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annual report 2011-12<br />

Annual Report<br />

(2011-12)<br />

<strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong><br />

Government <strong>of</strong> India<br />

i


ii<br />

ministry <strong>of</strong> <strong>textiles</strong>


annual report 2011-12<br />

CONTENTS<br />

Sl.No. Chapter<br />

Page<br />

I Highlights 1<br />

Ii Functions and Organizational Set-Up 23<br />

Iii The Organized <strong>Textiles</strong> Mill Industry 33<br />

Iv Exports 49<br />

V Cotton 57<br />

Vi The Jute and Jute <strong>Textiles</strong> Industry 63<br />

Vii Sericulture & Silk Industry 85<br />

Viii Wool & Wollen <strong>Textiles</strong> Industry 99<br />

Ix Decentralised Powerloom Sector 105<br />

X Handlooms 113<br />

Xi Handicrafts 139<br />

Xii Central Public Sector Undertakings 165<br />

Xiii <strong>Textiles</strong> Research Associations 191<br />

Xiv Citizens’/Client’s Charter 219<br />

Xv Welfare <strong>of</strong> Scheduled Castes, Scheduled Tribes and Women 229<br />

Xvi <strong>Textiles</strong> in North Eastern Region 233<br />

XVII Human Resource Development 245<br />

XviIi Gender Justice 255<br />

XIX Information and Communication Technology in <strong>Textiles</strong> 259<br />

Xx Vigilance Activities 263<br />

XxI Observations <strong>of</strong> the Comptroller and Auditor General <strong>of</strong> India 267<br />

XxiI Persons with Disabilities 271<br />

XXIII Results Framework Document (RFD) (2011-2012) 275<br />

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iv<br />

ministry <strong>of</strong> <strong>textiles</strong>


annual report 2011-12<br />

CHAPTER I<br />

HIGHLIGHTS<br />

1


2<br />

ministry <strong>of</strong> <strong>textiles</strong>


annual report 2011-12<br />

CHAPTER I<br />

HIGHLIGHTS<br />

The Union Minister for Commerce & Industry and <strong>Textiles</strong>, Shri Anand Sharma releasing conference<br />

papers at the 1st International Conference on Technical <strong>Textiles</strong> – TECHNOTEX 2011, in Mumbai on<br />

August 25, 2011. The Chief Minister Maharashtra, Shri Prithviraj Chavan and the Secretary, <strong>Ministry</strong><br />

<strong>of</strong> <strong>Textiles</strong>, Ms. Rita Menon are also seen.<br />

The Indian <strong>Textiles</strong> Industry has<br />

an overwhelming presence in the<br />

economic life <strong>of</strong> the country. Apart<br />

from providing one <strong>of</strong> the basic necessities<br />

<strong>of</strong> life, the <strong>textiles</strong> <strong>industry</strong> also plays a<br />

pivotal role through its contribution to<br />

industrial output, employment generation,<br />

and the export earnings <strong>of</strong> the country.<br />

Currently, it contributes about 14% to<br />

industrial production, 4% to the GDP, and<br />

17% to the country’s export earnings.<br />

It provides direct employment to over<br />

35 million people, which includes a<br />

substantial number <strong>of</strong> SC/ST, and women.<br />

The <strong>Textiles</strong> sector is the second largest<br />

provider <strong>of</strong> employment after agriculture.<br />

Thus, the growth and all round development<br />

<strong>of</strong> this <strong>industry</strong> has a direct bearing on the<br />

improvement <strong>of</strong> the economy <strong>of</strong> the nation.<br />

The Indian <strong>textiles</strong> <strong>industry</strong> is extremely<br />

varied, with the hand-spun and handwoven<br />

sector at one end <strong>of</strong> the spectrum, and<br />

the capital intensive, sophisticated mill<br />

sector at the other. The decentralized<br />

powerlooms / hosiery and knitting sector<br />

form the largest section <strong>of</strong> the <strong>Textiles</strong><br />

Sector. The close linkage <strong>of</strong> the Industry<br />

to agriculture and the ancient culture, and<br />

traditions <strong>of</strong> the country make the Indian<br />

<strong>textiles</strong> sector unique in comparison with<br />

the <strong>textiles</strong> <strong>industry</strong> <strong>of</strong> other countries.<br />

This also provides the <strong>industry</strong> with the<br />

capacity to produce a variety <strong>of</strong> products<br />

suitable to the different market segments,<br />

both within and outside the country.<br />

The major sub-sectors that comprise<br />

the <strong>textiles</strong> sector include the organized<br />

Cotton/Man-Made Fibre <strong>Textiles</strong> Mill<br />

Industry, the Man-Made Fibre / Filament<br />

Yarn Industry, the Wool and Woollen<br />

<strong>Textiles</strong> Industry, the Sericulture and Silk<br />

<strong>Textiles</strong> Industry, Handlooms, Handicrafts,<br />

the Jute and Jute <strong>Textiles</strong> Industry, and<br />

<strong>Textiles</strong> Exports.<br />

3


ministry <strong>of</strong> <strong>textiles</strong><br />

Implementation <strong>of</strong> Plan Schemes-<br />

Physical and Financial Performance.<br />

The <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong> has taken various<br />

policy initiatives in the last few years to<br />

improve the competitiveness <strong>of</strong> the Indian<br />

Textile <strong>industry</strong>. Various schemes such as<br />

Technology Upgradation Fund Scheme<br />

(TUFS), Scheme for Integrated Textile<br />

Parks, Development <strong>of</strong> Mega Cluster,<br />

Integrated Skill Development Scheme,<br />

Technology Mission <strong>of</strong> Technical <strong>Textiles</strong><br />

etc. have been launched with the objective<br />

<strong>of</strong> accelerating growth in exports and<br />

investment in the textile sector. The major<br />

indicators <strong>of</strong> textile sector performance<br />

during 2011 – 12 are the following:<br />

The year witnessed a significant slowdown<br />

in <strong>textiles</strong> production due to a combination<br />

<strong>of</strong> factors such as slowdown in demand,<br />

high raw material prices, piling up <strong>of</strong><br />

stocks etc. During April – November, 2011<br />

man-made fibre production and filament<br />

yarn production recorded a decrease <strong>of</strong><br />

about 2% and 7% respectively. Cotton<br />

yarn production also decreased by 13%<br />

during the period. However blended and<br />

100% non-cotton yarn production has<br />

increased by 5% during the year April-<br />

Nov. 2011. Cloth production by mill sector<br />

increased by 2% during the period. During<br />

April- Nov., 2011, production by handloom<br />

increased by 3%, powerloom and hosiery<br />

sectors decreased 4%, 16% respectively.<br />

On export promotion, the <strong>Ministry</strong> <strong>of</strong><br />

Commerce & Industry has notified that<br />

the export <strong>of</strong> cotton waste including yarn<br />

waste & garneted stock (ITC code 5202)<br />

will continue to be free with effect from 1 st<br />

Oct., 2011 and the registration <strong>of</strong> export<br />

contracts with DGFT is not required. The<br />

<strong>Ministry</strong> has also embarked on a Plan<br />

Scheme namely the Common Compliance<br />

Code to prepare and orient the Indian<br />

Garment & Apparel Industry towards more<br />

socially and environmentally compliant<br />

Industrial environment <strong>of</strong> globally<br />

acceptable standard. The first installment<br />

/grant-in-aid for the scheme amounting to<br />

Rs 3.5 cr. was released to the AEPC on<br />

28.10.11.<br />

During November 2011, provisional<br />

export <strong>of</strong> handmade carpets & other<br />

floor coverings has shown increase <strong>of</strong><br />

62.76 % in rupee terms and 44.19 % in<br />

US $ terms as compared to November<br />

2010. The Export <strong>of</strong> other handicrafts<br />

items increased by 26.77 % in rupee<br />

terms and by 12.31 % in US $ terms<br />

during November, 2011 as compared to<br />

November 2010. The total provisional<br />

export <strong>of</strong> handicrafts including hand<br />

knotted carpet during November, 2011<br />

is estimated at Rs. 674.74 crores (US $<br />

132.85 millions), whereas the export in<br />

November 2010 was <strong>of</strong> Rs 480.66 crores<br />

(US $ 106.82 millions), thus showing an<br />

increase <strong>of</strong> 24.36 % in rupee terms and<br />

40.37 % in US $ terms.<br />

Plan Allocations (2010-11 and 2011-12)<br />

The total approved outlay for 2010-11<br />

and 2011-12 were Rs.4725.00 crore<br />

and Rs.5000.00 crore respectively. The<br />

total Plan outlay has been allocated for<br />

implementation <strong>of</strong> various schemes under<br />

Village & Small Enterprises (VSE) sector<br />

and Industry Sector.<br />

Village & Small Enterprises (VSE)<br />

Sector<br />

Village & Small Enterprises (VSE)<br />

sector includes Handlooms, Handicrafts,<br />

Sericulture, Powerlooms, Wool &<br />

Woolens and Development <strong>of</strong> Mega<br />

Cluster. The total plan allocation under<br />

this sector during 2010-11 and 2011-12<br />

were Rs.1210.00 crore and Rs.1165.00<br />

crore against which expenditure was<br />

Rs.917.21 crore (75.80% over BE) and<br />

Rs.541.56 crore (46.49% over BE) (as<br />

on 30.12.2011) respectively.<br />

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annual report 2011-12<br />

Industry Sector<br />

Under <strong>industry</strong> sector 16 schemes<br />

have been sanctioned. The total plan<br />

allocation under this sector during 2010-<br />

11 and 2011-12 were Rs.3284.50 crore<br />

and Rs.3835.00 crore against which<br />

expenditure was Rs.3265.56 crore<br />

(99.42% over BE) and Rs.2354.91 crore<br />

(61.41% over BE) (as on 30.12.2011)<br />

respectively. The major allocation<br />

during 2010-11 and 2011-12 was under<br />

Technology Upgradation Fund Scheme<br />

(TUFS); the allocation being Rs.2267.50<br />

crore and Rs.3100.00 crore respectively.<br />

The allocation for 2010-11 and 2011-<br />

12 under Scheme for Integrated<br />

Textile Parks (SITP), National Institute<br />

<strong>of</strong> Fashion Technology (NIFT), Jute<br />

Technology Mission were Rs.350.00<br />

crore & Rs.347.00 crore, Rs.210.00 crore<br />

& Rs.128.00 crore and Rs.72.00 crore &<br />

Rs.54.00 crore respectively.<br />

ORGANISED COTTON/ MAN-MADE<br />

FIBRE TEXTILE INDUSTRY<br />

The Cotton / Man-made fibre textile<br />

<strong>industry</strong> is the largest organized <strong>industry</strong><br />

in the country in terms <strong>of</strong> employment<br />

(nearly 1 million workers) and number <strong>of</strong><br />

units. Besides, there are a large number<br />

<strong>of</strong> subsidiary industries dependent on<br />

this sector, such as those manufacturing<br />

machinery, accessories, stores, ancillaries,<br />

dyes & chemicals. As on 30.11.2011,<br />

there were 1946 cotton/man-made fibre<br />

textile mills (non-SSI) in the country with an<br />

installed capacity <strong>of</strong> 43.13 million spindles<br />

5,20,000 rotors and 52,000 looms.<br />

Textile production covering man-made<br />

fibre, man-made filament yarn and<br />

cotton yarn is showing a decreasing<br />

trend. Blended and 100% non cotton<br />

yarn production recorded an increase<br />

<strong>of</strong> 5.2% during 2011-12 (April – October<br />

2011). The production <strong>of</strong> spun yarn<br />

during April-Oct. (2011-12) has shown<br />

a decrease <strong>of</strong> 8.1%. The production <strong>of</strong><br />

cotton yarn during 2011-12 (April-Oct.<br />

2011) recorded a decrease <strong>of</strong> 12.7%<br />

(Provisional).<br />

Cloth production by mill sector showed<br />

marginal increase <strong>of</strong> 4.6% during April-Oct.<br />

(2011-12) (provisional). During the same<br />

period cloth production by power loom<br />

and hosiery sector showed a decrease <strong>of</strong><br />

4.4% and 17.8% respectively. However<br />

the cloth production in handloom sector<br />

showed an increase <strong>of</strong> 3%.<br />

TECHNOLOGY UPGRADATION<br />

FUND SCHEME (TUFS)<br />

The Technology Upgradation Fund<br />

Scheme (TUFS) was launched on 01.04<br />

1999, for a period <strong>of</strong> five years, and was<br />

subsequently extended upto March 31,<br />

2007. The Scheme provides for interest<br />

reimbursement/capital subsidy/Margin<br />

Money subsidy and has been devised<br />

to bridge the gap between the cost <strong>of</strong><br />

interest and the capital component to<br />

ease up the working capital requirement<br />

and to reduce the transaction cost, etc.<br />

The Scheme is an important tool to infuse<br />

financial support to the <strong>textiles</strong> <strong>industry</strong><br />

and help it capitalize on the vibrant and<br />

expanding global and domestic markets,<br />

through technology upgradation, cost<br />

effectiveness, quality production,<br />

efficiency and global competitiveness.<br />

During its initial years, the progress <strong>of</strong><br />

the Scheme was moderate and it gained<br />

momentum from 2004-05 onwards. The<br />

Scheme has been further extended<br />

till 2012 with modified financial and<br />

operational parameters which focus<br />

on additional capacity building, better<br />

adoption <strong>of</strong> technology, and provides for<br />

a higher level <strong>of</strong> assistance to segments<br />

that have a larger potential for growth,<br />

5


ministry <strong>of</strong> <strong>textiles</strong><br />

like garmenting, technical <strong>textiles</strong>, and<br />

processing. The scheme is administered<br />

through 3 nodal agencies, 36 nodal banks<br />

and 108 co-opted PLIs. The scheme<br />

since inception has propelled investment<br />

<strong>of</strong> more than Rs. 2,10,000 crores. An<br />

amount <strong>of</strong> Rs. 13637.53 crore has been<br />

released towards subsidy under the<br />

Scheme as on 31.10.2011.<br />

With effect from 28.04.2011, Restructured<br />

TUFS has been approved with the<br />

enhanced 11 th Plan allocation under TUFS<br />

from Rs. 8000 crore to Rs. 15,404 crore.<br />

The Restructured TUFS ensure focus <strong>of</strong><br />

interventions on hitherto slow growing<br />

sectors like weaving, encouragement<br />

to forward integration and tighter<br />

administrative controls and monitoring <strong>of</strong><br />

the scheme. The Restructured TUFS is<br />

expected to trigger additional investments<br />

<strong>of</strong> over Rs. 46,900 crore during the<br />

balance period <strong>of</strong> the XI th Five Year Plan.<br />

Progress <strong>of</strong> TUFS<br />

The progress <strong>of</strong> TUFS is steadily going<br />

up which is evident from the data given<br />

at table 1.1.<br />

TEXTILE WORKERS’ REHABILITATION<br />

FUND SCHEME (TWRFS)<br />

The Textile Workers’ Rehabilitation Fund<br />

Scheme came into force with effect from<br />

15.09.1986 with the objective to provide<br />

interim relief to textile workers rendered<br />

unemployed as a consequence <strong>of</strong><br />

permanent closure <strong>of</strong> any particular portion<br />

or entire textile unit. Assistance under the<br />

Scheme is payable to eligible workers only<br />

for the purpose <strong>of</strong> enabling them to settle in<br />

another employment. Such assistance is not<br />

heritable, transferable or capable <strong>of</strong> being<br />

attached on account <strong>of</strong> any other liabilities<br />

<strong>of</strong> the worker. The worker’s eligibility<br />

shall cease if he takes up employment in<br />

Table 1.1<br />

Progress <strong>of</strong> TUFS<br />

(Rs. in crore)<br />

Period Received Sanctioned Disbursed<br />

No. <strong>of</strong><br />

applications<br />

Project<br />

Cost<br />

No. <strong>of</strong><br />

applications<br />

Project<br />

Cost<br />

Amount<br />

No. <strong>of</strong><br />

applications<br />

Amount<br />

Subsidy<br />

1999-2000 407 5771 309 5074 2421 179 746 1<br />

2000-2001 719 6296 616 4380 2090 494 1863 70<br />

2001-2002 472 1900 444 1320 630 401 804 198.89<br />

2002-2003 494 1835 456 1438 839 411 931 202.59<br />

2003-2004 867 3356 884 3289 1341 814 856 249.06<br />

2004-2005 986 7941 986 7349 2990 801 1757 283.60<br />

2005-2006 1086 16194 1078 15032 6776 993 3962 485<br />

2006-2007 12336 61063 12589 66233 29073 13168 26605 823.92<br />

2007-2008 2408 21254 2260 19917 8058 2207 6854 1143.37<br />

2008-2009 6113 56542 6072 55707 24007 6111 21826 2632.00<br />

(P)<br />

2009-2010 2384 28005 2352 27611 6612 2361 8140 2886<br />

2010-2011 256 397 256 397 254 240 282 2784.18<br />

As on<br />

30.06.2010(P)<br />

28528 210554 28302 207747 85091 28180 74627 11759.61<br />

6


annual report 2011-12<br />

another registered or licensed undertaking.<br />

The rehabilitation assistance will not be<br />

curtailed if the worker fixes himself in a selfemployment<br />

venture.<br />

Progress<br />

Till 30.11.2011, 1,12,868 workers out <strong>of</strong><br />

1,43,532 workers on the rolls <strong>of</strong> 86 mills<br />

had been disbursed relief <strong>of</strong> `300.94<br />

crore. The State-wise cumulative position<br />

is given at table 1.2.<br />

MEGA CLUSTER<br />

The schemes for mega cluster<br />

support weavers/artisans, both in and<br />

outside the cooperative fold, including<br />

those in Self Help Groups (SHGs),<br />

Non- Governmental Organisations (NGOs)<br />

etc. The schemes provide for development<br />

<strong>of</strong> all the facets <strong>of</strong> selected clusters like<br />

raw material support, design inputs,<br />

up-gradation <strong>of</strong> technology, infrastructure<br />

development, marketing support, welfare<br />

<strong>of</strong> weavers etc. A convergence <strong>of</strong> the<br />

existing development interventions <strong>of</strong><br />

the <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong> & other Ministries/<br />

Departments will be affected in these<br />

clusters. The schemes also raise living<br />

standards <strong>of</strong> the weavers/artisans by<br />

improving the infrastructure facilities,<br />

with better storage facilities, technology<br />

up-gradation in pre-loom/on-loom/postloom<br />

operations, weaving shed, skill<br />

up-gradation, design inputs, health<br />

facilities etc.<br />

The development <strong>of</strong> 6 Mega Clusters in<br />

Handloom, Handicrafts and Powerlooms<br />

were first announced by the Finance<br />

Minister in his Budget Speech 2008-09.<br />

Consequently, following three Central<br />

Sector Plan Schemes were approved<br />

by the Cabinet Committee on Economic<br />

Affairs (CCEA) in the meeting held on<br />

20.11.2008:<br />

i) Comprehensive Powerloom Cluster<br />

Development Scheme<br />

ii)<br />

Comprehensive Handloom Cluster<br />

Development Scheme<br />

S.<br />

No<br />

State<br />

No. <strong>of</strong> mills<br />

identified<br />

Table 1.2<br />

No. <strong>of</strong><br />

workers<br />

on roll<br />

No. <strong>of</strong> workers benefited<br />

(as on 30.11.2011)<br />

No. <strong>of</strong><br />

mills<br />

Workers received<br />

relief<br />

Disbursed<br />

amount<br />

(` in crores)<br />

1 2 3 4 5a 5b 6<br />

1. Gujarat 43 80749 43 63649 159.63<br />

2. Maharashtra 6 9958 6 7893 23.21<br />

3. Madhya Pradesh 5 19800 5 18857 52.64<br />

4. Tamil Nadu 6 5685 6 4761 7.45<br />

5. Karnataka 10 10020 10 6025 22.00<br />

6. Delhi 1 5187 1 5170 11.93<br />

7. West Bengal 3 2072 3 2042 5.34<br />

8 Kerala 1 500 1 437 2.47<br />

9. Punjab 4 6685 4 2311 8.96<br />

10. Andhra Pradesh 7 2876 6 1723 7.31<br />

Total 86 143532 84 112868 300.94<br />

7


iii) Comprehensive Handicrafts Cluster<br />

Development Scheme<br />

Based on Budget Announcement made in<br />

2008-09, 2009-10 and 2010-11, 12 centres<br />

are being developed as mega cluster on<br />

a Public Private Partnership (PPP) model<br />

to scale up infrastructure and production<br />

in Handloom, Handicraft and Powerloom<br />

sectors, wherein Government contribution<br />

has been earmarked at maximum <strong>of</strong> Rs.70<br />

crore for each mega cluster. At present,<br />

following 12 centres are being developed<br />

as Mega Cluster as in table 1.3.<br />

SCHEME FOR INTEGRATED<br />

TEXTILE PARKS (SITP)<br />

Scheme for Integrated <strong>Textiles</strong> Parks<br />

was approved in the 10th Five Year Plan<br />

to provide the <strong>industry</strong> with world-class<br />

infrastructure facilities for setting up their<br />

textile units by merging the erstwhile<br />

‘Apparel Parks for Exports Scheme<br />

(APES)’ and ‘Textile Centre Infrastructure<br />

Development Scheme (TCIDS)’.<br />

Scope <strong>of</strong> the Scheme<br />

The scheme targets industrial clusters/<br />

locations with high growth potential,<br />

which require strategic interventions by<br />

way <strong>of</strong> providing world-class infrastructure<br />

support. The project cost covers the cost<br />

<strong>of</strong> common infrastructure and buildings for<br />

production/support activities, depending<br />

on the needs <strong>of</strong> the ITP. There will be<br />

flexibility in setting up ITPs to suit the local<br />

requirements.<br />

Table 1.3<br />

ministry <strong>of</strong> <strong>textiles</strong><br />

This scheme is implemented through<br />

Special Purpose Vehicles (SPVs),<br />

where Industry Associations/Group <strong>of</strong><br />

Entrepreneurs are the main promoters<br />

<strong>of</strong> the Integrated Textile Park (ITP). At<br />

each ITP, there would be a separate<br />

Special Purpose Vehicle (SPV) formed<br />

with the representatives <strong>of</strong> local Industry,<br />

Financial Institutions, State and Central<br />

Government. SPV shall invariably be<br />

a Corporate Body registered under the<br />

Companies Act. Any different structure<br />

for the SPV requires the approval <strong>of</strong> the<br />

Project Approval Committee. The SPVs<br />

shall have operational autonomy so that<br />

they do not become surrogate Public<br />

Sector Enterprises or be controlled by<br />

Central/State Governments.<br />

The components <strong>of</strong> an ITP are broadly<br />

divided in the following groups:-<br />

(a) Group A - Land.<br />

(b) Group B – Common Infrastructure<br />

like compound wall, roads,<br />

drainage, water supply, electricity<br />

supply including captive power<br />

plant, effluent treatment plant, and<br />

telecommunication lines etc.<br />

(c) Group C – Buildings for common<br />

facilities like testing laboratory, design<br />

center, training center, trade center/<br />

display center, ware housing facility/<br />

raw material depot, crèche, canteen,<br />

workers hostel, <strong>of</strong>fices <strong>of</strong> service<br />

providers, labour rest and recreation<br />

facilities etc.<br />

Handlooms:<br />

4 Mega Clusters<br />

1. Varanasi (U.P).<br />

2. Sivsagar (Assam).<br />

3. Murshidabad (W.B.).<br />

4. Virudhunagar (T.N)).<br />

Handicrafts:<br />

5 Mega Clusters<br />

5. Moradabad (U.P.)<br />

6. Narasapur (A.P.).<br />

7. Bhdohi-Mirzapur (U.P.).<br />

8. Srinagar (J&K).<br />

9. Jodhpur (Rajasthan)<br />

8<br />

Powerloom:<br />

3 Mega Clusters<br />

10. Bhiwandi (Maharastra).<br />

11. Erode (Tamil Nadu).<br />

12. Bhilwara (Rajasthan).


annual report 2011-12<br />

(d) Group D – Factory buildings for<br />

production purposes.<br />

(e) Group E- Plant & machinery.<br />

The total Project Cost for the purpose <strong>of</strong><br />

this Scheme includes the cost on account<br />

<strong>of</strong> components <strong>of</strong> ITP, as listed under<br />

Groups A, B, C and D above, provided the<br />

ownership <strong>of</strong> the factory buildings vests<br />

with the SPV. The SPV will, however, have<br />

the option <strong>of</strong> seeking financial support<br />

from Government <strong>of</strong> India for components<br />

under Groups B and C only, if factory<br />

buildings are individually owned.<br />

A panel <strong>of</strong> pr<strong>of</strong>essional agencies has<br />

been appointed as Project Management<br />

Consultants (PMCs) for implementing the<br />

Scheme.<br />

The PMCs will be responsible for the<br />

speedy implementation <strong>of</strong> the Projects in<br />

a transparent and pr<strong>of</strong>essional manner<br />

so as to achieve high degree <strong>of</strong> quality at<br />

a low cost acceptable to the members <strong>of</strong><br />

the SPV for which fee will be paid to the<br />

PMCs by the <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong>.<br />

The PMCs will report to <strong>Ministry</strong> <strong>of</strong><br />

<strong>Textiles</strong>, which shall directly supervise<br />

the implementation <strong>of</strong> projects under the<br />

superintendence and control <strong>of</strong> Secretary<br />

(<strong>Textiles</strong>). The project proposal as<br />

submitted by PMCs shall be considered<br />

and appraised by the Project Scrutiny<br />

Committee (PSC) headed by JS (SITP),<br />

<strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong>. Project Scrutiny<br />

Committee will appraise all the proposal<br />

submitted by PMCs in terms <strong>of</strong> the project<br />

components, viability, feasibility and time<br />

lines <strong>of</strong> each project. The Committee<br />

shall look into the utility <strong>of</strong> the projects in<br />

terms <strong>of</strong> modernization & integration <strong>of</strong><br />

supply and management chain, and make<br />

the final recommendations to Project<br />

Approval Committee (PAC). The Project<br />

Approval Committee will consider and<br />

approve the recommendations <strong>of</strong> Project<br />

Scrutiny Committee headed by Minister<br />

<strong>of</strong> <strong>Textiles</strong> with Secretary (<strong>Textiles</strong>), and<br />

JS, <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong> in charge <strong>of</strong> SITP<br />

as members.<br />

Funding Pattern<br />

The Government <strong>of</strong> India’s (GOI) support<br />

under the Scheme by way <strong>of</strong> Grant or<br />

Equity will be limited to 40% <strong>of</strong> the project<br />

cost subject to a ceiling <strong>of</strong> Rs. 40 crore.<br />

GOI support under the Scheme will be<br />

generally in the form <strong>of</strong> grant to the SPV<br />

unless specifically decided to be equity.<br />

However, the combined equity stake <strong>of</strong><br />

GOI/State Government/State Industrial<br />

Development Corporation, if any, should<br />

not exceed 49%.<br />

However, GOI support will be provided @<br />

90% <strong>of</strong> the project cost subject to a ceiling<br />

<strong>of</strong> Rs. 40 crore for first two projects in the<br />

States <strong>of</strong> Arunachal Pradesh, Assam,<br />

Manipur, Meghalaya, Mizoram, Nagaland,<br />

Tripura, Sikkim and Jammu & Kashmir.<br />

Status <strong>of</strong> Implementation<br />

TEXTILE CENTRE INFRASTRUCTURE<br />

DEVELOPMENT SCHEME (TCIDS):<br />

●<br />

●<br />

●<br />

●<br />

●<br />

18 Projects sanctioned<br />

GOI Share Rs.268.86 crores.<br />

Released Rs.210.59 crores<br />

Four Projects completed, Kannur-<br />

Kerala, Bhiwandi-Maharashtra, and<br />

Tirupur- Tamil Nadu, Pandesara-<br />

Surat.<br />

One project nearing completion i.e.<br />

SEWA-Gujarat<br />

APPAREL PARKS FOR EXPORTS<br />

SCHEME (APES)<br />

●<br />

12 Projects sanctioned<br />

9


●<br />

GOI Share Rs.185.22 crores.<br />

Future Programme<br />

ministry <strong>of</strong> <strong>textiles</strong><br />

●<br />

●<br />

●<br />

Released Rs.130.85 crores<br />

Four Projects completed – Bangalore-<br />

Karnataka, Thiruvananthapuram-<br />

Kerala, Tirupur-Tamil Nadu, and<br />

Tronica City-Uttar Pradesh<br />

One project <strong>of</strong> Kanpur – Uttar Pradesh<br />

nearing completion (Training centre<br />

component yet to be completed)<br />

Scheme for Integrated Textile Parks<br />

(SITP):<br />

●<br />

●<br />

●<br />

●<br />

As per the target, forty (40) <strong>Textiles</strong><br />

Park projects have been sanctioned.<br />

Estimated project cost (for common<br />

infrastructure and common facilities)<br />

<strong>of</strong> the 40 sanctioned projects is Rs.<br />

4133.09 Crore, <strong>of</strong> which Government<br />

<strong>of</strong> India assistance under the scheme<br />

would be Rs. 1419.69 Crore.<br />

An amount <strong>of</strong> Rs. 992.43 Crore has<br />

been released under SITP.<br />

2292 entrepreneurs will put up their<br />

units in these parks covering an<br />

area <strong>of</strong> 4307.97 Acre. The estimated<br />

investment in these parks will be Rs.<br />

19456.90 Crore and estimated annual<br />

production will be Rs. 33568.50<br />

Crore.<br />

● Andhra Pradesh (5), Gujarat (7),<br />

Maharashtra (9), Tamil Nadu (8),<br />

Rajasthan (5), Karnataka (1), Punjab<br />

(3), West Bengal (1), Madhya<br />

Pradesh (1).<br />

● Seven projects have been<br />

completed–Brandix & Pochampally-<br />

Andhra Pradesh, Gujarat Eco Textile<br />

Park & Mundra – Gujarat, Palladam<br />

Hi-Tech Weaving Park, Karur – Tamil<br />

Nadu and Islampur Integrated Textile<br />

Park, Maharashtra. Production has<br />

been started in 24 out <strong>of</strong> 40 projects.<br />

Considering the overwhelming response<br />

to the scheme and opportunities for<br />

growth <strong>of</strong> the <strong>textiles</strong> <strong>industry</strong> and in<br />

view <strong>of</strong> the consistent requests from<br />

State Governments, <strong>industry</strong> groups<br />

and entrepreneurs for setting up <strong>of</strong> new<br />

textile parks, a note was submitted by<br />

the <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong> for consideration<br />

<strong>of</strong> the Cabinet Committee on Economic<br />

Affairs for approval <strong>of</strong> more Textile<br />

Parks. The CCEA has approved the<br />

proposal for sanction <strong>of</strong> additional parks<br />

under SITP to utilize the balance Rs.<br />

200 Crore in the 11th Five Year Plan and<br />

number <strong>of</strong> projects be limited in such a<br />

way that committed liability <strong>of</strong> the new<br />

parks does not exceed Rs. 200 Crore<br />

in the 12th Five Year Plan. The CCEA<br />

also approved the revised guidelines<br />

enabling a two tier scrutiny and approval<br />

mechanism. The proposals received<br />

for new parks have been examined by<br />

the Project Scrutiny Committee (PSC)<br />

comprising representatives from <strong>Ministry</strong><br />

<strong>of</strong> Finance, Planning Commission,<br />

<strong>Ministry</strong> <strong>of</strong> Commerce & Industry, and<br />

<strong>Ministry</strong> <strong>of</strong> Environment & Forest. After<br />

examination by PSC, 21 new Textile<br />

Park proposals have been approved by<br />

the Project Approval Committee under<br />

the Chairmanship <strong>of</strong> Minister <strong>of</strong> <strong>Textiles</strong><br />

with Secretary (T) and JS concerned as<br />

members.<br />

INTEGRATED SKILL DEVELOPMENT<br />

SCHEME (ISDS)<br />

Objectives <strong>of</strong> the Integrated Skill<br />

development Scheme:<br />

1. To address the trained manpower<br />

needs <strong>of</strong> <strong>textiles</strong> and related<br />

segments by developing a cohesive<br />

and integrated framework <strong>of</strong> training<br />

based on the <strong>industry</strong> needs.<br />

Addressing this need is critical for<br />

10


annual report 2011-12<br />

Garmenting Training, ATDC, Patna<br />

enhancing the competitiveness <strong>of</strong> the<br />

<strong>industry</strong> in the globalised economy.<br />

2. To increase the employability <strong>of</strong><br />

residents <strong>of</strong> the target areas through<br />

imparting <strong>of</strong> skills in the above<br />

segments.<br />

3. To ensure that the scheme is so<br />

designed as to cater to the wide range <strong>of</strong><br />

skill sets required in various segments<br />

as listed above, while simultaneously<br />

ensuring sufficient flexibility to meet<br />

the dynamic needs <strong>of</strong> these segments<br />

over a period <strong>of</strong> the next five years.<br />

4. To create a trainers’ pool by conducting<br />

the advance training programmes at a<br />

cluster level.<br />

5. To ensure training in design<br />

development programmes, this<br />

is critical for handloom weavers/<br />

handicraft artisans/jute artisans,<br />

to help them produce diversified<br />

products with innovative uses and<br />

improved quality to meet changing<br />

market trends.<br />

Scope <strong>of</strong> the Scheme:<br />

The scheme proposes to leverage on the<br />

existing strong institutions and training<br />

experience within the <strong>Ministry</strong> under<br />

the Component I and ensures private<br />

sector participation through a PPP Model<br />

under Component II. Demand driven<br />

courses ranging from Basic Training,<br />

Skill upgradation, Advanced Training<br />

in emerging technologies, Training <strong>of</strong><br />

Trainers, orientation towards modern<br />

technology, retraining, skill upgradation,<br />

managerial skill, entrepreneurship<br />

development etc. in sectors such as<br />

Apparel/ garmenting, powerlooms,<br />

Handicrafts, Handlooms, Sericulture, Jute,<br />

11


ministry <strong>of</strong> <strong>textiles</strong><br />

Technical <strong>Textiles</strong> etc. are allowed under<br />

the Scheme. The Scheme targets to train<br />

approximately 26.75 lakh persons over a<br />

period <strong>of</strong> 5 years.<br />

Funding pattern:<br />

The Govt. provides assistance to the extent<br />

<strong>of</strong> 75% <strong>of</strong> the total cost <strong>of</strong> the project, and<br />

balance 25% is envisaged to be met from<br />

Fee/ Industry Contribution. However, the<br />

Empowered Committee is authorized to<br />

approve a higher level <strong>of</strong> government<br />

assistance in courses/ programmes (<strong>of</strong><br />

Component – I) where it is not feasible to<br />

organise the beneficiary contribution. The<br />

average grant per trainee is estimated as<br />

Rs. 7300/-<br />

Progress <strong>of</strong> Implementation<br />

Component I:<br />

Under the Component I <strong>of</strong> ISDS, 18<br />

proposals have been approved so far.<br />

The implementing agencies are the<br />

Textile Research Associations, Apparel<br />

& Textile Design Centres, Institutions<br />

under DC Handicrafts, DC Handlooms,<br />

<strong>Textiles</strong> Committee and Office <strong>of</strong> <strong>Textiles</strong><br />

Commissioner, Central Silk Board etc. The<br />

proposals cover all the sub sectors under<br />

<strong>Textiles</strong>. The projects are proposed to be<br />

implemented in 17 States namely Andhra<br />

Pradesh, Assam, Bihar, Chattisgarh,<br />

Gujarat, Jammu & Kashmir, Jharkhand,<br />

Karnataka, Madhya Pradesh, Maharashtra,<br />

Orissa, Punjab, Rajasthan, Tamil Nadu,<br />

Uttar Pradesh and West Bengal.<br />

A total <strong>of</strong> 437177 candidates are proposed<br />

to be covered under the Scheme over a<br />

period <strong>of</strong> five years out <strong>of</strong> which the first<br />

year target is 54495. In the first year <strong>of</strong><br />

implementation 20269 trainees have<br />

been enrolled by the agencies and 14552<br />

trainees have passed out. The total cost<br />

<strong>of</strong> the approved projects is Rs. 434.84<br />

Cr, out <strong>of</strong> which Rs. 323.15 is the grant<br />

assistance under the Scheme.<br />

A special dispensation has been allowed<br />

by the Empowered Committee to projects<br />

covering North Eastern and special category<br />

States. Special dispensation has also been<br />

extended to projects in unorganized sectors<br />

proposing to cover marginalized and weaker<br />

sections <strong>of</strong> the society, who find it difficult<br />

to forego their daily wages and pay for the<br />

training programme.<br />

The proposed courses are demand driven<br />

and the curriculum has been designed<br />

keeping the <strong>industry</strong> requirement in mind.<br />

An online MIS www.isds-mot.com has<br />

been designed to capture the progress<br />

<strong>of</strong> the projects. A skills exchange is also<br />

envisaged under the scheme to bridge<br />

the demand and supply gap for trained<br />

manpower in the <strong>textiles</strong> <strong>industry</strong> and<br />

also to provide placement linkages to<br />

the trainees.<br />

DECENTRALISED<br />

SECTOR<br />

POWERLOOM<br />

The decentralised powerloom sector<br />

is one <strong>of</strong> the most important segments<br />

<strong>of</strong> the Textile Industry in terms <strong>of</strong> fabric<br />

production and employment generation.<br />

It provides employment to 57.44 Lakh<br />

persons and contributes 62 percent to<br />

total cloth production in the Country. 60%<br />

<strong>of</strong> the fabrics produced in the powerloom<br />

sector is <strong>of</strong> man-made. More than 60%<br />

<strong>of</strong> fabric meant for export is also sourced<br />

from powerloom sector. The readymade<br />

garments and home textile sectors are<br />

heavily dependent on the powerloom<br />

sector to meet their fabric requirement.<br />

There are approximately 5.19 Lakh<br />

Powerloom Units with 22.98 Lakh<br />

Powerlooms as on 31.08.2011. The<br />

technology level <strong>of</strong> this sector varies from<br />

obsolete plain loom to high tech shuttleless<br />

looms. There are approximately<br />

1,05,000 shuttleless looms in this sector.<br />

It is estimated that more than 75% <strong>of</strong> the<br />

shuttle looms are obsolete and outdated<br />

12


annual report 2011-12<br />

with a vintage <strong>of</strong> more than 15 years and<br />

have virtually no process or quality control<br />

devices / attachments. However, there<br />

has been significant upgradation in the<br />

technology level <strong>of</strong> the powerloom sector<br />

during the last 5-6 years.<br />

Growth in the Powerloom Sector<br />

The estimated number <strong>of</strong> powerlooms in<br />

the decentralised sector in the country till<br />

31.08.2011 was 22,98,050.<br />

COTTON<br />

Cotton is one <strong>of</strong> the major crops cultivated<br />

in India. It accounts for more than 75% <strong>of</strong><br />

the total fibre consumption in the spinning<br />

mills and more than 54% <strong>of</strong> the total fibre<br />

consumption in the textile sector. The<br />

twin objective <strong>of</strong> assuring <strong>of</strong>f-take <strong>of</strong> the<br />

farmer’s produce at remunerative prices<br />

and making available adequate quantity<br />

<strong>of</strong> cotton at a reasonable prices to the<br />

domestic textile <strong>industry</strong>, are sought to be<br />

achieved through timely announcement<br />

<strong>of</strong> remunerative Minimum Support Price<br />

(MSP) to the farmer and through appropriate<br />

export-import intervention as and when<br />

necessary. The New Textile Policy aims<br />

at improving the quality <strong>of</strong> cotton to that <strong>of</strong><br />

international standards through effective<br />

implementation <strong>of</strong> the Technology Mission<br />

on Cotton (TMC).<br />

Production and Consumption<br />

●<br />

●<br />

●<br />

During the last five decades, the<br />

production <strong>of</strong> cotton increased from<br />

30.00 lakh bales <strong>of</strong> 170 kgs. each<br />

in 1950-51 to an all-time record <strong>of</strong><br />

356.00 lakh bales <strong>of</strong> 170 kgs. each<br />

during 2011-12.<br />

Acreage under cotton cultivation has<br />

also increased and from 58.82 lakh<br />

hectares in 1950-51 to a record high<br />

<strong>of</strong> 121.91 lakh hectares in 2011-12.<br />

The average yield has also increased<br />

from 88 kgs. in 1950-51 to 554 kgs. in<br />

2007-08.<br />

●<br />

●<br />

●<br />

●<br />

Due to receipt <strong>of</strong> good prices by the<br />

cotton farmers for their produce in<br />

previous cotton season there has<br />

been significant increase in cotton<br />

acreage under cotton in cotton<br />

season 2011-12. Acreage under<br />

cotton cultivation has increased by<br />

10% to 121.91 lakh hectares in 2011-<br />

12 as against 111.42 lakh hectares<br />

in the previous season. The rise in<br />

acreage has been mainly due to<br />

switching from other competing crops<br />

viz., maize, jawar, pulses etc. With<br />

various governmental measure to<br />

improve farm practices and release<br />

<strong>of</strong> Bt seeds have enabled the farmers<br />

to sustain their continued interests in<br />

cotton cultivation.<br />

One <strong>of</strong> the reasons for low yield in<br />

India as compared to world average<br />

<strong>of</strong> about 745 kgs/hectare is that<br />

nearly 65% <strong>of</strong> the area under cotton<br />

cultivation is rainfed. Despite delayed<br />

sowing and subsequent continuous<br />

rains in Northern and Central<br />

zone, with subsequent favourable<br />

agro-climatic conditions, the crop<br />

progress is satisfactory in all the<br />

cotton growing States. As a result,<br />

the cotton production in the country<br />

is also expected to increase by 10%<br />

to 356.00 lakh bales as against the<br />

last year.<br />

The largest share in the total<br />

production <strong>of</strong> cotton is <strong>of</strong> long staple<br />

varieties followed by medium and<br />

medium long staple. The share <strong>of</strong><br />

short staple is about 1% and the<br />

share <strong>of</strong> medium & medium long<br />

staple varieties was around 20% and<br />

the remaining are long and extra long<br />

staple varieties.<br />

In recent years, there has been a<br />

shift in the cultivation pattern and<br />

farmers have switched over to high<br />

yielding long staple varieties from<br />

13


ministry <strong>of</strong> <strong>textiles</strong><br />

●<br />

the medium staple varieties. The<br />

main cotton producing States are<br />

Maharashtra, Gujarat, Andhra<br />

Pradesh, Madhya Pradesh, Punjab,<br />

Haryana, Rajasthan, Karnataka,<br />

Tamil Nadu.<br />

Domestic consumption <strong>of</strong> cotton<br />

fibre has witnessed sustained<br />

growth since 2003-04 onwards<br />

due to growing demand for Indian<br />

<strong>textiles</strong> and subsequently, there has<br />

been considerable expansion and<br />

modernization <strong>of</strong> textile mills.<br />

● Even though the Indian cotton<br />

consumption has increased with<br />

rapid pace in the last few years,<br />

still it has not kept pace with the<br />

growth in domestic cotton production<br />

resulting into surplus availability<br />

for exports. The consumption level<br />

including consumption <strong>of</strong> spinning<br />

units in the Small Scale Sector<br />

and non-mill consumption during<br />

2011-12 has been 250.00 lakh bales<br />

as against 253.00 lakh bales in the<br />

previous year.<br />

●<br />

The projected slowdown in global<br />

economic growth in 2011 and 2012<br />

is expected to affect the cotton<br />

consumption <strong>of</strong> textile products and<br />

therefore demand for cotton fibre<br />

domestically and internationally.<br />

Cotton consumption is likely to be<br />

influenced by the cotton farmers in<br />

the previous cotton season. As a<br />

result, the consumption is estimated<br />

at 250.00 lakh bales in 2011-12 as<br />

against 253.00 lakh bales in previous<br />

year.<br />

SERICULTURE & SILK INDUSTRY<br />

India continues to be the second largest<br />

producer <strong>of</strong> silk in the World. Among the<br />

four varieties <strong>of</strong> silk produced, as in 2010-11,<br />

Mulberry accounts for 80.2% (16360 MT),<br />

Eri 13.5% (2760 MT), Tasar 5.7% (1166 MT)<br />

and Muga 0.6% (124MT) <strong>of</strong> the total raw silk<br />

production in the country.<br />

Sericulture is an important labourintensive<br />

and agro-based cottage<br />

<strong>industry</strong>, providing gainful occupation to<br />

around 7.25 million persons in rural and<br />

semi-urban areas in India. Of these, a<br />

sizeable number <strong>of</strong> workers belong to the<br />

economically weaker sections <strong>of</strong> society.<br />

There is substantial involvement <strong>of</strong> women<br />

in this Industry.<br />

In the Fifth year <strong>of</strong> the XI Plan i.e.,<br />

2011-12, the provisional production<br />

data received up to April – December<br />

period it is seen that the production <strong>of</strong><br />

mulberry raw silk increased by 11.8% (to<br />

13080 MT) compared to the production<br />

<strong>of</strong> 11696 MT in the same period <strong>of</strong> the<br />

previous year (2010-11). Vanya raw silk<br />

production was increased by 4.0% (2170<br />

MT) during April – December period <strong>of</strong><br />

the year 2011-12 as compared to the<br />

production <strong>of</strong> 2087 MT during the same<br />

period <strong>of</strong> the year 2010-11.<br />

RESEARCH AND DEVELOPMENT<br />

The main Research & Training Institutes<br />

<strong>of</strong> the CSB provide R&D and Training<br />

support for the development <strong>of</strong> sericulture.<br />

The institutes at Mysore (Karnataka)<br />

Berhampore (West Bengal) and Pampore<br />

(J&K) deals with mulberry sericulture.<br />

One at Ranchi (Jharkhand) deals with<br />

Tasar culture. The institute established<br />

at Lahdoigarh, Jorhat (Assam) deals with<br />

Muga and Eri culture. Regional Sericulture<br />

Research Stations (RSRS/RTRS/RERS)<br />

for mulberry and non-mulberry has<br />

been functioning for adoptive Research,<br />

refining and dissemination <strong>of</strong> the research<br />

findings and <strong>of</strong> tackling the regional field<br />

issues <strong>of</strong> the <strong>industry</strong>. Besides, a network<br />

