Lok Sabha Question No. 1708 (UNSTARRED), answered on 2017-12-28
Subject: Development of Powerloom Sector
Ministry: TEXTILES
Asked by: ELUMALAI VELLAIGOUNDER

## LOK SABHA UNSTARRED QUESTION NO.1708 TO BE ANSWERED ON 28.12.2017

## DEVELOPMENT OF POWERLOOM SECTOR

## 1708.  SHRI  V. ELUMALAI:

## Will the Minister of TEXTILES वस्त्र मंरी

be pleased to state:

- (a) whether  the  Government  has  launched  a  three  year  comprehensive  scheme  for  the development of powerloom sector and if so, the details thereof;
- (b) whether  the  said  scheme  aims  to  boost  common  infrastructure  and  modernization  of  the powerloom sector and if so, the details thereof;
- (c) whether the said scheme with an outlay of Rs. 487 crore for three years from 2017-2018, has nine major components, including two new ones and if so, the details thereof;
- (d) whether  it  is  also  true  that  some  of  these  existing  schemes  such  as  yarn  bank  and  in  situ upgradation of plain powerlooms already have huge response and these have been modified to benefit more weavers; and
- (e) if so, the details thereof?

## उत्तर

## ANSWER

## वस्त्र राज्य मंरी ( श्री अजय टम्टा )

## MINISTER OF STATE IN THE MINISTRY OF TEXTILES (SHRI AJAY TAMTA)

(a) & (b): Yes,  Madam.  The  Government  has  launched  PowerTex  India,  a  comprehensive scheme  for  Powerloom  Sector  development,  w.e.f.  01.04.2017  (from  1.04.2017  to  31.03.2020)  to boost common infrastructure and moderinization of the Powerloom Sector. The details of the Scheme and  the  incentives  &  assistance  provided  to  Powerloom  sector  under  this  scheme  are  enclosed  as Annexure .

(c): Yes, Madam. PowerTex India Scheme was launched with an outlay of Rs. 487 crore for three years from 2017-2018 to 2019-20 has nine major components, including two new ones (Solar Energy Scheme and Pradhan Mantri Credit Scheme). The details of each component are given at Sl. No. 5 & 6 of the Annexure.

(d) & (e): Yes, Madam. Subsidy under the component i.e. In-situ upgradation under PowerTex India has  been  modified  and  enhanced  for  each  category  i.e.  (General,  OBC,  SC  &  ST).  Government provides interest free corpus fund maximum upto Rs.200 lakh per yarn bank instead of Rs. 100 lakh to SPV/Consortium, earlier under Yarn Bank Scheme, a component under PowerTex Scheme. The details of In-situ Upgradation Scheme and Yarn Bank Scheme are given at Sl. No 1 & 3 respectively of the Annexure.

Details  of  the  PowerTex  India  Scheme  and  incentives  &  assistance  being  offered  under  the scheme to the Powerloom sector:

