Lok Sabha Question No. 5641 (UNSTARRED), answered on 2019-07-26
Subject: Small Textile Manufacturing Units
Ministry: TEXTILES
Asked by: Rebati Tripura, Santosh Kumar, Vijay Kumar Dubey

## 'SMALL TEXTILE MANUFACTURING UNITS'

## 5641.   SHRI MANOJ TIWARI:

## Will the Minister of TEXTILES वस्त्र मंरी

be pleased to state:

(a)  whether the Government has any proposal to provide subsidy for small textile manufacturing units especially in Bihar, North East and Kushinagar and nearby areas;

- (b) if so, the details thereof;
- (c)  if not, the reasons therefor; and
- (d)  the details of textile units approved by the Government so far?

## उत्तर

## ANSWER

## वस्त्र मंरी ( श्रीमती स्मृ तत ज़ू बिन इरानी )

## MINISTER OF TEXTILES (SMT. SMRITI ZUBIN IRANI)

(a) to (d): The Government provides conducive policy environment, facilitates enabling conditions for the textile industry and private entrepreneurs to set up units through its various policy initiatives and schemes such as Amended Technology Upgradation Fund Scheme (A-TUFS),Scheme for Production and Employment Linked Support for Garmenting Units (SPELSGU), Schemes for the development of the Powerloom Sector (Power-Tex), Schemes for Technical Textiles, Scheme for Integrated  Textile  Parks  (SITP),  Scheme  for  Additional  Grant  for  Apparel  Manufacturing  Units under SITP (SAGAM),  SAMARTH- The Scheme for Capacity Building in Textile Sector (SCBTS), Jute  (ICARE-  Improved  Cultivation  and  Advanced  Retting  Exercise),  Integrated  Processing Development  Scheme  (IPDS),  National  Handloom  Development  Progarmme,  Comprehensive Handloom Cluster Development Scheme (CHCDS), Silk Samagra,  Integrated Wool Development Programme (IWDP), North East  Region  Textiles  Promotion  Scheme  (NERTPS),  Rebate  of  State Levies (ROSL) etc. These schemes are aimed at promotion/upgradation of textile industries/units all over the country including Bihar, North East and Kushinagar and nearby areas.

Further, there is no State wise allocation of funds/subsidy under the above schemes, the Government sanction/release funds/subsidy to the eligible agencies/organizations on receipt of viable proposal recommended by the concerned State Government.

The  government  has  taken  various  initiatives  in  the  state  of  Bihar,  North  East  and Kushinagar and nearby areas under various schemes:

## A) Handloom Sector:

-  12 Block level Clusters have been sanctioned covering 5,114 handloom weavers and a sum of  Rs.  4.36  crore  has  been  released  under  NHDP  (National  Handloom  Development Programme) in the state of Bihar.
-  The Comprehensive Handloom Cluster Development Scheme (CHCDS) is being implemented  for  development  of  Mega  Handloom  Clusters  covering  atleast  15000  to 25,000  handlooms  and  financial  assistance  as  GoI  share  is  provided  from  Rs.  40.00  to Rs.70.00 crore in a period of 5  years.  Presently, one Mega Handloom Cluster has been sanctioned in the State of Bihar at Bhagalpur.  The Cluster covers 5,084 handlooms.  A sum of Rs. 4.01 crore has been released so far for the Mega Cluster.
-  03 Marketing events have been sanctioned for promotion of sale of handloom products and financial  assistance  of  Rs.  0.68  crore  has  been  provided  to  the  implementing  agencies benefiting 7000 beneficiaries in the state of Bihar.
-  To prevent imitation of handloom products, 'Bhagalpur Silk' has been registered under GI (Geographical Indications) Act in the state of Bihar.
-  To provide loan to the handloom weavers on concessional rate of interest for expanding their business, 435 MUDRA loans have been sanctioned involving loan amount of Rs. 2.53 crore in the state of Bihar.
-  To  provide  benefit  of  insurance,  1797  handloom  weavers  have  been  covered  under Mahatma Gandhi Bunkar Bima Yojana (MGBBY) in the state of Bihar.
-  To  provide  health  insurance,  381  handloom  weavers  have  been  covered  under  Health Insurance Scheme in the state of Bihar.
-  To provide yarn to the handloom weavers at mill gate price/subsidized rates, 01 yarn depot has been established in the State of Bihar. 1.45 lakh kg of yarn worth Rs. 7.08 crore has been supplied to the weavers of Bihar at Mill Gate Price and 0.64 lakh kg of yarn worth Rs. 6.35 crore has been supplied under 10% Subsidy component of Yarn Supply Scheme.
-  To facilitate  the  handloom  weavers  for  obtaining  MUDRA  loan,  yarn  passbooks,  looms and accessories, enrolment for NIOS and IGNOU courses etc., 12 Hastkala Sahyog Shivirs were organized in handloom clusters/pockets during 7 th to  17 th October 2017 and 19 th to 24 th Feb 2018 in the state of Bihar.

## B) Amended Technology Upgradation Funds Scheme (A-TUFS)

Every  eligible  individual  entity  (not  the  unit)  is  entitled  for  reimbursement  of  Capital Investment Subsidy (CIS) under this scheme, as per the following rates:

|   S. No. | Segment                                                                                                                                                                        | Rate of Capital Investment Subsidy (CIS)      |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------|
|        1 | Garmenting, Technical Textiles                                                                                                                                                 | 15% subject to an upper limit of Rs 30 crores |
|        2 | Weaving for brand new Shuttle-less Looms (including weaving preparatory and knitting), Processing, Jute, Silk and Handloom.                                                    | 10% subject to an upper limit of Rs 20 crores |
|        3 | Composite unit /Multiple Segments - If the eligible capital investment in respect of Garmenting and Technical Textiles category is more than 50% of the eligible project cost. | 15% subject to an upper limit of Rs 30 crores |
|        4 | Composite unit/ Multiple Segments - If the eligible capital investment in respect of Garmenting and Technical Textiles category is less than 50% of the eligible project cost. | 10% subject to an upper limit of Rs 20 crores |

The details  of  subsidy  provided  to  units  situated  in  Bihar,  North  East  and  Uttar  Pradesh during last three years are as follows:

(In Rs. crore)

|   S. No | Name of the State   |   Subsidy released |
|---------|---------------------|--------------------|
|       1 | Assam               |               1.84 |
|       2 | Bihar               |               2.82 |
|       3 | Uttar Pradesh       |              57.98 |

- C) Scheme for Integrated Park (SITP) provides support for creation of world-class infrastructure facilities for setting up of textile units, with a Government of India grant upto 40% of the project cost with ceiling limit of Rs. 40.00 crores for each park. The scheme is a demand driven scheme. The  following  are  the  Textile  Parks  sanctioned  in  North-East  and  nearby  area  of  Kushinagar (Uttar Pradesh).

|   S. No. | Name of Park                             | Location    | State         |   Approved textile units | Status     |
|----------|------------------------------------------|-------------|---------------|--------------------------|------------|
|        1 | PragJyoti Textile Park                   | Darrang     | Assam         |                       42 | Sanctioned |
|        2 | Ecotex Textile and apparel park Pvt. ltd | Mirganj     | Uttar Pradesh |                       36 | Sanctioned |
|        3 | Farrukhabad Textile Park Pvt. Ltd.       | Farrukhabad | Uttar Pradesh |                       50 | Sanctioned |

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