Book English 2011.p65 - Ministry of Textiles

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Annual Report(2010-11)Ministry of TextilesGovernment of India

CONTENTSSl.No. Chapter PageI Highlights 1II Functions & Organisational Set-up 19III The Organised Textiles Mill Industry 29IV Exports 43V The Cotton and Man-made Fibre and Filament Yarn Industry 65VI The Jute and Jute Textiles Industry 75VII Sericulture and Silk Industry 97VIII The Wool and Woollen Textiles Industry 117IX Decentralised Powerloom Sector 125X Handlooms 133XI Handicrafts 153XII Public Sector Undertakings 175XIII Textiles Research Associations 203XIV Citizen's / Client's Charter 239XV Welfare of Scheduled Castes, Scheduled Tribes and Women 249XVI Textiles in North Eastern Region 253XVII Gender Justice 259XVIII Information and Communication Technology in Textiles 263XIX Vigilance Activities 269XX Observations of the Comptroller and Auditor General of India 273XXI Persons with Disabilities 281

annual report 2010-11CHAPTER IHIGHLIGHTS1

2ministry of textiles

annual report 2010-11CHAPTER IHIGHLIGHTSThe Union Minister for Textiles, Thiru. Dayanidhi Maran at the 16th National Institute ofFashion Technology (NIFT) Convocation, in New Delhi on November 02, 2010The Indian Textiles Industry has anoverwhelming presence in theeconomic life of the country. Apartfrom providing one of the basic necessitiesof life, the textiles industry also plays apivotal role through its contribution toindustrial output, employment generation,and the export earnings of the country.Currently, it contributes about 14 percentto industrial production, 4 percent to theGDP, and 17 percent to the country'sexport earnings. It provides directemployment to over 35 million people,which includes a substantial number ofSC/ST, and women. The Textiles sectoris the second largest provider ofemployment after agriculture. Thus, thegrowth and all round development of thisindustry has a direct bearing on theimprovement of the economy of the nation.The Indian textiles industry is extremelyvaried, with the hand-spun and handwovensector at one end of the spectrum,and the capital intensive, sophisticatedmill sector at the other. The decentralizedpowerlooms / hosiery and knitting sectorfrom the largest section of the TextilesSector. The close linkage of the Industryto agriculture and the ancient culture, and3

annual report 2010-11(2002-07), Rs. 1,270 crore had beenearmarked for the scheme. However, thenet utilization of funds under this Schemewas Rs. 2044.17 crore.The modified techno-financial parametersof the Scheme will infuse capitalinvestment into the textiles sector, andhelp it capitalize on the vibrant andexpanding global and domestic markets,through technology up gradation, costeffectiveness, quality production, efficiencyand global competitiveness. It is estimatedthat this will ensure a growth rate of 16%in the sector. The modified structure ofTUFS focuses on additional capacitybuilding, better adoption of technology,and provides for a higher level ofassistance to segments that have a largerpotential for growth, like garmenting,technical textiles, and processing.The Scheme covers spinning, cottonginning & pressing, silk, reeling & twistingwool, scouring & combing, syntheticfilament yarn texturising, crimping andtwisting, manufacturing of viscose filamentyarn (VFY) / viscose staple fibre (VSF),weaving/knitting including non-wovens andtechnical textiles, garments, made-upmanufacturing, processing of fibres, yarns,fabrics, garments and made-ups, and thejute sector.PROGRESSThe progress of TUFS is steadily goingup which is evident from the data givenat table 1.1.TEXTILE WORKERS' REHABILITATIONFUND SCHEME (TWRFS)The Textile Workers' Rehabilitation FundScheme came into force with effect from15.09.1986 with the objective to provideinterim relief to textile workers renderedunemployed as a consequence ofpermanent closure of any particular portionTable 1.1(Rs. in crore)Period Received Sanctioned DisbursedNo. of Project No. of Project Amount No. of Amount Subsidyapplications Cost applications Cost applications1999-2000 407 5771 309 5074 2421 179 746 12000-2001 719 6296 616 4380 2090 494 1863 702001-2002 472 1900 444 1320 630 401 804 198.892002-2003 494 1835 456 1438 839 411 931 202.592003-2004 867 3356 884 3289 1341 814 856 249.062004-2005 986 7941 986 7349 2990 801 1757 283.602005-2006 1086 16194 1078 15032 6776 993 3962 4852006-2007 12336 61063 12589 66233 29073 13168 26605 823.922007-2008 2408 21254 2260 19917 8058 2207 6854 1143.372008-2009 (P) 6113 56542 6072 55707 24007 6111 21826 2632.002009-2010 2384 28005 2352 27611 6612 2361 8140 28862010-11 (UptoJune 2010) (P) 256 397 256 397 254 240 282As on30.06.2010(P) 28528 210554 28302 207747 85091 28180 74627 8665.435

ministry of textilesor entire textile unit. Assistance under theScheme is payable to eligible workersonly for the purpose of enabling them tosettle in another employment. Suchassistance is not heritable, transferable orcapable of being attached on account ofany other liabilities of the worker. Theworker's eligibility shall cease if he takesup employment in another registered orlicensed undertaking. The rehabilitationassistance will not be curtailed if theworker fixes himself in a self-employmentventure.ProgressTill 30.9.2010, 82 mills were found eligibleunder the scheme. A total of 111634workers out of 143157 workers on therolls of these mills had been disbursedrelief of Rs. 296.77 crore. The State-wisecumulative position is given at table 1.2.EXPORTSIndia's textiles and clothing industry is oneof the mainstays of the national economy.It is also one of the largest contributingsectors of India's exports worldwide. TheVision Statement for the textiles industryfor the 11th Five Year Plan (2007-12),inter-alia, envisages India securing a 7%share in the global textiles trade by 2012.At current prices the Indian textiles industryis pegged at US$ 55 billion, 64% of whichservices domestic demand. The textilesindustry accounts for 14% of industrialproduction, which is 4% of GDP; employs35 million people and accounts for nearly12% share of the country's total exportsbasket.MILESTONESi) Exports of textiles and clothingproducts from India have increasedsteadily over the last few years,particularly after 2004 when textilesexports quota were discontinued.ii)India's Textiles & Clothing (T&C)export registered robust growth of25% in 2005-06, recording a growthof US$ 3.5 billion over 2004-05 inTable 1.2S. State No. of mills No. of No. of workers benefited Disbursed amountNo. identified workers (as on 30.9.2010) (Rs. in crores)on rollNo. of Workersmills received relief1 Gujarat 43 80749 43 63608 159.502 Maharashtra 6 9958 6 7646 22.643. Madhya Pradesh 5 19800 5 18596 52.034. Tamil Nadu 6 5685 6 4761 7.455. Kerala 1 500 1 437 2.476. Karnataka 9 10020 9 5818 21.347. Andhra Pradesh 4 2501 4 1298 5.318. Delhi 1 5187 1 5170 11.939 West Bengal 3 2072 3 2042 5.3310. Punjab 4 6685 4 2258 8.77Total 82 143157 82 111634 296.776

annual report 2010-11iii)iv)value terms thereby reaching a levelof US$ 17.52 billion and the growthcontinued in 2006-07 with T&Cexports of US$19.15 billion recordinga increase of 9.28% over previousyear and reached USD22.15 billionin 2007-08 denoting an increase of15.7% but declined by over 5% in2008-09 with exports of USD 20.94billion. During 2009-10, the exportsof T&C increased by over 5.60% andreached the level of USD 22.42billion. Thus exports of T&C havedenoted an increase of 60.14% inthe last five years (2004-05 to 2009-10). Indian T&C exports is facingvarious constraints of infrastructure,high power and transaction cost,incidence of state level cess andduties, lack of state-of-the-arttechnology etc.Readymade Garments account foralmost 45% of the total textilesexports. Apparel and cotton textilesproducts together contribute nearly70% of the total textiles exports.The exports basket consists of awide range of items comprisingreadymade garments, cotton textiles,handloom textiles, man-made fibretextiles, wool and woolen goods, silk,jute and handicrafts including carpets.v) India's textiles products, includinghandlooms and handicrafts, areexported to more than a hundredcountries. However, the USA and theEU, account for about two-third ofIndia's textiles exports. The othermajor export destinations areCanada, U.A.E., Japan, Saudi Arabia,Republic of Korea, Bangladesh,Turkey, etc.September'10, exports of T&C havebeen achieved at USD 11.26 billion.SCHEME FOR INTEGRATED TEXTILEPARKS (SITP)The 'Scheme for Integrated Textile Parks(SITP)' is being implemented to facilitatesetting up of textile units with appropriatesupport infrastructure. IndustryAssociations / Group of Entrepreneursare the main promoters of the IntegratedTextiles Park (ITP).Scope of the SchemeThe scheme targets industrial clusters/locations with high growth potential, whichrequire strategic interventions by way ofproviding world-class infrastructuresupport. The project cost covers commoninfrastructure and buildings for production/support activities, depending on the needsof the ITP. The components of an ITPare:(a)(b)(c)(d)Group A - Land.Group B - Common Infrastructurelike compound wall, roads, drainage,water supply, electricity supplyincluding captive power plant, effluenttreatment, telecommunication linesetc.Group C - Buildings for commonfacilities like testing laboratory, designcenter, training center, trade center/display center, ware housing facility/raw material depot, crèche, canteen,workers hostel, offices of serviceproviders, labour rest and recreationfacilities etc.Group D - Factory buildings forproduction purposes.vi)The export of textiles and clothingaggregated to US$ 22.42 billion in2009-10. The Government fixed thetarget for 2010-11 at US$ 25.48billion. So far during the period April-(e)Group E - Plant & machinery.The total Project Cost for the purpose ofthis Scheme includes the cost on accountof components of ITP, as listed under7

ministry of textilesGroups A, B, C and D above, provided theownership of the factory buildings vestswith the SPV. The SPV has, however,have the option of seeking financial supportfrom Government of India for componentsunder Groups B and C only, if factorybuildings are individually owned.Funding PatternThe total project cost, as indicated above,is funded through a mix of Equity/Grant -from the Ministry of Textiles, StateGovernment, State Industrial DevelopmentCorporation, Industry & ProjectManagement Consultant and Loan - fromBanks / Financial Institutions. TheGovernment of India's (GOI) support underthe Scheme by way of Grant or Equity islimited to 40% of the project cost subjectto a ceiling of Rs. 40 crore. However, GOIsupport will be provided @90% of theproject cost subject to a ceiling of Rs. 40crore for first two projects in the States ofArunachal Pradesh, Assam, Manipur,Meghalaya, Mizoram, Nagaland, Tripura,Sikkim and Jammu & Kashmir.Progress of implementationForty (40) textiles park projects havebeen Snactioned by the Ministry ofTextiles. State-wise sanction of project is- Andhra Pradesh (5), Gujarat (7),Karnataka (1), Madhya Pradesh (1),Maharashtra (9), Punjab (3) Rajasthan(5), Tamil Nadu (8), West Bengal (1) and.These Parks would have facilities forspinning, sizing, texturising, weaving,processing, apparels etc. The estimatedproject cost (for common infrastructureand common facilities) is Rs. 4193.65Crore, of which Government of Indiaassistance under the scheme would beRs. 1419.69 Crore. 2292 entrepreneurswill put up their units in these parkscovering an area of 4307.97 Acre. Theprojected investment in these parks is Rs.19,456.90 Crore and estimated annualproduction is Rs 33568.50 Crore. Afterthese parks are fully operational therewould be employment available for 7.50lakh persons (3 lakh direct & 4.50 indirect).So far assistance of Rs. 882.60 Crore hasbeen provided for execution of theseprojects. The promoters of these textilespark projects have brought in Rs.1000Crore (approx.) as their contribution. Fourprojects have been completed - Brandix& Pochampally Handloom Park Ltd.-Andhra Pradesh, Gujarat Eco Textile Park-Gujarat and Palladam Hi-Tech WeavingPark - Tamil Nadu and production hasbeen started in 24 out of 40 projects.DECENTRALIZEDSECTORPOWERLOOMThe decentralized Powerloom Sector playsa pivotal role in meeting the clothingneeds of the country. The powerloomindustry produces a wide variety of cloth,both grey as well as processed. Productionof cloth as well as generation ofemployment has been rapidly increasingin the powerloom sector. There are 22.69lakh powerlooms in the country as on31.10.2010 distributed over approximately5.11 lakh units. The powerloom sectorcontributes about 61% of the total clothproduction of the country, and providesemployment to about 56.64 lakh persons.More than 60% of the cloth meant forexport comes from the powerloom sector.Growth in the Powerloom SectorThe estimated number of powerlooms inthe decentralized sector in the country till31st October 2010 were 22,69,469.Product ProfileThe Powerloom Sector produces a varietyof fabrics for domestic as well as exportmarkets, such as shirting, suitings, dressmaterial, saree, dhoti, sheetings, towels,chaddar, furnishing, shawls, blankets,tweeds etc. made out of cotton, blended,synthetic, silk, wool etc.8

annual report 2010-11Technology LevelAs on 31st October 2010 there are 22.69lakh looms installed in the country. Mostof these looms are conventional, plain /ordinary looms of old vintage, withoutdated technology, very low speed,marked by low productivity andmanufacturing by and large defect proneand low value fabrics.COTTONCotton is one of the principal crops of thecountry and is the major raw material fordomestic textile industry. It providessustenance to million of farmers as alsothe workers involved in cotton industry,right from processing to trading of cotton.The Indian textile industry consumes adiverse range of fibres and yarn, but ispredominantly cotton based. The ratio ofthe use of cotton to man-made fibres andfilament yarns by the domestic industry isabout 56:94. Indian Textile Industry has anoverwhelming presence in the economiclife of the country. Apart from providing oneof the basic necessities of life, the textileindustry also plays a pivotal role throughits contribution to industrial output,employment generation and the exportearnings of the country. It contributes about14% to the industrial production, 4% to theGDP and 14.42% to the country's exportearnings. The textile sector is the secondlargest provider of employment afteragriculture. Hence, growth and all arounddevelopment of cotton and cotton industryhas a vital bearing on the overalldevelopment of the Indian economy.ACREAGE UNDER COTTONCULTIVATIONAcreage under cotton in India had beencontinuously increasing. The cottonacreage in 2009-10 (October-September)had reached a record level of 103.29 lakhhectares as against 94.06 lakh hectaresin previous year.Approximately 65% of Indian's cotton isproduced on rainfed areas and 35% onirrigated lands. Cotton farmers in Indiahave been showing increasing inclinationin bringing more and more areas under Btcultivation, which has helped them inincreasing their net earning through higheryields and lower cost on pesticidesconsumption. Acreage under Bt. Cotton inthe country is continuously increasingyear by year. During cotton season 2009-10, the acreage under Bt cultivation hadbeen around 81 lakh hectares as against68 lakh hectares in the previous year. Theshare of Bt. Cultivation in 2009-10constitute around 79% of the total acreageas against 73% during last year.INDIAN COTTON VARIETIESIndia is the only country to grow all fourspecies of cultivated cotton Gossypiumarboreum and herbaceum (Asian cotton),G.barbadense (Egyptian cotton) and G.hirsutum (American Upland cotton).Gossypium hirsutum represents 90% ofthe hybrid cotton production in India andall the current Bt cotton hybrids areG.hirsutuim. India produces large numberof cotton varieties and hybrids. Thoughthe number of varieties in cultivationexceeds seventy-five, 98% of theproduction is contributed by about 25varieties only.COTTON PRODUCTION ANDPRODUCTIVITYCotton is produced in India in three zonesviz., Northern zone comprising the Statesof Punjab, Haryana and Rajasthan, Centralzone comprising the States ofMaharashtra, Madhya Pradesh andGujarat and Southern zone comprisingthe States of Andhra Pradesh, Karnatakaand Tamil Nadu. Besides these nineStates, cotton cultivation has gainedmomentum in the eastern State of Orissa.With increased acreage and advent of Bt9

ministry of textilescultivation, the country has achieved cottonproduction of 5.02 million tons in cottonseason 2009-10 as against 4.93 milliontons in the previous year. The country hasonce again retained the position as thesecond largest cotton producing countryin the world, after China.The adverse agro-climatic conditions,insufficient rains in certain parts hadaffected the cotton yield during the year2009-10 and the same had been at 488kgs per hectare as against 524 kgs perhectare during cotton year 2008-09.The higher cotton production in the countryfor the fifth consecutive year has beendue to significant increase in acreageunder Bt cultivation.TECHNOLOGY MISSION ON COTTONThe Government of India commissionedthe Technology Mission on Cotton (TMC)on February 21, 2000. The Mission aimsto address the issues of raisingproductivity, improving quality and reducingthe cost of production and thus providethe much-needed competitive advantageto the textile industry along with ensuringattractive returns to the farmers. The XPlan scheme was operational upto31.03.2007. However, the Scheme MM IIIand IV of TMC has been further extendedin the 11th Five Year Plan for two yearsi.e. upto 31.3.2009 to accomplish targetand completion of the projects.The Mission comprises of four MiniMissions, which are jointly beingimplemented by the Ministries ofAgriculture and Textiles. MM-I relates toResearch and Development on Cottonand MM-II is Dissemination of technologyto farmers are being undertaken by theMinistry of Agriculture.Ministry of Textiles is the Nodal Agencyfor Mini Missions III & IV of TMC. MiniMission III aims to improve the quality ofcotton, particularly in respect of trash,contamination etc. by improving themarketing infrastructure in the marketyards for cotton by providing better facilitiesof cotton producing facilities by upgrading/modernizing the existing Ginning andPressing factories resulting in cottonprocessing with minimum or nocontamination to achieve better valueproducts like yarn, cloth, garments madeupsetc. Target as well as achievementmade under MM-III and MM-IV of TMC isgiven at table 1.3.Table 1.3Objectives Target Achievement(MM-III)Market Yards 250 242(MM-IV)Ginning & Pressingfactories 1011 885With the intervention of MM III and MM IV,the trash content and contamination hasreduced substantially which in turn hasenhanced the export of clean andcontamination free cotton bales to variouscountries branding the Indian Cotton inglobal arena and also benefiting the textilesmills in producing good quality cottontextile. The TMC has been a valuablevehicle to bring the ultimate stakeholdersof cotton textile industry in touch with therelevant advancement so as to increasefarm productively and in turn for themultiplier effect to work on the cottoneconomy as whole. The Mission is aneffort towards the collective cause for theentire cotton economy and cotton textileIndustry.Mini Mission III & IV of TMC havecompleted its tenure.SERICULTURE AND SILK INDUSTRYIndia continues to be the second largestproducer of silk in the World after China.10

annual report 2010-11Garmenting UnitIndia also has the unique distinction ofproducing all four commercially producedvarieties of silk in the world, i.e. Mulberry,Eri, Muga and Tassar. In 2009-10,Mulberry accounted for 82.9% (16322MT), Eri 12.5% (2460 MT), Tasar 4.1%(803 MT) and Muga 0.5% (105MT) of thetotal raw silk production in the country. In2009-10 production of mulberry raw silkincreased by about 4.6% after a declinein production in 2008-09. Production ofnon-mulberry raw silk, on the other hand,has been on a growth trajectory, recordingdouble-digit growth between 2005-06 and2009-10. Silk fabrics production alsoshowed a growth of over 4% in 2009-10compared to 2008-09.Sericulture continues to be an importantlabour-intensive and agro-based cottageindustry, providing gainful occupation toaround 6.8 million persons in rural andsemi-urban areas in India. Of these, asizeable number of workers belong to theeconomically weaker sections of societyand women. Post cocoon activities,including reeling, weaving and garmentingalso provide significant opportunity forinclusive growth for large segment ofpopulation in number of States.During the year 2008-09, total productionof all varieties of raw silk was 18,370 tonscompared to the production of 18,320tons by the end of 2007-08, indicating anincrease of 0.3%. However, during theyear 2009-10, total production of allvarieties of raw silk increased to 19,690tons registering an increase of 7.2%.In the first year of the XI Plan i.e., 2007-08, production of Mulberry raw silkdecreased by 1.7% (16245 MT) comparedto the previous year 2006-07 (16525 MT).Production of mulberry raw silk during2008-09 declined by 3.9% to 15,610 tonsmainly due to decline in the Mulberryplantation and production of Mulberry rawsilk in Karnataka and Andhra PradeshStates. Production of mulberry raw silk11

ministry of textilesregistered an increase of 4.6% during2009-10 to 16,322 tons compared to theyear 2008-09, indicating recovery inmulberry plantation.However, Vanya Raw Silk (Tasar, Eri andMuga raw silk) Production continues toshow better performance in the Xi planperiod. Vany Silk Production increased by6.4% (2075 MT) during the year 2007-08as compared to the production of 1950MT during the previous year 2006-07.Production of Tasar, Eri and Muga during2008-09, were 603 MT, 2038 MT & 119MT, respectively, corresponding to 428MT, 1530 MT & 117 MT produced duringthe year 2007-08, indicating an increaseof 40.9%, 33.2% & 1.7%, respectively.Production of Vanya silk (Tasar, Eri andMuga raw silk) during 2009-10, were 803MT, 2460 MT & 105 MT, respectively,corresponding to 603 MT, 2038 MT & 119MT produced during the year 2008-09,indicating an increase of 33.2% in Tasar,20.7% in Eri and a decrease of 11.8% inMuga.THE JUTE AND JUTE TEXTILESINDUSTRYThe Jute industry occupies an importantplace in the national economy of India. Itis one of the major industries in theeastern region, particularly in West Bengal.Jute, the golden fibre, meets all thestandards for 'safe' packaging in view ofbeing a natural, renewable, biodegradableand eco-friendly product. It is estimatedthat that the jute industry provides directemployment to 0.37 million workers inorganized mills and in diversified unitsincluding tertiary sector and allied activitiesand supports the livelihood of around 4.0million farm families. In addition there area large number of persons engaged in thetrade of jute.In the world perspective, India is themajor producer of both raw jute and juteproducts. Out of the total world productionof Jute, Kenaf and allied fibre of 3.0million tonnes in 2007-08, India produced1.8 million tonnes. In percentage termsIndia accounted for 60% of worldproduction in 2007-08. Global productionof jute and allied fibres is estimated tohave increased by 25% to 3.0 milliontonnes in 2007-08 compared to 2004-05season. Production in India has alsoincreased by 28% to 1.8 million tonnes in2007-08 over 2004-05.There are 79 composite jute mills in India.Out of the total 79 jute mills, 62 jute millsare located in West Bengal, 3 each inBihar and U.P., 7 in Andhra Pradesh and1 each in Assam, Orissa, Tripura andChattisgarh. Ownership- wise division is:-6 mills are under Government of India'sP.S.U., 1 mill (Tripura) is under StateGovernment, 2 mills (Assam & NewCentral) are in the co-operative sectorand 70 are privately owned mills.As on 01-01-2010 total number of loomsinstalled in the jute industry stood at48,260 consisting of 22,038 Hessianlooms, 24,093 sacking looms, 1,068 C.B.Clooms and others at 1,061. The installedspindles in jute mills other than 100%export oriented units were 731,408comprising 622,324 fine spindles and109,084 coarse spindles. As on 01-01-2010, installed spindles in 100% exportoriented units stood at 9,482 with finespindles at 6,974 and coarse spindles at2,508. The maximum installed capacity injute mills other than 100% export orientedunits (on the basis of 305 working daysper year) is estimated to be of 2.51 milliontonnes per annum.In exercise of the power conferred bySub-section(I) of section 3 of the JutePackaging Materials (Compulsory Use inPacking Commodities) Act, 1987, Ministryof Textiles issued Notification dated 27-08-2010 stipulating that 100% food grainand sugar to be compulsorily packed injute packaging material. The Notification12

