Mega Cluster scheme was launched by the Ministry of Textiles. Mega cluster is an approach to scale up the infrastructural and production chain at Handicrafts clusters. It aims the clusters which were remained unorganized and have not kept pace with the modernization and development.


  • Infrastructural improvement, modernization of the tools, machinery, process and product diversification and creating strong brands.
  • Innovative designs as well as technical know-how, furthered by brand building of the native products hold the key to creating a niche market for the products manufactured by the clusters.
  • The proposed programme is expected to support the Up gradation of infrastructural facilities coupled with market linkages and product development & diversification.

Funding Pattern

  • Funds to the tune of 3% (max.) of project cost shall be earmarked for establishing baseline data / DPR against which performance can be compared at the end of the project.
  • Funds would be released in 3 installments
  • 1st installment of 40% as advance on SPV acquiring land.
  • 2nd installment of another 40% on utilization of 2/3 of first installment.
  • Balance as 3rd and final installment as reimbursement.

Eligible Agencies

The Implementing Agency , which will be a Special Purpose Vehicle, shall be a legal entity, preferably a Company with the participation of related stakeholders, particularly the leading manufacturers, suppliers, buyers, and artisan federations/SHGs. The selection of SPV would mainly depend on the project profile, activities required to be intervened and on various other parameters, therefore selection of such suitable SPV after seeking formal approval of PAMC

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