Jute Diversification Scheme 2026: Training Grants, Machinery Subsidy & Guidelines

At a glance

About the scheme

Administered by the National Jute Board under the Ministry of Textiles, the Jute Diversification Scheme aims to expand the manufacturing of diversified jute items across India. It supports reputed entrepreneurs, NGOs, cooperatives, and organisations to establish dedicated Jute Resource-cum-Production Centres. Through structured basic, advanced, and design training programmes, the initiative fosters sustained employment and entrepreneurship, providing financial backing for training batches, agency incentives, biometric infrastructure, and machinery subsidies for trainees.

Benefits

• Financial assistance of ₹12,40,000 for conducting 5 cycles of basic, advanced, and design training for 24 beneficiaries per cycle.
• Agency incentive of ₹2,48,000 (calculated as 20% of activity cost) for operating the centre and maintaining infrastructure.
• Infrastructure grant of ₹12,000 for installing a biometric attendance machine, internet setup, and maintenance.
• Machinery subsidy of ₹9,00,000 per year per centre to procure 72 machines (at 50% subsidy or up to ₹12,500 per machine, whichever is lower) for successful trainees.
• Advance release of 50% of activity costs upon action plan approval, with remaining funds and incentives disbursed after successful completion.
• All incentives and subsidies are distributed strictly via Direct Bank Transfer (DBT).

Who can apply (eligibility)

• Applicant must be an Indian citizen or a registered Indian agency, enterprise, manufacturer, exporter, trader, NGO, cooperative society, federation, or PSU.
• Must have at least 3 years of experience in product identification, bulk manufacturing, skill training, and marketing of jute diversified products.
• Must possess proven experience in training, promoting, and developing Women Self Help Groups in jute products, handlooms, or handicrafts.
• Must maintain an office of at least 250 sq. ft. equipped with a phone or mobile, computer or laptop, and email facilities.
• Must possess at least 500 sq. ft. of dedicated space to set up the Jute Resource-cum-Production Centre.
• Must score at least 50 marks out of 100 on the official evaluation criteria.
• At least 70% of enrolled trainees must be women or members of Women Self Help Groups (exempt if the centre becomes a production unit hiring at least 50% trainees).
• Agency must ensure post-training engagement of at least 50% of trainees in jute diversification activities.

Documents required

• Ownership proof (MoU, Articles of Association, Partnership Deed, Society Registration, or Trade License)
• Aadhaar Card or address proof of the authorised representative
• Income Tax Return (ITR) for the last financial year
• Permanent Account Number (PAN) Card
• Goods and Services Tax (GST) Returns for the last 3 financial years
• Annual Reports and Audited Financial Statements for the last 3 financial years
• Project experience certificates in jute diversification
• Concept or approach note along with undertaking from the agency
• Copy of bank passbook front page and cancelled cheque leaf
• Recommendation letter from DM, DC, DIC, NABARD, DRDA, or BDO (desirable)
• Bank guarantee (50% of activities cost) upon selection
• Aadhaar-linked biometric attendance reports and webcam recordings on a pen drive (for claim disbursal)

How to apply

1. 1Visit the official website of the National Jute Board (www.jute.com) to start your application.
2. 2Complete the online application form with agency details, infrastructure, experience, and the proposed action plan to generate an acknowledgement.
3. 3Print the submitted online acknowledgement and draft a covering letter on your official organisation letterhead.
4. 4Attach all required supporting documents to the printed form and send the hard copy package to the Head Office or relevant Regional Office of the National Jute Board.
5. 5Await evaluation by the Sub-Committee; shortlisted applicants scoring at least 50 marks will be presented to the Monitoring Committee for final approval.

Frequently asked questions