National Handicrafts Development Programme: Infrastructure And Technology Support: URBAN HAAT
80% funding for Urban Haat retail infrastructure · up to ₹8 crore per unit · India
Local bodies, cooperative societies, and producer companies can apply for a central government grant of up to ₹8 crore to set up an Urban Haat — a permanent, year-round marketplace for handicraft artisans and handloom weavers to sell directly to customers and tourists. The implementing agency contributes 20% of the cost and must provide land. Submit a proposal to the nearest Handicraft Service Centre (HSC).
About This Scheme
Local bodies, cooperative societies, and producer companies can apply for a central government grant of up to ₹8 crore to set up an Urban Haat — a permanent, year-round marketplace for handicraft artisans and handloom weavers to sell directly to customers and tourists. The implementing agency contributes 20% of the cost and must provide land. Submit a proposal to the nearest Handicraft Service Centre (HSC).
Full official description
The scheme "Infrastructure and Technology Support: URBAN HAAT" is a Component/Sub-Scheme under the Umbrella Scheme "National Handicrafts Development Programme". The objective of this component is to set up a permanent marketing infrastructure in towns/ metropolitan cities to provide direct marketing facilities to handicrafts artisans/handloom weavers. This will enable them to sell their products around the year to a wider target audience (or customer segment). There will be an adequate number of stalls selling authentic Indian cuisine from various regions in the country by rotation.
Benefits
- Up to ₹8,00,00,000 (₹8 crore) per Urban Haat unit
- Funding split: 40% from DC(Handicrafts) + 40% from DC(Handlooms) + 20% from implementing agency
- Special areas (NER, J&K, Ladakh, A&N Islands, Lakshadweep): 45% + 45% funding, only 10% from agency
- Renovation support up to ₹2.5 crore (fully funded by DC offices)
- Infrastructure includes 50–80 stalls, dormitory for 100 craftspersons, food court, cultural stage, and conference room
💡 Why Startups Should Care
Urban Haats give handicraft artisans a permanent retail presence in cities — direct access to urban consumers without middlemen margins. For an artisan cooperative or producer company, partnering with an implementing agency building an Urban Haat means guaranteed retail space at heavily subsidized infrastructure cost.
Who Can Apply (Eligibility)
- Must be a local statutory body, apex cooperative society, national-level apex society, or a producer company supported by the DC Handicrafts office
- Must have a minimum audited annual turnover of ₹1.5 crore for three consecutive years (exempted for Central/State Government agencies)
- Must contribute 20% of the project cost and provide land
How to Apply
- Download the prescribed proforma from the National Handicrafts Development Programme website.
- Prepare a proposal detailing the Urban Haat location and infrastructure plan.
- Attach recommendation letter from the Field/Regional Office and registration certificate.
- Include Articles & Memorandum of Association, bye-laws, and 3 years of audited financials.
- Submit the proposal to the concerned Handicraft Service Center for review and fund disbursement.
Frequently Asked Questions
What Is The Full Form Of NHDP?
The Full Form of NHDP is "National Handicrafts Development Programme".
What Are The Objectives Of The "Urban Haat" Component Of The Infrastructure & Technology Support Scheme Of NHDP?
The scheme "Infrastructure & Technology Support: URBAN HAAT" is introduced to set up a permanent marketing infrastructure in towns/ metropolitan cities to provide direct marketing facilities to handicrafts artisans/handloom weavers, enabling them to sell their products to a wider target audience.
What Shall Be The Area Of The Haat?
The haat shall be constructed in an area of not less than 8,000 sq. m. and will have a display gallery, food court, etc.
Will The Allotment Of The Stalls To The Artisans Be Fixed Or Will It Be On A Rotational Basis?
The stalls are allotted to artisans on a rotational basis for a nominal rent.
What Is The Full Form Of "SPV"?
The Full Form of "SPV" is "Special Purpose Vehicle".
What Shall Be The Purpose Of The SPVs?
The implementing agencies will be encouraged to form SPVs with the active participation of the various agencies dealing with the promotion of Tourism, Culture, Food, Processing Industry, etc., involving the tour operators, and hotel operators in addition to those dealing with handloom and handicrafts for broad basing and ensure utilization of facilities for a long duration for management and day-to-day running of the same.
What Shall Be The Financial Ceiling For The Implementing Agencies?
The financial ceiling for urban haat is [?] 8,00,00,000 for each unit.
What Percentage Of The Financial Assistance Shall Be Borne By The O/O The DC(HC)?
40% of the admissible amount shall be borne by the O/o the DC(HC) and DC(HL) each.
What Percentage Of The Financial Assistance Shall Be Borne By The Implementing Agency?
20% of the admissible amount will be contributed by the implementing agency.
In The Case Of Andaman & Nicobar Islands, What Percentage Of The Financial Assistance Shall Be Borne By The O/O The DC(HC)?
In the case of NER, Jammu & Kashmir, Ladakh, and Andaman & Nicobar Islands, Lakshadweep - 45% of the admissible amount will be borne by the O/o the DC (HC) and DC(HL) each. 10% of the admissible amount shall be contributed by the implementing agency.
What Shall Be The Amount Of The Financial Assistance For Strengthening/Renovation Of Existing Urban Haats?
Assistance will also be given for strengthening/renovation of existing Urban Haats subject to a maximum financial limit of [?] 2,50,00,000 (100% assistance will be borne by the Office of the DC (Handicrafts) & DC (Handlooms).
What Shall Be The Amount Of The Financial Assistance For "Mini Urban Haats"?
Assistance will also be given for Mini Urban Haats on need-based and feasibility. The financial assistance will be based on the number of stalls, land area & other deliverables in a proportionate manner.
How Many Stalls Shall Be Erected By The Implementing Agency?
50-80 Stalls of 10x8 sq. ft. each shall be erected by the Implementing Agency.
How Many Toilets Shall Be There In The Haat?
There shall be 2 Toilets each for Ladies and Gents.
What Additional Facilities Shall Be There In The Haat?
The following facilities shall be there in the haat: Dormitory for Craftspersons with provisions for a minimum of 100 people Food Court Pavilion/Stage for Cultural Programme Store Room Meeting/Conference Room Souvenir Shop
What Shall Be The Benefits For The Buyers/Tourists?
The Food & Craft Bazaar will provide leisure & recreational facilities for domestic as well as international tourists on the lines of Dilli Haat, which has already attained a prominent status amongst domestic & International buyers/ tourists.
Where Can I Find The Link To The Scheme Guidelines?
The scheme guidelines can be found at this link - http://handicrafts.nic.in/pdf/Scheme.pdf#page=1
Where Can I Find The Link To The Proforma For Proposal?
The Proforma For Proposal can be found at this link - http://handicrafts.nic.in/CmsUpload/05182022101854Scan%20invitation%20of%20testing%20laboratories_organized.pdf
To Whom Shall The Proposal Be Addressed?
The proposals in the prescribed proforma along with all the (self-attested) supporting documents in hard copy should be addressed to the concerned Handicraft Service Center (HSC), O/o the DC (HC).
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Proposal in prescribed proforma
- Recommendation letter of Field Office/Regional Office
- Valid registration certificate
- Articles & Memorandum of Association
- Bye-laws
- Three years' balance sheet and audited statements