<strong>of</strong> Research Extension Centre (RECs)<br />

& its sub units for mulberry and non<br />

mulberry are also functioning to provide<br />

14


annual report 2011-12<br />

extension support to sericulturists. In<br />

order to provide R&D support in post<br />

cocoon sector, the Board has established<br />

a Central Silk Technological Research<br />

Institute (CSTRI) at Bangalore. In<br />

addition, the CSB has also set up a<br />

Silkworm Seed Technology Laboratory<br />

(SSTL) in Bangalore (Karnataka), a<br />

Central Sericultural Germplasm Resource<br />

Centre (CSGRC) at Hosur (Tamil Nadu)<br />

and a Seri-Biotech Research Laboratory<br />

(SBRL) at Bangalore.<br />

During 2011-12, 40 Research projects<br />

are continued. Further, 29 new research<br />

projects were initiated. Against a target<br />

<strong>of</strong> 30 Research Projects scheduled to be<br />

completed, 23 projects have already been<br />

concluded (up to November 2011) and<br />

remaining 7 projects will be concluded by<br />

March 2012.<br />

TRANSFER OF TECHNOLOGY<br />

In order to increase productivity and quality<br />

<strong>of</strong> silk, a chain <strong>of</strong> Research Extension<br />

Centres are engaged for transfer <strong>of</strong><br />

technologies from Research Institutes to<br />

the field.<br />

SEED ORGANISATION (SILKWORM<br />

SEED PRODUCTION AND SUPPLY)<br />

Under National Silkworm Seed<br />

Organization (NSSO) a network <strong>of</strong> 19<br />

Basic Seed Farms (BSF) produce and<br />

supply the basic seed for production <strong>of</strong><br />

commercial silkworm seed in the seed<br />

production centres functioning under CSB<br />

and State Departments. 19 Silkworm<br />

Seed Production Centres (SSPCs) are<br />

functioning under NSSO in different States<br />

to support the <strong>industry</strong>. Similarly, on the<br />

tasar side, the CSB has established 21<br />

Basic Seed Multiplication & Training<br />

Centres (BSM&TC) and one Central Tasar<br />

Silkworm Seed Station (CTSSS) for supply<br />

<strong>of</strong> tropical tasar basic seed & 1 oak tasar<br />

grainage and 3 REC-Cum-BSM&TCs for<br />

supply <strong>of</strong> oak tasar basic seed. Under<br />

muga sector, 8 Basic Seed Farms and<br />

1 Silkworm Seed Production Centre are<br />

functioning. For production and supply <strong>of</strong><br />

eri seed, CSB has established 5 Silkworm<br />

Seed Production Centres.<br />

Emphasis was given towards production<br />

<strong>of</strong> quality dfls by adopting Quality<br />

Management System in seed production<br />

under ISO 9001:2008 certification in<br />

18 SSPCs. During 2011-12 four more<br />

SSPCs are to be covered under ISO<br />

certification.<br />

ESTABLISHMENT OF COCOON TESTING<br />

UNITS<br />

In order to facilitate cocoon testing in<br />

different cocoon markets <strong>of</strong> the country<br />

an amount <strong>of</strong> Rs. 1.00 lakh ( unit cost) is<br />

provided towards procurement <strong>of</strong> testing<br />

equipments. It is proposed to establish<br />

25 such Units during XI plan. The entire<br />

assistance is provided by Central Silk<br />

Board. During the year 2011-12 a total <strong>of</strong><br />

5 units located in the state <strong>of</strong> Karnanataka<br />

and West Bengal <strong>of</strong> Procurement /<br />

Establishment is under progress viz., at<br />

Shirahatti/H.Cross/Vijayapura/Malavalli-<br />

Karnataka, Khaliachack- WB.<br />

SILK MARK ORGANIZATION OF INDIA<br />

(SMOI)<br />

The <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong>, Govt. <strong>of</strong> India came<br />

up with an initiative for the protection <strong>of</strong><br />

the interests <strong>of</strong> the consumers and other<br />

stakeholders <strong>of</strong> the silk value-chain by<br />

bringing out “Silk Mark” Scheme in June<br />

2004. Silk Mark, the Quality Assurance<br />

Label signifying that a product to which<br />

it is affixed is made <strong>of</strong> pure silk was<br />

launched by the Silk Mark Organisation<br />

<strong>of</strong> India (SMOI), a registered Society<br />

promoted by the Central Silk Board. Silk<br />

Mark labels can be affixed to primary,<br />

intermediate and finished products <strong>of</strong> silk<br />

including yarn, fabric, sarees, made-ups,<br />

15


ministry <strong>of</strong> <strong>textiles</strong><br />

garments, carpets, etc.<br />

The Silk Mark Scheme is aimed at<br />

protecting the interests <strong>of</strong> the users and<br />

connoisseurs <strong>of</strong> silk, and for the generic<br />

promotion <strong>of</strong> silk and also for building<br />

brand-equity <strong>of</strong> Indian Silk.<br />

Since the launch <strong>of</strong> Silk Mark in June<br />

2004, over 1800 members have joined<br />

the Organisation, <strong>of</strong> whom, more than<br />

1700 have become Authorized Users.<br />

More than 1.35 crore <strong>of</strong> Silk Mark labelled<br />

products have reached the market for the<br />

benefit <strong>of</strong> consumers.<br />

During 2011-12 (up to November 2011)<br />

168 members joined SMOI, <strong>of</strong> which, 157<br />

members have enrolled as Authorised<br />

Users and 16.12 lakhs <strong>of</strong> Silk Mark Labelled<br />

products have reached the market. During<br />

2011-12 (upto November 2011) SMOI<br />

participated in as many as 296 exhibitions/<br />

Workshops/ Road shows etc.<br />

Anticipated achievement up to March<br />

2012 is as follows:<br />

1. Members – 300 Nos.<br />

2. Authorised users – 300 Nos.<br />

3. Sale <strong>of</strong> Silk Mark label – 30.00 lakhs<br />

4. Awareness programmes / Workshops<br />

/ Exhibitions / Road Shows etc. - 340<br />

Nos.<br />

Nineteen Silk Expos have been planned<br />

during the year 2011-12 and 10 such<br />

Expos have already been conducted at<br />

various cities till November, 2011.<br />

THE JUTE AND JUTE TEXTILES<br />

INDUSTRY<br />

The Jute <strong>industry</strong> occupies an important<br />

place in the national economy <strong>of</strong> India. It<br />

is one <strong>of</strong> the major industries in the eastern<br />

region, particularly in West Bengal. Jute,<br />

the golden fibre, meets all the standards<br />

for ‘safe’ packaging in view <strong>of</strong> being a<br />

natural, renewable, biodegradable and<br />

eco-friendly product. It is estimated that the<br />

jute <strong>industry</strong> provides direct employment<br />

to 0.37 million workers in organized mills<br />

and in diversified units including tertiary<br />

sector and allied activities and supports<br />

the livelihood <strong>of</strong> around 4.0 million farm<br />

families. In addition, there are a large<br />

number <strong>of</strong> persons engaged in the trade<br />

<strong>of</strong> jute.<br />

In the world perspective, India is the<br />

major producer <strong>of</strong> both raw jute and jute<br />

products. Out <strong>of</strong> the total world production<br />

<strong>of</strong> Jute, Kenaf and allied fibre <strong>of</strong> 3.0 million<br />

tonnes in 2007-08, India produced 1.8<br />

million tonnes. In percentage terms India<br />

accounted for 60 % <strong>of</strong> world production<br />

in 2007-08. Global production <strong>of</strong> jute and<br />

allied fibres is estimated to have increased<br />

by 25 % to 3.0 million tonnes in 2007-08<br />

compared to 2004-05 season. Production<br />

in India has also increased by 28% to 1.8<br />

million tonnes in 2007-08 over 2004-05.<br />

There are 83 composite jute mills in India.<br />

Out <strong>of</strong> the total 83 jute mills, 64 jute mills<br />

are located in West Bengal, 3 each in<br />

Bihar and U.P., 7 in Andhra Pradesh 2<br />

each in Chattisgarh & Orissa and 1 each<br />

in Assam and Tripura. Ownership- wise<br />

division is:- 6 mills are under Government<br />

<strong>of</strong> India’s P.S.U., 1 mill (Tripura) is under<br />

State Government, 2 mills (Assam & New<br />

Central) are in the co-operative sector and<br />

74 are privately owned mills.<br />

As on 31-01-2010 total number <strong>of</strong> looms<br />

installed in the jute <strong>industry</strong> stood at 48,245<br />

consisting <strong>of</strong> 23,372 Hessian looms,<br />

22,148 sacking looms, 1,058 C.B.C looms<br />

and others at 1,060. The installed spindles<br />

in jute mills other than 100% export oriented<br />

units were 731,408 comprising <strong>of</strong> 622,324<br />

fine spindles and 109,084 coarse spindles.<br />

Installed spindles in 100% export oriented<br />

16


annual report 2011-12<br />

units stood at 9,482 with fine spindles at<br />

6,974 and coarse spindles at 2,508. The<br />

maximum installed capacity in jute mills<br />

other than 100% export oriented units (on<br />

the basis <strong>of</strong> 305 working days per year) is<br />

estimated to be <strong>of</strong> 2.47 million tonnes per<br />

annum.<br />

HANDLOOMS<br />

Handloom weaving is one <strong>of</strong> the largest<br />

economic activities after agriculture<br />

providing direct and indirect employment<br />

to more than 43 lakh weavers and allied<br />

workers. This sector contributes nearby<br />

15% <strong>of</strong> the cloth production in the<br />

country and also contributes to the export<br />

earnings <strong>of</strong> the country. 95% <strong>of</strong> the world’s<br />

handwoven fabric comes from India.<br />

Production in the Handloom Sector<br />

increased<br />

Resultant to the developmental and<br />

welfare measures initiated by the<br />

Government <strong>of</strong> India, the declining trend<br />

in production in the handloom sector had<br />

been arrested and from the year 2004-05<br />

(except year <strong>of</strong> recession in 2008-09) there<br />

in fact has been a considerable growth in<br />

production in the sector. Production in the<br />

handloom sector recorded a figure <strong>of</strong> 6949<br />

million sq. meters in the year 2010-11,<br />

which is about 26% over the production<br />

figure <strong>of</strong> 5493 million sq. meters recorded<br />

in the year 2003-04.<br />

Revival, Reform and Restructuring<br />

Package for Handloom Sector<br />

The “Revival, Reform and Restructuring<br />

Package for Handloom Sector” has been<br />

approved with the total financial implication<br />

<strong>of</strong> Rs. 3884 crore, out <strong>of</strong> which Government<br />

<strong>of</strong> India’s share is Rs. 3137 crore and the<br />

share <strong>of</strong> the State Governments is Rs. 747<br />

crore. The Package covers loan waiver<br />

<strong>of</strong> 100% <strong>of</strong> principal and 25% <strong>of</strong> interest,<br />

which is overdue as on 31.03.2010 in<br />

respect <strong>of</strong> weavers and their societies.<br />

Interest subsidy <strong>of</strong> 3% for 3 years will be<br />

extended with guarantee <strong>of</strong> the fresh loan<br />

extended by banks to the eligible handloom<br />

cooperative societies and individual<br />

handloom weavers.<br />

Comprehensive Package for the<br />

Handloom Sector<br />

To meet the two critical needs <strong>of</strong> cheap<br />

credit and cheap hank yarn for the<br />

handloom sector, the Government has<br />

approved a comprehensive package for<br />

handloom sector. The components <strong>of</strong><br />

comprehensive package are implemented<br />

through two existing Plan schemes i.e.<br />

Integrated Handlooms Development<br />

Scheme for availability <strong>of</strong> cheap credit,<br />

and Mill Gate Price Scheme for availability<br />

<strong>of</strong> subsidised hank yarn. For easy credit<br />

availability to handloom weaver, the<br />

Government <strong>of</strong> India will provide margin<br />

money assistance @ Rs.4200/- per<br />

weaver, interest subvention at 3% per<br />

annum for 3 years and credit guarantee<br />

for 3 years by the Credit Guarantee Fund<br />

Trust for Micro and Small Enterprises<br />

(CCTMSE).<br />

To ensure yarn availability at reasionable<br />

prices, 10% price subsidy on domestic<br />

silk yarn and cotton yarn have been<br />

approved by the Government <strong>of</strong> India.<br />

Further the rate <strong>of</strong> freight reimbursement<br />

for transportation <strong>of</strong> different types <strong>of</strong> yarn<br />

has also been enhanced suitably in order<br />

to <strong>of</strong>fset the increase in fuel cost.<br />

The projected financial outlay involved<br />

in the implementation <strong>of</strong> these proposals<br />

during the current year 2011-12 and the<br />

12 th Plan period is Rs. 2362.15 crore. The<br />

comprehensive package will benefit all the<br />

handloom weavers and their cooperative<br />

societies in the country as per the budget<br />

allocation, in addition to 3 lakh handloom<br />

weavers and 15,000 cooperative<br />

societies already covered under the<br />

17


ministry <strong>of</strong> <strong>textiles</strong><br />

Financial Package approved earlier.<br />

These interventions aim at bringing about<br />

a paradigm shift by converting individual<br />

weavers into micro entrepreneurs by<br />

empowering them with cheap credit and<br />

yarn. Individual weavers will now be able<br />

to command a better price in the market<br />

for their products.<br />

Handloom Weaver Credit Card (WCC)<br />

Scheme<br />

Handloom sector largely comprises <strong>of</strong><br />

small and tiny units, which fall mostly<br />

under the unorganized sector and<br />

that credit needs <strong>of</strong> a large number <strong>of</strong><br />

weavers are being met through informal<br />

channels.<br />

The WCC Scheme aims at providing<br />

adequate and timely assistance from the<br />

Banking institutions to the weavers to<br />

meet their credit requirements, i.e., for<br />

investments needs as well as for working<br />

capital <strong>of</strong> Rs.30,000-50,000 per borrower<br />

in a flexible and cost effective manner.<br />

Weaver Credit Card (WCC) Scheme<br />

dovetailed with other Government<br />

programmes will go a long way in<br />

supporting the government initiatives to<br />

fulfill the objective <strong>of</strong> financial inclusion.<br />

Credit Guarantee through Credit<br />

Guarantee Fund Trust For Micro And<br />

Small Enterprises (CGTMSE):<br />

The Credit Guarantee Fund Trust for<br />

Micro and Small Enterprises (CGTMSE)<br />

was set up in July, 2000 jointly by GOI<br />

and SIDBI. The trust provides guarantee<br />

cover to term loan and working capital<br />

facilities sanctioned by its member lending<br />

institutions without collateral security<br />

to eligible units in the Micro and Small<br />

Enterprises Sector.<br />

It has been decided to provide a credit<br />

guarantee cover for working capital/term<br />

loan assistance by Government <strong>of</strong> India on<br />

behalf <strong>of</strong> the eligible Handloom Weavers<br />

to enable them to access credit without<br />

any collateral security. The Government<br />

<strong>of</strong> India will pay the Guarantee Fees and<br />

Annual Service Charges (as applicable)<br />

on behalf <strong>of</strong> the borrowers, for loans <strong>of</strong><br />

upto Rs. 50,000 per weavers under Credit<br />

Guarantee Fund Trust for Micro and Small<br />

Enterprises (CGTMSE) Scheme. This will<br />

cover 85% <strong>of</strong> the amount in default.<br />

585 Handloom Clusters taken up for<br />

development.<br />

The Integrated Handlooms Development<br />

Scheme(IHDS) has been launched<br />

with a view to develop holistically and<br />

comprehensively the weavers’ clusters<br />

throughout the country. Under this scheme,<br />

585 Handloom clusters have been taken<br />

up during XI th Plan (upto 21.02.2012) and<br />

financial assistance <strong>of</strong> Rs 176.11 crore has<br />

been released to various Implementing<br />

agencies through the State Government for<br />

various components like skill upgradation,<br />

setting up <strong>of</strong> CPC/Dye House, marketing,<br />

formation <strong>of</strong> consortium etc.<br />

71 Lakh Weavers covered under the<br />

Health Insurance Scheme<br />

The Health Insurance Scheme provides<br />

health care facilities to the handloom<br />

weavers and their families. 71.24 lakh<br />

weavers have been covered/enolled<br />

during the XIth Plan under this scheme<br />

which extends benefit to more than 284<br />

lakh persons including spouse and two<br />

children <strong>of</strong> the weaver covered.<br />

Yarn supply under the Mill Gate Price<br />

Scheme<br />

788 yarn depots, covering all the<br />

handloom clusters, have been set up<br />

by the NHDC to ensure steady and<br />

timely supply <strong>of</strong> requisite yarn at Mill<br />

Gate Price to the handloom weavers.<br />

18


annual report 2011-12<br />

Supply <strong>of</strong> yarn by the National<br />

Handloom Development Corporation<br />

(NHDC) under the Mill Gate Price<br />

Scheme having increased considerably<br />

and registered a figure <strong>of</strong> 1105.96 lakh<br />

kgs. valued at Rs.1195.55 core in the<br />

year 2010-11 as compared to 682.14<br />

lakh kgs yarn valuing Rs.567.48 core<br />

supplied in the year 2007-08.<br />

Sant Kabir Award<br />

This award is conferred every year,<br />

beginning from the year 2009 on such<br />

outstanding weavers who have made<br />

valuable contribution in keeping alive the<br />

handloom heritage. Each award consists<br />

<strong>of</strong> one mounted gold coin, one shawl and<br />

a citation. In addition, financial assistance<br />

to the extent <strong>of</strong> Rs. 6.00 lakh is also given<br />

to each <strong>of</strong> the Sant Kabir Awardee to<br />

innovate and create 10 new products <strong>of</strong><br />

high level <strong>of</strong> excellence, <strong>of</strong> high aesthetic<br />

value and <strong>of</strong> high quality. 10 handloom<br />

weavers have been selected to confer<br />

Sant Kabir Award for the year 2009.<br />

Brand building through Handloom<br />

Mark:<br />

The Handloom Mark has been launched<br />

to serve as a guarantee to the buyer<br />

that handloom product being purchased<br />

is genuine handwoven product and not<br />

a powerloom or mill made product. The<br />

<strong>Textiles</strong> Committee is the Implementing<br />

agency for promotion <strong>of</strong> Handloom<br />

Mark. As on 31.01.2012, 241.21 lakh<br />

(cumulative) handloom mark labels have<br />

been sold to 8737 stakeholders. 812<br />

retails outlets are selling handloom goods<br />

with Handloom Mark label.<br />

Handloom Week<br />

To promote, popularize and create<br />

awareness about the handloom products<br />

Handloom Week is celebrated every year<br />

from 21st Dec. to 27th Dec. During the<br />

Handloom week, number <strong>of</strong> promotional<br />

and awareness programmes, publicity<br />

through newspapers, magazines, outdoor<br />

publicity, through electronic media were<br />

undertaken.<br />

Marketing Events<br />

The target <strong>of</strong> marketing events for the<br />

year 2011-12 has been increased to 700<br />

No. from 680 No. sanctioned during the<br />

year 2010-11 to give adequate opportunity<br />

to handloom weavers and their societies<br />

to market their products directly to the<br />

consumers without the intervention <strong>of</strong> the<br />

middlemen. 740 marketing events have<br />

been sanctioned during the current year<br />

2011-12 till 31 st Jan., 2012.<br />

Exhibition <strong>of</strong> Handloom Products<br />

Exhibition-cum-Sale <strong>of</strong> Handloom<br />

Items during the ‘India Day’ at Lal<br />

Bahadur Shastri National Academy <strong>of</strong><br />

Administration ( LBSNAA), Mussoorie<br />

was organised during July 2011 and again<br />

in Oct. 2011.<br />

A Buyer Seller Meet was organized in<br />

September 2011 at Jaipur to promote<br />

and preserve traditional Kota Doria and<br />

showcased wide range <strong>of</strong> Kota Doria<br />

products.<br />

A Master Creation Programme has<br />

been organised at Dilli Haat, INA, New<br />

Delhi from 1 st to 15 th Dec. 2011 wherein<br />

National awardees had exhibited<br />

their products for sale directly to the<br />

public. Loom demonstration has also<br />

been made during the programme. An<br />

exhibition- cum-sale ‘Himcraft’ <strong>of</strong> <strong>wool</strong>en<br />

products developed in clusters <strong>of</strong><br />

Himachal Pradesh was held during the<br />

“Handloom Week” on 24-26 th December,<br />

2011 at India Islamic Center, New Delhi<br />

where the Handloom weavers exhibited<br />

and sold their products to public.<br />

19


ministry <strong>of</strong> <strong>textiles</strong><br />

Special project for development <strong>of</strong><br />

Tripura Handlooms.<br />

Special Project for Development <strong>of</strong><br />

Tripura Handlooms has been approved at<br />

the cost <strong>of</strong> Rs.9.12 crore over three years,<br />

and is likely to benefit 960 handloom<br />

weavers and ancillary workers because<br />

it envisages an overall development <strong>of</strong><br />

the dispersed units spread across the<br />

remote interiors <strong>of</strong> the hilly terrain in the<br />

State <strong>of</strong> Tripura.<br />

HANDICRAFTS<br />

The Handicrafts Sector plays a significant<br />

& important role in the country’s economy.<br />

It provides employment to a vast segment<br />

<strong>of</strong> craft persons in rural & semi urban<br />

areas and generates substantial foreign<br />

exchange for the country, while preserving<br />

its cultural heritage. Handicrafts have<br />

great potential, as they hold the key for<br />

sustaining not only the existing set <strong>of</strong><br />

millions <strong>of</strong> artisans spread over length<br />

and breadth <strong>of</strong> the country, but also for<br />

the increasingly large number <strong>of</strong> new<br />

entrants in the crafts activity. Presently,<br />

handicrafts contribute substantially to<br />

employment generation and exports.<br />

The Handicraft sector has, however,<br />

suffered due to its being unorganized,<br />

with the additional constraints <strong>of</strong> lack <strong>of</strong><br />

education, low capital, poor exposure to<br />

new technologies, absence <strong>of</strong> market<br />

intelligence, and a poor institutional<br />

framework. In spite <strong>of</strong> these constraints,<br />

sector has witnessed a significant<br />

growth and efforts are being augmented<br />

during the current plan on the following<br />

core issues for the development <strong>of</strong> the<br />

sector.<br />

= Providing infrastructural support for<br />

production & exports.<br />

= Improve quality & product<br />

diversification with more awareness<br />

for both stakeholders & consumer.<br />

= A greater role for NGO as<br />

implementing partners and<br />

participation <strong>of</strong> private resources<br />

–both human and financial.<br />

The sector is estimated to employ Rs<br />

68.86 lakh artisans. At present the export<br />

<strong>of</strong> handicrafts including handmade<br />

carpet has been 10651.93 crores (April-<br />

Dec. 2011) which shows an increase <strong>of</strong><br />

30.97% over the same period in financial<br />

year 2010-11, and the plan allocation is at<br />

present Rs. 245.00 crores in 2011-12.<br />

Handicrafts activity being a State subject,<br />

its development and promotion are the<br />

primary responsibility <strong>of</strong> every State<br />

Government. However, the Central<br />

Government is supplementing their efforts<br />

by implementing various developmental<br />

schemes.<br />

Sardar Vallabhbhai Patel<br />

International School <strong>of</strong> <strong>Textiles</strong><br />

and Management (SVPISTM)<br />

Sardar Vallabhbhai Patel International<br />

School <strong>of</strong> <strong>Textiles</strong> and Management<br />

(SVPISTM), Coimbatore is an autonomous<br />

institute under the <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong>. It<br />

was established in 2004 as the Sardar<br />

Vallabhbhai Patel Institute <strong>of</strong> Textile<br />

Management (SVPITM), a product <strong>of</strong><br />

the collaborative effort <strong>of</strong> the <strong>Ministry</strong> <strong>of</strong><br />

<strong>Textiles</strong>, Government <strong>of</strong> India and the<br />

associations <strong>of</strong> the textile <strong>industry</strong>. Among<br />

the <strong>industry</strong> associations involved in<br />

the establishment <strong>of</strong> the Institution were<br />

Southern India Mills’ Association (SIMA),<br />

Tirupur Exporters’ Association (TEA) and<br />

Powerloom Development and Export<br />

Council (PDRXIL).<br />

Since inception, the School has been<br />

vibrant and taking bold initiatives in<br />

achieving its objectives. Apart from running<br />

its own long term programmes <strong>of</strong> Post<br />

Graduate Diploma in Management with<br />

specialisation in <strong>Textiles</strong> and Management,<br />

20


annual report 2011-12<br />

it has associated with IGNOU in evolving<br />

an exclusive MBA in <strong>Textiles</strong> Management.<br />

The course is now <strong>of</strong>fered at the School<br />

premises as face-to-face programme and<br />

is involved in developing course material<br />

for the programme to be <strong>of</strong>fered under<br />

distance mode. It is affiliated to Bharatiar<br />

University, Coimbatore to <strong>of</strong>fer research<br />

programmes, M.Phil and Ph.D in <strong>textiles</strong><br />

management. It has taken active role in<br />

conducting <strong>industry</strong> specific short term<br />

programmes in the form <strong>of</strong> Management<br />

Development Programmes and<br />

Entreprenuer Development Programmes<br />

for textile <strong>industry</strong> personnel in general<br />

and has been repeatedly conducting inhouse<br />

programmes for certain textile<br />

units.<br />

It has entered into Memorandum <strong>of</strong><br />

Understanding (MOU) with <strong>industry</strong><br />

associations and academic institutions<br />

<strong>of</strong> India and abroad, to bring about the<br />

synergy <strong>of</strong> different knowledge centres<br />

and foster research in the emerging area<br />

<strong>of</strong> the <strong>industry</strong>, for the ultimate benefit <strong>of</strong><br />

the textile <strong>industry</strong>.<br />

The School is embarking on launching an<br />

integrated five year programme – B.Tech<br />

(Technical <strong>Textiles</strong>) with MBA. It will be<br />

<strong>of</strong>fering a specialised course <strong>of</strong> MBA in retail<br />

management, with particular reference to<br />

textile <strong>industry</strong>. It is also planning to launch<br />

further programmes in the specialised<br />

areas <strong>of</strong> <strong>textiles</strong> and ultimately emerge<br />

as a centralised knowledge warehouse in<br />

matters relating to <strong>textiles</strong>, with the status<br />

<strong>of</strong> a National Textile University, which the<br />

<strong>industry</strong> can draw upon.<br />

In order to lay sound foundation for the<br />

new and challenging roles, the School<br />

has engaged the Educational Consultants<br />

<strong>of</strong> India Limited(Ed.CIL) for advice on<br />

the infrastructure to be created and other<br />

courses <strong>of</strong> action to be taken. The School<br />

is poised for a strong and well-rounded<br />

growth to emerge as a force to reckon with<br />

in the <strong>industry</strong>.<br />

NATIONAL INSTITUTE OF FASHION<br />

TECHNOLOGY (NIFT)<br />

National Institute <strong>of</strong> Fashion Technology<br />

has completed 25 years in the domain<br />

<strong>of</strong> fashion education in India in 2011.<br />

A pioneer in the field <strong>of</strong> fashion in the<br />

three streams <strong>of</strong> Design, Technology &<br />

Management, the growth <strong>of</strong> NIFT has<br />

paralleled the emergence <strong>of</strong> India in the<br />

global scenario as a significant player.<br />

Since its inception in 1986 with modest<br />

beginnings in Delhi, it has emerged as a<br />

15-center institute with a strong national<br />

& global presence.<br />

Dynamic changes in the market and<br />

consumption patterns resulting in<br />

restructuring and consolidation with<br />

renewed interest in investment, emerging<br />

trends and business opportunities in<br />

the intensely competitive domestic<br />

environment, challenges <strong>of</strong> globalization,<br />

information and networking explosion,<br />

increasing national concern for the<br />

environment and sustainability have had<br />

a significant cumulative impact on the<br />

fashion <strong>industry</strong>.<br />

The 15 centers <strong>of</strong> NIFT are Bengaluru,<br />

Bhopal, Bhubaneswar, Chennai,<br />

Gandhinagar, Hyderabad, Jodhpur,<br />

Kangra, Kannur, Kolkata, Mumbai, New<br />

Delhi, Patna, Raebareli and Shillong.<br />

There are more than 7000 students<br />

across these canters pursuing UG and<br />

PG degrees in 10 streams.<br />

NIFT has played a pioneering role in<br />

contributing to various segments <strong>of</strong> the<br />

textile, apparel, lifestyle accessories,<br />

leather, knitwear and communication<br />

<strong>industry</strong>. It has been successful in creating<br />

a widespread awareness and sensitivity<br />

to fashion as a serious business in India<br />

and evolving a pr<strong>of</strong>essional ethos with<br />

a distinct signature style on the global<br />

fashion map. The NIFT alumni have<br />

created a niche for themselves in the top<br />

echelons <strong>of</strong> the fashion Industry and have<br />

21


created a wide network thereby supporting<br />

aspiring students to gain ingress into the<br />

pr<strong>of</strong>essional sphere.<br />

ACTIVITIES RELATED TO<br />

PROGRESSIVE USE OF OFFICIAL<br />

LANGUAGE<br />

Hindi is the Official Language <strong>of</strong> the Union<br />

<strong>of</strong> India and the policy <strong>of</strong> the Government<br />

aims at progressive use <strong>of</strong> Hindi in <strong>of</strong>ficial<br />

work. Effective steps have been taken<br />

during the year in the M/o <strong>Textiles</strong> to ensure<br />

compliance with the Official Language<br />

Policy <strong>of</strong> the Government; implementation<br />

<strong>of</strong> the annual programme and compliance<br />

with the various orders <strong>of</strong> the Government<br />

<strong>of</strong> India on the recommendations <strong>of</strong> the<br />

Committee <strong>of</strong> Parliament on Official<br />

Language.<br />

Compliance with the provisions <strong>of</strong> the<br />

Official Language Act, 1963<br />

All documents such as resolutions,<br />

general orders, rules etc., under Section<br />

3(3) <strong>of</strong> the Official Language Act and<br />

all papers laid on the Table <strong>of</strong> both the<br />

Houses <strong>of</strong> Parliament were issued<br />

bilingually, i.e. in Hindi and English.<br />

General orders meant for departmental<br />

use were issued in Hindi only.<br />

Sections specified for working in Hindi<br />

The 15 Sections <strong>of</strong> the <strong>Ministry</strong> which<br />

have been specified for doing hundred<br />

per cent work in Hindi, are working<br />

satisfactorily.<br />

Monitoring and inspections<br />

In order to ensure compliance with the<br />

Official Language Policy, monitoring is<br />

done through reviewing the quarterly<br />

progress reports. During the year, apart<br />

from the Sections <strong>of</strong> the <strong>Ministry</strong>, three<br />

head <strong>of</strong>fices and thirteen sub-<strong>of</strong>fices<br />

<strong>of</strong> organizations under the control <strong>of</strong><br />

*****<br />

ministry <strong>of</strong> <strong>textiles</strong><br />

the <strong>Ministry</strong> were inspected to ensure<br />

progressive use <strong>of</strong> Hindi and compliance<br />

with the Official Language policy.<br />

Training <strong>of</strong> Officials<br />

Three <strong>of</strong>ficials in the <strong>Ministry</strong> are being<br />

trained in Hindi typing.<br />

Use <strong>of</strong> Mechanical aids<br />

As per the provisions <strong>of</strong> the Official<br />

Language Act, facilities have been<br />

provided on all the computers in the<br />

<strong>Ministry</strong>, to work in Hindi.<br />

Committees<br />

The meeting <strong>of</strong> the Hindi Salahar Samitee<br />

has been organised on 8 th December,<br />

2011 in the <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong> under the<br />

Chairmanship <strong>of</strong> Minister <strong>of</strong> State for<br />

<strong>Textiles</strong>.<br />

The Departmental Official Language<br />

Implementation Committee in the M/o<br />

<strong>Textiles</strong> has been constituted under the<br />

Chairmanship <strong>of</strong> the Joint Secretary (In-<br />

Charge Hindi). The Quarterly meetings <strong>of</strong><br />

the Committee were organized and followup<br />

action was taken for compliance <strong>of</strong><br />

decisions for use <strong>of</strong> Hindi in <strong>of</strong>ficial work.<br />

Hindi Fortnight<br />

Hindi Fortnight was celebrated during<br />

14-30 September, 2011 in the <strong>Ministry</strong>.<br />

Various competitions like Hindi Essay,<br />

Hindi Noting & Drafting, Hindi Debate,<br />

Hindi Poetry Recitation, Dictation, Hindi<br />

Gyan and Hindi Typing were organized to<br />

encourage and motivate the employees<br />

for doing <strong>of</strong>ficial work in Hindi. A large<br />

number <strong>of</strong> <strong>of</strong>ficers and staff participated<br />

in these events with enthusiasm. Appeals<br />

from Minister <strong>of</strong> <strong>Textiles</strong>, Minister <strong>of</strong> State<br />

for <strong>Textiles</strong> and Secretary (<strong>Textiles</strong>) were<br />

circulated on the occasion <strong>of</strong> Hindi Diwas<br />

in the <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong> as well as in its<br />

Attached / Subordinate <strong>of</strong>fices and PSUs<br />

etc. for doing maximum work in Hindi.<br />

22


annual report 2011-12<br />

CHAPTER II<br />

FUNCTIONS AND<br />

ORGANIZATIONAL SET UP<br />

23


24<br />

ministry <strong>of</strong> <strong>textiles</strong>


annual report 2011-12<br />

CHAPTER-II<br />

FUNCTIONS AND ORGANIZATIONAL SET-UP<br />

The <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong> is responsible<br />

for policy formulation, planning,<br />

development, export promotion and<br />

trade regulation <strong>of</strong> the <strong>Textiles</strong> Industry.<br />

This includes all natural and manmade<br />

cellulosic fibres that go into the making<br />

<strong>of</strong> <strong>textiles</strong>, clothing, and handicrafts.<br />

The <strong>Ministry</strong> maintains an interactive<br />

website: www.ministry<strong>of</strong><strong>textiles</strong>.nic.in.<br />

The <strong>Ministry</strong> is headed by a Secretary,<br />

who is assisted in the discharge <strong>of</strong> duties<br />

by four Joint Secretaries, an Economic<br />

Advisor, the Development Commissioners<br />

for Handlooms and Handicrafts, the<br />

<strong>Textiles</strong> Commissioner and the Jute<br />

Commissioner.<br />

VISION<br />

To build state <strong>of</strong> the art production<br />

capacities and achieve a pre-eminent<br />

global standing in manufacture and<br />

export <strong>of</strong> all types <strong>of</strong> <strong>textiles</strong> including<br />

technical <strong>textiles</strong>, jute, silk, cotton and<br />

<strong>wool</strong> and develop a vibrant handlooms<br />

and handicrafts sector for sustainable<br />

economic development and promoting<br />

and preserving the age old cultural<br />

heritage in these sectors.<br />

MISSION<br />

●<br />

●<br />

To ensure welfare and proper working<br />

environment and easy access to<br />

health care facilities and insurance<br />

cover to weavers and artisans to<br />

achieve better quality <strong>of</strong> life.<br />

To promote exports <strong>of</strong> all types <strong>of</strong><br />

<strong>textiles</strong> and clothing and handicrafts<br />

and increase India’s share <strong>of</strong> world<br />

exports in these sectors.<br />

OBJECTIVES<br />

●<br />

To make available adequate raw<br />

material to all sectors <strong>of</strong> the <strong>Textiles</strong><br />

Industry.<br />

● To augment the production <strong>of</strong><br />

fabrics at reasonable prices from<br />

the organised and decentralised<br />

sectors.<br />

●<br />

●<br />

To lay down guidelines for a planned<br />

and harmonious growth <strong>of</strong> various<br />

sectors with special emphasis on<br />

the development <strong>of</strong> the handlooms<br />

sector due to its large employment<br />

potential.<br />

To monitor the techno-economic<br />

status <strong>of</strong> the <strong>industry</strong> and to provide<br />

the requisite policy framework for<br />

modernization and rehabilitation.<br />

●<br />

●<br />

●<br />

To promote planned and harmonious<br />

growth <strong>of</strong> <strong>textiles</strong> by making available<br />

adequate fibres to all sectors.<br />

To promote technological upgradation<br />

for all types <strong>of</strong> <strong>textiles</strong> including<br />

technical <strong>textiles</strong>, jute, silk, cotton<br />

and <strong>wool</strong>.<br />

To promote skills <strong>of</strong> all textile workers,<br />

handloom weavers and handicrafts<br />

artisans, creation <strong>of</strong> new employment<br />

opportunities and development <strong>of</strong><br />

new designs to make these sectors<br />

economically sustainable.<br />

FUNCTIONAL AREAS<br />

●<br />

●<br />

●<br />

●<br />

●<br />

●<br />

●<br />

●<br />

The <strong>Textiles</strong> Policy & Coordination<br />

Apparel Industry<br />

The Man-made Fibre/Filament Yarn<br />

Industry<br />

The Cotton <strong>Textiles</strong> Industry<br />

The Jute Industry<br />

The Sericulture and Silk <strong>Textiles</strong><br />

Industry<br />

The Wool & Woollen <strong>Textiles</strong> Industry<br />

The Decentralized Powerlooms Sector<br />

25


ministry <strong>of</strong> <strong>textiles</strong><br />

●<br />

●<br />

●<br />

●<br />

●<br />

●<br />

●<br />

Export Promotion<br />

International Trade<br />

Handicrafts<br />

Handlooms<br />

Skill development Programme<br />

The Planning & Economic Analysis<br />

Budget & Finance matters<br />

1. ATTACHED OFFICES<br />

(i) The Office <strong>of</strong> the Development<br />

Commissioner for Handlooms, New<br />

Delhi<br />

The Office is headed by the Development<br />

Commissioner for Handlooms. It<br />

administers various schemes for the<br />

promotion and development <strong>of</strong> the<br />

handlooms sector and supplements the<br />

efforts <strong>of</strong> State Governments, Societies,<br />

NGOs, etc. Its subordinate organisations<br />

include Weavers’ Services Centres<br />

(WSCs), the Indian Institutes <strong>of</strong> Handloom<br />

Technology (IIHT) and the enforcement<br />

machinery for the implementation <strong>of</strong> the<br />

Handlooms (Reservation <strong>of</strong> Articles for<br />

Production) Act, 1985.<br />

(ii) The Office <strong>of</strong> the Development<br />

Commissioner for Handicrafts, New<br />

Delhi<br />

The <strong>of</strong>fice is headed by the Development<br />

Commissioner for Handicrafts. It administers<br />

various schemes and functions to promote<br />

the development and export <strong>of</strong> handicrafts,<br />

and supplements the efforts <strong>of</strong> State<br />

Governments by implementing various<br />

developmental schemes. It has six regional<br />

<strong>of</strong>fices at Mumbai, Kolkata, Lucknow,<br />

Chennai, Guwahati, and New Delhi.<br />

2. SUBORDINATE OFFICES<br />

(i)<br />

Office <strong>of</strong> the <strong>Textiles</strong> Commissioner,<br />

Mumbai<br />

The <strong>of</strong>fice <strong>of</strong> the Textile Commissioner<br />

(TXC) has its headquarters at Mumbai and<br />

eight regional <strong>of</strong>fices at Amritsar, Noida,<br />

Kanpur, Kolkata, Bengluru, Coimbatore,<br />

Navi Mumbai and Ahmedabad. The<br />

<strong>Textiles</strong> Commissioner acts as the<br />

principal technical advisor to the <strong>Ministry</strong>.<br />

The Office <strong>of</strong> <strong>Textiles</strong> Commissioner<br />

carries out techno-economic surveys<br />

and advises the government on the<br />

general economic health <strong>of</strong> the <strong>textiles</strong><br />

<strong>industry</strong>. The developmental activities <strong>of</strong><br />

the Office <strong>of</strong> the <strong>Textiles</strong> Commissioner<br />

centre around planning for the growth and<br />

development <strong>of</strong> the <strong>textiles</strong> sector. Of the<br />

forty four Powerloom Service Centres<br />

(PSCs) functioning throughout the country,<br />

fourteen are functioning under the<br />

administrative control <strong>of</strong> the <strong>Textiles</strong><br />

Commissioner. The <strong>of</strong>fice <strong>of</strong> TXC also<br />

coordinates and provides guidance to<br />

the remaining thirty Powerloom Service<br />

Centres, being run by the various<br />

<strong>Textiles</strong> Research Associations and<br />

State Government Agencies. The Office<br />

also implements and monitors various<br />

developmental and promotional schemes<br />

like the Technology Upgradation Fund<br />

Scheme (TUFS) for the modernization <strong>of</strong><br />

the <strong>Textiles</strong> and Jute <strong>industry</strong>, the <strong>Textiles</strong><br />

Workers Rehabilitation Fund Scheme<br />

(TWRFS).<br />

(ii) Office <strong>of</strong> the Jute Commissioner,<br />

Kolkata<br />

This <strong>of</strong>fice is headed by the Jute<br />

Commissioner and is entrusted with the<br />

responsibility <strong>of</strong> implementing the policies<br />

<strong>of</strong> the Government in the Jute sector. The<br />

Jute Commissioner acts as the principal<br />

technical adviser to the Government <strong>of</strong><br />

India, and gives technical advice to the<br />

<strong>Ministry</strong> on matters relating to the jute<br />

<strong>industry</strong>, including the jute machinery<br />

<strong>industry</strong>.<br />

3. ADVISORY BOARDS<br />

(i)<br />

All India Handicrafts Board<br />

The All India Handicrafts Board is an<br />

advisory body under the chairmanship<br />

<strong>of</strong> the Minister <strong>of</strong> <strong>Textiles</strong>, with the<br />

26


annual report 2011-12<br />

Development Commissioner (Handicrafts)<br />

as the Member Secretary. It gives its<br />

advice to the Government on matters<br />

pertaining to the development <strong>of</strong> the<br />

handicrafts sector.<br />

(ii) All India Powerlooms Board<br />

●<br />

●<br />

The Chairman <strong>of</strong> the Board is Textile<br />

Commissioner. It has 43 members<br />

including its Chairman.<br />

The term <strong>of</strong> the members <strong>of</strong> the Board<br />

is upto 31.3.2012 or until further<br />

orders, whichever is earlier.<br />

The All India Powerlooms Board was<br />

first constituted as an Advisory Board in<br />

November, 1981 and since then Govt. <strong>of</strong><br />

India has reconstituted the AIPB from time<br />

to time and has last reconstituted the AIPB<br />

for a period <strong>of</strong> two years on 22.12.2011.<br />

It has representatives <strong>of</strong> the Central and<br />

State Govt., Powerloom Federation/<br />

Associations <strong>of</strong> Powerloom Industry, as<br />

its members and is headed by the Hon’ble<br />

Union Minister <strong>of</strong> <strong>Textiles</strong> as the Chairman.<br />

The functions <strong>of</strong> the Board include<br />

advising the Government on matters<br />

concerning growth and development <strong>of</strong> the<br />

decentralized powerlooms sector.<br />

(iii) All India Handlooms Board<br />

The Board is an advisory body under<br />

the chairmanship <strong>of</strong> Minister <strong>of</strong> <strong>Textiles</strong>,<br />

with the Development Commissioner<br />

(Handlooms) as the Member-Secretary.<br />

The main function is to advise the<br />

Government on various aspects <strong>of</strong><br />

development <strong>of</strong> the handlooms sector.<br />

(iv) The Cotton Advisory Board<br />

The Cotton Advisory Board is headed<br />

by the <strong>Textiles</strong> Commissioner and is a<br />

representative body <strong>of</strong> various interest<br />

groups like Government agencies, Cotton<br />

Growers, <strong>Textiles</strong> Industry, and Trade.<br />

It advises the Government, generally,<br />

on matters pertaining to the production,<br />

consumption, and marketing <strong>of</strong> cotton,<br />

and also provides a forum for liaison<br />

among various stakeholders.<br />

(v) Cotton Yarn Advisory Board<br />

●<br />

Cotton Yarn Advisory Board was<br />

constituted vide Gazette notification<br />

No. 9/4/2010-TUFS dated 12.7.2010.<br />

Terms <strong>of</strong> Reference<br />

● To monitor the domestic and<br />

international prices <strong>of</strong> cotton yarn<br />

and suggest measures for increasing<br />

the availability <strong>of</strong> cotton yarn at<br />

reasonable prices for domestic<br />

consumption.<br />

●<br />

●<br />

To advise the Government on matters<br />

pertaining to production, consumption<br />

and availability <strong>of</strong> different types <strong>of</strong><br />

cotton yarn at reasonable prices for<br />

domestic consumption.<br />

To monitor the import and export <strong>of</strong><br />

cotton yarn and prepare the cotton<br />

yarn balance sheet.<br />

(vi) Jute Advisory Board<br />

The Jute Advisory Board headed by<br />

the Jute Commissioner advises the<br />

Government on matters pertaining to<br />

jute falling within the purview <strong>of</strong> Jute<br />

and Jute <strong>Textiles</strong> Control Order 2002,<br />

including production estimates <strong>of</strong> jute<br />

and mesta.<br />

4. REGISTERED SOCIETIES<br />

(i)<br />

Central Wool Development Board<br />

(CWDB), Jodhpur<br />

The Central Wool Development Board<br />

(CWDB), Jodhpur was constituted by the<br />

Government <strong>of</strong> India, <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong><br />

in 1987 under the Rajasthan Societies<br />

Registration Act, 1958 to promote the<br />

growth and overall development <strong>of</strong> <strong>wool</strong><br />

and the <strong>wool</strong>en <strong>textiles</strong> <strong>industry</strong> in the<br />

country. The Board administers various<br />

projects and programmes through the<br />

State Governments and Non-Government<br />

Organisations (NGOs). The Board was<br />

27


ministry <strong>of</strong> <strong>textiles</strong><br />

reconstituted on November 22, 2010 for a<br />

period <strong>of</strong> two years.<br />

(ii) Sardar Vallabhbhai Patel International<br />

School <strong>of</strong> <strong>Textiles</strong> & Management<br />

(SVPISTM), Coimbatore.<br />

SVPITSM was set-up on December 24,<br />

2002, as a premier National level Institute<br />

for <strong>Textiles</strong> Management at Coimbatore,<br />

Tamil Nadu, to prepare the Indian <strong>textiles</strong><br />

<strong>industry</strong> to face the challenges <strong>of</strong> post-<br />

Multi Fibre Agreement era and establish<br />

it as a leader in the global <strong>textiles</strong> trade.<br />

The Board <strong>of</strong> the institute consists <strong>of</strong><br />

nineteen members and a Chairman<br />

including representative <strong>of</strong> the Industry<br />

and eminent personalities from the field<br />

<strong>of</strong> academics, was reconstituted on April<br />

12, 2010, for a period <strong>of</strong> three years.<br />

5. STATUTORY BODIES<br />

(i) National Jute Board<br />

The National Jute Board is the apex<br />

organisation for coordinating and<br />

synergising the functions <strong>of</strong> all jute related<br />

Organisations and a focal point for all jute<br />

related activities. The National Jute Board<br />

is also responsible for implementation<br />

<strong>of</strong> the Jute Technology Mission in a<br />

centralized and coordinated manner and<br />

helps in speedily resolving the ills <strong>of</strong> Jute<br />

Industry in the matters <strong>of</strong> diversification<br />

and marketing <strong>of</strong> Jute Products as well<br />

as modernisation <strong>of</strong> Jute Mills. National<br />

Jute Board have a membership <strong>of</strong> 34<br />

persons, <strong>of</strong> which 15 will be Government<br />

representatives from Central Government<br />

and State Governments having stake in<br />

production and promotion <strong>of</strong> Jute Products<br />

and 19 Members from private jute<br />

related sector i.e. jute farmers, growers,<br />

research association, small and medium<br />

enterprises as well as here Members<br />

<strong>of</strong> Parliament. The Headquarters <strong>of</strong> the<br />

National Jute Board is in Kolkata, with<br />

regional representations in Jute growing<br />

areas and in other areas for marketing <strong>of</strong><br />

the jute products.<br />

(ii) The Central Silk Board (CSB),<br />

Bangalore<br />

The Central Silk Board is a statutory<br />

body, and it was constituted by an Act <strong>of</strong><br />

Parliament (LXI <strong>of</strong> 1948), with the objective<br />

<strong>of</strong> promoting the growth and development<br />

<strong>of</strong> Sericulture in the country. These<br />

programmes are primarily formulated and<br />

implemented by the State Sericulture/<br />

<strong>Textiles</strong> Departments. However, the Central<br />

Silk Board supplements the efforts <strong>of</strong> the<br />

States by providing necessary support for<br />

research and development, and extension<br />

and training through its countrywide<br />

network <strong>of</strong> centres. Besides, the Central<br />

Silk Board organises the production and<br />

supply <strong>of</strong> quality silkworm seeds, Mulberry<br />

cuttings, etc., and also implements various<br />

Sericulture projects <strong>of</strong> the Government <strong>of</strong><br />

