Lok Sabha Question No. 343 (UNSTARRED), answered on 2016-02-25
Subject: Financial Assistance to Handloom Industries
Ministry: TEXTILES
Asked by: NEELAM SONKER

## LOK SABHA UNSTARRED QUESTION NO.343 TO BE ANSWERED ON 25.02.2016

## FINANCIAL ASSISTANCE TO HANDLOOM INDUSTRIES

## 343.      SHRIMATI NEELAM SONKER:

## Will the Minister of TEXTILES वस्त्र मंरी

be pleased to state:

- (a) the financial assistance provided by the  Government to handloom industries in the interest of weavers during each of the last three years and the current year, State-wise;
- (b) whether the Government provides yarn to the weavers under the Mill Gate Price Scheme(MGPS) being run in the interest of the weavers; and
- (c) if so, the measures taken by the Government to strengthen this scheme and make it more effective?

## उत्तर

## ANSWER

## वस्त्र राज  ् य मंरी ( स्त्वतंर प्रभार ) ( श्री संतोष कु मार गंगवार )

## MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF TEXTILES (SHRI SANTOSH KUMAR GANGWAR)

(a): The details of fund released during the last three year (2012-13 to 2014-15) and the current year 2015-16 (upto  22 nd February,  2016)  is  annexed.    For  many  components,  funds  are  released  to  Implementing  Agencies directly.

(b) & (c) The  erstwhile  Mill  Gate  Price  Scheme  (MGPS)  has  been  renamed  as  Yarn  Supply  Scheme (YSS) for implementation during the XII Plan period.  The scheme is implementing throughout the country to make available all types of yarn at Mill Gate Price to the eligible handloom weavers so as to facilitate regular supply of basic raw materials to the handloom sector and help utilize the full employment potential of the sector. The scheme is being implemented through National Handloom Development Corporation, Lucknow.  Under the scheme the freight is reimbursed and depot operating charges @2% is given to depot operating agencies. Quantity and Value of Yarn supplied under this scheme since XII plan (2012-13) is given in the following statement:

| Year                    |   Qty. (In lakh kgs) |   Value (Rs. In lakh) |
|-------------------------|----------------------|-----------------------|
| 2012-13                 |              1070.78 |                131856 |
| 2013-14                 |              1262.09 |                178846 |
| 2014-15                 |              1484.3  |                216078 |
| 2015-16 (upto Jan., 16) |              1228.81 |                165325 |

Further, to provide the subsidized yarn only to handloom weavers in order to compete with powerloom and  mill  sector,  a  component  of 10%  price  subsidy  on  hank  yarn also  exist  under  which  10%  subsidy  is applicable  on  Cotton,  Domestic  silk  and  woollen  yarn  with  quantity  limitation.    Quantity  and  Value  of  Yarn supplied under this component of the scheme since XII plan (2012-13) is given in the following statement:

| Year                    |   Qty. (In lakh kgs) |   Value (Rs. In lakh) |
|-------------------------|----------------------|-----------------------|
| 2012-13                 |               125    |               27153.7 |
| 2013-14                 |               222.79 |               69562.7 |
| 2014-15                 |               286.34 |              102684   |
| 2015-16 (upto Jan., 16) |               183.69 |               63178   |

NHDC has opened 10 yarn depots-cum-warehouses in 12 th plan  so  as  to  ensure  timely  supplies  to  the users on cash basis, besides taking care of individual weavers who need yarn in small quantity.  Location of these warehouses are Sitapur &  Moradabad (UP), Guwahati (Assam), Samudragarh (West Bengal), Kannur (Kerala), Chirala  &  Karimnagar  (Andhra  Pradesh),  Agartala  (Tripura),  Bhubneshwara  (Odisha)  and  Ranchi/Godda (Jharkhand).

