AI SummaryNew Charkha-Loom Scheme offers 65% financial support to registered Khadi spinners and weavers in Gujarat for buying modern Amber Charkhas and looms. The scheme is implemented by the Commissioner of Cottage and Rural Industries under the Industries and Mines Department, Government of Gujarat, and is meant to modernize Khadi production while keeping traditional craft alive.
As of August 2026, the scheme continues to help Khadi artisans upgrade their equipment. A spinner pays only ₹4,550 on a ₹13,000 charkha, and a weaver pays only ₹10,500 on a ₹30,000 loom, with the rest covered by the government. The subsidy amount is credited directly to the bank account of the eligible person after verification.
New Charkha-Loom Scheme
This scheme is a state-level initiative for Gujarat that supports individual spinners and weavers. The support is given as a cash subsidy on the purchase of new equipment, which lowers the money burden on the artisan and helps in producing more Khadi cloth. The scheme is run through registered Khadi and Polyvastra organizations, so only artisans linked to a certified institution can claim the benefit.
Highlights
| Detail | Information |
|---|---|
| Scheme Name | New Charkha-Loom Scheme |
| Level | State |
| Beneficiary Type | Individual |
| Target State | Gujarat |
| Category | Business and Entrepreneurship |
| Benefit Type | Cash Subsidy |
| Subsidy | 65% on equipment cost |
| Nodal Department | Industries and Mines Department |
Benefits
New Charkha-Loom Scheme funds a big part of the equipment cost so that the artisan has to spend less from their own pocket. The financial support is structured as a fixed subsidy on two types of equipment:
| Item | Total Cost | Subsidy (65%) | Your Contribution |
|---|---|---|---|
| Amber Charkha | ₹13,000 | ₹8,450 | ₹4,550 |
| Loom | ₹30,000 | ₹19,500 | ₹10,500 |
Once the documents are checked and verified, the subsidy amount is sent directly to the bank account of the eligible person. This makes the whole process clear and easy for the artisan.
Eligibility
An applicant can claim the subsidy only if they meet the conditions given below:
- The applicant must be a registered Khadi or Polyvastra spinner or weaver linked to a recognized institution.
- The organization must hold a valid and active Khadi certification that proves the production status of the artisan.
- The equipment purchased must be used strictly for active Khadi production and not for any other purpose.
Application Process
The application is done offline through the local Khadi institution or the District Industries Center. The steps are simple and are explained below.
STEP 1 - Purchase the Amber Charkha or loom from an approved vendor and collect the purchase invoice. The invoice is a required proof for the subsidy claim.
STEP 2 - Visit the local Khadi institution, the Cottage Industries Office, or the nearest District Industries Center (DIC) and ask the staff for the prescribed application form for the subsidy claim.
STEP 3 - Fill in all the mandatory fields in the form and attach copies of the required documents, such as purchase invoices and certification proof.
STEP 4 - Submit the duly filled and signed application form along with the copies of the documents to the designated staff and collect an acknowledgement receipt for the record.
Documents
These documents should be collected before applying so that the process goes smoothly:
- Valid Khadi or Polyvastra certification.
- Proof of registration with a recognized Khadi institution or organization.
- Original purchase invoices for the new Charkha or loom.
- Bank account details for the direct deposit of the subsidy amount.
References
Guidelines for Incentives for Cottage and Rural Industries
Cottage and Rural Industries Policy Details (Page 29)
FAQ's
What financial support is given for purchasing an Amber Charkha?
A 65% subsidy of ₹8,450 is given on the total equipment cost of ₹13,000 for an Amber Charkha.
Who can apply for the loom subsidy?
Registered Khadi or Polyvastra weavers who are linked to a certified Khadi institution are eligible for the loom subsidy.
How is the subsidy amount sent to the beneficiary?
After the documents are verified, the government transfers the subsidy amount directly into the bank account of the eligible person.
What is the total cost of a loom covered under this scheme?
The scheme subsidizes looms priced at ₹30,000, with a 65% subsidy of ₹19,500.
Is membership in an organization required to apply?
Yes, the applicant must be a registered member of a Khadi or Polyvastra certified institution to claim the benefit.
Which documents are needed to claim the subsidy?
Purchase invoices, Khadi certification, proof of organization registration, and bank account details are required.
Does the scheme cover both Charkhas and looms?
Yes, the scheme gives separate subsidies for both types of equipment, ₹8,450 for an Amber Charkha and ₹19,500 for a loom.
Where should the application form be submitted?
The completed form should be submitted at the local Khadi institution or the nearest Cottage Industries Office.
Can a non-Khadi weaver apply?
No, this scheme is made only for registered Khadi or Polyvastra spinners and weavers.
How much does a weaver pay for a loom?
After the 65% subsidy is applied to the ₹30,000 cost, the weaver pays the remaining 35%, which is ₹10,500.
How does the government confirm the production status?
The valid Khadi institution certification serves as proof of active Khadi production.
Must the equipment be bought from a specific vendor?
Yes, the equipment should be purchased from approved vendors so that it meets the required standards and the invoice is accepted.
Does the scheme offer funds for repairs?
No, the financial support is strictly for the purchase of new Amber Charkhas and looms, not for repairs or upgrades.