Lok Sabha Question No. 3326 (UNSTARRED), answered on 2020-03-13
Subject: Budget Allocation for Handloom Sector
Ministry: TEXTILES
Asked by: Andimuthu Raja, Pinaki Misra, Raghu Ramakrishna Raju Kanumuru

## LOK SABHA UNSTARRED QUESTION NO. 3326 TO BE ANSWERED ON 13.03.2020

## BUDGET ALLOCATION FOR HANDLOOM SECTOR

## 3326.   SHRI A. RAJA:

SHRI PINAKI MISRA:

SHRI KANUMURU RAGHU RAMA KRISHANA RAJU:

## Will the Minister of TEXTILES वस्त्र मंत्री

be pleased to state :

(a)  whether the Government has implemented the Revival, Reform and Restructuring Package for Handloom Sector in the country, State-wise including Andhra Pradesh;

(b) if so, the details thereof and the number of districts covered under this scheme;

(c) the total allocation and expenditure made for the Handloom and Handicraft sector during the last six years including allocation and expenditures under the Budget heads of Scheduled Caste Sub-Plan/Tribal Sub Plan;

(d) the details of financial/social status of SC/ST and OBC's in the handloom/handicraft sector during the last six years;

(e) whether the Government acknowledges the decline in employment in the handloom sector, if so, the reasons for this decline;

(f) the reasons for the decline in budget allocation to the Ministry of Textiles in FY 2020-21 in the light of decreasing employment in the sector; and

(g) the steps being taken by the Government in this regard?

## उत्तर

## ANSWER

## वस्त्र मंत्री ( श्रीमती स्मृतत ज़ूबिन इरानी )

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

(a) & (b): The  Govt.  of  India  had  approved  'Revival,  Reform  and  Restructuring  (RRR) Package for Handloom Sector' in November, 2011.  The package inter-alia included (i) one time waiver of overdue loans and interest (100% principal and 25% of interest) of eligible handloom cooperative  societies  and  individual  weavers  as  on  31 st March,  2010,  (ii)  recapitalization  of viable  and  potential  viable  handloom  cooperative  societies;  (iii)  provision  of  fresh  subsidized credit  to  handloom cooperative societies and weavers covered by waiver by providing interest subsidy  of  3%  for  a  period  of  3  years  with  credit  guarantee  and  (iv)  carrying  out  legal  and institutional reforms for cooperative societies.  The coverage of eligible beneficiaries under the package,  has  been  continued  upto  28.02.2014.    Under  the  package,  39  Apex  Societies,  9642 Primary  Weavers  Cooperative  Societies,  54226  individual  weavers  &  6310  Self  Help  Groups were  found  eligible  as  per  the  eligibility  norms  of  the  scheme  across  the  country  including Andhra Pradesh.  State-wise details is at Annexure-I.

An  amount  of  Rs.741.03  crore  has  been  released  to  NABARD,  the  Implementing  Agency towards  loan  waiver  and  recapitalization  for further releases to beneficiaries concerned.

Subsequently, an amount of Rs.141.41 crore has been released to Government of Kerala as Govt. of  India  share,  towards  loan  waiver  and  recapitalization  of  eligible  cooperatives  and  Rs.12.46 crore  to  7  States  namely  Andhra  Pradesh,  Karnataka,  Tamilnadu,  West  Bengal,  Kerala, Uttarakhand  and  Uttar  Pradesh  for  computerization  of  eligible  Primary  Weavers  Cooperative Societies.

(c) & (d): The total allocation/expenditure and financial status of SC/ST in the Handloom/Handicraft sector during the last six years are as below:

(Rs. in crore)

| Handlooms      | Handlooms         | Handlooms   | Handlooms               | Handlooms               | Handlooms                | Handlooms                |
|----------------|-------------------|-------------|-------------------------|-------------------------|--------------------------|--------------------------|
| Financial Year | Budget Allocation | Expenditure | Scheduled Cast Sub Plan | Scheduled Cast Sub Plan | Scheduled Tribe Sub Plan | Scheduled Tribe Sub Plan |
| Financial Year | Budget Allocation | Expenditure | Allocation              | Expenditure             | Allocation               | Expenditure              |
| 2013-14        | 638.00            | 579.25      | 18.10                   | 13.88                   | 3.50                     | 3.11                     |
| 2014-15        | 497.50            | 411.90      | 38.00                   | 26.28                   | 32.99                    | 29.12                    |
| 2015-16        | 594.91            | 591.75      | 16.38                   | 16.38                   | 27.44                    | 27.44                    |
| 2016-17        | 682.59            | 658.42      | 40.00                   | 36.61                   | 31.70                    | 31.64                    |
| 2017-18        | 477.50            | 468.89      | 39.74                   | 39.07                   | 31.82                    | 31.81                    |
| 2018-19        | 400.59            | 332.30      | 56.01                   | 27.06                   | 45.00                    | 32.84                    |
| Handicrafts    | Handicrafts       | Handicrafts | Handicrafts             | Handicrafts             | Handicrafts              | Handicrafts              |
| Financial Year | Budget Allocation | Expenditure | Scheduled Cast Sub Plan | Scheduled Cast Sub Plan | Scheduled Tribe Sub Plan | Scheduled Tribe Sub Plan |
|                |                   |             | Allocation              | Expenditure             | Allocation               | Expenditure              |
| 2013-14        | 341.00            | 243.02      | 14.17                   | 8.50                    | 3.43                     | 1.72                     |
| 2014-15        | 441.30            | 228.65      | 13.20                   | 8.73                    | 2.85                     | 1.59                     |
| 2015-16        | 455.59            | 357.31      | 24.60                   | 23.45                   | 2.05                     | 1.59                     |
| 2016-17        | 375.00            | 289.96      | 43.00                   | 25.04                   | 0.00                     | 0.00                     |
| 2017-18        | 289.70            | 217.39      | 35.00                   | 26.11                   | 0.00                     | 0.00                     |
| 2018-19        | 198.42            | 195.54      | 35.50                   | 31.65                   | 14.00                    | 10.41                    |

