Lok Sabha Question No. 1955 (UNSTARRED), answered on 2019-11-29
Subject: Subsidy to Handloom Sector
Ministry: TEXTILES
Asked by: Poonam (Mahajan) Vajendla Rao

## LOK SABHA UNSTARRED QUESTION NO.1955 TO BE ANSWERED ON 29-11-2019

## SUBSIDY TO HANDLOOM SECTOR

## 1955. SHRIMATI POONAM MAHAJAN:

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

- (a) whether the Government has taken steps to promote handloom sector in the country, the details thereof; and
- (b) whether Government is considering to give subsidy to handloom sector to encourage handloom weavers, if so, the details thereof and if not, the reasons therefor?

## उत्तर

## ANSWER

## वस्त्र मंरी ( श्रीमती स्मृ तत ज़ू बिन इरानी )

MINISTER OF TEXTILES (SMT. SMRITI ZUBIN IRANI)

- (a): The  Office of the Development  Commissioner  for  Handlooms,  Ministry  of Textiles is implementing following schemes to develop and promote the handloom sector across the country: -
- 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)

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 and loan at concessional rates.

## A. NATIONAL HANDLOOM DEVELOPMENT PROGRAMME (NHDP)

- (i) BLOCK  LEVEL  CLUSTER: Introduced  in  2015-16  as  one  of  the  components  of National  Handloom  Development  Programme  (NHDP).    Financial  assistance  upto Rs. 2.00 crore per BLC for various interventions such as skill upgradation, Hathkargha Samvardhan Sahayata, product development, construction of workshed, project management cost, design development, setting up of common facility centre (CFC) etc. is provided. Besides, financial assistance upto Rs. 50.00 lakh is also available for setting up of  one  dye  house  at  district  level.  The  proposals  are  recommended  by  the  State Government.
- (ii) HANDLOOM MARKETING ASSISTANCE is  one  of  the  components  of  National Handloom  Development  Programme.    In  order  to  provide  marketing  platform  to  the handloom  agencies/weavers  to  sell  their  products  directly  to  the  consumers,  financial assistance is provided to the States/eligible handloom agencies for organising marketing events in domestic as well as overseas markets.
- (iii) WEAVERS'  MUDRA  SCHEME: Under  the  Weavers'  Mudra  Scheme,  credit  at concessional interest rate of  6% is  provided to the handloom weavers.  Margin money assistance to a maximum of Rs. 10,000 per weaver and credit guarantee for a period of 3 years is also provided. MUDRA portal has been developed in association with Punjab National Bank to cut down delay in disbursement of funds for margin money and interest subvention.

## (iv) HATHKARGHA SAMVARDHAN SAHAYATA (HSS):

Hathkargha Samvardhan Sahayata (HSS) was introduced on 1st December 2016 with an objective to provide looms/accessories to the weavers to enhance their earnings through improved productivity and quality of the handloom products. Under the scheme, 90% of the cost of loom/accessory is borne by the Government of India while remaining 10% is borne  by  the  beneficiary.  The  Government  of  India's  share  is  released  directly  in  the Bank account of the beneficiary through designated agency.

## (v) EDUCATION OF HANDLOOM WEAVERS AND THEIR CHILDREN:

Ministry  of  Textiles  has  signed  Memorandums  of  Understanding  with  Indira  Gandhi National Open University (IGNOU) and National Institute of Open Schooling (NIOS) to secure educational facilities for the weavers and their families.  NIOS offers Secondary and  Senior  Secondary  level  education  with  specialized  subjects  on  design,  marketing, business  development,  etc.  through  distance  learning  mode  for  handloom  weavers, whereas IGNOU offers continuing education programs through accessible and flexible learning opportunities relevant to the aspirations of handloom weavers and their children for career progression.

Ministry of Textiles is providing reimbursement of 75% of the fee towards admission to NIOS/IGNOU  courses  in  case  of  SC,  ST,  BPL,  and  Women  learners  belonging  to handloom weavers' families.

