Lok Sabha Question No. 297 (STARRED), answered on 2019-07-12
Subject: Employment Opportunities in Handloom Industry
Ministry: TEXTILES
Asked by: Chandan Singh

## LOK SABHA STARRED QUESTION NO. *297 TO BE ANSWERED ON 12.07.2019

## EMPLOYMENT OPPORTUNITIES IN HANDLOOM INDUSTRY

## * 297.       SHRI CHANDAN SINGH:

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

- (a) whether maximum  employment  opportunities  can  be generated by developing the handloom industry as a micro and rural industry in the country;
- (b) if so, the procedure laid down/the roadmap proposed in this regard by the Government  and the details of implementation of any schemes/policies specifically  earmarked  for  the  development  of  handloom  industries  in  the previous years;
- (c) the details of increase in turnover in such handloom industries during the last three years; and
- (d) the number of employment opportunities generated during last three years along with the percentage growth thereof?

## उत्तर

ANSWER

## वस्त्र मंरी ( श्रीमती स्मृ तत ज़ूबिन इरानी )

MINISTER OF TEXTILES (SMT. SMRITI ZUBIN IRANI)

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

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PART  (a)  TO  (d)  OF  LOK SABHA STARRED QUESTION NO. *297 FOR ANSWER ON 12.07.2019

(a) & (b): 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 3 rd Handloom Census (2009-10), 43.30 lakh persons are engaged in weaving and allied activities across the country. Maximum number of handloom units are not registered as Micro, Small and Medium Enterprises (MSME), but 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.

In  order  to  promote  the  handloom  sector  and  sustain  employment,  the Government of India is implementing following schemes across the country:-

- 1) National Handloom Development Programme (NHDP)
- 2) Comprehensive Handloom Cluster Development Scheme (CHCDS)
- 3) Handloom Weavers' Comprehensive Welfare Scheme (HWCWS)
- 4) Yarn Supply Scheme (YSS)

## A. NATIONAL HANDLOOM DEVELOPMENT PROGRAMME (NHDP)

- (i) BLOCK  LEVEL  CLUSTER: Introduced  in  2015-16  as  one  of  the components of National Handloom Development Programme (NHDP). Financial assistance upto Rs. 2.00 crore per BLC for various interventions such as skill upgradation, Hathkargha Samvardhan Sahayata, product development, construction of workshed, project management  cost,  design  development,  setting  up  of  common  facility centre  (CFC)  etc.  is  provided.  Besides,  financial  assistance  upto  Rs. 50.00 lakh is  also  available  for  setting  up  of  one  dye  house  at  district level. The proposals are recommended by the State Government.
- (ii) HANDLOOM MARKETING ASSISTANCE is one of the components of National Handloom Development Programme.  In order to provide marketing platform to the handloom agencies/weavers to sell their products directly to the consumers, financial assistance is provided to the States/eligible handloom agencies for organising marketing events in domestic as well as overseas markets.
- (iii) WEAVERS'  MUDRA  SCHEME: Under the Weavers' Mudra Scheme,  credit  at  concessional  interest  rate  of  6%  is  provided  to  the handloom  weavers.    Margin  money  assistance  to  a  maximum  of  Rs.

10,000 per weaver and credit guarantee for a period of 3 years is also provided. MUDRA  portal has  been  developed  in  association  with Punjab National Bank to cut down delay in disbursement of funds for margin money and interest subvention

## B. COMPREHENSIVE  HANDLOOM  CLUSTER  DEVELOPMENT SCHEME:

The Comprehensive Handloom Cluster Development Scheme (CHCDS) is  implemented for development of Mega Handloom Clusters covering atleast 15000 to 25,000 handlooms and financial assistance as GoI share from  Rs.  40.00  to  Rs.70.00  crore  is  in  a  period  of  5  years.    8  mega handloom clusters taken up as announced in the Budgets i.e. Varanasi, Sivasagar (2008-09), Virudhunagar, Murshidabad (2009-10), Prakasam&  Guntur  districts  and  Godda&  neighboring  districts  (201213), Bhagalpur &Trichy (2014-15).

Under  the  scheme,  components  like  conducting  Diagnostic  Study, engaging  Designer,  Product  Development,  Corpus  for  raw  material, Construction of Worksheds (for BPL/SC/ST/Women weavers), Skill upgradation  etc.  are  fully  funded  by  Government  of  India,  while  the components  like  Technology  up-gradation,  lighting  units  funded  90% andother common infrastructural projects like Design Studio, Marketing Complex, Value Addition Centres, Publicity etc., are funded by the GOI to the extent of 80%.

## C. HANDLOOM WEAVERS' COMPREHENSIVE WELFARE SCHEME

Weavers Comprehensive Welfare Scheme (HWCWS) is providing life, accidental  and  disability  insurance  coverage  under  the  components Pradhan  Mantri  Jivan  Jyoti  Bima  Yojana  (PMJJBY),  Pradhan  Mantri Suraksha  Bima  Yojana(PMSBY)  and  Converged  Mahatma  Gandhi Bunkar Bima Yojana(MGBBY).