|   S.No. | Name of the component                  | Incentives and Assistance                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Incentives and Assistance                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Incentives and Assistance                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Incentives and Assistance                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|---------|----------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       1 | In-situ Upgradation of Plain Powerloom | Objectives:  To provide financial assistance to economically weaker low- end powerloom units, for upgrading existing plain looms to semi-automatic/shuttleless looms by way of fixing certain additional attachments/kits.  Powerloom units having up to 8 looms are eligible. Eligible subsidy is as under:-                                                                                                                                                                  | Objectives:  To provide financial assistance to economically weaker low- end powerloom units, for upgrading existing plain looms to semi-automatic/shuttleless looms by way of fixing certain additional attachments/kits.  Powerloom units having up to 8 looms are eligible. Eligible subsidy is as under:-                                                                                                                                                                  | Objectives:  To provide financial assistance to economically weaker low- end powerloom units, for upgrading existing plain looms to semi-automatic/shuttleless looms by way of fixing certain additional attachments/kits.  Powerloom units having up to 8 looms are eligible. Eligible subsidy is as under:-                                                                                                                                                                  | Objectives:  To provide financial assistance to economically weaker low- end powerloom units, for upgrading existing plain looms to semi-automatic/shuttleless looms by way of fixing certain additional attachments/kits.  Powerloom units having up to 8 looms are eligible. Eligible subsidy is as under:-                                                                                                                                                                  |
|       1 | In-situ Upgradation of Plain Powerloom | Type of Technology                                                                                                                                                                                                                                                                                                                                                                                                                                                               | GOI Subsidy per loom (in Rs.)                                                                                                                                                                                                                                                                                                                                                                                                                                                    | GOI Subsidy per loom (in Rs.)                                                                                                                                                                                                                                                                                                                                                                                                                                                    | GOI Subsidy per loom (in Rs.)                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|       1 | In-situ Upgradation of Plain Powerloom | Type of Technology                                                                                                                                                                                                                                                                                                                                                                                                                                                               | General (50%)                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | SC (75%)                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | ST (90%)                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|       1 | In-situ Upgradation of Plain Powerloom | Plain                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | loom to semiautomatic shuttle loom 20,000                                                                                                                                                                                                                                                                                                                                                                                                                                        | 30,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 36,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|       1 | In-situ Upgradation of Plain Powerloom | Semi shuttle Rapier                                                                                                                                                                                                                                                                                                                                                                                                                                                              | automatic loom to shuttleless loom 25,000                                                                                                                                                                                                                                                                                                                                                                                                                                        | 37,500                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 45,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|       1 | In-situ Upgradation of Plain Powerloom | Plain shuttleless                                                                                                                                                                                                                                                                                                                                                                                                                                                                | loom to Rapier loom 45,000                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 67,500                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 81,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|       2 | Group Workshed Scheme                  | Objectives:  To facilitate the establishment of worksheds for shuttleless looms in an existing or new cluster, which will provide required scale of economy for business operations.  At least 24 shuttleless looms of width upto 230 cms (or)  16 nos. of shuttleless looms of wider width i.e. 230 cms and above must be installed.                                                                                                                                         | Objectives:  To facilitate the establishment of worksheds for shuttleless looms in an existing or new cluster, which will provide required scale of economy for business operations.  At least 24 shuttleless looms of width upto 230 cms (or)  16 nos. of shuttleless looms of wider width i.e. 230 cms and above must be installed.                                                                                                                                         | Objectives:  To facilitate the establishment of worksheds for shuttleless looms in an existing or new cluster, which will provide required scale of economy for business operations.  At least 24 shuttleless looms of width upto 230 cms (or)  16 nos. of shuttleless looms of wider width i.e. 230 cms and above must be installed.                                                                                                                                         | Objectives:  To facilitate the establishment of worksheds for shuttleless looms in an existing or new cluster, which will provide required scale of economy for business operations.  At least 24 shuttleless looms of width upto 230 cms (or)  16 nos. of shuttleless looms of wider width i.e. 230 cms and above must be installed.                                                                                                                                         |
|       3 | Yarn Bank Scheme                       | ST (90%) : Rs.900 per Sq.ft Objectives:  To provide interest free corpus fund to Special Purpose Vehicle (SPV) / Consortium to enable them to purchase yarn at wholesale rate and give the yarn at reasonable price to the small weavers.  To avoid middleman/local supplier's brokerage charge on sales of yarn.  Minimum 11 members required to form SPV  SPV has to provide matching amount and also, a Bank Guarantee equal to an amount of 25% of Govt. of India share. | ST (90%) : Rs.900 per Sq.ft Objectives:  To provide interest free corpus fund to Special Purpose Vehicle (SPV) / Consortium to enable them to purchase yarn at wholesale rate and give the yarn at reasonable price to the small weavers.  To avoid middleman/local supplier's brokerage charge on sales of yarn.  Minimum 11 members required to form SPV  SPV has to provide matching amount and also, a Bank Guarantee equal to an amount of 25% of Govt. of India share. | ST (90%) : Rs.900 per Sq.ft Objectives:  To provide interest free corpus fund to Special Purpose Vehicle (SPV) / Consortium to enable them to purchase yarn at wholesale rate and give the yarn at reasonable price to the small weavers.  To avoid middleman/local supplier's brokerage charge on sales of yarn.  Minimum 11 members required to form SPV  SPV has to provide matching amount and also, a Bank Guarantee equal to an amount of 25% of Govt. of India share. | ST (90%) : Rs.900 per Sq.ft Objectives:  To provide interest free corpus fund to Special Purpose Vehicle (SPV) / Consortium to enable them to purchase yarn at wholesale rate and give the yarn at reasonable price to the small weavers.  To avoid middleman/local supplier's brokerage charge on sales of yarn.  Minimum 11 members required to form SPV  SPV has to provide matching amount and also, a Bank Guarantee equal to an amount of 25% of Govt. of India share. |

