AI SummaryGroup Workshed Scheme helps powerloom weavers and entrepreneurs set up modern worksheds in clusters with financial support from the Ministry of Textiles. The scheme is now part of the PowerTex India integrated program and continues to support weaving units across India in 2026.
The main aim is to organize powerloom units into clusters and provide more space, a better work environment, and improved work efficiency. This helps weaving units compete better in the global textile market.
Group Workshed Scheme - Introduction
Under this scheme, groups of powerloom owners can build worksheds for modern looms in an existing or new cluster. The workshed includes space for modern machine looms, weaving preparatory and sectional warping machines, and other functional needs.
Eligible groups include state governments or their agencies, registered co-operative societies, companies set up under the Companies Act, 1956, or firms registered under the Limited Liability Partnership Act, 2008, formed by a group of powerloom owners, and local powerloom associations.
The scheme does not allow more than 500 looms under one project proposal. Each project needs approval from the Project Approval Committee before construction starts.
Key Information
| Detail | Information |
|---|---|
| Scheme Name | Group Workshed Scheme |
| Level | Central |
| Beneficiary States | All |
| Category | Business & Entrepreneurship, Transport & Infrastructure |
| Target Beneficiaries | Government organisation, Industries |
| Benefit Type | In Kind |
| DBT Scheme | No |
| Nodal Ministry | Ministry of Textiles |
Benefits
The scheme gives support based on the area needed for your infrastructure development. The maximum admissible area is fixed for each type of facility.
Maximum admissible area:
| Facility | Allocation |
| Automatic loom | 200 Sq.ft / Loom |
| Shuttleless loom | 400 Sq.ft / Loom |
| Wider width shuttleless loom | 600 Sq.ft / Loom |
| Weaving preparatory | Up to 40% of loomage area |
Subsidy details:
| Detail | Amount |
| Subsidy on unit cost of construction | 40% |
| Cap on subsidy | ₹ 120 per Sq.ft |
| Maximum subsidy per beneficiary | ₹ 12 lakh |
Eligibility
To get the benefit, your group must meet the conditions fixed under the modified guidelines. The group size and the number of looms decide whether you qualify.
- Your group should have at least 4 weavers or entrepreneurs, each with a separate legal status. For example, Ramesh, Suresh, Amit, and Ravi can come together while keeping their individual business registration.
- You should install at least 48 modern looms (auto or single width shuttleless) or 24 wider-width shuttleless looms in the workshed.
- Each beneficiary in the group should have at least 6 looms.
- You should install only looms with a technology level of auto looms and above, as per TUFS norms.
Application Process
You should apply through the offline process when notifications are active. The government publishes advertisements in local and national newspapers inviting interested groups to submit their proposals.
STEP 1 - Prepare a detailed project report covering the executive summary, land details, beneficiary details, component-wise project cost, funding pattern, and construction schedule.
STEP 2 - Submit the project report to the Powerloom Development Cell at the Office of the Textile Commissioner, Mumbai, through its Regional Office, with an advanced copy to the PDC.
STEP 3 - The Project Approval Committee reviews and approves the project. After approval, open an escrow account with any scheduled bank.
STEP 4 - Start construction after approval. Receive 30% of the government share in advance if the land is mortgaged to the Government of India; otherwise, get reimbursement in the ratio of 30:30:40.
Documents
To make sure the scheme runs clearly, the Textile Commissioner reviews your project documents and information. You should be ready for unit inspections as required to monitor the progress and proper use of the workshed facilities.
References
Modified Guidelines of Group Workshed Scheme
Group Work Shed Scheme - Old Guidelines
FAQ's
What is the main objective of this scheme?
The goal is to support the establishment of worksheds for modern looms in clusters to improve working conditions, production efficiency, and global competitiveness.
Who can apply for the scheme?
State governments, registered co-operative societies, companies under the Companies Act, LLPs with a minimum of 4 powerloom owners, or local powerloom associations.
How much area is allowed per shuttleless loom under this scheme?
You are allowed 400 Sq.ft per shuttleless loom, while a wider width shuttleless loom gets 600 Sq.ft.
What is the area allowed for weaving preparatory units?
The allotted area is up to 40% of the total loomage area.
What is the subsidy percentage for this scheme?
You can receive a 40% subsidy on the unit cost of construction, capped at ₹ 120 per Sq.ft.
What is the maximum subsidy allowed per beneficiary?
The maximum subsidy is restricted to ₹ 12 lakh per beneficiary, which covers installation of 24 shuttleless looms.
How many looms are required to be eligible?
You need a minimum of 48 modern looms (auto or single width shuttleless) or 24 wider-width shuttleless looms.
Can a single entrepreneur apply under the scheme?
No, a group of at least 4 weavers or entrepreneurs with separate legal entities must apply together.
What is the application mode for this scheme?
The application mode is offline; you should keep an eye on newspaper advertisements for official invitations to apply.