annual report 2010-11came into effect from the date of itspublication and would remain valid upto30-06-2011.NATIONAL JUTE POLICYGovernment of India recognized thesignificance of jute in India's economywhich provides sustenance to more than4 million people including jute farmers,workmen, labourers and self employedartisans and weavers, especially in Easternand North-Eastern part of the country,where it is the mainstay of agro basedindustries. World over it has beenrecognized that jute and allied fibresoccupy a unique position as eco-friendly,bio-degradable, renewable natural fibreswith substantial value addition at eachstage of processing. Taking note of thenew opportunities presented by thechanging global environment of integrationin the development of natural fibres, thestrength and weaknesses of the jutesector in India and acknowledging thegrowing demand for diversified andinnovative jute product in the world market,GOI announced the "National Jute Policy- 2005" to redefine the goals andobjectives, focus on thrust areas andsharpen strategy in tune with the timeswith a view to give the jute industry inIndia a fresh impetus in all respect.The main objective of the policy is tofacilitate the jute sector in India to attainand sustain a pre-eminent global standingin the manufacture and export of juteproducts by enabling the jute industry tobuild world-class state-of-the artmanufacturing capabilities in conformitywith environmental standards. The policyseeks to strengthen R&D activities inagricultural practices with public-privatepartnership with a vision to ensureremunerative prices to millions of jutefarmers by enabling them to producebetter quality jute fibre for value addeddiversified jute products and enhance perhectare yield of raw jute.HANDLOOMSHandloom constitutes a timeless facet ofthe rich cultural heritage of India. As aneconomic activity and in terms ofemployment generation, the handloomsector occupies a place second only toagriculture. This sector is, however, isconfronted with various problems, suchas, obsolete technology, unorganizedproduction system, low productivity,inadequate working capital, conventionalproduct range, weak marketing linksleading to accumulation of stocks atvarious levels etc. The Government ofIndia has, therefore, been initiating variousdevelopmental and welfare measures tohelp the handloom sector to tide overthese problems to a great extent.PRODUCTION IN THE HANDLOOMSECTOR INCREASEDResultant to the developmental and welfaremeasures initiated by the Government ofIndia, the declining trend in production inthe handloom sector had been reusedand from the year 2004-05 there, in fact,has been a considerable growth inproduction in the sector. Production in thehandloom sector recorded a figure of6769 million sq. meters in the year 2009-10, which is about 23.23% over theproduction figure of 5493 million sqr.Meters recorded in the year 2003-04.475 HANDLOOM CLUSTERS, EACHCOVERING 300-500 HANDLOOM,TAKEN UP FOR DEVELOPMENTThe Integrated Handlooms DevelopmentScheme (IHDS) has been launched witha view to develop holistically andcomprehensively the weavers' clustersthroughout the country. Under this scheme,475 Handloom clusters have been takenup upto December, 2010 and financialassistance of Rs 101.59 crore has beenreleased to various Implementing agenciesfor various components like skill13

ministry of textilesupgradation, awareness programme,formation of consortium etc.16 LAKH WEAVERS COVERED UNDERTHE HEALTH INSURANCE SCHEMEThe Health Insurance Scheme provideshealth care facilities to the handloomweavers and their families. 16.11 lakhweavers are covered under the scheme.80% of the premium is paid by theGovernment of India while only 20% ispaid by the Weavers/State Government.During the Policy period (2010-11) thepremium has been drastically reduced by14% on an average throughout thecountry. 4.12 lakh weavers covered underthe Mahatma Gandhi Bunkar Bima Yojanaupto December, 2010. The scheme isimplemented through LIC of India.Scholarships91168 children of weavers have beengiven worth 8.27 crores (upto December,2010).SUPPLY OF YARN UNDER THE MILLGATE PRICE SCHEME715 yarn depots, covering all the handloomclusters, have been set up by the NationalHandloom Development Corporation(NHDC) to ensure steady and timelysupply of requisite yarn at Mill Gate Priceto the handloom weavers. NationalHandloom Development Corporation(NHDC) under the Mill Gate Price Schemesupplied 1081.21 lakh kgs. yarn valued atRs.987.23 core in the year 2009-10 ascompared to the figure of 855.10 lakh kgsvaluing Rs.793.77 core in the year 2008-09.SANT KABIR AWARDSANT KABIR AWARD for handloomweavers is being conferred every year,beginning from the year 2009. This awardis being given to such outstanding weaverswho have made valuable contribution inkeeping alive the handloom heritage andalso for their dedication in building uplinkages between the past, present andthe future through dissemination ofknowledge on traditional skills and designs.Each award consists of one mounted goldcoin, one shawl and a citation. In addition,financial assistance to the extent of Rs.6.00 lakh also is being given to each ofthe Sant Kabir Awardee to innovate andcreate 10 new products of high level ofexcellence, of high aesthetic value and ofhigh quality. 10 handloom weavers havebeen selected for Sant Kabir Award forthe year 2009.BRAND BUILDING THROUGHHANDLOOM MARKEmphasis has been laid on BrandDevelopment through Handloom Markduring the XI Five Year Plan. TheHandloom Mark was launched by theHon'ble Prime Minister of India on 28thJune, 2006. The Handloom Mark servesas a guarantee to the buyer that thehandloom product being purchased is agenuine handwoven product and notpowerloom or mill made. Handloom Markis being promoted and popularized throughadvertisements in newspapers andmagazines, electronic media, syndicatedarticles, fashion shows, films etc.The Textiles Committee is theImplementing agency for promotion ofHandloom Mark. As on 30th Nov. 2010,1.77 crore handloom mark labels havebeen sold to 7328 stakeholders. 747retails outlets are selling handloom goodswith handloom mark label.The new beneficiaries now included in theHandloom Mark scheme to get the benefitsare: Self Help Groups, Joint LiabilityGroups, Consortia, Producer companies,Handloom Weavers Groups or any otherlegal entity organization involved in14

annual report 2010-11Handloom activities and approved byDevelopment Commissioner forHandlooms with a one time registrationfee of Rs.500.Sale price of one label was brought downfrom Rs. 1.25 (at the time of launch) to60 paise. Application forms are nowavailable free of cost. The Registrationfee for individual weavers is reduced toRs. 25 (from Rs. 100) while for Masterweavers Rs. 500 (from Rs. 2000).HANDLOOM WEEKHandlooms constitute a living heritage ofour country reflecting the ethos of the artand craft traditions of our country whichgives employment to about 43 lakh people.It is the only environmental friendly fabricrequires continuous promotion, adoptionand protection. "Handloom Week" wascelebrated for the first time in the countryfrom 21st December to 27th December.During the Handloom week a number ofpromotional and awareness programmes,organisation of domestic marketing throughhandloom expos, fashion shows, publicitythrough newspapers, magazines, outdoorpublicity, through electronic media wereundertaken.During the current financial year 2010-11,Handloom Week was celebratedthroughout the country from 21st to 27thDecember, 2010. A series of fashion showsof handlooms designed by famousdesigners were held at Chennai, Delhi andRanchi. During the handloom week, anexhibition of handloom products on silkenthem (TANTAVI) and Buyer Seller Meetwas organized at Shilpi Haat, Rajiv GandhiHandicrafts Bhawan. Third NationalHandloom Census Report was releasedon 23rd December, 2010 and Photo IdentityCards were also issued to some handloomweavers by the Hon'ble Minister of Statefor Textiles. An exhibition-cum-sale ofHandloom Mark and Silk Mark products incollaboration with Silk Mark Organisationwas held at Indian Islamic Centre from24th to 26th Dec, 2010. For the first timeEssay Writing competition and Handloomapparel design competition was alsoconducted and winners were given cashaward and certificates.Increase in the number of marketingeventsThe target of marketing events for theyear 2010-11 has been increased to 650from 561 during the year 2009-10 to giveadequate opportunity for the weavers tomarket their products directly to theconsumers without the intervention of themiddlemen. As on December, 2010, 667marketing events have been sanctionedto various State Governments,Corporations, ACASH, NHDC and othereligible agencies.HANDICRAFTSThe Handicrafts Sector plays a significant& important role in the country's economy.It provides employment to a vast segmentof craft persons in rural & semi urban areasand generates substantial foreign exchangefor the country, while preserving its culturalheritage. Handicrafts have great potential,as they hold the key for sustaining not onlythe existing set of millions of artisansspread over length and breadth of thecountry, but also for the increasingly largenumber of new entrants in the crafts activity.Presently, handicrafts contributesubstantially to employment generation andexports. The Handicraft sector has,however, suffered due to its beingunorganized, with the additional constraintsof lack of education, low capital, poorexposure to new technologies, absence ofmarket intelligence, and a poor institutionalframework. In spite of these constraints,sector has witnessed a significant growthof 3% annually, and efforts are beingaugmented during the 11th Five Year planon the core issues for the development ofthe sector.15

ministry of textiles●Providing Infrastructural support forproduction & Exports.● Improve quality & productdiversification with more awarenessfor both stakeholders & consumer.● A greater role for NGO asimplementing partners andparticipation of private resources -both human and financial.In view of the 3% growth annually inHandicrafts sector, it is presumed that thetotal employment in the sector as at theend of 10th plan is 67.70 lakhs, which atthe beginning of the 10th plan was 60.16lakhs, showing an annual growth rate ofabout 3%, on the basis of this growth inthe sector it is expected this employmentto reach 80 lakhs by the end of 11th Plan.The plan expenditure during the periodalso witnessed a steady growth increasingfrom Rs.71.65 crores in 2002-03 toRs.286.00 crores in 2010-11. Theproduction during the period 2002-03 hasincreased from Rs.19,564.52 crores toRs.20221.58 crores during the year 2009-10. The exports during the periodincreased from Rs.10933.67 crores in theyear 2002-03 to Rs.11224.27 crores atthe end of the year 2009-10 registering acumulative increased 2.65%, The budgetoutlay for the year 2011-12 has beenproposed for Rs. 316.27 crores.Handicrafts activity being a State subject,its development and promotion are theprimary responsibility of every StateGovernment. However, the CentralGovernment is supplementing their effortsby implementing various developmentalschemes.SARDAR VALLABHBHAI PATELINTERNATIONAL SCHOOL OFTEXTILES AND MANAGEMENTSardar Vallabhbhai Patel InternationalSchool of Textiles and Management,Coimbatore, Tamil Nadu, was set upinitially as Sardar Vallabhbhai PatelInstitute of Textiles Management onDecember 24, 2002 as a national levelinstitute for Textile Management to preparethe Indian Textile Industry to face thechallenges of Post-MFA era and enable itto establish itself as a leader in the globaltextiles trade. Recognising the emergingareas in textiles, especially technicaltextiles, and the greater role the Institutehas to play for the benefit of the textilessector, the Institute was upgraded asSardar Vallabhbhai Patel InternationalSchool of Textiles and Management(SPVISTM) by the Hon'ble Minister ofTextiles, Shri Dayanidhi Maran on July 7,2010. (Upgradation of SVPITM toSVPISTM and Signing of MOU withIGNOU on July 7, 2010).SVIPSTM is a National Level AutonomousInstitution providing comprehensiveeducation, training, consultancy andresearch in textiles management. TheSchool has been set up by the Governmentof India, Ministry of Textiles and the TextilesIndustry, registered under the Tamil NaduSocieties Registration Act, 1975 to cater tothe long-felt need for management coursesspecialising in textiles, including researchin textiles management.NATIONAL INSTITUTE OF FASHIONTECHNOLOGY (NIFT)The National Institute of FashionTechnology was set up in 1986 as anautonomous Society in collaboration withthe Fashion Technology (FIT), New York,to train professionals to meet therequirements of the textiles industry. Theinstitute has pioneered the evolution offashion business education across thecountry through its network of fifteencentres at New Delhi, Bengaluru, Chennai,Gandhinagar, Hyderabad, Kolkata,Mumbai, Rae Bareli, Patna, Bhopal,Shillong, Kangra, Kannur, Jodhpur andBhubaneswar.16

annual report 2010-11NIFT besides conducting regularprofessional undergraduate andpostgraduate programmes in Design,Management and Technology, also offersshort duration part-time courses under itsContinuing Education (CE) Programmes.A Specialty Centre will be opened atCoimbatore very shortly.The National Institute of FashionTechnology Act, 2006 came into force onJuly 14, 2006 and came into effect from1st April, 2007. The Act provides statutorystatus to the Institute and formallyrecognizes its leadership in fashiontechnology sector, and empowers NIFT toaward degrees to its students. NIFT is thefirst Institute in the world to award degreesin fashion education.ACTIVITIES RELATED TOPROGRESSIVE USE OF OFFICIALLANGUAGEHindi is the Official Language of the Unionof India and the policy of the Governmentaims at progressive use of Hindi in officialwork. Effective steps have been takenduring the year in the M/o Textiles toensure compliance with the OfficialLanguage Policy of the Government;implementation of the annual programmeand compliance with the various orders ofthe Government of India on therecommendations of the Committee ofParliament on Official Language.Compliance with the provisions of theOfficial Language Act, 1963All documents such as resolutions, generalorders, rules etc., under Section 3(3) of theOfficial Language Act and all papers laid onthe Table of both the Houses of Parliamentwere issued bilingually, i.e. in Hindi andEnglish. General orders meant fordepartmental use were issued in Hindi only.Replies to letters in HindiAll letters received in Hindi were repliedto in Hindi.Sections specified for working in HindiThe 12 Sections of the Ministry whichhave been specified for doing hundredper cent work in Hindi, are workingsatisfactorily.Monitoring and inspectionsIn order to ensure compliance with theOfficial Language Policy, monitoring isdone through reviewing the quarterlyprogress reports. During the year, apartfrom the Sections of the Ministry, fivehead offices and three sub-offices oforganizations under the control of theMinistry were inspected to ensureprogressive use of Hindi and compliancewith the Official Language policy.Training of OfficialsAll the clerks / stenographers in theMinistry have already been trained inHindi typing and Hindi stenography.Use of Mechanical aidsAs per the provisions of the OfficialLanguage Act, facilities have beenprovided on all the computers in theMinistry, to work in Hindi.CommitteesThe Hindi Salahar Samitee has beenconstituted in the Ministry of Textilesunder the Chairmanship of Minister ofTextiles. The first meeting of the committeewas held on 9th November, 2010.The Departmental Official LanguageImplementation Committee in the M/oTextiles has been constituted under theChairmanship of the Joint Secretary (In-Charge Hindi). The Quarterly meetings ofthe Committee were organized andimportant decisions were taken forprogressive use of Hindi in official work.Necessary follow-up action was taken forcompliance of these decisions.17

ministry of textilesHindi FortnightHindi Fortnight was celebrated during 1-14 September, 2010 in the Ministry.Various competitions like Hindi Essay,Hindi Noting & Drafting, Hindi Questionsand Answers, Story Writing, Hindi Debate,Hindi Poetry Recitation, Dictation, HindiGyan and Hindi Typing were organized toencourage and motivate the employeesfor doing official work in Hindi. A largenumber of officers and staff participated inthese events with enthusiasm. Appealsfrom the Hon'ble Home Minister, Ministerof Textiles, Minister of State for Textilesand Secretary (Textiles) were circulatedon the occasion of Hindi Diwas in theM/o Textiles as well as in its Attached /Subordinate offices and PSUs etc. forinformation and compliance.18

annual report 2010-11CHAPTER IIFUNCTIONS &ORGANISATIONAL SET-UP19

20ministry of textiles

annual report 2010-11CHAPTER IIFUNCTIONS & ORGANISATIONAL SET-UPThe Ministry of Textiles is responsiblefor policy formulation, planning,development, export promotion andtrade regulation of the Textiles Industry.This includes all natural and manmadecellulosic fibres that go into the making oftextiles, clothing, and handicrafts. Thematters relating to non-cellulosic syntheticfibres and filament yarns, such as nylon,polyster acrylic, and poly-propylene areunder the administrative control of Ministryof Chemicals and Petrochemicals.TheMinistry maintains an interactive website:www.texmin.nic.in. The Ministry is headedby a Secretary, who is assisted in thedischarge of her duties by four JointSecretaries, an Economic Advisor, andthe Development Commissioners forHandlooms and Handicrafts, the TextilesCommissioner and the Jute Commissioner.VISIONTo build state of the art productioncapacities and achieve a pre-eminentglobal standing in manufacture and exportof all types of textiles including technicaltextiles, jute, silk and wool and develop avibrant handloom and handicraft sectorfor sustainable economic developmentand promoting and preserving the age oldcultural heritage in these sectors.MISSION●To promote planned and harmoniousgrowth of textiles by making availableadequate fibres to all sectors.● To promote technologicalupgradation for all types of textilesincluding technical textiles, jute, silkand wool.●To promote skills of all textile workers,handloom weavers and handicraftsartisans, creation of new employmentopportunities and development of newdesigns to make these sectorseconomically sustainable.● To ensure proper workingenvironment and easy access tohealth care facilities and insurancecover to weavers and artisans toachieve better quality of life.●To promote exports of all types oftextiles and handicrafts and increaseIndia's share of world exports inthese sectors.OBJECTIVES●●●●To make available adequate rawmaterial to all sectors of TextilesIndustry.To augment the production of fabricsat reasonable prices from theorganised and decentralised sectors.To lay down guidelines for a plannedand harmonious growth of varioussectors with special emphasis on thedevelopment of the handlooms sectordue to its large employment potential.To monitor the techno-economicstatus of the industry and to providethe requisite policy framework formoderisation and rehabilitation.FUNCTIONAL AREAS●●The Textiles Policy & CoordinationThe Man-made Fibre/Filament YarnIndustry21

ministry of textiles●●●●●●●●●●●The Cotton Textiles IndustryThe Jute IndustryThe Sericulture and Silk Textiles,IndustryThe Wool & Woollen Textiles IndustryThe Decentralized PowerloomsSectorThe Export PromotionHandicraftsHandloomsThe Planning & Economic AnalysisThe Integrated Finance MattersThe Information Technology.1. ATTACHED OFFICES(i)The Office of the DevelopmentCommissioner for Handlooms,New DelhiThe Office is headed by theDevelopment Commissioner forHandlooms. It administers variousschemes for the promotion anddevelopment of the handlooms sectorand supplements to the efforts ofState Governments, Societies, NGOs,etc. Its subordinate organisationsinclude Weavers' Services Centres(WSCs), the Indian Institues ofHandloom Technology (IIHT) and theEnforcement Machinery for theimplementation of the Handlooms(Reservation of Articles forProduction) Act, 1985.(ii) The Office of the DevelopmentCommissioner for Handicrafts,New DelhiThe office is headed by theDevelopment Commissioner forHandicrafts. It administers variousschemes and functions to promotethe development and export ofhandicrafts, and supplements theefforts of State Governments byimplementing various developmentalschemes. It has six regional officesat Mumbai, Kolkata, Lucknow,Chennai, Guwahati, and New Delhi.2. SUBORDINATE OFFICES(i) Office of the TextilesCommissioner, MumbaiThe office of the TextileCommissioner (TXC) has itsheadquarters at Mumbai and eightregional offices at Amritsar, Noida,Kanpur, Kolkata, Bengluru,Coimbatore, Navi Mumbai andAhmedabad. The TextilesCommissioner acts as the principaltechnical advisor to the Ministry. TheOffice of Textiles Commissionercarries out techno-economic surveysand advises the government on thegeneral economic health of thetextiles industry. The developmentalactivities of the Office of the TextilesCommissioner centre around planningfor the growth and development ofthe textiles sector. Of the forty fourPowerloom Service Centres (PSCs)functioning throughtout the country,fourteen are functioning under theadministrative control of the TextilesCommissioner. The office of TXCalso coordinates and providesguidance to the remaining thirtyPowerloom Service Centres, beingrun by the various Textiles ResearchAssociations and State GovernmentAgencies. The Office also implementsand monitors various developmentaland promotional schemes like theTechnology Upgradation FundScheme (TUFS) for the modernizationof the Textiles and Jute industry,20% and 15% Margin Money SubsidySchemes for decentralizedPowerloom Sectors, the TextilesWorkers' Rehabilitation Fund Scheme22

annual report 2010-11(ii)(TWRFS), and the TechnologyMission on Cotton (TMC), etc.Office of the Jute Commissioner,KolkataThis office is headed by the JuteCommissioner and is entrusted withthe responsibility of implementing thepolicies of the Government in theJute sector. The Jute Commissioneracts as the principal technical adviserto the Government of India, andgives technical advice to the Ministryon matters relating to the jute industry,including the jute machinery industry.3. ADVISORY BOARDS(i)(ii)All India Handicrafts BoardThe All India Handicrafts Board is anadvisory body under the chairmanshipof the Minister of Textiles, with theDevelopment Commissioner(Handicrafts) as the MemberSecretary. It gives its advice to theGovernment on matters pertaining tothe development of thehandicrafts sector.All India Powerlooms BoardThe All India Powerlooms Board isan advisory body under thechairmanship of the Minister ofTextiles, with the TextilesCommissioner as the Member-Secretary. It has representatives ofthe Central and State Governments,and powerlooms federations/associations as its members. Thefunctions of the Board includeadvising the Government on mattersconcerning growth and developmentof the decentralized powerloomssector.(iii) All India Handlooms BoardThe Board is an advisory body underthe chairmanship of Minister ofTextiles, with the developmentCommissioner (Handlooms) as theMember-Secretary. The main functionis to advise the Government onvarious aspects of development ofthe handlooms sector.(iv) The Cotton Advisory Board(v)The Cotton Advisory Board is headedby the Textiles Commissioner and isa representative body of variousinterest groups like GovernmentAgencies, Cotton Growers, TextilesIndustry and Trade. It advises theGovernment generally on matterspertaining to production, consumptionand marketing of cotton and alsoprovides a forum for liaison. TheBoard was reconstituted on 5th May,2010 for a period of two years. Atpresent the Board has sixty ninemembers, including official and nonofficialmembers.The Cotton Yarn Advisory BoardThe Cotton Yarn Advisory Board,headed by the Textiles Commissionerwas constituted on 13th September,2010 up to 31st March, 2012 untilfurther orders or whichever is earlier.It is a representative body of variousinterest groups like governmentagencies, textiles industry and trade.Its main functions are to monitordomestic and international prices ofcotton yarn, suggest measures forincreasing the availability of cottonyarn, monitor import and export ofyarn and prepare the Cotton YarnBalance Sheet.(vi) Jute Advisory BoardThe Jute Advisory Board headed bythe Jute Commissioner advises theGovernment on matters pertaining tojute falling within the purview of Jute23

ministry of textilesand Jute Textiles Control Order 2002,including production estimates of juteand mesta. New Board has beenreconstituted on 23.04.2010.(vii) Coordination Council of TRAsThe Coordination Council for theTextiles Research Associations hasbeen constituted under thechairmanship of Secretary (Textiles)to coordinate the activities of all theTextiles Research Associations(TRAs), with a view to promotelinkages for the development of theTextiles industry and for achievementof national priorities. The functions ofthe Councils are to assess theongoing programmes of researchassociations, identify programmesand priorities keeping in view theoverall needs of the industry,including the decentralized sector. Itensures appropriate coordinationamongst different researchassociations, conduct periodicalevaluation of the work carried out incooperative research, and considerssystemizing research programmesand funding arrangements so thatfunding is in conformity with planpriorities, and all other mattersconnected with the effectivefunctioning of these ResearchAssociations.4. REGISTERED SOCIETIES(i)Central Wool Development Board(CWDB), JodhpurThe Central Wool Development Board(CWDB), Jodhpur was constituted bythe Government of India, Ministry ofTextiles in 1987 under the RajasthanSocieties Registration Act, 1958 topromote the growth and overalldevelopment of wool and the woolentextiles industry in the Country. TheBoard administers various projects(ii)and programmes through the StateGovernments and Non GovernmentOrganisations (NGOs). The Boardwas reconstituted on November 16,2010 for a period of two years.Sardar Vallabhbhai Patel Instituteof Textiles Management (SVPITM),CoimbatoreSVPITM was set-up on December24, 2002, as a premier National levelInstitute for Textiles Management atCoimbatore, Tamil Nadu, to preparethe Indian Textiles Industry to facethe challenges of post-MFA era andestablish it as a leader in the globaltextiles trade. The Board of theinstitute was reconstituted on April12,2010, for a period of three years.5. STATUTORY BODIES(i)National Jute BoardThe National Jute Board is a newbody under Ministry of Textiles, whichis the apex organisation forcoordinating and synergising thefunctions of all the Organisations anda centre point for all jute relatedactivities. The National Jute Board isalso responsible for implementationof the Jute Technology Mission in acentralized and coordinated mannerand helps in speedily resolving theills of Jute Industry in the matters ofdiversification and marketing of JuteProducts as well as modernisation ofJute Mills. National Jute Board havea membership of 34 persons, ofwhich 15 will be Governmentrepresentatives from CentralGovernment and State Governmentshaving stake in production andpromotion of Jute Products and 19Members from private jute relatedsector i.e. jute farmers, growers,research association, small andmedium enterprises as well as there24

