Looking for your next high-impact livelihood project? Start with India’s artisan clusters.
If your company is planning its next CSR investment, traditional handicrafts offer an opportunity to connect livelihood generation, women’s economic empowerment, and sustainable enterprise development in one initiative.
But the real question for CSR decision-makers is: How do you turn funding into measurable, accountable impact? Let’s explain the AHVY Scheme 2026: Government Grants for Artisan Clusters, its Funding Rules, Eligibility, and how to Apply.
Quick answer: The Ambedkar Hastshilp Vikas Yojana (AHVY) is a cluster scheme of the Development Commissioner (Handicrafts), Ministry of Textiles. It organises 20 to 1,000 craft artisans into an artisan-owned producer company. The government covers 100% of eligible soft-support costs and 75–90% of approved marketing building costs. All artisans must have a valid Pehchan ID card to receive scheme benefits.
Soft support includes:
- Training: Teaching artisans new skills.
- Design development: Helping artisans create better products.
- Market support: Connecting artisans with buyers.
- Business support: Helping artisans form and manage a producer company.
What Is the Ambedkar Hastshilp Vikas Yojana (AHVY)?
The AHVY scheme brings artisans together to form a company, improve their products, learn new skills, and sell their handicrafts to more customers.
The government launched it in 2001-02. Today it sits inside the National Handicrafts Development Program (NHDP), whose guidelines cover 2022-23 to 2025-26.
| Point | Detail |
| Run by | Office of the Development Commissioner (Handicrafts), Ministry of Textiles |
| Cluster size | 50 artisans (20 for endangered crafts) to 1,000 |
| Cluster area | Within a 20–30 km radius |
| Support period | Up to three years |
| Who gets support | Pehchan-card artisans, through their producer company |
AHVY Scheme 2026: Latest Updates
The newest AHVY scheme data shows steady demand, but also a possible merger of schemes.
- 33.55 lakh artisans held Pehchan registration on 30 November 2025, says the Ministry’s annual report.
- The Ministry approved 67 handicraft producer companies, and 922 interventions worth ₹59.13 crore reached 32,398 artisans.
- 27 January 2026: The office invited proposals for new producer companies for 2026-27, open until 27 February.
- Budget 2026-27: Handloom and handicraft schemes will be merged into a National Handloom and Handicraft Program. We found no new guidelines yet, so check before you plan.
- GST on 36 handicraft items fell from 12% to 5%.
AHVY Funding: How Much Is the Grant for Surveys, Design and Marketing?
The AHVY scheme covers most soft costs as a 100% grant-in-aid, with fixed ceilings, and shares building costs.
| Item | Support (official guidelines) |
| Baseline survey of the cluster | Up to ₹2 lakh per cluster; 50% advance |
| Forming the producer company | Up to ₹1 lakh, 100% reimbursed |
| Working capital | ₹1,000 per artisan member, up to 500 members |
| Design Mentorship Program | Up to ₹15 lakh per program (2.5 months, 15–20 artisans) |
| Entrepreneurship programme | ₹5 lakh per project |
| Project manager and staff | ₹5 lakh per company a year |
| Marketing and Sourcing Hub | 75% central share, ceiling ₹10 crore |
| Emporium; Urban Haat | 80% central share (90% in the North-East, J&K, Ladakh) |
| Common Facility Center | 80% (90% in those regions), ceiling ₹3 crore |
Grants arrive in two parts: 75% first, the rest as reimbursement after audited accounts. Building projects need at least 10% from the agency, and the agency must show ₹1.5 crore yearly turnover for three years unless it is a government body.
Who Is Eligible for the AHVY Scheme?
AHVY eligibility has three layers: agencies, craft clusters, and Pehchan-card artisans.
- Agencies: Government corporations and departments, NGOs impanelled with the Development Commissioner, registered self-help groups, cooperatives and producer companies. For the 2026-27 call, a third-party summary lists a ₹20 lakh opening balance, 10 years in handicraft clusters, empanelment, and no pending utilisation certificates.
- Clusters: Preference goes to aspirational districts, tribal areas, women-led clusters, GI crafts, tourism-linked crafts, and toy clusters. Export-oriented and aspirational clusters begin with a baseline survey.
- Producer company: A Section 8 company with at least 20 members (10 for endangered crafts), 75% Pehchan artisans, 51% shareholding, and half the directors from the artisan community.
How to Apply for the AHVY Scheme: Step-by-Step Process
To apply for the AHVY scheme, an agency responds to a public call online; artisans cannot apply individually.
- Register artisans for Pehchan cards through a Handicrafts Service Center. The office has 67 such centers and six regional offices.
