Lok Sabha Question No. 3246 (UNSTARRED), answered on 2020-03-13
Subject: Development of Textile Sector
Ministry: TEXTILES
Asked by: Hemant Patil, Rita Bahuguna Joshi, Chinta Anuradha, Unmesh Bhaiyyasaheb Patil, Shrikant Eknath Shinde, Sujay Radhakrishna Vikhepatil, Sambhajirao Mane Dhairyasheel

## LOK SABHA UNSTARRED QUESTION NO. 3246 TO BE ANSWERED ON 13.03.2020

## DEVELOPMENT OF TEXTILE SECTOR

## 3246.  SHRI HEMANT SRIRAM PATIL:

SHRIMATI RITA BAHUGUNA JOSHI:

SHRIMATI CHINTA ANURADHA:

SHRI UNMESH BHAIYYASAHEB PATIL:

DR. SHRIKANT EKNATH SHINDE:

DR. SUJAY RADHAKRISHNA VIKHE PATIL:

SHRI DHAIRYASHEEL SAMBHAJIRAO MANE:

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

- (a) whether the Government is considering to formulate any plan/programme to develop infrastructure, strengthening, modernizing the Indian textile industries and increasing their competence globally;
- (b) if so, the details thereof along with the funds allocated for this purpose during the last five years;
- (c) whether the said programme is beneficial in terms of employment, earning foreign exchange and betterment of people engaged in this trade, if so, the details thereof; and
- (d) the steps taken by the Government for providing common services and infrastructure to boost the sector and become an incredibly trustworthy brand on world map?

## उत्तर ANSWER

## वस्त्र मंत्री ( श्रीमती स्मृतत ज़ूबिन इरानी )

MINISTER OF TEXTILES

(SMT. SMRITI ZUBIN IRANI)

- (a) to (c): With  a  view  to  boost  textiles  sector  in  the  country,  government  has  initiated  two important steps which were part of Budget Announcement in Lok Sabha on 01.02.2020. These are;
-  Creation of National Technical Textiles Mission with total outlay of Rs 1480 crore. Technical textiles are textiles which are used for their functional properties, rather than for aesthetics or comfort. There are  a  large  varities  of  technical  textiles  some  of  which  are  used  in  important  applications  such  as agriculture, health and hygiene, medical applications, soil and water conservation, roads and highway, railways, airports, sea-ports, defence, protection of personnel in military, para-military, petrochemical/chemical industries, safety of fireman etc. The aim of the Mission is to position India as a  major  producer,  consumer  and  exporter  of  technical  textile  products  in  the  world  map,  therefore boosting its economy and technological capability.
-  Abolition of anti-dumping duty on P urified Terephthalic Acid (PTA), which is a critical input for

man-made textile fibre and yarns. Its easy availability and competitive pricing is desirable to unlock the immense potential in textile sector which is a significant employment generator.

In addition, Government is implementing various policy initiatives and schemes for supporting the development of textile industry. These schemes and initiatives which promote technology upgradation, creation  of  infrastructure,  skill  development  and  sectoral  development  in  the  textile  sector,  create  a conducive environment and provide enabling conditions for textile manufacturing in the country and helps in boosting employment generation and earning foreign exchange directly and indirectly.

In order to support the growth and modernization of the textile industry in the country, the government has been implementing several schemes given below:

