Lok Sabha Question No. 141 (STARRED), answered on 2018-12-20
Subject: Access to Credit
Ministry: TEXTILES
Asked by: RAHUL RAMESH SHEWALE, BHARTRUHARI MAHTAB

## LOK SABHA STATRRED QUESTION *141 TO BE ANSWERED ON 20.12.2018

## 'ACCESS TO CREDIT'

## *141. SHRI RAHUL SHEWALE: SHRI BHARTRUHARI MAHTAB:

Will the Minister of Textiles वस्त्र मंरी be please to state:

- (a) whether  poor  access  to  credit  is  the  main  cause  of  the  hardships  being faced by the weavers/workers of the unorganized powerloom sector in the country, if so, the details thereof and the reasons therefor;
- (b) the  schemes/programmes  being  implemented  by  the  Government  to ensure adequate credit and overcome the hardships being faced by such weavers/workers in the country;
- (c) the funds provided by the Government under the said schemes/programmes during each of the last three years and the current year, State/UT and Scheme/Programme-wise;
- (d) the number  of complaints received by the Government  regarding irregularities  in  implementation  of  the  said  schemes/programmes  across the country during the said period along with the present status of such complaints; and
- (e) the corrective steps taken by the Government to ensure adequate credit to the said sector and overcome their hardships along with the achievements thereof?

## उत्तर

## ANSWER

## वस्त्र मंरी ( श्रीमती स्मृ तत ज़ूबिन इरानी )

MINISTER OF TEXTILES (SMT. SMRITI ZUBIN IRANI)

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

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF LOK SABHA STARRED QUESTION NO.*141 DUE FOR ANSWER ON 20.12.2018.

- (a): No, Madam.

(b) :  To  provide  adequate  and  timely  financial  assistance  to  the  Powerloom weavers to meet their credit requirements, for investment needs (Term Loan) as well as for working capital, in a flexible and cost effective manner, the Ministry of  Textiles  has  launched  Pradhan  Mantri  Credit  Scheme  for  Powerloom Weavers  under  PowerTex  India  with  effect  from  01.04.2017  to  31.03.2020. There are two components in the Scheme i.e. Prime Minister MUDRA Yojana (PMMY) and Stand-up India Scheme. The details are as under:-

## 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 lakh and
-  Interest Subvention @ 6% per year for 5 years.
-  Reimbursement of credit guarantee fee upto 1% of the loan amount.

## 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  lakh)  on  the  machinery  cost,  the borrower is required to bring in 10% of the Project Cost as his/her own contribution.
-  Reimbursement of credit guarantee fee upto 1% of the loan amount.

(c): The  new  scheme  under  PowerTex  India  was  launched  with  an  approved outlay of Rs.20 crores for a period of 3 years from 1.4.2017 to 31.3.2020. The revised  scheme  guidelines  were  finalized  in  January,  2018  and  therefore, Rs.4.00  crores  has  been  allocated  for  2018-19.  Since  the  scheme  is  demand driven  and  is  operated/implemented  on  Pan  India  basis,  no  specific  State/UT wise allocation is made.

(d): No Madam. No complaints have been received.

(e): The  Ministry  through  Office  of  Textile  Commissioner  has  launched  a comprehensive software for management of all components of PowerTex India Scheme on dedicated online portal with online application facility and a mobile app for availing the benefits of PowerTex India Scheme. The said software shall provide  an  online  interface  to  the  beneficiaries  with  the  Powerloom  Service Centres,  Regional  Offices  of  the  Textile  Commissioner.  The  software  can  be accessed from a dedicated website www.ipowertexindia.gov.in. The mobile app can be downloaded from google play store by typing iPowerTex. A  Help-line no.  1800-222017  is  also  available  for  seeking  any  assistance  of  powerloom sector.

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