Lok Sabha Question No. 4061 (UNSTARRED), answered on 2021-03-19
Subject: Production Linked Incentive Scheme
Ministry: TEXTILES
Asked by: D. Ravikumar, P. Ravindhranath

## PRODUCTION LINKED INCENTIVE SCHEME

## 4061.  SHRI RAVIKUMAR D.: SHRI P RAVINDHRANATH:

## Will the Minister of TEXTILES वस्त्र मंत्री

be pleased to state :

(a)  whether  the  incentives  in  textile  sector  are  designed  to  boost  exports  and  not  to  promote production for domestic and local markets and if so, the reasons therefor;

(b)  the  steps  taken  to  promote  the  diversity  of  local  Handloom  and  Handicraft  instead  of  forcing standardization for exports;

(c) whether the Government proposes to implement specific schemes for handloom weavers affected by the lockdown due to the pandemic; and

(d) if so, the details thereof?

## उत्तर

## ANSWER

## वस्त्र मंत्री ( श्रीमती स्मृतत ज़ूबिन इरानी )

MINISTER OF TEXTILES (SMT. SMRITI ZUBIN IRANI)

(a) & (b): The  role  of  the  government  is  to create  a  conducive  environment  and  provide enabling conditions for textile manufacturing in the country through its various schemes aimed at promotion/upgradation  of  textile  industries/units.  The  Production  Linked  Investment  scheme  of Rs  10,683/-  crore  over  a  five  year  period  covering  MMF  and  Technical  Textiles  sector  has  been announced in November 2020 for enhancing manufacturing capabilities which will lead to growth in domestic production both for domestic markets as well as for exports. 7 Mega Textile Parks to be set up over next three years, announced in the recent budget will also lead to increase in the production for domestic sector as well as for exports.

To  develop and promote handloom  sector across the country,  Government  of India is implementing  various  schemes,  under  which  financial  assistance  in  the  form  of  grants-in-aid  is provided to the eligible handloom agencies/weavers for raw materials, purchase of upgraded looms and accessories, design innovation, product diversification, infrastructure development, skill upgradation, lighting units, marketing of handloom products in domestic as well as overseas markets and loan at concessional rates. Important schemes being implemented in Handloom sector are:

- 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)

Government  of  India,  through  office  of  Development  Commission(Handicratfs)  implements various  schemes  for  promotion  and  development  sector  under  National  Handicraft  Development Programme and Comprehensive Handicrafts Cluster Development scheme.

(c) & (d): The Government has taken proactive steps in handloom sector to address the issues arising out of pandemic as follows:

- i. Textiles Minister, Government of India has requested the Chief Ministers of all States and UTs  to instruct their State Handloom  Corporations/Co-operatives/Agencies to make purchases of the finished inventory available with the handloom weavers/artisans so as to put some ready cash in the hands of the weavers and enable them meet their household needs.
- ii. To support the handloom sector and to enable wider market for handloom weavers/producers,  about  1.5  lakh  handloom  weavers/entities  have  been  on-boarded  on Government e-Marketplace (GeM) for supply of their products to Government Departments.
- iii. The handloom weavers, and exporters from different corners of the country were connected virtually  with  international  market.  In  the  FY  2020-21.  8  events  have  been  organised  by Handloom Exports Promotion Council (HEPC) in the virtual mode.
- iv. Yarn Supply Scheme is implemented throughout the country to make available all types of yarn. Under the Scheme freight is reimbursed, and 10% price subsidy is provided on hank yarn, which is applicable on cotton, domestic silk, wool and linen yarn with quantity caps.
- v. 534 Chaupals were organized in various States to educate the weavers to avail benefits of various handloom schemes for their welfare and socio-economic development.
- vi. To promote e-marketing of handloom products, 23 e-commerce entities have been engaged for online marketing of handloom products.
- vii. To support the handloom sector and to enable wider market for handloom weavers/producers,  about  1.5  lakh  handloom  weavers/entities  have  been  on-boarded  on Government e-Marketplace (GeM) for supply of their products to Government Departments.
- viii. To enhance productivity and marketing capabilities and ensure higher returns for handloom workers  through  collective  efforts  and  pooling  of  resources,  117  handloom  producer companies have been formed in different States, wherein  younger population of handloom weavers and workers is engaged in managing different functions of producer companies.

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