India directly, as well as, jointly with the<br />

State sericulture Departments. The Board<br />

constitutes <strong>of</strong> 39 members including a<br />

chairman & ex-<strong>of</strong>ficio vice chairman and 2<br />

permanent invitees.<br />

(iii) <strong>Textiles</strong> Committee, Mumbai<br />

The <strong>Textiles</strong> Committee was established<br />

on July, 1964 under the <strong>Textiles</strong><br />

Committee Act, 1963, with the objective<br />

<strong>of</strong> ensuring the quality <strong>of</strong> <strong>textiles</strong> from<br />

both the internal and export markets. Its<br />

functions include the promotion <strong>of</strong> <strong>textiles</strong>,<br />

<strong>textiles</strong> exports, research in technical and<br />

economic fields, establishing standards<br />

for <strong>textiles</strong> and <strong>textiles</strong> machinery, setting<br />

up <strong>of</strong> laboratories, and data collection<br />

located throughout the country. The<br />

<strong>Textiles</strong> Committee, in addition to its<br />

headquarters at Mumbai, has thirty<br />

Offices to assist the <strong>industry</strong> and trade<br />

in testing their products. The Committee<br />

has the following functional divisions at<br />

its Headquarters in Mumbai : (1) <strong>Textiles</strong><br />

28


annual report 2011-12<br />

Inspectorate Wing (2) <strong>Textiles</strong> Laboratory<br />

Wing (3) Market Research Wing (4) ISO<br />

Wing (5) Vigilance Cell (6) Accounts Wing,<br />

and (7) Administration and Coordination<br />

Wing.<br />

(iv) Commissioner <strong>of</strong> Payments (COP),<br />

New Delhi<br />

The Office <strong>of</strong> Commissioner <strong>of</strong> Payments<br />

with its headquarters at Delhi, is a statutory<br />

authority, set up under Section 17(1) <strong>of</strong> the<br />

Sick <strong>Textiles</strong> Undertakings (Nationalisation)<br />

Act, 1974, Section 15(1) <strong>of</strong> the Swadeshi<br />

Cotton Mills Company Ltd. (Acquisition<br />

and Transfer <strong>of</strong> Undertakings) Act, 1986,<br />

and also under Section 17(1) <strong>of</strong> the <strong>Textiles</strong><br />

Undertakings (Nationalisation) Act, 1995.<br />

The Commissioner <strong>of</strong> Payments disburses<br />

the amount placed at his disposal to<br />

the owners <strong>of</strong> each <strong>textiles</strong> undertaking<br />

nationalized by the aforesaid three Acts.<br />

(v) The National Institute <strong>of</strong> Fashion<br />

Technology (NIFT), New Delhi<br />

The National Institute <strong>of</strong> Fashion<br />

Technology was set up in 1986 as an<br />

autonomous Society in collaboration<br />

with the Fashion Institute <strong>of</strong> Technology<br />

(FIT), New York, to prepare and train<br />

pr<strong>of</strong>essionals to meet the requirements<br />

<strong>of</strong> the <strong>textiles</strong> <strong>industry</strong>. The Government<br />

brought into force the National Institute <strong>of</strong><br />

Fashion Technology Act, 2006 on July 14,<br />

2006. This Act provides statutory status<br />

to the Institute, and formally recognizes<br />

its leadership in the fashion technology<br />

sector. The Act empowers NIFT to<br />

award degrees to its students from 2007<br />

onwards. The President <strong>of</strong> India is the<br />

Visitor <strong>of</strong> the Institute. The Institute has<br />

pioneered the evolution <strong>of</strong> the fashion<br />

business education across the country<br />

through centres at New Delhi, Bangaluru,<br />

Chennai, Gandhinagar, Hyderabad,<br />

Kolkata, Mumbai, Kannur, Patna, Shillong,<br />

Kangra, Bhopal, Rae Bareli, Bhubneswar<br />

and Jodhpur.<br />

6. THE RIGHT TO INFORMATION<br />

ACT, 2005<br />

To promote openness, transparency<br />

and accountability in administration<br />

and provide the right to every citizen to<br />

secure access to information under the<br />

control <strong>of</strong> Public Authorities, the Right to<br />

Information Act has come into effect for<br />

implementation w.e.f. October 12, 2005.<br />

The Act marks the beginning <strong>of</strong> a new<br />

era in the approach <strong>of</strong> the Government<br />

where openness shall now be the rule<br />

and secrecy an exception. Every Citizen<br />

can obtain the information they desire<br />

by submission <strong>of</strong> an application and by<br />

paying a nominal charge as an application<br />

fee, to the Central Public Information<br />

Officer designated by the public authority<br />

for the purpose under the Act. This <strong>Ministry</strong><br />

has designated <strong>of</strong>ficers as Central Public<br />

Information Officers (CPIOs) and Appellate<br />

Authorities. The <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong>, as well<br />

as, its Attached & Subordinate Offices,<br />

Autonomous & Statutory Bodies and Public<br />

Sector Undertakings have completed<br />

the action for setting up <strong>of</strong> the necessary<br />

infrastructure for implementation <strong>of</strong> the<br />

Act. <strong>Ministry</strong> monitors the implementation<br />

<strong>of</strong> the Act by the organizations under the<br />

<strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong>.<br />

7. PUBLIC GRIEVANCE REDRESSAL<br />

MACHINERY IN THE MINISTRY<br />

The Department <strong>of</strong> Administrative Reforms<br />

and Public Grievances issues instructions<br />

and guidelines to establish, activate,<br />

and strengthen the Centralized Public<br />

Grievances Redressal and Monitoring<br />

System (CPGRAMS) in the Ministries,<br />

Departments, and other Organisations <strong>of</strong><br />

the Government <strong>of</strong> India. In pursuance<br />

<strong>of</strong> these instructions/guidelines, online<br />

CPGRAMS has been introduced in the<br />

<strong>Ministry</strong>. Similar arrangements are also<br />

being made in each <strong>of</strong> the attached/<br />

subordinate <strong>of</strong>fices <strong>of</strong> the <strong>Ministry</strong> <strong>of</strong><br />

<strong>Textiles</strong>. A Grievance Committee under<br />

the Chairmanship <strong>of</strong> a Joint Secretary has<br />

29


een formed to monitor the functioning <strong>of</strong><br />

CPGRAMS in the <strong>Ministry</strong>, as well as in<br />

attached and subordinate organizations.<br />

If need be, the files relating to pending<br />

grievances are called and cases are settled<br />

by the Committee in its meetings. The<br />

<strong>Ministry</strong> has taken, the following steps to<br />

strengthen the CPGRAMS<br />

●<br />

●<br />

●<br />

●<br />

Time Norms for the disposal <strong>of</strong><br />

grievance cases have been fixed,<br />

and the same have been circulated<br />

and displayed at prominent places <strong>of</strong><br />

the building:<br />

Acknowledgement to complainant<br />

within seven days;<br />

Final disposal within two months.<br />

Publicity about the CPGRAMS in the<br />

media.<br />

●<br />

●<br />

●<br />

●<br />

ministry <strong>of</strong> <strong>textiles</strong><br />

The Citizens Charter has been<br />

formulated and hosted on the<br />

Website.<br />

Details about the CPGRAMS have<br />

also been placed on the Website <strong>of</strong><br />

the <strong>Ministry</strong> (texmin.nic.in).<br />

An Information & Facilitation Counter<br />

has been established at Gate No.14,<br />

Udyog Bhawan, New Delhi, to make<br />

information readily available to the<br />

public.<br />

A complaint box has been kept at the<br />

Information & Facilitation Counter.<br />

The list <strong>of</strong> Officers handling Public/<br />

Staff Grievances in the <strong>Ministry</strong> <strong>of</strong><br />

<strong>Textiles</strong> and its Attached/Subordinate<br />

Offices is available at the website <strong>of</strong><br />

the <strong>Ministry</strong>.<br />

Table 2.1<br />

List <strong>of</strong> Officers handling public/staff grievance in the <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong> and its<br />

Attached/Subordinate Offices<br />

Sl.<br />

No.<br />

Offices<br />

Public /Staff<br />

Grievances Officers<br />

1. <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong> Ms. Sunaina Tomar<br />

Joint Secretary<br />

(Public Grievances)<br />

2. Development<br />

Commissioner<br />

(Handicraft)<br />

3. Development<br />

Commissioner<br />

(Handloom)<br />

4. Office <strong>of</strong> Textile<br />

Commissioner, Mumbai<br />

5. Office <strong>of</strong> Jute<br />

Commissioner, Kolkata<br />

Shri S.S. Gupta,<br />

Development<br />

Commissioner<br />

(Handicraft).<br />

Ms.Meenu Satish<br />

Kumar<br />

Addl.Development<br />

Commissioner<br />

(Handloom)<br />

Shri S. Balaraju,<br />

Joint Textile<br />

Commissioner(P)<br />

Ms. Arti Kanwar,<br />

Deputy Jute<br />

Commissioner<br />

Address & Telephone<br />

Room No. 271 , Udyog Bhawan, New Delhi<br />

Tel: 23061826,<br />

e-mail: sunaina.tomar@nic.in<br />

West block-7, R.K.Puram, New Delhi-110066<br />

Tel- 011-6106902, 6103562<br />

Fax:6163085<br />

e-mail: ssgupta234@yahoo.com<br />

Office <strong>of</strong> DC (Handloom)<br />

Udyog Bhawan, New Delhi 110011<br />

Tel- 011 23061976<br />

Fax: 23063511<br />

e-mail: meenu.sk@nic.in<br />

New C.G.O. Building,<br />

48, New Marine Lines,<br />

Mumbai-400 020.<br />

e-mail: textilec@ gmail.com<br />

2203 4134/22014554<br />

C.G.O. Complex, 3 rd MSO Building, 4 th Floor, DF<br />

Block, Salt Lake City, Kolkata – 700064.<br />

Tel:+91(33)23376979 / 80 Fax:+91(33)23376972 /<br />

6973 / 6974<br />

e-mail: jccal@vsnl.com<br />

Website: www.jutecomm.gov.in<br />

30


annual report 2011-12<br />

Table 2.2<br />

LIST OF ORGANISATIONS UNDER THE MINISTRY OF TEXTILES<br />

(EXCEPT ATTACHED/SUBORDINATE OFFICES)<br />

Public sector<br />

Undertakings<br />

<strong>Textiles</strong> Research<br />

Associations<br />

Advisory<br />

Body<br />

Registered<br />

Society<br />

Statutory Bodies<br />

1. Birds Jute Export<br />

Ltd. (BJEL), Kolkata<br />

1. Ahmedabad <strong>Textiles</strong><br />

Industry’s Research<br />

Association (ATIRA),<br />

Ahmedabad<br />

1. All India<br />

Handloom<br />

Board<br />

1. Central Wool<br />

Development<br />

Board (CWDB),<br />

Jodhpur<br />

1. Central Silk<br />

Board (CSB),<br />

Bangalore<br />

2. British India<br />

Corporation(BIC)<br />

2. Bombay <strong>Textiles</strong><br />

Research Association<br />

(BTRA), Mumbai<br />

2. All India<br />

Handicrafts<br />

Board<br />

2. Sardar<br />

Vallabhbhai Patel<br />

International<br />

School <strong>of</strong> <strong>Textiles</strong><br />

& Management<br />

(SVPISTM),<br />

Coimbatore<br />

2. Commossioner<br />

<strong>of</strong> Payments,<br />

(COP) New Delhi<br />

3. Central Cottage<br />

Industries<br />

Corporation <strong>of</strong> India<br />

Ltd. (CCIC), New<br />

Delhi<br />

3. Indian Jute<br />

Industries Research<br />

Association (IJIRA),<br />

Kolkata<br />

3. All India<br />

Powerloom<br />

Board<br />

3. National Jute<br />

Board, Kolkata.<br />

4. The Cotton<br />

Corporation <strong>of</strong> India<br />

Ltd. (CCI), Mumbai<br />

4. Man-Made <strong>Textiles</strong><br />

Research Association<br />

(MANTRA), Surat<br />

4. Coordination<br />

council for<br />

<strong>Textiles</strong><br />

Research<br />

Associations<br />

4. Textile<br />

Committee,<br />

Mumbai<br />

5. The Handicrafts &<br />

Handlooms Exports<br />

Corporation <strong>of</strong> India<br />

Ltd.(HHEC), New<br />

Delhi<br />

5. Northern India<br />

Textile Research<br />

Association (NITRA),<br />

Gaziabad<br />

5. Cotton<br />

Advisory<br />

Board<br />

5. National<br />

Institute <strong>of</strong> Fashion<br />

Technology (NIFT),<br />

New Delhi<br />

6. The Jute<br />

Corporation <strong>of</strong><br />

India Limited (JCI),<br />

Kolkata<br />

6. South India<br />

<strong>Textiles</strong> Research<br />

Association(SITRA),<br />

Coimbatore<br />

6. Jute<br />

Advisory<br />

Board<br />

7. National<br />

Handloom<br />

Development<br />

Corporation(NHDC),<br />

Lucknow<br />

7. Synthetic and Art<br />

Silk Mills Research<br />

Association(SASMIRA)<br />

8. National Jute<br />

Manufactures<br />

Corporation(NJMC),<br />

Kolkata<br />

8. Wool Research<br />

Association(WRA),<br />

Thane<br />

9. National <strong>Textiles</strong><br />

Corporation Ltd.<br />

(NTC), New Delhi<br />

31


ministry <strong>of</strong> <strong>textiles</strong><br />

There are 11 (Eleven) <strong>Textiles</strong> Export<br />

Promotion Councils representing various<br />

Section <strong>of</strong> the <strong>Textiles</strong> & Clothing <strong>industry</strong><br />

which function in association with various<br />

Ministries and Departments to promote<br />

exports <strong>of</strong> their sectoral products and<br />

enhance trade in the global market.<br />

The <strong>Textiles</strong> Export promotion Councils<br />

are:<br />

1. Apparel Export Promotion Council<br />

(AEPC), New Delhi<br />

2. Carpet Export Promotion Council<br />

(CEPC), New Delhi<br />

3. Cotton <strong>Textiles</strong> Export Promotion<br />

Council (TEXPROCIL), Mumbai<br />

4. Export Promotion Council for<br />

Handicrafts (EPCH), New Delhi<br />

5. Handlooms Export Promotion Council<br />

(HEPC), Chennai<br />

6. Indian Silk Export Promotion Council<br />

(ISEPC), Mumbai<br />

7. Powerlooms Development & Export<br />

Promotion Council (PDEXCIL),<br />

Mumbai<br />

8. Synthetic and Rayon <strong>Textiles</strong> Export<br />

Promotion Council (SRTEPC),<br />

Mumbai<br />

9. Wool and Woolen Export Promotion<br />

Council (WWEPC), New Delhi<br />

10. Wool Industry Export Promotion<br />

Council (WOOLTEXPRO), Mumbai<br />

11. Jute Products Development & Export<br />

Promotion Council (JPDEPC).<br />

******<br />

32


annual report 2011-12<br />

CHAPTER III<br />

THE ORGANIZED TEXTILES<br />

MILL INDUSTRY<br />

33


34<br />

ministry <strong>of</strong> <strong>textiles</strong>


annual report 2011-12<br />

CHAPTER III<br />

THE ORGANIZED TEXTILES MILL INDUSTRY<br />

The Cotton / Man-made fibre textile<br />

<strong>industry</strong> is the largest organized<br />

<strong>industry</strong> in the country in terms <strong>of</strong><br />

employment (nearly 1 million workers) and<br />

number <strong>of</strong> units. Besides, there are a large<br />

number <strong>of</strong> subsidiary industries dependent<br />

on this sector, such as those manufacturing<br />

machinery, accessories, stores, ancillaries,<br />

dyes & chemicals. As on 30.11.2011,<br />

there were 1946 cotton/man-made fibre<br />

textile mills (non-SSI) in the country with an<br />

installed capacity <strong>of</strong> 43.13 million spindles<br />

5,20,000 rotors and 52,000 looms.<br />

Textile production covering man-made<br />

fibre, man-made filament yarn and<br />

cotton yarn is showing a decreasing<br />

trend. Blended and 100% non cotton<br />

yarn production recorded an increase<br />

<strong>of</strong> 5.2% during 2011-12 (April – October<br />

2011). The production <strong>of</strong> spun yarn<br />

during April-Oct. (2011-12) has shown<br />

a decrease <strong>of</strong> 8.1%. The production<br />

<strong>of</strong> cotton yarn during 2011-12 (April-<br />

Oct.) recorded a decrease <strong>of</strong> 12.7%<br />

(Provisional).<br />

Cloth production by mill sector showed<br />

marginal increase <strong>of</strong> 4.6% during<br />

April-Oct. (2011-12) (provisional). During<br />

the same period cloth production by<br />

power loom and hosiery sector showed a<br />

decrease <strong>of</strong> 4.4% and 17.8% respectively.<br />

However the cloth production in handloom<br />

sector showed an increase <strong>of</strong> 3%.<br />

CAPACITY<br />

There were 1946 cotton/man-made fibre<br />

textile mills (non-SSI) in the country with<br />

an installed capacity <strong>of</strong> 43.13 million<br />

spindles 5,20,000 rotors and 52,000<br />

looms as on 30.11.2011.<br />

CAPACITY UTILISATION IN THE<br />

MILL SECTOR<br />

The capacity utilization in the spinning<br />

sector <strong>of</strong> the organized textile mill <strong>industry</strong><br />

ranged between 80 to 90 % while the<br />

capacity utilization in the weaving sector <strong>of</strong><br />

the organized textile mill <strong>industry</strong> ranged<br />

between 41 to 62 %.<br />

PRODUCTION OF SPUN YARN<br />

The contribution from the SSI sector has<br />

been about 10% in the total spun yarn<br />

production. A statement showing the<br />

production <strong>of</strong> spun yarn (including SSI<br />

units) during the last few years is given at<br />

table 3.1.<br />

Table 3.1<br />

Year Cotton Yarn Blended Yarn and 100% noncotton<br />

Total Spun Yarn<br />

yarn<br />

2005-06 2521 937 3458<br />

2006-07 2824 989 3813<br />

2007-08 2948 1055 4003<br />

2008-09 2896 1016 3912<br />

2009-10 3079 1114 4193<br />

2010-11 3490 1223 4713<br />

2011-12 (April-Oct 11) 1785 730 2515<br />

P-provisional<br />

35


ministry <strong>of</strong> <strong>textiles</strong><br />

SICKNESS/CLOSURE OF TEXTILE<br />

MILLS<br />

The incidence <strong>of</strong> sickness and closure in<br />

the organized <strong>textiles</strong> <strong>industry</strong> is a matter<br />

<strong>of</strong> concern. <strong>Textiles</strong> being the oldest and<br />

the largest <strong>industry</strong> <strong>of</strong> the country, it is<br />

but natural that at any given point <strong>of</strong> time<br />

some <strong>textiles</strong> units could be lying sick /<br />

closed. One main reason <strong>of</strong> sickness<br />

is structural transformation resulting in<br />

the composite units in the organized<br />

sector losing ground to power looms in<br />

the decentralised sector, on account <strong>of</strong><br />

the latter’s greater cost effectiveness.<br />

Other causes <strong>of</strong> sickness/ closure <strong>of</strong><br />

the <strong>industry</strong> include low productivity due<br />

to lack <strong>of</strong> modernisation, stagnation in<br />

demand and inability <strong>of</strong> some units to<br />

expand in the export market, increase in<br />

the cost <strong>of</strong> inputs, difficulties in getting<br />

timely and adequate working capital and<br />

the availability <strong>of</strong> power, labour disputes,<br />

excess capacity, failure to diversify in<br />

emerging areas, poor management, etc.<br />

The details <strong>of</strong> closure <strong>of</strong> cotton/man-made<br />

fibre textile mills is given at table 3.2.<br />

PRODUCTION OF CLOTH &<br />

EMPLOYMENT GENERATION<br />

The weaving capacity in the organized<br />

sector, along with the number <strong>of</strong> composite<br />

textile mills, however, has stagnated,<br />

because the past Government policy<br />

permitted only marginal expansion in<br />

weaving capacity in the organized mill<br />

sector. Even after the removal <strong>of</strong> restrictions<br />

in the Textile Policy <strong>of</strong> 1985, weaving<br />

capacity has been consistently declining.<br />

This is attributable to the structural<br />

transformation in the <strong>industry</strong>, leading to<br />

the de-linking <strong>of</strong> weaving from spinning<br />

and the emergence <strong>of</strong> the decentralized<br />

powerloom sector. In the organized sector<br />

the loom age capacity has declined from<br />

1.23 lakh in March, 2000 to 0.86 lakh in<br />

March, 2005, and to 0.56 lakh in March<br />

2008 and the same further declined to 0.52<br />

lakh in 2011.<br />

Over the years, production <strong>of</strong> cloth in the<br />

mill sector is showing a steady growth<br />

since 2003-04 onwards and was 2016<br />

million sq. meter in 2009-10. The total<br />

production <strong>of</strong> cloth by all sectors i.e. mill,<br />

powerloom, handloom, hosiery and khadi,<br />

<strong>wool</strong> and silk has shown an upward trend<br />

in recent years. The Cloth production<br />

in 2010-11 is 59525 mn. sq. mtrs.<br />

(Provisional). The cloth production during<br />

April-Oct (2011-12) showed a decrease<br />

by 6.5% (provisional).<br />

The production <strong>of</strong> cloth in different sectors<br />

<strong>of</strong> <strong>textiles</strong> is given at table 3.3.<br />

Table 3.2<br />

Year No. <strong>of</strong> Spinning Mills No .<strong>of</strong> composite Mills Total<br />

2001-02 295 126 421<br />

2002-03 349 134 483<br />

2003-04 374 94 468<br />

2004-05 376 99 475<br />

2005-06 387 96 483<br />

2006-07 380 87 467<br />

2007-08 318 63 381<br />

2008-09 339 64 403<br />

2009-10 365 68 433<br />

2010-11 471 82 552<br />

2011-12<br />

(As on 31.8.2011)<br />

470 85 555<br />

36


annual report 2011-12<br />

MILL SECTOR<br />

Table 3.3.<br />

PRODUCTION OF CLOTH IN DIFFERENT SECTORS<br />

Item 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11<br />

(P)<br />

(in million sqmeter)<br />

2011-12<br />

(April-Oct)<br />

Cotton 1072 1192 1305 1249 1259 1465 1604 986<br />

Blended 243 252 330 422 426 482 526 310<br />

100% Non Cotton 211 212 111 110 111 69 75 42<br />

Total 1526 1656 1746 1781 1796 2016 2205 1339<br />

HANDLOOMS SECTOR<br />

Cotton 4792 5236 5717 6076 5840 5857 6016 3548<br />

Blended 146 145 99 123 118 137 143 74<br />

100% Non Cotton 784 727 720 748 719 812 790 446<br />

Total 5722 6108 6536 6947 6677 6806 6949 4068<br />

DECENTRALISED POWERLOOMS SECTOR<br />

Cotton 7361 8821 9647 9923 9621 10128 11852 6729<br />

Blended 4526 4632 5025 4918 4764 5487 5853 3554<br />

100% Non Cotton 16438 17173 18207 19884 19263 21382 20224 11172<br />

Total 28325 30626 32879 34725 33648 36997 37929 21454<br />

DECENTRALISED HOSIERY SECTOR<br />

Cotton 7430 8624 9569 9948 10178 11464 12270 5952<br />

Blended 1117 1269 1428 1425 1458 1661 1756 897<br />

100% Non Cotton 565 525<br />

507<br />

431<br />

441<br />

577 620 383<br />

Total 9112 10418 11504 11804 12077 13702 14646 7232<br />

ALL SECTORS<br />

Cotton 20655 23873 26238 27196 26898 28914 31742 17214<br />

Blended 6032 6298 6882 6888 6766 7767 8278 4836<br />

100% Non Cotton 17998 18637 19545 21173 20534 22840 21710 12044<br />

Total 44685 48808 52665 55257 54198 59521 61730 34094<br />

Khadi, Wool & Silk 693 769 724 768 768 812 812 476<br />

Grand Total 45378 49577 53389 56025 54966 60333 62542 34570<br />

P = Provisional<br />

37


ministry <strong>of</strong> <strong>textiles</strong><br />

The employment generation in cotton/<br />

man-made fibre /Yarn Textile Mill Sector<br />

(including SSI spinning and excluding<br />

weaving units) textile <strong>industry</strong> projected<br />

for the terminal year <strong>of</strong> the 11 th plan is<br />

1.40 million numbers.<br />

TECHNOLOGY UPGRADATION<br />

FUND SCHEME (TUFS)<br />

The Technology Upgradation Fund<br />

Scheme (TUFS) was launched on 01.04<br />

1999, for a period <strong>of</strong> five years, and was<br />

subsequently extended upto March 31,<br />

2007. The Scheme provides for interest<br />

reimbursement/capital subsidy/Margin<br />

Money subsidy and has been devised<br />

to bridge the gap between the cost <strong>of</strong><br />

interest and the capital component to<br />

ease up the working capital requirement<br />

and to reduce the transaction cost, etc.<br />

The Scheme is an important tool to infuse<br />

financial support to the <strong>textiles</strong> <strong>industry</strong><br />

and help it capitalize on the vibrant and<br />

expanding global and domestic markets,<br />

through technology upgradation, cost<br />

effectiveness, quality production,<br />

efficiency and global competitiveness.<br />

During its initial years, the progress <strong>of</strong><br />

the Scheme was moderate and it gained<br />

momentum from 2004-05 onwards. The<br />

Scheme has been further extended<br />

till 2012 with modified financial and<br />

operational parameters which focus<br />

on additional capacity building, better<br />

adoption <strong>of</strong> technology, and provides for<br />

a higher level <strong>of</strong> assistance to segments<br />

that have a larger potential for growth,<br />

like garmenting, technical <strong>textiles</strong>, and<br />

processing. The scheme is administered<br />

through 3 nodal agencies, 36 nodal banks<br />

and 108 co-opted PLIs. The scheme<br />

since inception has propelled investment<br />

<strong>of</strong> more than Rs. 2,10,000 crores. An<br />

amount <strong>of</strong> Rs. 13637.53 crore has been<br />

released towards subsidy under the<br />

Scheme as on 31.10.2011.<br />

With effect from 28.04.2011, Restructured<br />

TUFS has been approved with the<br />

enhanced 11 th Plan allocation under TUFS<br />

from Rs. 8000 crore to Rs. 15404 crore.<br />

The Restructured TUFS ensure focus <strong>of</strong><br />

interventions on hitherto slow growing<br />

sectors like weaving, encouragement<br />

to forward integration and tighter<br />

administrative controls and monitoring <strong>of</strong><br />

the scheme. The Restructured TUFS is<br />

expected to trigger additional investments<br />

<strong>of</strong> over Rs. 46,900 crore during the<br />

balance period <strong>of</strong> the XI th Five Year Plan.<br />

Progress <strong>of</strong> TUFS<br />

The progress <strong>of</strong> TUFS is steadily going<br />

up which is evident from the data given<br />

at table 3.4.<br />

Progress <strong>of</strong> (20% CLCS)<br />

20% Credit Linked Capital Subsidy<br />

Scheme under CLCS-TUFS for power<br />

loom units had been launched on 6 th<br />

November 2003. Under the scheme,<br />

Rs. 223.27 crores has been disbursed<br />

to 3033 cases as on 30.11.2011 as per<br />

details given at table 3.5.<br />

SCHEME FOR INTEGRATED<br />

TEXTILE PARKS (SITP)<br />

Scheme for Integrated <strong>Textiles</strong> Parks<br />

was approved in the 10th Five Year Plan<br />

to provide the <strong>industry</strong> with world-class<br />

infrastructure facilities for setting up their<br />

textile units by merging the erstwhile<br />

‘Apparel Parks for Exports Scheme<br />

(APES)’ and ‘Textile Centre Infrastructure<br />

Development Scheme (TCIDS)’.<br />

Scope <strong>of</strong> the Scheme<br />

The scheme targets industrial clusters/<br />

locations with high growth potential,<br />

which require strategic interventions<br />

by way <strong>of</strong> providing world-class<br />

infrastructure support. The project cost<br />

covers the cost <strong>of</strong> common infrastructure<br />

38


annual report 2011-12<br />

Table 3.4<br />

Period Received Sanctioned Disbursed<br />

No. <strong>of</strong><br />

applications<br />

Project<br />

Cost<br />

No. <strong>of</strong><br />

applications<br />

Project<br />

Cost<br />

Amount<br />

No. <strong>of</strong><br />

applications<br />

(Rs. in crore)<br />

Amount<br />

Subsidy<br />

1999-2000 407 5771 309 5074 2421 179 746 1<br />

2000-2001 719 6296 616 4380 2090 494 1863 70<br />

2001-2002 472 1900 444 1320 630 401 804 198.89<br />

2002-2003 494 1835 456 1438 839 411 931 202.59<br />

2003-2004 867 3356 884 3289 1341 814 856 249.06<br />

2004-2005 986 7941 986 7349 2990 801 1757 283.60<br />

2005-2006 1086 16194 1078 15032 6776 993 3962 485<br />

2006-2007 12336 61063 12589 66233 29073 13168 26605 823.92<br />

2007-2008 2408 21254 2260 19917 8058 2207 6854 1143.37<br />

2008-2009<br />

6113 56542 6072 55707 24007 6111 21826 2632.00<br />

(P)<br />

2009-2010 2384 28005 2352 27611 6612 2361 8140 2886<br />

2010-11 (Upto<br />

June 2010) P)<br />

As on<br />

30.06.2010(P)<br />

256 397 256 397 254 240 282 2784.18<br />

28528 210554 28302 207747 85091 28180 74627 11759.61<br />

Sr.<br />

No<br />

Year<br />

Table 3.5<br />

No. <strong>of</strong> units<br />

Amount <strong>of</strong> subsidy released<br />

(Rs. in crore)<br />

1 2003- 2004 004 00.10<br />

2 2004-2005 150 06.00<br />

3 2005-2006 368 23.00<br />

4 2006-2007 958 68.89<br />

5. 2007-2008 436 35.92<br />

6 2008-2009 404 32.48<br />

7 2009-2010 363 30.57<br />

8 2010-11 233 17.72<br />

9 2011-12<br />

(As on 30.11.2011)<br />

117 8.59<br />

TOTAL 3033 223.27<br />

and buildings for production/support<br />

activities, depending on the needs <strong>of</strong> the<br />

ITP. There will be flexibility in setting up<br />

ITPs to suit the local requirements.<br />

This scheme is implemented through<br />

Special Purpose Vehicles (SPVs),<br />

where Industry Associations/Group <strong>of</strong><br />

Entrepreneurs are the main promoters<br />

39


ministry <strong>of</strong> <strong>textiles</strong><br />

<strong>of</strong> the Integrated Textile Park (ITP). At<br />

each ITP, there would be a separate<br />

Special Purpose Vehicle (SPV) formed<br />

with the representatives <strong>of</strong> local Industry,<br />

Financial Institutions, State and Central<br />

Government. SPV shall invariably be<br />

a Corporate Body registered under the<br />

Companies Act. Any different structure<br />

for the SPV requires the approval <strong>of</strong> the<br />

Project Approval Committee. The SPVs<br />

shall have operational autonomy so that<br />

they do not become surrogate Public<br />

Sector Enterprises or be controlled by<br />

Central/State Governments.<br />

The components <strong>of</strong> an ITP are broadly<br />

divided in the following groups:-<br />

(a) Group A - Land.<br />

(b) Group B – Common Infrastructure<br />

like compound wall, roads,<br />

drainage, water supply, electricity<br />

supply including captive power<br />

plant, effluent treatment plant, and<br />

telecommunication lines etc.<br />

(c) Group C – Buildings for common<br />

facilities like testing laboratory, design<br />

center, training center, trade center/<br />

display center, ware housing facility/<br />

raw material depot, crèche, canteen,<br />

workers hostel, <strong>of</strong>fices <strong>of</strong> service<br />

providers, labour rest and recreation<br />

facilities etc.<br />

(d) Group D – Factory buildings for<br />

production purposes.<br />

(e) Group E- Plant & machinery.<br />

The total Project Cost for the purpose <strong>of</strong><br />

this Scheme includes the cost on account<br />

<strong>of</strong> components <strong>of</strong> ITP, as listed under<br />

Groups A, B, C and D above, provided the<br />

ownership <strong>of</strong> the factory buildings vests<br />

with the SPV. The SPV will, however, have<br />

the option <strong>of</strong> seeking financial support<br />

from Government <strong>of</strong> India for components<br />

under Groups B and C only, if factory<br />

buildings are individually owned.<br />

A panel <strong>of</strong> pr<strong>of</strong>essional agencies has<br />

been appointed as Project Management<br />

Consultants (PMCs) for implementing the<br />

Scheme.<br />

The PMCs will be responsible for the<br />

speedy implementation <strong>of</strong> the Projects in<br />

a transparent and pr<strong>of</strong>essional manner<br />

so as to achieve high degree <strong>of</strong> quality at<br />

a low cost acceptable to the members <strong>of</strong><br />

the SPV for which fee will be paid to the<br />

PMCs by the <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong>.<br />

The PMCs will report to <strong>Ministry</strong> <strong>of</strong><br />

<strong>Textiles</strong>, which shall directly supervise<br />

the implementation <strong>of</strong> projects under<br />

the superintendence and control<br />

<strong>of</strong> Secretary (<strong>Textiles</strong>). The project<br />

proposal as submitted by PMCs shall be<br />

considered and appraised by the Project<br />

Scrutiny Committee (PSC) headed by<br />

JS (SITP), <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong>. Project<br />

Scrutiny Committee will appraise all<br />

the proposal submitted by PMCs in<br />

terms <strong>of</strong> the project components,<br />

viability, feasibility and time lines <strong>of</strong><br />

each project. The Committee shall look<br />

into the utility <strong>of</strong> the projects in terms<br />

<strong>of</strong> modernization & integration <strong>of</strong> supply<br />

and management chain, and make<br />

the final recommendations to Project<br />

Approval Committee (PAC). The Project<br />

Approval Committee will consider and<br />

approve the recommendations <strong>of</strong> Project<br />

Scrutiny Committee headed by Minister<br />

<strong>of</strong> <strong>Textiles</strong> with Secretary (<strong>Textiles</strong>), and<br />

JS, <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong> in charge <strong>of</strong> SITP<br />

as members.<br />

Funding Pattern<br />

The Government <strong>of</strong> India’s (GOI) support<br />

under the Scheme by way <strong>of</strong> Grant or<br />

Equity will be limited to 40% <strong>of</strong> the project<br />

40


annual report 2011-12<br />

cost subject to a ceiling <strong>of</strong> Rs. 40 crore.<br />

GOI support under the Scheme will be<br />

generally in the form <strong>of</strong> grant to the SPV<br />

unless specifically decided to be equity.<br />

However, the combined equity stake <strong>of</strong><br />

GOI/State Government/State Industrial<br />

Development Corporation, if any, should<br />

not exceed 49%.<br />

●<br />

One project <strong>of</strong> Kanpur – Uttar Pradesh<br />

nearing completion (Training centre<br />

component yet to be completed)<br />

Scheme for Integrated Textile Parks<br />

(SITP):<br />

●<br />

As per the target, forty (40) <strong>Textiles</strong><br />

Park projects have been sanctioned.<br />

However, GOI support will be provided<br />

@ 90% <strong>of</strong> the project cost subject to a<br />

ceiling <strong>of</strong> Rs. 40 crore for first two projects<br />

in the States <strong>of</strong> Arunachal Pradesh,<br />

Assam, Manipur, Meghalaya, Mizoram,<br />

Nagaland, Tripura, Sikkim and Jammu &<br />

Kashmir.<br />

Status <strong>of</strong> Implementation<br />

TEXTILE CENTRE INFRASTRUCTURE<br />

DEVELOPMENT SCHEME (TCIDS):<br />

●<br />

●<br />

18 Projects sanctioned<br />

GOI Share Rs.268.86 crores.<br />

●<br />

●<br />

●<br />

Estimated project cost (for common<br />

infrastructure and common facilities)<br />

<strong>of</strong> the 40 sanctioned projects is Rs.<br />

4133.09 Crore, <strong>of</strong> which Government<br />

<strong>of</strong> India assistance under the scheme<br />

would be Rs. 1419.69 Crore.<br />

An amount <strong>of</strong> Rs. 992.43 Crore has<br />

been released under SITP.<br />

2292 entrepreneurs will put up their<br />

units in these parks covering an<br />

area <strong>of</strong> 4307.97 Acre. The estimated<br />

investment in these parks will be Rs.<br />

19456.90 Crore and estimated annual<br />

production will be Rs. 33568.50<br />

Crore.<br />

●<br />

●<br />

●<br />

Released Rs.210.59 crores<br />

Four Projects completed, Kannur-<br />

Kerala, Bhiwandi-Maharashtra, and<br />

Tirupur- Tamil Nadu, Pandesara-<br />

Surat.<br />

One project nearing completion i.e.<br />

SEWA-Gujarat<br />

APPAREL PARKS FOR EXPORTS<br />

SCHEME (APES)<br />

●<br />

●<br />

●<br />

●<br />

12 Projects sanctioned<br />

GOI Share Rs.185.22 crores.<br />

Released Rs.130.85 crores<br />

Four Projects completed – Bangalore-<br />

Karnataka, Thiruvananthapuram-<br />

Kerala, TIrupur-Tamil Nadu, and<br />

Tronica City-Uttar Pradesh<br />

● Andhra Pradesh (5), Gujarat (7),<br />

Maharashtra (9), Tamil Nadu (8),<br />

Rajasthan (5), Karnataka (1), Punjab<br />

(3), West Bengal (1), Madhya<br />

Pradesh (1).<br />

● Seven projects have been<br />

completed–Brandix & Pochampally-<br />

Andhra Pradesh, Gujarat Eco Textile<br />

Park &Mundra – Gujarat, Palladam<br />

Hi-Tech Weaving Park, Karur – Tamil<br />

Nadu and Islampur Integrated Textile<br />

Park, Maharashtra. Production has<br />

been started in 24 out <strong>of</strong> 40 projects.<br />

Future Programme<br />

Considering the overwhelming response<br />

to the scheme and opportunities for<br />

growth <strong>of</strong> the <strong>textiles</strong> <strong>industry</strong> and in<br />

view <strong>of</strong> the consistent requests from<br />

State Governments, <strong>industry</strong> groups<br />

41


ministry <strong>of</strong> <strong>textiles</strong><br />

and entrepreneurs for setting up <strong>of</strong> new<br />

textile parks, a note was submitted by the<br />

<strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong> for consideration <strong>of</strong> the<br />

Cabinet Committee on Economic Affairs for<br />

approval <strong>of</strong> more Textile Parks. The CCEA<br />

has approved the proposal for sanction <strong>of</strong><br />

additional parks under SITP to utilize the<br />

balance Rs. 200 Crore in the 11th Five Year<br />

Plan and number <strong>of</strong> projects be limited in<br />

such a way that committed liability <strong>of</strong> the<br />

new parks does not exceed Rs. 200 Crore<br />

in the 12th Five Year Plan. The CCEA<br />

also approved the revised guidelines<br />

enabling a two tier scrutiny and approval<br />

mechanism. The proposals received<br />

for new parks have been examined by<br />

the Project Scrutiny Committee (PSC)<br />

comprising representatives from <strong>Ministry</strong><br />

<strong>of</strong> Finance, Planning Commission, <strong>Ministry</strong><br />

<strong>of</strong> Commerce & Industry, and <strong>Ministry</strong> <strong>of</strong><br />

Environment & Forest. After examination by<br />

PSC, 21 new Textile Park proposals have<br />

been approved by the Project Approval<br />

Committee under the Chairmanship <strong>of</strong><br />

Minister <strong>of</strong> <strong>Textiles</strong> with Secretary (T) and<br />

JS concerned as members.<br />

HANK YARN OBLIGATION SCHEME<br />

The Hank Yarn Obligation (HYO) is a<br />

statutory obligation which enjoins upon<br />

spinning mills to pack yarn in hank form.<br />

This Scheme is meant for protection <strong>of</strong><br />

the handloom <strong>industry</strong> by way <strong>of</strong> ensuring<br />

that the yarn in hank form is available in<br />

adequate quantity at reasonable prices<br />

to the handloom <strong>industry</strong>. Failure to<br />

comply with this obligation invites lodging<br />

<strong>of</strong> FIR against the defaulting mills by the<br />

Office <strong>of</strong> the Textile Commissioner. The<br />

current level <strong>of</strong> obligation is 40% <strong>of</strong> the<br />

total yarn packed by the mills for civil<br />

consumption. The obligation has to be<br />

fulfilled in quarterly periods commencing<br />

from January-March. The Scheme also<br />

provides that shortfall in fulfillment <strong>of</strong> the<br />

obligation may be met by transferring <strong>of</strong><br />

the obligation to another mill which has<br />

excess production <strong>of</strong> hank yarn in addition<br />

to fulfilling its own obligation. Normally,<br />

mills accept such transfer on premium.<br />

With the strict enforcement <strong>of</strong> the<br />

provisions <strong>of</strong> the Hank Yarn Packing<br />

Notification by the Office <strong>of</strong> the Textile<br />

Commissioner, Mumbai, it is ensured that<br />

actual packing <strong>of</strong> Hank Yarn is sufficient<br />

to meet the total domestic requirement<br />

<strong>of</strong> hank yarn in the country. The details<br />

<strong>of</strong> Hank Yarn Packing Obligation and its<br />

fulfillment by actual packing for the last<br />

five years are given at table 3.6.<br />

TEXTILE WORKERS’ REHABILITATION<br />

FUND SCHEME (TWRFS)<br />

The Textile Workers’ Rehabilitation Fund<br />

Scheme came into force with effect from<br />

15.09.1986 with the objective to provide<br />

interim relief to textile workers rendered<br />

unemployed as a consequence <strong>of</strong><br />

permanent closure <strong>of</strong> any particular portion<br />

or entire textile unit. Assistance under<br />

the Scheme is payable to eligible workers<br />

only for the purpose <strong>of</strong> enabling them<br />

to settle in another employment. Such<br />

assistance is not heritable, transferable<br />

or capable <strong>of</strong> being attached on account<br />

<strong>of</strong> any other liabilities <strong>of</strong> the worker. The<br />

worker’s eligibility shall cease if he takes<br />

up employment in another registered or<br />

licensed undertaking. The rehabilitation<br />

assistance will not be curtailed if the<br />

worker fixes himself in a self-employment<br />

venture.<br />

Closed Textile Unit<br />

For the purpose <strong>of</strong> this scheme, closed<br />

textile unit means:<br />

(i)<br />

a unit licensed or registered under<br />

the Industries (Development &<br />

Regulation) Act, 1951 or with the<br />

Textile Commissioner as a medium<br />

scale unit on the day <strong>of</strong> its closure;<br />

(ii) it has obtained the requisite permission<br />

42


annual report 2011-12<br />

Sr.<br />

No.<br />

Year<br />

No. <strong>of</strong> Units<br />

submitted<br />

the returns<br />

Table 3.6<br />

Fulfillment <strong>of</strong> Hank Yarn<br />

Obligation (HYO)<br />

HYO<br />

Fulfillment <strong>of</strong><br />

HYO (on actual<br />

packing basis)<br />

Shortfall<br />

(-)/Excess (+)<br />

in fulfillment<br />

<strong>of</strong> HYO<br />

Percentage<br />

<strong>of</strong> fulfillment<br />

<strong>of</strong> HYO<br />

1 2004-05 2151 383.58 408.89 (+)25.31 106.60%<br />

2 2005-06 1942 451.84 441.94 (-)9.9 97.81%<br />

3 2006-07 2022 484.67 485.03 (+)0.63 100.13%<br />

4 2007-08 2099 516.03 527.37 (+)11.07 102.14%<br />

5 2008-09 2114 492.51 524.00 (+)31.49 106.39%<br />

6 2009-10 2090 525.78 534.74 (+)8.96 101.70%<br />

7 2010-11 2126 567.44 559.85 (-)7.59 98.67%<br />

8 2011-12<br />

(April to Sept<br />

2011)<br />

2117 252.21 268.62 (+)16.41 106.51%<br />

for closure from the appropriate State<br />

Government under section 25(O) <strong>of</strong><br />

the Industrial Disputes Act, 1947 or<br />

alternatively an Official Liquidator<br />

was appointed under Companies Act,<br />

1956, for the purpose <strong>of</strong> winding up <strong>of</strong><br />

the unit.<br />

(iii) The unit was closed down on or after<br />

06.06.1985.<br />

(iv) This also includes partially closed<br />

units wherein the State Governments<br />

recommend that an entire uneconomic<br />

activity (like weaving or processing)<br />

is scrapped as a part <strong>of</strong> rehabilitation<br />

package for a sick/weak mill (as per<br />

the RBI definition) approved by the<br />

Nodal Agency/BIFR provided the<br />

scrapped capacity is surrendered for<br />

cancellation and endorsement is made<br />

on the License / Registration certificate<br />

to this effect.<br />

Eligibility<br />

Any worker would be eligible provided he/<br />

she has been engaged in a closed textile<br />

unit on the date <strong>of</strong> its closure continuously<br />

for five years or more and earning a wage<br />

equivalent <strong>of</strong> Rs. 2500 per month or less<br />

for the mills closed between 06.06.1985<br />

to 01.04.1993 and Rs.3500 or less<br />

thereafter. They should be contributing<br />

to provident fund maintained by the<br />

Regional Provident Fund Commissioner<br />

<strong>of</strong> the State concerned.<br />

Period and Quantum <strong>of</strong> Relief<br />

Relief under the Scheme is available<br />

only for three years on a tapering basis<br />

but will not extend beyond the date <strong>of</strong><br />

superannuation <strong>of</strong> any worker. The<br />

worker is entitled to get relief:<br />

●<br />

●<br />

●<br />

to the extent <strong>of</strong> 75% <strong>of</strong> the wage<br />

equivalent in the first year <strong>of</strong> the<br />

closure <strong>of</strong> the unit;<br />

to the extent <strong>of</strong> 50% <strong>of</strong> the wage<br />

equivalent in the second year; and<br />

to the extent <strong>of</strong> 25% <strong>of</strong> the wage<br />

equivalent in the third year.<br />

43


ministry <strong>of</strong> <strong>textiles</strong><br />

Operation <strong>of</strong> the Scheme<br />

The <strong>of</strong>fice <strong>of</strong> the Textile Commissioner,<br />

Mumbai administers the scheme, through<br />

its Regional <strong>of</strong>fices and in coordination<br />

with State Government, Official Liquidator,<br />

Provident Fund Authorities, concerned<br />

designated Trade Union and designated<br />

Banks. The State Government will collect<br />

the details <strong>of</strong> the workers etc. from the<br />

management/<strong>of</strong>ficial Liquidator/provident<br />

fund authority etc. and prepare a list <strong>of</strong><br />

eligible workers and forward the same<br />

to the concerned Regional Office <strong>of</strong> the<br />

Textile Commissioner in the prescribed<br />

Pr<strong>of</strong>orma. Regional Office <strong>of</strong> the Textile<br />

Commissioner scrutinizes the list and<br />

the list <strong>of</strong> eligible workers with eligible<br />

relief is sent to State Government and<br />

designated trade union, besides keeping<br />

on a notice board.<br />

The individual eligible workers are<br />

required to open a separate Savings Bank<br />

Account in the designated nationalized<br />

Bank and forward a certificate to the<br />

effect along with his relief claiming<br />

application to the Regional <strong>of</strong>fice <strong>of</strong><br />

the Textile Commissioner through<br />

the State Government. In the mean<br />

time the Regional <strong>of</strong>fice <strong>of</strong> the Textile<br />

Commissioner examines the proposals<br />

and assesses the fund requirement and<br />

reports to the Head quarter Office <strong>of</strong> the<br />

Textile Commissioner for releasing fund.<br />

On receipt <strong>of</strong> fund allocation, necessary<br />

fund is allotted to the Regional Office in the<br />

form <strong>of</strong> Letter <strong>of</strong> Credit opened by the Pay<br />