annual report 2010-11(ii)Members of Parliament. TheHeadquarters of the National JuteBoard is in Kolkatta, with regionalrepresentations in Jute growing areasand in other areas for marketing ofthe Jute Products.The Central Silk Board (CSB),BangaloreThe Central Silk Board is a statutorybody, and it was constituted by anAct of Parliament (LXI of 1948), withthe objective of promoting the growthand development of Sericulture inthe country. These programmes areprimarily formulated and implementedby the State Sericulture/TextilesDepartments. However, the CentralSilk Board supplements the efforts ofthe States by providing necessarysupport by way ofresearch anddevelopment, and extension andtraining through its countrywidenetwork of R&D and extensioncentres. Besides, the Central SilkBoard organises the development,production and supply of qualitysilkworm seedsetc., and developmentand propagation of feed plants.Central Silk Board also implementsvarious Sericulture projects directly,as well as, jointly with the Statesericulture Departments and otherexternal agencies.(iv) Textiles Committee, MumbaiThe Textiles Committee wasestablished on July, 1964 under theTextiles Committee Act, 1963, withthe objective of ensuring the qualityof textiles from both the internal andexport markets. Its functions includethe promotion of textiles, textilesexports, research in technical andeconomic fields, establishingstandards for textiles and textilesmachinery, setting up of laboratories,and data collection located throughout(v)the country. The Textiles Committee,in addition to it's headquarters atMumbai, has thirty Offices to assistthe industry and trade in testing theirproducts. The Committee has thefollowing functional divisions at itsHeadquarters in Mumbai : (1) TextilesInspectorate Wing (2) TextilesLaboratory Wing (3) Market ResearchWing (4) ISO Wing (5) Vigilance Cell(6) Accounts Wing, and (7)Administration and CoordinationWing. The Committee has beenreconstituted on October 14, 2009,for a period of two years. It consistsof twenty five members, includingofficial and non-official members.Commissioner of Payments (COP),New DelhiThe Office of Commissioner ofPayments with its headquarters atDelhi, is a statutory authority, set upunder Section 17(1) of the SickTextilesUndertakings(Nationalisation) Act, 1974, Section15(1) of the Swadeshi Cotton MillsCompany Ltd. (Acquisition andTransfer of Undertakings) Act, 1986,and also under Section 17(1) of theTextilesUndertakings(Nationalisation) Act, 1995. TheCommissioner of Payments disbursesthe amount placed at his disposal tothe owners of each textilesundertaking nationalized by theaforesaid three Acts.(vi) The National Institute of FashionTechnology (NIFT), New DelhiThe National Institute of FashionTechnology was set up in 1986 asan autonomous Society incollaboration with the Fashion Instituteof Technology (FIT), New York, toprepare and train professionals tomeet the requirements of the textilesindustry. The Government brought25

ministry of textilesinto force the National Institute ofFashion Technology Act, 2006 onJuly 14, 2006. This Act providesstatutory status to the Institute, andformally recognizes its leadership inthe fashion technology sector. TheAct empowers NIFT to award degreesto its students from 2007 onwards.The President of India is the Visitorof the Institute. The Institute haspioneered the evolution of the fashionbusiness education across thecountry through centres at New Delhi,Bangalore, Chennai, Gandhinagar,Hyderabad, Kolkata, Mumbai,Kannur, Patna, Shillong, Kangra,Bhopal, Rae Bareli, Jodhpur andBhuvneshwar.6. THE RIGHT TO INFORMATIONACT, 2005To promote openness, transparency andaccountability in administration and providethe right to every citizen to secure accessto information under the control of PublicAuthorities, the Right to Information Acthas come into effect for implementationw.e.f. October 12, 2005. The Act marksthe beginning of a new era in the approachof the Government where openness shallnow be the rule and secrecy an exception.Every Citizen can obtain the informationthey desire by submission of an applicationand by paying a nominal charge as anapplication fee, to the Central PublicInformation Officer designated by thepublic authority for the purpose under theAct. This Ministry has designated officersas Central Public Information Officers(CPIOs) and Appellate Authorities. TheMinistry of Textiles, as well as, its Attached& Subordinate Offices, Autonomous &Statutory Bodies and Public SectorUndertakings have completed the actionfor setting up of the necessaryinfrastructure for implementation of theAct. Ministry monitors the implementationof the Act by the organizations under theMinistry of Textiles.7. PUBLIC GRIEVANCE REDRESSALMACHINERY IN THE MINISTRYThe Department of Administrative Reformsand Public Grievances issues instructionsand guidelines to establish, activate, andstrengthen the Centralized PublicGrievances Redressal and monitoringsystem (CPGRM) in the Ministries,Departments, and other Organisations ofthe Government of India. In pursuance ofthese instructions/guidelines, onlineCPGRAMS has been introduced in theMinistry. Similar arrangements are alsobeing made in each of the attached/subordinate offices of the Ministry ofTextiles. A Grievance Committee underthe Chairmanship of a Joint Secretary hasbeen formed to monitor the functioning ofCPGRM in the Ministry, as well as inattached and subordinate organizations. Ifneed be, the files relating to pendinggrievances are called or and cases aresettled by the Committee in its meetings.The Ministry have taken, the followingsteps to strengthen the CPGRMS:●●●●●Time Norms for the disposal ofgrievance cases have been fixed,and the same have been circulatedand displayed at prominent places ofthe building:✓ Acknowledgement of thecomplainant within seven days;✓Final disposal within two months.Publicity about the CPGRM in themedia.The Citizens' Charter has beenformulated and hosted on theWebsite.Details about the CPGRM have alsobeen placed on the Website of theMinistry (texmin.nic.in).An Information & Facilitation Counterhas been established at Gate No.14Udyog Bhawan, New Delhi, to make26

annual report 2010-11●information readily available tocustomers/consumers.A complaint box has been kept at theInformation & Facilitation Counter.The list of Officers handling Public/StaffGrievances in the Ministry of Textiles andits attached/Subordinate Offices is givenat table 2.1 and is also available at thewebsite of the Ministry.The list of organisations under the Ministryof Textiles is at table 2.2.Table 2.1List of Officers handling public/staff grievance in the Ministry of Textiles and itsAttached/Subordinate OfficerS.No. OfficesPublic/Staff Grievances Officer1. Ministry of Textiles Shri Sujit GulatiJoint Secretary/Director (PG)Room No. 232, Udyog BhawanNew Delhi-110011Phone: 230631922. Office of the Development Smt. Alka AroraCommissioner (Handicraft) Addl. Development Commissioner (Handicrafts)West Block-7, R.K. Puram, New DelhiPhone: 011-26191569Email: dchejs@nic.in3. Office of the Development Shri Sohan Kumar JhaCommissioner (Handloom) Addl. Development Commissioner (Handloom)Office of DC (Handloom)Udyog Bhawan, New Delhi-110011Phone: 011-230622384. Office of the Textile Shri S. BalarajuCommissionerJoint Textile CommissionerNew CGO Building, 48 Marine Line, Mumbai-400020Phone: 022-220010505. Office of the Jute Shri Binod KispottaCommissionerJute CommissionerC.G.O. Complex, 3rd MSO Building4th Floor, DF Block, Salt Lake CityKolkata-700064Phone: 033-23376973/7527

ministry of textilesTable 2.2LIST OF ORGANISATIONS UNDER THE MINISTRY OF TEXTILES(EXCEPT ATTACHED/SUBORDINATE OFFICES)Public sector Textiles Export Advisory Registered StatutoryUndertakings Research Promotion Body Society BodiesAssociations Councils1. Birds Jute 1. Ahmedabad 1. Apparel Export All India 1. Central Wool 1. Central SilkExport Ltd. Textiles Industry's Promotion Council Handloom Development Board(BJEL), Research (AEPC), New Delhi Board Board (CWDC), (CSB),Kolkata Association (ATIRA), Jodhpur BangaloreAhmedabad2. British India 2. Bombay Textiles 2. Carpet Export All India 2. Sardar Vallabhai 2.CommissionserCorporation Research Promotion Council Handicrafts Patel Institute of of Payments(BIC) along with Association (BTRA), (CEPC), Board Textiles (COP),its subsidiaries Mumbai New Delhi Management New Delhi(SVPITM),Coimbatore3. The Central 3. Indian Jute 3. Cotton Textiles Export All India 3. NationalCottage Industries Industries Research Promotion Council Powerloom Jute Board,Corporation of Association (TEXPROCIL), Board KolkataIndia Ltd. (CCIC) (IJIRA), Kolkata MumbaiNew Delhi4. The Cotton 4. Man-made Textiles 4. Export Promotion Coordination 4. TextilesCorporation of Research Association Council for Handicrafts Council for Committee,India Ltd. (CCI), (MANTRA), (EPCH), Textiles MumbaiMumbai Surat New Delhi ResearchAssociations5. The Handicrafts 5. Northern India 5. Handlooms Export Cotton Advisory 5. Nationaland Handlooms Textiles Research Promotion Council Board Institute ofExports Association (HEPC), Chennai FashionCorporation of (NITRA), TechnologyIndia Ltd. Gaziabad (NIFT),(HHEC),New DelhiNew Delhi6. The Jute 6. South India Textiles 6. Indian Silk Export Jute AdvisoryCorporation of Research Association Promotion Council BoardIndia Ltd. (JCI), (SITRA), Coimbatore (ISEPC), MumbaiKolkata7. National 7. Synthetic and Art Silk 7. Powerloom Cotton YarnHandlooms Mills Research Development & Advisory BoardDevelopment Association Export PromotionCorporation Ltd. (SASMIRA), Council (PEDEXCIL),(NHDC), Mumbai MumbaiLucknow8. National Jute 8. Wool Research 8. Synthetic and RayonManufactures Association Textiles ExportCorporation (WRA), Thane Promotion Council(NJMC),(SRTEDC),KolkataMumbai9. National 9. Wool and WoolenTextilesExport PromotionCorporationCouncil (WWEPC),Ltd. (NTC),New DelhiNew Delhi10. Wool IndustryExport PromotionCouncil (WOOLTEXPRO), Mumbai28

annual report 2010-11CHAPTER IIITHE ORGANISED TEXTILESMILL INDUSTRY29

30ministry of textiles

annual report 2010-11CHAPTER IIITHE ORGANISED TEXTILES MILL INDUSTRYThe Cotton / Man-made fibre textileindustry is the largest organizedindustry in the country in terms ofemployment (nearly 1 million workers)and number of units. Besides, there area large number of subsidiary industriesdependent on this sector, such as thosemanufacturing machinery, accessories,stores, ancillaries, dyes & chemicals. Ason 30.9.2010, there were 1896 cotton/man-made fibre textile mills (non-SSI) inthe country with an installed capacity of38.53 million spindles 5,18,000 rotors and57,000 looms.Textile production covering man-madefibre, filament yarn and spun yarn isshowing increasing trend. Man-made fibreproduction recorded a marginal fall andfilament yarn production recorded a slightincrease of about 1.89% during 2010-11(April - October 2010). The production ofspun yarn during April-Oct (2010-11) isshowing an increasing trend by 9.17%.The production of cotton yarn during2010-11 April-Oct (2010-11) recorded anincrease of 11% (Provisional). Blendedand 100% Non-cotton yarn productionrecorded an increase of about 4% during2010-11.Cloth production by mill sector showedmarginal increase of 3% during April-Oct.(2010-11) (provisional). During the sameperiod cloth production by power loomand hosiery sector showed an increase of1.7% and 5.30% respectively. Howeverthe cloth production in handloom sectorshowed a decrease of 4.7%.CAPACITYThere were 1896 cotton/man-made fibretextile mills (non-SSI) in the country withan installed capacity of 38.53 millionspindles 5,18,000 rotors and 57,000 loomsas on 30.9.2010.CAPACITY UTILISATION IN THE MILLSECTORThe capacity utilization in the spinningsector of the organized textile mill industryranged between 80 to 90% while thecapacity utilization in the weaving sectorof the organized textile mill industry rangedbetween 41 to 62%.PRODUCTION OF SPUN YARNIt would be relevant to mention that thecontribution from the SSI sector has beenabout 10% in the total spun yarn production.A statement showing the production ofspun yarn (including SSI units) during thelast few years is given at table 3.1.SICKNESS/CLOSURE OF TEXTILEMILLSThe incidence of sickness and closure inthe organized textiles industry is a matterof concern. Textiles being the oldest andthe largest industry of the country, it is butnatural that at any given point of timesome textiles units could be lying sick /closed. One main reason of sickness isstructural transformation resulting in thecomposite units in the organized sectorlosing ground to power looms in thedecentralised sector, on account of thelatter's greater cost effectiveness. Othercauses of sickness/ closure of the industryinclude low productivity due to lack ofmodernisation, stagnation in demand andinability of some units to expand in theexport market, increase in the cost ofinputs, difficulties in getting timely and31

ministry of textilesTable 3.1(In Mn. Kg.)Year Cotton Yarn Blended Yarn and 100% non-cotton yarn Total Spun Yarn2005-06 2521 937 34582006-07 2824 989 38132007-08 2948 1055 40032008-09 2896 1016 39122009-10 3079 1114 41932010-11(UptoOct. 10 (P) 1952 669 2621P - Provisionaladequate working capital and theavailability of power, labour disputes,excess capacity, failure to diversify inemerging areas, poor management, etc.The details of closure of cotton/man-madefibre textile mills is given at table 3.2.PRODUCTION OF CLOTH &EMPLOYMENT GENERATIONThe weaving capacity in the organizedsector, along with the number of compositetextile mills, however, has stagnated,because the past Government policypermitted only marginal expansion inweaving capacity in the organized millsector. Even after the removal ofrestrictions in the Textile Policy of 1985,weaving capacity has been consistentlydeclining. This is attributable to thestructural transformation in the industry,leading to the de-linking of weaving fromspinning and the emergence of thedecentralized powerloom sector. In theorganized sector the loom age capacityhas declined from 1.23 lakh in March,2000 to 0.86 lakh in March, 2005, and to0.56 lakh in March 2008 and the samemarginally increased to 0.57 lakh in 2009and there is no change in 2010.Over the years, production of cloth in themill sector is showing a steady growthsince 2003-04 onwards and was 1961million sq. meter in 2009-10. The totalproduction of cloth by all sectors i.e. mill,powerloom, handloom, hosiery and khadi,wool and silk has shown an upward trendin recent years. The Cloth production in2009-10 is 59809 mn. sq. mtrs.(Provisional). The cloth production duringApril-Oct (2010-11) showed an increasingtrend by 1.90% (provisional).The production of cloth in different sectorsof textiles is given at table 3.3.Table 3.2Year No. of Spinning Mills No. of composite Mills Total2001-02 295 126 4212002-03 349 134 4832003-04 374 94 4682004-05 376 99 4752005-06 387 96 4832006-07 380 87 4672007-08 318 63 3812008-09 339 64 4032009-10 365 68 4332010-11(As on31.8.2010) 380 70 45032

annual report 2010-11Table 3.3PRODUCTION OF CLOTH IN DIFFERENT SECTORSMILL SECTOR(in million sq meter)Item 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11(P)(April-Oct)Cotton 969 1072 1192 1305 1249 1259 1419 808Blended 253 243 252 330 422 426 475 272100% Non Cotton 212 211 212 111 110 111 67 49Total 1434 1526 1656 1746 1781 1796 1961 1130HANDLOOMS SECTORCotton 4519 4792 5236 5717 6076 5840 3448 3244Blended 117 146 145 99 123 118 70 77100% Non Cotton 857 784 727 720 748 719 424 449Total 5493 5722 6108 6536 6947 6677 3942 3770DECENTRALISED POWERLOOMS SECTORCotton 6370 7361 8821 9647 9923 9621 6252 6564Blended 4688 4526 4632 5025 4918 4764 3096 3317100% Non Cotton 15889 16438 17173 18207 19884 19263 12519 12186Total 26947 28325 30626 32879 34725 33648 21867 22067DECENTRALISED HOSIERY SECTORCotton 6182 7430 8624 9569 9948 10178 6556 6988Blended 1010 1117 1269 1428 1425 1458 939 1012100% Non Cotton 655 565 525 507 431 441 284 362Total 7847 9112 10418 11504 11804 12077 7779 8362ALL SECTORSCotton 18040 20655 23873 26238 27196 26898 16982 17604Blended 6068 6032 6298 6882 6888 6766 4350 4679100% Non Cotton 17613 17998 18637 19545 21173 20534 13291 13046Total 41721 44685 48808 52665 55257 54198 34623 35329Khadi, Wool & Silk 662 693 769 724 768 768 448 476Grand Total 42383 45378 49577 53389 56025 54966 35071 35805P = Provisional33

ministry of textilesThe employment generation in cotton/man-made fibre/Yarn Textile Mill Sector(including SSI spinning and excludingweaving units) textile industry projectedfor the terminal year of the 11th plan is1.40 million numbers.TECHNOLOGY UPGRADATION FUNDSCHEME (TUFS)The Technology Up gradation FundScheme (TUFS) was commissioned on01.04.1999 initially for a period of 5years with a view to facilitate themodernization and upgradation of thetextiles industry by providing credit atreduced rates to the entrepreneurs bothin the organized and the unorganizedsector. The Scheme, which has nowbeen extended up to 31.03.2012, hasbeen fine-tuned to catapult the rapidinvestments in the targeted segments ofthe textile industry. TUFS has helped inthe transition from a quantitativelyrestricted textiles trade to market drivenglobal merchandise. It has infused aninvestment climate in the textiles sectorand in its operational life span haspropelled investment of more thanRs.2,07,747 crores upto 30.6.2010.The garmenting, technical textiles andprocessing segments of the textilesindustry have great potential to add valueand generate employment. The WorkingGroup on Textiles and Jute Industry forthe XI Five Year Plan, constituted by thePlanning Commission, has set a growthrate of 16% for the sector, projecting aninvestment of Rs. 150,600 crore in thePlan period. In this context, it was decidedto extend the Technology Up gradationFund Scheme during the Eleventh Planperiod, and to reframe some of thefinancial and operational parameters ofthe Scheme in respect of new loans.(Initially, the Scheme was upto 31.03.2004.On the overwhelming response of theindustry it was extended till 31.03.2007.)In the Tenth Plan Period (2002-07),Rs.1,270 crore had been earmarked forthe scheme. However, the net utilizationof funds under this Scheme wasRs.2044.17 crore.The modified techno-financial parametersof the Scheme will infuse capitalinvestment into the textiles sector, andhelp it capitalize on the vibrant andexpanding global and domestic markets,through technology up gradation, costeffectiveness, quality production, efficiencyand global competitiveness. It is estimatedthat this will ensure a growth rate of 16%in the sector. The modified structure ofTUFS focuses on additional capacitybuilding, better adoption of technology,and provides for a higher level ofassistance to segments that have alarger potential for growth, likegarmenting, technical textiles, andprocessing.The Scheme covers spinning, cottonginning & pressing, silk, reeling & twistingwool, scouring & combing, syntheticfilament yarn texturising, crimping andtwisting, manufacturing of viscose filamentyarn (VFY) / viscose staple fibre (VSF),weaving/knitting including non-wovens andtechnical textiles, garments, made-upmanufacturing, processing of fibres, yarns,fabrics, garments and made-ups, and thejute sector.PROGRESSThe progress of TUFS is steadily goingup which is evident from the data givenat table 3.4.PROGRESS OF (20% CLCS)20% Credit Linked Capital SubsidyScheme under CLCS-TUFS for powerloom units had been launched on 6thNovember 2003. Under the scheme, Rs.202.32 crores has been disbursed to2755 cases as on 27.11.2009 as perdetails given at table 3.5.34

annual report 2010-11Table 3.4(Rs. in crore)Period Received Sanctioned DisbursedNo. of Project No. of Project Amount No. of Amount Subsidyapplications Cost applications Cost applications1999-2000 407 5771 309 5074 2421 179 746 12000-2001 719 6296 616 4380 2090 494 1863 702001-2002 472 1900 444 1320 630 401 804 198.892002-2003 494 1835 456 1438 839 411 931 202.592003-2004 867 3356 884 3289 1341 814 856 249.062004-2005 986 7941 986 7349 2990 801 1757 283.602005-2006 1086 16194 1078 15032 6776 993 3962 4852006-2007 12336 61063 12589 66233 29073 13168 26605 823.922007-2008 2408 21254 2260 19917 8058 2207 6854 1143.372008-2009 (P) 6113 56542 6072 55707 24007 6111 21826 2632.002009-2010 2384 28005 2352 27611 6612 2361 8140 28862010-11 (UptoJune 2010) (P) 256 397 256 397 254 240 282As on30.06.2010(P) 28528 210554 28302 207747 85091 28180 74627 8665.43Table 3.5Sr. Year No. of Amount of subsidy releasedNo. units (Rs. in crore)1 2003- 2004 004 00.102 2004-2005 150 06.003 2005-2006 368 23.004 2006-2007 958 68.895. 2007-2008 436 35.926 2008-2009 404 32.487 2009-2010 363 30.578 2010-11(As on 31.10.2010) 72 5.36TOTAL 2755 202.32MID-TERM APPRAISAL OF THESCHEMEMid-term appraisal of the TechnologyUpgradation Funds scheme wasconducted by an independent evaluatornamely M/s CRISIL Research. The keyfindings of the evaluation study are:i) TUFS has been fairly successful inenabling the textile industry to investin modern machinery which isreflected in the overall improvementin productivity across the value chain.35

ministry of textilesii)iii)iv)The extent of increase however variesacross segments and acrosscompanies in each segment;The productivity improvement mustbe seen in the context of the varyinglevels of technology prevalent in eachsegment in the pre-TUFS period.The spinning sector was relativelymodernized even during the pre-TUFS period primarily on account ofthe presence of a strong domestictechnological base. Incrementalimprovements have been achievedprimarily through investments in highspeedmachines;There is however quite a distance tocatch up in areas like weaving andknitting;Interest rates in competing countries,especially in China, were quite low inthe past when compared to India.While interest rates in Pakistan andVietnam have witnessed a sharpincrease in the last few years whencompared to India, interest rates inChina continue to be low. The interestsubsidy has helped lower the effectiveinterest cost for companies;v) High fragmentation in garmenting andinadequate availability of good qualityprocessed fabrics have resulted inIndia losing out on the growthopportunities.The evaluation study has recommendedthat in view of the positive impact of TUFSin terms of increase in productivity, quality,value realization, turnover and reductionin cost etc, the scheme should becontinued into the 12th Plan Period topromote further investments in the sector.The evaluation study has further estimatedthat the industry needs an investment ofRs. 54000 crores by 2011-12 and anadditional investment of Rs. 1,45,000crores in the 12th Plan Period to cater todemand growth.Proposal to enhance and modify TUFSCurrently, a proposal to enhance the 11thPlan allocation under TUFS from Rs.8000 crore to Rs. 15404 crore is underconsideration. The proposal alsoenvisages modifications in the scheme toensure focus of interventions on hithertoslow growing sectors like weaving,encouragement to forward integration andtighter administrative controls andmonitoring of the scheme. The proposedmodifications are expected to triggeradditional investments of over Rs. 46,900crore during the balance period of the11th Five Year Plan.HANK YARN OBLIGATION SCHEMEThe Hank Yarn Obligation (HYO) is astatutory obligation which enjoins uponspinning mills to pack yarn in hank form.This Scheme is meant for protection ofthe handloom industry by way of ensuringthat the yarn in hank form is available inadequate quantity at reasonable prices tothe handloom industry. Failure to complywith this Obligation invites lodging of FIRagainst the defaulting mills by the Officeof the Textile Commissioner. The currentlevel of obligation is 40% of the total yarnpacked by the mills for civil consumption.The obligation has to be fulfilled in quarterlyperiods commencing from January-March.The Scheme also provides that shortfall infulfillment of the obligation may be met bytransferring of the obligation to anothermill which has excess production of hankyarn in addition to fulfilling its ownobligation. Normally, mills accept suchtransfer on premium.With the strict enforcement of theprovisions of the Hank Yarn PackingNotification by the Office of the TextileCommissioner, Mumbai, it is ensured thatactual packing of Hank Yarn is sufficientto meet the total domestic requirement ofhank yarn in the country. The details ofHank Yarn Packing Obligation and its36

