Ministry of Textiles

Office of the Development Commissioner for Handlooms

Frequently Asked Questions (FAQ) pertaining to Block Level Cluster (BLC), a component of NHDP/CHCDS

What are the objectives of the Block Level Cluster (BLC)?

Block Level Cluster aims to develop the cluster in an integrated & holistic manner by providing assistance for need based interventions.

What is the definition and size of a cluster?

Cluster will be set up at Block level, having concentration of handlooms. A Block can have more than one cluster depending upon number of handlooms, their geographical spread etc. Size of cluster is flexible & it may have any number of handlooms but it is preferred to have at least 100 handlooms.

How does the scheme help a weaver in increasing his earnings?

The scheme envisages skill upgradation of the weavers through training;, improve productivity through upgradation of the existing looms, development/diversification of products through design interventions, create necessary infrastructure etc and thereby lead to increase in the earnings of the weavers.

What are the components of Block Level Cluster?

Following components are eligible for financial assistance in Block level cluster:-
  • Setting up of Common Facility Centres(CFCs), including Common Service Centre (CSC)
  • Skill up-gradation.
  • Engaging designer-cum-marketing executive.
  • Project Management Cost
  • Corpus fund for yarn depot
  • Product development
  • Computer Aided Textile Design (CATD)
  • Technology up gradation
  • Construction of individual Workshed
  • Lighting units
  • Setting up of Dye House with Effluent Treatment Plant (ETP) at district level

What is the duration of implementation of Block Level Cluster project?

Duration of implementation of Block Level Cluster project is three years from the date of issue of sanction order for 1st installment.

What are the component-wise financial limits?

Component-wise upper limit of funding
  • Upto Rs. 50.00 lakh for setting up of CFC, including Common Service Centre
  • Upto Rs. 70.00 lakh for interventions directly benefitting the individual weavers, workshed, technology up gradation, lighting unit etc. Funding for construction of Workshed is limited to 1/3rd of Rs. 70.00 lakh.
  • Upto Rs. 35.00 lakh for skill up-gradation in technical, managerial areas and IT.
  • Upto Rs. 15.00 lakh for engaging designer-cum-marketing executive
  • Upto Rs. 15.00 lakh as Project Management Cost
  • Upto Rs. 5.00 lakh as corpus fund for yarn depot
  • Upto Rs. 10.00 lakh for other interventions, including product development, documentation of cluster activities. Computer Aided Textile Design (CATD) system, service charges to designated agency for transfer of funds through DBT in the Bank account of beneficiaries for purchase of looms/dobby/jacquards etc.
  • Note::CATD will be made available for a group of clusters at Weavers’ Service Centre concerned.
Total : Upto Rs. 2.00 crore per cluster in a Block
  • In addition, upto Rs. 50.00 lakh for setting up of dye house, with Effluent Treatment Plant (ETP), if required at district level.

What is funding pattern?

Funding Pattern
(i) All interventions except those directly benefiting individual weavers will be 100% funded by GoI
(ii) Direct benefits to individual - 90:10 by the GoI : beneficiary
(iii) Workshed-BPL/SC/ST/Women – 100% by GoI Others – 75% by the GoI: 25% beneficiary

Who is eligible to avail financial assistance for BLC projects?

Implementing agency
1 National Level Handloom Organizations
2 State Handloom Development Corporations.
3 State Apex Handloom Weavers’ Co-operative Societies.
4 Central Government Organizations.
5 Bigger Primary Handloom Weavers’ Co-operative Society, having large presence in the Block as identified by the State Govt. but their project should cover atleast 30% non-member weavers of the cluster and Self Help Groups registered as legal entity.
6 Non Government Organizations, engaged in the handlooms {(recommended by the State Govt. and approved by the DC (Handlooms)}. NGOs securing atleast 60 marks, out of total 100 marks shall only be considered.
7 Any other appropriate legal entity working for handlooms (recommended by the State Govt. and approved by the DC (Handlooms).
Note:: Eligible agencies (except SPV) should have net profits in last two years.

In how many installments, funds are released?

Funds will be released in two equal installments to the IA. 1st installment will be released as advance, and 2nd installment will be released on receipt of 70% utilization Certificates and Physical & Financial Progress report of 1st installment. In respect of individual interventions, except Hathkargha Samvardhan Sahayata (loom/accessories) benefitting individual weavers, financial assistance will be released in the Bank account of the beneficiary by IA through DBT. For Hathkargha Samvardhan Sahayata (loom/accessories), funds shall be released to designated agency i.e. National Handloom Development Corporation (NHDC) for onward release to the beneficiaries for payment to the supplier.

Who will release funds to beneficiaries for lighting unit and construction of workshed?

IA will release the funds to beneficiaries in their bank a/c.

What is Hathkargha Samvardhan Sahayata?

Financial assistance is provided for purchase of looms, jacquard, dobby etc. by GoI to the beneficiary through NHDC

What are the admissible items with their cost under Hathkargha Samvardhan Sahayata?

What are the admissible items with their cost under Hathkargha Samvardhan Sahayata?

Sr.No Items Cost
1 Pneumatic jacquard system for a set of 4 handlooms Rs.40,000/-
2 Motorized jacquard on the existing handloom Rs.15,000/-
3 Take-up & let off motions on the existing handloom (including fitting charges) Rs.5,000/-
4 Multiple box motion Rs.3,000/-
5 Multiple buti weaving sley Rs.7,000/-
6 Twin cloth weaving mechanism (including fitting charges) Rs.5,000/-
7 Jacquard with complete set including installation Rs.15,000/-
8 Dobby Rs.5,000/-
9 Healds reeds, bobbins, shuttles etc. (set) Rs.4,000/-
10 Frame loom
a) upto 60”
b) above 60”

11 Asu Machine (Mannual) Upto Rs.10,000/-
12 Asu Machine (Motorized) Upto Rs.30,000/-
13 Warp beam & fabric beam Upto Rs.5,000/-
14 Normal warping machine Upto Rs.25,000/-
15 Motorized warping machine Upto Rs.45,000/-
16 Motorized Pirn Winding machine Upto Rs.3,000/-
17 Motorized Prin- cum bobbin/ dubba Winding machine Street Sizing Kit (brush, sticks, spray gun etc.) Upto Rs.4,000/-
Upto Rs.10,000/-

How much financial assistance is provided for construction of workshed?

For Construction of workshed, financial assistance is provided @ Rs. 70,000/- per workshed, measuring 20 sq. mtrs.

What is procedure for submission of proposals?

Project proposal for Block Level Clusters are submitted to O/o DC(HL) by the State Govt./Director in-charge of Handlooms concerned.

In which disciplines the training is providing under skill up-gradation?

Training is provided in weaving, designs, dyeing/printing, IT, Managerial etc.

What is duration of training programmes?

Duration of training programme in weaving is 45 days while for designing, dyeing/ printing is 15 days.

What is batch size for training programmes?

Batch size is 20 beneficiaries for each programme.

Discipline-wise how much assistance provided?

Financial assistance is provided for each programme upto Rs.4.28 lakh for weaving and Rs.1.27 lakh each for designing, dyeing/printing.

How much stipend is paid to trainees during training programme?

Stipend to trainees is paid @ Rs.210 per day.

What is Project Management Cost?

It is mainly for engaging Cluster Development Executive (CDE) and Security-cum-assistant. Recurring expenses can also be met out from balance funds.