- Watch the Development Commissioner’s website for the advertisement.
- Pick a craft from the uncovered list.
- Mobilise artisans. The 2026-27 call asked for at least 300.
- Get the local Assistant Director’s recommendation.
- Submit online on the office’s MIS portal.
- Form the company. A committee scrutinises proposals, and handholding lasts three years.
Real-Life Example: Khushali Producer Company, Bhopal
The Khushali cluster shows how the AHVY scheme can move artisans from contractors to ownership, as the company reports.
- The craft: Zari-zardozi embroidery and stitching at Karond, Bhopal. More than 15,000 artisans practice it, and 850 are directly linked to the cluster.
- The NGO: Sathiya Welfare Society began work with these artisans in 2014-15.
- The company: Registered on 10 February 2020, with an AHVY registration on record.
- The results: A one-month design workshop ended on 4 February 2022 with prototypes. In 2021, the cluster also won a SFURTI project.
Can CSR Funds Support AHVY Clusters?
CSR funds can support AHVY clusters because Schedule VII covers promoting and developing traditional arts and handicrafts.
A company can fund what the grant doesn’t cover, such as packaging, online sales, working capital beyond ₹5 lakh, or the agency’s building share. Whether CSR money counts as that share is unsettled, so ask the Development Commissioner in writing. NGOs need CSR-1 registration. Start with how to apply for CSR funding in India and CSR rules.
AHVY Scheme Myths vs Facts
Four AHVY scheme claims circulate online that the official guidelines do not support.
| Myth | Fact |
| AHVY is a loan or interest-subvention scheme. | One site describes it that way. Interest subvention is a separate NHDP component. AHVY builds clusters. |
| An individual artisan can apply. | Only agencies and producer companies apply. |
| Everything is a 100% grant. | Buildings need 10–25% from the agency. |
| You can apply any time. | Proposals open in dated windows. |
Want to apply for this scheme?
Select it on Prabhaav, along with any other schemes you are interested in. Our team will check your eligibility and help you with the documents and filing.
Apply via PrabhaavFrequently Asked Questions
What is the Ambedkar Hastshilp Vikas Yojana (AHVY)?
The Ambedkar Hastshilp Vikas Yojana (AHVY) is a government initiative under the Ministry of Textiles that supports handicraft artisan clusters through skill development, design improvement, producer companies, and marketing infrastructure.
Which ministry implements the AHVY scheme?
The Office of the Development Commissioner (Handicrafts), Ministry of Textiles, Government of India, implements the scheme.
How much funding is available under the AHVY scheme?
Funding depends on the approved activity. Eligible soft-support activities may receive grants of up to 100% within prescribed limits, while infrastructure projects generally receive 75–90% central assistance, subject to the applicable guidelines and conditions.
Who is eligible to apply for the AHVY scheme?
Eligible applicants may include government agencies, NGOs impanelled with the Development Commissioner (Handicrafts), cooperatives, self-help groups, and artisan producer companies, subject to the specific application call and eligibility requirements.
Can an NGO apply for AHVY funding to support artisans?
Yes. An NGO may apply if it meets the empanelment, experience, financial, and other eligibility requirements specified in the relevant call. NGOs should verify the latest application notice before preparing a proposal.
Is a Pehchan card mandatory for artisans under AHVY?
Yes. Artisans receiving benefits under the scheme must meet the applicable Pehchan registration requirements. The implementing agency should verify artisan registration before submitting its proposal.
Can a private company participate in an AHVY-supported project through CSR funding?
Companies can explore CSR initiatives that support traditional handicrafts, artisan livelihoods, skill development, and market access, subject to applicable CSR rules. Confirm the eligibility of specific expenditure and whether CSR funds can meet an agency's required contribution with the relevant authorities.
Is the AHVY scheme accepting applications in 2026?
A call for proposals for forming artisan producer companies for FY 2026–27 was issued in January 2026, with a stated deadline of 27 February 2026. That application window has closed. Applicants should check the Development Commissioner (Handicrafts) website for subsequent calls and revised guidelines.
Can an artisan apply individually for AHVY funding?
Generally, no. The scheme supports artisan clusters through eligible implementing agencies and producer-company structures, not individual applications for cluster-development assistance.
Author
Aabha Garg
A Content Strategist at NGOExperts, who focuses on NGO registration, 12A and 80G registration, FCRA compliance, income tax filing for non-profits, and CSR funding guidelines in India. I research and write our compliance guides in collaboration with our in-house Chartered Accountants and Company Secretaries, so every article reflects current tax and regulatory requirements for the NGO and non-profit sector.
Written by Aabha Garg. Last updated on November 10, 2026
