chapter viii wool & wollen textiles industry - Ministry of Textiles

annual report 2011-12
units stood at 9,482 with fine spindles at
6,974 and coarse spindles at 2,508. The
maximum installed capacity in jute mills
other than 100% export oriented units (on
the basis of 305 working days per year) is
estimated to be of 2.47 million tonnes per
annum.
HANDLOOMS
Handloom weaving is one of the largest
economic activities after agriculture
providing direct and indirect employment
to more than 43 lakh weavers and allied
workers. This sector contributes nearby
15% of the cloth production in the
country and also contributes to the export
earnings of the country. 95% of the world’s
handwoven fabric comes from India.
Production in the Handloom Sector
increased
Resultant to the developmental and
welfare measures initiated by the
Government of India, the declining trend
in production in the handloom sector had
been arrested and from the year 2004-05
(except year of recession in 2008-09) there
in fact has been a considerable growth in
production in the sector. Production in the
handloom sector recorded a figure of 6949
million sq. meters in the year 2010-11,
which is about 26% over the production
figure of 5493 million sq. meters recorded
in the year 2003-04.
Revival, Reform and Restructuring
Package for Handloom Sector
The “Revival, Reform and Restructuring
Package for Handloom Sector” has been
approved with the total financial implication
of Rs. 3884 crore, out of which Government
of India’s share is Rs. 3137 crore and the
share of the State Governments is Rs. 747
crore. The Package covers loan waiver
of 100% of principal and 25% of interest,
which is overdue as on 31.03.2010 in
respect of weavers and their societies.
Interest subsidy of 3% for 3 years will be
extended with guarantee of the fresh loan
extended by banks to the eligible handloom
cooperative societies and individual
handloom weavers.
Comprehensive Package for the
Handloom Sector
To meet the two critical needs of cheap
credit and cheap hank yarn for the
handloom sector, the Government has
approved a comprehensive package for
handloom sector. The components of
comprehensive package are implemented
through two existing Plan schemes i.e.
Integrated Handlooms Development
Scheme for availability of cheap credit,
and Mill Gate Price Scheme for availability
of subsidised hank yarn. For easy credit
availability to handloom weaver, the
Government of India will provide margin
money assistance @ Rs.4200/- per
weaver, interest subvention at 3% per
annum for 3 years and credit guarantee
for 3 years by the Credit Guarantee Fund
Trust for Micro and Small Enterprises
(CCTMSE).
To ensure yarn availability at reasionable
prices, 10% price subsidy on domestic
silk yarn and cotton yarn have been
approved by the Government of India.
Further the rate of freight reimbursement
for transportation of different types of yarn
has also been enhanced suitably in order
to offset the increase in fuel cost.
The projected financial outlay involved
in the implementation of these proposals
during the current year 2011-12 and the
12 th Plan period is Rs. 2362.15 crore. The
comprehensive package will benefit all the
handloom weavers and their cooperative
societies in the country as per the budget
allocation, in addition to 3 lakh handloom
weavers and 15,000 cooperative
societies already covered under the
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