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Business & Entrepreneurship; Transport & Infrastructure

GROUP WORKSHED SCHEME

The objective of the scheme is to facilitate the establishment of worksheds for shuttleless looms in an existing or new cluster, which will provide the required scale of economy for business operations.

Authority

Central

Region

Central Government

Status

Verified 2026

Updated

March 2026

What you get

MAXIMUM ADMISSIBLE AREA | Shuttleless Looms : 400 Sq.ft / Loom | Weaving Preparatory : 40% of Loomage area | Dormitory : 125 Sq.ft / Person | SUBSIDY CHART | S.No.CategoryEligible Subsidy on the unit cost of construction Cap on Subsidy per Sq.ft 1General40%₹ 4002SC75%₹ 7503ST90%₹ 900

Who can apply

The group will consist of at least 4 weavers/entrepreneurs having separate legal entities.; At least 24 nos. of shuttleless looms of width up to 230 cms (or) 16 nos. of shuttleless looms of wider width i.e. 230 cms and above must be installed.; Each beneficiary should have at least 4 looms.; Only TUFS-compatible machineries are to be installed.

Required Paperwork

  • Aadhaar Card
  • PAN Card
  • Income Certificate
  • Residence Proof (Domicile)

Common Questions

What is the main objective of this scheme?

To support the establishment of worksheds for shuttleless looms in clusters to improve working conditions, efficiency, and global competitiveness.

Who can apply for the scheme?

State governments/agencies, registered co-operative societies, companies under the Companies Act, LLPs with a group of powerloom owners (minimum 4), or local powerloom associations.

How much area is allowed per shuttleless loom under the scheme?

400 sq. ft per loom for shuttleless looms.

What is the area allowed for weaving preparatory units?

40% of the total loomage area.

Is dormitory space allowed under the scheme?

Yes, up to 125 sq. ft per person.

What is the subsidy percentage for General category applicants?

40%, with a cap of ₹400 per sq. ft.

What is the maximum subsidy allowed for Scheduled Tribe (ST) applicants?

90% subsidy, up to ₹900 per sq. ft.

How many looms are required to be eligible?

A minimum of 24 shuttleless looms (up to 230 cm width) or 16 wider-width looms (230 cm and above).

Can a single entrepreneur apply under the scheme?

No, a group of at least 4 weavers/entrepreneurs with separate legal entities is required.

What is the application mode for this scheme?

Offline. The advertisement is published in newspapers for application invitation.