& Accounts Officer (<strong>Textiles</strong>), Mumbai.<br />

On receipt <strong>of</strong> funds, Regional Office <strong>of</strong><br />

the Textile Commissioner disburses the<br />

relief by sending a consolidated cheque<br />

in favour <strong>of</strong> the designated Bank along<br />

with the list <strong>of</strong> eligible workers and the<br />

amount <strong>of</strong> relief to be paid to each <strong>of</strong> the<br />

eligible workers.<br />

Progress<br />

Till 30.11.2011, 1,12,868 workers out <strong>of</strong><br />

1,43,532 workers on the rolls <strong>of</strong> 86 mills<br />

had been disbursed relief <strong>of</strong> `300.94<br />

crore. The State-wise cumulative position<br />

is given at table 3.7.<br />

S.<br />

No<br />

State<br />

No. <strong>of</strong> mills<br />

identified<br />

Table 3.7.<br />

No. <strong>of</strong><br />

workers on<br />

roll<br />

No. <strong>of</strong> workers benefited<br />

(as on 30.11.2011)<br />

No. <strong>of</strong><br />

mills<br />

Workers<br />

received relief<br />

Disbursed<br />

amount<br />

(` in crores)<br />

1 2 3 4 5a 5b 6<br />

1. Gujarat 43 80749 43 63649 159.63<br />

2. Maharashtra 6 9958 6 7893 23.21<br />

3. Madhya Pradesh 5 19800 5 18857 52.64<br />

4. Tamil Nadu 6 5685 6 4761 7.45<br />

5. Karnataka 10 10020 10 6025 22.00<br />

6. Delhi 1 5187 1 5170 11.93<br />

7. West Bengal 3 2072 3 2042 5.34<br />

8 Kerala 1 500 1 437 2.47<br />

9. Punjab 4 6685 4 2311 8.96<br />

10. Andhra Pradesh 7 2876 6 1723 7.31<br />

Total 86 143532 84 112868 300.94<br />

44


annual report 2011-12<br />

PROCESSING SECTOR<br />

The textile-processing segment <strong>of</strong> the<br />

Indian textile <strong>industry</strong> is highly fragmented<br />

and can be broadly divided into four<br />

segments:<br />

(i)<br />

Hand processing units.<br />

(ii) Hand processing units with certain<br />

exempted power processes.<br />

(iii) Independent power processing<br />

units.<br />

(iv) Processing facilities attached to<br />

composite or semi-composite mills.<br />

Government has identified processing as<br />

a critical segment. The National Textile<br />

Policy envisages:<br />

●<br />

Setting up <strong>of</strong> modern processing units,<br />

which would meet the international<br />

quality and environmental norms.<br />

● Expansion <strong>of</strong> the network <strong>of</strong> CAD /<br />

CAM, computerized color matching<br />

and testing facilities, particularly in<br />

the clusters <strong>of</strong> the decentralized<br />

textile centers.<br />

● Extending necessary support to<br />

individual units in achieving ISO<br />

9000 (quality) and ISO - 14000<br />

(environment) standards<br />

●<br />

Giving a thrust to development <strong>of</strong><br />

eco-friendly dyes, including natural<br />

and vegetable dyes and on energy<br />

conservation.<br />

Globally the environmental issues are<br />

increasingly dominating the textile<br />

processing <strong>industry</strong>. In view <strong>of</strong> this, and<br />

as per mandate <strong>of</strong> National Textile Policy,<br />

the important steps taken by Government<br />

to boost the high-tech investment in<br />

processing sector include:<br />

(i) Technology Upgradation Fund<br />

Scheme launched by Government<br />

<strong>of</strong> India on 01.04.1999, envisages<br />

boosting investment in high-tech<br />

processing units, by providing 5%<br />

interest reimbursement on TUF loans.<br />

The scheme has been extended for<br />

11 th five year plan.<br />

(ii) In order to take care <strong>of</strong> quality<br />

requirements and facilitate ec<strong>of</strong>riendly<br />

production <strong>of</strong> processed<br />

fabric, eco-testing and quality<br />

testing facilities have been created<br />

throughout the country, so that the<br />

testing facilities are available within<br />

the reach <strong>of</strong> majority <strong>of</strong> manufacturers/<br />

exporters <strong>of</strong> <strong>textiles</strong> items.<br />

(iii) In order to boost investment in<br />

high tech capital intensive textile<br />

processing projects, a scheme to<br />

provide 10% capital subsidy on<br />

specified high tech machines has<br />

been introduced. The units put up<br />

under this scheme may avail 5%<br />

interest reimbursement under TUFS,<br />

in addition to 10% capital subsidy.<br />

This facility has been extended for<br />

11 th five year plan.<br />

(iv) In order to develop textile clusters in<br />

an integrated manner the scheme<br />

<strong>of</strong> <strong>Textiles</strong> Centre Infrastructure<br />

Development (TCIDS) has been<br />

merged with Apparel Park Scheme<br />

and is now known as Scheme for<br />

Integrated <strong>Textiles</strong> Park (SITP). Under<br />

this scheme the textile parks with<br />

all infrastructural facilities including<br />

state-<strong>of</strong>-the-art effluent treatment<br />

plants are encouraged. The scheme<br />

provides for 40% subsidy on the<br />

project cost subject to the maximum<br />

<strong>of</strong> Rs.40 crore.<br />

TECHNICAL TEXTILES<br />

Technical <strong>textiles</strong> are defined as textile<br />

materials and products used primarily for<br />

45


ministry <strong>of</strong> <strong>textiles</strong><br />

their technical performance and functional<br />

properties rather than their aesthetic or<br />

decorative characteristics. Other terms<br />

used for defining technical <strong>textiles</strong> include<br />

industrial <strong>textiles</strong>, functional <strong>textiles</strong>,<br />

performance <strong>textiles</strong>, engineering<br />

<strong>textiles</strong>, smart <strong>textiles</strong> and hi-tech <strong>textiles</strong>.<br />

Technical <strong>Textiles</strong> is the emerging area<br />

for investment in India. The potential <strong>of</strong><br />

technical textile in India is still untapped.<br />

In order to address the major constraints<br />

for improving production and consumption<br />

<strong>of</strong> technical <strong>textiles</strong>, <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong><br />

has launched Technology Mission on<br />

Technical <strong>Textiles</strong> (TMTT) with two minimissions<br />

for a period <strong>of</strong> five years (from<br />

2010-11 to 2014-15) with a fund outlay <strong>of</strong><br />

Rs. 200 crore during December 2010. The<br />

details <strong>of</strong> the mission are given below:<br />

Mini-Mission- I <strong>of</strong> TMTT<br />

Objectives: Standardization, creating<br />

common testing facilities with national /<br />

international accreditation, indigenous<br />

development <strong>of</strong> prototypes and resource<br />

center with I.T. infrastructure.<br />

Interventions<br />

a) Setting up <strong>of</strong> four Centers <strong>of</strong><br />

Excellence (COEs) to provide<br />

infrastructure support at one place for<br />

the convenience <strong>of</strong> manufacturers <strong>of</strong><br />

technical <strong>textiles</strong>: In addition to four<br />

COEs already established in Agrotech,<br />

Geotech, Protech and Meditech under<br />

Scheme for Growth and Development<br />

<strong>of</strong> Technical <strong>Textiles</strong> (SGDTT), four<br />

more COEs have been set up in the<br />

area <strong>of</strong> Nonwovens, Composites,<br />

Indutech and Sportech to support the<br />

manufacturers <strong>of</strong> technical <strong>textiles</strong> <strong>of</strong><br />

respective segment. The four new<br />

Centres <strong>of</strong> Excellence are given at<br />

table 3.8.<br />

The essential facilities to be created in the<br />

Centres <strong>of</strong> Excellence are as follows:<br />

i) Facilities for testing and evaluation<br />

<strong>of</strong> products <strong>of</strong> identified segments<br />

<strong>of</strong> technical <strong>textiles</strong> with national/<br />

international accreditation and<br />

collaboration with foreign institutes /<br />

laboratories<br />

ii) Resource Centre with I.T.<br />

infrastructure<br />

iii) Facilities for indigenous development<br />

<strong>of</strong> prototypes<br />

iv) Facilities for training <strong>of</strong> core personnel<br />

and regular training <strong>of</strong> personnel from<br />

the technical textile <strong>industry</strong><br />

v) Knowledge sharing with stake<br />

holders<br />

vi) Incubation Centre<br />

vii) Setting up <strong>of</strong> standards at par with<br />

global level<br />

b) Upgradation <strong>of</strong> existing four<br />

Centres <strong>of</strong> Excellence<br />

Sr.<br />

No.<br />

1.<br />

Name <strong>of</strong> agencies<br />

Table 3.8<br />

DKTE Society’s Textile and Engineering Institute, Ichalkaranji,<br />

Maharashtra<br />

Area <strong>of</strong> Centre<br />

<strong>of</strong> Excellence<br />

Non-Wovens<br />

2. PSG College <strong>of</strong> Technology, Coimbatore, Tamil Nadu Indutech<br />

Ahmedabad Textile Industry’s Research Association (ATIRA), Ahmadabad, Composites<br />

3.<br />

Gujarat.<br />

4. Institute <strong>of</strong> Chemical Technology (ICT), Mumbai Sportech<br />

46


annual report 2011-12<br />

Four COEs have already been<br />

established namely BTRA for<br />

Geotech, SITRA for Meditech, NITRA<br />

for Protech & SASMIRA for Agrotech<br />

under the Scheme for Growth and<br />

Development <strong>of</strong> Technical <strong>Textiles</strong><br />

(SGDTT), but these centres are not<br />

having facilities for development<br />

<strong>of</strong> prototypes, incubation centre<br />

for products <strong>of</strong> their segments and<br />

provision for recurring expenditure for<br />

appointment <strong>of</strong> experts. Therefore,<br />

a fund support is being provided to<br />

the existing COEs to upgrade them<br />

in line with new COEs.<br />

Mini-Mission- II <strong>of</strong> TMTT<br />

Objectives: Support for domestic &<br />

export market development <strong>of</strong> technical<br />

<strong>textiles</strong><br />

Interventions:<br />

a) Support for business start-up:<br />

Technical <strong>textiles</strong> is a new area<br />

and entrepreneurs especially SME<br />

sector find it difficult to start a project<br />

on technical <strong>textiles</strong> .The COE<br />

and other associations / institutes/<br />

independent reputed consultants<br />

have been empanelled by the MOT<br />

/ Office <strong>of</strong> the Textile Commissioner<br />

who will prepare project reports and<br />

do the hand holding <strong>of</strong> the potential<br />

entrepreneurs till the completion <strong>of</strong><br />

the projects. So far, five consultants<br />

have already been empanelled for<br />

Business Start-up under Technology<br />

Mission on Technical <strong>Textiles</strong><br />

(TMTT). These consultants will<br />

provide end to end service to the<br />

potential investors including product<br />

selection, technology definition and<br />

procurement, market assessment,<br />

commercialization and marketing<br />

assistance.<br />

b) Providing fund support for<br />

organizing workshops:<br />

The awareness about the technical<br />

<strong>textiles</strong> is still low among the stake<br />

holders. In order to create the<br />

awareness about technical <strong>textiles</strong>,<br />

reputed National and International<br />

agencies including the Indian Diaspora<br />

settled abroad are being invited to<br />

conduct Seminars, Workshops and<br />

short term training programmes in which<br />

know-how about latest technology,<br />

international practices, market details,<br />

global scenario etc. is being shared.<br />

So far, eight programmes have already<br />

been organised during this year under<br />

this component. Programmes have<br />

received huge response from all stake<br />

holders.<br />

c) Social compliance through<br />

standardization, regulatory<br />

measures:<br />

Some technical <strong>textiles</strong> require<br />

encouragement for use by user<br />

industries/Ministries and some<br />

require mandatory prescription.<br />

Consultants are being engaged<br />

to identify the needed regulatory<br />

changes required along with<br />

international best practices and also<br />

the strategy to facilitate such changes<br />

in the rules and regulations.<br />

d) Market development Support for<br />

marketing support to bulk and<br />

institutional buyers etc.:<br />

Under the Scheme Buyers-sellers<br />

meet will be organized across the<br />

country wherein the indigenous<br />

manufacturers can showcase their<br />

products and institutional buyers will<br />

be invited for enhancing marketing<br />

competitiveness <strong>of</strong> manufacturers.<br />

47


ministry <strong>of</strong> <strong>textiles</strong><br />

“TECHNOTEX INDIA 2011:<br />

International Exhibition &<br />

Conference on Technical <strong>Textiles</strong>”<br />

was organized during 25-27<br />

August 2012 at Mumbai under this<br />

component. The programme was<br />

inaugurated by Textile Minister<br />

and was attended by Chief Minster<br />

Maharashtra, and Textile Minister,<br />

Karnataka. The programme was<br />

a huge success. 102 companies<br />

participated as exhibitors. There<br />

was a separate China pavilion<br />

in the exhibition and three State<br />

Pavillions. Over 280 delegates<br />

attended the Conference. 41<br />

speakers addressed the delegates<br />

and made presentations.<br />

e) Market development Support for<br />

export sales:<br />

There are many reputed technical<br />

textile fairs organized abroad. The<br />

participation in these fairs will improve<br />

the export potential <strong>of</strong> the indigenous<br />

manufacturers. Some <strong>of</strong> the technical<br />

textile units are also participating in the<br />

exhibition <strong>of</strong> application based fairs.<br />

The support includes participation<br />

in Technical Textile fairs/Application<br />

based fairs by the Indian technical<br />

textile manufacturers to exhibit their<br />

products. Seven units have been<br />

approved for support under this<br />

component till date.<br />

f) Contract Research and<br />

Development through IITs/TRAs/<br />

Textile Institutes:<br />

Technical <strong>textiles</strong> is high technology<br />

area where most <strong>of</strong> the new material<br />

high-end converted products are<br />

imported, there is strong need for<br />

indigenous development <strong>of</strong> products<br />

for which R&D is <strong>of</strong> prime importance.<br />

Therefore, contract research is<br />

covered under this head. Individual<br />

unit or two or more unit may come<br />

together for a Contract research<br />

proposal.<br />

*****<br />

48


annual report 2011-12<br />

CHAPTER IV<br />

EXPORTS<br />

49


50<br />

ministry <strong>of</strong> <strong>textiles</strong>


annual report 2011-12<br />

CHAPTER IV<br />

EXPORTS<br />

India’s <strong>textiles</strong> and clothing <strong>industry</strong> is<br />

one <strong>of</strong> the mainstays <strong>of</strong> the national<br />

economy. It is also one <strong>of</strong> the largest<br />

contributing sectors <strong>of</strong> India’s exports<br />

worldwide. The report <strong>of</strong> the Working<br />

Group constituted by the Planning<br />

Commission on boosting India’s<br />

manufacturing exports during 12th Five<br />

Year Plan (2012-17), envisages India’s<br />

exports <strong>of</strong> <strong>Textiles</strong> and Clothing at US$<br />

32.35 billion by the end <strong>of</strong> XIth Five Year<br />

plan, as against <strong>of</strong> US$ 55 billion envisaged<br />

in the Report <strong>of</strong> Working Group on <strong>Textiles</strong><br />

for the XIth Five Year Plan and based on<br />

historic growth rate <strong>of</strong> 10% (CAGR), a<br />

business as usual approach, will result in<br />

exports <strong>of</strong> US$ 52 billion by the end <strong>of</strong> XI<br />

Plan. An export target <strong>of</strong> US$ 65 billion<br />

and creation <strong>of</strong> 25 million additional jobs<br />

has been proposed with a CAGR <strong>of</strong> 15%<br />

during the XII Plan. At current prices the<br />

Indian <strong>textiles</strong> <strong>industry</strong> is pegged at US$<br />

55 billion, 64% <strong>of</strong> which services domestic<br />

demand. The <strong>textiles</strong> <strong>industry</strong> accounts<br />

for 14% <strong>of</strong> industrial production, which is<br />

4% <strong>of</strong> GDP; employs 35 million people<br />

and accounts for nearly 12% share <strong>of</strong> the<br />

country’s total exports basket.<br />

Milestones<br />

= Exports <strong>of</strong> <strong>textiles</strong> and clothing<br />

products from India have increased<br />

steadily over the last few years,<br />

particularly after 2004 when <strong>textiles</strong><br />

exports quota stood discontinued.<br />

= India’s <strong>Textiles</strong> & Clothing (T&C)<br />

exports registered a robust growth<br />

<strong>of</strong> 25% in 2005-06, recording a<br />

growth <strong>of</strong> US$ 3.5 billion over<br />

2004-05 in value terms thereby<br />

reaching a level <strong>of</strong> US$ 17.52 billion<br />

and the growth continued in 2006-<br />

07 with T&C exports <strong>of</strong> US$19.15<br />

billion recording a increase <strong>of</strong><br />

9.28% over the previous year and<br />

reached US$ 22.15 billion in 2007-<br />

08 denoting an increase <strong>of</strong> 15.7%;<br />

but declined by over 5% in 2008-09.<br />

Exports <strong>of</strong> <strong>Textiles</strong> & Clothing grew<br />

from US$ 21.22 billion in 2008-<br />

09 to US$ 22.41 billion in 2009-10<br />

and has touched US$ 26.82 billion<br />

in 2010-11. In the current financial<br />

year i.e. 2011-12, exports <strong>of</strong> <strong>textiles</strong><br />

and clothing, as per latest available<br />

data covering April-October, 2011,<br />

has grown by 28.94% over the<br />

corresponding period <strong>of</strong> 2010-11.<br />

= The details <strong>of</strong> India’s <strong>textiles</strong> exports,<br />

principal commodity-wise during the<br />

last three years and current financial<br />

year for the period April-October<br />

2011 is at table 4.1.<br />

= During the year 2010-11,<br />

Readymade Garments account<br />

for almost 40% <strong>of</strong> the total <strong>textiles</strong><br />

exports. Apparel and cotton <strong>textiles</strong><br />

products together contribute nearly<br />

70% <strong>of</strong> the total <strong>textiles</strong> exports.<br />

= The exports basket comprise a wide<br />

range <strong>of</strong> items including readymade<br />

garments, cotton <strong>textiles</strong>, handloom<br />

<strong>textiles</strong>, man-made fibre <strong>textiles</strong>,<br />

<strong>wool</strong> and <strong>wool</strong>en products, silk, jute<br />

and handicrafts including carpets.<br />

= India’s <strong>textiles</strong> products, including<br />

handlooms and handicrafts, are<br />

exported to more than a hundred<br />

countries. However, the USA and<br />

the EU, account for about two-thirds<br />

51


ministry <strong>of</strong> <strong>textiles</strong><br />

Table 4.1<br />

India’s <strong>textiles</strong> exports at a glance (Principal Commodities)<br />

Prepared on 24.01.2012<br />

Item 2008-09 2009-10 2010-11(P) Variation Apr-Oct 2010 Apr-Oct 2011(P) Variation<br />

Rs.Crore US$ Mn Rs.Crore US$ Mn Rs.Crore US$ Mn Rs. US$ Rs.Crore US$ Mn Rs.Crore US$ Mn Rs. US$<br />

Readymade Garment 47112.77 10383.26 47608.39 10064.73 48355.57 10627.99 1.57% 5.60% 25254.29 5512.15 32436.57 7088.74 28.44% 28.60%<br />

RMG <strong>of</strong> cotton including accessories 38522.72 8490.08 38070.33 8048.32 37687.51 8283.27 -1.01% 2.92% 19292.50 4210.89 24076.03 5261.62 24.79% 24.95%<br />

RMG <strong>of</strong> Man-made fibre 4721.94 1040.68 5745.29 1214.59 6489.07 1426.22 12.95% 17.42% 3610.91 788.14 5265.62 1150.76 45.83% 46.01%<br />

RMG <strong>of</strong> other textile material 3868.11 852.50 3792.77 801.82 4178.99 918.49 10.18% 14.55% 2350.88 513.12 3094.92 676.37 31.65% 31.82%<br />

Cotton <strong>Textiles</strong> 21795.40 4803.52 27016.21 5711.41 38038.19 8360.35 40.80% 46.38% 15884.11 3466.96 22418.43 4899.36 41.14% 41.32%<br />

Cotton raw including waste 2865.86 631.61 9537.08 2016.20 12981.04 2853.08 36.11% 41.51% 1766.55 385.58 5085.34 1111.36 187.87% 188.23%<br />

Cotton yarn, fabrics & madeups 18929.54 4171.91 17479.13 3695.20 25057.15 5507.27 43.35% 49.04% 14117.56 3081.38 17333.09 3788.00 22.78% 22.93%<br />

Man-made <strong>textiles</strong> 15090.76 3325.88 18783.13 3970.88 21125.13 4643.06 12.47% 16.93% 11297.00 2465.75 14713.41 3215.49 30.24% 30.41%<br />

Manmade staple fibres 1172.01 258.30 1690.68 357.42 1998.11 439.16 18.18% 22.87% 1083.64 236.52 1338.66 292.55 23.53% 23.69%<br />

Manmade yarn, fabrics & madeups 13918.75 3067.58 17092.45 3613.46 19127.02 4203.90 11.90% 16.34% 10213.36 2229.23 13374.75 2922.94 30.95% 31.12%<br />

Wool & Woolen <strong>textiles</strong> 2199.49 484.75 2224.14 470.20 1955.31 429.75 -12.09% -8.60% 1139.74 248.77 1485.53 324.65 30.34% 30.50%<br />

RMG <strong>of</strong> Wool 1742.97 384.14 1799.20 380.36 1477.27 324.69 -17.89% -14.64% 884.26 193.00 1092.21 238.69 23.52% 23.67%<br />

Woollen yarn, fabrics & madeups 456.52 100.61 424.94 89.84 478.04 105.07 12.50% 16.96% 255.48 55.76 393.32 85.96 53.95% 54.15%<br />

Silk 3107.78 684.93 2819.46 596.05 2708.02 595.19 -3.95% -0.14% 1484.22 323.95 1291.94 282.34 -12.95% -12.84%<br />

RMG <strong>of</strong> Silk 1437.73 316.86 1383.42 292.46 1095.10 240.69 -20.84% -17.70% 630.92 137.71 741.12 161.97 17.47% 17.61%<br />

Natural silk yarn, fabrics & madeups 1664.82 366.91 1411.12 298.32 1578.40 346.91 11.85% 16.29% 829.57 181.07 536.10 117.16 -35.38% -35.29%<br />

Silk waste 5.23 1.15 24.92 5.27 34.52 7.59 38.52% 44.02% 23.73 5.18 14.72 3.22 -37.97% -37.89%<br />

Handloom Products* 1252.81 264.85 1662.89 365.48 32.73% 38.00% 851.66 185.89 1483.21 324.14 74.16% 74.38%<br />

<strong>Textiles</strong> (excluding handicrafts, jute & coir) 89306.20 19682.34 99704.14 21078.12 113845.11 25021.83 14.18% 18.71% 55911.02 12203.47 73829.09 16134.73 32.05% 32.21%<br />

Handicrafts 4949.23 1090.77 4548.91 961.67 5445.45 1196.85 19.71% 24.46% 3042.42 664.06 2476.59 541.24 -18.60% -18.50%<br />

Handicrafts (excluding handmade carpets) 1384.19 305.06 1066.58 225.48 984.65 216.41 -7.68% -4.02% 587.55 128.24 462.05 100.98 -21.36% -21.26%<br />

Carpets (excluding silk) handmade 3506.37 772.77 3441.74 727.61 4444.96 976.95 29.15% 34.27% 2449.70 534.69 2006.50 438.50 -18.09% -17.99%<br />

Silk carpets 58.67 12.93 40.59 8.58 15.84 3.48 -60.98% -59.43% 5.17 1.13 8.04 1.76 55.51% 55.71%<br />

Coir & Coir Manufacturers 680.70 150.02 759.66 160.60 689.18 151.47 -9.28% -5.68% 383.08 83.61 531.43 116.14 38.73% 38.90%<br />

Coir & Coir Manufacturers 680.70 150.02 759.66 160.60 689.18 151.47 -9.28% -5.68% 383.08 83.61 531.43 116.14 38.73% 38.90%<br />

Jute 1375.78 303.21 1033.09 218.40 2076.34 456.36 100.98% 108.95% 1258.01 274.58 1197.02 261.60 -4.85% -4.73%<br />

Floor covering <strong>of</strong> jute 251.63 55.46 281.07 59.42 336.93 74.05 19.87% 24.63% 207.75 45.34 141.31 30.88 -31.98% -31.89%<br />

Other jute manufactures 491.64 108.35 300.19 63.46 505.58 111.12 68.42% 75.10% 272.15 59.40 448.61 98.04 64.84% 65.05%<br />

Jute yarn 216.92 47.81 144.20 30.48 533.90 117.34 270.25% 284.93% 353.84 77.23 136.31 29.79 -61.48% -61.43%<br />

Jute hessian 415.59 91.59 307.63 65.04 699.93 153.84 127.52% 136.54% 424.27 92.60 470.79 102.89 10.96% 11.10%<br />

Total <strong>Textiles</strong> Exports (incl. handicrafts, coir<br />

& jute)<br />

96311.91 21226.34 106045.80 22418.79 122056.08 26826.50 15.10% 19.66% 60594.53 13225.72 78034.13 17053.71 28.78% 28.94%<br />

% Textile Exports 11.46% 11.46% 12.54% 12.54% 10.63% 10.63% 10.74% 10.74% 10.03% 10.03%<br />

India’s exports <strong>of</strong> all commodities 840755.06 185295.36 845533.64 178751.43 1148169.56 252354.27 35.79% 41.18% 564313.88 123170.46 778375.03 170107.38 37.93% 38.11%<br />

Source : Foreign Trade Statistics <strong>of</strong> India( Principal Commodities & Countries), DGCI&S for export figures in Rupee and Department <strong>of</strong> Commerce(Intranet) -Exchange rate<br />

*Handloom Products have been included as commodities first time in 2009-10<br />

Exchange rate (Source:DOC intranet) Apr-Mar’ 2008-09 Apr-Mar’ 2009-10<br />

52


annual report 2011-12<br />

<strong>of</strong> India’s <strong>textiles</strong> exports. The other<br />

major export destinations are China,<br />

U.A.E., Sri Lanka, Saudi Arabia,<br />

Republic <strong>of</strong> Korea, Bangladesh,<br />

Turkey, Pakistan, Brazil, Hong Kong,<br />

Canada, Egypt etc.<br />

= As per the latest available export<br />

data, the salient features <strong>of</strong> the<br />

overall textile exports for the period<br />

April, 2011 to October, 2011(P) are<br />

as follows:<br />

Overall Exports<br />

= The total textile exports during April,11<br />

to October,11 (P) were valued at<br />

Rs. 78034.13 crore as against<br />

Rs. 60594.53 crore during the<br />

corresponding period <strong>of</strong> financial year<br />

2010-11, registering an increase <strong>of</strong><br />

28.78 percent in rupee terms.<br />

= In US dollar terms, the same was<br />

valued at US$17053.71 million as<br />

against US$ 13225.72 million during<br />

the corresponding period <strong>of</strong> previous<br />

financial year registering an increase<br />

<strong>of</strong> 28.94 percent in US$ terms.<br />

= However, the share <strong>of</strong> <strong>textiles</strong> in<br />

India’s total exports <strong>of</strong> all commodities<br />

has declined to 10.03 percent from<br />

10.74 per cent during April- October,<br />

2011 as against April- October, 2010.<br />

Composition <strong>of</strong> <strong>Textiles</strong><br />

Export<br />

= In rupee / US$ terms (during 2010-<br />

11), exports <strong>of</strong> readymade garments<br />

witnessed the highest export share<br />

<strong>of</strong> 39.61 percent, followed by Cotton<br />

<strong>Textiles</strong> (31.16), and Man-Made<br />

<strong>Textiles</strong> (17.31).<br />

Trend during the period<br />

April,11 to October, 11.<br />

= In rupee terms, during April,11 to<br />

October,11 (P) there has been<br />

a surge in exports <strong>of</strong> Handloom<br />

product (74.16%), Wool & Woolen<br />

textile (30.34%), Man-made <strong>textiles</strong><br />

(30.24%), RMG (28.44%), Coir &<br />

Coir Manufactures (38.73%), Cotton<br />

<strong>Textiles</strong> (41.14%).<br />

= In US$ terms the surge during<br />

April,11 to October,11 registered<br />

in Handloom products at 74.38%,<br />

Wool & Woolen <strong>textiles</strong> (30.50%),<br />

Man-made <strong>textiles</strong> (30.41%),<br />

RMG (28.60%) and in Coir & Coir<br />

Manufactures (38.90%) and Cotton<br />

<strong>Textiles</strong> (41.32%)<br />

Liberalized trading regime<br />

and emerging opportunities<br />

In the liberalized post-quota period,<br />

India has emerged as a major sourcing<br />

destination for buyers from all over the<br />

globe. As a measure <strong>of</strong> growing interest<br />

in the Indian <strong>textiles</strong> and clothing sector,<br />

a number <strong>of</strong> reputed houses opened<br />

their sourcing / liaison <strong>of</strong>fice in India.<br />

These include Marks and Spencer,<br />

Haggar Clothing, Kellwood, Little Label,<br />

Boules Trading Company, Castle, Alster<br />

International, Quest Apparel Inc., etc.<br />

Commercially the buoyant retailers<br />

across the world are looking for options <strong>of</strong><br />

increasing their sourcing from the Indian<br />

markets. Indian manufacturers are also<br />

pro-actively working towards enhancing<br />

their capacities to fulfil this increased<br />

demand.<br />

(i)<br />

Global exports <strong>of</strong> Ready Made<br />

Garments (RMG)<br />

= Global exports <strong>of</strong> RMG during 2008-<br />

09 were <strong>of</strong> the order <strong>of</strong> US$ 10.38<br />

billion, which recorded a marginal<br />

decrease to US$ 10.06 billion during<br />

2009-10. However, exports <strong>of</strong> RMG<br />

grew by 5.60% to US$ 10.63 Billion<br />

in 2010-11.<br />

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ministry <strong>of</strong> <strong>textiles</strong><br />

= As per latest available statistics,<br />

exports <strong>of</strong> RMG during April-<br />

October, 2011 was <strong>of</strong> the order <strong>of</strong><br />

USD 7088.74 million as against<br />

USD 5512.15 million during the<br />

same period last year, indicating<br />

an increase <strong>of</strong> over 28.60% in US$<br />

terms this year.<br />

= EU was the biggest destination for<br />

RMG exports, with over US$ 5.3<br />

billion worth <strong>of</strong> exports during the<br />

year ending March, 2011, recording<br />

a growth <strong>of</strong> over 1% compared to<br />

exports in 2009-10.<br />

= US was the second biggest<br />

destination for RMG, with exports <strong>of</strong><br />

US$ 2.85 billion for the year ending<br />

March,11, recording a growth <strong>of</strong><br />

7.29% over the last financial year.<br />

= UAE was the third biggest destination<br />

with over a billion dollar worth <strong>of</strong><br />

exports to that group.<br />

(ii)<br />

Global exports <strong>of</strong> Handicrafts (HC)<br />

= Exports <strong>of</strong> Handicrafts was <strong>of</strong> the<br />

order <strong>of</strong> US$ 1.45 Billion in 2007-08<br />

and had drastically reduced to US$<br />

1.09 Billion in 2008-09 and further<br />

went down to US$ 961.67 Million<br />

in 2009-10. However, during the<br />

financial year 2010-11, the exports<br />

<strong>of</strong> handicrafts has appreciated to<br />

USD 1.19 billion, recording a surge<br />

<strong>of</strong> 24.46%.<br />

(iii) Global exports <strong>of</strong> Handlooms (HL)<br />

= Harmonized System <strong>of</strong> Classification<br />

for Handlooms products was<br />

introduced in 2009-10.<br />

= Exports <strong>of</strong> Handlooms during 2009-<br />

10 were <strong>of</strong> the order <strong>of</strong> US$ 260<br />

Million and increased to 365 million<br />

in 2010-11, recording a growth<br />

<strong>of</strong> 38%.<br />

= The biggest destination <strong>of</strong> India’s<br />

Handlooms products is the USA<br />

followed by the EU.<br />

Country-wise analysis<br />

= In the global market exports <strong>of</strong><br />

clothing, India ranked as the sixth<br />

largest exporter as per WTO data<br />

– 2010 (latest), trailing Turkey,<br />

Bangladesh, Hong Kong, EU-27<br />

and China. In the global exports <strong>of</strong><br />

<strong>Textiles</strong>, India ranked as the third<br />

largest exporter, trailing EU-27 and<br />

China, as per WTO data – 2010<br />

(latest).<br />

= Since August, 2008, the major<br />

markets for India’s exports <strong>of</strong> T&C<br />

products viz. USA, EU and Japan<br />

have witnessed recessionary<br />

conditions and financial crisis, and<br />

<strong>textiles</strong> sector was amongst the<br />

worst hit. However these adverse<br />

economic conditions appeared to<br />

have abated somewhat since 2010<br />

with the USA, the single largest<br />

importer <strong>of</strong> <strong>textiles</strong> and clothing<br />

items, observing a positive growth<br />

<strong>of</strong> 14.22% and 17.03% in its import<br />

<strong>of</strong> T&C from the world and India<br />

respectively during the calendar<br />

year 2010. This trend has continued<br />

during 2011 when USA observed<br />

a positive growth <strong>of</strong> 8.90% and<br />

10.32% in its imports <strong>of</strong> T&C from the<br />

world and India respectively. Almost<br />

all major T&C exporting countries<br />

showed positive trend in the US<br />

market during the first nine month <strong>of</strong><br />

calendar year 2011. (Source: GTIS)<br />

= The EU’s overall T&C import<br />

registered a growth <strong>of</strong> 7.30% in<br />

2008, decline <strong>of</strong> 11.87% in 2009 and<br />

growth <strong>of</strong> 7.67% in calendar year<br />

2010. In calendar year 2011, EU’s<br />

overall imports <strong>of</strong> T&C have grown<br />

by 15.38% while India recorded<br />

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annual report 2011-12<br />

a growth <strong>of</strong> 17.53% over the<br />

corresponding period in 2010. China<br />

& Turkey, the two largest exporters<br />

<strong>of</strong> T&C to EU have recorded growth<br />

<strong>of</strong> 11.36% and 13.08% respectively<br />

during same period. (Source: GTIS)<br />

Imports<br />

The total imports <strong>of</strong> T&C products by<br />

India reached US$ 4.09 billion in 2010-<br />

11. Man-made Filaments was the biggest<br />

import amongst T&C items, with a share <strong>of</strong><br />

USD 0.66 billion followed by impregnated<br />

textile fabric (USD 0.62 billion) and manmade<br />

staple fibre with a share <strong>of</strong> USD<br />

0.42 billion. The imports have increased<br />

by 21.69% during 2000-11 in dollar terms<br />

over the corresponding period last year.<br />

However, the share <strong>of</strong> import <strong>of</strong> T&C<br />

products by India as percentage <strong>of</strong> total<br />

imports <strong>of</strong> all commodities has decreased<br />

during 2010-11, and stood at 1.10% as<br />

against 1.17% during 2009-10.<br />

Export Promotion Measures<br />

The Government has been continually<br />

supporting the <strong>textiles</strong> exports sector<br />

through various provisions <strong>of</strong> the Foreign<br />

Trade Policy and the other policy initiatives<br />

to enable the sector to increase market<br />

share in the global <strong>textiles</strong> markets.<br />

EXPORT PROMOTION COUNCILS<br />

There are eleven <strong>textiles</strong> Exports<br />

Promotion Councils representing all<br />

segments <strong>of</strong> the <strong>Textiles</strong> & Clothing<br />

sector, viz. readymade garments, cotton,<br />

silk, jute, <strong>wool</strong>, powerloom, handloom,<br />

handicrafts, carpets. These Councils<br />

work in close cooperation with the <strong>Ministry</strong><br />

<strong>of</strong> <strong>Textiles</strong> and other Ministries to promote<br />

the growth <strong>of</strong> their respective sector in<br />

the global export markets. The Councils<br />

participate in <strong>textiles</strong> and clothing fairs<br />

and exhibitions in India and abroad as<br />

well as mount stand alone shows in India<br />

and abroad to enhance the markets <strong>of</strong><br />

their respective sectors. These councils<br />

are:-<br />

i) Apparel Export Promotion Council<br />

(AEPC)<br />

ii)<br />

iii)<br />

iv)<br />

The Cotton <strong>Textiles</strong> Export Promotion<br />

Council (TEXPROCIL)<br />

The Synthetic & Rayon <strong>Textiles</strong> Export<br />

Promotion Council (SRTEPC)<br />

Wool & Woollen Export Promotion<br />

Council (WWEPC)<br />

v) Wool Industry Export Promotion<br />

Organization (WOOLTEXPRO)<br />

vi)<br />

vii)<br />

Indian Silk Export Promotion Council<br />

(ISEPC)<br />

Carpet Export Promotion Council<br />

(CEPC)<br />

<strong>viii</strong>) Export Promotion Council for<br />

Handicrafts (EPCH)<br />

ix)<br />

Powerloom Development & Export<br />

Promotion Council (PDEXCIL)<br />

x) Handloom Export Promotion Council<br />

(HEPC)<br />

xi)<br />

Jute Product Development Export<br />

Promotion Council (JPDEPC)<br />

Export Promotion Activities<br />

<strong>of</strong> EPCs<br />

During the year 2010-11, the EPCs<br />

continued export promotion activities<br />

<strong>of</strong> <strong>textiles</strong> exports. These included<br />

participation in overseas exhibitions/<br />

fairs, organisation <strong>of</strong> Buyer-seller-Meets<br />

(BSMs) abroad and, sponsoring trade<br />

delegations for consolidating the existing<br />

markets and exploring new markets.<br />

Major <strong>textiles</strong> fairs like India International<br />

Garment Fair and Indian Handicrafts &<br />

Gifts Fair were held in New Delhi, which<br />

attracted large number <strong>of</strong> buyers from all<br />

55


over the world. The EPCs participated in<br />

all major fairs & exhibition world-wide, and<br />

<strong>Textiles</strong> Mega Shows were jointly put up<br />

in Japan, South Africa and Latin America<br />

with the support <strong>of</strong> the Government.<br />

Apparel Training & Design<br />

Centres (ATDCs)<br />

The Apparel Training & Design Centre<br />

was registered as a Society under<br />

Societies Registration Act on February<br />

15, 1991 at New Delhi with the mission<br />

to upgrade the technical skills <strong>of</strong> the<br />

*****<br />

ministry <strong>of</strong> <strong>textiles</strong><br />

human resource employed in Garment<br />

Industry. There are 75 ATDC centres<br />

including 25 ATDC-IGNOU community<br />

colleges and over 50 SMART (Skill<br />

for manufacturing <strong>of</strong> Apparels through<br />

Research & Training) centres and skill<br />

campus at present functioning across<br />

the country to provide trained manpower<br />

in the field <strong>of</strong> Pattern Making/Cutting<br />

Techniques and Production Supervision<br />

and Quality Control Techniques to the<br />

Readymade Garment Industry so that<br />

quality garments are manufactured for<br />

the global market.<br />

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annual report 2011-12<br />

CHAPTER V<br />

COTTON<br />

57


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annual report 2011-12<br />

CHAPTER V<br />

COTTON<br />

Cotton is one <strong>of</strong> the major crops<br />

cultivated in India. It accounts<br />

for more than 75% <strong>of</strong> the total<br />

fibre consumption in the spinning mills<br />

and more than 54% <strong>of</strong> the total fibre<br />

consumption in the textile sector. The<br />

twin objective <strong>of</strong> assuring <strong>of</strong>f-take <strong>of</strong> the<br />

farmer’s produce at remunerative prices<br />

and making available adequate quantity<br />

<strong>of</strong> cotton at a reasonable prices to the<br />

domestic textile <strong>industry</strong>, are sought to be<br />

achieved through timely announcement<br />

<strong>of</strong> remunerative Minimum Support<br />

Price (MSP) to the farmer and through<br />

appropriate export-import intervention as<br />

and when necessary. The New Textile<br />

Policy aims at improving the quality <strong>of</strong><br />

cotton to that <strong>of</strong> international standards<br />

through effective implementation <strong>of</strong> the<br />

Technology Mission on Cotton (TMC).<br />

Production and Consumption<br />

●<br />

●<br />

●<br />

●<br />

During the last five decades, the<br />

production <strong>of</strong> cotton increased from<br />

30.00 lakh bales <strong>of</strong> 170 kgs each<br />

in 1950-51 to an all-time record <strong>of</strong><br />

356.00 lakh bales <strong>of</strong> 170 kgs each<br />

during 2011-12.<br />

Acreage under cotton cultivation has<br />

also increased and from 58.82 lakh<br />

hectares in 1950-51 to a record high<br />

<strong>of</strong> 121.91 lakh hectares in 2011-12.<br />

The average yield has also increased<br />

from 88 kgs in 1950-51 to 554 kgs in<br />

2007-08.<br />

Due to receipt <strong>of</strong> good prices by the<br />

cotton farmers for their produce in<br />

previous cotton season there has<br />

been significant increase in cotton<br />

acreage under cotton in cotton<br />

●<br />

●<br />

●<br />

season 2011-12. Acreage under<br />

cotton cultivation has increased by<br />

10% to 121.91 lakh hectares in 2011-<br />

12 as against 111.42 lakh hectares<br />

in the previous season. The rise in<br />

acreage has been mainly due to<br />

switching from other competing crops<br />

viz., maize, jawar, pulses etc. With<br />

various governmental measure to<br />

improve farm practices and release<br />

<strong>of</strong> Bt seeds have enabled the farmers<br />

to sustain their continued interests in<br />

cotton cultivation.<br />

One <strong>of</strong> the reasons for low yield in<br />

India as compared to world average<br />

<strong>of</strong> about 745 kgs/hectare is that<br />

nearly 65% <strong>of</strong> the area under cotton<br />

cultivation is rainfed. Despite delayed<br />

sowing and subsequent continuous<br />

rains in Northern and Central zone,<br />

with subsequent favourable agroclimatic<br />

conditions, the crop progress<br />

is satisfactory in all the cotton<br />

growing States. As a result, the<br />

cotton production in the country is<br />

also expected to increase by 10% to<br />

356.00 lakh bales as against the last<br />

year.<br />

The largest share in the total<br />

production <strong>of</strong> cotton is <strong>of</strong> long staple<br />

varieties followed by medium and<br />

medium long staple. The share <strong>of</strong><br />

short staple is about 1% and the<br />

share <strong>of</strong> medium & medium long<br />

staple varieties was around 20% and<br />

the remaining are long and extra long<br />

staple varieties.<br />

In recent years, there has been a<br />

shift in the cultivation pattern and<br />

farmers have switched over to high<br />

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ministry <strong>of</strong> <strong>textiles</strong><br />

