chapter viii wool & wollen textiles industry - Ministry of Textiles

ministry of textiles
Financial Package approved earlier.
These interventions aim at bringing about
a paradigm shift by converting individual
weavers into micro entrepreneurs by
empowering them with cheap credit and
yarn. Individual weavers will now be able
to command a better price in the market
for their products.
Handloom Weaver Credit Card (WCC)
Scheme
Handloom sector largely comprises of
small and tiny units, which fall mostly
under the unorganized sector and
that credit needs of a large number of
weavers are being met through informal
channels.
The WCC Scheme aims at providing
adequate and timely assistance from the
Banking institutions to the weavers to
meet their credit requirements, i.e., for
investments needs as well as for working
capital of Rs.30,000-50,000 per borrower
in a flexible and cost effective manner.
Weaver Credit Card (WCC) Scheme
dovetailed with other Government
programmes will go a long way in
supporting the government initiatives to
fulfill the objective of financial inclusion.
Credit Guarantee through Credit
Guarantee Fund Trust For Micro And
Small Enterprises (CGTMSE):
The Credit Guarantee Fund Trust for
Micro and Small Enterprises (CGTMSE)
was set up in July, 2000 jointly by GOI
and SIDBI. The trust provides guarantee
cover to term loan and working capital
facilities sanctioned by its member lending
institutions without collateral security
to eligible units in the Micro and Small
Enterprises Sector.
It has been decided to provide a credit
guarantee cover for working capital/term
loan assistance by Government of India on
behalf of the eligible Handloom Weavers
to enable them to access credit without
any collateral security. The Government
of India will pay the Guarantee Fees and
Annual Service Charges (as applicable)
on behalf of the borrowers, for loans of
upto Rs. 50,000 per weavers under Credit
Guarantee Fund Trust for Micro and Small
Enterprises (CGTMSE) Scheme. This will
cover 85% of the amount in default.
585 Handloom Clusters taken up for
development.
The Integrated Handlooms Development
Scheme(IHDS) has been launched
with a view to develop holistically and
comprehensively the weavers’ clusters
throughout the country. Under this scheme,
585 Handloom clusters have been taken
up during XI th Plan (upto 21.02.2012) and
financial assistance of Rs 176.11 crore has
been released to various Implementing
agencies through the State Government for
various components like skill upgradation,
setting up of CPC/Dye House, marketing,
formation of consortium etc.
71 Lakh Weavers covered under the
Health Insurance Scheme
The Health Insurance Scheme provides
health care facilities to the handloom
weavers and their families. 71.24 lakh
weavers have been covered/enolled
during the XIth Plan under this scheme
which extends benefit to more than 284
lakh persons including spouse and two
children of the weaver covered.
Yarn supply under the Mill Gate Price
Scheme
788 yarn depots, covering all the
handloom clusters, have been set up
by the NHDC to ensure steady and
timely supply of requisite yarn at Mill
Gate Price to the handloom weavers.
18