annual report 2010-11fulfillment by actual packing for the lastfive years are given at table 3.6.TEXTILE WORKERS' REHABILITATIONFUND SCHEME (TWRFS)The Textile Workers' Rehabilitation FundScheme came into force with effect from15.09.1986 with the objective to provideinterim relief to textile workers renderedunemployed as a consequence ofpermanent closure of any particular portionor entire textile unit. Assistance under theScheme is payable to eligible workers onlyfor the purpose of enabling them to settlein another employment. Such assistanceis not heritable, transferable or capable ofbeing attached on account of any otherliabilities of the worker. The worker'seligibility shall cease if he takes upemployment in another registered orlicensed undertaking. The rehabilitationassistance will not be curtailed if the workerfixes himself in a self-employment venture.CLOSED TEXTILE UNITFor the purpose of this scheme, closedtextile unit means:(i) a unit licensed or registered under(ii)(iii)(iv)the Industries (Development &Regulation) Act, 1951 or with theTextile Commissioner as a mediumscale unit on the day of its closure;it has obtained the requisitepermission for closure from theappropriate State Government undersection 25(O) of the IndustrialDisputes Act, 1947 or alternativelyan Official Liquidator was appointedunder Companies Act, 1956, for thepurpose of winding up of the unit.The unit was closed down on or after06.06.1985.This also includes partially closedunits wherein the State Governmentsrecommend that an entireuneconomic activity (like weaving orprocessing) is scrapped as a part ofrehabilitation package for a sick/weak mill (as per the RBI definition)approved by the Nodal Agency /BIFR provided the scrappedcapacity is surrendered forcancellation and endorsement ismade on the License / Registrationcertificate to this effect.Table 3.6Year No. of Fulfillment of Hank Yarn Shortfall PercentageUnits Obligation (HYO) (-)/Excess (+) ofsubmitted in fulfillment fulfillmentthe HYO Fulfillment of HYO of HYOreturnsof HYO(on actualpacking basis)2004-05 2151 383.58 408.89 (+)25.31 106.60%2005-06 1942 451.84 441.94 (-)9.9 97.81%2006-07 2022 484.67 485.03 (+)0.63 100.13%2007-08 2099 516.03 527.37 (+)11.07 102.14%2008-09 2114 492.51 524.00 (+)31.49 106.39%2009-10(April, 09 toJune, 09) (P) 1939 126.88 126.15 (-)0.73 99.94%37

ministry of textilesEligibilityAny workers would be eligible providedhe/she has been engaged in a closedtextile unit on the date of its closurecontinuously for five years or more andearning a wage equivalent of Rs. 2500per month or less for the mills closedbetween 06.06.1985 to 01.04.1993 andRs.3500 or less thereafter. They shouldbe contributing to provident fundmaintained by the Regional ProvidentFund Commissioner of the Stateconcerned.Period and Quantum of ReliefRelief under the Scheme is available onlyfor three years on a tapering basis but willnot extend beyond the date ofsuperannuation of any worker. The workeris entitled to get relief:●●●to the extent of 75% of the wageequivalent in the first year of theclosure of the unit;to the extent of 50% of the wageequivalent in the second year; andto the extent of 25% of the wageequivalent in the third year.Operation of the SchemeThe office of the Textile Commissioner,Mumbai administers the scheme, throughits Regional offices and in coordinationwith State Government, Official Liquidator,Provident Fund Authorities, concerneddesignated Trade Union and designatedBanks. The State Government will collectthe details of the workers etc. from themanagement/official Liquidator/providentfund authority etc. and prepare a list ofeligible workers and forward the same tothe concerned Regional Office of theTextile Commissioner in the prescribedProforma. Regional Office of the TextileCommissioner scrutinizes the list and thelist of eligible workers with eligible relief issent to State Government and designatedtrade union, besides keeping on a noticeboard.The individual eligible workers are requiredto open a separate Savings Bank Accountin the designated nationalized Bank andforward a certificate to the effect along withhis relief claiming application to theRegional office of the Textile Commissionerthrough the State Government. In themean time the Regional office of theTextile Commissioner examines theproposals and assesses the fundrequirement and reports to the Headquarter Office of the Textile Commissionerfor releasing fund. On receipt of fundallocation, necessary fund is allotted to theRegional Office in the form of Letter ofCredit opened by the Pay & AccountsOfficer (Textiles) Mumbai. On receipt offunds, Regional Office of the TextileCommissioner disburses the relief bysending a consolidated cheque in favourof the designated Bank along with the listof eligible workers and the amount of reliefto be paid to each of the eligible workers.ProgressTill 30.9.2010, 82 mills were found eligibleunder the scheme. A total of 111634workers out of 143157 workers on therolls of these mills had been disbursedrelief of Rs. 296.77 crore. The State-wisecumulative position is given at table 3.7.PROCESSING SECTORThe textile-processing segment of theIndian textile industry is highly fragmentedand can be broadly divided into foursegments :(i)(ii)(iii)(iv)Hand processing units.Hand processing units with certainexempted power processes.Independent power processing units.Processing facilities attached tocomposite or semi-composite mills.38

annual report 2010-11Table 3.7S. State No. of mills No. of No. of workers benefited Disbursed amountNo. identified workers (as on 30.9.2010) (Rs. in crores)on rollNo. of Workersmills received relief1 Gujarat 43 80749 43 63608 159.502 Maharashtra 6 9958 6 7646 22.643. Madhya Pradesh 5 19800 5 18596 52.034. Tamil Nadu 6 5685 6 4761 7.455. Kerala 1 500 1 437 2.476. Karnataka 9 10020 9 5818 21.347. Andhra Pradesh 4 2501 4 1298 5.318. Delhi 1 5187 1 5170 11.939 West Bengal 3 2072 3 2042 5.3310. Punjab 4 6685 4 2258 8.77Total 82 143157 82 111634 296.77Government has identified processing asa critical segment. The National TextilePolicy envisages:●Setting up of modern processingunits, which would meet theinternational quality andenvironmental norms.● Expansion of the network of CAD /CAM, computerized color matchingand testing facilities, particularly inthe clusters of the decentralized textilecenters.●●Extending necessary support toindividual units in achieving ISO 9000(quality) and ISO - 14000(environment) standards.Giving a thrust to development ofeco-friendly dyes, including naturaland vegetable dyes and on energyconservation.Globally the environmental issues areincreasingly dominating the textileprocessing industry. In view of this, andas per mandate of National Textile Policy,the important steps taken by Governmentto boost the high-tech investment inprocessing sector include:(i)(ii)(iii)Technology Upgradation FundScheme launched by Government ofIndia on 1st April, 1999, envisagesboosting investment in high-techprocessing units, by providing 5%interest reimbursement on TUF loans.The scheme has been extended for11th five year plan.In order to take care of qualityrequirements and facilitate ecofriendlyproduction of processedfabric, eco-testing and quality testingfacilities have been createdthroughout the country, so that thetesting facilities are available withinthe reach of majority ofmanufacturers/exporters of textilesitems.In order to boost investment in hightech capital intensive textile39

ministry of textiles(iv)processing projects, a scheme toprovide 10% capital subsidy onspecified high tech machines hasbeen introduced. The units put upUnder this scheme may avail 5%interest reimbursement under TUFS,in addition to 10% capital subsidy.This facility has been extended for11th five year plan.In order to develop textile clusters inan integrated manner the scheme ofTextiles Centre InfrastructureDevelopment (TCIDS) has beenmerged with Apparel Park Schemeand is now know as Scheme forIntegrated Textiles Park (SITP).Under this scheme the textile parkswith all infrastructural facilitiesincluding state-of-the-art effluenttreatment plants are encouraged. Thescheme provides for 40% subsidy onthe project cost subject to themaximum of Rs.40 crore.TECHNICAL TEXTILESTechnology Mission on Technical Textiles(TMTT) has been launched with two minimissions starting from 2010-11 to 2014-15 with a financial outlay of Rs. 200 crore.The objective of the mission is to removethe impediments hampering the productionof technical textiles in the country to meetgrowing demand in the domestic andexport market. Under this Mission Rs.76.00crore has been proposed for the year2011-12.Mini Mission I of TMTT(b)Upgradation of existing fourCentres of ExcellenceExisting four COEs namely BTRA forGeotech, SITRA for Meditech, NITRAfor protech & SASMIRA for Agrotechwill be upgraded in terms ofdevelopment of incubation centre andsupport for development ofprototypes. Further fund support willbe provided for appointment ofexperts for developing these facilities.Mini Mission II of TMTT(a)Support for business start-upTechnical Textiles is a new area andentrepreneurs find it difficult to investin this field due to lack of knowledgeabout technology, raw material,process etc. Therefore, support for'business start-up' will be providedfor SME sector. The COE and otherassociations / institutes / independentreputed consultants will beempanelled who will prepare projectreports and do the hand holding ofthe potential entrepreneurs till thecompletion of the projects, which willbe eligible for service fee of 2% ofthe project cost for domestic projectsand 3% of the project cost for FDIprojects.The upper ceiling will be Rs. 5.00lakhs for domestic projects and Rs.6.00 lakhs for FDI projects.(b) Providing fund support fororganizing workshops(a)Setting up of four Centres ofExcellence (COEs)Four Additional COEs will be set upfor Nonwovens, Composites, Indutechand Sportech to provide infrastructuresupport at one place for theconvenience of manufacturers oftechnical textiles of these segments.Technical Textiles are still at nascentstage and its awareness level is verylow. Hence reputed consultantsincluding the Indian Diaspora settledabroad will be invited to conductshort term training programmes inwhich know how about latesttechnology, international practices,global scenario will be shared.40

annual report 2010-11Smt. Rita Menon, Secretary (Textiles) addressing during the Stakeholder Consultation onTechnology Mission on Technical Textiles(c) Social compliance throughstandardization, regulatorymeasures(d)Some of the technical textile productsrequire mandatory prescriptions fortheir use. Consultants will be engagedto identify the needed regulatorychanges required along withinternational best practices and alsothe strategy to facilitate such changesin the Indian rules and regulations.Market development Support forsale to the institutional buyersBuyers-sellers meet will be organizedwherein the indigenousmanufacturers can showcase theirproducts and institutional buyers willbe invited. Seminars will also beorganized in these meets wherein(e)the institutional buyers may providethe information regarding thetechnical specifications and otherquality parameters which are requiredfor meeting their needs.Fund support for one event will berestricted to Rs. 20.00 lakhs.Market development Support forexport salesThere are many reputed technicaltextile fairs organized abroad likeTECHTEXTIL and Industrial FabricsExhibition, Index etc., the participationin these fairs will improve the exportpotential of the indigenousmanufacturers. Fund support forparticipation in identified reputedtechnical textile fairs / applicationbased fairs to the extent of 50% with41

ministry of textilesa financial cap recommended atRs.5.00 laks per visit.(f) Fund support for ContractResearch and Developmentthrough IITs/TRAs/Textile InstitutesTechnical Textiles is high technologyarea where most of the high-endproducts are imported, there is strongneed for indigenous development ofproducts for which R&D is of primeimportance. Therefore, contractresearch will be covered under thishead. Idea and detailed work plansubmitted by entrepreneur andcollaborating institute after peerreview will be considered for grant.Contract research has to be carriedout at one of the govt. approvedresearch centres.The grant under the scheme will beupto 60 percent excluding cost ofland and building subject to ceilingrecommended as Rs. 20.00 lakhsper project. It is a initial ceiling andis relaxable by the EmpoweredCommittee on merit.42

annual report 2010-11CHAPTER IVEXPORTS43

44ministry of textiles

annual report 2010-11CHAPTER IVEXPORTSIndia's textiles and clothing industry isone of the mainstays of the nationaleconomy. It is also one of the largestcontributing sectors of India's exportsworldwide. The Vision Statement for thetextiles industry for the 11th Five YearPlan (2007-12), inter-alia, envisages Indiasecuring a 7% share in the global textilestrade by 2012. At current prices the Indiantextiles industry is pegged at US$ 55billion, 64% of which services domesticdemand. The textiles industry accountsfor 14% of industrial production, which is4% of GDP; employs 35 million peopleand accounts for nearly 12% share of thecountry's total exports basket.MILESTONESi) Exports of textiles and clothingproducts from India have increasedsteadily over the last few years,particularly after 2004 when textilesexports quota were discontinued.iii)iv)the last five years (2004-05 to 2009-10). Indian T&C exports is facingvarious constraints of infrastructure,high power and transaction cost,incidence of state level cess andduties, lack of state-of-the-arttechnology etc. The details of India'stextiles exports item-wise during thelast three years and current financialyear for the period Apr-September'10is at table 4.1.Readymade Garments account foralmost 45% of the total textilesexports. Apparel and cotton textilesproducts together contribute nearly70% of the total textiles exports.The exports basket consists of awide range of items comprisingreadymade garments, cotton textiles,handloom textiles, man-made fibretextiles, wool and woolen goods, silk,jute and handicrafts including carpets.ii)India's Textiles & Clothing (T&C)export registered robust growth of25% in 2005-06, recording a growthof US$ 3.5 billion over 2004-05 invalue terms thereby reaching a levelof US$ 17.52 billion and the growthcontinued in 2006-07 with T&Cexports of US$19.15 billion recordinga increase of 9.28% over previousyear and reached USD22.15 billionin 2007-08 denoting an increase of15.7% but declined by over 5% in2008-09 with exports of USD 20.94billion. During 2009-10, the exportsof T&C increased by over 5.60% andreached the level of USD 22.42billion. Thus exports of T&C havedenoted an increase of 60.14% inv) India's textiles products, includinghandlooms and handicrafts, areexported to more than a hundredcountries. However, the USA and theEU, account for about two-third ofIndia's textiles exports. The othermajor export destinations areCanada, U.A.E., Japan, Saudi Arabia,Republic of Korea, Bangladesh,Turkey, etc.vi)The export of textiles and clothingaggregated to US$ 22.42 billion in2009-10. The Government fixed thetarget for 2010-11 at US$ 25.48billion. So far during the period April-September'10, exports of T&C havebeen achieved at USD 11.26 billion.45

ministry of textilesTable 4.1India's textiles exports at a glance (Principal Commodities)Item 2007-08 2008-09 2009-10 Apr-Sept 2009 Apr-Sept 2010(P) VariationRs. Crore US$ Mn Rs. Crore US$ Mn Rs. Crore US$ Mn Rs. Crore US$ Mn Rs. Crore US$ Mn Rupee US$Readymade Garment 36497.79 9069.80 47112.77 10383.26 47608.39 10064.73 24341.69 5010.57 21807.76 4735.07 -10.41% -5.50%RMG of cotton including accessories 30335.79 7538.53 38522.72 8490.08 38070.33 8048.32 19144.48 3940.76 16696.06 3625.18 -12.79% -8.01%RMG of Man-made fibre 3912.26 972.21 4721.94 1040.68 5745.29 1214.59 3151.92 648.80 2990.66 649.36 -5.12% 0.09%RMG of other textile material 2249.74 559.07 3868.11 852.50 3792.77 801.82 2045.29 421.01 2121.04 460.54 3.70% 9.39%Cotton Textiles 27599.81 6858.63 21795.40 4803.52 27016.21 5711.41 9063.90 1865.74 13896.25 3017.26 53.31% 61.72%Cotton raw including waste 8865.39 2203.07 2865.86 631.61 9537.08 2016.20 1360.96 280.14 1727.28 375.04 26.92% 33.87%Cotton yarn, fabrics & madeups 18734.42 4655.56 18929.54 4171.91 17479.13 3695.20 7702.94 1585.60 12168.97 2642.22 57.98% 66.64%Man-made textiles 12785.02 3177.11 15090.76 3325.88 18783.13 3970.88 9405.93 1936.15 9409.19 2043.00 0.03% 5.52%Manmade staple fibres 1121.72 278.75 1172.01 258.30 1690.68 357.42 742.51 152.84 876.58 190.33 18.06% 24.53%Manmade yarn, fabrics & madeups 11663.30 2898.36 13918.75 3067.58 17092.45 3613.46 8663.42 1783.31 8532.61 1852.67 -1.51% 3.89%Wool & Woolen textiles 1783.13 443.11 2199.49 484.75 2224.14 470.20 1316.35 270.96 1017.02 220.82 -22.74% -18.50%RMG of Wool 1409.55 350.28 1742.97 384.14 1799.20 380.36 1100.50 226.53 802.63 174.27 -27.07% -23.07%Woollen yarn, fabrics & madeups 373.58 92.84 456.52 100.61 424.94 89.84 215.85 44.43 214.39 46.55 -0.68% 4.77%Silk 2646.75 657.72 3107.78 684.93 2819.46 596.05 1465.11 301.58 1251.36 271.71 -14.59% -9.91%RMG of Silk 1093.67 271.78 1437.73 316.86 1383.42 292.46 759.13 156.26 567.30 123.18 -25.27% -21.17%Natural silk yarn, fabrics & madeups 1540.93 382.93 1664.82 366.91 1411.12 298.32 702.47 144.60 663.40 144.04 -5.56% -0.38%Silk waste 12.15 3.02 5.23 1.15 24.92 5.27 3.51 0.72 20.66 4.49 488.60% 520.87%Handloom Products* 1252.81 264.85 567.01 116.72 720.19 156.37 27.02% 33.98%Textiles (excluding handicrafts, jute & coir) 81312.50 20206.38 89306.20 19682.34 99704.14 21078.12 46159.99 9501.72 48101.77 10444.23 4.21% 9.92%Handicrafts 5844.12 1452.28 4949.23 1090.77 4548.91 961.67 2049.60 421.90 2362.50 512.96 15.27% 21.59%Handicrafts (excluding handmade carpets) 2046.21 508.49 1384.19 305.06 1066.58 225.48 498.25 102.56 389.70 84.61 -21.79% -17.50%Carpets (excluding silk) handmade 3725.80 925.87 3506.37 772.77 3441.74 727.61 1531.78 315.31 1968.48 427.41 28.51% 35.55%Silk carpets 72.11 17.92 58.67 12.93 40.59 8.58 19.57 4.03 4.32 0.94 -77.93% -76.72%Coir & Coir Manufacturers 644.87 160.25 680.70 150.02 759.66 160.60 381.48 78.53 332.81 72.26 -12.76% -7.98%Coir & Coir Manufacturers 644.87 160.25 680.70 150.02 759.66 160.60 381.48 78.53 332.81 72.26 -12.76% -7.98%Jute 1319.36 327.86 1375.78 303.21 1033.09 218.40 538.92 110.93 1082.85 235.12 100.93% 111.94%Floor covering of jute 317.56 78.91 251.63 55.46 281.07 59.42 134.53 27.69 172.99 37.56 28.59% 35.64%Other jute manufactures 322.22 80.07 491.64 108.35 300.19 63.46 175.61 36.15 231.74 50.32 31.96% 39.20%Jute yarn 215.14 53.46 216.92 47.81 144.20 30.48 62.46 12.86 313.85 68.15 402.48% 430.03%Jute hessian 464.44 115.41 415.59 91.59 307.63 65.04 166.32 34.24 364.27 79.09 119.02% 131.02%Total Textiles Exports (incl. handicrafts,coir & jute) 89120.85 22146.78 96311.91 21226.34 106045.80 22418.79 49129.99 10113.07 51879.93 11264.58 5.60% 11.39%% Textile Exports 13.59% 13.59% 11.46% 11.46% 12.54% 12.54% 12.49% 12.49% 10.69% 10.69%India's exports of all commodities 655863.52 162983.90 840755.06 185295.36 845533.64 178751.43 393262.20 80950.31 485206.78 105351.89 23.38% 30.14%Source: Foreign Trade Statistics of India (Principal Commodities & Countries), DGCI&S for export figures in Rupee and Department of Commerce (Intranet) - Exchange rate*Handloom Products have been included as commodities first time in 2009-1046

annual report 2010-11LIBERALISED TRADING REGIME ANDEMERGING OPPORTUNITIESIn the liberalized post-quota period, Indiahas emerged as a major sourcingdestination for new buyers. As a measureof growing interest in the Indian textilesand clothing sector a number of buyersopened their sourcing / liaison office inIndia. These include Marks and Spencer,Haggar Clothing, Kellwood, Little Label,Boules Trading Company, Castle, AlsterInternational, Quest Apparel Inc., etc.Commercially the buoyant retailers acrossthe world are looking for options ofincreasing their sourcing from the Indianmarkets. Indian manufacturers are alsopro-actively working towards enhancingtheir capacities to fulfill this increaseddemand.EXPORT PERFORMANCE IN THECURRENT YEARIn 2007-08 the textiles exports of Indiasuffered badly due to sharp appreciationin Rupee vis-à-vis the US$. Although therupee has depreciated sharply vis-à-visthe US dollar since April, 2008, theexports prospects of the Indian textilessector continues to be adversely affected.Some of the reasons attributed to thisdecline are the financial sector melt downand economic slow down in internationalmarkets, increased cost of productionbecause of increasing raw material costs,high power and other input costs whichhave affected the profitability of textilesand garments units in India and theirexports. The liquidity crunch is anotherfactor that is affecting the industry. Insuch a situation the positive impact ofrupee depreciation had been washedaway. During the financial year 2009-10,various export promotion councils andtrade bodies represented to theGovernment that the textiles exports hadbeen adversely affected by recent globalrecession. For exports, the major marketshave been USA, EU & Japan and all thethree markets were recession during 2009-10. However, the trend changed in the2nd half of 2009-10, and there was revivalfrom the economic slow down in themajor markets. As a result, the exports ofT&C products during 2009-10 increasedby over 5.60% reaching a level of US$22.42 billion. During the current year(April-September 2010), the exports ofT&C lines have registered a growth of11.39% over the same period during2009-10. There has been an upwardswing in the export of all sectors of T&Cexports particularly in cotton textiles,handicrafts and carpets.Global exports of Ready MadeGarments (RMG)● Global exports of RMG during 2007-08 were of the order of US$ 9.07Billion, which increased to US$ 10.38Billion during 2008-09 but declinedby 3% to US$ 10.04 Billion in 2009-10.●●●●As per latest available statistics,exports of RMG during April-September, 2010 was of the order ofUSD4735.07 Million as againstUSD5010.57 Million during the sameperiod last year, indicating a declineof over 5.50% in US$ terms thisyear.EU was biggest destination for RMGexports, with over US$5.2 Billionworth of exports during the yearending March, 2010. However, therewas a decline of over 3% comparedto exports in 2008-09.US was the 2nd biggest destinationfor RMG, with exports of US$ 2.6Billion, though this was a decline ofaround 2% compared to thepreceding financial year.UAE was the 3rd biggest destinationwith around a Billion dollar worth ofexports to that group.47