●<br />

yielding long staple varieties from<br />

the medium staple varieties. The<br />

main cotton producing States are<br />

Maharashtra, Gujarat, Andhra<br />

Pradesh, Madhya Pradesh, Punjab,<br />

Haryana, Rajasthan, Karnataka,<br />

Tamil Nadu.<br />

Domestic consumption <strong>of</strong> cotton<br />

fibre has witnessed sustained<br />

growth since 2003-04 onwards<br />

due to growing demand for Indian<br />

<strong>textiles</strong> and subsequently, there has<br />

been considerable expansion and<br />

modernization <strong>of</strong> textile mills.<br />

● Even though the Indian cotton<br />

consumption has increased with<br />

rapid pace in the last few years,<br />

still it has not kept pace with the<br />

growth in domestic cotton production<br />

resulting into surplus availability<br />

for exports. The consumption level<br />

including consumption <strong>of</strong> spinning<br />

units in the Small Scale Sector<br />

and non-mill consumption during<br />

2011-12 has been 250.00 lakh bales<br />

as against 253.00 lakh bales in the<br />

previous year.<br />

●<br />

The projected slowdown in global<br />

economic growth in 2011 and 2012<br />

is expected to affect the cotton<br />

consumption <strong>of</strong> textile products and<br />

therefore demand for cotton fibre<br />

domestically and internationally.<br />

Cotton consumption is likely to be<br />

influenced by the cotton farmers in<br />

the previous cotton season. As a<br />

result, the consumption is estimated<br />

at 250.00 lakh bales in 2011-12 as<br />

against 253.00 lakh bales in previous<br />

year.<br />

Data on area, production, yield and<br />

consumption <strong>of</strong> cotton is given at table 5.1.<br />

Export <strong>of</strong> cotton<br />

During cotton season 2010-11, with<br />

increased cotton production for the fourth<br />

consecutive year, there was abundant<br />

availability <strong>of</strong> cotton facilitating cotton<br />

exports from the country. Further, during<br />

the season, the prices <strong>of</strong> Indian cotton<br />

remained competitive and attractive to<br />

the overseas buyers as compared to the<br />

prices <strong>of</strong> other equivalent foreign growths.<br />

With improvement in quality <strong>of</strong> Indian<br />

Table 5.1<br />

AREA, PRODUCTION, YIELD AND CONSUMPTION OF COTTON IN LAST FIVE<br />

YEARS INCLUDING CURRENT YEAR 2011-12.<br />

Cotton Year<br />

Area in lakh<br />

hectares<br />

Cotton<br />

Production in<br />

lakh bales <strong>of</strong> 170<br />

kgs<br />

Cotton Yield<br />

in Kgs/Hectare<br />

Cotton Consumption<br />

in lakh bales <strong>of</strong> 170<br />

kgs(Mill+Non-mill+Small<br />

mill)<br />

2006-07 91.44 280.00 521 232.03<br />

2007-08 94.14 307.00 554 236.88<br />

2008-09 94.06 290.00 524 229.00<br />

2009-10 103.10 305.00 503 259.00<br />

2010-11 111.42 325.00 496 253.00<br />

2011-12* 121.91 356.00 496 250.00<br />

Source: Cotton Advisory Board<br />

*As per CAB meeting held on 15 th Nov 2011<br />

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annual report 2011-12<br />

cotton in terms <strong>of</strong> contamination and trash<br />

contents at par with the international level<br />

the demand for Indian cotton has been<br />

increasing substantially. During the cotton<br />

season 2011-12, the cotton exports from<br />

the country had been placed at 80.00 lakh<br />

bales as against 70.00 lakh bales during<br />

2010-11.<br />

In the current cotton season 2011-12, due<br />

to increased gap between production vs.<br />

consumption, the cotton imports by China<br />

are expected to rise to 3.26 million tons as<br />

against 2.61 million. Besides this, world<br />

cotton trade is also expected to increase<br />

by 2% to 7.8 million tons as against 7.6<br />

million tons in previous year. Due to this<br />

as also due to increased availability <strong>of</strong><br />

cotton, the Cotton Advisory Board has<br />

placed cotton exports in 2011-12 at 80.00<br />

lakh bales as against 70.00 lakh bales<br />

in previous season. Looking to this, for<br />

cotton season 2011-12, the Government<br />

<strong>of</strong> India has placed cotton exports under<br />

OGL. However, cotton exports from the<br />

country shall depend upon the price parity<br />

<strong>of</strong> domestic cotton vis-à-vis equivalent<br />

foreign growths.<br />

Price <strong>of</strong> kapas (seed cotton)<br />

Government <strong>of</strong> India announces Minimum<br />

Support Price for two basic staple groups<br />

viz., medium long staple (staple length<br />

24.5mm to 25.5mm and micronnaire<br />

value 4.3 to 5.1) and long staple cotton<br />

(staple length 29.5mm to 30.5mm and<br />

micronnaire value 4.3 to 5.1).<br />

Cotton Corporation <strong>of</strong> India (CCI) is the<br />

nominated agency <strong>of</strong> the Government <strong>of</strong><br />

India for undertaking MSP operations in the<br />

event <strong>of</strong> prevailing kapas prices touching<br />

the MSP level. As per the mandate, in<br />

MSP operations, CCI purchase the entire<br />

quantity <strong>of</strong>fered to it by the cotton farmers<br />

at APMC market yards, without any<br />

quantitative restrictions.<br />

For cotton season 2011-12, the<br />

Government <strong>of</strong> India has increased the<br />

MSPs by 10% to 12% as compared to<br />

previous year.<br />

In current cotton season 2011-12, the<br />

prevailing kapas prices in almost all<br />

the cotton growing States have been<br />

ruling above MSP level. However, due<br />

to financial tightness caused by heavy<br />

losses suffered in previous year, the mills<br />

are refraining themselves from covering<br />

cotton requirement for lean season. This<br />

may put pressure on the prevailing kapas<br />

prices, especially in the States <strong>of</strong> Andhra<br />

Pradesh, Maharashtra, Madhya Pradesh<br />

and some parts <strong>of</strong> Gujarat may touch<br />

MSP level and with a view to ensure<br />

remunerative prices to the cotton growers,<br />

the nodal agencies may have to undertake<br />

MSP operations in such areas.<br />

COTTON CORPORATION OF INDIA<br />

LTD., (CCI), MUMBAI<br />

The Cotton Corporation <strong>of</strong> India Ltd., (CCI)<br />

was set up in 1970 with the objective <strong>of</strong><br />

acting as the canalizing agency for import<br />

<strong>of</strong> cotton and undertaking purchase <strong>of</strong> raw<br />

cotton for giving necessary price support to<br />

enterprising cultivators growing new varieties<br />

<strong>of</strong> cotton developed as substitute for imported<br />

long and extra long staple cottons as also for<br />

procuring raw cotton for textile mills, both in<br />

public and private sectors.<br />

Over the years, its operations have<br />

undergone significant changes in keeping<br />

with the developments taken place in the<br />

Indian cotton economy during past two<br />

decades.<br />

In the Textile Policy, 1985, CCI’s role was<br />

expanded to carry out commercial operations<br />

for meeting the cotton requirements <strong>of</strong><br />

institutional buyers and to fulfill the export<br />

quotas allocated to it by the Government<br />

<strong>of</strong> India. However, with liberalization,<br />

since cotton exports have been placed<br />

under Open General Licence (OGL), the<br />

system <strong>of</strong> allocation <strong>of</strong> export quotas in<br />

favour <strong>of</strong> different agencies have been<br />

dispensed with.<br />

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ministry <strong>of</strong> <strong>textiles</strong><br />

The Government <strong>of</strong> India had launched<br />

Technology Mission on Cotton (TMC) in<br />

February 2000 with four Mini Missions.<br />

CCI had been the implementing agency<br />

for Mini Mission III (Improvement <strong>of</strong><br />

Marketing Infrastructure) and Mini Mission<br />

IV (modernization/upgradation <strong>of</strong> existing<br />

G&P factories).<br />

The cotton season 2010-11 had been<br />

a unique year in the history <strong>of</strong> cotton<br />

economy <strong>of</strong> the country in as much as the<br />

cotton season witnessed unprecedented<br />

volatility in the prices <strong>of</strong> both kapas (seed<br />

cotton) and lint cotton. In the first half <strong>of</strong><br />

the season, cotton prices had reached a<br />

record level and the same subsequently<br />

dropped substantially. This was mainly<br />

due to historically tight world opening<br />

stock to use, slowing demand, difficulties<br />

to access credit by the cotton spinners,<br />

declining prices <strong>of</strong> cotton yarn etc.<br />

Since the prevailing kapas prices in<br />

cotton season 2010-11 had ruled above<br />

MSP level throughout the season, the<br />

Corporation had no occasion to undertake<br />

MSP operations in any <strong>of</strong> the cotton<br />

growing States. However, with a view to<br />

cater the needs <strong>of</strong> its regular buyer mills<br />

as also to ensure competitive prices to<br />

the cotton farmers, the Corporation had<br />

undertaken commercial operations and<br />

had purchased 13.66 lakh bales.<br />

COTTON ADVISORY BOARD (CAB)<br />

The Cotton Advisory Board (CAB) is a<br />

representative body <strong>of</strong> various interest<br />

groups/stakeholders in cotton sector viz.,<br />

Governmental agencies, cotton growers,<br />

textile <strong>industry</strong> and trade. It advises<br />

the Government generally on matters<br />

pertaining to production, consumption<br />

and marketing <strong>of</strong> cotton and also provides<br />

a forum for liaison amongst the cotton<br />

textile mill <strong>industry</strong>, the cotton growers,<br />

the cotton trade and the Government.<br />

The Board, reconstituted on 4 th May<br />

2010, has got 75 members <strong>of</strong> which 9 are<br />

Central Government nominees, 9 State<br />

Government nominees, 4 cotton farmers<br />

representatives, 3 representatives <strong>of</strong><br />

cotton manufacturers, 15 representatives<br />

<strong>of</strong> textile <strong>industry</strong>, 6 representatives <strong>of</strong><br />

cotton trade, 4 representatives <strong>of</strong> Ginning<br />

and Pressing sector, 4 representatives<br />

<strong>of</strong> cotton research and development<br />

institutions, 1 each <strong>of</strong> powerloom and<br />

handloom sector and 18 other nominated/<br />

special invitee members and one member-<br />

Secretary. The reconstituted Board is valid<br />

upto 4 th May 2012.<br />

INTERNATIONAL COTTON ADVISORY<br />

COMMITTEE (ICAC)<br />

The International Cotton Advisory<br />

Committee is an association <strong>of</strong> various<br />

Governments having interests in production,<br />

export, import and consumption <strong>of</strong> cotton.<br />

It is an organization designed to promote<br />

cooperation in the solution <strong>of</strong> cotton<br />

problems, particularly those <strong>of</strong> international<br />

scope and significance. India is a member <strong>of</strong><br />

the ICAC and makes an yearly contribution<br />

towards it, as assessed by it from time<br />

to time.<br />

The 70 th Plenary session <strong>of</strong> the ICAC was<br />

held in Buenos Aires, Argentina during<br />

September 2011. The theme <strong>of</strong> plenary<br />

meeting was “Public and Private sector<br />

role in the Cotton Value Chain: Ensuring<br />

Both Efficiency and Fairness”.<br />

The Cotton Yarn Advisory Board<br />

The Cotton Yarn Advisory Board, headed by<br />

the <strong>Textiles</strong> Commissioner was constituted<br />

on 13th September, 2010 up to 31st March,<br />

2012 or until further orders, whichever<br />

is earlier. It is a representative body <strong>of</strong><br />

various inters groups like Government<br />

agencies, <strong>textiles</strong> <strong>industry</strong> and trade. Its<br />

main functions are to monitor domestic and<br />

international prices <strong>of</strong> cotton yarn, suggest<br />

measures for increasing the availability <strong>of</strong><br />

cotton yarn, monitor import and export <strong>of</strong><br />

yarn and prepare the Cotton Yarn Balance<br />

Sheet.<br />

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annual report 2011-12<br />

CHAPTER VI<br />

THE JUTE AND JUTE<br />

TEXTILES INDUSTRY<br />

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annual report 2011-12<br />

CHAPTER-VI<br />

THE JUTE AND JUTE TEXTILES INDUSTRY<br />

Raw Jute<br />

The Jute <strong>industry</strong> occupies an<br />

important place in the national<br />

economy <strong>of</strong> India. It is one <strong>of</strong> the<br />

major industries in the eastern region,<br />

particularly in West Bengal. Jute, the<br />

golden fibre, meets all the standards for<br />

‘safe’ packaging in view <strong>of</strong> being a natural,<br />

renewable, biodegradable and ec<strong>of</strong>riendly<br />

product. It is estimated that the<br />

jute <strong>industry</strong> provides direct employment<br />

to 0.37 million workers in organized mills<br />

and in diversified units including tertiary<br />

sector and allied activities and supports<br />

the livelihood <strong>of</strong> around 4.0 million farm<br />

families. In addition, there are a large<br />

number <strong>of</strong> persons engaged in the trade<br />

<strong>of</strong> jute.<br />

In the world perspective, India is the<br />

major producer <strong>of</strong> both raw jute and jute<br />

products. Out <strong>of</strong> the total world production<br />

<strong>of</strong> Jute, Kenaf and allied fibre <strong>of</strong> 3.0 million<br />

tonnes in 2007-08, India produced 1.8<br />

million tonnes. In percentage terms India<br />

accounted for 60 % <strong>of</strong> world production<br />

in 2007-08. Global production <strong>of</strong> jute and<br />

allied fibres is estimated to have increased<br />

Jute Yarn<br />

by 25 % to 3.0 million tonnes in 2007-08<br />

compared to 2004-05 season. Production<br />

in India has also increased by 28% to 1.8<br />

million tonnes in 2007-08 over 2004-05.<br />

There are 83 composite jute mills in India.<br />

Out <strong>of</strong> the total 83 jute mills, 64 jute mills<br />

are located in West Bengal, 3 each in<br />

Bihar and U.P., 7 in Andhra Pradesh 2<br />

each in Chattisgarh & Orissa and 1 each<br />

in Assam and Tripura. Ownership- wise<br />

division is:- 6 mills are under Government<br />

<strong>of</strong> India’s P.S.U., 1 mill (Tripura) is under<br />

State Government, 2 mills (Assam & New<br />

Central) are in the co-operative sector and<br />

74 are privately owned mills.<br />

As on 31-01-2010 total number <strong>of</strong> looms<br />

installed in the jute <strong>industry</strong> stood at 48,245<br />

consisting <strong>of</strong> 23,372 Hessian looms, 22,148<br />

sacking looms, 1,058 C.B.C looms and<br />

others at 1,060. The installed spindles in<br />

jute mills other than 100% export oriented<br />

units were 731,408 comprising <strong>of</strong> 622,324<br />

fine spindles and 109,084 coarse spindles.<br />

Installed spindles in 100% export oriented<br />

units stood at 9,482 with fine spindles at<br />

6,974 and coarse spindles at 2,508. The<br />

65


ministry <strong>of</strong> <strong>textiles</strong><br />

maximum installed capacity in jute mills<br />

other than 100% export oriented units (on<br />

the basis <strong>of</strong> 305 working days per year) is<br />

estimated to be <strong>of</strong> 2.47 million tonnes per<br />

annum.<br />

RAW JUTE SCENARIO<br />

Raw jute crop is an important cash crop<br />

to the farmers. Cultivation <strong>of</strong> raw jute<br />

crop provides not only fibre, which has<br />

industrial use, but also the jute stick which<br />

is used as fuel by the farming community.<br />

Raw jute is produced mainly in the states<br />

<strong>of</strong> West Bengal, Bihar, Assam, Orissa,<br />

Andhra Pradesh, Tripura and Meghalaya.<br />

The table 6.1 will indicate the supply<br />

demand position <strong>of</strong> raw jute including<br />

mesta for the period from 2006-07 to<br />

2011-12:-<br />

JUTE SEEDS<br />

Based on the average area under jute<br />

cultivation in the country, the annual<br />

requirement <strong>of</strong> jute seeds is around 50-55<br />

thousand quintal. The average area under<br />

jute cultivation in West Bengal is little<br />

more than 6 lakh hectares for which the<br />

annual requirement <strong>of</strong> jute seeds is nearly<br />

35-40 thousand quintal. The present level<br />

<strong>of</strong> certified jute seed production can cater<br />

to the needs <strong>of</strong> nearly 35 per cent <strong>of</strong> the<br />

jute area in the country. Public Sector<br />

Organizations like the National Seeds<br />

Corporation, the Maharashtra State Seed<br />

Corporation, the State Farms Corporation<br />

<strong>of</strong> India are the major producers <strong>of</strong> jute<br />

seed. This apart, the Andhra Pradesh<br />

State Seeds Development Corporation<br />

and the West Bengal State Seeds<br />

Corporation are also involved in jute seed<br />

production. The total production <strong>of</strong> seed,<br />

mainly certified seed, by the Public Sector<br />

organizations is about 25-30 per cent<br />

<strong>of</strong> the total requirement. The rest <strong>of</strong> the<br />

seed is produced by the Private Sector<br />

organizations.<br />

For augmenting supply <strong>of</strong> certified seeds,<br />

Jute Corporation <strong>of</strong> India has taken the<br />

following steps:-<br />

Table 6.1<br />

RAW JUTE BALANCE SHEET<br />

(Qty.: In lakh bales <strong>of</strong> 180 kg <strong>of</strong> each bale)<br />

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12<br />

(A) SUPPLY<br />

i) Opening stock 8.00 23.00 22.00 8.00 12.00 18.00<br />

100.00 99.00 82.00 90.00 100.00 110.00<br />

iii) Import 4.00 8.00 2.00 3.00 6.00 5.00<br />

Total 112.00 130.00 106.00 101.00 118.00 133.00<br />

(B)DISTRIBUTION<br />

iv)Mill consumption 81.00 99.00 89.00 77.00 90.00 95.00<br />

v) Domestic/Industrial 8.00 9.00 9.00 10.00 10.00 10.00<br />

consumption<br />

vi) Export Neg Neg Neg 2.00 Nil 1.00<br />

Total 89.00 108.00 98.00 89.00 100.00 106.00<br />

(C)CLOSING STOCK 23.00 22.00 8.00 12.00 18.00 27.00<br />

Source: Jute Advisory Board<br />

66


annual report 2011-12<br />

●<br />

●<br />

●<br />

●<br />

In 2010, JCI had targeted a distribution<br />

<strong>of</strong> 500 MT certified jute seeds during<br />

sowing season i.e. March/April,<br />

2010.<br />

The subsidy <strong>of</strong> Rs. 40 per kg was<br />

provided to jute growers.<br />

JCI distributed 437.580 MT seeds.<br />

JCI aims to distribute 1360 MT <strong>of</strong><br />

certified jute seeds in the year 2011<br />

through its 171 DPCs along with the<br />

help <strong>of</strong> State Cooperative Societies<br />

and Farmers Club.<br />

● JCI has so far (as on 04.05.2011)<br />

distributed 676.96 MT seeds.<br />

Further, the <strong>of</strong>fices under <strong>Ministry</strong> <strong>of</strong><br />

<strong>Textiles</strong> (National Jute Board and Jute<br />

Corporation <strong>of</strong> India) are working on<br />

projects with CRIJAF and NIRJAFT<br />

(research organizations under the <strong>Ministry</strong><br />

<strong>of</strong> Agriculture) to develop better jute seeds<br />

to improve agronomical practices for jute<br />

cultivation. In addition, the JCI and NJB<br />

work together to distribute high yielding<br />

certified jute seeds to farmers at subsidized<br />

rates. In the coming season the target for<br />

such distribution is 1300 MT (out <strong>of</strong> a total<br />

demand <strong>of</strong> about 6000 MT).<br />

Jute Packaging Material<br />

(Compulsory Use in Packing<br />

Commodities) Act, 1987:<br />

The Jute Packaging Material (Compulsory<br />

Use in Packaging Commodities) Act,<br />

1987 has been enacted to provide for<br />

the compulsory use <strong>of</strong> jute packaging<br />

material in the supply and distribution <strong>of</strong><br />

certain commodities in the interests <strong>of</strong><br />

production <strong>of</strong> raw jute and jute packaging<br />

material, and <strong>of</strong> persons engaged in<br />

the production there<strong>of</strong>, and for matters<br />

connected therewith.<br />

Clause 4 (1) <strong>of</strong> the Jute Packaging<br />

Material (Compulsory Use in Packaging<br />

Commodities) Act, 1987 empowers the<br />

Central Government to constitute a<br />

Standing Advisory Committee consisting<br />

<strong>of</strong> such persons as have, in the opinion <strong>of</strong><br />

that Government, the necessary expertise<br />

to give advice in the matter <strong>of</strong> determining<br />

the commodity or class <strong>of</strong> commodities or<br />

percentages there<strong>of</strong> in respect <strong>of</strong> which<br />

jute packaging material shall be used in<br />

their packing.<br />

As per clause 5 <strong>of</strong> the Jute Packaging<br />

Material (Compulsory Use in Packaging<br />

Commodities) Rule, 1987, the said<br />

Committee shall meet at least once a<br />

year to review the commodity or class<br />

<strong>of</strong> commodities or percentages there<strong>of</strong><br />

required to be packed in jute packaging<br />

material under section 3 <strong>of</strong> the JPM Act.<br />

The Standing Advisory Committee shall<br />

after considering the following matters<br />

make recommendations to the Central<br />

Government:-<br />

●<br />

●<br />

The existing level <strong>of</strong> usage <strong>of</strong> jute<br />

material.<br />

The quantity <strong>of</strong> raw jute available.<br />

● The quantity <strong>of</strong> jute material<br />

available.<br />

●<br />

●<br />

●<br />

The protection <strong>of</strong> interests <strong>of</strong> persons<br />

engaged in the jute Industry and in<br />

the production <strong>of</strong> raw jute.<br />

The need for continued maintenance<br />

<strong>of</strong> jute <strong>industry</strong>.<br />

Such other matters as the Standing<br />

Advisory Committee may think fit.<br />

The Central Government may after<br />

considering the recommendations <strong>of</strong><br />

the SAC, from time to time, issue orders<br />

under section 3(1) <strong>of</strong> the JPM Act for<br />

the compulsory use <strong>of</strong> jute packaging<br />

material for certain commodity or class <strong>of</strong><br />

commodities or percentages there<strong>of</strong>, if it<br />

is satisfied that it is necessary to do so in<br />

the interest <strong>of</strong> production <strong>of</strong> raw jute and<br />

jute packaging material.<br />

67


ministry <strong>of</strong> <strong>textiles</strong><br />

The level <strong>of</strong> reservation recommended by<br />

the Central Government in the past few<br />

years have been given at table 6.2.<br />

In the last Standing Advisory Committee<br />

(19 th ) meeting held on 13.06.2011, the<br />

representative <strong>of</strong> the Indian Sugar Mills<br />

Association requested that like cement and<br />

fertilizer, sugar should also be removed<br />

from JPM Act with immediate effect. The<br />

representative <strong>of</strong> the National Cooperative<br />

Sugar Factories Association and All India Flat<br />

Tape Association had endorsed the views <strong>of</strong><br />

ISMA. While summarizing the discussions,<br />

it was emphasized that the socio-economic<br />

factors have to be taken into account while<br />

arriving at the decision for reservation norms<br />

for 2011-12. After detailed deliberations on<br />

the issue, the Standing Advisory Committee<br />

agreed to recommend to the Government<br />

that 90% <strong>of</strong> both foodgrains and sugar be<br />

compulsorily packed in jute bags. However,<br />

CCEA has approved 100% <strong>of</strong> both foodgrains<br />

and sugar be compulsorily packed in jute<br />

bags. The statutory order in this regard has<br />

been issued.<br />

PRODUCTION OF JUTE GOODS<br />

During 2010-11 (April-March), the total<br />

production <strong>of</strong> jute goods was around<br />

1565.7 thousand MT compared to 1323.3<br />

thousand MT in the corresponding period<br />

<strong>of</strong> 2009-10 registering an increase <strong>of</strong><br />

18.3%. Production <strong>of</strong> jute goods in the<br />

current financial year upto October, 2011<br />

is at 895.2 thousand MT as against 930.0<br />

thousand MT during the corresponding<br />

period <strong>of</strong> last financial year.<br />

Trends in the production <strong>of</strong> jute goods from<br />

the year 2003-04 are given at table 6.3.<br />

Table 6.2<br />

Mandatory Jute Packaging Orders issued under JPM Act, 1987<br />

Order Date Year Sugar Foodgrains<br />

24.07.2006 2006-07 100% 100%<br />

09.08.2007 2007-08 100% 100%<br />

01.09.2008 2008-09 100% 100%<br />

22.09.2009 2009-10 100% 100%<br />

27.08.2010 2010-11 100% 100%<br />

Table 6.3<br />

(April-March) Hessian Sacking CBC Others Total<br />

2003-04 305.2 979.3 4.7 84.4 1571.3<br />

2004-05 310.3 992.0 4.1 94.0 1613.1<br />

2005-06 320.0 1007.4 6.2 134.2 1582.1<br />

2006-07 240.3 874.7 2.9 120.2 1356.3<br />

2007-08 350.3 1143.0 6.0 276.7 1776.0<br />

2008-09 297.8 1071.4 4.1 260.4 1633.7<br />

2009-10 206.5 921.6 3.6 191.6 1323.3<br />

2010-11 244.4 1076. 9 4.7 239.7 1565.7<br />

2011-12<br />

134.8 661.9 2.1 96.3 895.2<br />

(April-Oct.)<br />

2010-11<br />

(April-Oct)<br />

153.9 619.3 2.9 153.9 930.0<br />

68


annual report 2011-12<br />

The Projections for production during<br />

2011-12 is given at table 6.4.<br />

Items<br />

Table 6.4:<br />

Qty. in ‘000’ MT<br />

Hessian 231.1<br />

Sacking 1134.8<br />

CBC 3.6<br />

Others 165.1<br />

Total 1534.6<br />

DOMESTIC OFF-TAKE OF JUTE<br />

GOODS<br />

During 2010-11 (April-March), the total<br />

domestic consumption <strong>of</strong> jute goods was<br />

1315.5 thousand MT as against 1205.2<br />

thousand MT in the corresponding period<br />

<strong>of</strong> 2009-10, recording an increase <strong>of</strong><br />

12.15.% During the current financial<br />

year 2011-12 (April-October), domestic<br />

consumption <strong>of</strong> total jute goods is 776.8<br />

thousand MT as against 781.0 thousand MT<br />

in the corresponding period <strong>of</strong> the last year.<br />

Volume <strong>of</strong> B. Twill bags purchased by<br />

different food grain procuring agencies<br />

during financial year 2010-11 was<br />

20,57,000 bales (683,952 MT) as against<br />

16,73,000 bales (556,272 MT) in 2009-10.<br />

In the current financial year 2011-12 (upto<br />

December), a total quantity <strong>of</strong> 15,44,000<br />

bales (513,380 MT) has been purchased<br />

as against 14,88,000 bales (494,760 MT)<br />

during the corresponding period <strong>of</strong> last<br />

financial year.<br />

Trends in domestic consumption <strong>of</strong> jute<br />

goods from 2003-04 are given at table 6.5.<br />

Table 6.5<br />

QTY. IN ‘000’ MT<br />

(April-March) Hessian Sacking CBC Others Total<br />

2003-04 253.3 910.0 0.3 179.3 1342.9<br />

2004-05 249.5 996.2 1.1 178.4 1424.1<br />

2005-06 237.6 974.2 0.7 165.3 1377.8<br />

2006-07 209.1 854.4 0.5 152.2 1216.2<br />

2007-08 271.4 1101.9 1.4 168.6 1543.3<br />

2008-09 249.8 1013.0 0.9 173.4 1436.2<br />

2009-10 182.4 879.6 1.0 142.2 1205.2<br />

2010-11 182.3 1034.4 0.9 133.9 1351.5<br />

2011-12(April-Oct) 101.5 607.6 0.7 67.6 776.8<br />

2010-11(April-Oct) 110.5 590.5 0.4 79.6 781.0<br />

The Projections <strong>of</strong> domestic consumption<br />

during 2011-12 are given at table 6.6.<br />

Items<br />

Table 6.6<br />

Qty: In’000’MT<br />

Hessian 174.0<br />

Sacking 1041.6<br />

CBC 1.2<br />

Others 115.9<br />

Total 1232.7<br />

EXPORT PERFORMANCE<br />

During 2010-11 (April-March) exports <strong>of</strong><br />

total jute goods were recorded at 199.3<br />

thousand MT valued at Rs. 1363.29 crore<br />

as against 110.5 thousand MT valued at<br />

859.49 crore in the corresponding period <strong>of</strong><br />

financial year 2009-10. Export <strong>of</strong> jute goods<br />

during 2010-11 has increased by 80.4%<br />

in terms <strong>of</strong> quantity and 58.6% in terms <strong>of</strong><br />

value. During the current financial year (upto<br />

69


ministry <strong>of</strong> <strong>textiles</strong><br />

August), total export <strong>of</strong> jute goods stands<br />

at 76.1 thousand MT valued at Rs. 575.53<br />

crore as against 99.4 thousand MT valued<br />

at Rs. 644.54 crore in the corresponding<br />

period <strong>of</strong> last financial year.<br />

EXPORT PERFORMANCE OF JUTE<br />

GOODS<br />

Trends in exports <strong>of</strong> jute goods from 2006-<br />

07 to 2011-12 (up to August) are given at<br />

table 6.7.<br />

(A)<br />

Table 6.7<br />

Quantity in ‘000 M.Ton<br />

Value: Rs. in Crores<br />

(Apr-Mar) 2006-07 2007-08 2008-09 2009-10 2010-11<br />

ITEM Qnty Value Qnty Value Qnty Value Qnty Value Qnty Value<br />

Hessian 122.2 376.12 67.8 299.83 53.0 419.53 31.3 318.45 53.9 264.98<br />

Sacking 31.6 103.25 30.0 91.38 53.2 209.54 26.5 111.04 40.6 170.10<br />

CBC 0.1 0.65 - - - - - - - -<br />

Yarn 78.3 273.15 92.1 285.18 82.9 216.92 44.4 144.20 94.4 503.34<br />

JDP - 256.48 - 402.55 294.53 230.83 356.37<br />

Others 10.6 45.51 14.4 64.63 10.7 75.64 8.3 54.97 10.4 68.50<br />

Total 242.8 1055.16 204.3 1143.57 199.8 1216.16 110.5 859.49 199.3 1363.29<br />

% change<br />

over last year -15% -11% -16% 8% -2.2% 6.3% -44.6% -29.3% 80.4% 58.6%<br />

(B)<br />

ITEM<br />

APRIL-AUGUST AUGUST<br />

Qty. (in’000’MT) Value (Rs. In Crores) Qty. (in’000’MT)<br />

2010 2011<br />

%<br />

Change<br />

over<br />

Last year<br />

2010 2011<br />

%<br />

Change<br />

over last<br />

year<br />

2010 2011<br />

%<br />

Change<br />

over last<br />

year<br />

Hessian 27.2 25.5 -6.2% 140.69 131.79 -6.32% 6.0 6.4 6.6%<br />

Sacking 16.5 32.1 94.5% 62.91 151.79 141.28% 4.7 7.1 51.1%<br />

Yarn 51.0 15.2 -70.2% 239.17 91.45 -61.76% 9.0 3.9 -56.6%<br />

JDPs - - - 173.18 177.46 2.4% - - -<br />

Others 4.7 3.3 -29.8% 28.59 23.04 19.4% 1.0 0.6 -4.0%<br />

TOTAL 99.4 76.1 -23.4% 644.54 575.53 -10.70% 20.7 18.0 -13.0%<br />

Source : JMDC<br />

The Projected export during 2011-12 is given at table 6.8.<br />

Table 6.8<br />

Items Qty (In: ‘000’ MT) Value (Rs. Crores)<br />

Hessian 61.2 316.3<br />

Sacking 77.0 364.3<br />

Yarn 36.5 219.5<br />

JDPs - 425.9<br />

Others 8.0 55.3<br />

TOTAL 182.7 1381.3<br />

70


annual report 2011-12<br />

The value <strong>of</strong> export <strong>of</strong> jute diversified products is given at table 6.9.<br />

Table 6.9<br />

Value <strong>of</strong> export <strong>of</strong> jute diversified products from India<br />

(Value Rs. Million)<br />

Products 2005-06 2006-07 2007-08 2008-09 2009-10<br />

Floor Coverings 2133.90 1675.70 1825.80 1242.40 1268.90<br />

Hand & Shopping Bags 880.03 703.10 1122.80 1656.90 981.32<br />

Wall Hangings 4.61 4.20 2.20 1.10 1.24<br />

Gift Articles 21.63 9.27 11.10 4.00 17.62<br />

Decorative Fabrics 22.91 21.90 16.80 17.20 21.47<br />

Others 62.84 150.63 6.80 23.30 17.73<br />

Total JDPs 3125.92 2564.80 2985.50 2945.50 2308.28<br />

Total jute goods exports 11862.40 10551.60 11435.70 12161.6 8594.64<br />

% share <strong>of</strong> JDP export total jute<br />

exports.<br />

26% 24% 26% 24% 27%<br />

Import <strong>of</strong> Raw jute and Jute<br />

goods<br />

During the year 2009-10 volume <strong>of</strong> import<br />

<strong>of</strong> jute goods stood at 112.8 thousand MT<br />

valued at Rs.453.2 crores as against 70.94<br />

thousand MT valued at Rs.202.99 crores<br />

in 2008-09. This implies an increase <strong>of</strong><br />

59.0% in terms <strong>of</strong> quantity and 123.2% in<br />

terms <strong>of</strong> value over 2008-09. Import <strong>of</strong> raw<br />

jute has also increased. Volume <strong>of</strong> import<br />

<strong>of</strong> raw jute during 2009-10 stood at 82.9<br />

thousand MT valued at Rs.197.4 crores<br />

as against 59.0 thousand M.T. valued<br />

at Rs.89.00 crores. Thus, import <strong>of</strong> raw<br />

jute both in terms <strong>of</strong> quantity and value<br />

have increased by 40.5% and 121.7%<br />

respectively. Import <strong>of</strong> jute goods during<br />

2011-12 (April/Aug) has also increased by<br />

63.4% to 48.7 thousand M.T. as against<br />

29.8 thousand M.T. in the corresponding<br />

period <strong>of</strong> last year. Import <strong>of</strong> raw jute has<br />

also increased substantially by 809.7%<br />

to 93.7 thousand M.T. as against 10.3<br />

thousand M.T. during the last year.<br />

Trends in the import <strong>of</strong> jute goods and raw<br />

jute is given at table 6.10.<br />

PRICE SITUATION OF RAW JUTE<br />

2009-10<br />

In the 2009-10 season, due to a very<br />

small carryover stock <strong>of</strong> around 8.0 lakh<br />

bales and moderate production <strong>of</strong> 90.0<br />

lakh bales, the ruling market prices <strong>of</strong> raw<br />

jute prevailed much higher than the MSP<br />

in all jute growing states right from the<br />

beginning. In the month <strong>of</strong> September,<br />

2009 the ruling prices came down from<br />

Rs.2801/- per quintal to Rs.2046/- per<br />

quintal due to arrival <strong>of</strong> the new crop.<br />

Thereafter, the prices showed an<br />

increasing trend due to the feeling that the<br />

actual crop would fall short <strong>of</strong> estimates<br />

and it reached Rs.3308/- per quintal at<br />

the end <strong>of</strong> July, 2010. There was a strike<br />

in jute mills in West Bengal from 14-12-<br />

2009 to 12-02-2010. Due to this strike, a<br />

total quantity <strong>of</strong> around 15.0 lakh bales<br />

have been consumed less. Despite the<br />

strike in jute mills, there was no sign <strong>of</strong><br />

decreasing trend in the price <strong>of</strong> raw jute<br />

as jute mills kept on purchasing raw jute<br />

in anticipation <strong>of</strong> further rise in price after<br />

the strike.<br />

71


(A)<br />

Table 6.10<br />

ministry <strong>of</strong> <strong>textiles</strong><br />

Quantity in ‘000’ MT<br />

Value Rs. In Crores<br />

(Apr- Mar)> 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010<br />

ITEM Qnty Value Qnty Value Qnty Value Qnty Value Qnty Value<br />

Raw Jute 136.22 189.77 94.36 150.31 171.80 196.72 59.0 89.00 82.9 197.4<br />

Jute Products 77.02 172.56 60.93 171.63 57.68 138.09 70.94 202.99 112.8 453.2<br />

Total 213.24 362.33 155.29 321.94 229.48 334.81 129.98 291.99 195.7 650.6<br />

% change 80% 126% -27% -11% 47.8% 4.0% -43.3% -12.7% 50.6% 122.8%<br />

over last year<br />

(B)<br />

ITEM<br />

2010 2011<br />

APRIL-AUGUST AUGUST<br />

Qty. (in’000’MT) Value (Rs. In Crores) Qty. (in’000’MT)<br />

%<br />

Change<br />

over<br />

Last year<br />

2010 2011<br />

%<br />

Change<br />

over last<br />

year<br />

2010 2011<br />

%<br />

Change<br />

over last<br />

year<br />

Raw Jute 10.3 93.7 809.7% 28.5 253.4 789.1% 4.2 13.9 230.9%<br />

Jute Products<br />

29.8 48.7 63.4% 129.3 215.4 66.6% 8.9 9.1 2.2%<br />

TOTAL 40.1 147.4 267.6% 157.8 468.8 197.1% 13.1 23.0 75.6%<br />

2010-11<br />

The 2010-11 season started with a<br />

carryover <strong>of</strong> 12 lakh bales and a drought<br />

like situation occurred in a number <strong>of</strong><br />

jute growing districts in West Bengal and<br />

Bihar. There was a shortage <strong>of</strong> high grade<br />

jute due to a shortage <strong>of</strong> water available<br />

for retting. The season began with a price<br />

<strong>of</strong> Rs.3005/- per quintal and went upto<br />

Rs.3377/- per quintal in the month <strong>of</strong> Nov,<br />

2010. Thereafter, the prices came down<br />

marginally and reached Rs.2724/- per<br />

quintal at the end <strong>of</strong> jute season.<br />

2011-12<br />

The season started with a huge carryover<br />

stock <strong>of</strong> 18.0 lakh bales and the crop<br />

for the year was estimated at 110.0 lakh<br />

bales. The price <strong>of</strong> raw jute recorded at the<br />

beginning <strong>of</strong> the season was Rs.2475/-<br />

per quintal. As the crop started arriving in<br />

the market, the prices have gone down.<br />

At the end <strong>of</strong> November, 2011, the price<br />

ruled at Rs.2079/- per quintal.<br />

INCENTIVES TO THE JUTE<br />

SECTOR<br />

A) FIXATION OF SUPPORT PRICE AND<br />

THE PROCUREMENT OF RAW JUTE<br />

UNDER MSP:<br />

Purchases made under MSP and<br />

commercial operation during the last<br />

several years by the Jute Corporation <strong>of</strong><br />

India are given at table 6.11.<br />

The minimum support price is fixed by the<br />

Govt. on the basis <strong>of</strong> recommendations<br />

<strong>of</strong> the Commission for Agricultural Costs<br />

and Prices (CACP). As per CACP reports,<br />

while formulating the agricultural price<br />

72


annual report 2011-12<br />

Table 6.11<br />

FIXATION OF SUPPORT PRICE AND THE<br />

PROCUREMENT OF RAW JUTE UNDER MSP<br />

Procurement (Qty: In ‘000’ Bales)<br />

Year Support Comml. Total<br />

1999-00 18 89 107<br />

2000-01 464 0 464<br />

2001-02 246 0 246<br />

2002-03 1314 0 1314<br />

2003-04 1118 0 1118<br />

2004-05 352 0 352<br />

2005-06 0 141 141<br />

2006-07 136 348 484<br />

2007-08 756 0 756<br />

2008-09 103.7 0 103.7<br />

2009-10 0 0 0<br />

2010-11 0 34.4 34.4<br />

2011-12<br />

(Upto 29-<br />

11-11)<br />

44.5 0 44.5<br />

policy CACP takes into account various<br />

factors such as cost <strong>of</strong> production, over<br />

all demand/ supply situation, domestic<br />

level and international prices and effect <strong>of</strong><br />

minimum support price on general price<br />

level.<br />

CACP every year also conducts meetings<br />

<strong>of</strong> all stake holders to decide minimum<br />

support price. The MSP announced by<br />

Govt. <strong>of</strong> India from 2002-03 to 2011-12<br />

are given at table 6.12.<br />

B) Continuation <strong>of</strong> Jute Packaging<br />

Material (Compulsory Use in Packing<br />

Commodities) Act, 1987 keeping in<br />

view the interest <strong>of</strong> raw jute growers<br />

and workers involved in the jute<br />

<strong>industry</strong>.<br />

The level <strong>of</strong> reservation recommended<br />

by the Central Government from<br />

Year<br />

Table 6.12<br />

MSP <strong>of</strong> TD-5<br />

grade <strong>of</strong> raw jute<br />

Ex-Assam (Rs./<br />

Quintal)<br />

% age increase<br />

over<br />

previous<br />

year<br />

2002-03 850 4.9<br />

2003-04 860 1.2<br />

2004-05 890 3.5<br />

2005-06 910 2.2<br />

2006-07 1000 9.9<br />

2007-08 1055 5.5<br />

2008-09 1250 18.5<br />

2009-10 1375 10.0<br />

2010-11 1575 14.5<br />

2011-12 1675 6.3<br />

July 2006 to August 2010 is given at<br />

table 6.2.<br />

C) Duty Entitlement Pass Book (DEPB)<br />

benefits to Jute products (Table 6.13<br />

& 6.14)<br />

D) Technology Upgradation Fund<br />

Scheme (TUFS) :<br />

The scheme provides the focal point for<br />

modernization efforts through technology<br />

upgradation in the jute <strong>industry</strong>. The<br />

cumulative position <strong>of</strong> sanction and<br />

disbursement under TUF as on 30.6.2010<br />

is given at table 6.15.<br />

E) Jute Technology Mission<br />

The Jute Technology Mission [JTM]<br />

spanning a period <strong>of</strong> 5 years has been<br />

launched by the Government <strong>of</strong> India<br />

w.e.f. the financial year 2007-08. The<br />

Jute Technology Mission with a total<br />

outlay <strong>of</strong> Rs. 355.5 crores has four<br />

73


ministry <strong>of</strong> <strong>textiles</strong><br />

Sl.<br />

No.<br />

Table 6.13<br />

Product Group: Miscellaneous Products<br />

Product Code:90<br />

Description DEPB Rate(%) Value Cap<br />

24 Jute Soil Saver 5.0 --<br />

25 Jute Yarn/Jute Twine 4.0 --<br />

26 Hessian cloth<br />

Hessian Made-Up<br />

27 Sacking cloth<br />

Sacking Made-Up<br />

5.0<br />

5.0<br />

6.0<br />

6.0<br />

Table 6.14<br />

Product Group: Plastics<br />

Product Code: 63<br />

Sl. No. Description DEPB Rate (%) Value Cap<br />

Rs.40/ Kg<br />

Rs.55/Kg<br />

Rs.30/Kg<br />

Rs.40/Kg<br />

34. Hessian bags with LDPE/HDPE/PP<br />

Liner/Lamination and with/Without<br />

Zipper/Handle<br />

37. Jute Bags with LDPE/HDPE/PP<br />

Liner/Lamination and with/<br />

Without Zipper/Handle<br />

83. PVC fabricated bags (made from<br />

PVC leather cloth backed jute<br />

And polypropylene<br />

3.00 Rs.175/Kg<br />

3.00 Rs. 175/Kg<br />

5.00 --<br />

116. Poly Jute Bags 3.00 Rs.40/Kg<br />

589. Textile Machinery 7.0 Rs. 7.0 Lakh<br />

519. Sewing Machinery 4.0<br />

No. <strong>of</strong><br />

Applications<br />

Received<br />

Total<br />

cost <strong>of</strong><br />

projects<br />

Amount <strong>of</strong><br />

Loan<br />

Required<br />

Table 6.15<br />

Rs. In crore<br />

Sanctioned Disbursed<br />

No. <strong>of</strong><br />

Applications<br />

Amount<br />

No. <strong>of</strong><br />

Applications<br />

Amount<br />

56 542.20 410.85 56 405.84 56 395.48<br />

Mini Missions pertaining to agriculture<br />

research and seed development,<br />

agronomic practices, harvest and<br />

post harvest techniques, primary and<br />

secondary processing <strong>of</strong> raw jute,<br />

diversified product development and<br />

marketing and distribution.<br />

The Jute Technology Mission has been<br />

divided into four Mini Missions and the<br />

implementing agencies <strong>of</strong> each Mission<br />

are given at table 6.16.<br />

Details <strong>of</strong> activities <strong>of</strong> four Mini Missions<br />

are given below:<br />

Mini Mission-I<br />

In order to increase the yield <strong>of</strong> jute and<br />

mesta, some new breeding methods<br />

74


annual report 2011-12<br />

Table 6.16<br />

Rs. In lakhs<br />

and techniques have been adopted as<br />

under:<br />

i) Plant type breeding, ii) Heterosis<br />

breeding, iii) Resistance breeding & iv)<br />

Quality breeding.<br />

In addition to conventional breeding,<br />

mutation breeding, inter-specific crosses<br />

and biotechnological approaches will also<br />

been explored. The following activities<br />

have also been undertaken:-<br />

●<br />

Mission Implementing Agencies Fund Allotted<br />

Mini Mission-I <strong>Ministry</strong> <strong>of</strong> Agriculture (ICAR) 705.18<br />

Mini mission-II <strong>Ministry</strong> <strong>of</strong> Agriculture (DARE) 4990.04<br />

Mini Mission-III <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong> (JCI) 6458.00<br />

Mini Mission-IV <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong> (NJB) 23,402.00<br />

