National Handicrafts Development Programme: Infrastructure And Technology Support: Urban Haat

National Handicrafts Development Programme: Infrastructure And Technology Support: Urban Haat helps handicraft artisans and handloom weavers by setting up permanent marketing spaces in towns and cities across India. This scheme gives skilled craftspeople direct access to buyers through year-round marketplaces that also feature authentic Indian food stalls from different regions.

The Office of the Development Commissioner (Handicrafts), Ministry of Textiles runs this programme alongside the Development Commissioner (Handlooms). Urban Haats work on the lines of Dilli Haat, creating cultural destinations where visitors can explore handmade products while enjoying regional cuisine. The Ministry of Textiles continues inviting proposals for Urban Haat infrastructure under NHDP for the financial year 2026-27.

National Handicrafts Development Programme: Infrastructure And Technology Support: Urban Haat

This component falls under the umbrella National Handicrafts Development Programme. The goal is straightforward: build permanent marketing infrastructure in urban centres so artisans can sell their crafts directly to customers throughout the year. Each haat covers an area of at least 8,000 square metres and includes a display gallery, food court, and space for cultural programmes. Stalls go to artisans on a rotational basis at a small rent charge.

The implementing agencies must sign a Memorandum of Understanding that spells out clear deliverables. These agencies often form Special Purpose Vehicles with tourism operators, hotel chains, and food service providers to keep the haat running smoothly over the long term. Both weavers and handicraft artisans can participate in these markets.

Benefits

The scheme offers substantial financial support for building and maintaining Urban Haat units. Below is the breakdown of funding available:

• New Urban Haat Unit: Financial ceiling of ₹800 Lakh per unit with shared funding between central authorities and the implementing agency
• Special Region Units: Enhanced central support at 90% (45% + 45%) for North Eastern Region, Jammu & Kashmir, Ladakh, Andaman & Nicobar Islands, and Lakshadweep
• Renovation of Existing Haats: Assistance up to ₹250 Lakh fully covered by the Office of DC (Handicrafts) and DC (Handlooms) for strengthening or renovating already operational Urban Haats
• Mini Urban Haats: Provision exists for smaller units on a need-based assessment and feasibility study basis

The implementing agency provides land separately, which does not count toward its financial contribution. For example, an agency in a special region contributes just 10% of the project cost while receiving 90% funding from central sources. The infrastructure must include between 50 to 80 stalls measuring 10 by 8 square feet each, separate toilet facilities for men and women, a dormitory accommodating at least 100 craftspersons, a food court pavilion, a stage for cultural performances, a store room, a meeting or conference room, and a souvenir shop.

Eligibility

You can apply if you represent a local statutory body, an Apex Cooperative Society, or a National level Apex Society registered under the Societies Registration Act or Trust Act. Producer companies supported by the Office of DC Handicrafts qualify as well. Central and State Handloom and Handicrafts Development Corporations, Central Cottage Industries Corporation of India Ltd., and other eligible government bodies promoted by state governments are also eligible. Non-government organizations empanelled with O/o DC(Handicrafts), registered Self Help Groups, exporter bodies, and associations like IICT, MHSC, HMCM, NIFT, and Export Promotion Councils may apply. Additionally, producer companies registered under Section 8 of the Companies Act working for handicraft and handloom promotion can submit proposals.

Application Process

STEP 1 - Visit the official portal at indian.handicrafts.gov.in and navigate to the proposal submission section for Infrastructure and Technology Support components under NHDP.

STEP 2 - Download the prescribed proforma and Detailed Project Report (DPR) format from the official website for the relevant component you wish to apply for.

STEP 3 - Prepare all mandatory documents including your registration certificate, audited balance sheets for the last three years, a detailed project report covering infrastructure plans and budget, an affidavit confirming non-corrupt practices, and proof of land availability.

STEP 4 - Submit the complete proposal through the online portal before the deadline specified in the annual advertisement. Ensure all fields are filled accurately and all required attachments are uploaded.

For renovation projects, additional documentation showing the current condition of the existing haat and a plan for the proposed improvements will be needed. Funds release follows a three-installment pattern: 50% as advance, 40% after submitting utilization certificate for 80% of the first installment, and the remaining 10% as reimbursement upon receipt of audited expenditure statements in GFR-12A format along with performance reports.

Documents Required

Your proposal package must include several key documents. You will need a valid registration certificate proving your legal standing as an organization. Audited balance sheets spanning the previous three financial years demonstrate your financial capacity. A comprehensive project report detailing the infrastructure design, budget breakdown, implementation timeline, and expected outcomes is essential. An affidavit regarding non-corrupt practices signed by an authorized representative must accompany the application. If applying for renovation assistance, include photographs of the existing facility and a detailed renovation plan. For reimbursement claims, submit monthly performance reports, utilization certificates in GFR-12A format, and audited accounts verified by a chartered accountant.

References

View Complete NHDP Scheme Guidelines (PDF)

Visit Official Portal - Indian Handicrafts

FAQ's

What is the full form of NHDP?

The full form is National Handicrafts Development Programme.

What is the main objective of this scheme?

The scheme aims to set up permanent marketing infrastructure in towns and cities so artisans and weavers can sell their products directly to customers throughout the year.

What is the financial ceiling for an Urban Haat unit?

Each Urban Haat unit has a financial ceiling of ₹800 Lakh, which equals ₹8 Crore.

How is the funding shared for normal areas?

In standard areas, the Office of DC (Handicrafts) and DC (Handlooms) each contribute 40%, while the implementing agency provides the remaining 20%.

What facility is available for existing Urban Haats?

Assistance for renovation or strengthening of existing Urban Haats is available up to ₹250 Lakh, fully funded by the Office of DC (Handicrafts) and DC (Handlooms).

Are stalls allotted permanently?

No, stalls are allocated to artisans on a rotational basis to ensure fair opportunities for everyone.

What is the minimum land area required for an Urban Haat?

The haat must be constructed on a minimum area of 8,000 square metres.

Who implements this scheme?

The Office of the Development Commissioner (Handicrafts) and the Office of the Development Commissioner (Handlooms) jointly implement this programme through eligible state and central corporations, cooperative societies, and registered organizations.