|   4. | Common Facility Center (CFC)                                       | Objectives: To provide financial assistance for setting-up of Common Facility Centres such as under:  Pre-weaving, post-weaving, design studio, testing facilities, training centre, information cum trade centre and common raw material / yarn / sales depot, water treatment plant for industrial use, dormitory &workers' residential space etc.  Minimum 11 members required to form SPV Govt. Subsidy Max. GOI subsidy Rs.2 cr. Objectives:                               | Objectives: To provide financial assistance for setting-up of Common Facility Centres such as under:  Pre-weaving, post-weaving, design studio, testing facilities, training centre, information cum trade centre and common raw material / yarn / sales depot, water treatment plant for industrial use, dormitory &workers' residential space etc.  Minimum 11 members required to form SPV Govt. Subsidy Max. GOI subsidy Rs.2 cr. Objectives:                               | Objectives: To provide financial assistance for setting-up of Common Facility Centres such as under:  Pre-weaving, post-weaving, design studio, testing facilities, training centre, information cum trade centre and common raw material / yarn / sales depot, water treatment plant for industrial use, dormitory &workers' residential space etc.  Minimum 11 members required to form SPV Govt. Subsidy Max. GOI subsidy Rs.2 cr. Objectives:                               | Objectives: To provide financial assistance for setting-up of Common Facility Centres such as under:  Pre-weaving, post-weaving, design studio, testing facilities, training centre, information cum trade centre and common raw material / yarn / sales depot, water treatment plant for industrial use, dormitory &workers' residential space etc.  Minimum 11 members required to form SPV Govt. Subsidy Max. GOI subsidy Rs.2 cr. Objectives:                               |
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|    5 | Solar Energy Scheme (New Component)                                | To provide financial assistance/capital subsidy for installation of On Grid Solar Power Plant (without Battery back-up) and Off Grid Solar Power Plant (with Battery back-up) by small Powerloom units to attain sustainable development goal of Government and to give thrust to renewable energy.  Powerloom units having upto 8 looms are eligible.  On Grid Solar Power Plant (without Battery backup) and Off Grid Solar Power Plant (with Battery back-up). Govt. Subsidy | To provide financial assistance/capital subsidy for installation of On Grid Solar Power Plant (without Battery back-up) and Off Grid Solar Power Plant (with Battery back-up) by small Powerloom units to attain sustainable development goal of Government and to give thrust to renewable energy.  Powerloom units having upto 8 looms are eligible.  On Grid Solar Power Plant (without Battery backup) and Off Grid Solar Power Plant (with Battery back-up). Govt. Subsidy | To provide financial assistance/capital subsidy for installation of On Grid Solar Power Plant (without Battery back-up) and Off Grid Solar Power Plant (with Battery back-up) by small Powerloom units to attain sustainable development goal of Government and to give thrust to renewable energy.  Powerloom units having upto 8 looms are eligible.  On Grid Solar Power Plant (without Battery backup) and Off Grid Solar Power Plant (with Battery back-up). Govt. Subsidy | To provide financial assistance/capital subsidy for installation of On Grid Solar Power Plant (without Battery back-up) and Off Grid Solar Power Plant (with Battery back-up) by small Powerloom units to attain sustainable development goal of Government and to give thrust to renewable energy.  Powerloom units having upto 8 looms are eligible.  On Grid Solar Power Plant (without Battery backup) and Off Grid Solar Power Plant (with Battery back-up). Govt. Subsidy |
|    5 | Solar Energy Scheme (New Component)                                | Looms (Solar capacity)                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Looms (Solar capacity)                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Looms (Solar capacity)                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Looms (Solar capacity)                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|    5 | Solar Energy Scheme (New Component)                                | No. of                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | General (50%)                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | SC (75%)                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | ST (90%)                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|    5 | Solar Energy Scheme (New Component)                                | A) On Grid Solar Power Plant                                                                                                                                                                                                                                                                                                                                                                                                                                                      | A) On Grid Solar Power Plant                                                                                                                                                                                                                                                                                                                                                                                                                                                      | A) On Grid Solar Power Plant                                                                                                                                                                                                                                                                                                                                                                                                                                                      | A) On Grid Solar Power Plant                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|    5 | Solar Energy Scheme (New Component)                                | 4 Looms (4                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Rs.2,25,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Rs.3,37,500                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Rs.4,05,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|    5 | Solar Energy Scheme (New Component)                                | KW) 6 Looms (6                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Rs.3,00,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Rs.4,50,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Rs.5,40,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|    5 | Solar Energy Scheme (New Component)                                | KW) 8 Looms (8 KW)                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Rs.3,75,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Rs.5,62,500                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Rs.6,75,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|    5 | Solar Energy Scheme (New Component)                                | B) Off Grid Solar Power Plant                                                                                                                                                                                                                                                                                                                                                                                                                                                     | B) Off Grid Solar Power Plant                                                                                                                                                                                                                                                                                                                                                                                                                                                     | B) Off Grid Solar Power Plant                                                                                                                                                                                                                                                                                                                                                                                                                                                     | B) Off Grid Solar Power Plant                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|    5 | Solar Energy Scheme (New Component)                                | 4 Looms (4 KW)                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Rs.2,75,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Rs.4,12,500                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Rs.4,95,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|    5 | Solar Energy Scheme (New Component)                                | 6 Looms (6 KW)                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Rs.3,75,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Rs.5,62,500                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Rs.6,75,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|    5 | Solar Energy Scheme (New Component)                                | 8 Looms (8 KW)                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Rs.4,75,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Rs.7,12,500                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Rs.8,55,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|    6 | Pradhan Mantri Credit Scheme for Powerloom Weavers (New Component) | Objectives: To provide financial assistance to the decentralised Powerloom units / weavers for their investment in machineries and working capital. (i)Under PowerTex MUDRA  Existing individual powerloom units (or) New individual / group enterprises involved in weaving activity are eligible for a loan of maximum upto Rs.10 lakhs.                                                                                                                                       | Objectives: To provide financial assistance to the decentralised Powerloom units / weavers for their investment in machineries and working capital. (i)Under PowerTex MUDRA  Existing individual powerloom units (or) New individual / group enterprises involved in weaving activity are eligible for a loan of maximum upto Rs.10 lakhs.                                                                                                                                       | Objectives: To provide financial assistance to the decentralised Powerloom units / weavers for their investment in machineries and working capital. (i)Under PowerTex MUDRA  Existing individual powerloom units (or) New individual / group enterprises involved in weaving activity are eligible for a loan of maximum upto Rs.10 lakhs.                                                                                                                                       | Objectives: To provide financial assistance to the decentralised Powerloom units / weavers for their investment in machineries and working capital. (i)Under PowerTex MUDRA  Existing individual powerloom units (or) New individual / group enterprises involved in weaving activity are eligible for a loan of maximum upto Rs.10 lakhs.                                                                                                                                       |