ministry of textiles●Considerable appreciation of RMGexports was seen in South Africa,Singapore, Australia, Malaysia,Kuwait and Brazil.Global exports of Handicrafts (HC)●●Exports of Handicrafts was of theorder of US$ 1.45 Billion in 2007-08and had drastically reduced to US$1.09 Billion in 2008-09 and furtherwent down to US$ 961.67 Million in2009-10.As per provisional exports data forthe period April-September of thisfinancial year, exports of Handicraftshave touched US$ 512.96 Millioncompared to US$ 421.90 Millionduring April-September of thepreceding financial year, thusregistering an increase of around21.59%.Global exports of Handlooms (HL)●Harmonized System of Classificationof Handlooms products wereintroduced in 2009-10.● Exports of Handlooms during 2009-10 were of the order of US$ 260Million.●●In April, 2009 exports of Handloomswas of the order of US$ 13 Millionwhereas exports during April 2010was of the order of US$ 14 Million,thus registering an increase of over7.6% in dollar terms.The biggest destination of India'sHandlooms products is USA (US$111Million) followed by the EU.COUNTRY-WISE ANALYSIS●In the global market exports ofclothing, India ranked as the 6thlargest exporter as per WTO data -2008 (latest), trailing Bangladesh,●●Turkey, Hong Kong, EU and China.In the global exports of Textiles &Clothing (T&C) combined, Indiaranked as 5th largest exporter, trailingTurkey, Hong Kong, China and EU,as per WTO data - 2008 (latest).The calendar year 2008 since themonth of August onwards was not atall conducive for the Indian T&Cexport either as the major marketsfor T&C viz. USA, EU and Japanhave been in recessionary conditionand financial crisis. In thisenvironment, textiles sector isamongst the worst hit sectors. Therecessionary trend observed in thecalendar year 2010 changed due togradual recovery of major economiesfrom the global economic slowdown.USA, the single largest importer ofT&C items, observed a positivegrowth of 15.30% and 18.10% in itsimports of T&C from the world andIndia, respectively during the first 11months of calendar year 2010.Almost all major T&C exportingcountries showed positive trend inUS market during the first 10 monthof calendar year 2010. (Source:GTIS)India's position in the EU marketswith a share of 7.93% and a negativegrowth rate of 8.86% was small incomparison to China which occupiedover 41% market size with a negativegrowth of 6.04% in 2009. The EU'soverall T&C import registered agrowth of 7.30% in 2008 and adecline of 11.87% in 2009. In the first10 months of calendar year2010,EU's overall imports of T&C havegrown by 5.03% while India recordeda growth of 3.54% over thecorresponding period in 2009. China& Turkey, the two largest exportersof T&C to EU have recorded growthof 6.45% and 6.56% respectivelyduring same period. (Source: GTIS)48

annual report 2010-11IMPORT SCENARIOThe total imports of T&C products byIndia reached US$ 3.36 billion in 2009-10.Man-made Filaments was the biggestimport amongst T&C items, with a shareof 16.56% followed by impregnated textilefabric and cotton with a share of 15.62%.The imports have decreased by 3.30%during 2009-10 in dollar terms. However,the share of import of T&C products byIndia as percentage of total imports of allcommodities has gone up during 2009-10, and reached 1.17% as against 1.14%during 2008-09.EXPORT PROMOTION MEASURESThe Government has been continuallysupporting the textiles exports sectorthrough fiscal and non-fiscal measuresas well as through incentivisationschemes to enable the sector to increasemarket share in the global textilesmarkets.EXPORT PROMOTION COUNCILSApparel Export Promotion Council(AEPC)The Apparel Export Promotion Council(AEPC) was sponsored back in 1978 topromote exports of readymade garmentsfrom India. The Council was administeringthe exports entitlements quota in respectof readymade garment items, which weresubject to trade restraints in USA,European countries and Canada. Besidesits headquarter at New Delhi, the Councilhas Regional Offices at Jaipur (Rajasthan),Ludhiana (Punjab), Mumbai (Maharashtra),Chennai and Tirupur (Tamilnadu),Bangalore (Karnataka) and Kolkata (WestBengal). The Council is the implementingagency for the Knitwear TechnologyMission and Common Compliance CodeSchemes which are Plan Schemes of theCentral Government.The Cotton Textiles Export PromotionCouncil (TEXPROCIL)The Cotton Textiles Export PromotionCouncil (TEXPROCIL), Mumbai wasincorporated under the Indian CompaniesAct, VII of 1913 in October, 1954 with thepressing objective of export promotion ofcotton textiles. In the year under review,the Cotton Textiles Export PromotionCouncil (TEXPROCIL), Mumbai made anumber of suggestions for strengtheningthe export efforts and also to provide datafor monitoring exports. The Councilcontinued to disseminate information ondemand patterns, consumer preferences,competing products/countries etc. with aview to assist Indian exporters to competeeffectively in the overseas markets. TheCouncil also undertakes export promotionmeasures to project the considerableproduct range of Indian cotton textiles inIndia and abroad.The Synthetic & Rayon Textiles ExportPromotion Council (SRTEPC)The Synthetic & Rayon Textiles ExportPromotion Council (SRTEPC), Mumbaiwas incorporated in 1954 under the IndianCompanies Act, 1913 with the basicobjectives to establish, promote andoperate maintain and increase the exportof synthetic and/or cellulosic yarn, etc. Inthe period under review, the Councilprovided comprehensive inputs to theGovernment for modification in exportimportpolicy/procedures as well asdisseminated information on demandpatterns, fashion trends and prices ofcompeting products in the overseasmarkets to enable Indian exporters toimplement modernized cost-effectivemanufacturing techniques, productadaptation and diversification. The Councilundertook several export promotionmeasures to generate greater awarenessof Indian man-made textiles amongoverseas buyers.49

ministry of textilesExport Promotion Activities of EPCsDuring the year 2009-10, the EPCscontinued export promotion activities oftextiles exports. These includedparticipation in overseas exhibitions/fairs,organisation of Buyer-seller-Meets (BSMs)abroad and, sponsoring trade delegationsfor consolidating the existing markets andexploring new markets. Major textiles fairslike India International Garment Fair andIndian Handicrafts & Gifts Fair were heldin New Delhi, which attracted large numberof buyers from all over the world. TheEPCs participated in all major fairs &exhibition world-wide, and Textiles MegaShows were jointly put up in Japan, SouthAfrica and Latin America with the supportof the Government.Apparel International Mart (AIM)The Apparel International Mart (AIM) hasbeen constructed at Gurgaon in Haryanawith a covered area of 3.5 lakh sq.ft.,where International buyers can have theconverge at one single source to accesstheir requirements and conduct on-thespotbusiness. The events like MarketWeek and Markets Carnivals wereorganized during the year by the Council,where the showroom holders displayedtheir collections. The Apparel House hasbecome an important landmark inGurgaon, and houses facilities likeAuditorium, Exhibition Hall, Art Gallery,Cafeteria, and Plaza Area &Amphitheatre.Apparel Training & Designing Centres(ATDCs)The Apparel Training & Designing Centrewas registered as a Society underSocieties Registration Act on February15, 1991 at New Delhi with the mission toupgrade the technical skills of the humanresource employed in Garment Industry.There are 58 ATDC centres functioningacross the country to provide trainedmanpower in the field of Pattern Making/Cutting Techniques and ProductionSupervision and Quality ControlTechniques to the Readymade GarmentIndustry so that quality garments aremanufactured for the global market. TheATDCs have been identified as implementsfor the Integrated Skill DevelopmentScheme which was launched inSeptember, 2010.NATIONAL INSTITUTE OF FASHIONTECHNOLOGY (NIFT)The National Institute of FashionTechnology was set up in 1986 as anautonomous Society in collaboration withthe Fashion Technology (FIT), New York,to train professionals to meet therequirements of the textiles industry. Theinstitute has pioneered the evolution offashion business education across thecountry through its network of fifteencentres at New Delhi, Bengaluru, Chennai,Gandhinagar, Hyderabad, Kolkata,Mumbai, Rae Bareli, Patna, Bhopal,Shillong, Kangra, Kannur, Jodhpur andBhubaneswar.NIFT besides conducting regularprofessional undergraduate andpostgraduate programmes in Design,Management and Technology, also offersshort duration part-time courses underits Continuing Education (CE)Programmes.A Specialty Centre will be opened atCoimbatore very shortly.The National Institute of FashionTechnology Act, 2006 came into force onJuly 14, 2006 and came into effect from1st April, 2007. The Act provides statutorystatus to the Institute and formallyrecognizes its leadership in fashiontechnology sector, and empowers NIFT toaward degrees to its students. NIFT is thefirst Institute in the world to award degreesin fashion education.50

annual report 2010-11Statutory StatusNIFT Act 2006 has accorded statutorystatus for the promotion and developmentof Education & Research in FashionTechnology with the President of India asthe Visitor. The Act signifies publicconfidence in NIFT as thought leader,with 'fashion' (defined in a much widercontext) as a business strategy for valueaddition.NIFT is supported by the Ministry ofTextiles and governed by the Board ofGovernors (BOG) and its Chairpersonnominated under NIFT Act, 2006. TheDirector General is the Chief ExecutiveOfficer of the Institute with Head Officeand a network of fifteen centres.Thought leadership in fashiontechnology educationNIFT has been instrumental in bringingabout a paradigm shift in the perceptionof 'fashion' in India, with its connotationextending beyond the conventional apparelindustry, to integrate with every aspect ofthe lifestyle industry. Fashion todayencompasses popular trend or a lifestyle,specially in styles of dress and ornamentor manners of behaviour or the businessof creating, promoting or studying stylesin vogue or the designing, production andmarketing of new styles of goods such as,clothing, accessories, craft and cosmetics,thus adding tremendous value to diverseindustry and businesses.NIFT has pioneered significant changesin the industry in strategy, approach,technology upgradation, designintervention and management practices,in the face of liberalization andglobalization of the economy.Curriculum restructuring withinternational benchmarkingNIFT has been conferred the status ofStatutory body by act of Parliamentwhereby NIFT awards Undergraduate andPost Graduate Degrees in the field ofDesign, Management and Technology.The Degree programmes offered by NIFTat Undergraduate level (4 years) are asunder:-1. Bachelor of Design B. Des (Design)●●●●●●Fashion DesignLeather DesignAccessory DesignTextile DesignKnitwear DesignFashion Communication2. Bachelor of Fashion Technology(B. FTech.) - Technology●Apparel Production3. Post Graduate ProgrammesThe Post Graduate degreeprogrammes offered by NIFT are asunder:-●●●Master of Design (M. Des)-DesignMaster of Fashion Technology(M.F. Tech.) - TechnologyMaster of Fashion Management(M.F.M.) - ManagementThe Post Graduate degree programmesare of two years duration.Apart from the above, this year NIFT hasannounced Ph. D, FDP (FacultyDevelopment Programme) and BridgeProgramme.The introduction of these programmes willserve to build essential knowledgeresource and develop core competencyand transform NIFT into centre of51

ministry of textilesexcellence in these specific areas ofDesign, Management programme thatwould allow former NIFT Graduates toenhance their Diplomas into degrees.Industry LinkagesIndustry Linkages of NIFT are symbioticwith industry experts contributing to thecurriculum development, projects,placements and training. NIFT Campusplacement 2010 was organized during themonth of February and the 2nd phaseduring the month of June 2010 at 7 NIFTCentres (Bangalore, Chennai,Gandhinagar, Hyderabad, Kolkata,Mumbai, New Delhi). The class of 2010was successfully placed in various sectorslike Manufacturing / Exporter, Retailer,Designer, Buying House, Brand,Technology Solutions, Consultancy, Mediaand Education.INTERNATIONAL LINKAGESMOUs / Strategic alliancesIn the academic year spanning 2010-11,six new (domain specific) MOUs havebeen signed for various activities likestudent and faculty exchange, research,customized programmes, Seminars etc.1. School of Design, University of Leeds2. University of Southampton(Winchester School of Art,Winchester)3. ESMOD, Germany4. GMIT, Ireland5. Saxion College of Arts, TheNetherlands6. Utrecht School of the Arts, TheNetherlandsInternational Competitions for NIFTStudentsa) Arts of Fashion Symposium &Competition 2010 - San Franciscob) Colour Competition by Society ofDyers and Colorists, West Yorkshire,Englandc) Competition to Craft a Logo for theUNESCO Award of Excellence forHandicraft Crafting Excellenced) Summer courses and competition fornew Masters program organized byDomus Academy, Milane) Jewellery competition, DesignCamping competition, Colors ofCreativity organized by Politecnicodi Milano, Milan.International Scholarship for semesterstudy for NIFT students●●Queensland University of Technology(QUT), Australia, awarded 05scholarships worth AUD $ 5000 eachto students from India and promisedto award the same in the next year.These scholarships shall be overand above the tuition fee waiver tothe students.QUT also announced a sponsorshipworth AUS$ 10,000 for a NIFTstudent who must be from a loweconomic background andacademically able. One student fromNIFT-Patna Centre is selected forthe same.MA scholarship for NIFT Studentsa) Creative diary "My City": IEDInternational Selection forScholarships for Master Programsb) Domus academy offered scholarshipsfor Masters program on the basis forcompetitionStudent Twinning / Exchange of NIFTstudents (Table 4.2)52

annual report 2010-11Table 4.2Name of Foreign NIFT Centre No. of Students RemarksSchoolJan- ENSAIT, France Hyderabad, 04 students from Free seatsJune Bengaluru and BFtech department2010 DelhiLondon College of Delhi and 02 students from Free seatsFashion, UK Kolkata Fashion DesigndepartmentMod Art International, Delhi 01 student from Free seatFranceKnitwear Design and01 from LeatherDesign departmentQueensland University of Mumbai, 02 students from Free seatsTechnology, Australia Gandhinagar, FD, 02 from F&LADelhi and and 01 from KDHyderabad departmentRyerson University, Kolkata 01 student from Free seatCanadaLeather DesigndepartmentUniversity of Manchester, Kolkata 01 student from Free seatUKTextile DesigndepartmentJuly- London College of Delhi and 02 students from Free seatsDecember Fashion, UK Mumbai FD, 01 from LD and2010 (University of the Arts, 01 from TDLondon)Mod Art International, Kolkata 02 students from FD Free seatsFranceand 01 from KDQueensland University of Kolkata 01 student from KD Free seatTechnology, AustraliaRyerson University, Kolkata 01 student from KD Free seatCanadaUniversity of Chennai, 05 students from Free seatsPhiladelphia, US Mumbai, MFMDelhi andGandhinagarAcademy of Arts, Bengaluru 02 students from Free seatsSan FranciscoTD departmentSchool of Design, Mumbai 03 students form Free seatsUniversity of LeedsMasters of Design53

ministry of textilesForeign StudentsThe details of Foreign Students who haveundertaken the Study Abroad at NIFT aregiven at table 4.3.Customized Summer Program(Exchange) & short term programs forNIFT students and faculty membersThe Customized short term summerprograms, which were successfullycompleted with full scholarship are givenat table 4.4.Incoming foreign students undercustomized programsThe Customized short term summerprograms, which were successfullycompleted, are given at table 4.5.Cluster Development InitiativeNIFT has made concerted efforts tomainstream the craft tradition of thecountry as an integral component of thecurriculum of all programmes. It focuseson training, design intervention, technologyTable 4.3Semester of Name of Foreign Institute No. ofExchangestudentsJan-June 2010 Amsterdam Fashion Institute, Netherlands 01Ryerson University, Canada 02ENSAIT, France 04July-December 2010 Academy of Arts, San Francisco 02Queensland University 03Table 4.4Name of Institute Type of Program DetailsSwiss Textile Customized Summer Course 14 students acrossCollege (STF), ZurichNIFT CentersCustomized Summer Course01 faculty member fromNIFT-BangaloreTable 4.5Sr. Name of Institute Type of Program DetailsNo.1. Swiss Textile College Customized summer program 16 students(STF), Zurichat BangaloreCustomized summer programat Bangalore01 Faculty memberfrom STF54

annual report 2010-11up- gradation, establishing market linkagesand promotion.NIFT has translated its vision of 'concernfor social and human values' into aworkable proposition by impartingknowledge to many NGOs to strengthentheir capabilities through classroom andother projects. Integration of craft clusterproject into academic curriculum providedentrepreneurial experience, holisticlearning and real life case studies tostudents and faculty.A project sponsored by O/o DC (HC) forestablishment of design studios at Delhi,Kolkata and Gandhinagar and HandicraftMuseum at Delhi is being implemented byNIFT. The Design Studios have beenestablished and are functional with highlyequipped facility resources. Fashionmagazines, periodicals and forecastingbooks have been procured under theproject with the objective of disseminationof related knowledge.Equipments like laptop, digital camera,design solution software's etc. have beenprocured to facilitate the beneficiaries atgrass root level. Need based workshopsaimed to provide Design intervention forupgrading the skills of the artisans and todevelop new design products having acontemporary look and a ready marketare undertaken on regular basis.After the commencement of the project,nineteen Sampling and PrototypeDevelopment workshops have beenconducted (till November 2010) involvingapproximately 426 artisans. A 15 daysworkshop on 'Painted Terracotta of Gujarat'was conducted at Jhajjar, Haryana duringSeptember - October'2010 involving 30artisans to develop contemporary products.The range designed and developedincluded Garden Accessories, HomeDécor and Desk top items. A 15 daysworkshop on 'Sikki - the golden grasscraft' is being conducted at Madhubani,Bihar from 24th November to 8thDecember 2010. Two workshops for skilldevelopment and product diversificationwere conducted by NIFT Kolkata in theareas of Kantha stitch and patch workand applique for (36) thirty six artisansduring September to November, 2010.During the Sampling and PrototypeWorkshop held at Jhajjar, sessions underTraining Studio and Workshop had beenconducted wherein subject experts wereinvited to present lectures on topics like'motivation', 'importance of quality andmarketing', 'concept of SHGs andaccounting for tiny enterprises' formobilizing the artisans towards commercialproduction of the new designs developed.Similarly, other need based activities arebeing implemented with the objective ofenhancing commercial viability of theidentified crafts and benefiting therespective craftsmen across three DesignStudios at Delhi, Gandinagar and Kolkata.RESEARCHNIFT faculty publish and present papersextensively.Publishing of papers and articles by facultyin leading international and nationaljournals/magazines like ATA Journal, Fiber2 Fashion, Indian Textile Journal, AsianTextile Journal, Apparel View, ApparelOnline, DFU, Images, Femina etc aretestimony to their ongoing research.The contribution to leading Internationalpublications by the faculty is a matter ofprestige for NIFT. Dr. Sibichan K. Mathewof NIFT will co-author a book on 'GlobalFashion Marketing' with Dr. David Birks,University of Southampton, UK.Consulting and Extension work hasprovided dynamic learning opportunity tothe participating faculty and studentsthereby strengthening their teaching and55

ministry of textilesresearch outputs. Numerous projects wereundertaken from Government and industry,ranging from technology transfer,designing of uniforms, customized training,support to new and/or other institutes,IPR and GI Registration, design andproduct development, technologyupgradation for national and internationalorganizations.SYNCHRONIZATIONANDBENCHMARKING OF THE ACADEMICDELIVERANCEIn the process of standardization of thecourse curriculum, the academicdeliverance, content, delivery andevaluation process have beenstandardized across all NIFT Centres. Allsubjects are classified as theory, processbasedand electives. All theory subjectsare evaluated through a common boardexamination across NIFT centers whileprocess-based subjects are evaluatedthrough benchmarked assignments toensure parity in the course deliverance.The structure of the jury for all theprocess based subjects also has beenstandardized. This curriculum is effectivelyand efficiently running across all the NIFTcenters.Looking at future perspective, industryfeedback sessions were organized acrossmajor textile & apparel Centres in India.The feedback was incorporated in a newcurriculum development.DOCTORAL PROGRAMMEThe NIFT Doctoral programme is offeredboth to the internal faculty and also toexternal candidates in the three streamsof Design, Management and Technology.This year a total of 42 candidates appliedfor the programme and 11 have beenadmitted. In addition several facultymembers have enrolled for and/or arecontinuing with their Ph.Ds with otheruniversities.BRIDGE PROGRAMMEThe Bridge Programme which was startedin 2009 to enable the enhancement ofdiplomas to degrees for NIFT alumnicontinues in 2010 at Delhi, Bengaluru,Chennai, Gandhinagar, Hyderabad,Kolkata and Mumbai to include over 114graduates in erstwhile PG Diplomaprogrammes and over 70 in UGprogrammes.FACULTYPROGRAMMEDEVELOPMENTThe Faculty Development Programme wasan initiative to create a pool of interested,motivated and trained resource in fashioneducation in the three streams of Design,Management and Technology. Based ontheir performance, the top 4 students ofthe programme have qualified for facultypositions at NIFT centres.Sixteenth NIFT ConvocationThe XVIth NIFT Convocation 2010 washeld on November 2, 2010 at SirifortAuditorium, Khel Gaon, New Delhi. Duringthe ceremony, the Degrees were awardedto the graduating batch of class 2010.Total 1344 students graduated from 08NIFT centres. The course-wise; centrewisesummary of the graduates during theyear 2010 is given at table 4.6.SARDAR VALLABHBHAI PATELINTERNATIONAL SCHOOL OFTEXTILES AND MANAGEMENTSardar Vallabhbhai Patel InternationalSchool of Textiles and Management,Coimbatore, Tamil Nadu, was set upinitially as Sardar Vallabhbhai PatelInstitute of Textiles Management onDecember 24, 2002 as a national levelinstitute for Textile Management to preparethe Indian Textile Industry to face thechallenges of Post-MFA era and enable itto establish itself as a leader in the global56

annual report 2010-11Table 4.6Batch wise students strength across NIFT Centres (2006-10)Dept. Bangaluru Chennai Gandhinagar Hyderabad Kolkata Mumbai New Delhi Patna TotalAD 32 21 29 15 34 131FC 34 29 63FD 25 34 34 38 37 33 32 233KD 27 29 18 30 104LD 25 30 55TD 29 29 32 33 32 32 187BFT 25 36 29 26 33 27 35 211MDes 20 29 49MFM 34 31 35 26 31 31 30 23 241MFT 38 32 70Total 183 178 159 138 187 163 313 23 1344textiles trade. Recognising the emergingareas in textiles, especially technicaltextiles, and the greater role the Institutehas to play for the benefit of the textilessector, the Institute was upgraded asSardar Vallabhbhai Patel InternationalSchool of Textiles and Management(SPVISTM) by the Hon'ble Minister ofTextiles, Shri Dayanidhi Maran on July 7,2010. (Upgradation of SVPITM toSVPISTM and Signing of MOU withIGNOU on July 7, 2010).SVIPSTM is a National Level AutonomousInstitution providing comprehensiveeducation, training, consultancy andresearch in textiles management. TheSchool has been set up by the Governmentof India, Ministry of Textiles and the TextilesIndustry, registered under the Tamil NaduSocieties Registration Act, 1975 to cater tothe long-felt need for management coursesspecialising in textiles, including researchin textiles management.GOVERNING BODYThe School functions under the overalldirections of the Board of Governors,chaired by the Secretary, Ministry ofTextiles, Government of India, withmembers from industry, administrationand academia and the AcademicCommittee, Chaired by the Joint Secretary,Ministry of Textiles, Government of India.The day-to-day academic andadministrative activities of the Institute arecarried out by the Director with the supportof faculty and staff members. The Boardof Governors was re-constituted on April12, 2010 for a period of three years.Current Academic ProgrammesThe School currently offers the followingprogrammes:●AICTE (All India Council for TechnicalEducation) approved long-termprogrammes:■ Two-year Full-time Post-Graduate Diploma inManagement (Textiles) - PGDM(T)■ Two-year Full-time Post-Graduate Diploma inManagement (Apparels) - PGDM(A)57