- i) Amended Technology Upgradation Fund Scheme (A-TUFS): ATUFS is being implemented for technology upgradation of the textile industry with one time capital subsidy for eligible machinery. Segments  which  have  higher  employment  and  export  potential  such  as  Garmenting  and  Technical Textiles are eligible for capital subsidy at the rate of 15% subject to cap of Rs.30 crore. Segments such as weaving for brand new Shuttle-less Looms (including weaving preparatory and knitting), Processing, Jute, Silk and Handlooms  get subsidy at the rate of 10% subject to a cap of Rs. 20 crore. A budget provision of Rs.17, 822 crore has been approved for seven years from 2015-16 to 2021-22 to meet the committed liabilities of Rs.12,671 crore  for previous version of TUFS and Rs 5,151 crore for the  cases under ATUFS. Year wise funds allocated under ATUFS during last five years are as follows:
2. ii) Schemes  for  the  development  of  the  Powerloom  Sector(Power-Tex) :  A  comprehensive Scheme  for  the  development  of  Powerloom  and  Knitting  &  Knitwear  sectors  w.e.f.  01.04.2017  to 31.03.2020  &  01.07.2019  to  31.03.2020  respectively  on  pan  India  basis.  The  component  under  the Scheme  are  In-situ  upgradation,  Group  work  shed  Scheme,Yarn  Bank  Scheme,  Common  Facility Centre(CFC), Solar Energy Scheme, Pradhana Mantri Credit Scheme, Grant-in-Aid & Modernization / up  gradation  of  Powerloom  Service  Centres,  Tex  Fund  Venture  Capital  Fund  and  Facilitation  IT, Awarness,  Market  Development  &  Publicity  for  Powerloom  Scheme  allocated  and  utilized  for  this purpose during the last five years are as under:-
3. iii) Scheme for Integrated Textile  Parks  (SITP) :  The  scheme  provides  support  for  creation  of world-class infrastructure facilities for setting up of textile units, with a Government of India grant upto 40% of the project  cost    and  Government  of  India  grant  upto  90%  of  the  project  cost  for  first  two projects (each) in the  States of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura,  Sikkim,  Himachal  Pradesh,  Uttarakhand,  Union  Territory  of  Jammu  &  Kashmir  and  Union Territory of Ladakh; with ceiling limit of Rs.40.00 crores for each textile park.  Under, 22 completed textile parks all over the country, 82,112 people were employed during the last three years. The funds allocated in the last 5 years under SITP are given below:
4. iv) Integrated Processing Development Scheme (IPDS): In order to facilitate the textile industry to  become  globally  competitive  using  environmentally  friendly  processing  standard  and  technology. Government  of  India  has  launched  IPDS  to  encourage  the  private  sector  to  set  up  world  call, environment  -  friendly  and  textile  processing  units  in  the  textile  clusters  of  the  country,  the Government of India (GoI) is giving the support in respect of  IPDS to set up water treatment, Common Effluent Treatment Plant and Technology (CETP) including marine & revering along with Zero Liquid Discharge (ZLD) will be limited to 50% of the project cost  in  subject  to  a  ceiling  of  Rs.75  Cr.  per project. The funds allocated in the last 5 years under IPDS are given below:
- v) Silk  Samagra :  Government  of  India  has  been  implementing  a  Central  Sector  Scheme  'Silk Samagra'  for  development  of  sericulture  in  the  country  with  components  such  as  Research  & Development,  Training,  Transfer  of  Technology  and  I.T  Initiatives,  support  to  seed  organizations, coordination  and  market  development  and,  quality  certification  Systems  (QCS)/  Export  Brand Promotion and Technology Upgradation. R&D efforts have also been initiated to evolve new products by blending silk with other fibres such as wool, coir, cotton etc., which have demand in international markets.

|    Year |   Budget Estimate(Rs. in Crore) | Revised Estimate(Rs. in Crore)   |
|---------|---------------------------------|----------------------------------|
| 2300    |                         1946.02 | 2014-15                          |
| 1520.79 |                         1434.78 | 2015-16                          |
| 1480    |                         2621.98 | 2016-17                          |
| 2013    |                         1913.15 | 2017-18                          |
| 2300    |                          622.63 | 2018-19                          |

| Financial Year   |   Fund allocated (Rs. In Cr) |   Fund utilized (Rs. In Cr) |
|------------------|------------------------------|-----------------------------|
| 2014-15          |                        54.13 |                       50.83 |
| 2015-16          |                       102.58 |                      100.17 |
| 2016-17          |                       108.57 |                      108.57 |
| 2017-18          |                       115.34 |                      107.94 |
| 2018-19          |                        71.33 |                       65.7  |

| Financial Year   |   Funds Allocated (RE) in Rs. crore |
|------------------|-------------------------------------|
| 2015-16          |                               26.32 |
| 2016-17          |                               51    |
| 2017-18          |                               40    |
| 2018-19          |                               27.15 |
| 2019-20          |                               40    |

| Financial Year   |   Funds Allocated (RE) in Rs. crore |
|------------------|-------------------------------------|
| 2015-16          |                               28.89 |
| 2016-17          |                               28    |
| 2017-18          |                                5    |
| 2018-19          |                                3.05 |
| 2019-20          |                               10.8  |

