Lok Sabha Question No. 1199 (UNSTARRED), answered on 2016-03-03
Subject: Concessions to Cooperative Societies
Ministry: TEXTILES
Asked by: ASHOK MAHADEORAO NETE

## CONCESSIONS TO COOPERATIVE SOCIETIES

## 1199.  SHRI ASHOK MAHADEORAO NETE:

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

- (a) the  number  of  representations  received  by  the  Union  Government  to  give  more concessions to cooperative societies and other organisations of handloom weavers in the country during the last three years and the current year;
- (b) the action taken by the Union Government thereon;
- (c) the details of concessions being provided at present to handloom weavers; and
- (d) the  total  number  of  handloom  weavers  from  backward  region  benefited  from  such concessions ?

## 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 Govt. of India had approved Revival, Reform and Restructuring (RRR) Package for Handloom Sector in November, 2011, to waive off the overdue loans of primary weavers cooperatives, other weavers organizations and individual weavers and to subsidized institutional credit. The RRR package aimed at waiving the overdue loans and interest (100% principal  and  25%  interest  to  be  borne  by  the  Government  of  India  and  75%  interest  and penal interest, if any, by the banks) to eligible handloom cooperative societies and individual weavers as on 31.3.2010, and providing of fresh credit with interest subsidy of 3% for 3 years with credit guarantee to the societies and weavers which are being benefitted under the RRR package.    The  representations/recommendations  seeking  more  concessions  and  relaxations under  RRR  package  were  received  afterwards  and  state-wise  details  thereof  is  given  at Annexure-I.

(b) to (d): Based  on  the  representations/recommendations  received  from  the  State Governments  including  Andhra  Pradesh,  Tamil  Nadu,  Kerala,  Himachal  Pradesh,  Bihar, Odisha,  Karnataka,  Uttar  Pradesh,  West  Bengal,  Uttrakhand  and  Maharashtra,  particularly relaxation  of  eligibility  norms  for  potentially  viable  societies  a  revised  proposal  of  RRR package was formulated and referred to the competent authority for approval.  Government on 27.09.2013, approved the modifications proposed by the Ministry of Textiles in the form of Modified RRR package, as under:-

- (i) To  interpret  the  condition  of  eligibility  regarding  net  worth  as  'a  society  will  be considered as potentially viable, if its net worth becomes positive after loan waiver and recapitalization.
- (ii) The earlier criteria that 'society should not be incurring operating losses in more than 4  out of 5 years' modified as 'society should have earned operating profit in at least 1 out of 5 years and operating profit means 'gross profit before depreciation, interest and tax' for the purpose of assessing the viability norms.
- (iii) The condition that working capital/CC limit should be rotated at least once in a year shall not be applicable where a society has not availed a loan from bank.
- (iv) To  limit  the  waiver  amount  of  overdue  loan  and  recapitalization  assistance  as  on 31.3.2010 for apex, PWC societies and individual weavers not covered, so far, under the  RRR  package,  while  permitting  the  assessment  of  the  same  on  the  basis  of statutory audit report upto 2011-12.
- (v) The statutory  audit  of  apex  and  PWC  societies  would  be  completed  up  to  2011-12 (instead of 2009-10 as specified in the earlier guidelines) and eligibility of cooperative societies would be decided on the basis of statutory audit report upto 2011-12 instead of 2009-10.
- (vi)        To  provide    term  loans  and  working  capital  loans    at  the  interest  rate  of  6%  to handloom sector;    the  quantum  of  interest  subsidy  to  be  borne  by  the  GOI  will  be limited to the difference between the actual rate of interest as applicable /charged by the  Banks  and  6%  interest  to  be    borne  by  the  borrower.  The  maximum  interest subvention would be capped at 7%.
- (vii)    Margin money assistance @ Rs.10,000/- per weaver to individual weaver, their selfhelp groups and joint liability groups.
- (viii)    Credit  guarantee  for  3  years  by  Credit  Guarantee  Trust  fund  for  Micro  and  Small Enterprises (CGTMSE) for which the required guarantee fee and annual service fee will be paid by the GoI.
- (ix)      Incentive to banks to engage Bunkar Facilitator @ 0.5% of loan amount disbursed subject to     minimum of Rs. 200 and maximum of Rs. 2000 per WCC.

The coverage of beneficiaries  have  been  completed  on  28.02.2014.      A  total  of  39 Apex  Weavers  Coop.  Societies,  9642  Primary  Weavers  Coop.  Societies,  6310  Self  Help Groups  (SHGs)  and  54226  individual  weavers  have  been  benefitted  of  the  scheme  from across the country (including from backward  region), with financial implication of Rs.1089.90 crore.  Apart from the above, loan is provided at 6% interest by way of interest subvention, under the Concessional Credit Component of National Handloom Development Programme. However, the Government of India interest subvention is capped at 7%.   Status of  Weavers  Credit  Card  (WCC)  and the  amount  sanctioned/disbursed  during  the  last  three years is as under:-

## (Amount  in lakh)

|   S.N. | Particulars            | 2012-13   | 2013-14   | 2014-15   | 2015-16 (till 26.2.16)   |
|--------|------------------------|-----------|-----------|-----------|--------------------------|
|      1 | Nos. ofWCC issued      | 53,629    | 71,643    | 79,210    | 36,095                   |
|      2 | Loan amount sanctioned | 17140.96  | 19428.80  | 23353.15  | 10901.89                 |
|      3 | Loan amount disbursed  | 7983.13   | 14679.51  | 10068.80  | 7127.54                  |

## State-wise details of the representations/recommendations received seeking

## more concessions and relaxations under RRR package

| S.N.   | Name of State    | 2011-12   | 2012-13   |
|--------|------------------|-----------|-----------|
| 1.     | Andhra Pradesh   | -         | 3         |
| 2.     | Assam            | -         | 2         |
| 3.     | Bihar            | -         | 1         |
| 4.     | Himachal Pradesh | -         | 3         |
| 5.     | Kerala           | -         | 10        |
| 6.     | Karnataka        | -         | 2         |
| 7.     | Maharashtra      | 2         | 3         |
| 8.     | Manipur          | -         | 2         |
| 9.     | Odisha           | -         | 3         |
| 10.    | Pudduchery       | -         | 2         |
| 11.    | Rajasthan        | 1         | 3         |
| 12.    | Tamil Nadu       | -         | 2         |
| 13.    | Uttrakhand       | -         | 2         |
| 14.    | Uttar Pradesh    | -         | 3         |
| 15.    | West Bengal      | 1         | -         |
|        | TOTAL            | 04        | 41        |

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