|    |                                                                                                    | Rs.10 lakhs and upto Rs.1 crore.  In case of non-individual units at least 51 % of the share holding and controlling stake should be held by either an SC / ST (or) Woman entrepreneur. Financial Assistance: 25% Margin Money (Max. Rs.25 lakh) on the machinery cost, the borrower is required to bring in 10% of the Project Cost as his/her own contribution.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
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|  7 | Tex-Venture Capital Fund                                                                           | Objective SIDBI Venture Capital Fund Ltd.,(SVCL) invests on behalf of Ministry of Textiles in the form of equity in MSMEs to kick start on enterprises / expansion. Investment will typically be in innovative private Powerloom MSME companies.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|  8 | Guidelines for Facilitation, IT, Awareness, Market Development and Publicity for Powerloom Schemes | Awareness, Market Development and Exposure visit Programmes: ( i) Seminars/ Workshops : To create awareness about schemes, disseminate the information about technology, products for the benefits of Powerloom weavers/workers. (ii) Buyer Seller Meets : The market development activities like Exhibition/Fair and Buyer-Sellers Meet under the scheme is serving the needs of the Powerloom weavers for marketing their products in national and international level. (iii) Exposure visit of Weavers: The exposure visits of Powerloom weavers/ entrepreneurs are organized as weavers/entrepreneurs from low level of technology are required to be exposed to the developed area of technology/manufacturing in order to motivate them to adopt technology and diversify the products. (iv) Setting up of On-line portal for the On-line application to the Powerloom units for availing the schemes under PowerTex India.  Facilitation services to Powerloom weavers like Help line, Registration services, SMSAlert, Bank services etc..  Publicity of Powerloom schemes in Electronic and Print |
|  9 | Grant-in-Aid for 32 Non-TxCs Powerloom Service Centres (PSCs)& Modernization of all PSCs           |  Textile Research Associations (TRAs)/State Govt. agencies are running 32 no. of PSCs located across the country and offering various services like training, sample testing, design development, consultancy, conducting seminar/ workshop, Buyer Seller Meet etc. to the Powerloom sector.  Grant-in-Aid (GIA) provided to the PSCs of TRAs/state Govt. agencies is mainly for the recurring expenses for running the PSCs for providing the services to Powerloom sector.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|  9 | Grant-in-Aid for 32 Non-TxCs Powerloom Service Centres (PSCs)& Modernization of all PSCs           | Govt. assistance is provided for modernization and upgradation of the Powerloom Service Centres with the facilities which are required in the cluster. This would include improving testing facilities, installing modern looms, Preparatory machines, Testing instruments, Sewing machines for Garment and Apparel, Embroidery Machines, Design Development facilities etc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |