Inviting Proposals for Formation of Artisan Producer Company (APO) for FY 2026-27 under National Handicrafts Development Programme (NHDP)

Consultancy Tender Preparation

Introduction

The Office of the Development Commissioner (Handicrafts), Ministry of Textiles, Government of India, has released a Circular inviting proposals for the formation of Artisan Producer Companies (PCs) under the AHVY Scheme of the National Handicrafts Development Programme (NHDP) for the Financial Year 2026-27. This initiative aims to formalize the handicraft sector, promote sustainable business models, and enhance artisan participation through organized producer companies. The EOI for Skill Development Training and capacity building is targeted towards uncovered craft clusters across India.

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Objective

The primary objective is to promote the formation of Artisan Producer Companies in uncovered handicraft clusters and craft categories, facilitating sector formalization, enhancing market access, and ensuring long-term sustainability through structured entrepreneurial and skill development training.

Key Dates

  • Proposal Submission Start Date: 27 January 2026
  • Proposal Submission End Date: 27 February 2026
  • Scrutiny by Assistant Directors: By 08 March 2026
  • Review by Regional Directors: By 16 March 2026

EMD & Tender Fees

The document does not specify any Earnest Money Deposit (EMD) or tender fees. Bidders must refer to the AHVY scheme guidelines for detailed financial obligations.

Scope of Work

The scope includes:

  • Mobilizing at least 300 artisans with Pehchan ID for PC formation.
  • Providing training and capacity building for artisan groups in uncovered craft categories.
  • Facilitating the legal and operational setup of Artisan Producer Companies.
  • Implementing hard and soft interventions as per AHVY guidelines.

Eligibility of Implementing/Training Partners

  1. Minimum opening balance of ₹20 lakhs in any of the last three financial years.
  2. Minimum 10 years of experience working in handicraft clusters.
  3. Must be empaneled with the Office of the DC(H).
  4. Should not have any pending Utilization Certificates (UCs) with the DC(H) office.
  5. Agencies that have already formed a Producer Company under AHVY are not eligible.
  6. Preference to locally registered agencies from the same or neighboring district of the proposed cluster.

Selection Criteria

Proposals will be selected based on:

  1. Priority to uncovered craft categories (Annexure-I).
  2. Preference to government agencies, PSUs, and reputed institutions.
  3. Priority to states with no existing Producer Companies.
  4. Eligibility as per Annexure-II and adherence to AHVY guidelines.

Empanelment Procedure

Agencies must already be empaneled with the Office of the DC(H). Submission of the DC(H) empanelment registration certificate is mandatory.

Eligible Beneficiaries

Artisans engaged in uncovered craft categories as listed in the state-wise craft list (Annexure-I), possessing a valid Pehchan ID.

Total Target to be Trained

Each Implementing Agency must mobilize at least 300 artisans for the formation of one Producer Company.

Job Roles / Course / Focus Area

Focus areas are the uncovered handicraft categories listed state-wise, including but not limited to:

  • Folk Painting, Terracotta, Metal Crafts, Wood Carving, Embroidery, Cane & Bamboo, Jewelry, Zari Zardozi, Stone Carving, Leather Craft, and many others.

Duration

The training and PC formation process will align with the FY 2026-27 schedule, with phased milestones as per AHVY guidelines.

Funding and Payment Conditions

Funding will be provided as per the AHVY scheme pattern. Detailed financial parameters are available in the scheme guidelines. Payments are linked to the submission of Utilization Certificates and achievement of milestones.

Mode of Submission

Proposals must be submitted online only via the MIS portal:
https://indian.handicrafts.gov.in/admin/en/users/login?redirect=%2Fadmin%2Fen
No offline or direct submissions to headquarters will be accepted.

Address for Submission

Not applicable – online submission only.

Other Terms & Conditions

  1. Incomplete proposals or those without mandatory documents will be rejected.
  2. All clarifications and updates will be published on the official websites only.
  3. The decision of the Office of the DC(H) is final.
  4. The office reserves the right to accept or reject any proposal.

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