- (vi) ' 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, 1232 registrations have been issued under 122 product categories and sale of Rs. 722.57 crore has been generated.

Initiatives with various leading brands has been undertaken to bring out a separate range of handloom garments in their brand.

- (vii) E-COMMERCE - In order to promote e-marketing of handloom products, a policy frame work was designed and under which any willing e-commerce platform with good track record can participate in online marketing of handloom products. Accordingly, 23 e-commerce entities have been engaged for on-line marketing of handloom products. Total sales of Rs. 66.20 crore has been reported through the online portal.
- (viii) URBAN HAATS are  set  up  in  the  big  towns/metropolitan  cities  to  provide  adequate direct  marketing  facilities  to  the  craft  persons/weavers  and  eliminate  middle  agencies. 38 such Urban Haats have been sanctioned across the country so far.

## B. COMPREHENSIVE HANDLOOM CLUSTER DEVELOPMENT SCHEME:

The  Comprehensive  Handloom  Cluster  Development  Scheme  (CHCDS)  is  implemented  for development  of  Mega  Handloom  Clusters  covering  atleast  15000  to  25,000  handlooms  and financial  assistance  as  GoI  share  from  Rs.  40.00  to  Rs.70.00  crore  is  in  a  period  of  5  years. 8  mega  handloom  clusters  taken  up  as  announced  in  the  Budgets  i.e.  Varanasi,  Sivasagar (2008-09),  Virudhunagar,  Murshidabad  (2009-10),  Prakasam  &  Guntur  districts  and  Godda& neighbouring districts (2012-13), Bhagalpur &Trichy (2014-15).

Under the  scheme,  components like  conducting  Diagnostic  Study,  engaging  Designer,  Product Development,  Corpus  for  raw  material,  Construction  of  Worksheds  (for  BPL/SC/ST/Women weavers), Skill up-gradation etc. are fully funded by Government of India, while the components like  Technology  up-gradation,  lighting  units  funded  90%  and  other  common  infrastructural projects  like  Design  Studio,    Marketing  Complex,  Value  Addition  Centres,  Publicity  etc.,  are funded by the GOI to the extent of 80%.

## C. HANDLOOM WEAVERS' COMPREHENSIVE WELFARE SCHEME

Weavers Comprehensive Welfare Scheme (HWCWS) is providing life, accidental and disability insurance coverage under the components Pradhan Mantri Jivan Jyoti Bima Yojana (PMJJBY), Pradhan  Mantri  Suraksha  Bima  Yojana  (PMSBY)  and  Converged  Mahatma  Gandhi  Bunkar Bima Yojana (MGBBY).

## D. YARN SUPPLY SCHEME:

Yarn Supply Scheme is being implemented throughout the country to make available all types of yarn  at  Mill  Gate  Price.  The  scheme  is  being  implemented  through  National  Handloom Development Corporation.  Under the Scheme freight is reimbursed and depot operating charges @ 2% is given to depot operating agencies.  A component of 10% price subsidy also exists on hank yarn, which is applicable on cotton, domestic silk, wool and linen yarn with quantity caps.

(b): Ministry  of  Textiles  is  also  providing  subsidy  for  the  following  purposes  to  encourage  the handloom weavers: -

- i) 90%  subsidy  is  provided  for  procurement  of  upgraded  looms  &  accessories  under Hathkargha Samvardhan  Sahayata Yojana for better quality and productivity of handloom products.  It is also provided for procurement of lighting units to facilitate the weavers.
2. ii) 10% price subsidy is provided on hank yarn, which is applicable on cotton, domestic silk, wool and linen yarn with quantity caps.
3. iii) 100%  subsidy  in  the  case  of  SC/ST,  Women  and  BPL  weavers  is  provided  for construction of workshed and 75% in the case of above poverty line and other weavers.
4. iv) Ministry of Textiles is providing reimbursement of 75% of the fee towards admission to NIOS/IGNOU  courses  in  case  of  SC,  ST,  BPL,  and  Women  learners  belonging  to handloom weavers' families.

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