Lok Sabha Question No. 4481 (UNSTARRED), answered on 2020-03-20
Subject: Reforming of Powerloom Sector
Ministry: TEXTILES
Asked by: A. Ganeshamurthi, Hemant Tukaram Godse

## LOK SABHA UNSTARRED QUESTION NO. 4481 TO BE ANSWERED ON 20.03.2020

## REFORMING OF POWERLOOM SECTOR

## 4481.   SHRI A. GANESHAMURTHI: SHRI HEMANT TUKARAM GODSE:

## Will the Minister of TEXTILES वस्त्र मंत्री

be pleased to state :

(a) the salient features of Group Workshed Scheme for Powerloom sector in the country along with the objective and scope thereof;

(b)  whether  the  Government  has  modified  the  existing  Group  Workshed  Scheme  for  decentralized powerloom sector to organize powerloom units in a cluster and provide improved working conditions;

(c) if so, the details thereof;

(d) the eligibility and criteria to avail the facilities under this scheme;

(e)  the  total  number  of  powerloom  units  benefited  under  this  scheme  during  the  last  three  years, Statewise;

(f) the total amount released and spent by the Government under this scheme during the said period; and

(g) the other measures taken by the Government to improve the condition of powerloom sector?

## उत्तर ANSWER

## वस्त्र मंत्री ( श्रीमती स्मृतत ज़ूबिन इरानी )

MINISTER OF TEXTILES (SMT. SMRITI ZUBIN IRANI)

(a): The  Government  is  implementing  Group  Workshed  Scheme  for  Powerloom  sector  under PowerTex India which is in operation since 2017 on pan India basis.  The objective and scope of the scheme are as under:-

(i) Objective :- To establish Group Worksheds for installation of modern looms in an existing or new cluster,  which  will  provide  required  scale  of  economies  for  business  operations  and  to  organize powerloom units in a cluster and to provide improved working condition in terms of more space, work environment, improve the work efficiency to enhance their competitiveness in the global market.

(ii) Scope of the Scheme:-

1. The  Worksheds  under  the  scheme  include  the  space  required  for  installation  of  Modern Shuttleless  Looms,  Weaving  Preparatory  such  as  Warping,  Sizing,  Twisting  (Two-for-one Twister  and  Three-for-one  Twister),  Texturizing,  Testing  Laboratory  &  Common  Facilities such as Sample Display Room and construction of Dormitory.
2. The  eligible  area  under  the  Group  Workshed  Scheme  would  be  restricted  to  maximum  400 sq.ft.  per  loom  which  is  the  requirement  for  working  of  a  shuttleless  loom,  including  raw material  storage,  grey  fabric  storage,  Stores  and  spare  parts  storage,  grey  fabric  mending  / folding and packing, beam gaiting and administration/utilities/workers amenities etc. Beneficiaries can have area of bigger size with their own contribution.
3. The beneficiary will be eligible for infrastructure benefit i.e., internal road to the extent of 10% of  eligible  expenditure  (  as  per  the  scheduled  of  rates  of  CPWD/State  PWD)  towards construction of internal roads provided the total number of sheds is 4 (four) and above and at least one of the sheds is proposed to house weaving preparatory equipments with or without Shuttleless looms.
4. The additional benefit in terms of space/area will be provided for Weaving Preparatory such as Warping,  Sizing,  Twisting  (Two-for-one  Twister  and  Three-for-one  Twister),  Texturising, Testing Laboratory and Common Facilities such as Sample Display room upto a maximum of 40% of total loom-age area.

(b)  &  (c): Yes,  Sir.  The  Government  has  launched  PowerTex  India,  a  comprehensive  scheme  for Powerloom sector development with effect from 01.04.2017 to 31.03.2020, modifying the old Group Workshed Scheme under Integrated Scheme for Powerloom Sector Schemes (ISPSD) which was in operation from 1.4.2012 to 31.03.2017.  The comparative statement is at Annexure-I.

(d): The eligibility criteria to avail the facilities under this scheme are as follows:

1. Eligible beneficiaries would include weaver(s) and entrepreneur(s) associated with powerloom units,  including master  weaver(s), registered  co-operative societies of powerloom weavers or any new entrepreneur(s) individually or in-group.
2. Group will consist of at least 4 weavers / entrepreneur(s) having separate legal entity. At least 24  nos. of shuttleless looms of width upto 230 cms (or) 16 nos. of shuttleless looms of wider width i.e. 230 cms and above are to be installed in the Workshed. Each beneficiary should have at least 4 number of Looms.
3. Group applications will be entertained. However, where sufficient beneficiaries are available, the subsidy will be restricted to one representative of a family only in the group.
4. 'Powerloom unit' would include weaving preparatory such as Warping, Sizing, Twisting (Twofor-one  Twister  and  Three-for-one  Twister),  Texturising,  Testing  Laboratory  and  Common Facilities such as Sample Display room` including stand-alone unit.
5. Only  TUFS  compatible  machines  are  to  be  installed  in  the  projects  sanctioned  under  the Scheme. However, prior approval of TUFS subsidy need not be a pre-condition.
6. The scheme does not envisage more than 500 looms under one project proposal.
7. (e): State-wise number of Powerloom Industry benefited under GWS for the last three years is as under:-