ministry of textiles●●In association with BharathiarUniversity, Coimbatore■M.Phil and Ph.D researchprogrammes in TextilesManagementIn association with IGNOU■MBA (Textiles Management)under this arrangementForthcoming Programmes●●●From the forthcoming academic year,the School will be offering One-yearFull-Time Post-Graduate Certificatecourse in Home Textiles to cater tothe needs of this important segmentof textiles industry.Under the MOU with the IGNOU(Indira Gandhi National OpenUniversity) more programmes will beoffered in the ensuing years.The School is taking steps to launchan innovative and unique Five-yearIntegrated course leading to B.Tech(Technical Textiles) and MBAdegrees. It will also be offering TwoyearFull Time MBA course in RetailManagement.Short Term Programmes andConsultancy●Apart from full time courses, theSchool also organises innovativeExecutive Development Programmesto arm executives in the industry withthe knowledge and tools needed tocompete and win in today's globalisedeconomy.● It has conducted number ofConferences/Short-term/ManagementDevelopment Programmes. for thepersonnel connected with textileindustry in general and for specifictextile firms as in-house programmes.During the nine months of the fiscalyear 2010-11, 735 persons benefitedfrom the programmes conducted bythe School.● It also offers comprehensiveconsultancy services in the areas ofTextile Technology and TextileManagement including Marketing,Finance and Human Resources tothe needy firms.Infrastructure DevelopmentTo meet the needs of the expanded rolefor the School, it is equipping itself withneeded infrastructure. The newlyconstructed state-of-the-art academic blockand auditorium was declared open by theHon'ble Chief Minister of Tamil Nadu, onDecember 12, 2010.NCUTESVPISTM is the current custodian ofNCUTE (Nodal Centre For UpgradationOf Textile Education) established by theMinistry of Textiles, Govt. of India with thebroad objective of enhancing textileeducation through improved retraining ofteachers, meet the challenges of emergingtechnology and quality of input, and toestablish a dynamic system for reform oftextile education in the country to meetwith international standards and marketdemands. SVIPTM is carrying out variousactivities to achieve the objectives ofNCUTE.Signing of MOUsTo bring about the synergy of knowledgeand expertise, the School is entering intoa serious of MOUs with industryassociations and research institutions.The MOU signed with the TechnicalUniversity of Liberec, Czech Republic onDecember 16, 2010 enables interdisciplinaryand multi-disciplinary sharing,exchange of relevant research information,faculty and student exchange etc. (Signingof MOU with Technical University ofLiberec).58

annual report 2010-11AwardsThe School was adjudged the 'BusinessSchool with Best Industry Interface' forthe 18th Dewang Mehta Business SchoolAward on November 24, 2010.Funds releasedThe year-wise funds released to theSVPISTM by the Government is given attable 4.7.Financial yearTable 4.7Amount released(Rupees in Crores)2003-04 0.092004-05 3.912005-06 2.002006-07 5.002007-08 9.182008-09 4.282009-10 3.572010-11 17.78Total 45.81SCHEME FOR INTEGRATED TEXTILEPARKSEXPORTPROMOTION,INFRASTRUCTURE AND TECHNOLOGYUPGRADATION MEASURES:APPAREL PARK FOR EXPORTSSCHEME (APES)With the objective of imparting a focusedthrust to set up apparel units ofinternational standards and to give a fillipto exports, the Government had launchedthe Apparel Park for Exports Scheme(APES), a centrally sponsored scheme.Twelve Project Proposals have beensanctioned for setting up Apparel Parks atTronica City & Kanpur (U.P.), Surat(Gujarat), Thiruvananthapuram (Kerala),Visakhapatnam (Andhra Pradesh),Ludhiana (Punjab), Bangalore (Karnataka),Tirupur & Kanchipuram (Tamil Nadu),SEZ, Indore (Madhya Pradesh), Mahal(Jaipur, Rajasthan) and Butibori-Nagpur(Maharashtra). Four Projects have beencompleted - Bangalore-Karnataka,Thiruvananthapuram-Kerala, Tirupur andIrrungottakotai - Tamil Nadu. Two projectsare near to be completion -Tronica Cityand Kanpur - Uttar Pradesh (Trainingcentre component yet to be completed)Assistance of Rs. 130.09 Crore has beenprovided under the scheme for theseprojects.TEXTILES CENTRE INFRASTRUCTUREDEVELOPMENT SCHEME (TCIDS)Development of infrastructure facilities atpre-dominantly textile/apparel sector areasis one of the thrust areas of NTxP-2000.For attaining this objective, the TextilesCentre Infrastructure DevelopmentScheme (TCIDS) was launched forupgrading infrastructure facilities atimportant textile centers. Eighteen projectshave been approved under the TCIDS atPashmylarlam-Distt. Medak, and Sircilla-Distt. Karimnagar (Andhra Pradesh),Panipat (Sector 29, Phase-II, Haryana),Indore (Madhya Pradesh), Jassol, Balotra-Bithuja belt Barmer Distt. And Paali(Rajasthan), Narol-Shahwadi-AhmedabadCity, SEWA Trade Facilitation Centre,Ahemdabad and Pandesara-Surat(Gujarat), Tirupur, Kancheepuram andCauvery Hi-tech Weaving Park,Komarapalayam (Tamil Nadu), Solapur,Bhiwandi and Malegaon (Maharashtra),Kannur (Kerala), Zakura (Jammu &Kashmir) and Pilkhuva (Uttar Pradesh).Five Projects completed - SEWA-Gujarat,Kannur-Kerala, Bhiwandi-Maharashtra,Jasol-Rajasthan and Tirupur - Tamil Nadu.Assistance of Rs.209.63 Crore has beenprovided under the scheme for theseprojects.SCHEME FOR INTEGRATED TEXTILEPARKS (SITP)The 'Scheme for Integrated Textile Parks(SITP)' is being implemented to facilitate59

ministry of textilesA view of Apparel Unitsetting up of textile units with appropriatesupport infrastructure. IndustryAssociations / Group of Entrepreneursare the main promoters of the IntegratedTextiles Park (ITP).Scope of the SchemeThe scheme targets industrial clusters/locations with high growth potential, whichrequire strategic interventions by way ofproviding world-class infrastructuresupport. The project cost covers commoninfrastructure and buildings for production/support activities, depending on the needsof the ITP. The components of an ITPare:(a) Group A - Land.(b)Group B - Common Infrastructurelike compound wall, roads, drainage,water supply, electricity supplyincluding captive power plant, effluenttreatment, telecommunication linesetc.(c)(d)(e)Group C - Buildings for commonfacilities like testing laboratory, designcenter, training center, trade center/display center, ware housing facility/raw material depot, crèche, canteen,workers hostel, offices of serviceproviders, labour rest and recreationfacilities etc.Group D - Factory buildings forproduction purposes.Group E - Plant & machinery.The total Project Cost for the purpose ofthis Scheme includes the cost on accountof components of ITP, as listed underGroups A, B, C and D above, providedthe ownership of the factory buildingsvests with the SPV. The SPV has,however, have the option of seekingfinancial support from Government ofIndia for components under Groups B andC only, if factory buildings are individuallyowned.60

annual report 2010-11Funding PatternThe total project cost, as indicated above,is funded through a mix of Equity/Grant -from the Ministry of Textiles, StateGovernment, State Industrial DevelopmentCorporation, Industry & ProjectManagement Consultant and Loan - fromBanks / Financial Institutions. TheGovernment of India's (GOI) support underthe Scheme by way of Grant or Equity islimited to 40% of the project cost subjectto a ceiling of Rs. 40 crore. However, GOIsupport will be provided @90% of theproject cost subject to a ceiling of Rs. 40crore for first two projects in the States ofArunachal Pradesh, Assam, Manipur,Meghalaya, Mizoram, Nagaland, Tripura,Sikkim and Jammu & Kashmir.Progress of implementationForty (40) textiles park projects havebeen Snactioned by the Ministry ofTextiles. State-wise sanction of project is- Andhra Pradesh (5), Gujarat (7),Karnataka (1), Madhya Pradesh (1),Maharashtra (9), Punjab (3) Rajasthan(5), Tamil Nadu (8), West Bengal (1) and. These Parks would have facilities forspinning, sizing, texturising, weaving,processing, apparels etc. The estimatedproject cost (for common infrastructureand common facilities) is Rs. 4193.65Crore, of which Government of Indiaassistance under the scheme would beRs. 1419.69 Crore. 2292 entrepreneurswill put up their units in these parkscovering an area of 4307.97 Acre. Theprojected investment in these parks is Rs.19,456.90 Crore and estimated annualproduction is Rs 33568.50 Crore. Afterthese parks are fully operational therewould be employment available for 7.50lakh persons (3 lakh direct & 4.50 indirect).So far assistance of Rs. 882.60 Crore hasbeen provided for execution of theseprojects. The promoters of these textilespark projects have brought in Rs.1000Crore (approx.) as their contribution. Fourprojects have been completed - Brandix& Pochampally Handloom Park Ltd.-Andhra Pradesh, Gujarat Eco Textile Park-Gujarat and Palladam Hi-Tech WeavingPark - Tamil Nadu and production hasbeen started in 24 out of 40 projects.INTEGRATED SKILL DEVELOPMENTSCHEME FOR THE TEXTILES &APPAREL SECTOR, INCLUDING JUTE& HANDICRAFTSOBJECTIVES●●●●●To address the trained manpowerneeds of textiles and related segmentsincluding Handicrafts, Handlooms,Sericulture, Jute, Technical Textilesetc, by developing a cohesive andintegrated framework of training basedon the industry needs. Addressingthis need is critical for enhancing thecompetitiveness of the industry in theglobalised economy.To increase the above, whilesimultaneously ensuring sufficientflexibility to meet the dynamic needsof these segments over a period ofthe next five years.To create a trainers' pool byconducting the advance trainingprogrammes at a clusterlevel.employability of residents of thetarget areas through imparting ofskills in the above segments.To ensure that the scheme is sodesigned as to cater to the widerange of skill sets required in varioussegments as listed.To ensure training in designdevelopment programmes, which iscritical for handloom weavers/handicraft artisans/jute artisans, tohelp them produce diversifiedproducts with innovative uses andimproved quality to meet changingmarket trends.61

ministry of textilesSalient Features of the Scheme●●●●●●The Scheme would work on the basicprinciple of leveraging on existingresources and infrastructure asadvised by the Planning Commission.Further, private sector participationwould also be encouraged.The Scheme would target to trainapproximately 2.56 lakh personsduring 2010-11 and 2011-12.It would cover all segments underthe ambit of the Ministry, viz.i) Textiles and Apparelii) Handicraftsiii) Handloomsiv) Jutev) Sericulturevi) Technical TextilesAll facets of skill development will becovered viz. Basic Training, Skillupgradation, Advanced Training inemerging technologies, Training ofTrainers, orientation towards moderntechnology, retraining, skillupgradation, managerial skill,entrepreneurship development etc.The training programme will bedesigned based on industry demandin different segments. The emphasiswill be on measurable outcomes,wherein it will be ensured that allsuccessful trainees are certifiedthrough an accredited agency. Thetraining institutions supported underthe scheme shall be required toenter into contract with a privatepartner for part funding as well asdesigning of the courses to besupported under this scheme.Private sector participation will beensured, and outcomes will bestrengthened by incentivising trainingwhere the trainees get employed/self-employed after training isimparted.●●●●The average cost per trainee (for thegovernment) to be borne through theScheme would be approximatelyRs.7300/-.The Govt will meet 75% of the totalcost of the project, and balance 25%would be met from Fee/IndustryContribution. However, in courses/programmes (of Component - I)where it is not feasible to organisethe beneficiary contribution, theEmpowered Committee shall beauthorised to approve a higher levelof government assistance.A budget line for a new HRDScheme under new initiatives of theMinistry of Textiles already exists,which will be operated for thisscheme. However, since theapproved outlay for all new schemesof the Ministry during the EleventhPlan is presently Rs.229 crores, thescheme has been formulated to runpilot projects in the first two years,do an evaluation and thereafterscale up the operations in theremaining three years.A Mid-term evaluation would becarried out at the end of the first 2years to make mid-coursemodifications in the Scheme asrequired. The evaluation would becarried out through a reputedindependent agency. The Schemealso provides for an MIS system toensure transparency, a Skillsexchange and an end of term ImpactAssessment by an independentagency.The Physical & Financial Targets of theScheme during 2010-11 & 2011-12 aregiven at table 4.8.The Financial Outlays of the Scheme isgiven at table 4.9.62

annual report 2010-11Table 4.8Physical (000 persons) Financial (Rs Crores)Sector Year 1 Year 2 Total Year 1 Year 2 TotalTextiles (TRA/PSC) 8.60 17.20 25.80 10.57 13.54 24.10Apparel (ATDC) 26.68 38.95 65.63 44.29 44.04 88.33Handicraft 22.00 35.00 57.00 16.25 25.27 41.52Handloom 9.20 17.40 26.60 5.83 11.23 17.05Jute 7.20 12.15 19.35 2.58 4.01 6.59Sericulture 1.75 1.95 3.70 0.90 0.70 1.60Technical Textiles 8.80 13.20 22.00 9.15 9.15 18.30PPP 11.00 25.00 36.00 8.25 18.75 27.00Total 95.23 160.85 256.07 97.82 126.68 224.50Add Admin/Monitoring & Evaluation Cost 1%+1% 228.99Table 4.9Financial OutlaysSector Financial (Rs Crores) Govt. Non Govt TotalYear 1 Year 2 Contribution Contribution ResourcesTextiles (TRA/PSC) 10.57 13.54 24.10 6.03 30.13Apparel (ATDC) 44.29 44.04 88.33 22.08 110.42Handicraft 16.25 25.27 41.52 2.19 43.71Handloom 5.83 11.23 17.05 0.90 17.95Jute 2.58 4.01 6.59 0.35 6.93Sericulture 0.90 0.70 1.60 0.08 1.69Technical Textiles 9.15 9.15 18.30 4.58 22.88PPP 8.25 18.75 27.00 6.75 33.75Total 97.82 126.68 224.50 42.95 267.45Add Admin/Monitoring& Eval Expenses 99.77 129.22 228.99 42.95 271.9463

64ministry of textiles

annual report 2010-11CHAPTER VTHE COTTON ANDMAN-MADE FIBRE ANDFILAMENT YARN INDUSTRY65

66ministry of textiles

annual report 2010-11CHAPTER VTHE COTTON AND MAN-MADE FIBRE ANDFILAMENT YARN INDUSTRYCotton is one of the principal cropsof the country and is the majorraw material for domestic textileindustry. It provides sustenance to millionof farmers as also the workers involved incotton industry, right from processing totrading of cotton. The Indian textile industryconsumes a diverse range of fibres andyarn, but is predominantly cotton based.The ratio of the use of cotton to manmadefibres and filament yarns by thedomestic industry is about 56:94. IndianTextile Industry has an overwhelmingpresence in the economic life of thecountry. Apart from providing one of thebasic necessities of life, the textile industryalso plays a pivotal role through itscontribution to industrial output,employment generation and the exportearnings of the country. It contributesabout 14% to the industrial production,4% to the GDP and 14.42% to thecountry's export earnings. The textilesector is the second largest provider ofemployment after agriculture. Hence,growth and all around development ofcotton and cotton industry has a vitalbearing on the overall development of theIndian economy.ACREAGE UNDER COTTONCULTIVATIONAcreage under cotton in India had beencontinuously increasing. The cottonacreage in 2009-10 (October-September)had reached a record level of 103.29 lakhhectares as against 94.06 lakh hectaresin previous year.Approximately 65% of Indian's cotton isproduced on rainfed areas and 35% onirrigated lands. Cotton farmers in Indiahave been showing increasing inclinationin bringing more and more areas under Btcultivation, which has helped them inincreasing their net earning through higheryields and lower cost on pesticidesconsumption. Acreage under Bt. Cotton inthe country is continuously increasingyear by year. During cotton season 2009-10, the acreage under Bt cultivation hadbeen around 81 lakh hectares as against68 lakh hectares in the previous year. Theshare of Bt. Cultivation in 2009-10constitute around 79% of the total acreageas against 73% during last year.INDIAN COTTON VARIETIESIndia is the only country to grow all fourspecies of cultivated cotton Gossypiumarboreum and herbaceum (Asian cotton),G.barbadense (Egyptian cotton) and G.hirsutum (American Upland cotton).Gossypium hirsutum represents 90% ofthe hybrid cotton production in India andall the current Bt cotton hybrids areG.hirsutuim. India produces large numberof cotton varieties and hybrids. Thoughthe number of varieties in cultivationexceeds seventy-five, 98% of theproduction is contributed by about 25varieties only.COTTON PRODUCTION ANDPRODUCTIVITYCotton is produced in India in three zonesviz., Northern zone comprising the Statesof Punjab, Haryana and Rajasthan, Centralzone comprising the States of67

ministry of textilesMaharashtra, Madhya Pradesh andGujarat and Southern zone comprisingthe States of Andhra Pradesh, Karnatakaand Tamil Nadu. Besides these nineStates, cotton cultivation has gainedmomentum in the eastern State of Orissa.With increased acreage and advent of Btcultivation, the country has achieved cottonproduction of 5.02 million tons in cottonseason 2009-10 as against 4.93 milliontons in the previous year. The country hasonce again retained the position as thesecond largest cotton producing countryin the world, after China.The adverse agro-climatic conditions,insufficient rains in certain parts hadaffected the cotton yield during the year2009-10 and the same had been at 488kgs per hectare as against 524 kgs perhectare during cotton year 2008-09.The higher cotton production in the countryfor the fifth consecutive year has beendue to significant increase in acreageunder Bt cultivation. The State-wiseproduction of cotton during 2007-08, 2008-09 and 2009-10 cotton years (October-September) are given at table 5.1.DEMAND AND SUPPLY SITUATIONIn cotton season 2009-10, with expectedsigns of improvement in the globaleconomy, the demand for raw cotton andfor finished products like yarn, fabrics andgarments, have improved bothdomestically and world over. With this, asalso with improved operating profitmargins, most of the textile mills hadbecome active in purchasing their cottonrequirements, Improvement in productionacross product lines has been supportedby revival in the demand as well asTable 5.1Year 2007-08 2008-09 2009-2010State Area Prod Yield Area Prod Yield Area Prod YieldPunjab 6.04 20.00 583 5.27 17.50 564.52 5.36 14.25 488.41Haryana 4.83 15.00 563 4.56 14.00 521.93 5.07 14.75 494.58Rajasthan 3.69 9.00 416 3.02 7.50 422.19 4.44 11.00 421.17North total 14.56 44.00 536 12.85 39..00 515.95 14.87 40.00 469.94Gujarat 24.22 110.00 757 23.54 90.00 649.96 26.25 98.00 634.91Maharashtra 31.95 62.00 330 31.42 62.00 335.46 35.03 63.00 296.03Madhya Pradesh 6.30 20.00 539 6.25 18.00 489.60 6.04 15.00 381.58Central total 62.47 192.00 520 61.21 170.00 472.15 67.32 176.00 435.48Andhra Pradesh 11.33 46.00 714 13.99 53.00 644.03 14.83 52.00 644.43Karnataka 4.03 8.00 351 4.08 9.00 375.00 4.27 9.00 378.22Tamil Nadu 0.99 4.00 654 1.09 5.00 779.82 1.14 5.00 817.31South Total 16.35 58.00 621 19.16 67.00 594.47 20.24 66.00 592.70Others 0.76 1.00 425 0.58 1.50 439.66 01.00 314.81TOTAL 295.00 0.26 0.50 326.92 0.54 01.00 361.70Loose lint 12.00 12.00 - - 12.00 -GRAND TOTAL 94.14 307.00 560 94.06 290.00 524.13 103.29 295.00 488.0568

annual report 2010-11significant capacity additions/modernizationinitiatives. As a result, the domestic cottonconsumption in cotton season 2009-10had increased substantially by around 9%to 4.25 million tons as against 3.89 milliontons in the previous year.EXPORT & IMPORT OF COTTONExports of cotton from the country areunder Open General Licence (OGL) sinceJuly, 2001. The International cotton pricesin cotton season 2009-10 has been higherthan domestic prices and there was gooddemand for Indian cotton, especially fromneighbouring countries like China, Pakistanand Bangla Desh. As a result, cottonexports from the country during the year2009-10, had gone up significantly to 1.41million MT (8.30 million bales of 170kgseach) as against 0.60 million metric tons(3.50 million bales) in previous year.Government of India since April 9, 2010had omitted "Raw Cotton" from theexemption category with imposition ofcustom duty at the rate of Rs. 2500 pertone to avoid disruption in supply chain ofcotton in the country till the end of cottonseason 2009-10.However, the Government of India hasdecided to allow the exports of cottonunder OGL without duty effect from 1stOctober, 2010 for the cotton season2010-11.Imports of cotton into India are underOpen General Licence (OGL) since April1994 and since July 2008, the Governmentof India had abolished the import duty of10% alognwith countervailing duty of 4%on cotton imports. Thus Indian mills nowimport cotton without any restrictions fromanywhere in the world.The Imports during the cotton season2009-10 are estimated at 0.12 million MT(0.70 million bales of 170kgs) as against0.17 million metric tons (1.00 million balesof 170 kgs) during the previous year. Theimports mainly comprise of ELS.The details of exports and imports ofcotton during last five years are given attable 5.2.PRICE TREND OF COTTON DURING2009-10Initially during the cotton season 2009-10,the opening cotton prices were lower tocertain medium and long staple varietiesfor a short period of one month by 11%to 18% as compared to the openingprices of previous year. However, fromTable 5.2EXPORTSYear Qty. (in lakh bales of Value in Rupees / crores170 kgs each)2004-05 9.14 657.342005-06 47.00 3951.352006-07 58.00 5267.082007-08 88.50 8365.982008-09 35.00 3825.102009-10 83.00 NAQuantity figures as per CAB ValueFigures as per DGCIS Kolkata69

ministry of textilesTable 5.2IMPORTSYear Qty. (in lakh bales of Value in Rupees / crores170 kgs each)2004-05 12.17 1338.042005-06 5.00 695.772006-07 5.53 752.292007-08 6.38 986.332008-09 10.00 NA2009-10 7.00 NAQuantity figures as per CAB ValueFigures as per DGCIS Kolkatathe third week of October, 2009, In thewake of improvement in global economy,the domestic cotton prices also startedrising. The cotton prices reached a peaklevel in September, 2010 and were higherby around 12% to 52% as compared toprevious year. Cotton prices during 2009-10 ruled at all time higher than theprevious years.The volatility and uncertainty ininternational prices directly influenceddomestic cotton prices. With the expiry ofMFA in January 2005, the Indian cottonprices are now fully integrated with theInternational cotton prices.INITIATIVES TAKEN BY THEGOVERNMENT OF INDIAIn order to ensure cotton security theGovernment has put in place the followingpolicy interventions in cotton season2010-11:FOR COTTON●●●Registration of cotton export contactwould commence from 1/10/2010instead of 15/09/2010;Actual exports would commence from1/11/2010;The exportable surplus was identifiedas 55 lakh bales;●●There will be no registration after theexportable surplus is registered;The export duty on Cotton at Rs.2500/- per Tonne would be withdrawneffective from October, 1, 2010;FOR COTTON YARNHank Yarn Obligation expanded from 40scounts to 80s counts with effect from31.3.2010.●●●●●●7.67% DEPB incentive on cottonyarn exports was withdrawn witheffect from 21st April, 2010Duty Draw back on cotton yarnobligation was withdrawn w.e.f.29.4.2010Strict monitoring of hank yarnobligation started from 1.4.2010Registration of cotton yarn exportwith the Office of the TextileCommissioner was made mandatoryw.e.f. 9.4.2010Cotton Yarn Advisory Board hasbeen constituted to monitor domesticand international prices of cottonyarnThere shall be no further registrationof cotton yarn export beyond 72070

