Lok Sabha Question No. 1075 (UNSTARRED), answered on 2020-02-07
Subject: Powerloom Sector
Ministry: TEXTILES
Asked by: Rahul Ramesh Shewale

## LOK SABHA UNSTARRED QUESTION NO. 1075 TO BE ANSWERED ON 07.02.2020

## POWERLOOM SECTOR

## 1075.      SHRI RAHUL RAMESH SHEWALE:

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

(a) whether the poor access to credit is the main cause of the hardships being faced by the weavers/ workers who are in unorganized powerloom sector in the country;

- (b) if so, the details thereof and the reasons therefor;

(c) the  schemes/programmes  being  implemented  by  the  Government  to  ensure  adequate credit and to overcome the hardships being faced by such weavers/workers in the country;

(d) the  funds  provided  under  the  said  schemes/programmes  during  each  of  the  last  three years and the current year, State/UT-wise and Scheme/Programme-wise;

(e) the cases of irregularities reported in implementation of the said schemes/programmes across the country along with the action taken thereon; and

- (f) the corrective steps taken by the Government in this regard?

## उत्तर ANSWER वस्त्र मंरी ( श्रीमती स्त्म ृ तत ज़ू बिन इरानी ) MINISTER OF TEXTILES (SMT. SMRITI ZUBIN IRANI)

(a)  to  (c):    No  Sir,  there  is  no  such  type  of  report  received  in  the  Ministry  of  Textiles.  The Government  of  India,  Ministry  of  Textiles  is  implementing  Pradhan  Mantri  Credit  Scheme  for Powerloom Weavers under PowerTex India w.e.f. 01.04.2017 to 31.03.2020. The scheme provides adequate and timely financial assistance to the powerloom  weavers  to meet their credit requirements for investment needs (Term loan) in a flexible and cost effective manner. There are two components in the Scheme i.e. Prime Minister MUDRA Yojana (PMMY) and Stand-up India Scheme. The details are as under:-

## (i)  Under MUDRA

Eligibility:-

-  Existing individual powerloom  units  (or)  new  individual  / group  enterprises involved in weaving activity are eligible.

Financial Assistance:

-  Margin money @ 20% of machinery cost with a ceiling of Rs.1.00 lakh and
-  Interest Subvention @ 6% per year for 5 years.

## (ii) Under Stand-up India (SC/ST/Woman - who are new entrepreneurs)

Eligibility:

-  New  Powerloom  units  established  by  a  person  who  belongs  to  SC/ST/Woman Entrepreneur.
-  In case of non-individual units at least 51 % of the share holding and controlling stake should be held by either an SC (or) ST (or) Women entrepreneur.

Financial Assistance:

-  25% Margin Money (Max. Rs.25 lakhs) on the machinery cost, the borrower is required to bring in 10% of the Project Cost as his/her own contribution.

(d):  The scheme is effective from 01.04.2017 with an approved outlay of Rs. 11.92 crores for a period of 3 years and it is being operated and implemented on Pan India basis. Under this new scheme, applications received through banks are under scrutiny. Textile Commissioner Office, Mumbai has allotted the Machine Identification Code (MIC) numbers to units through Online and  requested  ROs  to  verify  the  MIC  numbers  and  submit  the  report.  Office  of  Textile Commissioner has received 15 MIC verification reports from banks, out of which 2 were found eligible and release of an amount of Rs.45.66 lakh is under process. Remaining cases are under scrutiny and certain clarifications have been sought from the concerned Banks.

- (e) to (f): No irregularities reported in implementation of the above mentioned components of the Scheme.

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