Total 35555.22<br />

Low cost Technology for development<br />

<strong>of</strong> suitable agronomic practices for<br />

maximizing income from jute vis-à-vis<br />

other crops in the cropping system as<br />

a whole.<br />

Bio-mass level- while developing the<br />

technology the biomass level <strong>of</strong> the crop<br />

should be kept in mind so as to ensure<br />

growth with stability <strong>of</strong> the micro-economy<br />

<strong>of</strong> the farmer. The total funds allotted for<br />

MM-I are Rs. 705.18 lakhs.<br />

Mini Mission-II<br />

In order to achieve the best <strong>of</strong> production<br />

and management <strong>of</strong> technologies for<br />

jute and allied fibres crop and their post<br />

harvest technology to accelerate the<br />

production and quality improvement <strong>of</strong><br />

the crops the following activities have<br />

been adopted:<br />

i) System approach,<br />

iv) Frontline Demonstration,<br />

v) On Farm Package Demonstration,<br />

vi) Industry-Agriculture Linkage,<br />

vii) Application <strong>of</strong> Bio-technology tools to<br />

improving retting efficiency,<br />

<strong>viii</strong>) Planning and implementation <strong>of</strong><br />

Development Programme,<br />

ix) Special Programme for finer fibre and<br />

x) Integrated Jute Cultivation.<br />

The total funds allotted for MM-II are Rs.<br />

4990.04 lakhs<br />

Mini Mission –III<br />

Upgradation <strong>of</strong> infrastructure for:<br />

i) Weighment facility,<br />

ii) Sale within Market facilities,<br />

iii) Auction/Sale Platforms, sheds,<br />

Assortment sheds, Baling Presses,<br />

Bale Godown etc. Construction <strong>of</strong> 20<br />

Market Yards @ Rs. 100 lakh each,<br />

40 DPCs at the cost <strong>of</strong> Rs. 110 lakh<br />

each and 50 Retting Tanks at the cost<br />

<strong>of</strong> Rs. 10 lakh each etc.<br />

Organizational infrastructure:<br />

i) Market linkages,<br />

ii) Market information system,<br />

iii) Bank Credit option to prevent distress<br />

sale.<br />

The total funds allotted for MM-III is<br />

Rs. 6,458.00 lakhs.<br />

ii)<br />

Adaptive Research <strong>of</strong> farm Trials,<br />

iii) Strengthening Research- Extension<br />

Linkage,<br />

Mini Mission-IV<br />

i) Modernization & Technological<br />

upgradation,<br />

75


ministry <strong>of</strong> <strong>textiles</strong><br />

ii) Improvement <strong>of</strong> productivity Quality<br />

management,<br />

iii) develop human resources for the jute<br />

<strong>industry</strong>,<br />

iv) Designing & developing <strong>of</strong> Jute<br />

Diversified Products (JDPs),<br />

v) Help NGOs for JDP development,<br />

vi) Commercialization <strong>of</strong> Technology for<br />

JDP and<br />

vii) Jute parks for Jute Diversified<br />

Products (JDP).<br />

The total funds allotted for MM-IV are Rs.<br />

23, 402.00 lakhs.<br />

The progress <strong>of</strong> the schemes is satisfactory<br />

at present. The physical progress <strong>of</strong> the<br />

schemes under Mini Mission – IV <strong>of</strong> JTM<br />

got slightly affected in the initial period as<br />

the start <strong>of</strong> the implementation processes<br />

was delayed due to some procedural /<br />

administrative reasons, viz, drafting <strong>of</strong><br />

the scheme parameters and “Operating<br />

Manuals”, interactions with the members<br />

<strong>of</strong> the <strong>industry</strong> and other jute interests, in<br />

eliciting their views / comments, acceptance<br />

<strong>of</strong> the scheme components, etc. and<br />

finally consideration and approval <strong>of</strong> the<br />

“Operating Manuals” by the <strong>Ministry</strong>. The<br />

implementation effectively commenced in<br />

2008-09 onwards, but the progress was<br />

again hindered by the prolonged strike<br />

in the jute <strong>industry</strong> in 2009-10. Further,<br />

most <strong>of</strong> the Schemes under Mini Mission<br />

IV were back-ended – which indicates<br />

that the maximum utilization <strong>of</strong> fund and<br />

the achievements can be recorded and<br />

would be visible by the end <strong>of</strong> the Mission<br />

period.<br />

The Standing Committee on Labour<br />

[15th Lok Sabha] on the “Development<br />

<strong>of</strong> Jute Sector”, in appreciating the initial<br />

constraints encountered in implementation<br />

<strong>of</strong> JTM and considering the significance<br />

<strong>of</strong> the Mission for the revival <strong>of</strong> Jute<br />

Sector, recommended that JTM be further<br />

extended to the 12 th Five Year Plan and<br />

instead <strong>of</strong> setting cumulative targets for five<br />

years, yearly targets be fixed under each<br />

scheme for their effective implementation.<br />

The continuation <strong>of</strong> JTM for a further period<br />

<strong>of</strong> 2 (two) years is presently under active<br />

consideration <strong>of</strong> the Government.<br />

Till 30 th September, 2011, the<br />

achievements under Mini Mission IV,<br />

both physical and financial, were more<br />

than 50%. However, to summarise, NJB<br />

has utilized Rs.141.46 crore or 60.45%<br />

<strong>of</strong> the total Mission period outlay <strong>of</strong><br />

Rs.234.02 crore.<br />

SCHEMES UNDER MINI MISSION<br />

IV OF JTM BEING IMPLEMENTED<br />

BY THE NATIONAL JUTE BOARD<br />

[NJB] (Table 6.17)<br />

Sl.<br />

No.<br />

Table 6.17<br />

NAME OF THE SCHEMES<br />

6. SCHEMES FOR MODERNISATION OF<br />

ORGANISED JUTE MILLS<br />

1 Training <strong>of</strong> Workers & Supervisors<br />

2 Machinery Development<br />

3 Productivity Improvement & TQM<br />

Facilitation<br />

4 Acquisition <strong>of</strong> Machinery and Plant (subsidy<br />

component @ 20%)<br />

7. SCHEMES FOR PROMOTION OF JUTE<br />

DIVERSIFICATION<br />

1 Design and Development <strong>of</strong> JDP<br />

2 For helping the NGOs and Women Self<br />

Help Groups (WSHGs) for developing jute<br />

diversified products<br />

3 Scheme for Promotion <strong>of</strong> Jute Diversification<br />

4 Scheme for Commercialisation <strong>of</strong><br />

Technology<br />

5 Scheme for setting up Jute Parks for the<br />

Diversified sector<br />

76


annual report 2011-12<br />

STATUS OF IMPLEMENTATION OF<br />

SCHEMES UNDER MM-IV OF THE<br />

JUTE TECHNOLOGY MISSION AS<br />

ON 30 TH SEPTEMBER, 2011<br />

PHYSICAL<br />

Scheme 6.1 : Sustainable Human<br />

Resource Development in Jute Mill<br />

Sector<br />

● Training has been imparted to<br />

18,071 Master trainers, Supervisors,<br />

Maintenance Workers and other<br />

Workers in 39 jute mills.<br />

●<br />

●<br />

The Master Trainers and Supervisors<br />

have already trained a further 7620<br />

workers in 16 mills.<br />

Institute <strong>of</strong> Jute Technology has<br />

developed 21 audio-visual modules<br />

on different process <strong>of</strong> production as<br />

training aid for sustainable training in<br />

the jute mills.<br />

Scheme No. 6.2 : Development <strong>of</strong> Jute<br />

Mill Machinery<br />

●<br />

●<br />

●<br />

●<br />

Scheme No. 6.2 <strong>of</strong> JTM takes<br />

care <strong>of</strong> Machinery Development in<br />

the jute <strong>industry</strong> and the status <strong>of</strong><br />

implementation is as follows :<br />

Out <strong>of</strong> five, four processing machines<br />

namely Composite Card, Drawing,<br />

Spinning & Weaving are under<br />

development in CJMD.<br />

Concept testing is carried out for<br />

carding machine.<br />

Prototype development <strong>of</strong> 5 modern<br />

technology machines have been<br />

undertaken under “Centre for Jute<br />

Machinery Development (CJMD)<br />

and initial design and development <strong>of</strong><br />

“Chain-gill Finisher Drawing Frame”<br />

is under process.<br />

●<br />

2 machines, viz. Rotating Spindle<br />

Spg. Frames [Type II (8.5 – 14 lbs]<br />

and S4 Type Loom [Weaving] –<br />

Shuttle-less developed under the<br />

Scheme are under the process <strong>of</strong><br />

commercialization.<br />

● The proposal for development<br />

<strong>of</strong> Electronic & Microprocessor<br />

Based Integrated instruments<br />

for “Development <strong>of</strong> Integrated<br />

Equipments for Jute Grading System”<br />

under ISMDCP was assigned to<br />

National Institute <strong>of</strong> Research on<br />

Jute and Allied Fibre Technology<br />

(NIRJAFT), Kolkata.<br />

Scheme No. 6.3 : Productivity<br />

Improvement & TQM Facilitation<br />

The scheme to improve productivity and<br />

to establish Total Quality Management<br />

(TQM) facilities in the jute <strong>industry</strong> has<br />

been provided under Mini Mission – IV <strong>of</strong><br />

the JTM with NJB as facilitating agency<br />

<strong>of</strong> the scheme. The identified areas <strong>of</strong><br />

operation <strong>of</strong> Productivity Improvement &<br />

TQM Facilitation are<br />

●<br />

●<br />

●<br />

●<br />

●<br />

Total Quality Management,<br />

Energy Management<br />

Waste Management<br />

Maintenance Management<br />

Work Study & Ergonomics.<br />

To facilitate these studies, NJB has<br />

engaged 4 National level reputed<br />

Agencies / Institutions to conduct the<br />

studies under the scheme and implement<br />

recommendations in selected 6 jute mills.<br />

After completion <strong>of</strong> diagnostic studies,<br />

corrective implementation plans have<br />

been finalized in consultation with the<br />

respective jute mills. Implementation <strong>of</strong><br />

the corrective measures has started in<br />

the 5 Jute Mills.<br />

77


ministry <strong>of</strong> <strong>textiles</strong><br />

TQM studies were completed in 6 jute<br />

mills [5 in West Bengal and 1 in Andhra<br />

Pradesh] and in 6 Jute Diversified Product<br />

units in Kerala. Recommendations are<br />

under implementation.<br />

Scheme No. 6.4 :Modernisation &<br />

Upgradation <strong>of</strong> Technology in Jute Mills-<br />

Capital Subsidy<br />

●<br />

The upper limit <strong>of</strong> the subsidy has<br />

been raised to Rs. 350 lakhs per mill<br />

for the existing units and Rs.400 lakhs<br />

for mills at North Eastern States and<br />

for setting up new units.<br />

● Since inception (1st March, 2007),<br />

208 claims were settled and subsidy<br />

<strong>of</strong> Rs.54.88 crores (out <strong>of</strong> approved<br />

fund <strong>of</strong> Rs.80 Crores) has been<br />

released against investment for<br />

modernization <strong>of</strong> Rs.274.42 crores<br />

all over India.<br />

●<br />

●<br />

●<br />

77.57% <strong>of</strong> the investments have<br />

been for Mill-side machinery meant<br />

for preparatory to spinning and<br />

winding processes. 14.24% <strong>of</strong> the<br />

investments have been for weaving to<br />

finishing processes <strong>of</strong> manufacturing.<br />

Remaining 8.19% was for Material<br />

handling and other miscellaneous<br />

machinery.<br />

84 units have so far availed the<br />

benefits under the scheme, which<br />

included 61 composite jute mills, 18<br />

yarn & twine mills, 2 diversified jute<br />

product units, 2 weaving unit and one<br />

under Jute Park Scheme [Scheme<br />

7.5].<br />

State-wise – West Bengal 61 units,<br />

Andhra Pradesh 9 units, Bihar 2<br />

units, Haryana 2 units, Kerala 1 unit,<br />

Orissa 2, NER (Assam) 6 units and<br />

Chattisgarh 1 unit availed <strong>of</strong> the<br />

benefits.<br />

Scheme No. 7.1 : Design and<br />

Development <strong>of</strong> Jute Diversified<br />

Products [JDPs]<br />

Scheme No.7.1 <strong>of</strong> JTM takes care <strong>of</strong><br />

Design and Development <strong>of</strong> JDPs.<br />

Total 21 market driven R&D Studies<br />

on different aspects, associated with<br />

the Design and Development <strong>of</strong> JDPs,<br />

have been awarded to the following<br />

institutions:<br />

● Indian Institute <strong>of</strong> Technology,<br />

Kharagpur – 7 studies.<br />

● South India Textile Research<br />

Association, Coimbatore – 2 studies.<br />

●<br />

●<br />

●<br />

National Institute <strong>of</strong> Research on Jute<br />

and Allied Fibre Technology, Kolkata<br />

– 1 study.<br />

Indian Jute Industries Research<br />

Association, Kolkata – 6 studies.<br />

Institute <strong>of</strong> Jute Technology, Kolkata<br />

– 4 studies.<br />

● Northern India Textile Research<br />

Association – 1 study.<br />

● The studies range between 36-<br />

60 months each. NJB monitors<br />

the progress and marketability <strong>of</strong><br />

the products and process under<br />

development by organizing seminars<br />

/ workshops / meetings regularly with<br />

the stakeholders.<br />

●<br />

In addition, NJB engaged 11 agencies<br />

(designers, institutes, entrepreneurs)<br />

for undertaking need based design<br />

development projects <strong>of</strong> jute<br />

diversified products.<br />

Scheme No. 7.2 : Helping NGOs &<br />

Women Self Help Groups [WSHGs] for<br />

developing JDPs<br />

Scheme No. 7.2 <strong>of</strong> JTM takes care <strong>of</strong><br />

the need for helping Women Self Help<br />

Groups [WSHGs], NGOs & other weaker<br />

78


annual report 2011-12<br />

sections <strong>of</strong> the society for developing Jute<br />

Diversified Products (JDPs). The status<br />

<strong>of</strong> implementation <strong>of</strong> the scheme since<br />

inception is as follows :<br />

●<br />

●<br />

●<br />

●<br />

46 NGOs have been identified.<br />

258 Clusters developed.<br />

13950 artisans <strong>of</strong> 872 WSHGs spread<br />

in 88 districts <strong>of</strong> 18 States had been<br />

imparted training on production <strong>of</strong><br />

JDPs.<br />

531 Nos. machines were distributed<br />

to 260 WSHGs<br />

Scheme No. 7.3 : Scheme for Promotion<br />

<strong>of</strong> Jute Diversification<br />

Scheme No. 7.3 <strong>of</strong> JTM takes care <strong>of</strong><br />

the need for providing institutional /<br />

infrastructural support to the budding<br />

entrepreneurs comprising WSHGs,<br />

NGOs and other weaker sections <strong>of</strong> the<br />

society for developing JDPs. The status<br />

<strong>of</strong> implementation <strong>of</strong> the scheme since<br />

inception is as follows :<br />

●<br />

●<br />

●<br />

●<br />

●<br />

36 Jute Service Centres have been<br />

established<br />

30 Jute Raw Material Banks have<br />

been established<br />

1373 training programmes were<br />

organized by Jute Service Centres<br />

benefiting 26459 artisans.<br />

301 JDP, WSHG units were set up.<br />

138 machines were distributed to the<br />

units developed by the Jute Service<br />

Centres.<br />

Scheme No. 7.5 : Setting up <strong>of</strong> Jute Parks<br />

for the Diversified Sector<br />

●<br />

●<br />

9 Jute Park proposals (6 in West<br />

Bengal, 1 in Bihar & 2 in NER) have<br />

been principally approved.<br />

Setting up <strong>of</strong> 6 Jute Parks have<br />

commenced (4 in West Bengal, 1 in<br />

Bihar & 1 in NER).<br />

STATUS OF IMPLEMENTATION OF SCHEMES UNDER MM-IV<br />

OF THE JUTE TECHNOLOGY MISSION AS ON 30 TH SEPTEMBER, 2011<br />

FINANCIAL:<br />

Sl.<br />

No.<br />

SCHEMES<br />

MISSION<br />

TARGET<br />

PERFORMANCE TILL 30.09.2011<br />

Approved<br />

Fund<br />

for Total<br />

Mission<br />

Period<br />

2007-<br />

08<br />

2008-<br />

09<br />

2009-<br />

10<br />

2010-<br />

11<br />

2011-12<br />

(upto<br />

30.09.11)<br />

Cumulative<br />

TOTAL<br />

(30.9.11)<br />

1 2 3 4 5 6 7 8 9=(4+5+6+7+8)<br />

6 SCHEMES FOR MODERNISATION OF ORGANISED JUTE MILLS<br />

6.1 Training <strong>of</strong> Workers<br />

& Supervisors<br />

6.2 Machinery<br />

Development<br />

6.3 Productivity<br />

Improvement &<br />

TQM Facilitation<br />

4.50 2.00 0.77 0.50 1.00 0.23 4.50<br />

28.00 0.08 5.75 7.62 5.38 1.39 20.22<br />

6.00 0.04 0.12 1.00 2.95 0.09 4.20<br />

79


ministry <strong>of</strong> <strong>textiles</strong><br />

Sl.<br />

No.<br />

SCHEMES<br />

MISSION<br />

TARGET<br />

Approved<br />

Fund<br />

for Total<br />

Mission<br />

Period<br />

2007-<br />

08<br />

2008-<br />

09<br />

PERFORMANCE TILL 30.09.2011<br />

2009-<br />

10<br />

2010-<br />

11<br />

2011-12<br />

(upto<br />

30.09.11)<br />

Cumulative<br />

TOTAL<br />

(30.9.11)<br />

1 2 3 4 5 6 7 8 9=(4+5+6+7+8)<br />

6.4 Acquisition <strong>of</strong><br />

Machinery and<br />

Plant (subsidy)<br />

80.00 5.86 7.46 11.24 21.75 7.91 54.22<br />

TOTAL (6) 118.50 7.98 14.10 20.36 31.08 9.62 83.14<br />

7 SCHEMES FOR PROMOTION OF JUTE DIVERSIFICATION<br />

7.1 Design and<br />

Development <strong>of</strong><br />

JDP<br />

7.2 For helping the<br />

NGOs and Women<br />

Self Help Groups<br />

(WSHGs) for<br />

developing JDPs<br />

7.3 Scheme for<br />

Promotion <strong>of</strong> Jute<br />

Diversification:<br />

7.4 Scheme for<br />

Commercialisation<br />

<strong>of</strong> Technology<br />

7.5 Scheme for setting<br />

up Jute Parks for<br />

the Diversified<br />

sector<br />

14.00 2.20 2.56 1.52 1.98 1.30 9.56<br />

17.00 0.38 1.52 1.79 3.15 1.79 8.63<br />

23.52 1.97 5.21 4.91 4.79 1.82 18.70<br />

1.00 0.00 0.00 0.00 0.00 0.00 0.00<br />

60.00 0.06 0.83 1.50 13.31 0.12 15.82<br />

TOTAL (7) 115.52 4.61 10.12 9.72 23.23 5.03 52.71<br />

Total Mini Mission-<br />

IV (Schemes)<br />

Administrative/<br />

Monitoring<br />

Expenses<br />

234.02 12.59 24.22 30.08 54.31 14.65 135.85<br />

0.35 0.97 1.58 2.03 0.68 5.61<br />

Total Mini<br />

Mission-IV<br />

234.02 12.94 25.19 31.66 56.34 15.33 141.46<br />

80


annual report 2011-12<br />

Each <strong>of</strong> the schemes under Mini Mission<br />

IV <strong>of</strong> JTM (as implemented by the National<br />

Jute Board) is evaluated and monitored<br />

continuously through three-tier system–<br />

(i) Evaluation and Monitoring Committee<br />

<strong>of</strong> each <strong>of</strong> the sub-scheme, which<br />

meets at periodical intervals. (ii) Project<br />

Management Committee chaired by the<br />

Jute Commissioner, Govt. <strong>of</strong> India - which<br />

monitors progress <strong>of</strong> implementation <strong>of</strong><br />

different schemes under Mini Mission<br />

IV <strong>of</strong> the Jute Technology Mission and<br />

(iii) Empowered Committee (the Apex<br />

Monitoring Body <strong>of</strong> JTM) chaired by the<br />

Secretary, <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong>, Govt. <strong>of</strong><br />

India and Chairperson, National Jute<br />

Board – which considers the status<br />

<strong>of</strong> implementation <strong>of</strong> the entire Jute<br />

Technology Mission and approves the<br />

courses <strong>of</strong> action recommended by the<br />

Project Management Committee.<br />

The 3-tier monitoring mechanism in place<br />

as above exercises constant and strict<br />

vigil and surveillance over implementation<br />

<strong>of</strong> different schemes under Mini Mission<br />

IV <strong>of</strong> JTM.<br />

In addition, at the instance <strong>of</strong> the<br />

Government, National Jute Board engaged<br />

M/s ICRA Management Consulting<br />

Services to conduct a Study on Mid-Term<br />

Evaluation <strong>of</strong> Schemes under Mini Mission<br />

IV <strong>of</strong> the Jute Technology Mission.<br />

The mid term evaluation considered the<br />

project’s continued relevance, efficiency<br />

levels, and effectiveness. In addition, the<br />

evaluation provided recommendations<br />

to improve the execution and thus the<br />

likelihood <strong>of</strong> achieving its development<br />

objectives.<br />

In evaluating the overall status <strong>of</strong><br />

implementation <strong>of</strong> the Schemes, the<br />

agency recommended as follows:-<br />

“Most <strong>of</strong> the Schemes in the Mission have<br />

just started yielding results and benefits<br />

for the jute mills and for the jute diversified<br />

sector. In some cases, the results are<br />

already visible, while in others, results<br />

will become visible on the completion <strong>of</strong><br />

the Schemes. As per our discussions with<br />

different stakeholders in the Scheme,<br />

we recommend that the Schemes be<br />

continued for another term to benefit a<br />

wider section <strong>of</strong> the <strong>industry</strong>.”<br />

STATUS OF IMPLEMENTATION OF<br />

SCHEMES UNDER THE NON-PLAN<br />

FUNDING<br />

i) Subsidy Scheme for Distribution <strong>of</strong><br />

Certified Seeds<br />

With intensive interaction had with the<br />

farmers in the matter <strong>of</strong> distribution <strong>of</strong><br />

certified seeds – during 2009-10, total<br />

4375.80 quintals <strong>of</strong> certified seeds were<br />

distributed at a subsidy <strong>of</strong> Rs.40/- per<br />

KG under the scheme. During the year<br />

2010-11, the target was fixed at 13,600<br />

quintals against similar subsidy. Out <strong>of</strong><br />

the target for distribution fixed, till date<br />

6,600 quintals <strong>of</strong> certified seeds were<br />

distributed at a subsidy <strong>of</strong> Rs.40/- per KG<br />

under the scheme. The network <strong>of</strong> the<br />

Jute Corporation <strong>of</strong> India is being utilized<br />

for implementation <strong>of</strong> the scheme.<br />

ii) Scheme for Jute Farmers’<br />

Information and Testing Centres<br />

Identification and setting up <strong>of</strong> 50 Farmers’<br />

Information Centres, imparting training to<br />

80 groups <strong>of</strong> 50 farmers each, organization<br />

<strong>of</strong> 2 Farmers’ School to encourage<br />

and educate the latest technological<br />

advancements in seed production and<br />

farming practices have been planned in<br />

2010-11 under non-plan for promoting<br />

raw jute supply stability.<br />

iii) Scheme for Support Supply Chain<br />

and Bulk Supply <strong>of</strong> JDPs<br />

Financial assistance is extended to jute<br />

entrepreneurs to ensure supply chain<br />

81


ministry <strong>of</strong> <strong>textiles</strong><br />

and bulk supply <strong>of</strong> JDPs for selective<br />

and mass consumptions. This assistance<br />

is aimed at meeting increasing demand<br />

for jute shopping bags and other JDP’s<br />

arising mainly due to restrictions on the<br />

use <strong>of</strong> plastic, and thereby supporting<br />

the cause <strong>of</strong> health <strong>of</strong> environment.<br />

Till date, 53 applications for opening <strong>of</strong><br />

retail outlets have been received from 31<br />

jute entrepreneurs. NJB has accorded<br />

approval to opening <strong>of</strong> 10 retail outlets at<br />

Bangalore, Chennai, Agra, Bhubaneshwar<br />

and Kolkata.<br />

iv) Fast Track Schemes for Export<br />

Market Development <strong>of</strong> JDPs.<br />

Marketing assistance is extended to the<br />

exporters for participation in different<br />

promotional events <strong>of</strong> the National Jute<br />

Board under Fast Track Export Market<br />

Development scheme. During 2010-11,<br />

NJB received 180 EMDA applications<br />

from 58 exporters, settled 99 applications<br />

and released Rs.140.64 lakhs to 44<br />

exporters for their participation in 42<br />

events. During 2011-12, NJB has received<br />

100 applications from 64 exporters for<br />

participation in 36 events and disbursed<br />

(till 30 th September, 2011) Rs.42.85 lakh<br />

to 28 exporters against 35 applications for<br />

participation in 10 events.<br />

v) Schemes for Workers’ Welfare in<br />

Jute Sector.<br />

National Jute Board [NJB] provides<br />

assistance for the welfare <strong>of</strong> workers in<br />

jute-producing units both in jute mills and<br />

in small units producing JDPs. NJB utilise<br />

non-Plan funds to improve :-<br />

(a) the sanitation, health facilities and<br />

working conditions in the mill sector<br />

and<br />

(b) provide incentives to the small and<br />

medium JDP units for compliance<br />

with prescribed working conditions.<br />

This Workers’ Welfare Scheme therefore<br />

has 2 broad sub-schemes, one for the<br />

mills and one for the small sector. In<br />

both cases, proposals from mills or JDP<br />

units are prepared by the management<br />

in consultation with the accredited<br />

unions.<br />

Component I – Mill Sector<br />

Sanitation facilities<br />

This is a scheme to provide hygienic<br />

sanitary facilities for mill workers and<br />

their families, first in the mill quarters<br />

and in the second stage in the working<br />

areas. Sanitary facilities include designed<br />

sanitary blocks with toilet facilities for<br />

men and women, wash basins, sewage,<br />

etc. In order to speed up the process <strong>of</strong><br />

construction contracts are allotted to thirdparty<br />

tie-up with M/s Sulabh International<br />

or such other reputed organizations<br />

especially those agencies which may have<br />

a government dispensation exempting<br />

them from participation in tender. The<br />

concerned mill first incurs the expenditure<br />

and National Jute Board thereafter<br />

reimburse 90% <strong>of</strong> the costs subject to a<br />

maximum reimbursement <strong>of</strong> ` 20.00 lakh,<br />

subject to submission <strong>of</strong> claim along with<br />

accounts and vouchers and physical<br />

verification <strong>of</strong> the facility.<br />

Component II – JDP / small &<br />

medium sector<br />

Incentive for Social Audit<br />

All authentic international, multi-national<br />

and national big stores require, as per<br />

respective country-law, audit certificate<br />

before or for placing orders on the<br />

manufacturers <strong>of</strong> lifestyle jute products<br />

which are manufactured by the MSEs in<br />

the Informal Sector <strong>of</strong> Jute. Hence, export<br />

oriented MSEs in the Informal Sector <strong>of</strong><br />

jute shall conduct such Social Audits.<br />

82


annual report 2011-12<br />

Social audit is undertaken annually by the<br />

Firms like SGS, SEDEX, INTERTEK, STR<br />

LABs and the ISO certifying firms mainly<br />

under the following major heads:-<br />

1. Child Labour.<br />

2. Minimum Wages.<br />

3. Social Security – ESI/P.F./Gratuity.<br />

4. Working Hours.<br />

5. Occupational Safety & Health Care.<br />

6. Waste Disposal.<br />

7. Non-discrimination.<br />

8. Freedom <strong>of</strong> negotiation and formation<br />

<strong>of</strong> group or union.<br />

NJB provides 50% <strong>of</strong> the cost <strong>of</strong> annual<br />

compliance audit for each registered unit<br />

subject to a maximum <strong>of</strong> ` 1,00,000/- per<br />

unit per year.<br />

*****<br />

83


84<br />

ministry <strong>of</strong> <strong>textiles</strong>


annual report 2011-12<br />

CHAPTER VII<br />

SERICULTURE & SILK<br />

INDUSTRY<br />

85


86<br />

ministry <strong>of</strong> <strong>textiles</strong>


annual report 2011-12<br />

CHAPTER VII<br />

SERICULTURE & SILK INDUSTRY<br />

India continues to be the Second largest<br />

producer <strong>of</strong> silk in the World. Among<br />

the four varieties <strong>of</strong> silk produced, as<br />

in 2010-11, Mulberry accounts for 80.2%<br />

(16360 MT), Eri 13.5% (2760 MT), Tasar<br />

5.7% (1166 MT) and Muga 0.6% (124MT)<br />

<strong>of</strong> the total raw silk production in the<br />

country.<br />

Sericulture is an important labourintensive<br />

and agro-based cottage<br />

<strong>industry</strong>, providing gainful occupation to<br />

around 7.25 million persons in rural and<br />

semi-urban areas in India. Of these, a<br />

sizeable number <strong>of</strong> workers belong to the<br />

economically weaker sections <strong>of</strong> society.<br />

There is substantial involvement <strong>of</strong> women<br />

in this Industry.<br />

In the Fifth year <strong>of</strong> the XI Plan i.e.,<br />

2011-12, the provisional production<br />

data received up to April – December<br />

period, it is seen that the production <strong>of</strong><br />

mulberry raw silk increased by 11.8% (to<br />

13080 MT) compared to the production<br />

<strong>of</strong> 11696 MT in the same period <strong>of</strong> the<br />

previous year (2010-11). Vanya raw<br />

silk production was increased by 4.0%<br />

(2170 MT) during April – December<br />

period <strong>of</strong> the year 2011-12 as compared<br />

to the production <strong>of</strong> 2087 MT during the<br />

same period <strong>of</strong> the year 2010-11.<br />

Table 7.1<br />

Physical Targets and achievements during XI plan<br />

Physical Progress<br />

SL.<br />

No<br />

Particulars<br />

XI Plan<br />

Target<br />

(2007-12)<br />

2010-11 2011-12 2012-13<br />

Achieve<br />

ment<br />

Anticip ated Achiev<br />

ement<br />

Target<br />

(XII Plan)<br />

I. Mulberry Plantation<br />

2.18 1.70 1.97 2.05<br />

(Lakh ha.)<br />

II. Production <strong>of</strong> Raw Silk (in M.T)<br />

(a) Mulberry<br />

BV 5000 1400 1805 2100<br />

CB 18000 14960 16590 16635<br />

Sub Total 23000 16360 18395 18735<br />

(b) a) Tasar 420 1166 1782 1830<br />

b) Eri 2390 2760 2926 3160<br />

c) Muga 190 124 127 130<br />

Sub Total 3000 4050 4835 5120<br />

Grand Total (a+b) 26000 20410 23230 23855<br />

III. Cumulative Employment<br />

77.04 72.5 75.60 79.00<br />

(Lakh persons)<br />

IV. Exports (Crores `) 4500 2863.76 3630 4065<br />

87


ministry <strong>of</strong> <strong>textiles</strong><br />

III. THE SCHEMES/PROGRAMMES<br />

OF CENTRAL SILK BOARD<br />

The Plan programmes for development<br />

<strong>of</strong> Sericulture and Silk Industry in India,<br />

carried out through Central Silk Board,<br />

are broadly classified at table 7.2.<br />

Sl.No.<br />

Table 7.2<br />

Major Programmes <strong>of</strong> CSB<br />

1 R&D / Transfer <strong>of</strong> Technology / Training /<br />

IT Initiatives (CS)<br />

2 Seed Organisation and HRD (CS)<br />

3 Quality Certification Systems (CS)<br />

4 Catalytic Development Programme (CSS)<br />

CS: Central Sector Scheme CSS: Centrally<br />

Sponsored Scheme<br />

1. a). RESEARCH AND DEVELOPMENT<br />

The main Research & Training Institutes<br />

<strong>of</strong> the CSB provide R&D and Training<br />

support for the development <strong>of</strong> sericulture.<br />

The institutes at Mysore (Karnataka)<br />

Berhampore (West Bengal) and Pampore<br />

(J&K) deals with mulberry sericulture.<br />

One at Ranchi (Jharkhand) deals with<br />

Tasar culture. The institute established<br />

at Lahdoigarh, Jorhat (Assam) deals with<br />

Muga and Eri culture. Regional Sericulture<br />

Research Stations (RSRS/RTRS/RERS)<br />

for mulberry and non-mulberry has<br />

been functioning for adoptive Research,<br />

refining and dissemination <strong>of</strong> the research<br />

findings and <strong>of</strong> tackling the regional field<br />

issues <strong>of</strong> the <strong>industry</strong>. Besides, a network<br />

<strong>of</strong> Research Extension Centre (RECs)<br />

& its sub units for mulberry and non<br />

mulberry are also functioning to provide<br />

extension support to sericulturists. In<br />

order to provide R&D support in post<br />

cocoon sector, the Board has established<br />

a Central Silk Technological Research<br />

Institute (CSTRI) at Bangalore. In<br />

addition, the CSB has also set up a<br />

Silkworm Seed Technology Laboratory<br />

(SSTL) in Bangalore (Karnataka), a<br />

Central Sericultural Germplasm Resource<br />

Centre (CSGRC) at Hosur (Tamil Nadu)<br />

and a Seri-Biotech Research Laboratory<br />

(SBRL) at Bangalore.<br />

During 2011-12, 40 Research projects<br />

are continued. Further, 29 new research<br />

projects were initiated. Against a target<br />

<strong>of</strong> 30 Research Projects scheduled to be<br />

completed, 23 projects have already been<br />

concluded (up to November 2011) and<br />

remaining 7 projects will be concluded by<br />

March 2012.<br />

1 b). TRANSFER OF TECHNOLOGY<br />

In order to increase productivity and quality<br />

<strong>of</strong> silk, a chain <strong>of</strong> Research Extension<br />

Centres are engaged for transfer <strong>of</strong><br />

technologies from Research Institutes to<br />

the field.<br />

1. c). TRAINING<br />

The CSB organizes a number <strong>of</strong> training<br />

programmes at its Research and Training<br />

Institutes. The total number <strong>of</strong> persons<br />

trained under different courses during<br />

2011-12 (up to November, 2011) is<br />

detailed at table 7.3.<br />

1. d). IT INITIATIVE:<br />

Under the IT initiatives, in XI Plan, CSB<br />

concentrated on s<strong>of</strong>tware development<br />

by using contemporary technologies and<br />

networking <strong>of</strong> various cocoon and silk<br />

markets with free flow <strong>of</strong> information on<br />

the availability <strong>of</strong> the raw material, market<br />

trends, etc. on its websites. Information<br />

required for traders, buyers, and other<br />

stakeholders shall be hosted on the<br />

web and improves upon the interactive<br />

interface <strong>of</strong> website.In addition, facilities<br />

like on-line subscription to scientific<br />

e-journals (which will be available for<br />

access to entire CSB scientists), on-line<br />

submission <strong>of</strong> research progress reports,<br />

video conferencing among Research<br />

Institutes <strong>of</strong> CSB, etc. will be created.<br />

88


annual report 2011-12<br />

Sl.<br />

No.<br />

Particulars 2011-12<br />

(up to November<br />

2011)<br />

Table 7.3<br />

No. <strong>of</strong> persons<br />

anticipated to be<br />

trained by the end<br />

<strong>of</strong> 2011-12<br />

1 Structured Course 32 32 DOS/NGO<br />

Category<br />

2 Capsule Course 337 500 CSB/DOS / NGO<br />

3 Adhoc Training &<br />

Skill Development<br />

4 Entrepreneurship<br />

Development<br />

& Management<br />

Development<br />

Programmes<br />

587 4512 Students/ Staff/ Entrepreneurs<br />

/ Farmers<br />

311<br />

(10 programmes)<br />

821<br />

( 20 programmes)<br />

TOTAL 1267 5865<br />

a). Resource Development<br />

Programme<br />

b). Management Development<br />

Programme<br />

c). Technology Up-gradation<br />

Programme<br />

2. SEED ORGANISATION ( SILKWORM<br />

SEED PRODUCTION AND SUPPLY)<br />

Under National Silkworm Seed<br />

Organization (NSSO) a network <strong>of</strong> 19<br />

Basic Seed Farms (BSF) produce and<br />

supply the basic seed for production <strong>of</strong><br />

commercial silkworm seed in the seed<br />

production centres functioning under CSB<br />

and State Departments. 19 Silkworm<br />

Seed Production Centres (SSPCs) are<br />

functioning under NSSO in different States<br />

to support the <strong>industry</strong>. Similarly, on the<br />

tasar side, the CSB has established 21<br />

Basic Seed Multiplication & Training<br />

Centres (BSM&TC) and one Central Tasar<br />

Silkworm Seed Station (CTSSS) for supply<br />

<strong>of</strong> tropical tasar basic seed & 1 oak tasar<br />

grainage and 3 REC-Cum-BSM&TCs for<br />

supply <strong>of</strong> oak tasar basic seed. Under<br />

muga sector, 8 Basic Seed Farms and<br />

1 Silkworm Seed Production Centre are<br />

functioning. For production and supply <strong>of</strong><br />

eri seed, CSB has established 5 Silkworm<br />

Seed Production Centres.<br />

Emphasis was given towards production<br />

<strong>of</strong> quality dfls by adopting Quality<br />

Management System in seed production<br />

under ISO 9001:2008 certification in<br />

18 SSPCs. During 2011-12 four more<br />

SSPCs are to be covered under ISO<br />

certification.<br />

The details <strong>of</strong> progress achieved by the<br />

units during 2011-12 (up to Dec., 11) is<br />

given at table 7.4.<br />

3. IMPLEMENTATION OF CENTRALLY<br />

SPONSORED SCHEME (CSS)<br />

VIZ. CATALYTIC DEVELOPMENT<br />

PR0GRAMME (CDP) DURING XI PLAN<br />

CSB, being a Science and Technology<br />

(S&T) based Research and Development<br />

organization, the main thrust has been<br />

on Research based activities. The<br />

Board is covering areas like Research<br />

and Technology Development, Seed<br />

maintenance & production and<br />

Development <strong>of</strong> Sericulture & Silk<br />

Industry.<br />

During X Plan, Catalytic Development<br />

Programme (CDP) was implemented in<br />

collaboration with states with an aim to<br />

promote adoption <strong>of</strong> improved technology<br />

practices developed by the Research<br />

Institutes <strong>of</strong> CSB. The broad objectives <strong>of</strong><br />

the CDP are technology absorption, quality<br />

up-gradation, investment generation,<br />

productivity improvement and employment<br />

generation.<br />

89


Sl.<br />

No.<br />

Particulars<br />

Achievement<br />

during<br />

2010-11<br />

Table 7.4<br />

Target<br />

Achievement during 2011-12<br />

Achievement<br />

during<br />

April-<br />

Dec, 11<br />

ministry <strong>of</strong> <strong>textiles</strong><br />

Anticipated<br />

January, to<br />

March, 2012<br />

(Dfls in lakh nos.)<br />

Anticipated<br />

(upto<br />

March, 2012)<br />

1 Mulberry<br />

a. Basic seed 9.87 9.93 8.20 1.73 9.93<br />

b.Commercial seed 293.42 315 213.71 101.29 315<br />

2. VANYA<br />

a. Basic seed<br />

i. Tasar 31.91 32.59 35.08 - 34.55<br />

ii. Oak Tasar 1.31 2.37 1.33 1.04 2.37<br />

iii. Muga 1.20 2.05 1.80 0.25 2.05<br />

iv. Eri - 0.37 -<br />

b.Commercial seed<br />

i. Muga 1.54 0.50 0.39 0.11 0.50<br />

ii. Eri 2.59 2.75 2.40 0.35 2.75<br />

The components under the Catalytic<br />

Development Programme envisage<br />

development and expansion <strong>of</strong> host<br />

plantations, development <strong>of</strong> farm and<br />

post-cocoon sector infrastructure, upgradation<br />

<strong>of</strong> reeling and processing<br />

technologies in silk, enterprise<br />

development programme, support for<br />

extension & publicity etc.<br />

Outlay approved for XI Plan<br />

The total cost for implementation <strong>of</strong><br />

the CDP during the XI Plan is pegged<br />

at Rs.1527.97 crores <strong>of</strong> which CSB’s<br />

share is Rs.821.74 crores (Revised Cost<br />

Estimates). Against the Central Share an<br />

expenditure <strong>of</strong> Rs. 576.51 Crore has been<br />

incurred till 2010-11. During 2011-12 an<br />

amount <strong>of</strong> Rs. 130.47 Crore has been<br />

released/ spent towards implementation<br />

<strong>of</strong> various schemes / components under<br />

CDP against the allocation <strong>of</strong> Rs. 245.23<br />

Crore.<br />

Important achievements made so far<br />

under CDP during the XI plan are given<br />

at table 7.5.<br />

Major Achievements made under CDP<br />

during the last three years (2008-09 to<br />

2010-11) and during 2011-12 <strong>of</strong> the XI<br />

Plan are given at table 7.6.<br />

4. QUALITY CERTIFICATION SYSTEMS:<br />

One <strong>of</strong> the main objectives <strong>of</strong> the Quality<br />

Certification System is to initiate suitable<br />

measures towards strengthening quality<br />

assurance, quality assessment and<br />

quality certification. Under the scheme,<br />

two components viz. “Cocoon Testing<br />

Units” and “Promotion <strong>of</strong> Silk Mark” are<br />

being implemented:<br />

a) ESTABLISHMENT OF COCOON<br />

TESTING UNITS<br />

In order to facilitate cocoon testing in<br />

different cocoon markets <strong>of</strong> the country<br />

an amount <strong>of</strong> Rs. 1.00 lakh ( unit cost) is<br />

provided towards procurement <strong>of</strong> testing<br />

equipments. It is proposed to establish<br />

25 such Units during XI plan. The entire<br />

assistance is provided by Central Silk<br />

90


annual report 2011-12<br />

Sl.<br />

No.<br />

Table 7.5<br />

Important achievements made so far under CDP during the XI Plan are given below:<br />

Details Unit XI Plan<br />

Target<br />

Achievement<br />

(as on Dec-2011)<br />

1<br />

Support to farmers for the construction <strong>of</strong><br />

Rearing Houses<br />

No. 67,409 53270<br />

2 Drip Irrigation Ha. 27,715 20,337<br />

3 Chawki Rearing Centre No. 397 298<br />

4 Rearing Equipment support to farmers No 68,030 48773<br />

5 Support to TasarRearers Ha. 20,369 19283<br />

6 Start-up tools to Erirearers Acres 19,218 13,089<br />

7 Support to MugaRearers Acres 11,071 10,970<br />

8<br />

Support to Vanya Private Garineurs (Tasar<br />

and Muga)<br />

No. 4,353 4,763<br />

9 Incentive for bivoltine production MTs <strong>of</strong> silk 1,632 1,421<br />

10 Quality Linked Cocoon and Yarn Market<br />

No. <strong>of</strong> states<br />

covered<br />

25 38<br />

11<br />

Improved reeling and spinning devices in<br />

Vanya Silk<br />

No. <strong>of</strong> Units 10,545 8,889<br />

Sl.<br />

No.<br />

Table 7.6<br />

Components 2008-09 2009-10 2010-11<br />

(till March-<br />

2011)<br />

2011-12<br />

(till Dec-<br />

2011)<br />

1 Development <strong>of</strong> Mulberry Plantation (Ac) 14524 19980 30,524 101,127<br />

2 Irrigation for Mulberry (Ha.) 4541 4247 7729 610<br />

3 Mulberry Rearing houses (Nos) 7760 11006 19292 6470<br />

4 Chawkie Rearing Centres (Nos) 107 66 77 -<br />

5 Rearing equipments (Farmers) 7272 11216 24847 -<br />

6 Tasar plantation maintenance (Ha.) 2295 3769 10,220 1789<br />

7 Tasar seed rearers (Nos) 732 2074 4,872 2671<br />

8 Support to Tasargraineurs (Nos) 281 704 1,378 1259<br />

9 Construction <strong>of</strong> Cocoon Storage Houses (Nos) 68 304 584 504<br />

10 Eri host plantation (Acres) 1268 2199 3,665 3735<br />

11 Construction <strong>of</strong> Eri Rearing House (Nos) 2069 4,002 6,502 4630<br />

12 Muga food plantation (Acres) 853 2281 3,062 2804<br />

13 Support for MugaGraineurs (Nos) 60 276 597 72<br />

14 Automatic Silk Reeling Machines (Nos) 3 2 - -<br />

15 Multiend Silk Reeling Machines (Nos) 53 30 91 16<br />

16 Cottage basin reeling units (Nos) 14 15 45 13<br />

17 Hot air drying chambers (Nos) 56 107 140 67<br />

18 Vanya reeling/Spinng. Devices (Nos) 3007 1579 1982 545<br />

19 Promotion <strong>of</strong> improved Handlooms (Nos) 742 1342 1571 2027<br />

91


ministry <strong>of</strong> <strong>textiles</strong><br />

Board. During the year 2011-12 a total <strong>of</strong><br />

5 units located in the state <strong>of</strong> Karnataka<br />

and West Bengal <strong>of</strong> Procurement /<br />

Establishment is under progress viz., at<br />

Shirahatti/H.Cross/Vijayapura/Malavalli-<br />

Karnataka, Khaliachack- WB.<br />

b) SILK MARK ORGANIZATION OF<br />

INDIA (SMOI)<br />

The <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong>-Govt. <strong>of</strong> India came<br />

up with an initiative for the protection <strong>of</strong><br />

the interests <strong>of</strong> the consumers and other<br />

stakeholders <strong>of</strong> the silk value-chain by<br />

bringing out “Silk Mark” Scheme in June<br />

2004. Silk Mark, the Quality Assurance<br />

Label signifying that a product to which<br />

it is affixed is made <strong>of</strong> pure silk was<br />

launched by the Silk Mark Organisation<br />

<strong>of</strong> India (SMOI), a registered Society<br />

promoted by the Central Silk Board. Silk<br />

Mark labels can be affixed to primary,<br />

intermediate and finished products <strong>of</strong> silk<br />

including yarn, fabric, sarees, made-ups,<br />

garments, carpets, etc.<br />

The Silk Mark Scheme is aimed at<br />

protecting the interests <strong>of</strong> the users and<br />

connoisseurs <strong>of</strong> silk, and for the generic<br />

promotion <strong>of</strong> silk and also for building<br />

brand-equity <strong>of</strong> Indian Silk.<br />

Since the launch <strong>of</strong> Silk Mark in June<br />

2004, over 1800 members have joined<br />

the Organisation, <strong>of</strong> whom, more than<br />

1700 have become Authorized Users.<br />

More than 1.35 crore <strong>of</strong> Silk Mark labelled<br />

products have reached the market for the<br />

benefit <strong>of</strong> consumers.<br />

During 2011-12 (up to November 2011)<br />

168 members joined SMOI, <strong>of</strong> which, 157<br />

members have enrolled as Authorised<br />

Users and 16.12 lakhs <strong>of</strong> Silk Mark<br />

Labelled products have reached the<br />

market. During 2011-12 (upto November<br />

2011) SMOI participated in as many<br />

as 296 exhibitions/ Workshops/ Road<br />

shows etc.<br />

Anticipated achievement up to March<br />

2012 is as follows:<br />

1. Members – 300 Nos.<br />

2. Authorised users – 300 Nos.<br />

3. Sale <strong>of</strong> Silk Mark label – 30.00 lakhs<br />

4. Awareness programmes / Workshops<br />

/ Exhibitions / Road Shows etc. - 340<br />

Nos.<br />

Nineteen Silk Expos have been planned<br />

during the year 2011-12 and 10 such<br />

Expos have already been conducted at<br />

various cities till November, 2011.<br />

SCHEMES & PROJECTS BEING<br />

IMPLEMENTED / PROPOSED TO<br />

BE IMPLEMENTED BY CSB AND<br />

STATES WITH EXTERNAL/ INTERNAL<br />

ASSISTANCE FOR DEVELOPMENT OF<br />

SERICULTURE:<br />

EXTERNAL ASSISTANCE<br />

1. PROJECT FOR ORGANIZING III<br />

COUNTRY TRAINING PROGRAMME<br />

ON BIVOLTINE SERICULTURE<br />

TECHNOLOGY ASSISTED BY JICA<br />

The Japan International Cooperation<br />

Agency (JICA) and the Central Silk Board<br />

(CSB) have jointly worked in technical<br />

cooperation in the area <strong>of</strong> development<br />

and popularization <strong>of</strong> Bivoltine Sericulture<br />

Technology suited to Indian agro-climatic<br />

conditions for past fifteen years.<br />

Encouraged by the success <strong>of</strong> the<br />

cooperation programme, Central Silk<br />

Board in association with JICA has<br />

implemented a third country training<br />

programme on “Bivoltine Sericulture<br />

Technology” during 2008-09 for some <strong>of</strong><br />

92


annual report 2011-12<br />

the Afro-Asian countries to disseminate<br />

the knowledge and skills on bivoltine<br />

sericulture technologies to these silk<br />

producing countries and organized<br />

training for 11 <strong>of</strong>ficers in ‘Administrative<br />

Course’ and 15 <strong>of</strong>ficers in ‘Technical<br />

Course’ nominated from 8 different<br />

countries viz. Ghana, Cambodia,<br />

Uganda, Nigeria, Kenya, Philipines, Laos<br />

and Nepal.<br />

JICA has extended the training<br />

programme for 3 more years from 2009-<br />

10. The number <strong>of</strong> <strong>of</strong>ficers trained under<br />

Bivoltine Sericulture Technology is given<br />

at table 7.7.<br />

2. STATUS OF MANIPUR SERICULTURE<br />

PROJECT<br />

Govt. <strong>of</strong> Manipur in coordination with CSB<br />

drafted proposal for the Phase-II <strong>of</strong> the<br />

Manipur Sericulture Project at a total cost<br />

<strong>of</strong> Rs 356.5 crores to be implemented in<br />

seven years. The project is estimated<br />

to add up 136 MT <strong>of</strong> Mulberry Silk and<br />

96 MT <strong>of</strong> eri silk production / year at the<br />

end <strong>of</strong> gestation period. Project focuses<br />

on expansion <strong>of</strong> Mulberry in 1020 hectare<br />

and Eri silk culture in 1500 hectare by<br />

involving 7800 families in pre -and post<br />

cocoon operations.<br />

Department <strong>of</strong> Sericulture has approached<br />

to Govt. <strong>of</strong> Manipur to fund the Phase-II <strong>of</strong><br />

the project under Special Plan Assistance<br />

(SPA). Planning Commission as proposed<br />

in the annual working group meeting (2011-<br />

Sl.<br />

No.<br />

Table 7.7<br />

12) has recommended Rs 62.11 cr. under<br />

SPA for implementation <strong>of</strong> Phase-II. Govt.<br />

<strong>of</strong> Manipur decided to make up shortfall<br />

in SPA funding by approaching NABARD<br />

under Rural Infrastructure Development<br />

Fund (RIDF). Accordingly, Department<br />

<strong>of</strong> Sericulture has revised the phasing <strong>of</strong><br />

physical and financial targets and sharing<br />

pattern keeping all the original physical<br />

& financial targets <strong>of</strong> Phase-II intact as<br />

approved by MOT, Planning Commission,<br />

DoNER, MHA, MEA and DEA <strong>of</strong> Govt.<br />

<strong>of</strong> India.<br />

State Planning Department has<br />

sanctioned Rs 10.22 Cr under SPA.<br />

Govt. <strong>of</strong> Manipur has also sanctioned<br />

Rs 10.00 Cr under Rural Infrastructure<br />

Development Fund (RIDF) <strong>of</strong> NABARD<br />

to implement the project during 2011-12.<br />

B. INTERNAL ASSISTANCE<br />

1. Special SGSY PROJECTS FOR<br />

DEVELOPMENT OF TASAR AND<br />

ERI CULTURE IN BIHAR AND<br />

JHARKHAND<br />

Two special SGSY Projects for<br />

development <strong>of</strong> Tasar and Eri culture are<br />

being implemented in the States <strong>of</strong> Bihar<br />

and Jharkhand with financial assistance<br />

from <strong>Ministry</strong> <strong>of</strong> Rural Development, Govt.<br />

