Lok Sabha Question No. 3333 (UNSTARRED), answered on 2019-07-12
Subject: Financial Assistance to Handicraft and Textile Industry
Ministry: TEXTILES
Asked by: Krupal Balaji Tumane, Sanjay Haribhau Jadhav

## 'Financial Assistance to Handicraft and Textile Industry'

## 3333. SHRI KRUPAL BALAJI TUMANE: SHRI SANJAY HARIBHAU JADHAV :

Will the Minister of Textiles be pleased to state:

(a)  whether  the  Government  proposes  to  provide  financial  assistance  and  raw  material  to handicraft/textile industry to make it competitive globally;

(b)  if  so,  whether  the  Government  proposes  to  set  up  textile  clusters  to  generate  employment opportunities in textile industry;

(c) if so, the details thereof, Statewise;

(d)  the  details  of  concession  and  incentives  being  provided  by  the  Government  for  the  said purpose; and

- (e) the steps taken or proposed to be taken by the Government in this regard?

## ANSWER MINISTER OF TEXTILES (SMT. SMRITI JUBIN IRANI)

- (a)  to (e) The Government provides financial assistance and raw material to eligible Handicrafts/Textiles workers under various textiles schemes the details of which are given at Annexure .

The  Government  is  also  providing  financial  assistance  for  setting  up  Mega  clusters  to create world-class infrastructure to integrate the production chain by filling the gaps to fulfill the felt  needs  of  the  existing  clusters  and  to  increase  production/exports  and  to  generate employment opportunities in the textile industry. The details of the sanctioned/proposed mega clusters/Block Level Clusters is given below:

1. Under Comprehensive Handicrafts Cluster Development Scheme 9 mega Clusters have been sanctioned viz. Moradabad, Narsapur, J&K Srinagar Carpet, J&K other than carpet, Lucknow, Bareilly, Jodhpur, Mirzapur-Bhadohi, and Kutchh-Bhuj.
2. Under  National  Handloom  Development  Programme  and  Comprehensive  Handlooms Cluster  Development  Scheme,  412  Block  Level  Clusters  have  been  sanctioned  since 2015-16 to 2018-19 in different states viz. Arunchal Pradesh, Assam, Bihar, Jharkhand, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Sikkim, Tripura,  West Bengal, Chattisgarh, Gujarat, Madhya Pradesh, Maharashtra, Delhi, Haryana, Himachal Pradesh, Jammu  &  Kashmir,  Punjab,  Rajasthan,  Uttar  Pradesh,  Uttarakhand,  Andhra  Pradesh, Karnataka, Kerala, Tamil Nadu and Telangana.
3. 5  mega-clusters  have  been  sanctioned  under  Comprehensive  Powerloom  Cluster Development  Scheme(CPCDS)  at  following  clusters  viz.  Erode(Tamil  Nadu),  Bhilwara (Rajasthan), Ichalkaranji (Maharashtra), Surat(Gujarat), Solapur(Maharashtra):
4. Government has also decided to setup one Silk Mega Cluster at Mysore(Karnataka).

## Details of Schemes providing Financial Assistance/Incentives to Handicrafts/Textiles Workers

- i) Direct Benefit to Artisans Scheme :- This scheme provides financial assistance in the old age and social security to handicrafts artisans who are the recipient of Shilp Guru Award/ National Award/ Nation Merit  Certificate  hold/  State  Award  in  handicrafts  not  less  than  60  years  and their annual income should exceed to Rs.50,000/-. financial assistance of Rs. 3,500/- P.M. is given to Master Craftsperson in indigent circumstances.
2. ii) Margin money:Margin Money for the artisans availing Mudra Loan under Director Benefit to artisans component has been included during 2018-19 to ensure the availability of concessional credit to artisans.  20% of MUDRA loan amount will be given as Margin money in their loan amount not exceeding to Rs.10,000/-.
3. iii) Comprehensive Handicrafts Cluster Development Scheme(CHCDS):Under this scheme, the  artisans/exporters/Manufacturers  are  provided  good  quality  raw  material  at  subsidized rates(lower than market price) to enhance their competitiveness globally and under Infrastructure  and  Technology  Support  Scheme  raw  material  is  provided  to  artisans  at  a subsidized rates 8-10 % less than market rates.
4. iv) Amended Technology Up-gradation Fund Scheme (ATUFS): The amended Scheme was launched in January 2016 with an outlay of Rs 17822 Crores for technology upgradation of textiles industry  with one time capital subsidy for eligible machinery.  The scheme has been designed  to  mobilize  new  investment  of  about  Rs  95  000  cr  and  employment  for  35  lakh persons by the year 2022.
- v) Scheme for Integrated Textile Park (SITP): This  scheme is implemented in Public Private Partnership  mode  to  attract  private  investments  in  developing  new  clusters  of  textiles manufacturing.  Government  of  India  provides  financial  assistance  up  to  40%  of  the  project within a ceiling of Rs 40 crores.
6. vi) PowerTex India: A comprehensive scheme for development of Powerloom sector has been launched  w.e.f  01.04.2017  to  31.03.2020  with  components  like  Insitu-upgradation  of  plain Powerlooms, Group Work Shed Scheme, Yarn Bank Scheme, Common Facility Centre (CFC), Solar Energy Scheme, Pradhan Mantri Credit Scheme, etc.
7. vii) Incentive Scheme for Acquisition of Plant & Machinery (ISAPM): The ISAPM scheme has been launched in 2013 with an incentive @20% of the cost of machineries to Jute mills and 30% to the MSME -Jute Diversified Product (JDP) units During 2014-15 to 2018-19, capital subsidy amounting to Rs. 4971.19 lakhs to jute mills and JDP units has been released.
8. viii) National  Handloom  Development  Programme(NHDP): These  programmes  aim  at  holistic development of handloom and handicrafts clusters through integrated approach. The strategic interventions under the programme include financial assistance for new upgraded looms and accessories,  design  innovation,  product  and  infrastructure  development,  skill  upgradation, training, setting up of Mega clusters for increasing manufacturing and exports, easy access to working capital through customized Mudra loans for weavers and direct marketing support to weavers.
9. ix) 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.
- x) 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.
11. xi) 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.
12. xii) Handloom 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).
13. xiii)
14. Yarn Supply Scheme:

Yarn Supply Scheme is being implemented throughout the country to make available all types of  yarn  at  Mill  Gate  Price.  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 and woollen yarn with quantity caps.

- xiv) HATHKARGHA  SAMVARDHAN  SAHAYATA  (HSS): This  scheme  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.

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