The implementation of above schemes benefited people to take sericulture & silk related activities and get  self-employment  opportunities.  It  is  estimated  that,  sericulture  industry  provides  employment  to approximately  91.78  lakh  persons  (as  of  March-2019)  in  rural  and  semi-urban  areas  in  the  country. Silkworm  rearing  is  mainly  practiced  in  rural  areas  of  the  country  providing  livelihood  to  weaker section of the society. Around 12,03,942 farming families and 56,013 reeler families are involved in sericulture  related  activities  in  the  country.    The  foreign  exchange  earned  from  silk  exports  during 2018-19 is Rs. 2031.89 crores. Funds allocated under Silk Samagra during 2014-19 is given below:

| Financial Year   |   Funds Allocated (in Rs. crore) |
|------------------|----------------------------------|
| 2014-15          |                           297.58 |
| 2015-16          |                           178.1  |
| 2016-17          |                           154.01 |
| 2017-18          |                           161.5  |
| 2018-19          |                           120    |

- vi) North East Region Textiles Promotion Scheme (NERTPS) :  This  scheme promotes textiles industry  in  the  North  Eastern  Region  by  providing  infrastructure,  capacity  building  and  marketing support to all  segments  of  textile  industry.  Funds  allocated  under  NERTPS  during  2014-19  is  given below:
- vii) Handloom Sector :  The Government is implementing following schemes across the country for infrastructure development, strengthening the sector, modernizing looms & accessories and increasing competence globally: -
- 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)

| Financial Year   |   Funds Allocated (in Rs. crore) |
|------------------|----------------------------------|
| 2014-15          |                            43.44 |
| 2015-16          |                           150.82 |
| 2016-17          |                           189.65 |
| 2017-18          |                           217.72 |
| 2018-19          |                            39.75 |

Under the above schemes, financial assistance is provided for raw materials, purchase of 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. Employment generation in the handloom 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 five years and the current year, 55625 handloom workers have been provided training to upgrade their skill, 44571 Looms /Accessories provided under HSS  and  253567  number  of  loans  have  been  sanctioned  to  handloom  weavers  under  the  MUDRA Scheme  and  loan  amount  worth  Rs.  827.40  crore  has  been  disbursed.  The  Handloom  Marketing Assistance component of National Handloom Development Programme provides financial assistance to eligible  handloom  organisations  for  organising  participation  of  their  members  in  overseas  markets.

This  component  provides  platform  to  the  handloom  agencies  to  sell  their  products  directly  to  the overseas buyers and earn better earnings without middlemen. Details of funds allocated in the last five years and the current year is at Annexure .

- viii) Scheme  for  Incubation  in  Apparel  Manufacturing  (SIAM) which  was  launched  on  pilot basis  in  January  2014.  The  Scheme  is  a  demand  driven.  The  objective  of  the  Scheme  is  to  promote entrepreneurs in apparel manufacturing by providing them an integrated workspace and linkages based entrepreneurial  ecosystem  with  plug  and  play  facility  which  help  them  in  reducing  operational  and financial  cost  for  establishing  and  growing  a  new  business.    The  scheme  envisages  promoting entrepreneurship in apparel manufacturing, creating additional manufacturing capacity and generating additional  employment  opportunities.  The  funds  allocated  in  the  last  5  years  under  SIAM  are  given below:
- ix) Scheme for Textile Industry Worker Hostel (STIWA) was launched in 2014 on Pilot basis for establishment of Worker hostels at textile parks. Two projects were approved under the scheme one in the State of Tamil Nadu and one in Gujarat. Both the projects have now been completed under the extant scheme guidelines. The funds allocated in the last 5 years under STIWA are given below:
- x) The Government had also approved a special package for textile sector with an outlay of Rs. 6000 crores to boost employment generation and exports particularly in Garmenting and Made-ups.
- (d): Steps taken by the Government for providing common services and infrastructure to boost the Textile sector are as under:
-  Powerloom  Service  Centres; There  are  47  Powerloom  Service  Centres  functioning  at various  Powerloom  clusters  of  the  country  providing  services  to  the  decentralized  powerloom sector like testing, training, design development, consultancy & trouble shooting  and conducting various awareness programs, seminar/workshops and other need based services.
-  Common Facility Centres; One of the components under PowerTex India providing financial assistance  for  setting-up  of  Common  Facility  Centres  such  as  design  centre/studio,  testing  facilities, training  centre,  information  cum  trade  centre  and  common  raw  material/  yarn  /  sales  depot,  water treatment plant for industrial use, dormitory, workers residential space, common pre-weaving facilities viz. yarn dyeing, warping & sizing, twisting etc., and post weaving facilities viz. processing, etc.
-  Pre-weaving,  post-weaving,  design  studio,  testing  facilities,  training  centre,  information  cum trade  centre  and  common  raw  material  /  yarn  /  sales  depot,  water  treatment  plant  for  industrial  use, dormitory & workers' residential space etc.

