AI SummaryCluster Development Scheme helps micro and small enterprises working in Gujarat's handloom and handicraft sector grow by improving productivity, artisan skills, and market reach. The scheme is open in 2026-27 for groups of 25 or more artisans who work and produce goods at one common location, with support covering diagnostic study, design development, training, Common Facility Centre, and marketing help.
Cluster Development Scheme
Gujarat government launched Cluster Development Scheme in 2003-04 through Industries and Mines Department. The scheme follows a cluster-based approach so that small and micro units can solve common problems like old technology, low skills, weak quality, poor market access, and shortage of working capital by working together.
For example, if Ramesh and his 24 fellow weavers in a village operate from a shared facility and produce the same craft, they can form a cluster and apply for this scheme. The cluster must keep at least 25 active artisans working at one common location, and every member should be engaged in handloom or handicraft activity.
Implementation is managed by boards and corporations working under Cottage Commissionerate, along with reputed institutions such as National Institute of Design and National Institute of Fashion Technology. Gujarat Mahila Khadi Rashtriya Gramin Trust acts as nodal agency. Centre for Entrepreneurship Development (CED), Gandhinagar is the implementing agency for Common Facility Centre projects under cluster development in Gujarat.
Key Information
| Detail | Information |
|---|---|
| Scheme Name | Cluster Development Scheme |
| Launched In | 2003-04 |
| Beneficiary State | Gujarat |
| Launched By | Industries and Mines Department, Government of Gujarat |
| Eligible Groups | Clusters of minimum 25 artisans working at one place |
| Benefit Type | Financial and non-financial support |
Benefits
The scheme gives a package of support to lift an artisan cluster. Main assistance areas are given below, and the cost limits shown here are from current cluster development policy followed in Gujarat.
| Type of Assistance | Details |
|---|---|
| Diagnostic Survey | Funded study of cluster needs and potential, with maximum cost of about ₹2.50 lakh. |
| Design Development | Expert guidance for new product designs and innovation. |
| Training | Skill training programmes for artisans and capacity building. |
| Common Facility Centre (CFC) | Shared workspace and machinery, with eligible project cost up to ₹15 crore and central share of 70%. |
| Soft Interventions | Up to ₹25 lakh project cost with central contribution of 75%. |
| Infrastructure Development | Upgradation of industrial areas, with eligible cost up to ₹10 crore and central share of 60%. |
| Margin Money and Managerial Subsidy | Working capital support and help with administrative costs. |
Also support is available for publicity, export readiness, and access to domestic and international markets. The central contribution rises to 90% for special category states and for clusters where more than 50% units are women, micro, village, SC or ST based. Four Common Facility Centres are already approved in Gujarat under this scheme, covering Pump and Foundry Cluster Rajkot, Plastic Product Cluster Surendranagar, Diamond Cutting and Polishing Cluster Surat, and Textile Cluster Dahod.
Eligibility
To get benefits under Cluster Development Scheme, the group needs to match these conditions:
- Minimum 25 artisans - Group must have at least 25 artisans who work and produce goods at one common location in Gujarat.
- Handloom or handicraft sector - All members should be actively engaged in artisan-based handloom and handicraft activity.
- Micro or Small category - The enterprise must be classified as a Micro or Small Enterprise (MSE).
- Collective working - Members must be willing to work together and follow project guidelines set by the implementing agencies.
Application Process
The scheme is applied offline through implementing agencies. The cluster representative has to follow these steps:
STEP 1 - Approach one of the implementing agencies and get the prescribed application form. These agencies include boards and corporations working under Cottage Commissionerate, National Institute of Design, National Institute of Fashion Technology, SHRUJAN, SAHAJ, ICCED, freelance designers, and Gujarat Mahila Khadi Rashtriya Gramin Trust.
STEP 2 - Fill all mandatory fields in the form and attach copies of required documents. Self-attest the copies if asked.
STEP 3 - Submit the application for the specific assistance required, such as Diagnostic Survey, Training, Common Facility Centre, or design support. Keep the project proposal clear and detailed.
STEP 4 - Take a receipt or acknowledgment from the authority after submission. Make sure it shows the date and time of submission and a unique identification number if given.
Post-submission - The implementing agency will carry out diagnostic surveys and field visits to check the cluster's needs, potential, and eligibility. After approval, the sanctioned support is provided as per the approved project plan, and regular monitoring is done to make sure the assistance is used properly.
Documents
Keep these documents ready before starting the application:
- Cluster Formation Certificate - Proof of the group's identity and formation.
- List of Participating Artisans - Names of at least 25 members working at the common location.
- Identity and Address Proof - Aadhaar card, Voter ID, or passport of members.
- Bank Account Details - Passbook copy or cancelled cheque for receiving financial help.
- Project Proposal - Written plan for the specific support asked, such as Common Facility Centre or training.
- MSME Registration Certificate - Registration proof for the enterprise, if available.
During verification, keep production evidence such as product samples and photographs of the workshop ready to show the cluster's real activity and facility.
References
Cluster Guidelines Policy (English, PDF)
Updated MSE Cluster Development Policy (English, PDF)
Industries Commissionerate Information on Cluster Development
CED Cluster Development Schemes and CFC Projects in Gujarat
FAQ's
What is the minimum number of artisans required to form a cluster?
A minimum of 25 artisans who work and produce goods at one common location is required to form an eligible cluster.
Can individual artisans apply alone?
No. The scheme is for registered groups or clusters of 25 or more artisans. Individual applications are not accepted.
Which organizations help implement this scheme?
Boards and corporations under Cottage Commissionerate, National Institute of Design, National Institute of Fashion Technology, SHRUJAN, SAHAJ, ICCED, and Gujarat Mahila Khadi Rashtriya Gramin Trust act as implementing agencies.
What if my group members work in different locations?
The cluster will not qualify. All members must work, produce, and operate from a single common location in Gujarat.
Do I need to submit a project proposal?
Yes. A project proposal detailing the specific requirement, such as Common Facility Centre or training, should be submitted with the application.
How much financial support can a Common Facility Centre get?
Under current cluster development policy, a CFC project is eligible for up to ₹15 crore, with a central government contribution of 70% (90% for special category states and clusters with more than 50% women, micro, village, SC or ST units).
What does the verification process involve?
Officials carry out a diagnostic survey and field visit to verify production activity, facility space, number of artisans, and the cluster's needs before approving assistance.