annual report 2010-11million kgs. for the financial year2010-11.MINIMUM SUPPORT PRICE (MSP)The Cotton Corporation of India Ltd.,undertakes MSP operations on behalf ofthe Government of India ensuringremunerative prices to the cotton growersof the country in the event of prevailingkapas prices falling below the MSP level.The Government of India has fixed thesupport price of two basic varieties ofcotton viz., Medium Staple Length Cottonhaving Staple Length of 24.5 to 25.5 mmwith micronaire value of 4.3 to 5.1 andLong Staple Length Cotton having StapleLength of 29.5 to 30.5 mm with micronairevalue of 3.5 to 4.3 of new crop of SeedCotton (Kapas) of Fair Average Quality(FAQ) for Cotton Season 2009-10(October-September). The support pricefor Medium Staple Length Cotton hasbeen fixed at Rs.2500/- per quintal andthat for Long Staple Length Cotton ofabove classes has been fixed at Rs.3000/- per quintal. Based on the support pricesfor these two basic classes of SeedCotton and taking into account the qualitydifferential, normal price differential andother relevant factors, the support pricesfor other classes of Seed Cotton (Kapas)of Fair Average Quality (FAQ) are fixedby the Textile Commissioner.COTTON ADVISORY BOARDThe Cotton Advisory Board is headed bythe Textiles Commissioner and is arepresentative body of various interestgroups like Government Agencies, CottonGrowers, Textiles Industry and Trade. Itadvises the Government generally onmatters pertaining to production,consumption and marketing of cotton andalso provides a forum for liaison. TheBoard was reconstituted on 5th May,2010 for a period of two years. Atpresent the Board has sixty ninemembers, including official and nonofficialmembers.ORGANIC COTTON ADVISORY BOARDThe Organic Cotton Advisory Board(OCAB) was constituted on 14.10 2008.The OCAB headed by the TextileCommissioner, is a representative bodyof the Central and State Governmentagencies, Certifying agencies, AgricultureUniversities / Research Institutes, Ginning& Pressing Sector, Textile industry andNon official Members. The role andfunctions of the Organic Cotton AdvisoryBoard shall be as under:i. To assess the demand and supplysituation.ii.iii.iv.To recommend subsidy for productionpractices to be followed for cultivationof organic cotton under Mini-MissionII of the TMC / ICDP.To evolve the guidelines for thebasis of certification, delineation/identification of production areas andvarieties suitable for organic farming.Constant analysis - comparativestudies of organic and inorganicfarming on long-term basis.v. Co-ordination with APEDA andNational Organic Farming Institute(NOFI), Faridabad along with itsRegional Station at Jabalpur andNagpur.vi.Coordination with other certifyingagencies.INTERNATIONAL COTTON ADVIOSRYCOTTON COMMITTEE (ICAC)The International Cotton AdvisoryCommittee is an association ofgovernments having an interest in theproduction, export, import andconsumption of cotton. It is an71

ministry of textilesintergovernmental organization composedof countries that produce, consume andtrade cotton and is designed to promotecooperation in the solution of cottonproblems, particularly those of internationalscope and significance. The ICAC isworking with WTO to facilitate internationaltrade discussions. ICAC is a scientific andeconomic organization devoted toimprovement of the world cotton sectorand it is not a political body The functionsof the International Cotton AdvisoryCommittee, as defined in the Rules andRegulations, are:i. To observe and keep in close touchwith developments affecting the worldcotton situation.ii.iii.iv.To collect and disseminate complete,authentic, and timely statistics onworld cotton production, trade,consumption, stocks and prices.To suggest, as and when advisable,to the governments represented, anymeasure the Advisory Committeeconsiders suitable and practicablefor the furtherance of internationalcollaboration directed towardsdeveloping and maintaining a soundworld cotton economy.To be the forum of internationaldiscussions on matters related tocotton prices.The 69th meeting of the ICAC, took placein Lubbock, Texas, USA from September20-25, 2010.COTTON CORPORATION OF INDIA(CCI)The role assigned to the CCI under theTextile Policy of June 1985 was:●To under take price supportoperations whenever the marketprices of kapas touch the support●●prices announced by the governmentof India without any quantitative limit.To undertake commercial operationsonly at CCI 's own risk; andTo purchase cotton to fulfill exportquotas given to CCI.The above role of the CCI continuedunder the New Textile Policy of 2000.However, the last stated function no longeris relevant as export of cotton is now freeand he Government is releasing no quotas.Nevertheless CCI purchases cotton evennow to under take export of cotton.Besides the above role CCI has alsobeen designated as the nodal agency forimplementation of Mini Missions III and IVof the Technology Mission on Cotton forimprovement and Development of MarketYards and Modernization of Ginning andPressing factories and thereby improvingthe quality of cotton by reducingcontamination of cotton and ensuring betterprices to the growers.In addition to the above the Ministry ofAgriculture has also nominated the CCIas the implementing agency forundertaking Front Line Demonstrationsunder Mini Mission II of the TMC.Under its developmental activities the CCIhas been implementing the ContractFarming Project in all the cotton growingStates.TECHNOLOGY MISSION ON COTTONThe Government of India commissionedthe Technology Mission on Cotton (TMC)on February 21, 2000. The Mission aimsto address the issues of raisingproductivity, improving quality and reducingthe cost of production and thus providethe much-needed competitive advantageto the textile industry along with ensuringattractive returns to the farmers. The XPlan scheme was operational upto72

annual report 2010-1131.03.2007. However, the Scheme MM IIIand IV of TMC has been further extendedin the 11th Five Year Plan for two yearsi.e. upto 31.3.2009 to accomplish targetand completion of the projects.The Mission comprises of four MiniMissions, which are jointly beingimplemented by the Ministries ofAgriculture and Textiles. MM-I relates toResearch and Development on Cottonand MM-II is Dissemination of technologyto farmers are being undertaken by theMinistry of Agriculture.Ministry of Textiles is the Nodal Agencyfor Mini Missions III & IV of TMC. MiniMission III aims to improve the quality ofcotton, particularly in respect of trash,contamination etc. by improving themarketing infrastructure in the marketyards for cotton by providing better facilitiesof cotton producing facilities by upgrading/modernizing the existing Ginning andPressing factories resulting in cottonprocessing with minimum or nocontamination to achieve better valueproducts like yarn, cloth, garments madeupsetc. Target as well as achievementmade under MM-III and MM-IV of TMC isgiven at table 5.3.Table 5.3Objectives Target Achievement(MM-III)Market Yards 250 242(MM-IV)Ginning & Pressingfactories 1011 885With the intervention of MM III and MM IV,the trash content and contamination hasreduced substantially which in turn hasenhanced the export of clean andcontamination free cotton bales to variouscountries branding the Indian Cotton inglobal arena and also benefiting the textilesmills in producing good quality cottontextile. The TMC has been a valuablevehicle to bring the ultimate stakeholdersof cotton textile industry in touch with therelevant advancement so as to increasefarm productively and in turn for themultiplier effect to work on the cottoneconomy as whole. The Mission is aneffort towards the collective cause for theentire cotton economy and cotton textileIndustry.Mini Mission III & IV of TMC havecompleted its tenure.73

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annual report 2010-11CHAPTER VITHE JUTE AND JUTETEXTILES INDUSTRY75

76ministry of textiles

annual report 2010-11CHAPTER VITHE JUTE AND JUTE TEXTILES INDUSTRYTex-Trends India 2011 – A glimpse of Theme Pavilion put up by National Jute BoardThe Jute industry occupies animportant place in the nationaleconomy of India. It is one of themajor industries in the eastern region,particularly in West Bengal. Jute, thegolden fibre, meets all the standards for'safe' packaging in view of being a natural,renewable, biodegradable and eco-friendlyproduct. It is estimated that that the juteindustry provides direct employment to0.37 million workers in organized millsand in diversified units including tertiarysector and allied activities and supportsthe livelihood of around 4.0 million farmfamilies. In addition there are a largenumber of persons engaged in the tradeof jute.In the world perspective, India is themajor producer of both raw jute and juteproducts. Out of the total world productionof Jute, Kenaf and allied fibre of 3.0million tonnes in 2007-08, India produced1.8 million tonnes. In percentage termsIndia accounted for 60% of worldproduction in 2007-08. Global productionof jute and allied fibres is estimated tohave increased by 25% to 3.0 milliontonnes in 2007-08 compared to 2004-05season. Production in India has also77

ministry of textilesincreased by 28% to 1.8 million tonnes in2007-08 over 2004-05.There are 79 composite jute mills in India.Out of the total 79 jute mills, 62 jute millsare located in West Bengal, 3 each inBihar and U.P., 7 in Andhra Pradesh and1 each in Assam, Orissa, Tripura andChattisgarh. Ownership- wise division is:-6 mills are under Government of India'sP.S.U., 1 mill (Tripura) is under StateGovernment, 2 mills (Assam & NewCentral) are in the co-operative sectorand 70 are privately owned mills.As on 01-01-2010 total number of loomsinstalled in the jute industry stood at48,260 consisting of 22,038 Hessianlooms, 24,093 sacking looms, 1,068 C.B.Clooms and others at 1,061. The installedspindles in jute mills other than 100%export oriented units were 731,408comprising 622,324 fine spindles and109,084 coarse spindles. As on 01-01-2010, installed spindles in 100% exportoriented units stood at 9,482 with finespindles at 6,974 and coarse spindles at2,508. The maximum installed capacity injute mills other than 100% export orientedunits (on the basis of 305 working daysper year) is estimated to be of 2.51 milliontonnes per annum.NATIONAL JUTE POLICYGovernment of India recognized thesignificance of jute in India's economywhich provides sustenance to more than4 million people including jute farmers,workmen, labourers and self employedartisans and weavers, especially in Easternand North-Eastern part of the country,where it is the mainstay of agro basedindustries. World over it has beenrecognized that jute and allied fibresoccupy a unique position as eco-friendly,bio-degradable, renewable natural fibreswith substantial value addition at eachstage of processing. Taking note of thenew opportunities presented by thechanging global environment of integrationin the development of natural fibres, thestrength and weaknesses of the jutesector in India and acknowledging thegrowing demand for diversified andinnovative jute product in the world market,GOI announced the "National Jute Policy- 2005" to redefine the goals andobjectives, focus on thrust areas andsharpen strategy in tune with the timeswith a view to give the jute industry inIndia a fresh impetus in all respect.The main objective of the policy is tofacilitate the jute sector in India to attainand sustain a pre-eminent global standingin the manufacture and export of juteproducts by enabling the jute industry tobuild world-class state-of-the artmanufacturing capabilities in conformitywith environmental standards. The policyseeks to strengthen R&D activities inagricultural practices with public-privatepartnership with a vision to ensureremunerative prices to millions of jutefarmers by enabling them to producebetter quality jute fibre for value addeddiversified jute products and enhance perhectare yield of raw jute.RAW JUTE SCENARIORaw jute crop is an important cash cropto the farmers. Cultivation of raw jute cropprovides not only fibre which has industrialuse, but jute stick which is used as fueland building material by the farmingcommunity. The area under jute cultivationand crop size from 2001-2002 onwards isgiven at table 6.1.There are always significant fluctuationsin the area under jute cultivation in India.The year to year fluctuations arise out ofthree factors namely, (i) fluctuation inrainfall during the sowing season, (ii) theaverage raw jute prices realized duringthe previous jute season, and (iii) thereturns realized from competing cropsduring the previous season. A significant78

annual report 2010-11Table 6.1Year Crop (Lakh MT) Area (lakh / Hectare)2001-02 16.2 10.492002-03 19.8 10.212003-04 16.2 9.592004-05 13.5 9.162005-06 15.3 8.962006-07 18.0 9.492007-08 17.82 9.712008-09 14.76 9.252009-10 16* 9.25**Estimatedarea under jute competes with Aus paddyduring the same season. Hence, year toyear fluctuations in the prices of juterelative to the prices of Aus paddy wouldgenerally influence the relative allocationof land between the two crops.Raw jute is produced mainly in the state ofWest Bengal, Bihar, Assam, Orissa, AndhraPradesh, Tripura and Meghalaya. Statewiseraw jute production during 2008-09and 2009-10 are given at table 6.2.As per the 1st Advance Estimates ofProduction [received from Directorate ofEconomics & Statistics, Department ofAgriculture & Cooperation], the productionof Jute & Mesta in jute year 2010-11(July-June) is expected to reach 102.82 lakhbales (of 180 kgs each), which is around14% more than the production estimatedfor the year 2009-10 by Jute AdvisoryBoard.The supply and demand position of rawTable 6.2(Area in '000 Hect.; Production in '000 bales of 180 k.g per bale; Productivity in Qtls/hect.)State 2008-2009 2009-2010Area Production Productivity Area Production ProductivityAssam 65.9 697.3 10.58 64.5 726.0 11.26Meghalaya 11.6 78.0 6.7 11.3 76.0 6.72West Bengal 594.2 8000.0 13.46 499.6 7225.0 14.46Bihar 151.9 1423.1 9.4 154.9 1255.0 8.10Orissa 30.5 195.5 6.4 25.6 195.0 7.6Andhra Pradesh 41.0 361.0 8.8 23.2 220.0 9.5Tripura 3.0 22.5 7.5 2.0 17.4 8.7Others 27.6 68.4 2.5 25.0 70.0 2.8Total 925.7 10845.8 11.7 781.9 9819.9 12.6*Crop projection as made by Directorate of Jute Development, Ministry of Agriculture, Govt. ofIndia.79

ministry of textilesjute including mesta for the period from2005-06 to 2010-11 is given at table 6.3.JUTE SEEDSBased on the average area of jute in thecountry, the annual requirement of juteseeds is around 50-55 thousand quintal.The average area of jute in West Bengalis little more than 6 lakh hectares and forwhich the annual requirement of jute seedis nearly 35-40 thousand quintal. Thepresent level of certified jute seedproduction can cater to the needs ofnearly 35 per cent of the jute area in theCountry. The public Sector organizationslike National Seeds Corporation,Maharastra State Seeds Corporation, StateFarms Corporation of India are the majorproducer of the jute seed. This apart, theAndhra Pradesh State Seeds DevelopmentCorporation, West Bengal State SeedsCorporation is also involved in jute seedproduction. The total production of seed,mainly certified seed, by the Public Sectororganizations is to the tune of about 25-30 per cent of the total requirement. Therest of the seed is produced by thePrivate Sector organizations.For augmenting supply of certified seeds,Jute Corporation of India has taken thefollowing steps:-● In 2010, JCI had targeted adistribution of 200 MT - 500 MTcertified jute seeds during sowingseason i.e March/ April 2010.● The Subsidy of Rs. 40 per kg wasprovided to jute growers.● JCI distributed 437.580 MT seeds sofar.● JCI aims to distribute 1500 MT ofCertified Jute Seeds in the year 2011through its 171 DPC s along with thehelp of State Cooperative Societiesand Farmers' Club.MINIMUM SUPPORT PRICE (MSP)OPERATIONS FOR RAW JUTE ANDMESTAMinimum Support Price for raw jute andmesta is fixed every year to protect theinterest of farmers. While fixing prices ofdifferent grades, the issue of discouragingproduction of lower grade jute andencouraging production of higher gradesTable 6.3(Qty : In lakh bales of 180 KG of each bale)2005-06 2006-07 2007-08 2008-09 2009-10 2010-11(A) SUPPLYi) Opening stock 14.00 8.00 23.00 22.00 8.00 12.00ii) Jute and Mesta crop 85.00 100.00 99.00 82.00 90.00 107.00iii) Import 7.00 4.00 8.00 2.00 3.00 5.00Total : 106.00 112.00 130.00 106.00 101.00 124.00(B) DISTRIBUTIONiv) Mill consumption 90.00 81.00 99.00 89.00 77.00 95-105v) Domestic/ind.consumption 8.00 8.00 9.00 9.00 10.00 10.00vi) Export Neg Neg Neg Neg 2.00 2.00Total : 98.00 89.00 108.00 98.00 89.00 107-117(C) CLOSING STOCK 8.00 23.00 22.00 8.00 12.00 7-1780

annual report 2010-11jute are taken into consideration so as tomotivate farmers to produce higher gradejute.Jute Corporation of India (JCI), a PSUunder Ministry of Textiles is the nodalagency to undertake support priceoperation for raw jute from the farmers.Raw jute purchased by JCI in associationwith the State Co-operatives during thelast several years is given at table 6.4.The minimum support price is fixed by theGovt. on the basis of recommendations ofthe Commission for Agricultural Costsand Prices (CACP). As per CACP reports,while formulating the agricultural pricepolicy CACP takes into account variousfactors such as cost of production, overalldemand/supply situation, domestic andinternational prices and effect of minimumsupport price on general price level.CACP every year also conducts meetingsof all stake holders to decide MinimumSupport Price. The MSP announced byGovt. of India during the last severalyears are given at table 6.5.Table 6.4YearProcurement of raw jute by JCI (Qty: In '000' Bales)MSP Commercial Total2002-03 1314.0 0.0 1314.02003-04 1118.0 0.0 1118.02004-05 352.0 0.0 352.02005-06 0.0 141.0 141.02006-07 136.0 348.0 484.02007-08 756.0 0.0 756.02008-09 103.7 0.0 103.72009-10 0.0 0.0 0.02010-11 9.6 0.0 9.6Table 6.5Year MSP of TD-5 %age increasegrade of raw jute Ex-Assam (Rs./Quintal) over previous year1998-99 650 14.01999-00 750 15.42000-01 785 4.72001-02 810 3.22002-03 850 4.92003-04 860 1.22004-05 890 3.52005-06 910 2.22006-07 1000 9.92007-08 1055 5.52008-09 1250 18.52009-10 1375 10.02010-11 1575 14.581

ministry of textilesProduction in a revived Jute Mill at Katihar (Bihar)PRODUCTION OF JUTE GOODSDuring 2009-10 (April - March ), totalproduction of jute goods was at 1323.3thousand MT compared to 1633.7thousand MT in the corresponding periodof 2008-09 showing a fall of 19% over theprevious year. Production of jute goods inthe current financial year 2010-11 (April/October 2010) is to the tune of 929.7thousand MT as against 876.3 thousandMT during the corresponding period oflast financial year. The table belowhighlights the production trend of jutegoods from 2001-02 onwards andprojected production for 2010-11 (April-March). Trend in production of jute goodsfrom 2001-02 is given at table 6.6.DOMESTIC OFF-TAKE OF JUTE GOODDuring 2009-10 (April-March) domesticconsumption of jute goods was 1205.0thousand MT as against 1435.6 thousandMT in the corresponding period of 2008-09 recording a fall of 16%. During theCurrent financial year 2010-11 (April-October'10) domestic consumption of totaljute goods is 781.0 thousand MT asagainst 810.1 thousand MT during thecorresponding period of last year. Trendin Domestic Consumption of Jute goodsfrom 2001-02is given at table 6.7.PURCHASE OF B.TWILL BAGSVolume of B.Twill bags purchased bydifferent food grain procuring agenciesduring 2009-10 was 16.73 Lakh bales(5.56 Lakh MT) as against 18.68 Lakhbales (6.21 Lakh MT ) in 2008-09.. In thecurrent financial 2010-11 (upto December),a total quantity of 14.75 Lakh bales (4.90Lakh MT) have been purchased as against82

annual report 2010-11Table 6.6(Qty in : 000 MT)(April-March) Hessian Sacking Carpet Others TotalBackingCloth2001-02 275.3 1034.0 5.0 286.5 1600.82002-03 338.3 1000.0 4.7 278.8 1621.82003-04 305.2 979.3 4.7 282.1 1571.32004-05 310.3 992.0 4.0 306.8 1613.12005-06 320.0 1007.5 6.2 248.5 1582.22006-07 250.3 874.7 2.9 228.4 1356.32007-08 350.3 1143.0 6.0 277.0 1775.92008-09 297.8 1071.4 4.1 260.4 1633.72009-10 206.5 921.6 2.2 193.0 *1323.3Apr-Oct, 2010 153.9 618.9 2.6 154.3 929.7Apr-Oct, 2009 135.7 620.1 1.2 119.5 876.32010-11(Projected) 265.8 1062.9 4.8 266.5 1600.0*The unusual fall in production during 2009-10 is attributable to strike in jute mill in West -Bengal w.e.f.14-12-09 to 12-02-10.Table 6.7(Qty in "000MT)(April-March) Hessian Sacking Carpet Others TotalBackingCloth2001-02 243.0 1021.4 0.9 195.5 1460.82002-03 251.3 954.8 1.9 165.7 1373.72003-04 253.3 910.0 0.9 178.7 1342.92004-05 244.8 972.4 0.5 176.5 1394.22005-06 237.6 974.2 0.7 165.3 1377.82006-07 209.1 854.4 0.5 152.7 1216.22007-08 271.4 1101.9 1.4 168.6 1543.32008-09 249.8 1043.0 0.3 142.5 1435.62009-10 182.6 879.7 1.0 141.7 1205.0Apr-Oct, 2010 110.5 590.5 0.3 79.7 781.0Apr-Oct, 2009 119.3 600.2 0.7 89.9 810.12010-11(Projected) 189.4 1012.3 0.5 136.6 1338.815.31 lakh bale ( 5.09 lakh MT ) during.the corresponding period of last financialyear.EXPORT PERFORMANCEDuring 2009-10 (April - March) ,exports oftotal jute goods was at 110.5 thousand83

ministry of textilesMT valued at Rs 844.70 crore as against199.8 thousand MT valued at Rs 1216.16crore in the corresponding period of lastfinancial year 2008-09.Export of jute goodsduring 2008-09 fell by 2.2% in terms ofquantity & 6.8% in terms of value. Duringcurrent financial year (upto September)total export of jute goods stands at 117.2thousand MT valued at Rs 762.07 croreas against 66.3 thousand MT valued Rs409.42 crore in the corresponding periodof last financial year. Trend in export ofjute goods from 2005-06 to 2009-10 aregiven in the table 6.8.Export of JDP have increased in 2007-08as compared to 2006-07. Due to recessionthe export has dropped to Rs 2308.28Table 6.8Quantity In '000' MT.Value Rs in Crores2006-07 2007-08 2008-09 2009-10Item Qnty Value Qnty Value Qnty Value Qnty ValueHessian 122.2 376.12 67.8 299.83 53.0 419.53 31.3 174.19Sacking 31.6 103.25 30.0 91.38 53.2 209.54 26.5 100.38CBC 0.1 0.65 0.0 0.0 0.0 0.0 0.0 0.0Yarn 78.3 273.15 92.1 285.18 82.9 216.92 44.4 179.34Others 10.6 301.99 14.4 467.18 10.7 370.17 8.3 390.79Total 242.8 1055.16 204.3 1143.57 199.8 1216.16 110.5 844.70%Change overlast year -15% -11% -15.8% 8% -2.2% -6.8% -44.6% -30.5%ItemApril-September2009-2010 2010-2011 %Change 2009-2010 2010-2011 %ChangeHessian 20.00 37.7 88.5% 89.31 162.43 81.87%Sacking 19.7 20.1 2.03% 62.92 78.57 24.87%Yarn 21.7 59.8 175.57% 71.99 291.68 305.16%JDPs - - - 152.10 195.28 28.38%Others 4.9 5.6 14.38% 33.10 34.11 3.05%Total 66.3 117.2 76.77% 409.42 762.07 86.13%Projected Export during 2010-11Qnty ( In '000 MT ) Value ( Rs in Crores )Hessian 63.8 325.56Sacking 35.7 135.70Yarn 128.0 604.15JDP - 417.00Others 11.6 70.17Total 239.04 1552.5784

