Lok Sabha Question No. 3202 (UNSTARRED), answered on 2019-07-12
Subject: Group Workshed Scheme for Powerloom Sector
Ministry: TEXTILES
Asked by: Heena Vijaykumar Gavit, Kuldeep Rai Sharma, Subhash Ramrao Bhamre, Supriya Sadanand Sule, Amol Ramsing Kolhe, Sunil Dattatray Tatkare

## LOK SABHA UNSTARRED QUESTION NO.3202 TO BE ANSWERED ON 12.07.2019

## GROUP WORKSHED SCHEME FOR POWERLOOM SECTOR

## 3202. DR. HEENA GAVIT:

SHRI KULDEEP RAI SHARMA:

DR. SUBHASH RAMRAO BHAMRE:

SHRIMATI SUPRIYASULE:

DR. AMOL RAMSING KOLHE:

SHRI SUNIL DATTATRAY TATKARE:

Will the Minister of TEXTILES वस्त्र मंरी 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, State-wise;
- (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 conditions of powerloom sector?

## उत्तर

## ANSWER

## वस्त्र मंरी ( श्रीमती स्मृ तत ज़ू बिन 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.

(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  GWSS  for  the  last  three  years  is  as under:-

(Rs. in crores)

| S.    |                | 2016-17         | 2016-17            | 2017-18         | 2017-18            | 2018-19         | 2018-19            |
|-------|----------------|-----------------|--------------------|-----------------|--------------------|-----------------|--------------------|
| No.   | State          | No. of Projects | GOI Share released | No. of Projects | GOI Share released | No. of Projects | GOI Share released |
| 1     | Andhra Pradesh | -               | -                  | 1               | 0.25               | -               | -                  |
| 2     | Gujarat        | 45              | 15.59              | 54              | 17.31              | 15              | 7.03               |
| 3     | Karnataka      | 2               | 1.12               | -               | -                  | -               | -                  |
| 4     | Maharashtra    | 7               | 2.71               | 11              | 3.70               | 3               | 0.62               |
| 5     | Madhya Pradesh | 1               | 0.58               | 1               | 0.28               | -               | -                  |
| 6     | Tamil Nadu     | -               | -                  | -               | -                  | -               | -                  |
| 7     | Uttar Pradesh  | -               | -                  | -               | -                  | -               | -                  |
| Total | Total          | 55              | 20.00              | 67              | 21.54              | 18              | 7.65               |

- (f): The details of the amount released and spent by the Government under this scheme for the last three years is as under:-
- (g): In order to improve the conditions of Powerloom wavers 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.

| S. No.   | Year    |   Govt. of India share released and Spent (Rs. in Cr.) |
|----------|---------|--------------------------------------------------------|
| 1        | 2016-17 |                                                  20    |
| 2        | 2017-18 |                                                  21.53 |
| 3        | 2018-19 |                                                   7.64 |
| Total    | Total   |                                                  49.17 |

## Annexure-I

## 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 local powerloom association.                                                                                                                                                                                                                                                                                                                                                           |
|        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). | 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.                                                                                                                                                                                                                                                                                                             |

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