IndiaFilings » Learn » Ambedkar Hastshilp Vikas Yojana

Ambedkar Hastshilp Vikas Yojana

Ambedkar Hastshilp Vikas Yojana

Ambedkar Hastshilp Vikas Yojana

The Central Government has launched a scheme entitled “Ambedkar Hastshilp Vikas Yojana” to facilitate credit access for handicraft artisans by providing interest subvention. The scheme is operated as a Cluster Specific Scheme and headed by the Development Commissioner (Handicrafts). This scheme aims at promoting Indian handicrafts by developing artisans’ clusters in the country. In this article, we look at the Ambedkar Hastshilp Vikas Yojana (AHVY) in detail.

To know about Mukhya Mantri Karigar Sahayata Yojana


The objective of the Ambedkar Hastshilp Vikas Yojana(AHVY) are as follows:

  • Promoting premium handicrafts stocks for the niche market.
  • Expansion of production base for utility-based, lifestyle and mass production handicrafts products.
  • Preservation and protection of heritage/ languishing crafts.

Features of the Scheme

  • Mobilisation of artisans groups/ SHGs formation with the office-bearers.
  • The survey will be Conducted for each artisan in the prescribed format
  • Holding awareness camps for the cluster artisans, discussion and formation of the Annual action Plan of the activities
  • Opening of Bank accounts of SHGs.
  • Facilitating the opening of Bank accounts of the Individual artisans under Jan Dhan Yojna
  • Processing of the scanned data in MS Excel Sheet format containing artisans’ details such as identity card number, Photographs, Aadhar number, EPIC number, bank account number with bank name.
  • Including each artisan under RSBY and AABY Scheme.
  • The Issuance of Artisans’ Identity Cards (AIC) to all the cluster artisans
  • The appointment of cluster Manager will be decided as per the qualification and experience, registration and formation of Producer Company/ Federation/ Institutions with at least 50% of the Cluster artisans as members/ shareholders.
  • Artisans’s Credit Card (ACC): The ACC scheme has been formulated to provide adequate and timely assistance by the banking institutions to the artisans to satisfy their credit requirements of both investment needs as well as working capital need in a flexible and cost-effective manner. The scheme is being implemented through Scheduled Banks both in rural and urban areas.

Eligibility Criteria

Below are the eligible organizations, who are able to apply the project under Ambedkar Hastshilp Vikas Yojna are as follows:

  • Apex cooperative societies
  • Cooperatives
  • Trusts of Handicraft Artisans
  • Central and State Handlooms and handicraft
  • development corporations
  • Other related Government Corporations/ agencies promoted by State Government or Financial Institutions.
  • Export Promotion Council for Handicrafts (EPCH)
  • Reputed NGOs
  • Reputed designers from India and abroad
  • Exporters and Entrepreneurs registered under section 25 of Company act (Non-profit), etc.
  • Federation of NGOs/ SHGs Consortium etc. registered under the proper statute
  • National Centre for Design& Product Development (NCDPD)
  • Metal Handicraft Service Centre (MHSC)
  • Organizations registered under the proper statute of state / central govt., for sustainable development of identified craft clusters.

Note: For a few specific components eligible organizations are mentioned along with the details of the components and only those organizations will be eligible for implementing such components.

 Documents Required

The below following are the list of documents to be furnished along with the Project Registration application:

  • Copy of the address, Copy of Aadhar Card and Pan Card of Partners/Authorized representative, Director of the Company, Society, Trust, Authority as required.
  • Copy of memorandum of association and Bye-laws certified by the appropriate authority. [Self-attested]
  • Copy of legal registration certificate under the proper statute.
  • Copy of audited balance record ( by a chartered accountant ) for the last 3 years.
  • Copy of Annual report for the last 3 years.
  • Copy of the minutes of last AGM
  • List of Office Bearers of the Organization with their Full name Complete Postal address with the PIN, Phone/Mobile number and E-mail.
  • Copy of resolution for financial assistance under a particular scheme from the office of DC(Handicrafts).
  • Name and address of Bank, details of account and account number
  • Details of funds received from the office of DC(Handicrafts) during the last 3 years and its status of utilization
  • Details of funds received from other central/state government department or agencies during the last 3 years and its status of utilization.
  • Name of project head, Nodal officer, authorized contact official with his personal details.

List of beneficiaries proposed indicating their details Affidavit regarding:

  • Majority of members of the supervising body who do not relate to the same family.
  • Details of the persons holding membership in any other society registered anywhere in India
  • That Organization is not involved in any fraudulent practices and has not been blacklisted by any Central/ state agencies.
  • That organization is a non-profit.

Support under the Scheme

The package of support under AHVY can be clubbed under the following components:

S.No. Components Support and Services provided under AHVY

Social interventions


Diagnostic survey and formulation of the project plan

Mobilization of artisans

2. Technological interventions

Assistance for training the trainers

Assistance for design and technological upgradation

Financial assistance for development and supply/dissemination of modern improved tools, equipment etc

Documentation, preservation and revival of languishing crafts etc

3. Marketing interventions

Marketing events

Marketing infrastructure


Marketing Services

4. Financial interventions Margin money
5. Cluster specific infrastructure-related inventions

Establishment of Resource Centre for major crafts

Establishment of E-kiosks

Creation of Raw Material Banks

Setting up of Common Facility Centre.

Technological assistance by setting up of Facility Centres by Exporters/ Entrepreneurs, etc.

