Jute Diversification Scheme promotes eco-friendly jute products by setting up resource-cum-production centres across India. It offers skill training, machinery subsidies, and cash incentives to help artisans, women self-help groups, and entrepreneurs earn a steady income.
Ministry of Textiles, Government of India, runs this scheme through the National Jute Board under the umbrella National Jute Development Program (NJDP). The scheme is still active in 2026 and continues to support jute artisans, manufacturers, and exporters to improve production and stay competitive against synthetic fibres.
Jute Diversification Scheme - Introduction
Jute Diversification Scheme spreads awareness about jute products, gives complete skill training, and creates lasting jobs by opening Jute Resource-cum-Production Centres in many states. Basic, advanced, and design-focused training is offered for making jute items.
The scheme gives cash incentives to agencies that work with the board and offers subsidies for buying the required machinery. To take part, an entrepreneur or registered agency must show at least three years of experience in product identification, bulk production, skill training, and marketing of jute diversified products.
As per the Ministry of Textiles, an amount of about ₹124.45 crore was set aside over the last five years for the Market Development and Promotion Scheme and the Jute Diversification Scheme together under NJDP. The umbrella NJDP has an outlay of ₹485.58 crore for the period 2021-26 and is implemented by the National Jute Board to modernise cultivation, strengthen the industry, and promote diversified jute products.
Key Information
| Detail | Information |
|---|---|
| Scheme Name | Jute Diversification Scheme |
| Level | Central |
| Beneficiary Type | Individual and Business Entity |
| States | All |
| Category | Business and Entrepreneurship |
| Sub Category | Setting up, Credit Linked Subsidy, Machine and Skill Upgradation |
| Benefit Type | Cash |
| Nodal Ministry | Ministry of Textiles |
Benefits
Financial support under the scheme is released in two parts. Half of the activity cost is given in advance once the action plan is approved, and the remaining half, including machine costs and incentives, is paid after the report is submitted and the project is finished. All payments go through Direct Bank Transfer.
Financial Assistance
- Organising cycles: The scheme gives an estimated cost of ₹12,40,000 for five training cycles, with 24 beneficiaries in each cycle.
- Collaborating agency incentive: Agencies get ₹2,48,000, which is 20% of the activity cost, for infrastructure maintenance and management.
Infrastructure and Equipment
- Infrastructure: ₹12,000 is given for installing biometric machines, internet connectivity, and maintenance.
- Machinery subsidy: Each centre can get up to ₹9,00,000 per year for 72 machines, capped at a 50% subsidy or a maximum of ₹12,500 per machine.
Performance Conditions
- Agencies must make sure at least 50% of trainees take up jute-related production after training.
- Self-employed people must generate sales of at least ₹5,000 per month or ₹15,000 per quarter.
- Use of Aadhaar-linked biometric attendance at the training site is required.
Eligibility
Only bonafide Indian agencies and citizens can apply. Jute entrepreneurs, manufacturers, exporters, non-governmental organisations, cooperative societies, and public sector undertakings are all eligible. The entity must have at least three years of verifiable experience in jute product identification, bulk production, and training.
- Applicants must own 250 sq. ft. of office space and 500 sq. ft. of dedicated space for the production centre.
- The project must secure at least 50 marks in the evaluation criteria.
- At least 70% of training beneficiaries must be women or part of Women Self Help Groups.
- The 70% female participation requirement is relaxed if the entity employs at least 50% of its trainees in a full-fledged manufacturing unit.
Application Process
Proposals for the Jute Diversification Scheme are submitted to the National Jute Board. The process is explained below in simple steps.
STEP 1 - Go to the official website of the Ministry of Textiles at Jute Sector Schemes to find the latest scheme details and guidelines before starting the proposal.
STEP 2 - Fill in the online form with details of your agency profile, infrastructure, and past experience, then submit the proposal online and print the acknowledgement receipt.
STEP 3 - Prepare a physical copy of the application, including a covering letter on your company letterhead and the signed acknowledgement, and attach all required supporting documents.
STEP 4 - Submit the package to the Head Office or the relevant Regional Office of the National Jute Board. The board reviews applications on experience and infrastructure, and shortlisted candidates are recommended to the Monitoring Committee for final approval.
Support Contacts
Email: jute@njbindia.in
Address: National Jute Board, 3A and 3B, Park Plaza, 71, Park Street, Kolkata 700 016.
Documents
The following documents are needed while applying for the scheme, grouped by type.
- Legal and Ownership: Registration certificates, partnership deeds, or society registration documents.
- Administrative: Aadhaar card of the authorised representative, PAN card, and address proof.
- Financial: Audited statements, IT returns for the last year, and GST returns for the last three years.
- Operational: Project experience certificates, concept note, and bank account details such as a cancelled cheque.
- Post-Selection: Bank guarantee, action plans, attendance records, geo-tagged photographs, and expenditure receipts.
References
Latest information about the Jute Diversification Scheme can be checked on the official pages below.
- Ministry of Textiles - Jute Sector Schemes
- Press Information Bureau - Promotion of Jute Lifestyle Products
FAQ's
What financial security must I provide after receiving initial approval?
A bank guarantee equal to 50% of the activity cost is required, which is ₹1,24,000 for one training cycle.
How much space is required for the production centre?
At least 500 square feet of space must be set aside only for the resource and production centre.
Are there specific citizenship requirements?
Yes, the applicant must be an Indian entity, and functionaries must be Indian citizens.
What are the minimum sales targets for self-employed trainees?
Trainees must achieve sales of at least ₹5,000 per month or ₹15,000 per quarter.
Is there a seat reservation for women beneficiaries?
At least 70% of participants must be women or members of Women Self Help Groups.
What is the minimum qualifying score for selection?
Proposals must score at least 50 out of 100 marks in the evaluation review.
How quickly must the equipment be installed?
New machinery must be procured and installed within one month of receiving in-principle approval.