Mill Gate Price Subsidy Scheme

Mill Gate Price Subsidy Scheme (मिल गेट प्राइस सब्सिडी योजना)

The Mill Gate Price Subsidy Scheme, initiated by the Government of Gujarat, is a significant initiative aimed at assisting handloom weavers, cooperatives, and NGOs. This scheme not only provides financial support through subsidies on yarn purchases but also includes freight reimbursement, ultimately promoting the growth of the handloom sector in the state.

Overview of the Scheme

Established in 2007 and managed by the Commissioner of Cottage and Rural Industries within the Industries & Mines Department of Gujarat, the Mill Gate Price Subsidy Scheme is designed to make quality yarn accessible at reduced prices for handloom weavers. The program aims to enhance product quality and affordability by offering a 15% subsidy on yarn acquired from NHDC-recognized depots, along with freight reimbursement ranging from 1% to 8.5% depending on the yarn type and geographical area. The beneficiaries primarily include handloom cooperatives, NGOs, and development centers, with a focus on supporting economically weaker weavers, particularly those belonging to Scheduled Castes.

Advantages of the Scheme

• Yarn Purchase Subsidy: Provides a 15% subsidy on yarn purchases from NHDC-recognized depots.
• Freight Reimbursement:
  • Non-Silk/Jute Yarn:
    • Plain Area: 1.00%
    • Hills/Remote: 1.75%
    • North-East: 3.00%
  • Silk Yarn:
    • Plain Area: 1.00%
    • Hills/Remote: 1.25%
    • North-East: 1.50%
  • Jute/Jute Blended Yarn:
    • Plain Area: 7.00%
    • Hills/Remote: 8.00%
    • North-East: 8.50%
• Additional Charges: An operating charge of 2.5% by the depot applies.
• Disbursement Process: The 15% subsidy is credited through RTGS or e-payment, while freight reimbursement is handled separately.

Eligibility Requirements

• The applicant must be a registered handloom cooperative society, NGO, or development center.
• Yarn purchases must be made from NHDC-recognized depots, such as the Gujarat State Handloom & Handicrafts Development Corporation.

Application Procedure

To apply for the Mill Gate Price Subsidy Scheme, follow these steps:

1. Purchase Yarn: Begin by acquiring yarn from an NHDC-recognized depot (for example, there are 12 depots in Surendranagar and 1 in Ahmedabad).
2. Visit DIC: Go to the District Industries Centre (DIC) in your district and request a hard copy of the application form from the designated personnel.
3. Complete the Application: Fill out all required sections of the application form and attach self-attested copies of the necessary documents.
4. Submit Your Application: Hand in the completed application form along with the documents to the designated staff at the DIC within the specified deadline, if applicable.
5. Receipt: Ensure you receive a receipt or acknowledgment from the staff member who processes your application.

Official Source

For more detailed information, please visit myScheme.gov.in.