(Rs. in crores)

| Year    | State             |   No. of Units Benefitted. |
|---------|-------------------|----------------------------|
| 2017-18 | Gujarat           |                        109 |
|         | Maharashtra       |                         24 |
|         | Total ( 2017-18)  |                        133 |
| 2018-19 | Gujarat           |                          8 |
|         | Total (2018-19)   |                          8 |
|         | Gujarat           |                         60 |
| 2019-20 | Tamil Nadu        |                          4 |
|         | Andhra Pradesh    |                          4 |
|         | Total (2019-20)   |                         68 |
|         | Total (2017-2020) |                        209 |

(f): The details of the amount released and spent by the Government under this scheme for the last three years is as under:-

| S. No.   | Year    |   Govt. of India share released and Spent (Rs. in Cr.)* |
|----------|---------|---------------------------------------------------------|
| 1        | 2017-18 |                                                   21.53 |
| 2        | 2018-19 |                                                    7.64 |
| 3        | 2019-20 |                                                   25.97 |
| Total    | Total   |                                                   55.14 |

- (g): In  order  to  improve  the  conditions  of  Powerloom  weavers  and  for  holistic  growth  of Powerloom  sector,  the  Government  has  launched  PowerTex  India,  a  comprehensive  Scheme  for Powerloom Sector Development w.e.f. 01.04.2017 to 31.03.2020 on Pan India basis. The components of the scheme are (i) Insitu Upgradation of Plain Powerloom, (ii) Group Workshed Scheme, (iii) Yarn Bank, (iv)  Common Facility Centre, (v) Solar Energy  Scheme, (vi) Pradhan Mantri Credit Scheme, (vii) Tex Venture  Fund,  (viii)  Grant-in-aid  &  modernization  of  Powerloom  Service  Centres  and  (xi)  Facilitation and Information Technology.

## MODIFICATIONS IN GROUP WORKSHED SCHEME UNDER POWERTEX INDIA (W.E.F. 01.04.2017 TO 31.03.2020)

|   S. No. | Particulars                | Integrated Scheme for Powerloom Sector Schemes (ISPSD) (from 1.4.2012 to 31.03.2017)                                                                                                                                                                                                                                                                                             | Modifications in PowerTex India (W.e.f. 01.04.2017 to 31.03.2020)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|----------|----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        1 | Eligibility                | Group will consist of at least 4 weavers / entrepreneur(s) having separate legal entity. At least 48 Number of single width shuttleless looms or 24 Numbers of wider width shuttleless looms (i.e.280 cm and above) are to be installed in the Workshed. Each beneficiary should have at least 4 Number of Looms.                                                                | Group will consist of at least 4 weavers / entrepreneur(s) having separate legal entity. At least 24 nos. of shuttleless looms of width upto 230 cms (or) 16 nos. of shuttleless looms of wider width i.e. 230 cms and above are to be installed in the Workshed. Each beneficiary should have at least 4 number of Looms.                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|        2 | Nature of Executive Agency | The Govt. Agency or Co-operative society or a company.                                                                                                                                                                                                                                                                                                                           | Executing Agency (referred as EA) for setting up of project under this scheme which may include the State Govt. or its agency, a registered Cooperative Society or a Company set up under Companies Act 1956, as amended/ a firm set-up under the Limited Liability Partnership Act, 2008 as amended, by a group of powerloom owners (minimum of four beneficiaries) or by the                                                                                                                                                                                                                                                                                                                                                                                                                    |
|        3 | Financial Assistance       | Under this scheme, subsidy for construction of Powerloom building would be limited to 40% of the unit cost of construction subject to a maximum of Rs. 300/- per sq.ft. The maximum permissible subsidy per beneficiary shall be restricted to Rs.22.00 lakh (including the subsidy for infrastructure benefit i.e. internal road to the extent of 10% of eligible expenditure). | local powerloom association. subsidy for construction would be as under:- 1. General Category : 40% of the unit cost of construction of Group workshed, Dormitory/workers' accommodation subject to a maximum of Rs.400/- per Sq.ft 2. SC Category : 75% of the unit cost of construction of Group workshed, Dormitory/ workers' accommodation subject to a maximum of Rs.750/- per Sq.ft. 3. ST Category : 90% of the unit cost of construction of Group workshed, Dormitory/ workers' accommodation subject to a maximum of Rs.900/- per Sq.ft. The maximum permissible subsidy per beneficiary shall be restricted to Rs.22.00 lakh (including the subsidy for infrastructure benefit i.e. internal road to the extent of 10% of eligible expenditure towards construction of Internal roads). |
|        4 | Dormitory Facility         | Nil                                                                                                                                                                                                                                                                                                                                                                              | The additional subsidy for construction of Dormitory/ workers' accommodation which includes adequate hygienic toilet and bathroom (kitchen with store room and dining hall may be included as optional) for accommodation of minimum 1.25 persons per powerloom will be provided @ 125 Sq.ft per person. The rate of subsidy per sq. ft for Dormitory/workers' accommodation will be equal to the rate of subsidy per sq. ft applicable to Group workshed.                                                                                                                                                                                                                                                                                                                                        |