Cluster Development Scheme
Cluster Development Scheme helps groups of 25+ Micro and Small Enterprises working in the same trade get shared infrastructure, design support, training, and technology upgrades — reducing individual costs and increasing collective competitiveness.
About This Scheme
Cluster Development Scheme helps groups of 25+ Micro and Small Enterprises working in the same trade get shared infrastructure, design support, training, and technology upgrades — reducing individual costs and increasing collective competitiveness.
Full official description
Launched in 2003-04, the scheme "Cluster Development Scheme" by the Industries & Mines Department, Government of Gujarat, aims to enhance the productivity and competitiveness of artisans in the handloom and handicraft sector through cluster-based development approach, addressing common issues faced by Micro and Small Enterprises such as improvement of technology, skills, quality, market access, and access to capital. The scheme provides various types of assistance like Diagnostic Survey, design Development, Training, Common Facility Centre, margin money, managerial subsidy, publicity, export, and Marketing Facility to clusters of minimum 25 artisans or more who work and produce goods at one place. The applicant must be part of a cluster with minimum 25 artisans and must be engaged in handloom and handicraft activities in Gujarat state. The scheme is implemented by Boards and Corporations working under Cottage Commissionerate and reputed institutions such as National Institute of Design, National Institute of Fashion Technology, etc.
Benefits
- Diagnostic survey of cluster needs (funded)
- Design & product development support
- Skill training programmes for artisans
- Common facility centres (shared machinery/equipment)
- Technology upgrades and market linkage support
- Administered by: Office of Development Commissioner (MSME)
Who Can Apply (Eligibility)
Cluster of minimum 25 artisans or enterprises working at one place, producing goods in the same trade or craft. Apply through an industry association or cluster-level body.
How to Apply
Step 1: The representative of the cluster should approach one of the following implementing agency and request the hard copy of the prescribed format of the application form from the designated staff.
- Boards and Corporations working under Cottage Commissionerate
- National Institute of Design
- National Institute of Fashion Technology
- SHRUJAN, SAHAJ, ICCED & Freelance Designers
- Gujarat Mahila Khadi Rashtriya Gramin Trust (the Nodal Agency)
Step 2: In the application form, fill in all the mandatory fields, and attach copies of all the mandatory documents (self-attest, if required).
Step 3: Submit the application for specific assistance required (Diagnostic Survey, Training, Common Facility Centre, etc.).
Step 4: Request a receipt or acknowledgement from the concerned authority to whom the application has been submitted. Ensure that the receipt contains essential details such as the date and time of submission, and a unique identification number (if applicable).
Post-Application Processes
Step 1: The implementing agency will conduct assessment of the cluster's needs, potential, and eligibility for the requested assistance through diagnostic surveys and field visits.
Step 2: Upon approval, the implementing agency will provide the sanctioned assistance and support services as per the approved project plan and scheme guidelines.
*Regular monitoring and evaluation will be conducted to ensure proper utilization of assistance and achievement of desired outcomes for cluster development.
Frequently Asked Questions
What is the minimum number of artisans required to form a cluster that qualifies for assistance under this development program?
The cluster must have a minimum of 25 artisans or more who work and produce goods at one place to be eligible for assistance.
Can individual handloom workers apply for this assistance or do we need to be part of a group to qualify for benefits?
You must be part of a cluster with minimum 25 artisans working together at a common location; individual applications are not accepted under this scheme.
What types of financial and non-financial assistance are available to eligible clusters under this development program for artisan communities?
The scheme provides Diagnostic Survey, Design Development, Training, Common Facility Centre, margin money, managerial subsidy, publicity, export assistance, and marketing facility support.
Where can I obtain the application form and which organizations are authorized to provide assistance under this cluster development initiative?
You can approach Boards and Corporations under Cottage Commissionerate, National Institute of Design, National Institute of Fashion Technology, SHRUJAN, SAHAJ, ICCED, Freelance Designers, or Gujarat Mahila Khadi Rashtriya Gramin Trust.
What business classification requirements must my enterprise meet to be eligible for participation in this handloom and handicraft cluster program?
Your enterprise must be classified as Micro or Small Enterprise and be engaged in artisan-based activities in handloom and handicraft sector.
What evidence do I need to provide to demonstrate that our cluster has the required number of artisans working together?
You need to submit a Cluster Formation Certificate and a List of Participating Artisans with minimum 25 members as part of the documentation requirements.
How long has this cluster development program been available to support artisans in the handloom and handicraft sector in Gujarat?
The scheme was launched in 2003-04 by the Industries & Mines Department, Government of Gujarat to enhance productivity and competitiveness of artisan clusters.
What specific documentation do I need to provide regarding our production activities and workshop facilities during the verification process?
During verification, you must provide production evidence through product samples/photographs and facility details including workshop/production area documentation to demonstrate your cluster's activities.
Can artisans working in different locations within Gujarat form a cluster together, or must we all work at the same place?
All cluster members must work and produce goods at one place or common location; geographically dispersed artisans cannot form a qualifying cluster.
What type of project proposal documentation is required when applying for specific types of assistance like Common Facility Centre or training programs?
You need to submit a Project Proposal for specific assistance requested, detailing your requirements and plans for utilizing the cluster development support.
Must all cluster members be involved in the same type of handloom or handicraft activity, or can we have different specializations within our group?
The scheme covers both handloom and handicraft activities, so cluster members can have different specializations within these sectors while maintaining the minimum 25 artisan requirement.
What ongoing obligations and compliance requirements must our cluster fulfill to continue receiving benefits throughout the program duration?
You must maintain minimum 25 artisans, continue handloom and handicraft activities, comply with scheme guidelines, participate in mandated training programs, and submit periodic reports.
How are applications processed after submission and what is the typical timeline for receiving approval or rejection notifications?
Applications undergo verification by the concerned implementing agency, though specific processing timelines are determined by the individual boards and institutions handling the applications.
What banking documentation do I need to provide for receiving financial assistance like margin money or managerial subsidy through this program?
You must provide bank account details including passbook copy or cancelled cheque to facilitate disbursement of financial assistance through the cluster development scheme.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- > **At Application Stage**
- Cluster Formation Certificate
- List Of Participating Artisans (Minimum 25)
- Identity Proof (Aadhaar Card/Voter ID/Passport)
- Address Proof
- Business Registration Certificate (If Applicable)
- Bank Account Details (Passbook Copy/Cancelled Cheque)
- Project Proposal (For Specific Assistance)
- Micro Small Medium Enterprise Registration Certificate
- > **For Verification Stage**
- Production Evidence (Product Samples/Photographs)
- Facility Details (Workshop/Production Area Documentation)
- Skill Certificates (If Available)