special cases.
What specific benefits are offered?
Eligible people get support for skill training, improved tool kits, marketing events, and shared use of Common Facility Centres, raw material banks and design centres.
Is this scheme meant for individual artisans?
This is a cluster-level project, but individual artisans gain from better shared facilities, greater market access and advanced skill training.
What types of infrastructure are created?
The scheme supports trade facilitation centres, common production centres, design resource centres and common facility centres for collective use by the cluster.
Which documents are essential for the application?
Applicants must submit a Detailed Project Report, proof of SPV nature, legal land deeds, non-agricultural land certificates and approved layout plans.
What is the application process?
Applicants should submit the proposal offline to the regional office of the Textile Commissioner or follow the 2026-27 proposal invitation.
Who oversees the implementation of this scheme?
The Office of the Development Commissioner (Handicrafts) under the Ministry of Textiles runs the project, with selection and monitoring handled by the Project Approval and Monitoring Committee.