<strong>of</strong> India from the year 2003-04.<br />

The projects are being implemented in both<br />

the States by Pr<strong>of</strong>essional Assistance for<br />

Development Action (PRADAN), an NGO.<br />

Name <strong>of</strong> the Sub-course Target Achievement<br />

2010-11 2011-12<br />

1. Administrative Course ( Two Weeks) 15 13 13<br />

2. Technical Course ( Twelve Weeks) 15 15 15<br />

Total 30 28 28<br />

93


ministry <strong>of</strong> <strong>textiles</strong><br />

Financial outlay and sharing pattern <strong>of</strong> the<br />

Project cost are given at table 7.8.<br />

2. SPECIAL SGSY PROJECT FOR<br />

DEVELOPMENT OF MULBERRY<br />

SERICULTURE IN UTTARAKHAND<br />

The <strong>Ministry</strong> <strong>of</strong> Rural Development,<br />

Government <strong>of</strong> India has sanctioned a<br />

project entitled “A Special SGSY Project<br />

for Development <strong>of</strong> Mulberry Sericulture<br />

in Uttarakhand” at a total cost <strong>of</strong> Rs.<br />

917.840 lakh to be implemented by<br />

Directorate <strong>of</strong> Sericulture, Govt. <strong>of</strong><br />

Uttarakhand over a period <strong>of</strong> 5 years<br />

from 2007-08 to 2011-12. The funds<br />

are shared by MORD (Rs.417.009 lakh)<br />

and CSB/State share at Rs. 379.636<br />

lakh, (CSB – Rs 299.383 lakh & State-<br />

80.253 lakhs), Bank credit is Rs. 76.205<br />

lakh and the beneficiary contribution is<br />

Rs. 44.991 lakh.<br />

Faritazadihi and Gajhipanchayats<br />

<strong>of</strong> Chakai Block <strong>of</strong> Jamuiby creating<br />

Tasar Sericulture based forward and<br />

backward linkages for sustainable<br />

livelihood development. Total outlay<br />

<strong>of</strong> the project is Rs. 1274.91 lakhs, <strong>of</strong><br />

which NABARD, Patna is funding Rs.<br />

837.72 lakhs (65.71%), CSB share <strong>of</strong><br />

Rs. 170.91 lakhs (13.41%), Beneficiary<br />

share is Rs.217.29 lakhs (17.04%) and<br />

Loan from NABARD amounts to Rs. 49<br />

lakhs (3.84%), for a period <strong>of</strong> five years<br />

starting 2009-10 with CDP funding<br />

proposed only for the XI Plan period<br />

i.e., 2009-10, 2010-11 and 2011-12 at<br />

Rs. 20.675 lakhs, Rs. 86.517 lakhs and<br />

Rs. 63.717 lakhs, respectively.<br />

ii).<br />

INTEGRATED TRIBAL DEVELOPMENT<br />

PROGRAMME FOR BANKA DISTRICT<br />

OF BIHAR<br />

PROJECTS WITH ASSISTANCE UNDER<br />

NABARD’s TRIBAL DEVELOPMENT<br />

FUND (TDF)<br />

i).<br />

INTEGRATED TRIBAL DEVELOPMENT<br />

PROGRAMME FOR CHAKAI BLOCK OF<br />

JAMUI DISTRICT OF BIHAR<br />

The project is being implemented in<br />

tribal dominated Dulampur, Nauwadih,<br />

Table 7.8<br />

The project is being implemented in tribal<br />

dominated Katoria, Chandan and Bounsi<br />

blocks <strong>of</strong> Banka district through WADI<br />

approach (Agri-Horti-Forestry). Total outlay<br />

<strong>of</strong> the project is Rs. 675.91 lakhs, <strong>of</strong> which<br />

NABARD, Patna is funding Rs. 512.33<br />

lakhs (75.8%), fund dovetailed from<br />

SGSY share <strong>of</strong> Rs. 31.14 lakhs (4.61%),<br />

Beneficiary share is Rs.117.44 lakhs<br />

(Rs. In Lakh)<br />

Particulars Bihar Jharkhand (Phase-I) revised<br />

Total Outlay MORD 622.873 652.150<br />

CSB 208.614 302.681<br />

Beneficiary 289.044 247.274<br />

Credit 320.052 235.865<br />

Total 1440.583 1437.97<br />

The project are;<br />

1.Development <strong>of</strong> Tasar and Ericulture in Bihar<br />

2. Development <strong>of</strong> Tasar and Eri culture in Jharkhand-Phase I:<br />

94


annual report 2011-12<br />

(17.37%) and Loan from NABARD<br />

amounts to Rs. 15 lakhs (2.22%), for a<br />

period <strong>of</strong> seven years starting 2008-09,<br />

respectively.<br />

CLUSTER DEVELOPMENT PROJECTS<br />

In pursuance <strong>of</strong> the suggestion from the<br />

Planning Commission and <strong>Ministry</strong> <strong>of</strong><br />

<strong>Textiles</strong>, Govt. <strong>of</strong> India, CSB is promoting<br />

development <strong>of</strong> sericulture in the cluster<br />

mode approach throughout the country<br />

during XI Plan.<br />

Under the Cluster Promotion Programme,<br />

the CSB in close co-ordination with DOSs<br />

continued to assist 45 model sericulture<br />

clusters in pre-cocoon sector covering 16<br />

States during 2011-12 involving central<br />

share <strong>of</strong> Rs.11.37 crores (up to November,<br />

2011).<br />

Further, CSB in association with States<br />

operates 5 post-cocoon clusters one<br />

each in Tamil Nadu, Andhra Pradesh,<br />

West Bengal, Maharashtra and Assam<br />

for development <strong>of</strong> post-cocoon sector<br />

during 2011-12. The central share <strong>of</strong><br />

Rs.1.29 crores has been sanctioned up to<br />

November, 2011.<br />

The cluster programme will be concluded<br />

by March, 2012 and the model clusters<br />

(pre-cocoon) are proposed to be<br />

maintained under the State control during<br />

XII Plan.<br />

VI. SILK EXPORTS<br />

Silk -Goods export earnings during the<br />

year 2009-10, 2010-11 and 2011-12 are<br />

given at table 7.9.<br />

Export Earnings <strong>of</strong> Silk Items<br />

The Export <strong>of</strong> US$ 597.82 million<br />

(Rs.2723.86 Crore) has been achieved<br />

during April-March period <strong>of</strong> the year<br />

2010-11, compared to US $ 603 in the<br />

F.Y. 2009-10.<br />

Natural Silk Yarn, Fabrics, Made-ups etc.<br />

constitute the bulk <strong>of</strong> silk export from India<br />

with a share <strong>of</strong> around 58 % <strong>of</strong> India’s<br />

total silk goods exports. Ready made<br />

Garments account approximately for<br />

40.20% to the total silk goods exports. Silk<br />

Carpet account approximately for 0.58%<br />

to the total silk goods export and balance<br />

silk Waste which is the raw material for<br />

the spun silk <strong>industry</strong> is also exported in<br />

small quantity.<br />

Table 7.9<br />

(Value: ` in Crore)<br />

S.N. Items <strong>of</strong> Silk-Goods Export Achievement during XI Plan<br />

2009-10 2010-11 2011-12 (P)<br />

(April to Sept)<br />

1 Natural Silk Yarn Fabrics,<br />

Made-ups<br />

1971.98 2123.21 450.69<br />

2 Readymade Garments 854.95 683.31 644.20<br />

3 Silk Carpets 40.59 21.10 5.96<br />

4 Silk Waste 24.92 36.14 12.67<br />

TOTAL 2892.44 2863.76 1113.52<br />

P: Provisional, Source: DGCIS, Kolkata<br />

95


ministry <strong>of</strong> <strong>textiles</strong><br />

Exports during year 2011-12 (till October)<br />

are given at table 7.10.<br />

Hong Kong, USA, UAE, UK and Germany<br />

are the top five countries importing<br />

Indian Silk goods (in value items) during<br />

April-March period <strong>of</strong> the year 2010-<br />

11 and accounted for 22.7% 13.59%,<br />

10.21%, 9.28%, 5.09% respectively <strong>of</strong><br />

the total export earnings. They altogether,<br />

accounted for Rs.1659.04 which has<br />

60.90% <strong>of</strong> the total export earnings <strong>of</strong><br />

Rs.2723.86 crore during the period.<br />

Imports<br />

The import <strong>of</strong> Raw silk during April-March<br />

period <strong>of</strong> the year 2010-11 was 5870 MT<br />

(metric tons) as compared to imports <strong>of</strong><br />

7388 MT during the corresponding period<br />

<strong>of</strong> 2009-10 indicating a decrease <strong>of</strong><br />

20.0%(i.e.1468MT)<br />

VII. RASHTRIYA KRISHI VIKAS YOJANA<br />

(RKVY):<br />

Sericulture is now included under the<br />

Rashtriya Krishi Vikas Yojana (RKVY) <strong>of</strong><br />

the <strong>Ministry</strong> <strong>of</strong> Agriculture, Govt. <strong>of</strong> India.<br />

The scheme covers on-farm sericulture<br />

activities, strengthening the monitoring<br />

and Extension mechanism, post cocoon<br />

activities like reeling, yarn production as<br />

an Enterprise activity. Sericulture sector<br />

projects costing Rs. 42.14 Crore have<br />

been posed for funding during 2011-12.<br />

VIII. SCHEDULED CASTES SUB-PLAN<br />

(SCSP) AND SCHEDULED TRIBAL<br />

SUB-PLAN (TSP)<br />

Planning Commission, Govt. <strong>of</strong> India has<br />

formulated revised guidelines for Schedule<br />

Caste Sub Plan (SCSP) and Tribal Sub Plan<br />

(TSP) to ensure channelising proportionate<br />

flow <strong>of</strong> Plan Outlay from general sectors<br />

(Other than the allocation for NE States)<br />

for implementation <strong>of</strong> schemes which<br />

directly benefit the individuals or families<br />

belonging to Scheduled Castes and<br />

Scheduled Tribes commencing from 2011-<br />

12. The objectives <strong>of</strong> the programme<br />

include substantial reduction <strong>of</strong> poverty<br />

& unemployment, creating productive<br />

assets, human resource development and<br />

arrest exploitation through physical and<br />

financial security among the Scheduled<br />

Castes and Scheduled Tribes. Keeping<br />

in view these objectives and the revised<br />

guidelines communicated by the <strong>Ministry</strong><br />

<strong>of</strong> <strong>Textiles</strong>, a non-divertible provision <strong>of</strong><br />

Rs.25.80 crores (excluding NE States)<br />

Table 7.10<br />

Silk Exports<br />

(Rs. in Crore)<br />

Sr.<br />

No.<br />

Item <strong>of</strong> Export 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12<br />

Upto<br />

October<br />

2011<br />

1. Natural Silk yarn, 2365.34 1525.68 1711.02 1413.98 1578.40 536.10<br />

Fabrics, madeups<br />

2. Silk Readymade 817.87 1043.47 1458.48 1393.51 1095.10 741.12<br />

Garments<br />

3. Silk Carpets 132.36 56.26 54.68 39.38 15.84 8.04<br />

4. Silk Waste 22.78 11.94 5.73 24.92 34.52 14.72<br />

Total 3338.35 2637.35 3229.91 2871.79 2723.86 1299.98<br />

96


annual report 2011-12<br />

for sericulture sector has been earmarked<br />

from out <strong>of</strong> Rs.172.55 crores approved by<br />

<strong>Ministry</strong> for CDP, to implement Scheduled<br />

Castes Sub-Plan (Rs.21.00 crores) and<br />

Tribal Sub-Plan (Rs.4.80 crores) during<br />

2011-12. Accordingly, the State-wise<br />

break-up <strong>of</strong> funds earmarked exclusively<br />

for SCSP and TSP from CDP was worked<br />

out and communicated to the Departments<br />

<strong>of</strong> Sericulture in State for implementation<br />

<strong>of</strong> relevant CDP components on lines with<br />

the revised guidelines for the development<br />

<strong>of</strong> SCs and STs. Funds are being utilised<br />

as per approved guidelines.<br />

IX. OTHER ISSUES<br />

1. SCHEMES / POLICIES RUN BY CSB<br />

FOR THE BENEFIT OF PERSONS<br />

WITH DISABILITIES<br />

While the central sector programmes like<br />

R&D, Seed support, Quality Certification<br />

Systems etc. <strong>of</strong> CSB are mainly to<br />

supplement the efforts <strong>of</strong> State Govts.,<br />

the Centrally Sponsored programme<br />

viz. Catalytic Development Programme<br />

( CDP) is aimed to ensure coordinated<br />

effort to support sericulture development<br />

at all stages from food plant cultivation to<br />

production and processing <strong>of</strong> silk. Though<br />

the CDP is being implemented jointly by<br />

CSB and concerned State Govt., the task<br />

<strong>of</strong> identification <strong>of</strong> beneficiaries under the<br />

programme lies with the State Govt. While<br />

there is no separate or specific scheme/<br />

programme under CDP for the benefit <strong>of</strong><br />

persons with Disabilities, the benefit <strong>of</strong><br />

the schemes / components under CDP<br />

can also be availed by the persons with<br />

Disabilities.<br />

With regard to the sanctioned strength and<br />

the number <strong>of</strong> persons with disabilities in<br />

various posts in different Groups under<br />

CSB, the details are given in the table 7.11.<br />

Table 7.11<br />

Sl. No. Group Persons with<br />

Disability<br />

Sanctioned<br />

Strength<br />

1 Group A 10 949<br />

2 Group B 24 1618<br />

3 Group C 30 1706<br />

Total 64 4273<br />

*****<br />

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CHAPTER VIII<br />

WOOL & WOLLEN TEXTILES<br />

INDUSTRY<br />

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CHAPTER VIII<br />

WOOL & WOLLEN TEXTILES INDUSTRY<br />

The Central Wool Development<br />

Board (CWDB) Jodhpur, Rajasthan<br />

was set up under the Rajasthan<br />

Societies Registration Act, 1958 in July<br />

1987, to administer the implementation<br />

<strong>of</strong> programmes and schemes in Central<br />

Sector for the promotion and development<br />

<strong>of</strong> <strong>wool</strong> and <strong>wool</strong>len <strong>industry</strong> in the<br />

country.<br />

The Government <strong>of</strong> India vide Gazette<br />

Notification No. 2/7/2008-W&WT dated<br />

November 22, 2010, has reconstituted<br />

the Board for a period <strong>of</strong> two years. The<br />

Joint Secretary (Wool), <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong><br />

and Vice-Chairman <strong>of</strong> the Board shall<br />

discharge the duties <strong>of</strong> the Chairman till<br />

the post <strong>of</strong> Chairman is filled up.<br />

The <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong> has allocated<br />

Rs. 13.04 Crore to the Central Wool<br />

Development Board (CWDB) for the<br />

Annual Plan 2011-12 to implement its<br />

various Plan Schemes and Programmes<br />

for the growth and development <strong>of</strong> <strong>wool</strong><br />

sector. Against this target, the <strong>Ministry</strong> <strong>of</strong><br />

<strong>Textiles</strong> has already released Rs. 6.25<br />

Crore and the Board utilized Rs. 5.20<br />

Crore till December, 2011, accordingly.<br />

On the Non-Plan side, the Board utilized<br />

Rs. 1.13 Crore to meet establishment<br />

expenses upto December,2011.<br />

The Board has undertaken following<br />

activities during 2011-12 (upto<br />

December,2011):<br />

1. Integrated Wool Improvement<br />

and Development Programme<br />

(IWIDP)<br />

The Integrated Wool Improvement &<br />

Development Programme (IWIDP),<br />

the flagship scheme <strong>of</strong> Wool Sector,<br />

is being implemented during the XIth<br />

Five Year Plan period at an estimated<br />

cost <strong>of</strong> Rs. 48.00 Crore. The Scheme<br />

provides support to the Industry & Wool<br />

growers to qualitatively upgrade product<br />

and technology to enable them to get<br />

better returns for their products and to<br />

get a larger share <strong>of</strong> the domestic and<br />

global market. The Programme has two<br />

main components: (A) Improvement <strong>of</strong><br />

Wool Fibre and (B) Human Resource<br />

Development and Promotional Activities.<br />

This Programme aims to cover 26 lakh<br />

sheep for health coverage, to set up 10<br />

Ram Raising Units, to provide financial<br />

assistance for 200 Sheep Pens, to provide<br />

feed supplement to total 80,000 sheep, to<br />

establish 7 Multiple Facility Centres, to<br />

provide revolving fund for Marketing <strong>of</strong> 10<br />

lakh Kg. <strong>wool</strong>, to supply 26,000 stud rams<br />

for breed improvement, to benefit 400<br />

Angora rabbit families and 2400 Pashmina<br />

goat rearing families and to train 1000<br />

persons along with other promotional<br />

and marketing activities under Human<br />

Resource Development Programme.<br />

Under IWIDP, the Board is implementing<br />

different schemes for improving quantity<br />

and quality <strong>of</strong> <strong>wool</strong> produced from<br />

sheep, Angora rabbit, Pashmina goat<br />

and is providing training to <strong>wool</strong> growers,<br />

weavers, resource persons along with<br />

associated promotional and marketing<br />

activities. Following schemes are being<br />

implemented under this programme:<br />

(A) Improvement <strong>of</strong> Wool Fibre<br />

(i) Sheep & Wool Improvement<br />

Scheme: (SWIS)<br />

The Board had taken up ‘Sheep and Wool<br />

Improvement Scheme’ (SWIS) to improve<br />

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the quality and quantity <strong>of</strong> indigenous <strong>wool</strong><br />

in the country. The Board is implementing<br />

various projects under this scheme in<br />

all major <strong>wool</strong> producing States having<br />

components for (i) ‘Health Care’ for<br />

treatment, vaccination and medicines to<br />

sheep (ii) ‘Breed Improvement’ for genetic<br />

improvement <strong>of</strong> sheep and to distribute<br />

stud Rams (iii) support for ‘Multipurpose<br />

Extension Centers’ to provide different<br />

facilities at one place, (iv) ‘Marketing &<br />

Grading Assistance’ to <strong>wool</strong> growers to<br />

get better returns from <strong>wool</strong> (v) conducting<br />

‘Training Programmes’ for <strong>wool</strong> growers<br />

in latest techniques <strong>of</strong> sheep rearing<br />

activities, (vi) ‘Ram Raising Unit’ to develop<br />

good quality breedable Rams and to fulfill<br />

requirement <strong>of</strong> stud Rams, (vii) ‘Assistance<br />

for Sheep Pen’, (<strong>viii</strong>) provide ‘Feed<br />

Supplement’ to sheep (weak, pregnant/<br />

breedable ewes) and (ix) ‘Creation <strong>of</strong><br />

Revolving Fund’ for marketing <strong>of</strong> raw <strong>wool</strong><br />

and to revitalize the states <strong>wool</strong> marketing<br />

federations/corporations and optimum<br />

utilization <strong>of</strong> infrastructure available with<br />

them for this purpose.<br />

During current financial year 2011-12, the<br />

Board had fixed target to benefit 16 lakh<br />

sheep under different ongoing projects in all<br />

major <strong>wool</strong> producing States with financial<br />

provision <strong>of</strong> Rs. 8.26 crore. Against this<br />

target, the Board has benefited 12 lakh<br />

sheep under different ongoing projects and<br />

sanctioned Feed Supplement for 50,000<br />

sheep/Pashmina goat from Ladakh & Kargil<br />

region and utilized Rs. 2.50 crore upto<br />

December, 2011. The Board is presently<br />

implementing various projects under this<br />

scheme in all major <strong>wool</strong> producing States<br />

like: Rajasthan, Gujarat, Madhya Pradesh,<br />

Uttrakhand, Maharashtra, Haryana,<br />

Jammu & Kashmir, Himachal Pradesh,<br />

Andhra Pradesh and Karnataka.<br />

(ii) Angora Wool Development Scheme<br />

The Board is implementing Angora Wool<br />

Development scheme in hilly areas<br />

<strong>of</strong> country to support Angora rearing<br />

activity among farmers, strengthening<br />

Germplasm Centre (GPC), facilitating<br />

distribution <strong>of</strong> Angora rabbit among<br />

rearers as foundation stock along with<br />

necessary training, feed, medical kit and<br />

nutrition support free <strong>of</strong> cost. The scheme<br />

has following components:<br />

i) Establishment <strong>of</strong> Mini Angora rabbit<br />

farm<br />

ii)<br />

iii)<br />

Mini Feed Manufacturing Units<br />

Common Facility Centre (CFC) for<br />

Angora Wool Processing and Training<br />

iv) Research & Development,<br />

v) Strengthening <strong>of</strong> Angora rabbit<br />

Germplasm Centre.<br />

For the Annual Plan 2011-12, the Board<br />

has fixed target to benefit 80 new and 100<br />

ongoing Angora rabbit rearing families<br />

under different components <strong>of</strong> scheme<br />

with total financial allocation <strong>of</strong> Rs. 0.62<br />

crore. Against this target, the Board has<br />

sanctioned 4 new projects to cover 80 new<br />

Angora families from Uttarakhand, Rajasthan<br />

and Himachal Pradesh and utilized Rs. 0.44<br />

crore upto December, 2011.<br />

(iii) Pashmina Development Scheme:<br />

During the Xth Five Year Plan period,<br />

the Scheme for the development <strong>of</strong><br />

Pashmina Wool was launched in Ladakh<br />

region <strong>of</strong> J&K State as part <strong>of</strong> Prime<br />

Minister’s Special Package. The Scheme<br />

is continuing in the XIth Five Year Plan<br />

period with following components:<br />

- Buck Exchange Programme.<br />

- Distribution <strong>of</strong> high quality<br />

Pashmina bucks in nontraditional<br />

areas to enhance<br />

Pashmina production.<br />

- Training <strong>of</strong> formation <strong>of</strong> Breeders<br />

Association (Guilds) or village<br />

Pashmina Cooperative Societies.<br />

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- Establishment <strong>of</strong> Fodder Bank.<br />

- Refresher Training to Nomadic<br />

Breeders as Paramedics.<br />

- Health Coverage.<br />

- Refresher Courses to In-service<br />

Candidates for 3 days/breeders<br />

camps.<br />

- Fodder Development.<br />

- Provision <strong>of</strong> improved Pashmina<br />

Combs for Efficient Harvesting<br />

<strong>of</strong> Pashmina.<br />

For the Annual Plan 2011-12, the Board<br />

has fixed target to benefit 800 ongoing<br />

Pashmina families with financial outlay<br />

<strong>of</strong> Rs. 0.28 Crore. Accordingly, the<br />

Board benefited 800 ongoing Pashmina<br />

families and released Rs. 0.28 Crore to<br />

Ladakh Autonomous Hill Development<br />

Council, Leh.<br />

B. Human Resource Development<br />

& Promotional activities<br />

The Board had identified areas for<br />

undertaking various training programmes<br />

in collaboration with various reputed<br />

Organizations/ Institutions/ Departments<br />

on: Farm management for sheep; Angora<br />

& Pashmina rearing, sheep shearing by<br />

machines, testing & report writing and<br />

quality control/assurance, <strong>wool</strong> grading<br />

& marketing, processing <strong>of</strong> <strong>wool</strong> and<br />

<strong>wool</strong>ens products, latest weaving and<br />

designing techniques to weavers. The<br />

following activities are part <strong>of</strong> HRD &<br />

Promotional Activities:<br />

- Marketing and Promotional<br />

activities (organizing fairs and<br />

Woollen Expos, seminar and<br />

workshops, etc.)<br />

- Market Intelligence and Publicity<br />

- Publication <strong>of</strong> quarterly news<br />

magazine ‘Wool Ways’<br />

- Research, Study and<br />

Consultancy<br />

- Training under Weaving and<br />

Designing Training Centre, Kullu<br />

- Monitoring and Evaluation <strong>of</strong><br />

Scheme<br />

- Human Resource Development<br />

and Training to farmers/<br />

breeders/ weavers.<br />

- Strengthen and upgrade <strong>wool</strong><br />

testing, <strong>wool</strong> grading and<br />

marketing facilities<br />

For the Annual Plan 2011-12, the Board has<br />

fixed target to impart training to 200 resource<br />

persons, organize 15 Woollen Expos along<br />

with other promotional activities under this<br />

scheme with total financial allocation <strong>of</strong><br />

Rs. 2.00 Crore. Upto December, 2011, the<br />

Board has utilized Rs. 1.44 Crore under<br />

this programme and imparted training<br />

to 174 resource persons, organized 13<br />

Woollen Expos and published quarterly<br />

news magazine and raw <strong>wool</strong> price bulletin,<br />

regularly. Running a Weaving & Designing<br />

Training Centre at Kullu for providing<br />

training in handloom weaving and trained<br />

45 persons by conducting 4 months course<br />

on regular basis <strong>of</strong> 15 trainees per batch<br />

and also running another Wool Testing<br />

Centre at Bikaner to provide testing facilities<br />

for raw <strong>wool</strong>, <strong>wool</strong>len yarn and end product<br />

at the subsidized testing charges as <strong>wool</strong><br />

fiber has lot <strong>of</strong> variation by nature causing<br />

variation in the end product.<br />

2. Quality Processing <strong>of</strong> Wool<br />

and Woollen Scheme<br />

The unorganized Woollen Sector suffers<br />

from inadequate processing facilities.<br />

The pre loom & post loom facilities<br />

are outdated. The sector uses crude<br />

form <strong>of</strong> carding, which results in low<br />

productivity, besides affecting the health<br />

<strong>of</strong> workers. The spinning technology is<br />

primitive, which is urgently required to be<br />

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upgraded through improved equipments/<br />

machineries. The Scheme provides a<br />

comprehensive service package from<br />

deburring to carding & spinning stage.<br />

The setting up <strong>of</strong> modern plants will<br />

increase <strong>wool</strong>-processing capacity, will<br />

provide value addition to Indian <strong>wool</strong>,<br />

will create more employment and will<br />

augment income to personnel engaged in<br />

these decentralized activities.<br />

The Board is implementing a scheme<br />

namely “Quality Processing <strong>of</strong> Wool” (preloom<br />

and post-loom processing activities)<br />

for improving quality <strong>of</strong> raw <strong>wool</strong>, finishing <strong>of</strong><br />

<strong>wool</strong>en products and value addition to <strong>wool</strong><br />

and <strong>wool</strong>ens products. This scheme attracts<br />

the spinners to modernize their obsolete<br />

and small yarn-manufacturing units.<br />

The project beneficiaries are State Wool<br />

Board/ Corporation/ Non-Governmental<br />

Organization/ Registered Societies/Private<br />

Entrepreneurs etc. engaged in processing<br />

<strong>of</strong> <strong>wool</strong> and <strong>wool</strong>ens. Under this scheme,<br />

the agency has to bear the cost <strong>of</strong> land &<br />

building by their own resources and should<br />

have clear ownership rights. The CWDB<br />

provides grant under Non-Recurring<br />

Expenses for purchase <strong>of</strong> machineries &<br />

plants only for setting up the Common Facility<br />

Centre (CFC). Recurring Expenditure shall<br />

be borne by the agency/association out <strong>of</strong><br />

its own resources.<br />

For the Annual Plan 2011-12, the Board<br />

has fixed target to establish four new<br />

Common Facility Centres under pre-loom<br />

processing facilities like <strong>wool</strong> scouring,<br />

carbonizing, dyeing and carding <strong>of</strong> <strong>wool</strong><br />

etc. with total financial outlay <strong>of</strong> Rs. 2.00<br />

Crore. Upto December, 2011, the Board<br />

has utilized Rs. 0.50 Crore under this<br />

scheme and established two CFCs in<br />

Himachal Pradesh.<br />

3. Social Security Scheme<br />

for Sheep Breeders<br />

The Board is implementing this scheme to<br />

benefit the sheep breeders by providing life<br />

insurance to them and their sheep flock by<br />

two plans (i) Sheep Breeders Insurance<br />

Scheme and (ii) Sheep Insurance Scheme.<br />

The basic objective <strong>of</strong> these insurance<br />

plans is to provide enhanced insurance<br />

coverage to sheep breeders in the case<br />

<strong>of</strong> natural death/accidental death, total/<br />

partial disability and for their sheep<br />

flock in case <strong>of</strong> accident including<br />

fire, lightning, storm, tempest, flood,<br />

inundation, earthquake, famine and<br />

diseases contracted or occurred during<br />

the period <strong>of</strong> the policy.<br />

(i)<br />

Total premium payable under ‘Sheep<br />

Breeders Insurance Scheme’ is<br />

Rs. 330/- and contribution <strong>of</strong> sheep<br />

breeder, Central Wool Development<br />

Board & Social Security Fund ( <strong>of</strong><br />

Govt. <strong>of</strong> India ) is Rs. 80/-, 150/- and<br />

Rs. 100/- per year, respectively. In the<br />

event <strong>of</strong> natural death <strong>of</strong> the sheep<br />

breeder, sum assured is Rs. 60,000,<br />

in case <strong>of</strong> partial disability sum<br />

assured is Rs. 75000/- and in case <strong>of</strong><br />

accidental death/total disability sum<br />

assured is Rs. 1,50,000. Additional<br />

benefit <strong>of</strong> scholarship for two child @<br />

Rs. 300 per quarter per child is also<br />

to be paid to the student studying<br />

from 9th standard to 12th standard.<br />

(ii) Total premium payable under ‘Sheep<br />

Insurance Scheme’ is Rs. 44/- per<br />

sheep. Out <strong>of</strong> it, Rs. 19/- per sheep<br />

is contributed by the sheep breeders<br />

and CWDB’s contribution is Rs. 25/-<br />

per sheep. In the event <strong>of</strong> death <strong>of</strong><br />

sheep, sum assured is Rs. 1,200/-<br />

per sheep. The benefit <strong>of</strong> subsidy is<br />

provided to beneficiary for maximum<br />

period <strong>of</strong> three year.<br />

During Annual Plan 2011-12, the Board<br />

has made target to cover 15,000 sheep<br />

breeders and 2,00,000 sheep under the<br />

schemes <strong>of</strong> Sheep Breeders and Sheep<br />

Insurance Scheme, respectively. Upto<br />

November, 2011, the Board has insured<br />

10,327 sheep breeders under Sheep<br />

Breeders Insurance Scheme.<br />

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CHAPTER IX<br />

DECENTRALISED<br />

POWERLOOM SECTOR<br />

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CHAPTER IX<br />

DECENTRALISED POWERLOOM SECTOR<br />

The decentralised powerloom<br />

sector is one <strong>of</strong> the most important<br />

segments <strong>of</strong> the Textile Industry<br />

in terms <strong>of</strong> fabric production and<br />

employment generation. It provides<br />

employment to 57.44 Lakh persons<br />

and contributes 62 percent to total cloth<br />

production in the Country. 60% <strong>of</strong> the<br />

fabrics produced in the powerloom<br />

sector is <strong>of</strong> man-made. More than 60%<br />

<strong>of</strong> fabric meant for export is also sourced<br />

from powerloom sector. The readymade<br />

garments and home textile sectors are<br />

heavily dependent on the powerloom<br />

sector to meet their fabric requirement.<br />

There are approximately 5.19 Lakh<br />

Powerloom Units with 22.98 Lakh<br />

Powerlooms as on 31.08.2011. The<br />

technology level <strong>of</strong> this sector varies from<br />

obsolete plain loom to high tech shuttleless<br />

looms. There are approximately<br />

1,05,000 shuttleless looms in this sector.<br />

It is estimated that more than 75% <strong>of</strong> the<br />

shuttle looms are obsolete and outdated<br />

with a vintage <strong>of</strong> more than 15 years<br />

and have virtually no process or quality<br />

control devices / attachments. However,<br />

there has been significant upgradation<br />

in the technology level <strong>of</strong> the powerloom<br />

sector during the last 5-6 years.<br />

Growth in the Powerloom Sector<br />

The estimated number <strong>of</strong> powerlooms in<br />

the decentralised sector in the country till<br />

31.08.2011 was 22,98,050. The year-wise<br />

growth in the number <strong>of</strong> looms installed is<br />

given in table 9.1.<br />

Cloth production( in million sq.mtr):<br />

The details <strong>of</strong> total cloth production and<br />

production by powerloom sector during<br />

the last five years are given in table 9.2.<br />

Modernisation & Strengthening <strong>of</strong><br />

Powerloom Service Centre<br />

Out <strong>of</strong> 44 Powerloom Service Centres<br />

under Textile Commissioner and other<br />

agencies, 43 Powerloom Service Centre<br />

(PSCs) have been modernised with<br />

modern machines and equipment such<br />

as shuttleless looms <strong>of</strong> type Projectile,<br />

Rapier, Air jet, Automatic Cop Changing<br />

Looms, Drop Box Looms, Pirn Winders,<br />

Cone Winders, Sectional Warping<br />

Machine, DG Sets etc. Out <strong>of</strong> 44 PSCs,<br />

14 PSCs are under the Office <strong>of</strong> the<br />

Textile Commissioner, 25 PSCs are run<br />

by different TRAs, 4 PSCs under KSPDC,<br />

Bangalore & one PSC is run by State<br />

Govt. <strong>of</strong> Madhya Pradesh.<br />

Year<br />

Table 9.1<br />

No. <strong>of</strong><br />

powerlooms<br />

Growth<br />

percentage<br />

2006-07 19,90,308 -<br />

2007-08 21,06,370 5.8%<br />

2008-09 22,05,352 4.7%<br />

2009-10 22,46,474 1.9%<br />

2010-11 22,82,744 1.61%<br />

2011-12 (up to Aug, 2011) 22,98,050 0.67%<br />

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Year<br />

Total<br />

production<br />

Production<br />

on<br />

Powerloom<br />

Table 9.2<br />

%age <strong>of</strong><br />

powerloom over<br />

total cloth<br />

production<br />

%age increase over<br />

previous year<br />

Total<br />

Production<br />

Powerloom<br />

production<br />

2006-07 53,389 32,879 61.78% - -<br />

2007-08 56,025 34,725 61.98% 4.94% 5.61%<br />

2008-09 54,966 33,648 61.22% -1.89% -3.10%<br />

2009-10 (P) 60,333 36,997 61.29% 9.76% 9.95%<br />

2010-11 (P) 61,808 37,571 60.73% 2.55% 1.55%<br />

2011-12 (P)<br />

April - Aug<br />

24,355 15,055 61.81% -- --<br />

Performance <strong>of</strong> Powerloom Service<br />

Centres<br />

During the year 2010-11, the 44 PSCs<br />

trained 11530 persons, developed 5569<br />

designs & tested 79740 samples and<br />

generated total revenue <strong>of</strong> Rs.81.40 lakh.<br />

During this period, PSCs have organised<br />

462 exhibitions, seminars & workshops.<br />

The achievement during 2011-12(April to<br />

October) is as under :-<br />

1. No. <strong>of</strong> trainees - 5233<br />

2. No. <strong>of</strong> sample tested - 37030<br />

3. No. <strong>of</strong> Design developed - 3233<br />

4. No. <strong>of</strong> consultancy / trouble - 2501<br />

shooting<br />

5. Total Revenue - 67.17 lakh<br />

6. No. <strong>of</strong> seminar, exhibitions<br />

and workshops<br />

- 185<br />

Computer Aided Design centers<br />

The following 17 Computer Aided Design<br />

Centres (CADC) have been established:<br />

Coimbatore, Karur, Komarapalayam<br />

and Somanur (Tamil Nadu), Surat and<br />

Ahmedabad (Gujrat), Solapur, Ichalkaranji,<br />

Bhiwandi and Mumbai (Maharashtra),<br />

Bilwara (Rajasthan) and Ghaziabad (Uttar<br />

Pradesh), Bangalore and Doddaballapur<br />

(Karnataka), Burhanpur and Indore (Madhya<br />

Pradesh) and Panipat (Haryana). These<br />

CADCs help the decentralized and small<br />

Powerloom units to access new designs<br />

and improve the quality <strong>of</strong> the fabric.<br />

Group Insurance Scheme to the<br />

powerloom workers<br />

Government <strong>of</strong> India have launched a<br />

revised Scheme “welfare <strong>of</strong> powerloom<br />

workers through Group Insurance<br />

Scheme’ in association with LIC from 1 st<br />

July 2003.<br />

In accordance with the XIth Five Year<br />

Plan, the Scheme has been modified by<br />

merging the existing JBY Scheme and<br />

Add-on GIS w.e.f. 1 st January 2008. As per<br />

the modified Scheme, the total premium<br />

is Rs.330/- out <strong>of</strong> which, Rs.150/- is<br />

to be borne by the Office <strong>of</strong> the Textile<br />

Commissioner, Government <strong>of</strong> India and<br />

Rs.100/- is being paid by the LIC from<br />

the social security fund <strong>of</strong> Government <strong>of</strong><br />

India. Only a premium <strong>of</strong> Rs.80/- is to be<br />

paid by the powerloom weaver for getting<br />

the benefits under the said scheme. The<br />

coverage benefit under the scheme is<br />

given in table 9.3.<br />

In addition to the above, a worker under<br />

JBY will also be entitled the educational<br />

grant <strong>of</strong> Rs.600/- per child/ per half year for<br />

two children studying in IX to XII standard<br />

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Component<br />

Natural death<br />

Table 9.3<br />

Accidental<br />

Death<br />

Total Permanent<br />

Disability<br />

Partial Permanent<br />

Disability<br />

GIS Rs. 60,000/- Rs. 1,50,000/- Rs. 1,50,000/- Rs. 75,000/-<br />

for a maximum period <strong>of</strong> 4 years under<br />

Shiksha Sahayog Yojana (SSY).<br />

Under the said schemes, 9,68,979<br />

powerloom workers have been insured<br />

upto October, 2011 involving GOI share<br />

<strong>of</strong> premium to the extent <strong>of</strong> Rs.1062.45<br />

lakh since July, 2003 to October, 2011.<br />

During the year 2010–11, 1,53,896 workers<br />

have been insured and Govt. share <strong>of</strong><br />

premium to the extent <strong>of</strong> Rs.2,30,84,400/-<br />

have been paid. During the year 2011–12<br />

(April to October) 76,343 workers have<br />

been insured.<br />

Group Workshed Scheme<br />

The Govt. <strong>of</strong> India has introduced a Group<br />

Workshed Scheme for decentralized<br />

powerloom sector on 29.7.2003, during the<br />

Xth Five-Year Plan. The scheme aims at<br />

setting up <strong>of</strong> Powerloom Parks with modern<br />

weaving machinery to enhance their<br />

competitiveness in the Global Market and<br />

the same has been modified. As per the<br />

modified Scheme, subsidy for construction<br />

<strong>of</strong> workshed would be limited to 40% <strong>of</strong><br />

the unit cost <strong>of</strong> construction subject to a<br />

maximum <strong>of</strong> Rs. 160/- per sq. ft., whichever<br />

is less. Ordinarily, minimum 4 weavers<br />

should form a group with 48 modern looms<br />

<strong>of</strong> single width or 24 wider width looms and<br />

per person minimum 4 looms will be allowed<br />

to be installed. The maximum subsidy will<br />

be Rs.12 lakh per person. The scheme<br />

does not envisage more than 500 looms<br />

under one project proposal.<br />

Total 42 projects have been approved<br />

during 11 th Plan period upto October<br />

2011, for providing Government subsidy<br />

<strong>of</strong> Rs.16.51 Crore on eligible construction<br />

area <strong>of</strong> 13.67 lakh sq. ft. Total subsidy <strong>of</strong><br />

Rs.7.60 Crore has been released. Out<br />

<strong>of</strong> the said 42 projects, 18 projects have<br />

been completed.<br />

Integrated scheme for Powerloom Sector<br />

Development<br />

In order to achieve the overall development<br />

<strong>of</strong> the powerloom sector, Govt. has<br />

announced the Integrated Scheme for<br />

Powerloom Sector Development during<br />

2007 – 08. The Scheme has got the<br />

following components :-<br />

• Marketing Development programme<br />

for Powerloom Sector<br />

• Exposure visit <strong>of</strong> Powerloom Weavers<br />

to other Clusters<br />

• Survey <strong>of</strong> the Powerloom Sector<br />

• Powerloom Cluster Development<br />

• Development and Upgradation <strong>of</strong><br />

skills (HRD)<br />

(a) Marketing Development programme<br />

for Powerloom Sector<br />

Marketing Development programme<br />

has a vital role in powerloom sector.<br />

Therefore, an activity for promotion<br />

and marketing <strong>of</strong> powerloom products<br />

through different mechanism such as<br />

organization <strong>of</strong> exhibitions and buyer<br />

seller meets, Seminar / Workshops,<br />

publicity & awareness programmes etc.<br />

are being implemented in association<br />

with Powerloom Development & Export<br />

Promotion Council (PDEXCIL) and other<br />

agencies. During 11 th Plan(2007-08 to<br />

Oct.2011), total 44 BSM have been<br />

conducted and Govt. has released fund<br />

amounting Rs.2.66 Crore.<br />

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ministry <strong>of</strong> <strong>textiles</strong><br />

(b) Exposure visit by powerloom<br />

weavers to other clusters :<br />

The powerloom weavers from the clusters<br />

<strong>of</strong> low level technology are not exposed to<br />

other areas <strong>of</strong> manufacturing to be able<br />

to produce diversified textile products<br />

or value added fabrics due to limited<br />

knowledge.<br />

With a view to overcome such deficiency,<br />

the powerloom weavers in different<br />

clusters, are being taken to other developed<br />

clusters to become familiar with the working<br />

upgraded skills, the products manufactured<br />

and the marketing techniques adopted in<br />

those clusters. The concerned Regional<br />

Offices assist the powerloom weavers<br />

during the exposure visits and facilitate<br />

effective and meaningful interaction. The<br />

financial assistance is also being provided<br />

by the Government <strong>of</strong> India to meet the<br />

expenditure arising out <strong>of</strong> these visits.<br />

During 11 th Plan(2007-08 to Oct.2011),<br />

total 2367 workers visited the developed<br />

powerloom clusters and Govt. has paid<br />

the fund <strong>of</strong> Rs.0.58 Crore for travelling and<br />

incidental expenditure to workers.<br />

(c) Powerloom Cluster Development<br />

Towards the development <strong>of</strong> different<br />

powerloom clusters identified, 30 CDOs<br />

were given training in cluster development<br />

by the EDI, Ahmedabad during 2007<br />

– 08 involving the total expenditure <strong>of</strong><br />

Rs.15.97 lakh. During the year 2008-09,<br />

Rs.4.80 lakh has been spent for refresher<br />

training <strong>of</strong> Officers from Regional Offices<br />

& Headquarters. The following 8 clusters<br />

have been selected for development and<br />

CDO have been posted in the respective<br />

cluster and diagnostic study have been<br />

completed by the CDO:<br />

(1) Burhanpur, (2) Nalagonda, (3)<br />

Ranaghat (4) Umbergaon (5) Amritsar (6)<br />

Karur (7) Bhilwara (8) Maunathbhanjan<br />

Coverage <strong>of</strong> Powerloom Sector in other<br />

ongoing Schemes :<br />

20% Margin Money Subsidy Scheme<br />

under TUFS<br />

The Govt. has implemented 20% Credit<br />

Linked Capital Subsidy Scheme under<br />

the TUFS, especially in order to help the<br />

decentralized Powerloom Sector. The<br />

scheme was announced on 6.11.2003 by<br />

<strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong> and is applicable to<br />