(e) to (g): Handloom  Sector  is  unorganized,  labour  intensive  and  decentralized,  with characteristics of Cottage Industry. It is often operated out of home rather than a purpose-built facility,  with  very  little  investment  in  Plant  and  Machinery.  As  per  the  4 th Handloom  Census (2019-20), 35.23 lakh handloom workers are engaged in weaving and allied activities across the country.

Schemes under Handloom Sector are implemented on the basis of proposals received from the State  Governments  and  in  close  coordination  with  the  State  Governments.    The  year-wise outflow  of  funds  depends  on  the  number  of  viable  proposals  for  release  of  funds  under  the various schemes. This leads to variations in the annual figures. The Office of the Development Commissioner for Handlooms makes all efforts in close coordination with the State Governments and Weavers' Service Centres through regular correspondence, interaction and by holding meetings for optimum utilization of funds allocated for various schemes.

Government  of  India  supports  the  sector  by  providing  backward  linkages  i.e.  supply  of subsidized  yarn,  subsidized  looms  and  accessories,  design  support,  product  development,  skill up-gradation trainings and forward linkages i.e. Marketing platform to  handloom organization and weavers to sell their products to the consumers through various national and international marketing events.

## Annexure-I

| Name of the State   | Total Coverage (upto 28.02.14)     | Total Coverage (upto 28.02.14)        | Total Coverage (upto 28.02.14)   | Total Coverage (upto 28.02.14)   |
|---------------------|------------------------------------|---------------------------------------|----------------------------------|----------------------------------|
| Name of the State   | Apex Weavers Cooperative Societies | Primary Weavers Cooperative Societies | Self Help Groups                 | Individual weavers               |
| Andhra Pradesh      | 1                                  | 498                                   | 0                                | 7738                             |
| Telangana           |                                    | 165                                   | 0                                | 2963                             |
| Assam               | 1                                  | 1616                                  | 475                              | 2533                             |
| Bihar               | 1                                  | 123                                   | 0                                | 1705                             |
| Chhattisgarh        | 1                                  | 154                                   | 0                                | 194                              |
| Delhi               | 4                                  | 117                                   | 0                                | 0                                |
| Gujarat             | 2                                  | 199                                   | 0                                | 419                              |
| Haryana             | 0                                  | 2                                     | 0                                | 69                               |
| Himachal Pradesh    | 2                                  | 171                                   | 26                               | 370                              |
| J&K                 | 2                                  | 105                                   | 0                                | 112                              |
| Jharkhand           | 0                                  | 59                                    | 0                                | 369                              |
| Karnataka           | 1                                  | 219                                   | 2                                | 656                              |
| Kerala              | 1                                  | 360                                   | 896                              | 1117                             |
| Madhya Pradesh      | 0                                  | 68                                    | 2                                | 278                              |
| Maharashtra         | 1                                  | 409                                   | 0                                | 0                                |
| Manipur             | 1                                  | 1640                                  | 1107                             | 507                              |
| Meghalaya           | 0                                  | 0                                     | 0                                | 24                               |
| Mizoram             | 1                                  | 125                                   | 0                                | 51                               |
| Odisha              | 2                                  | 430                                   | 2636                             | 10884                            |
| Pudducherry         | 1                                  | 8                                     | 0                                | 0                                |
| Rajasthan           | 1                                  | 43                                    | 11                               | 216                              |
| Sikkim              | 0                                  | 0                                     | 0                                | 0                                |
| Tamil Nadu          | 1                                  | 718                                   | 101                              | 520                              |
| Tripura             | 0                                  | 18                                    | 0                                | 3                                |
| Uttarakhand         | 0                                  | 63                                    | 2                                | 47                               |
| Uttar Pradesh       | 14                                 | 1876                                  | 1005                             | 21964                            |
| West Bengal         | 1                                  | 456                                   | 47                               | 1487                             |
| Total               | 39                                 | 9642                                  | 6310                             | 54226                            |