chapter viii wool & wollen textiles industry - Ministry of Textiles

annual report 2011-12
sector. There is also a provision for
supply of yarn through Yarn depots and
expenses of operation of the Yarn depots
@ 2.5% of value of yarn is provided by
Government of India. 788 yarn depots
are operational throughout the country
as on 31.12.2011. Under the Mill Gate
Price Scheme, following assistance is
provided:-
(i) Freight reimbursement for
transportation of yarn.
(ii) Expenses of operating the yarn depot
@ 2.5%, based on actuals.
(iii) Service Charges to the NHDC..
To offset the increase in fuel cost and
ensure availability of arn in handloom
clusters in far flung areas of the country
at the same price at which it is available
at yarn manufacturing mills, the rate of
freight reimbursement for transportation
have been enhanced and revised rate of
freight reimbursement admissible under
the MGPS for supply of yarn is given at
table 10.12.
Table 10.12
Maximum Freight Rate
Reimbursement under the MGPS
Item
Plain
Area
Hills/
remote
Area
NE
Region
Yarn Other than 2.5% 2.5% 5.00%
Silk/Jute
Silk Yarn 1.00% 1.25% 1.50%
Jute/Jute
blended yarn
10.00% 10.00% 10.00%
Supply of yarn by the National Handloom
Development Corporation (NHDC) under
the Mill Gate Price Scheme has gone up
considerably and registered a figure of
1105.96 lakh kgs. valued at Rs.1195.50
crore in the year 2010-11. During the
year 2011-12 (upto Dec., 2011), 638.98
lakh kgs yarn valued at Rs.739.81 crore
has been supplied by the NHDC under
the scheme. The details of yarn supplied
under MGPS during the 11 th Plan is given
attable 10.13.
Table 10.13
Progress of Mill Gate Price Scheme
Year
Qty
(In lakh kg.)
Yarn supply
Value
(Rs. In crore)
2007-08 678.46 563.05
2008-09 855.12 793.77
2009-10 1081.21 987.32
2010-11 1105.96 1195.55
2011-12
(upto Dec.,
2011)
638.98 739.81
10% Price Subsidy on Hank Yarn
To address the issue of yarn availability at
reasonable prices to handloom weavers
and their organization, the Cabinet has
approved on 18 th December, 2011 a new
component 10% Price Subsidy on Hank
Yarn alongwith enhancement of rate of
freight reimbursement (as indicated in
Table 10.10) under MGPS. Under this new
component of MGPS, 10% price subsidy
on domestic silk yarn and cotton hank
yarn will be provided by the Government
to ensure supply of subsidised yarn to
handloom sector.
The National Handloom Development
Corporation, State Governments and their
Apex/Corporations will be implementing
agencies. A yarn pass book will be issued
and the subsidized yarn will be supplied
either to individual handloom weavers
or to their self help groups, cooperative
societies etc., but not to both.
5. DIVERSIFIED HANDLOOM
DEVELOPMENT SCHEME (DHDS)
The Central Sector Diversified Handloom
Development Scheme (DHDS) aims at
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