Financial assistance and Funding Pattern

Social Interventions

  • The assistance amount will be provided to the tune of INR 300 per artisan for the number of persons to be mobilized and surveyed for the empowerment in the form of a grant in aid.
  • The assistance amount will be provided for a maximum of INR 1 lakh per year for a maximum of 3 years for the formation of Producer Company/Federation or Institution.
  • The full assistant amount (100%) will be released only after the registration as an advance for the 1st year to the organization for the formation and registration of the Producer Company/Federation or Institutions. From the 2nd year onwards the organization will be provided with 75% of their annual recurring expenditure in advance subject to a maximum of INR 1 lakh, which will be deducted to 50% for the 3rd year subject to a maximum of INR 1 lakh. The grants will be released based on the suitable conditions fulfilled by the organizations. The amount will be credited directly to the account of the organization.
  • In so far as possible existing Self Help Groups (SHGs) formed under different schemes of Government of India and State Government must be leveraged. In short, the formation of new SHGs must be done only where no SHGs exist.

Technological Interventions

  • Financial Assistance of about Rs.5000/- per tool kit will be provided for the Technological Interventions
  • Financial Assistance of the maximum up to Rs.1,80,000/- per workshop will be provided for the Workshops for developing new prototypes and introduction of new techniques and technologies
  • Financial Assistance of the maximum up to Rs.10 lakhs will be provided for the Study of the cluster and its market, development of new tools, process, techniques etc. test marketing and documentation
  • Financial Assistance of the maximum up to Rs.1,81,000/- for training for other than carpet and maximum Rs.5,75,000/- for carpet. (Rs.64,000 will be a share of implementing agency)
  • Financial Assistance of the maximum up to Rs.6,70,000/- will be provided for organising seminar and symposium focusing on policy issues and problems
  • Financial Assistance of Rs.5 lakhs per study will be provided for the study on need-based technology process and infrastructure

Marketing Interventions

Organizations Assistance Amount
For states other than NER & Jammu & Kashmir 75% subject to actual maximum up to Rs.1,38,750/-. Artisans for demonstration purpose are eligible for TA/DA
For organizations hailing from NER & J&K if organized outside their respective region 100% of Rs.1,85,000/- and Rs.2,000 per artisan subject to a maximum of Rs.30,000/- will be provided as transportation charges. Participants for demonstration as well as sales are eligible for TA/DA
Organizations hailing from NER & J&K if organized within their respective region 75% subject to actual maximum up to Rs.1,38,750/-. Artisans for demonstration purpose are eligible for TA/DA
  • Financial Assistance about 75% of actual and 100% in case of printing of Brochure, Folders/Maps, Catalogues etc. of products will be provided.
  • Financial Assistance about 50% of the project cost a maximum of up to Rs.23 lakhs for new emporia in own building, Rs.11.50 lakhs for new emporia in rented promise and Rs.5.75 lakhs for renovation/ expansion of emporia will be provided.
  • The whole of 100% assistance maximum up to Rs.4 lakh per Cluster visit will be provided by the Government.
  • The whole of 100% assistance 100% and depends on merit will be provided for the exposure to the best practices in India and abroad
  • The whole financial assistance 100% to the maximum up to Rs.1 lakh per workshed will be given for the storage space for finished products and raw materials and working place to the artisan’s groups
  • Financial Assistance of Rs.2 lakhs per batch of training will be given for the organising training for the development of entrepreneurship quality

Financial Interventions

  • 100% assistance that will be of Rs.4000/- per artisan of the SHGs with a maximum ceiling of Rs.5,00,000/- per cluster will be provided for the generation of the common corpus with enhanced credit facilities and assist cluster to avail loan/ assistance from banks and financial institutions
  • The assistance of Rs.2756/- per month for 60 months will be credited to the cluster manager
  • Project Implementing Agencies will be provided with 5% of the total amount released during the project period with a higher ceiling of Rs.1,00,000/- for projects implemented up to Rs.25,00,000/- and for the project of more than Rs.25,00,000/- the ceiling is Rs.1,50,000/-.
  • Cluster Specific Infrastructure Related Interventions
  • The assistance of maximum Rs.2 crores will be provided for setting up of raw material bank
  • For establishing of Common Facility Centre (CFC), a maximum amount up to Rs.60 lakhs per CFC will be granted.

Mode of payment

Funds will be issued in 2 instalments:

  • 50% of the approved amount will be released as 1st instalment and the balance amount will be issued as the 2nd and final instalment in the shape of recompense after the receipt of a requisite audited report of expenditure, UC in GFR-19A format, performance cum end report and other required documents, etc.
  • In the case of departmental activity, the 100% payment will be withdrawn as advance.

Online Application Procedure of the Scheme

The handicraft artisans who want to avail of the assistance under this scheme has to follow the below procedure:

Step 1: The applicant will have to access the official portal Development Commissioner (Handicrafts) to apply for the AHVY scheme.

Step 1 – Ambedkar Hastshilp Vikas Yojna

Step 2: Click on the Ambedkar Hastshilp Vikas Yojna that is visible on the homepage of the portal.

Step 2 – Ambedkar Hastshilp Vikas Yojna

Step 3: Then the applicant will have to fill out the submission of Proposal under the AHVY form with the details of the prject profile.

Step 3 – Ambedkar Hastshilp Vikas Yojna

Step 4: The applicant has to upload all the documents as mentioned above.

Step 5: After completing, click on the ‘submit’ button to complete the Registration Process.

Step 6: Finally, the applicants can avail financial assistance after the approval from the office of DC- Handicraft.