Since, the scheme  is implemented  through NHDC,  Lucknow,  no  funds  are  released to State Governments.  Funds are released in favour of NHDC to further pass it on to the beneficiaries.  Financial Assistant released to NHDC under this scheme during last three year and current financial year is as under:

|   S.NO. | Year                    |   Amount Released (Rs. In Crore) |
|---------|-------------------------|----------------------------------|
|       1 | 2012-13                 |                           122.91 |
|       2 | 2013-14                 |                            96.86 |
|       3 | 2014-15                 |                           127.81 |
|       4 | 2015-16(upto 15.2.2016) |                           273.68 |

## ANNEXURE

The State-wise detail of funds released during the last three years (2012-13, 2013-14 & 2014-15) and the current year i.e. 2015-16 (As on 22.02.2016)

## (Rs. in crore)

|       |                   | 2012-13       | 2013-14       | 2014-15       | 2015-16 (As on 22.02.2016)   |
|-------|-------------------|---------------|---------------|---------------|------------------------------|
| S.No. | Name of State(s)  | Fund released | Fund released | Fund released | Fund released                |
| 1.    | Andhra Pradesh    | 9.81          | 5.55          | 1.51          | 1.97                         |
| 2.    | Arunachal Pradesh | 1.25          | 1.32          | 0.35          | 0.98                         |
| 3.    | Assam             | 15.31         | 20.07         | 4.96          | 6.70                         |
| 4.    | Bihar             | 0.43          | 0.04          | 0.24          | 0.41                         |
| 5.    | Chhattisgarh      | 2.25          | 1.78          | 0.51          | 3.79                         |
| 6.    | Delhi             | 0.26          | 0.00          | 0.04          | 0.04                         |
| 7.    | Goa               | 0.00          | 0.00          | 0.00          | -                            |
| 8.    | Gujarat           | 1.36          | 0.50          | 0.53          | -                            |
| 9.    | Haryana           | 0.05          | 0.10          | 0.31          | -                            |
| 10.   | Himachal Pradesh  | 2.20          | 0.55          | 0.18          | 0,52                         |
| 11.   | J&K               | 1.44          | 0.56          | 1.53          | 0.08                         |
| 12.   | Jharkhand         | 0.05          | 0.82          | 2.52          | -                            |
| 13.   | Karnataka         | 1.77          | 2.69          | 1.66          | 0.09                         |
| 14.   | Kerala            | 2.34          | 1.64          | 0.19          | 2.61                         |
| 15.   | Madhya Pradesh    | 4.75          | 0.85          | 0.83          | 0.24                         |
| 16.   | Maharashtra       | 2.65          | 2.20          | 1.68          | 0.39                         |
| 17.   | Manipur           | 5.09          | 10.80         | 2.41          | 2.96                         |
| 18.   | Meghalaya         | 0.92          | 1.16          | 0.37          | 1.81                         |
| 19.   | Mizoram           | 0.72          | 0.30          | 0.28          | 4.47                         |
| 20.   | Nagaland          | 6.40          | 3.89          | 2.65          | 3.22                         |
| 21.   | Orissa            | 7.51          | 2.94          | 0.66          | 3.73                         |
| 22.   | Pondicherry       | 0.00          | 0.00          | 0.00          | -                            |
| 23.   | Punjab            | 0.00          | 0.00          | 0.00          | -                            |
| 24.   | Rajasthan         | 0.60          | 0.85          | 0.57          | -                            |
| 25.   | Sikkim            | 0.69          | 0.72          | 0.60          | 1.90                         |
| 26.   | Tamil Nadu        | 32.86         | 32.64         | 10.17         | 47.09                        |
| 27.   | Telangana         | 0.00          | 0.00          | 0.84          | 1.53                         |
| 28.   | Tripura           | 4.89          | 2.63          | 3.47          | 2.44                         |
| 29.   | Uttar Pradesh     | 18.73         | 13.50         | 28.16         | 0.13                         |
| 30.   | Uttrakhand        | 0.90          | 0.57          | 0.71          | 1.22                         |
| 31.   | West Bengal       | 4.68          | 4.68          | 5.77          | 0.29                         |

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