Lok Sabha Question No. 398 (STARRED), answered on 2018-03-22
Subject: Powerloom Industry
Ministry: TEXTILES
Asked by: JYOTI DHURVE

## LOK SABHA STATRRED QUESTION *398 TO BE ANSWERED ON 22.03.2018

## POWERLOOM INDUSTRY

## *398.    SHRIMATI JYOTI DHURVE:

Will the Minister of TEXTILES वस्त्र मंरी be pleased to state:

- (a) whether the powerloom industry is on the verge of closure and if so, the details thereof;
- (b) the  number  of  powerloom  industrial  units  closed  during  the  last  three years; and
- (c) the details of steps taken to address the said situation?

## उत्तर

ANSWER

## वस्त्र मंरी ( )

MINISTER OF TEXTILES (SMT. SMRITI ZUBIN IRANI)

- (a) to (c): A statement is laid on the Table of the House.

STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (c) OF THE LOK SABHA  STARRED  QUESTION  No.*398  TO  BE  ANSWERED  ON  22.03.2018 REGARDING  POWERLOOM  INDUSTRY  ASKED  BY    SHRIMATI  JYOTI DHURVE.

- (a): No,  Madam. The  production  of  cloth  by  the  powerloom  industry  during  the  last two years has been as follows:-

(in million square meters)

| Year      |   Cloth production powerloom | Share of Powerloom Industry in cloth production   |
|-----------|------------------------------|---------------------------------------------------|
| 2016-17   |                        35672 | 55.39%                                            |
| 2017-18 * |                        32825 | 58.84%                                            |

*

upto January, 2018

- (b): As per the All India survey of Powerloom Industry, done during 2013, there are approximately 3.86 lakh Powerloom Units with 24.86 Lakh Powerlooms. No structured survey has been carried out thereafter to assess the number of powerloom units set up or closed, during the last three years.
- (c): To  support  the  development  and  growth  of  Powerloom  sector,  Government  of India had launched 'PowerTex India' on 01.04.2017 which is a comprehensive scheme. The  main  components  of  PowerTex  India  and  the  benefits  extended  under  them  to powerloom units (upto 5.3.2018) are given below:-
1.   In-situ Upgradation of Plain Powerlooms: Government provides subsidy ranging from 50% to 90% to upgrade plain powerlooms to improve quality and output of the looms. Since  inception,  2,06,241  looms  have  been  upgraded  and  subsidy  amounting  to Rs.203.12 crores has been released.
2.   Group  Workshed  Scheme  (GWS):  Subsidy  ranging  from  40%  to  90%  is  given  on construction cost of Group Workshed. Since 2014-15, 262 projects have been approved and Government subsidy amounting to Rs.73.00 crores has been released.
3.   Yarn  Bank  Scheme:  Interest  free  corpus  fund  upto  Rs.2  crores  is  given  to  the SPVs/Societies  formed  by  powerloom  weavers  to  purchase  raw  yarn  at  reasonable price.  Since  2014-15,  63  Yarn  Bank  projects  have  been  approved  and  an  amount  of Rs.20.773 crores has been released.
4.   Common Facility Centres (CFC): Subsidy upto Rs.2 crores is given to SPVs formed by powerloom weavers for construction of building and installation of machineries which is meant for common use by the powerloom weavers. Since 2014-15, 20 projects have been approved and Rs.3.94 crores has been released, so far.
5.   Pradhan Mantri Credit Scheme for Powerloom Weavers: A margin money subsidy of upto  Rs.1  lakh  and  interest  subvention  of  6%  is  provided  on  the  term  loans  availed under Pradhan Mantri Mudra Yojana (PMMY) for 5 years. Similarly, Margin money subsidy  upto  Rs.25  lakhs  is  given  on  the  term  loans  availed  under  Stand-up  India scheme by SC/ST/Women powerloom entrepreneurs.
6.   Solar Energy Scheme for Powerlooms: Subsidy ranging from 50% to 90% is given for installation of Solar Energy system by powerloom weavers.
7.   Financial support is also given for modernization/ upgradation of Powerloom Service Centres  and  equity  participation  is  also  done  under  Tex  Venture  Capital  Fund.  In addition,  for  providing  handholding  support  and  increasing  awareness,  a  toll  free helpline number and a user friendly online portal are operational.

Apart from the above, duty on customs leviable has been increased from 10% to 20%  against  majority  of    Man-Made  Fibre  (MMF)  fabric  lines  and  silk  to  promote domestic fabric manufacturing industry and protect it against cheap imports.

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