Powerlooms in SSI sector only. Under<br />

the Scheme, Rs.223.27 crore has been<br />

disbursed to 3033 cases between<br />

November, 2003 to 30.11.2011. The<br />

Scheme has been re-named as 20% MMS<br />

since 1.4.2007. Progress <strong>of</strong> this Scheme is<br />

given at table 9.4.<br />

Table 9.4<br />

Sr. No. Year No. <strong>of</strong> units Amount <strong>of</strong> subsidy released<br />

( Rs. In Crore)<br />

1. 2003 – 04 4 0.10<br />

2. 2004 – 05 150 6.00<br />

3. 2005 – 06 368 23.00<br />

4. 2006 – 07 827 59.86<br />

5. 2007 – 08 567 44.95<br />

6. 2008 – 09 404 32.48<br />

7. 2009 - 10 363 30.57<br />

8. 2010 – 11 233 17.72<br />

9. 2011- 12 (upto Nov.2011) 117 8.59<br />

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annual report 2011-12<br />

All India Powerloom Board<br />

The All India Powerloom Board was<br />

first constituted as an Advisory Board in<br />

November, 1981 and since then GOI has<br />

reconstituted AIPB from time to time. The<br />

Govt. <strong>of</strong> India has last reconstituted the<br />

AIPB for a period <strong>of</strong> two years vide Office<br />

Memorandum No.8/8/2007-PL dated<br />

22.12.2011. It has representatives <strong>of</strong> the<br />

Central and State Govts., Federations/<br />

Associations <strong>of</strong> Powerloom Industry<br />

as its members and is headed by the<br />

Hon’ble Union Minister <strong>of</strong> <strong>Textiles</strong> as the<br />

Chairman.<br />

MEGA CLUSTER<br />

The Schemes for mega cluster envisage<br />

support for weavers/artisans, both in and<br />

outside the cooperative fold, including<br />

those in Self Help Groups (SHGs), Non<br />

Governmental Organisations (NGOs) etc.<br />

The Schemes provide for development<br />

<strong>of</strong> all the facets <strong>of</strong> selected clusters like<br />

raw material support, design inputs, upgradation<br />

<strong>of</strong> technology, infrastructure<br />

development, marketing support, welfare<br />

<strong>of</strong> weavers etc. A convergence <strong>of</strong> the<br />

existing development interventions <strong>of</strong><br />

the <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong> & other Ministries/<br />

Departments will be affected in these<br />

clusters. The Schemes also raise living<br />

standards <strong>of</strong> the weavers/artisans by<br />

improving the infrastructure facilities,<br />

with better storage facilities, technology<br />

up-gradation in pre-loom/on-loom/postloom<br />

operations, weaving sheds, skill upgradation,<br />

design inputs, health facilities<br />

etc.<br />

The development <strong>of</strong> 6 Mega Clusters in<br />

Handloom, Handicrafts and Powerlooms<br />

were first announced by the Finance<br />

Minister in his Budget Speech 2008-09.<br />

Consequently, following three Central<br />

Sector Plan Schemes were approved<br />

by the Cabinet Committee on Economic<br />

Affairs (CCEA) in the meeting held on<br />

20.11.2008:<br />

i) Comprehensive Powerloom Cluster<br />

Development Scheme<br />

ii)<br />

Comprehensive Handloom Cluster<br />

Development Scheme<br />

iii) Comprehensive Handicrafts Cluster<br />

Development Scheme<br />

Based on Budget Announcement made<br />

in 2008-09, 2009-10 and 2010-11, 12<br />

centres are being developed as mega<br />

clusters on a Public Private Partnership<br />

(PPP) model to scale up infrastructure and<br />

production in Handloom, Handicraft and<br />

Powerloom sectors, wherein Government<br />

contribution has been earmarked at<br />

maximum <strong>of</strong> Rs.70 crore for each mega<br />

cluster. At present, following 12 centres<br />

are being developed as Mega Clusters as<br />

in table 9.5.<br />

Handlooms:<br />

4 Mega Clusters<br />

1. Varanasi (U.P).<br />

2. Sivsagar (Assam).<br />

3. Murshidabad (W.B.).<br />

4. Virudhunagar (T.N)).<br />

Table 9.5<br />

Handicrafts:<br />

5 Mega Clusters<br />

5. Moradabad (U.P.)<br />

6. Narasapur (A.P.).<br />

7. Bhdohi-Mirzapur (U.P.).<br />

8. Srinagar (J&K).<br />

9. Jodhpur (Rajasthan)<br />

*****<br />

111<br />

Powerloom:<br />

3 Mega Clusters<br />

10. Bhiwandi (Maharastra).<br />

11. Erode (Tamil Nadu).<br />

12. Bhilwara (Rajasthan).


112<br />

ministry <strong>of</strong> <strong>textiles</strong>


annual report 2011-12<br />

CHAPTER X<br />

HANDLOOMS<br />

113


114<br />

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annual report 2011-12<br />

CHAPTER X<br />

HANDLOOM INDUSTRY<br />

The Union Minister for Commerce & Industry and <strong>Textiles</strong>, Shri Anand Sharma lighting the lamp to<br />

inaugurate the Exhibition <strong>of</strong> Handicraft and Handloom Products from West Bengal, in New Delhi on<br />

September 05, 2011. The Minister <strong>of</strong> State for <strong>Textiles</strong>, Smt. Panabaaka Lakshmi and the Secretary,<br />

<strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong>, Ms. Rita Menon are also seen.<br />

Handloom weaving is one <strong>of</strong> the<br />

largest economic activity after<br />

agriculture providing direct and<br />

indirect employment to more than 43<br />

lakh weavers and allied workers. This<br />

sector contributes nearby 15% <strong>of</strong> the<br />

cloth production in the country and also<br />

contributes to the export earning <strong>of</strong> the<br />

country. 95% <strong>of</strong> the world’s hand woven<br />

fabric comes from India.<br />

The handloom sector has a unique place<br />

in our economy. It has been sustained by<br />

transferring skills from one generation to<br />

another. The strength <strong>of</strong> the sector lies<br />

in its uniqueness, flexibility <strong>of</strong> production,<br />

openness to innovations, adaptability to<br />

the supplier’s requirement and the wealth<br />

<strong>of</strong> its tradition.<br />

The adoption <strong>of</strong> modern techniques and<br />

economic liberalization, however, have<br />

made serious inroads into the handloom<br />

sector. Competition from powerloom and<br />

mill sector, availability <strong>of</strong> cheaper imported<br />

fabrics, changing consumer preferences<br />

and alternative employment opportunities<br />

have threatened the vibrancy <strong>of</strong> handloom<br />

sector.<br />

The Government <strong>of</strong> India, since<br />

independence, has been following a<br />

policy <strong>of</strong> promoting and encouraging<br />

the handloom sector through a number<br />

<strong>of</strong> programmes and schemes. Due to<br />

various policy initiatives and scheme<br />

interventions like cluster approach,<br />

aggressive marketing initiative and social<br />

welfare measures, the handloom sector<br />

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ministry <strong>of</strong> <strong>textiles</strong><br />

has shown positive growth and the<br />

income level <strong>of</strong> weavers has improved.<br />

The handloom fabric production has been<br />

very impressive and growth has been at<br />

the rate <strong>of</strong> 6% to 7% in the beginning <strong>of</strong><br />

the 11 th Plan. The subsequent economic<br />

downturn has affected all the sectors in<br />

India and abroad and handloom was no<br />

exception. The production had declined<br />

nominally in 2008-09. Now, there is a<br />

positive sign and production has shown<br />

positive growth. The export <strong>of</strong> handloom<br />

products has also shown a growth <strong>of</strong><br />

more than 32% in 2010-11 as compare to<br />

2009-10.<br />

In the cluster approach, efforts were<br />

made to cover groups <strong>of</strong> 100 weavers<br />

to 25000 weavers through different<br />

cluster sizes for their integrated and<br />

holistic development. Aggressive<br />

marketing initiative through marketing<br />

events (600-700 events per year) has<br />

helped weavers and their cooperative<br />

societies to understand the market trend<br />

and consumer choice, besides selling<br />

the products directly to the customers.<br />

For a focused attention on the sector,<br />

the <strong>Ministry</strong> has started celebrating<br />

‘Handloom Week’ every year.<br />

The handloom forms a precious part <strong>of</strong><br />

the generational legacy and exemplifies<br />

the richness and diversity <strong>of</strong> our<br />

country and the artistry <strong>of</strong> the weavers.<br />

Tradition <strong>of</strong> weaving by hand is a part<br />

<strong>of</strong> the country’s cultural ethos. As an<br />

economic activity, handloom is the 2 nd<br />

largest employment provider next only<br />

to agriculture. The sector about 23.77<br />

lakh handlooms provides employment<br />

to 43.31 lakh persons. Of which, 10%<br />

are scheduled castes, 18% belong to<br />

scheduled tribes, 45% OBC and 27%<br />

are from other Castes. Production in<br />

the handloom sector recorded a figure<br />

<strong>of</strong> 6949(P) million sqr.meters in the year<br />

2010-11, which is about 23.23% over<br />

the production figure <strong>of</strong> 5493 million<br />

sqr. meters recorded in the year 2003-<br />

04. During 2011-12 production in the<br />

handloom sector is reported to be 5178<br />

million sqr. meters (April – Dec.,2011)<br />

and is given at table10.1<br />

Year<br />

Table 10.1<br />

Cloth Production by Handloom Sector<br />

Cloth Production<br />

by Handloom<br />

Share <strong>of</strong> Handloom<br />

in the total cloth<br />

production<br />

Ratio <strong>of</strong> Handloom<br />

to Powerloom<br />

(in terms <strong>of</strong> cloth)<br />

Total Cloth<br />

Production*<br />

2003-04 5493 16.2 1:4.91 33874<br />

2004-05 5722 16.1 1:4.95 35573<br />

2005-06 6108 15.9 1:5.01 38390<br />

2006-07 6536 15.9 1:5.03 41161<br />

2007-08 6943 16.0 1:4.97 43265<br />

2008-09 6677 15.9 1:5.04 42121<br />

2009-10 6806 14.9 1:5.41 45819<br />

2010-11 6949 14.6 1:5.59 47083<br />

2011-12 (upto 5178 (P) 23110<br />

Dec.2011)<br />

* The total cloth production includes Handloom, Powerloom and Mill Sector excluding hosiery, khadi, <strong>wool</strong> and silk.<br />

116


annual report 2011-12<br />

The Office <strong>of</strong> the Development<br />

Commissioner for Handlooms has been<br />

implementing five schemes during 11th<br />

Five Year Plan, which are – (i) Integrated<br />

Handloom Development Scheme; (ii)<br />

Handloom Weavers Comprehensive<br />

Welfare Scheme; (iii) Marketing & Export<br />

Promotion Scheme; (iv) Mill Gate Price<br />

Scheme; and (v) Diversified Handloom<br />

Development Scheme. The scheme-wise<br />

progress is detailed below:<br />

INTEGRATED HANDLOOMS<br />

DEVELOPMENT SCHEME<br />

The Integrated Handloom Development<br />

Scheme (IHDS) envisages taking care <strong>of</strong><br />

all the needs <strong>of</strong> the weavers in a cluster<br />

in an integrated and coordinated manner.<br />

The scheme aims to focus on formation<br />

<strong>of</strong> weavers group as a visible entity,<br />

develop the handlooms weavers groups<br />

to become self-sustainable, inclusive<br />

approach to cover weavers both within<br />

and outside the cooperative fold, skill<br />

up-gradation <strong>of</strong> handlooms weavers/<br />

workers to produce diversified products<br />

with improved quality to meet the<br />

market requirements, provide suitable<br />

workplace to weavers to enable them to<br />

produce quality products with improved<br />

productivity etc.<br />

Under the scheme, clusters having about<br />

300 - 500 looms under each, are taken<br />

up for development in a time frame <strong>of</strong> 3<br />

years at an upper cost <strong>of</strong> Rs.60.00 lakh<br />

per cluster. Handloom weavers, who are<br />

not covered by the clusters, are supported<br />

through a ‘Group Approach”, which will be<br />

implemented in a project mode. A Group,<br />

consisting <strong>of</strong> 10 weavers or more, is<br />

provided financial assistance for (i) Basic<br />

inputs; (ii) Training in weaving, dyeing,<br />

designing and managerial disciplines;<br />

and (iii) Construction <strong>of</strong> Work-sheds.<br />

During the year 2011-12, there is a<br />

budgetary provision <strong>of</strong> Rs.164.70 crore<br />

(Rs.129.70 crore for General States and<br />

Rs.35.00 crore for NER States). Out <strong>of</strong><br />

Rs.164.70 crore, a sum <strong>of</strong> Rs.130.65<br />

crore has been released to various State<br />

Governments/UTs and other organizations<br />

(upto 21.02.2012). The Targets for new<br />

Clusters and Group Approach Projects for<br />

the 2011-12 have not been fixed and priority<br />

is for release <strong>of</strong> 2 nd & 3 rd instalments <strong>of</strong> the<br />

clusters and 2 nd installment <strong>of</strong> the Groups<br />

already sanctioned, 24 new Clusters have<br />

been sanctioned. A sum <strong>of</strong> Rs.59.13 crore<br />

has been released, which includes the third<br />

installment <strong>of</strong> earlier sanctioned projects.<br />

In addition, 258 Group Approach Projects<br />

have also been sanctioned and a sum <strong>of</strong><br />

Rs.13.01 crore has been released, which<br />

includes the earlier sanctioned projects.<br />

Under Marketing Incentive Component <strong>of</strong><br />

IHDS, a sum <strong>of</strong> Rs.65.98 crore has been<br />

released to various State Governments/<br />

UTs. Phase-wise number <strong>of</strong> Clusters taken<br />

up so far are given at table 10.2.<br />

Table 10.2<br />

Phase-wise number <strong>of</strong> Clusters<br />

taken up by<br />

2011-12 (upto 21.02.2012).<br />

Phase<br />

No. <strong>of</strong><br />

Clusters<br />

sanctioned<br />

No. <strong>of</strong> Group<br />

Approach<br />

Projects<br />

sanctioned<br />

Phase-I<br />

20 --<br />

(2006-07)<br />

Phase-II & III 251 --<br />

(2007-08)<br />

Phase-IV<br />

131 548<br />

(2008-09)<br />

Phase-V<br />

52 411<br />

(2009-10)<br />

Phase-VI<br />

107 829<br />

(2010-11)<br />

Phase-VII<br />

24 258<br />

(2011-<br />

12) (upto<br />

21.02.2012)<br />

Total 585 2046<br />

117


State-wise number <strong>of</strong> Clusters and Group<br />

Approach Projects taken up from 2006-07<br />

Table 10.3<br />

ministry <strong>of</strong> <strong>textiles</strong><br />

Number <strong>of</strong> Clusters Sanctioned during 2006-07 to 2011-12 under Integrated<br />

Handlooms Development Scheme (IHDS)<br />

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Total<br />

(upto<br />

Sl. No.<br />

21.02.12)<br />

1 Andhra Prd. 2 26 11 2 13 1 55<br />

2 Bihar 1 9 5 1 16<br />

3 Chhattisgarh 5 3 2 10<br />

4 Delhi 0 1 1<br />

5 Gujarat 5 4 9<br />

6 Haryana 0 1 1<br />

7 Himachal Prd. 1 2 2 3 8<br />

8 Jammu &<br />

Kashmir<br />

to 2011-12 (upto 21.02.2012) are given at<br />

table 10.3 & 10.4, respectively.<br />

0 8 2 10<br />

9 Jharkhand 10 11 5 9 35<br />

10 Karnataka 1 13 5 5 24<br />

11 Kerala 1 19 5 25<br />

12 Madhya Prd. 1 10 1 4 2 18<br />

13 Maharashtra 0 6 1 7<br />

14 Orissa 2 16 7 8 5 38<br />

15 Punjab 0 0<br />

16 Rajasthan 2 0 1 3 6<br />

17 Tamilnadu 3 27 10 12 52<br />

18 Uttar Pradesh 4 21 14 8 7 54<br />

19 Uttarakhand 5 1 2 8<br />

20 West Bengal 2 25 9 5 41<br />

Total 18 195 94 31 77 3 418<br />

NER<br />

1 Arunachal Prd. 8 4 3 4 19<br />

2 Assam 1 10 5 12 12 40<br />

3 Manipur 1 19 14 6 40<br />

4 Meghalaya 4 1 2 1 8<br />

5 Mizoram 1 1 2<br />

6 Nagaland 5 9 10 5 4 33<br />

7 Sikkim 0 0<br />

8 Tripura 10 4 5 6 25<br />

Total 2 56 37 21 30 21 167<br />

Grand Total 20 251 131 52 107 24 585<br />

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annual report 2011-12<br />

Table 10.4<br />

Number <strong>of</strong> Group Approach sanctioned during 2006-07 to 2011-12 under<br />

Integrated Handlooms Development Scheme (IHDS) (upto 21.02.2012)<br />

S.N. General 2008-09 2009-10 2010-11 2011-12<br />

(upto<br />

21.02.12)<br />

1 Andhra Prd. 127 135 90 352<br />

2 Bihar 6 6<br />

3 Chhattisgarh 6 24 30<br />

4 Delhi 0<br />

5 Gujarat 0<br />

6 Haryana 12 9 1 22<br />

7 Himachal Prd. 7 33 17 57<br />

8 Jammu & Kashmir 11 6 17<br />

9 Jharkhand 23 19 48 90<br />

10 Karnataka 18 18<br />

11 Kerala 21 21<br />

12 Madhya Prd. 7 7<br />

13 Maharashtra 54 54<br />

14 Orissa 46 30 16 92<br />

15 Punjab 0<br />

16 Rajasthan 6 10 16<br />

17 Tamilnadu 74 45 152 271<br />

18 Uttar Pradesh 76 58 200 334<br />

19 Uttarakhand 22 22 44<br />

20 West Bengal 36 29 65<br />

Total<br />

Sub Total 475 343 677 1 1496<br />

NER<br />

1 Arunachal Prd. 20 11 14 17 62<br />

2 Assam 14 14 33 34 95<br />

3 Manipur 178 178<br />

4 Meghalaya 3 14 14 3 34<br />

5 Mizzoram 13 23 36<br />

6 Nagaland 4 16 11 5 36<br />

7 Sikkim 15 15 20 50<br />

8 Tripura 17 42 59<br />

Sub Total 73 68 152 257 550<br />

Grand Total 548 411 829 258 2046<br />

119


ministry <strong>of</strong> <strong>textiles</strong><br />

2. HANDLOOM WEAVERS<br />

COMPREHENSIVE WELFARE<br />

SCHEME<br />

Since 2005-06 and 2006-07 the<br />

Government <strong>of</strong> India was implementing<br />

two separate schemes namely the ‘Health<br />

Insurance Scheme’ for providing health<br />

care facilities to the handloom weavers<br />

in the country and the ‘Mahatma Gandhi<br />

Bunkar Bima Yojana’ for providing Life<br />

Insurance Cover to handloom weavers in<br />

case <strong>of</strong> natural / accidental death, total<br />

/ partial disability due to accident. During<br />

the 11th Plan, both schemes have been<br />

amalgamated into one scheme namely<br />

Handloom Weavers’ Comprehensive<br />

Welfare Scheme. The details <strong>of</strong> the<br />

schemes are as under:<br />

2.1 Health Insurance Scheme (HIS)<br />

The revised Health Insurance scheme for<br />

Handloom Weavers is being implemented<br />

during 2010-11 & 2011-12 to enroll 17.97<br />

lakh weavers each policy year from 692<br />

clusters all over India, Zone-I (in the<br />

States <strong>of</strong> (Kerala, Karnataka, Puducherry,<br />

Tamilnadu, Andhra Pradesh, Orissa,<br />

Bihar, Chhatisgarh, Uttar Pradesh,<br />

Gujarat, Madhya Pradesh, Maharashtra,<br />

Rajasthan) and Zone-II (in the States <strong>of</strong><br />

Assam, Arunachal Pradesh, Manipur,<br />

Meghalaya, Mizoram, Nagaland, Sikkim,<br />

Tripura, Himachal Pradesh, Haryana,<br />

J& K, Jharkhand, Uttarakhand, West<br />

Bengal). The rates <strong>of</strong> premium are<br />

given at table 10.5.<br />

The annual limit per family is Rs.15,000/-<br />

out <strong>of</strong> which OPD cover will be Rs.7500/-.<br />

The scheme envisages covering (a) not<br />

only the weaver but also his wife and<br />

two children (b) all pre-existing diseases<br />

as well as new diseases and (c) has<br />

substantial provision for OPD. The<br />

ancillary handloom worker like those<br />

engaged in warping, winding, dyeing,<br />

printing, finishing, sizing, Jhala making,<br />

jacquard cutting etc. are also eligible to<br />

be covered. The progress <strong>of</strong> the scheme<br />

is given at Table 10.6.<br />

The following new initiatives have been<br />

taken in the Health Insurance Scheme for<br />

more effective implementation –<br />

1. The premium has been reduced by<br />

14% as compared to previous year.<br />

This has enabled more coverage <strong>of</strong><br />

weavers in the Policy year (2010-11)<br />

& (2011-12), i.e., 17.97 lakh weavers<br />

each as compared to 16.11 lakh<br />

weavers enrolled during the year<br />

2009-10.<br />

Table 10.5<br />

Zone-I ( 317 Clusters)<br />

Govt. <strong>of</strong> India Share<br />

Premium - Rs. 681.60<br />

Service Tax - Rs. 87.76<br />

Total - Rs. 769.36<br />

*Weaver/State Govt.<br />

contribution - Rs. 170.40<br />

Total Premium - Rs. 939.76<br />

( i.e.Rs.852.00 + 87.76)<br />

Zone-II (375 Clusters)<br />

Govt. <strong>of</strong> India Share<br />

Premium - Rs. 559.20<br />

Service Tax - Rs. 71.99<br />

Total - Rs. 631.19<br />

*Weaver/State Govt.<br />

contribution - Rs. 139.80<br />

Total Premium - Rs. 770.99<br />

(i.e.Rs.699.00 + 71.99)<br />

* The minimum contribution by weaver should be Rs.50/- even in cases where the State Govts. are making<br />

contribution on his behalf.<br />

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annual report 2011-12<br />

Table 10.6.<br />

Enrolment and Claims settled under Health Insurance Scheme (upto Dec. 2011)<br />

Policy Year Weavers’ enrolled No. <strong>of</strong> claims Settled Amount<br />

(Rs. in Cr.)<br />

2007-08 17,74,034 23,62,619 107.09<br />

2008-09 18,78,334 39,50,281 118.04<br />

2009-10 16,11,837 37,46,864 80.71<br />

2010-11<br />

17,97,513<br />

2,61,632 7.08<br />

(Policy period w.e.f.<br />

Dec.,10 to Nov.,11)<br />

(target)<br />

Cumulative Total 70,61,718 1,03,21,396 312.92<br />

2. The Service Provider has been<br />

selected for a period <strong>of</strong> two policy<br />

years, i.e., 2010-11 and 2011-12.<br />

3. The Insurance Company has its<br />

Cluster Coordinator/TPA in threefourth<br />

<strong>of</strong> 692 clusters <strong>of</strong> the country.<br />

4. Insurance Company has established<br />

tie-up with OPD/IPD for cashless<br />

facility in 90% <strong>of</strong> the handloom<br />

clusters in each State.<br />

5. For settlement <strong>of</strong> reimbursement<br />

claims, the beneficiary has to submit<br />

a claim within 60 days from the end<br />

date <strong>of</strong> policy period.<br />

6. The Insurance Company shall settle<br />

such claims within 30 days from its<br />

date <strong>of</strong> receipt.<br />

7. In case <strong>of</strong> delay <strong>of</strong> settlement, <strong>of</strong><br />

valid claims, Insurance Company<br />

pays interest on pro rata basis on<br />

the amount @ which is 2% above the<br />

bank rates prevalent at the beginning<br />

<strong>of</strong> the financial year in the year in<br />

which the claim was received by it.<br />

8. Insurance Company provides web<br />

based access, as far as possible,<br />

to data relating to enrollment, MIS<br />

reports, status <strong>of</strong> claims, balance<br />

amount left in his account (as a<br />

Statement <strong>of</strong> Treatment, on demand)<br />

9. Insurance Company conduct health<br />

camps periodically for grievance<br />

redressal, awareness and collection<br />

<strong>of</strong> claims.<br />

10. Reimbursement claims can be<br />

submitted by the beneficiary through<br />

the Cluster Coordinator <strong>of</strong> Insurance<br />

Company, TPA, through RPAD or<br />

Courier.<br />

11. A Grievance Redressal Committee<br />

has been formed in all States having<br />

more than 5000 health card holders.<br />

This Committee will constitute <strong>of</strong> 3<br />

members, will meet monthly to receive<br />

and settle complaints/grievances and<br />

to settle them within 60 days <strong>of</strong> the<br />

complaint being filed. The cost <strong>of</strong> the<br />

above Committee will be borne by<br />

the Insurance Company<br />

12. Insurance Company is responsible to<br />

provide all information under RTI or<br />

for Audit purposes to any authorized<br />

Government agency or O/o DCHL,<br />

as and when required.<br />

2.2 Mahatma Gandhi Bunkar Bima<br />

Yojana (MGBBY)<br />

The MGBBY is being implemented<br />

through the Life Insurance Corporation<br />

<strong>of</strong> India. The contribution <strong>of</strong> the annual<br />

premium <strong>of</strong> Rs.470/- per member under<br />

the scheme is at table 10.7.<br />

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ministry <strong>of</strong> <strong>textiles</strong><br />

Table 10.7<br />

Annual Premium <strong>of</strong> MGBBY<br />

GOI contribution<br />

Rs.290/-<br />

LIC’s contribution<br />

Total premium<br />

During the 11 th Plan, the benefits<br />

available under the MGBBY have been<br />

substantially increased as compared to<br />

what was available during the 10 th Plan<br />

(Table 10.8).<br />

Table 10.8<br />

Comparative Benefits under MGBBY<br />

S.<br />

No.<br />

(i)<br />

(ii)<br />

(iii)<br />

(iv)<br />

Details<br />

Natural<br />

Death<br />

Accidental<br />

Death<br />

Total<br />

Disability<br />

Partial<br />

Disability<br />

Benefits<br />

during the<br />

10 th Plan<br />

Rs. 50,000/-<br />

Rs.80,000/-<br />

Rs.50,000/-<br />

Rs.25,000/-<br />

Benefits<br />

from 1.10.07<br />

Weavers’ Contribution Rs. 80/-<br />

Rs.100/-<br />

Rs.470/-<br />

Rs.60,000/-<br />

Rs.1,50,000/-<br />

Rs.1,50,000/-<br />

Rs.75,000/-<br />

In addition to the above, under the<br />

MGBBY, a Scholarship <strong>of</strong> Rs.300/- per<br />

quarter per child is paid to students<br />

studying in standard IX to XII for a<br />

maximum period <strong>of</strong> four years or till they<br />

complete XII standard, whichever event<br />

occurs earlier. The benefit is restricted<br />

to two children <strong>of</strong> the member covered.<br />

Details <strong>of</strong> enrolment and claims settled<br />

under Mahatma Gandhi Bunkar Bima<br />

Yojana are given at table 10.9, 10.10<br />

and 10.11.<br />

Table 10.9<br />

Scholarships given under MGBBY<br />

Policy Year<br />

Number <strong>of</strong><br />

Scholarships<br />

given<br />

Amount<br />

(Rs. In<br />

Crore)<br />

2007-08 49170 Rs.04.03<br />

2008-09 59173 Rs.05.24<br />

2009-10 72793 Rs.06,87<br />

2010-11 155552 Rs.12.34<br />

2011-12 28470 Rs.04.24<br />

Policy Year<br />

Table 10.10<br />

Enrolments under MGBBY<br />

Weavers enrolled<br />

2007-08 466484<br />

2008-09 575909<br />

2009-10 526317<br />

2010-11 520831<br />

2011-12 6,00,000<br />

(target)<br />

Table 10.11<br />

Claims settled under MGBBY<br />

2008-09 2009-10 2010-11<br />

No.<br />

Amt.<br />

(Rs.<br />

Cr)<br />

No.<br />

Amt.<br />

(Rs.<br />

Cr)<br />

No.<br />

Amt.<br />

(Rs.<br />

Cr.)<br />

2011-12<br />

(upto<br />

Dec.,11)<br />

No.<br />

Amt.<br />

(Rs.<br />

Cr.)<br />

3696 21.1 3491 21.25 3719 22.74 2518 15.46<br />

59173 5.24 72793 6.87 155539 12.30 32770 4.60<br />

3. MARKETING & EXPORT PROMOTION<br />

SCHEME<br />

The Marketing Promotion envisages a<br />

wide gamut <strong>of</strong> activities for the promotion<br />

and marketing <strong>of</strong> handloom products,<br />

which inter alia includes (i) Organising<br />

Exhibitions, Events and Craft Melas, (ii)<br />

Setting up <strong>of</strong> Urban Haats, (iii) Setting<br />

up <strong>of</strong> Marketing Complexes/Handloom<br />

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annual report 2011-12<br />

Havelies, (iv) Publicity and Awareness<br />

and Brand building, (v) Geographical<br />

Indication Act, and (vi) Handloom House at<br />

Janpath. During the current financial year<br />

2011-12, as on 31 st January, 2012, 740<br />

marketing events have been sanctioned<br />

to various State Governments/ State<br />

Handloom agencies.<br />

Brand building through Handloom Mark<br />

The Handloom Mark has been launched<br />

to serve as a guarantee to the buyer<br />

that handloom product being purchased<br />

is a genuine handwoven product and<br />

not a powerloom or mill made product.<br />

Handloom Mark will be promoted and<br />

popularized through advertisements in<br />

newspapers and magazines, electronic<br />

media, syndicated articles, fashion<br />

shows, films etc. The <strong>Textiles</strong> Committee<br />

is the Implementing agency for promotion<br />

<strong>of</strong> Handloom Mark. As on 31st Jan.,<br />

2012, 241.21 lakh (cumulative) handloom<br />

mark labels have been sold to 8737<br />

stakeholders. 812 retail outlets are selling<br />

handloom goods with handloom mark<br />

label.<br />

The new beneficiaries included in the<br />

Handloom Mark Scheme to get the<br />

benefits are: Self Help Groups, Joint<br />

Liability Groups, Consortia, Producer<br />

companies, Handloom Weavers Groups<br />

or any other legal entity, or organization<br />

involved in Handloom activities and<br />

approved by Development Commissioner<br />

for Handlooms with a one time registration<br />

fee <strong>of</strong> Rs. 500.00.<br />

Sale price <strong>of</strong> one label has been brought<br />

down from Rs. 1.25 to 60 paise and<br />

application forms are available free <strong>of</strong><br />

cost. The Registration fee for individual<br />

weavers is Rs. 25 and for Master weaver<br />

Registration fee is Rs.500.<br />

Handloom Marketing Complex, Janpath,<br />

New Delhi:<br />

Handloom Marketing Complex at Janpath,<br />

New Delhi with the objective to provide<br />

infrastructure support to handloom<br />

agencies to augment their sales is under<br />

construction. This handloom marketing<br />

complex will showcase the exquisite<br />

varieties <strong>of</strong> handlooms produced all over<br />

the country by the adept weavers and<br />

will also act as a forum for the promotion<br />

<strong>of</strong> handloom products in the domestic<br />

as well as international markets. The<br />

complex is likely to be completed by the<br />

mid <strong>of</strong> 2012.<br />

Sant Kabir Award<br />

This award is conferred every year,<br />

beginning from the year 2009, on such<br />

outstanding weavers who have made<br />

valuable contribution in keeping alive<br />

the handloom heritage and also for<br />

their dedication in building up linkages<br />

between the past, present and the future<br />

through dissemination <strong>of</strong> knowledge on<br />

traditional skills and designs. Weavers<br />

will be conferred every year.<br />

Each award consists <strong>of</strong> one mounted<br />

gold coin, one shawl and a citation. In<br />

addition, financial assistance to the extent<br />

<strong>of</strong> Rs. 6.00 lakh is also given to each <strong>of</strong><br />

the Sant Kabir Awardee to innovate and<br />

create 10 new products <strong>of</strong> high level <strong>of</strong><br />

excellence, <strong>of</strong> high aesthetic value and <strong>of</strong><br />

high quality. 10 handloom weavers have<br />

been selected to confer Sant Kabir Award<br />

for the year 2009.<br />

Handloom Week<br />

To promote, popularize and create<br />

awareness about the handloom products<br />

Handloom Week is celebrated every year<br />

from 21st Dec. to 27th Dec. During the<br />

Handloom week, number <strong>of</strong> promotional<br />

and awareness programmes, publicity<br />

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ministry <strong>of</strong> <strong>textiles</strong><br />

through newspapers, magazines, outdoor<br />

publicity, through electronic media were<br />

undertaken.<br />

Marketing Events<br />

The target <strong>of</strong> marketing events for the<br />

year 2011-12 has been increased to 700<br />

No. from 680 No. sanctioned during the<br />

year 2010-11 to give adequate opportunity<br />

to handloom weavers and their societies<br />

to market their products directly to the<br />

consumers without the intervention <strong>of</strong> the<br />

middlemen. 740 marketing events have<br />

been sanctioned during the current year<br />

2011-12 till 31 st Jan., 2012.<br />

Exhibition <strong>of</strong> Handloom Products<br />

Exhibition-cum-Sale <strong>of</strong> Handloom<br />

Items during the ‘India Day’ at Lal<br />

Bahadur Shastri National Academy <strong>of</strong><br />

Administration (LBSNAA), Mussoorie<br />

was organised during July 2011 and<br />

again in Oct. 2011.<br />

A Buyer Seller Meet was organized in<br />

September 2011 at Jaipur to promote<br />

and preserve traditional Kota Doria and<br />

showcased wide range <strong>of</strong> Kota Doria<br />

products.<br />

A Master Creation Programme has been<br />

organised at Dilli Haat, INA, New Delhi<br />

from 1 st to 15 th Dec. 2011 wherein National<br />

awardees have exhibited their products<br />

for sale directly to the public. Loom<br />

demonstration has also been made during<br />

the programme. An exhibition cum sale<br />

‘Himcraft’ <strong>of</strong> <strong>wool</strong>en products developed<br />

in clusters <strong>of</strong> Himachal Pradesh was held<br />

during the “Handloom Week” on 24-26 th<br />

December, 2011 at India Islamic Center,<br />

New Delhi where the Handloom weavers<br />

exhibited and sold their products to public.<br />

The Geographical Indications <strong>of</strong> Goods<br />

The Geographical Indications <strong>of</strong> Goods<br />

(Registration & Protection) Act 1999<br />

provides legal protection to Geographical<br />

Indications <strong>of</strong> goods etc., and prevents<br />

unauthorized use <strong>of</strong> these by others. Under<br />

Marketing & Export Promotion Scheme<br />

this <strong>of</strong>fice provides Rs.1.50 lakh to register<br />

the handloom items under Geographical<br />

Indications. Financial assistance to register<br />

35 items have been provided by this <strong>of</strong>fice<br />

so far to various States.<br />

Export Promotion<br />

The objective <strong>of</strong> the Handloom Export<br />

Promotion is to assist the handloom<br />

Cooperative Societies, Corporations/Apex<br />

and handloom exporters to participate in<br />

international events, buyer-seller meets<br />

etc. and to make available the latest<br />

designs, trends, colour forecasts etc.<br />

Under this Component, assistance is given<br />

for (i) Export Project, (ii) Participation<br />

in International fairs & exhibitions, and<br />

(iii) Setting up <strong>of</strong> Design studios. During<br />

the year 2010-11, 03 Export Projects<br />

were sanctioned and various handloom<br />

agencies participated through HEPC in 23<br />

international fairs/exhibitions. During the<br />

current year 2011-12, participation in 22<br />

international fairs have been approved.<br />

4. MILL GATE PRICE SCHEME<br />

(MGPS)<br />

This scheme was introduced during<br />

1992-93 with the objective <strong>of</strong> providing<br />

all types <strong>of</strong> yarn to the handloom<br />

weavers’ organizations at the price at<br />

which it is available at the Mill Gate.<br />

National Handloom Development<br />

Corporation (NHDC), Government <strong>of</strong><br />

India Undertaking, is the nodal agency<br />

for implementation <strong>of</strong> the scheme.<br />

All types <strong>of</strong> yarn required for production<br />

<strong>of</strong> handloom items are covered under<br />

the scheme. Under the scheme,<br />

the Government <strong>of</strong> India provides<br />

transportation expenses involved in the<br />

supply <strong>of</strong> the hank yarn to handloom<br />

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annual report 2011-12<br />

sector. There is also a provision for<br />

supply <strong>of</strong> yarn through Yarn depots and<br />

expenses <strong>of</strong> operation <strong>of</strong> the Yarn depots<br />

@ 2.5% <strong>of</strong> value <strong>of</strong> yarn is provided by<br />

Government <strong>of</strong> India. 788 yarn depots<br />

are operational throughout the country<br />

as on 31.12.2011. Under the Mill Gate<br />

Price Scheme, following assistance is<br />

provided:-<br />

(i) Freight reimbursement for<br />

transportation <strong>of</strong> yarn.<br />

(ii) Expenses <strong>of</strong> operating the yarn depot<br />

@ 2.5%, based on actuals.<br />

(iii) Service Charges to the NHDC..<br />

To <strong>of</strong>fset the increase in fuel cost and<br />

ensure availability <strong>of</strong> arn in handloom<br />

clusters in far flung areas <strong>of</strong> the country<br />

at the same price at which it is available<br />

at yarn manufacturing mills, the rate <strong>of</strong><br />

freight reimbursement for transportation<br />

have been enhanced and revised rate <strong>of</strong><br />

freight reimbursement admissible under<br />

the MGPS for supply <strong>of</strong> yarn is given at<br />

table 10.12.<br />

Table 10.12<br />

Maximum Freight Rate<br />

Reimbursement under the MGPS<br />

Item<br />

Plain<br />

Area<br />

Hills/<br />

remote<br />

Area<br />

NE<br />

Region<br />

Yarn Other than 2.5% 2.5% 5.00%<br />

Silk/Jute<br />

Silk Yarn 1.00% 1.25% 1.50%<br />

Jute/Jute<br />

blended yarn<br />

10.00% 10.00% 10.00%<br />

Supply <strong>of</strong> yarn by the National Handloom<br />

Development Corporation (NHDC) under<br />

the Mill Gate Price Scheme has gone up<br />

considerably and registered a figure <strong>of</strong><br />

1105.96 lakh kgs. valued at Rs.1195.50<br />

crore in the year 2010-11. During the<br />

year 2011-12 (upto Dec., 2011), 638.98<br />

lakh kgs yarn valued at Rs.739.81 crore<br />

has been supplied by the NHDC under<br />

the scheme. The details <strong>of</strong> yarn supplied<br />

under MGPS during the 11 th Plan is given<br />

attable 10.13.<br />

Table 10.13<br />

Progress <strong>of</strong> Mill Gate Price Scheme<br />

Year<br />

Qty<br />

(In lakh kg.)<br />

Yarn supply<br />

Value<br />

(Rs. In crore)<br />

2007-08 678.46 563.05<br />

2008-09 855.12 793.77<br />

2009-10 1081.21 987.32<br />

2010-11 1105.96 1195.55<br />

2011-12<br />

(upto Dec.,<br />

2011)<br />

638.98 739.81<br />

10% Price Subsidy on Hank Yarn<br />

To address the issue <strong>of</strong> yarn availability at<br />

reasonable prices to handloom weavers<br />

and their organization, the Cabinet has<br />

approved on 18 th December, 2011 a new<br />

component 10% Price Subsidy on Hank<br />

Yarn alongwith enhancement <strong>of</strong> rate <strong>of</strong><br />

freight reimbursement (as indicated in<br />

Table 10.10) under MGPS. Under this new<br />

component <strong>of</strong> MGPS, 10% price subsidy<br />

on domestic silk yarn and cotton hank<br />

yarn will be provided by the Government<br />

to ensure supply <strong>of</strong> subsidised yarn to<br />

handloom sector.<br />

The National Handloom Development<br />

Corporation, State Governments and their<br />

Apex/Corporations will be implementing<br />

agencies. A yarn pass book will be issued<br />

and the subsidized yarn will be supplied<br />

either to individual handloom weavers<br />

or to their self help groups, cooperative<br />

societies etc., but not to both.<br />

5. DIVERSIFIED HANDLOOM<br />

DEVELOPMENT SCHEME (DHDS)<br />

The Central Sector Diversified Handloom<br />

Development Scheme (DHDS) aims at<br />

125


upgrading the skills <strong>of</strong> the handloom<br />

weavers through organization <strong>of</strong> workshops<br />

and exhibitions, design development,<br />

documentation <strong>of</strong> traditional designs and<br />

providing linkage and meeting the market<br />

requirements. This scheme includes<br />

components such as Strengthening <strong>of</strong><br />

Weavers Service Centres/Indian Institutes<br />

<strong>of</strong> Handloom Technology. Setting up <strong>of</strong><br />

new WSCs/IIHTs, National Centre for<br />

Textile Design (NCTD), Research &<br />

Development (R&D) and Conducting<br />

Third Census and issue <strong>of</strong> Photo Identity<br />

Cards to Handloom Weavers & allied<br />

workers have been major components <strong>of</strong><br />

the Scheme during XI Plan. Against the<br />

approved outlay <strong>of</strong> Rs.24.10 crore, a sum<br />

<strong>of</strong> Rs.12.48 crore have been incurred till<br />

31.01.12. The component wise progress<br />

is detailed below:<br />

ministry <strong>of</strong> <strong>textiles</strong><br />

Third Handloom Census and issue<br />

<strong>of</strong> Photo Identiy cards to Handloom<br />

weavers :<br />

The work <strong>of</strong> conducting “Third National<br />

Handloom Census and issue <strong>of</strong><br />

Photo Identity Cards (PIC) to all the<br />

eligible weavers” has been completed<br />

successfully. The report <strong>of</strong> the Handloom<br />

Census <strong>of</strong> India (2009-10) was released<br />

on 23.12.2010 and work <strong>of</strong> issuing Photo<br />

identity cards commenced through<br />

MOS(T) on that day. Subsequently,<br />

the PICs have been delivered to the<br />

State Governments concerned across<br />

the country for onward distribution to<br />

the eligible weavers and allied workers<br />

concerned. The highlights <strong>of</strong> the census<br />

are given in table 10.14 & 10.15.<br />

Table 10.14<br />

Handloom Units, Weavers and Allied Workers, and Number <strong>of</strong> Handlooms<br />

(as per Handloom Census)<br />

(Figures in lakhs)<br />

Handloom Units<br />

Weavers and<br />

Allied Workers<br />

No. <strong>of</strong> Handlooms<br />

1 First Census (1987-88) 29.97 67.4 37.8<br />

2 Second Census (1995-96) 25.24 65.5 34.71<br />

3 Third Census (2009-10) 28.2 43.31 23.71<br />

Table 10.15<br />

Comparative Outcome-as per Handloom Census 1995-96 v/s 2009-10:<br />

Parametre<br />

Second Census<br />

(1995-96)<br />

Third Census<br />

(2009-10)<br />

Mandays’ worked per weaver household (days) 197 234<br />

Share <strong>of</strong> full time weavers to total weavers 44% 64%<br />

Share <strong>of</strong> weavers’ household reporting less than a<br />

metre production per day<br />

Share <strong>of</strong> weavers’ household reporting more than<br />

60% income from handloom and related activities<br />

68% 46%<br />

31% 35%<br />

Share <strong>of</strong> idle handlooms 10% 4%<br />

126


annual report 2011-12<br />

Weavers’ Service Centres (WSCs):<br />

At present, twenty five Weavers Service<br />

Centres (WSCs) are located across the<br />

country. These WSCs pay a vital role in<br />

imparting training to weavers, upgrading<br />

the skill and productivity <strong>of</strong> weavers.<br />

They have developed new designs and<br />

revived traditional ones. WSCs also<br />

render extension services which involve<br />

transfer <strong>of</strong> design inputs, skills and<br />

technology to weavers. All the WSCs are<br />

functioning under Non-plan. During the<br />

year 2010-11, a sum <strong>of</strong> Rs.2799.22 lakh<br />

(Non-plan) had been incurred against RE<br />

budget <strong>of</strong> Rs.2866.33 lakh. During the<br />

current financial year 2011-12, an amount<br />

<strong>of</strong> Rs.2560 Lakh has been incurred upto<br />

October,2011 against the budget provision<br />

<strong>of</strong> Rs.2965 lakh.<br />

Indian Institutes <strong>of</strong> Handloom Technology<br />

(IIHTs):<br />

The Indian Institutes <strong>of</strong> Handloom<br />

Technology (IIHTs) provide qualified<br />

and trained manpower to the Handloom<br />

Sector and undertake experimental and<br />

research programmes on all aspects<br />

<strong>of</strong> the handloom <strong>industry</strong>. Five IIHTs<br />

are presently functioning each one at<br />

Varanasi, Salem, Guwahati, Jodhpur and<br />

Bargarh in the Central Sector. In order<br />

to cater the needs <strong>of</strong> handloom sector for<br />

technically qualified manpower, provision<br />

for opening new IIHTs in the Central Sector<br />

wherever required, has been made in the<br />

XI Five Year Plan. In principle approval<br />

for setting up an IIHT at Shantipur (West<br />

Bengal) has been accorded recently<br />

by the Hon’ble Commerce, Industry &<br />

<strong>Textiles</strong> Minister, vide his announcement<br />

dated 4.11.2011.<br />

Setting up IIHT at Bargarh (Orissa):<br />

In pursuance to the Hon’ble Prime<br />

Minister’s announcement in August,<br />

2006, an Indian Institute <strong>of</strong> Handloom<br />

technology (IIHT) has been set up at<br />

Bargarh (Orissa) w.e.f. 2.6.2008 from<br />

the Panchayat College Campus, Bargarh<br />

(Orissa). Construction <strong>of</strong> its own building<br />

is in progress. Against the total cost <strong>of</strong><br />

Rs.36.09 crore, an amount <strong>of</strong> Rs.19.05<br />

crore has been released to CPWD<br />

authorities concerned upto 2011-12 (upto<br />

30.11.2011). Every year, 30 students are<br />

<strong>of</strong>fered admission in three years Diploma<br />

Course in Handloom Technology and 21<br />

students have been passed out their DHT<br />

course till April, 2011 from IIHT, Bargarh.<br />

Apart from the above, four IIHTs are<br />

also functioning at Venkatagiri (Andhra<br />

Pradesh), Gadag (Karnataka), Champa<br />

(Chhattisgarh) and Kannur (Kerala) under<br />

the State Sector.<br />