## D. YARN SUPPLY SCHEME:

Yarn  Supply  Scheme  is  being  implemented  throughout  the  country  to make available all types of yarn at Mill Gate Price. The scheme is being implemented  through  National  Handloom  Development  Corporation. Under  the  Scheme  freight  is  reimbursed  and  depot  operating  charges @2% is given to depot operating agencies.  A component of 10% price subsidy  also  exists  on  hank yarn,  which  is  applicable  on  cotton, domestic silk, wool and linen yarn with quantity caps.

## E. HATHKARGHA SAMVARDHAN SAHAYATA (HSS):

Hathkargha Samvardhan Sahayata (HSS) was introduced on 1st December 2016 with  an  objective  to  provide  looms/accessories  to  the weavers  to  enhance  their  earnings  through  improved  productivity  and quality of the handloom products. Under the scheme, 90% of the cost of loom/accessory  is  borne  by  the  Government  of  India  while  remaining 10% is  borne  by  the  beneficiary.  The  Government  of  India's  share  is released directly in the Bank  account  of  the beneficiary  through designated agency.

## F. EDUCATION OF HANDLOOM WEAVERS AND THEIR CHILDREN:

Ministry  of  Textiles  has  signed  Memorandums  of  Understanding  with Indira Gandhi National Open University (IGNOU)  and National Institute  of  Open Schooling (NIOS) to secure educational facilities for the  weavers  and  their  families.    NIOS  offers  Secondary  and  Senior Secondary level education with specialized subjects on design, marketing,  business  development,  etc.  through  distance  learning  mode for  handloom  weavers,  whereas  IGNOU  offers  continuing  education programs through accessible and flexible learning opportunities relevant to  the  aspirations  of  handloom  weavers  and  their  children  for  career progression.

Ministry  of  Textiles  is  providing  reimbursement  of  75%  of  the  fee towards  admission  to  NIOS/IGNOU  courses  in  case  of  SC,  ST,  BPL, and Women learners belonging to handloom weavers' families.

- G. ' INDIA  HANDLOOM'  BRAND -During  the celebration of 7th August 2015 as National Handloom Day, 'India Handloom' Brand was launched  by  Hon'ble  Prime  Minister  for  branding  of  high  quality handloom products. It promotes production of niche handloom products with high quality, authentic traditional designs with zero defect and zero effect  on  environment.  Since  its  launch,  1232  registrations  have  been issued  under  122  product  categories  and  sale  of  Rs.  689.72  crore  as reported on 31-03-2019.

Initiatives with various leading brands has been undertaken to bring out a separate range of handloom garments in their brand.

- H. E-COMMERCE -In order to promote e-marketing of  handloom products,  a  policy  frame  work  was  designed  and  under  which  any willing e-commerce platform with good track record can participate in online  marketing  of  handloom  products.  Accordingly,  23  e-commerce entities have been engaged for on-line marketing of handloom products. A  total  sales  of  Rs.34.72  crore  has  been  reported  through  the  online portal as on 31-03-2019.
- I. URBAN  HAATS are  set  up  in  the  big  towns/metropolitan  cities  to provide adequate direct marketing facilities to the craft persons/weavers and  eliminate  middle  agencies.    38  such  Urban  Haats  have  been sanctioned across the country so far.
- J. SANT KABIR AWARD is conferred to outstanding handloom weavers who  are  carrying on  with the tradition  and  have  made  valuable contribution to the development of the sector. Since 2012 to 2016, 24 Sant Kabir Awards have been conferred to the handloom weavers.
- K. NATIONAL AWARD is conferred to handloom weavers in recognition of  their  outstanding  craftsmanship  contribution  and  development  of handloom weaving. This recognition encourage them to continue  with the work in a more enthusiastic and productive manner.  Since 2012 to 2016, National Awards have been conferred to 102 handloom weavers across the country.

From the year 2016, two Sant Kabir Awards, four National Awards and four National Merit Certificates  awards  have  also been  instituted exclusively to the women handloom weavers in addition to the existing Sant Kabir Awards, National Awards and National Merit Certificate in the  field  of  weaving.  This  exclusive  award  to  the  women  handloom weavers is named as ' Kamaladevi Chattopadhyay - Awards'. 7 such awards  were  conferred  to  women  handloom  weavers  during  National Handloom Day celebrated at Jaipur on 7 th August 2018.

(c): Handloom  is  primarily  a  household  activity  undertaken  by  the  weavers  as individuals  enterprise,  under  Master  Weavers  and  as  members  of  the  Primary/Apex Cooperative societies and Handloom organizations.  The main fibres used by weavers in the sector are cotton, silk, wool, linen, jute and acrylic. A lot of Handloom items are produced by the sector for the in-house consumption of weavers and their families. Due  the  unorganized  and  traditional  nature  of  the  sector,  the  data  pertaining  to Handloom production is dispersed and largely unavailable for centralized quantification. However, evaluation of schemes by independent agencies has revealed that productivity has increased.

(d): Employment  generation  in  the  sector  is  through  facilitation  under  various Government Schemes like Hathkargha Samvardhan Sahayata (HSS), where weavers are  provided  looms  &  accessories  and  MUDRA  loans  at  concessional  rate.  Also, Handloom workers are provided training for up-gradation of their skills. During the last  three  years,  51787    handloom  workers  have  been  provided  training  to  upgrade their  skill,  28397  Looms  /Accessories  provided  under  HSS  and  103870  number  of loans have been sanctioned to handloom weavers under the MUDRA Scheme.

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