| Financial Year   |   Funds Allocated (RE) in Rs. crore |
|------------------|-------------------------------------|
| 2015-16          |                                0.62 |
| 2016-17          |                                4    |
| 2017-18          |                                4    |
| 2018-19          |                                1    |
| 2019-20          |                                6.2  |

| Financial Year   |   Funds Allocated (RE) in Rs. crore |
|------------------|-------------------------------------|
| 2015-16          |                                0.3  |
| 2016-17          |                                3    |
| 2017-18          |                                1    |
| 2018-19          |                                0.76 |
| 2019-20          |                                1    |

Max. Government of India subsidy Rs.2 cr. for machineries and Rs. 0.40 crore for building.

-  Comprehensive  Powerloom  Cluster  Development  Scheme:Government  of  India  is providing financial assistance for setting up Powerloom  Mega  Cluster to create world-class infrastructure to integrate the production chain by filling the gaps to fulfill the felt needs of the  existing powerloom clusters and to increase production & exports and provide better living conditions under Comprehensive Powerloom Cluster Development Scheme (CPCDS).

Government  grant/equity  would  be  provided  with  the  expectation  of  matching  investment  by  the industry in the ratio of 60:40: Government: Private. The Government of India assistance will be limited to Rs.50 Crores.

-  ' 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, 1333 registrations  have  been  issued  under  184  product  categories  and  sale  of  Rs.  861.93  crore  has  been generated. Initiatives with various leading brands has been undertaken to bring out a separate range of handloom garments in their brand.

## For Silk Sector:

-  To produce import substitute Bivoltine silk in the country, Research & Development has been focused to evolve productive bivoltine hybrids and package of practices for production.
-  For  production  of  3A-4A  grade  raw  Silk  from  the  bivoltine  cocoons,  Automatic  Reeling Machines (ARM)/Units have been established in the country.
-  The basic customs duty of 10% & 20% is levied on raw silk and silk fabric import respectively. This  makes  the  domestic  silk  weaving  market  segment  stronger  and  also  makes  Indian  silk  export sector highly competitive.
-  Thrust  provided  on  product  development  &  diversification  with  focus  on  silk  blends  & popularizing Vanya silk products in the export business.
-  Support extended for the establishment of Common Facility Centres (CFCs) to the States for providing common services and infrastructure.

## for 13/03/2020

| Scheme-wise funds allocated in the last five years and current year   | Scheme-wise funds allocated in the last five years and current year   | Scheme-wise funds allocated in the last five years and current year   | Scheme-wise funds allocated in the last five years and current year   | Scheme-wise funds allocated in the last five years and current year   | Scheme-wise funds allocated in the last five years and current year   | Scheme-wise funds allocated in the last five years and current year   | Scheme-wise funds allocated in the last five years and current year   |
|-----------------------------------------------------------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------|
| SN                                                                    | Name of Scheme                                                        | 2014-15 (Rs. In crore)                                                | 2015-16 (Rs. In crore)                                                | 2016-17 (Rs. In crore)                                                | 2017-18 (Rs. In crore)                                                | 2018-19 (Rs. In crore)                                                | 2019-20 (Rs. In crore)                                                |
|                                                                       |                                                                       | Funds allocated (RE)                                                  | Funds allocated (RE)                                                  | Funds allocated (RE)                                                  | Funds allocated (RE)                                                  | Funds allocated (RE)                                                  | Funds allocated BE                                                    |
| 1                                                                     | National Handloom Development Programme (NHDP)                        | 292.00                                                                | 135.83                                                                | 167.53                                                                | 140.24                                                                | 138.53                                                                | 135.00                                                                |
| 2                                                                     | Comprehensive Handloom Cluster Development Scheme (CHCDS)             | 18.00                                                                 | 37.31                                                                 | 50.00                                                                 | 32.50                                                                 | 21.50                                                                 | 40.00                                                                 |
| 3                                                                     | Handloom Weavers Comprehensive Welfare Scheme (HWCWS)                 | 57.50                                                                 | 18.91                                                                 | 26.56                                                                 | 25.00                                                                 | 10.05                                                                 | 20.00                                                                 |
| 4                                                                     | Yarn Supply Scheme (YSS)                                              | 130.00                                                                | 321.96                                                                | 261.50                                                                | 200.00                                                                | 155.41                                                                | 195.00                                                                |
|                                                                       | Total                                                                 | 497.50                                                                | 514.01                                                                | 505.59                                                                | 397.74                                                                | 325.49                                                                | 390.00                                                                |

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