annual report 2010-11million during 2009-10 (April-March) whichis given in the table below. Floor covering&shopping bags are the two majorcomponent which together accounts fornearly 97% of JDP exports. USA is thesingle biggest market for Indian juteDiversified product importing JDP worthRs 83.96 Crores. USA, UK, Germany, Italy& Spain are the major importing countriesaccounting for 67 % of total JDP exportduring 2010-11 (April-May). Product-wiseexport of Jute Diversified Production fromIndia is given at table 6.9.IMPORT OF JUTE GOODS AND RAWJUTEDuring the year 2009-10 volume of importof jute goods stood at 112.8 thousand MTvalued at Rs 453.20 crores as against70.94 thousand MT valued at Rs 202.99crores in 2008-09. This implies a rise of59% in terms of quantity and 123% interms of value over 2008-09. Import ofraw jute has also increased. Volume ofimport of raw jute during 2009-10 stood at82.9 thousand MT valued at Rs 197.42crores as against 59.04 thousand MTvalued at Rs 89.00 crores in 2008-09.Thus import of raw jute both in terms ofquantity and value have increased by40% and 122% respectively. Import ofjute goods during 2010-11(April-October)however decreased by 15.85% to 46.2thousand MT as against 54.9 thousandMT in the corresponding period of lastyear. Import of raw jute has also decreasedby 48.44 % to 31.5 thousand MT asagainst 61.1 thousand MT during thecorresponding period of last year. Trendin Import of jute goods and raw jute isgiven in the table 6.10.PRICE SITUATION OF RAW JUTEThe jute season 2009-10 began with acarry over stock of 8.00 lakh bales withestimated production of 90.0 lakh balesand import of 3 lakh bales making a totalavailability of 101.00 lakh bales. Therewas no MSP operation in this year as theprices were above the MSP. The juteseason 2010-11 began with a carry overstock of 12.00 lakh bales with estimatedproduction of 107.00 lakh bales and importof 5 lakh bales making a total availabilityof 124.00 lakh bales. There has been noMSP operation so far this year.Table 6.9( Value Rs Million )Product 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11(April-May)Floor covering 2133.90 1675.70 1825.80 1242.40 1268.90 203.25Hand & shopping bag 880.03. 703.10 1122.80 1656.90 981.32 166.55Wall hanging 4.61 4.20 2.20 1.10 1.24 0.06Gift articles 21.63 9.27 11.10 4.80 17.62 8.01Decorative fabrics 22.91 21.90 16.80 17.20 21.47 1.61Others 62.84 150.63 6.80 23.7 17.73 0.07Total JDPs 3125.92 2564.80 2985.50 2945.40 2308.28 379.55Total jute goods export 11862.40 10551.60 11435.7 12161.60 8594.64 3014.24% share of JDP exportto jute goods export 26 % 24% 26% 28% 27% 13%Source: NJB. Bulletin85

ministry of textilesTable 6.10Quantity In '000' MT.Value Rs in CroresApril-March 2006-07 2007-08 2008-09 2009-10Qnty Value Qnty Value Qnty Value Qnty ValueRaw Jute 94.36 150.31 171.80 196.72 59.04 89.00 82.9 197.42Jute Product 60.93 171.63 57.68 138.09 70.94 202.99 112.8 453.20Total 155.29 321.94 229.48 334.81 129.98 291.99 195.7 650.62% changeOver last year -27% -11% 47% 4.0% 43.36% -12.78% 51.4% 122.8%ItemApril-October2010 2011 % change 2010 2011 % changeover lastover lastyearyearRaw Jute 61.1 31.5 -48.44% 144.62 103.2 -28.64%Jute Products 54.9 46.2 -15.85% 200.7 205.7 2.49%Total 116.0 77.7 -33.01% 345.32 308.9 -10.54%Source: Customs, West Bengal through NJB.INCENTIVE TO JUTE SECTOR(A)JUTE PACKAGING MATERIAL ACTJute Packaging Material (Compulsory Usein Packaging Commodities) Act, 1987 hasbeen enacted to provide for thecompulsory use of jute packaging materialin the supply and distribution of certaincommodities in the interests of productionof raw jute and jute packaging material,and of persons engaged in the productionthereof, and for matters connectedtherewith.Clause 4 (1) of the Jute Packaging Material(Compulsory Use in PackagingCommodities) Act, 1987 empowers theCentral Government to constitute StandingAdvisory Committee consisting of suchpersons as have, in the opinion of thatGovernment, the necessary expertise togive advise in the matter of determiningthe commodity or class of commodities orpercentages thereof in respect of whichjute packaging material shall be used intheir packing.As per clause 5 of the Jute PackagingMaterial (Compulsory use in PackagingCommodities) Rule, 1987 the saidcommittee shall meet at least once a yearto review the commodities or class ofcommodities or percentage thereofrequired to be packed in jute packagingmaterial under section 3 of the JPM Act.The Standing Advisory Committee shallafter considering the following mattersindicates its recommendations to theCentral Government:-●●●●the existing level of usage of jutematerial;the quantity of raw jute available;the quantity of jute materials available;the protection of interests of persons86

annual report 2010-11●●engaged in the jute industry and inthe production of raw jute;the need for continued maintenanceof jute industry;such other matters as the StandingAdvisory Committee may think fit.Central Government after considering therecommendations of SAC, may from timeto time, issue orders under section 3(1) ofthe JPM Act for compulsory use of jutepackaging material or certain commodityor class of commodities or percentagesthereof, if it is satisfied that it is necessaryto do so in the interest of production ofraw jute and jute packaging material.Based on the recommendation of theSAC, the Central Government will decidethe norms of compulsory packaging forthe jute year 2010-11 (July-June) underthe JPM Act, 1987, prescribing the normsof compulsory packaging for bothfoodgrains & sugar. Accordingly, an orderwill be issued in the Official Gazette underthe JPM Act, 1987, which will be valid till30.06.2011.It was further stipulated that the followingshall be exempted from the purview ofthis order:-a) Sugar fortified with vitamins.b) Packaging for export of thecommodities.c) Small consumer packs of 25kilograms and below.d) Bulk Packaging of more than 100 kg.The level of reservation recommended bythe Government in the past few years isgiven at table 6.11.For the last Kharif : 2010-11 season, atotal quantity of 14.11 lakh bales hasbeen projected by different food grainsprocuring agencies for procurement duringMay, 2010 to November, 2010. Out of thisprojected quantity, 11.41 lakh bales havebeen covered as per indents received bythis office. As on 30-11-2010, the entirecovered quantity have been inspected &passed for dispatch.For the forthcoming Rabi: 2011-12 season,the indenters have so far indicated theirrequirements of jute bags at 6.94 lakhbales. As per projection of DGS&D, thisoffice has covered 2.16 lakh bales duringNovember & December, 2010. As on31-12-2010, 1.74 lakh bales have beeninspected & passed.(B)TECHNOLOGY UPGRADATIONFUND SCHEME (TUF)The objective of the scheme is to sustainand improve the competitiveness of thetextiles/jute and overall long term viabilitythrough technology upgradation which isoperational w.e.f 01-4-1999. Thecumulative position of sanction anddisbursement under TUF as on 31-03-2010 is given below in the following table6.12.Table 6.11Mandatory Jute Packaging Orders issued under JPM Act, 1987Order date Year Sugar Foodgrains24-07-2006 2006-07 100% 100%09-08-2007 2007-08 100% 100%01-09-2008 2008-09 100% 100%22-09-2009 2009-10 100% 100%27-08-2010 2010-11 100% 100%87

ministry of textilesTable 6.12(Rs in Crores)As on No of Total Amount SanctionedDisbursedApplication cost of of loan No of Amount No of Amountreceived projects required applications application31.08-2007 34 281.75 144.46 31 136.84 29 128.2230-09-2007 34 281.75 144.46 31 136.84 29 128.2231-10-2007 34 281.75 144.46 31 136.84 29 128.2230-11-2007 34 281.75 144.46 31 136.84 30 128.6031-12-2007 35 285.11 146.96 32 139.34 30 128.6031-01-2008 35 285.11 146.96 32 139.34 30 128.6031-03-2009 46 456.43 348.29 - 343.29 46 333.4931-03-2010 53 535.62 405.89 53 400.88 53 390.69Source: Office of Textile Commissioner.(C)JUTE TECHNOLOGY MISSIONThe Government of India launched JuteTechnology Mission (JTM) spanning aperiod of 5 years during the 11th FiveYear Plan period (2007-08 to 2011-12) foroverall development of the jute industryand growth of the Jute Sector. The JuteTechnology Mission with a total outlay ofRs. 355.5 crores has four Mini Missionspertaining to agriculture research andseed development, agronomic practices,harvest and post harvest techniques,primary and secondary processing of rawjute, diversified product development andmarketing and distribution.The Jute Technology Mission has beendivided into four Mini Missions and theimplementing agencies of each Missionare given at table 6.13.Details of activities and the progresses ofthe four Mini Missions under JTM are asfollows:Mini Mission-IIn order to increase the yield of jute andmesta, some new breeding methods andtechniques have been adopted as under:-i) Plant type breeding,ii) Heterosis breeding,iii) Resistance breeding &iv) Quality breeding.In addition to conventional breeding,Table 6.13Mission Implementing Agencies Fund AllottedMini Mission-I Ministry of Agriculture(ICAR) 705.78Mini Mission-II Ministry of Agriculture (DARE) 4,990.00Mini Mission-III Ministry of Textiles (JCI) 3,860.00Mini Mission-IV Ministry of Textiles (NJB) 26,000.00Total 35555.7888

annual report 2010-11mutation breeding, inter-specific crossesand biotechnological approaches will alsobe explored. The following activities willalso be undertaken:-●●Low cost Technology for developmentof suitable agronomic practices formaximizing income from jute vis-àvisother crops in the cropping systemas a whole.Bio-mass level- while developing thetechnology, the biomass level of thecrop should be kept in mind so as toensure growth with stability of themicro-economy of the farmer.The total funds allotted for MM-I are Rs.705.78 lakhs.Mini Mission-IIIn order to achieve best of production andmanagement of technologies for jute andallied fibres crop and their post-harvesttechnology to accelerate the productionand quality improvement of the crops thefollowing activities have been adopted:-i) System approach,ii)iii)iv)Adaptive Research of Farm Trials,Strengthening Research - ExtensionLinkage,Frontline Demonstration,v) On Farm Package Demonstration,vi)vii)Industry-Agriculture Linkage,Application of Bio-technology tools toimproving retting efficiency,viii) Planning and Implementation ofDevelopment Programme,ix)Special Programme for finer fibreandx) Integrated Jute Cultivation.The total funds allotted for MM-II areRs.4990.00 lakhs.Mini Mission-IIIUpgradation of infrastructure for:i) Weighment facility,ii) Sale within Market facilities,iii) Auction/Sale Platforms, sheds,Assortment sheds, Baling Presses,Bale Godown, etc.Organizational infrastructure:i) Market linkages,ii) Market information system,iii) Bank credit option to prevent distresssale.The total funds allotted for MM-III is Rs.3,860.00 lakhs.Progress Status as on 31.10.2010 (Table6.14 - 6.18)Scheme-I : Development of MarketYards:Physical Target : 12Project Outlay : Rs. 12.20 Crore (Rs.7.98crores Central Govt. : Rs. 4.22 croresState Govt.)Scheme-II : Construction ofDepartmental Purchase Centers:Physical Target : 40Project Outlay: Rs. 44.00 Crore (100%Central Govt.)Work Order issued :1. Dhudhkumrahat (W.B.)2. Lalbagh II (W.B.)Scheme-III : Construction of RettingTank:Physical Target : 50Project Outlay : Rs. 5 Crores (90% CentralGovt. : 10% Beneficiary)89

ministry of textilesTable 6.14Sl. Market Yards Completed Sl. Market Yards in ProgressNo.No.1. Champadanga (W.B.) 1. Setai (W.B.)2. Bethuadahari (W.B.) 2. Lalbagh (W.B.)3. Karimpur (W.B.) 3. Gouripur (Assam)4. Tulsihata (W.B.) 4. Baharihat (Assam)5. Dhupguri (W.B.) 5. Parvathipuram (Andhra Pradesh)6. Kharupetia (Assam)7. Tufanganj (W.B.)Table 6.15Sl. DPC Completed Sl. DPC nearing Sl. Work Started/to beNo. No. completion No. started1. Kalna (W.B.) 1. Pandua (W.B.) 1. Rezinagar-I (W.B.)2. Katwa (W.B.) 2. Patiram (W.B.) 2. Razinagar-II (W.B.)3. Kaladanga (W.B.) 3. Panjipara (W.B.) 3. Palassypara (W.B.)4. Jangipur (W.B.) 4. Purnea (Bihar) 4. Dhulian (W.B.)5. Harirampur (W.B.) 5. Abhayapuri (Assam) 5. Lalbagh-I (W.B.)6. Islampur (W.B.) 6. Bilashipara (Assam) 6. Andhi (W.B.)7. Karnojora (W.B.) 7. Barpeta Road (Assam) 7. Paccamati (W.B.)8. Talmahat (W.B) 8. Goalpara (Assam) 8. Kishaganj (Bihar)9. Mathabhanga (W.B.) 9. Niz Dhing (Assam) 9. Forbeshganj (Bihar)10. Alipurduar (W.B.) 10. Bahadurganj (Bihar)11. Kaliabore (Assam) 11. Thakurganj (Bihar)12. Dalgaon (Assam)13. Juria (Assam)14. Dhing (Assam)15. Bhuragaon (Assam)16. Kendupatna (Orissa)17. Bhadrak (Orissa)18. Bobbili (A.P.)90

annual report 2010-11Table 6.16State Physical Work Work in Work YetTarget Completed Progress to startWest Bengal 30 14 5 11Assam (NER) 10 - 6 4Bihar 5 - 1 4A.P. 3 - - 3Orissa 2 - - 2Total 50 14 12 24The West Bengal State Co-operativeMarketing Federation Ltd. (Benfed) has beensanctioned 12 retting tanks with an estimatedbudget of Rs.4 lacs each. Earmark of landand signing of MOU is in progress.Scheme-IV: Demonstration of RettingTechnologyProject Outlay : Rs. 2.00 Crores (100%Central Govt)Physical Target : 40 Demonstrations peryearScheme-V : Development of high speedRibbonersProject Outlay: Rs. 1.60 Crores. (100%Central Govt.)Scheme wise financial target and position(as on 31.10.2010) is given at table 6.19.Table 6.17JCI/JTM NJB NIRJAFT CRIJAFNo. of Demonstration campssanctioned in 2009-10 50 50 10 10No. of Demonstration campsorganized till 31.10.2010 45 45 3 3*Report Awaited Awaited Awaited Awaited* Out of 10 camps sanctioned to CRIJAF, only 3 have been done due to drought in Murshidabad.As per reports received from the field, all the 3 demonstration organized by CRIJAF failed andfarmers are demanding compensation fro their loss.Project Sanctioned Cost ProgressTable 6.18Jadavpur University 95 lacs Completed work of Ph-I. Developed 1 ribboning machinePhase-I & IIwhich is to be placed under Champadanga, Hooghly fordemonstration.Ph-II : Their project to develop 2 ribboning machinesfurther which is also near completion and started trial runin the project site.CRIJAF (Barrackpore) 40 lacs CRIJAF started development of new ribboning machinebut progress is still not satisfactory. They informed thatthey have engaged technical personnel in this projectrecently for speedy completion.91

ministry of textilesTable 6.19Scheme Name of the Scheme Scheme Central Financial NER Other FundScheme Physical Financial Govt. progress- area receivedTarget Target Share upto upto31.10.10 31.10.101 Development ofMarket Yard 12 1220.00 798.00* 440.89 60.00 380.89 730.002 Construction of DPC 40 4400.00 4400.00 2195.03 902.00 1293.03 4090.003 Construction ofRetting Tank 50 500.00 450.00** 40.72 2.87 37.85 374.004 Demonstration ofRetting Technology 200 200.00 200.00 144.19 35.00 109.19 195.005 Development ofimproved/highspeed Ribboner 160.00 160.00 104.61 0.00 104.61 160.00Total 6480.00 6008.00 2925.44 999.87 1925.57 5549.00Note: *Balance Rs. 422.00 Lakh is share of State Govt.**Balance Rs. 50.00 Lakh is contribution of beneficiaries of the scheme.Mini Mission-IVi) Modernisation & Technologicalupgradation,ii)iii)iv)Improve productivity of the industry,Develop human resources for thejute industry,Designing & developing of JDPs,v) Help NGOs for JDP development,vi)vii)Commercializing to Technology forJDP andJute parks.Status of Mini Mission-IVNational Jute Board is responsible forimplementation of 9 (nine) schemes underMini-Mission-IV of the JTM which dealswith the modernization aspect of the Jutemills and diversification of Jute products.The Mission aims to improve themodernization of the Jute mills from theexisting level of 30% to 55% by the endof the JTM period. The Mission also aimsat 15% rise in productivity level resultingin decrease of the manpower requirementfor the standard B Twill (665 gm) bags,from the existing norms of 38.33 mandays per MT to 35. It also aims toincrease the share of Diversified JuteProducts from the existing level of 8% to20%.The initial year 2007-08 was requiredmainly to frame the rules, procedures andguidelines for implementing the nineschemes under the MM IV. Theimplementation effectively commenced in2008-09 onwards, but the progress wasagain hindered by the strike in the Juteindustry in 2009-10. NJB is in the processof a mid-term appraisal of theimplementation. It can be seen from thefollowing details that the schemes havestarted picking up.In 6 mills, where there has been highestutilization of funds for modernization, themanpower requirement have come downto 33 - 35 man days per MT. Overall92

annual report 2010-11improvement of productivity (bothmachines and labour) and quality,reduction of manpower, wastage and floorspace by using material handlingequipments, requirement of less numberof machines to achieve same quantum ofproduction, improve man machine ratio,saving of energy and reduction of cost ofenergy, etc. have been reported in themills which have utilized modernizationfund. The overall impact of the subsidy isestimated to result in an increase inefficiency / productivity by about 25%over the existing level.The details of schemes being implementedunder JTM -MM IV by NJB are given attable 6.20.NATIONAL FIBRE POLICY ON JUTEJute is a natural, environment friendlyfibre. The current scenario of environmentconsciousness has opened a new potentialfor the sector, which can be exploited byentering into new markets and newproducts. Endowed as the Indian JuteSector is with multifaceted advantages, itshall be the policy of the Government todevelop a strong and vibrant sector thatcan:●●●●Compete with confidence in thedomestic and global market andbecome self sustaining;Ensure remunerative returns to thejute farmers.Produce good quality fibre andproducts to meet the requirements ofthe domestic and internationaldemand; andIncreasingly contribute to sustainableemployment and the economic growthof the nation.Table 6.20Sl. Schemes Mission Target Cumulative TotalNo. (2007-12) Upto 30.09.20106.1 Training of workers & Supervisors 4.50 4.026.2 Machinery Development 28.00 14.186.3 Productivity Improvement & TQM Facilitation 6.00 1.946.4 Acquisition of Machinery and Plant( subsidy) 80.00 32.08Sub-Total 118.50 52.227.1 Design & Development of JDP 14.00 8.277.2 For helping the NGOs and WSHGs fordeveloping JDPs 17.00 5.097.3 Scheme for Promotion of Jute Diversification 23.52 15.227.4 Scheme for Commercialisation of Technology 1.00 0.007.5 Scheme for setting up Jute Parks for theDiversified sector 60.00 5.30Sub-Total 115.52 33.88Total Mini Mission-IV (Schemes) 234.02 86.10Admn / Monitoring Expenses - 3.77Total Mini Mission-IV 234.02 89.8793

ministry of textilesThe Objectives of The National FibrePolicy on Jute are given below:●●●●Enable the jute industry to build andadopt world-class state-of-the-artmanufacturing capabilities inconformity with environmentalstandards;Facilitate the Jute Sector to attainand sustain an eminent share in theglobal and domestic market oftechnical textiles;Enable jute farmers to produce betterquality jute fibre and to enhanceyield of raw jute substantially andfacilitate skill development andupgradation of the workforce of theindustry;Sustain and strengthen the traditionalknowledge, skills, and capabilities ofour weavers and craftspeopleengaged in the manufacture oftraditional as well as innovative juteproducts;● Encourage stakeholders tocollaborate, develop mechanisms andundertake activities that assist inbringing about overall developmentof the jute sector;●Make Information and CommunicationTechnology, an integral part of theentire value chain of jute and theproduction of jute goods, and therebyfacilitate the industry to achieveinternational standards in terms ofquality, design, and marketing;In furtherance of the above objectives, thestrategic thrust will be for a newCommodity Development Strategyincorporating the following:(a)In order to increase the productivity& improve the quality of jute fibre,following approach needs to befollowed:●Increase availability of certified(b)(c)●●●●●●seeds and improve distributionof the same through governmentagencies / channels.R & D for development of newvariety of seeds involvingreputed seed companies.Develop and adopt new rettingpractices or other methods forextraction of the fibre from thejute plants to ensure qualityupgradation of the fibre, reducethe water requirement and makethe process less physicallydemanding for the farmers.Increase penetration of new farmtechniques by conductingawareness programme.Empower the growers, improvethe marketing systems andinfrastructure and develop bufferstock of jute seeds.Encourage contract farming forjute as well as Organic Jute.Use of modern crop assessmenttechniques, such as satelliteimagery for deciding governmentinterventions.Improve the existing marketingsystems and infrastructure to improvefarm remuneration by-●Organising the growers into selfhelp groups and empoweringthem to address their issueswill go a long way in reducingthe volatility in raw jute pricesand ensuring better returns tothem.● Taking up with stategovernments to strictlyimplement the provisions ofAPMC act to increase thevolume of trade of raw jute inthe premises of market yards.Stabilising Raw Jute Prices and94

annual report 2010-11(d)ensuring raw jute security formanufacturers and market bydeveloping buffer stock of raw jutewith Jute Corporation of India.Providing Incentives to Jute Industryfor modernisation:The government has been providing100% reservation for packing Sugar& Food-grain in Jute since 2005.This has provided an assured marketfor jute sacking and thus sustenanceof the sector. Further, Governmentagencies, that procure 60% of thesacking produced by the industrybuys jute sacks on an administeredprice mechanism based on TariffCommission formula. The stagnationin efficiency criteria in the TariffCommission formula has left noincentives with the jute industry tomodernise and reduce the conversioncosts. Therefore, it shall be the policyof the government that whilecontinuing the protection to theindustry (by way of reservation inJPM Act) gradually induct efficiencycriteria in the administered pricingformula to ensure that the millsmodernize their processesprogressively during this period. Thiswould be undertaken by the followingmeasures-●●The man days taken for pricingthe government purchase wouldprogressively be reduced fromthe present level to the best(top quartile) man days achievedin the industry by the end of thethird year.The raw jute to jute bagconversion ratio would beprogressively reduced from thepresent levels to the best (topquartile) conversion ratioachieved in the industry, by theend of the third year.●From the fourth year onwardspricing will be based on the best(top quartile) achievedparameter in all the parametersused to determine the pricing.(e) Market Development of JuteDiversified Products: The JPM Actprovides an assured market to thejute used in packaging due to which,60% of the market for jute productsis sacking. The government shallendeavour to reduce the dependenceof the industry on sacking by on oneside gradually reducing the level ofreservation, while on the otherpromote and develop markets fornon-traditional products such as geotextiles,composites etc. Thegovernment shall further promotemarketing of jute diversified productssuch as carry bags, furnishings, etc.(f)In the interest of equity, inclusivegrowth to the rural economy andartisans, the government shallintensify its support to Small andMicro-enterprises, NGOs and SHGsthat produce & market jute diversifiedproducts. They would be developedto be substantial consumers of nonsackingjute products, and thusprovide alternate market for juteproducts.Enhancing the scope and funding inJute Technology Mission for-●●●Creation of a Jute DevelopmentFund for R&D efforts in modernmachinery development in JuteSector.Modernization of industry andadoption of new Technology.Improve working conditions atthe shop floor, develop betterwork culture and adopt bettermaintenance practices.95

ministry of textiles● Skill Development andUpgradation of the Workforce.●●Export Market Development.Product Development and●Marketing.Strengthening of informal sectorfor production of Jute DiversifiedProducts.96

annual report 2010-11CHAPTER VIISERICULTURE ANDSILK INDUSTRY97

98ministry of textiles

annual report 2010-11CHAPTER VIISERICULTURE AND SILK INDUSTRYIndia continues to be the second largestproducer of silk in the World afterChina. India also has the uniquedistinction of producing all fourcommercially produced varieties of silk inthe world, i.e. Mulberry, Eri, Muga andTassar. In 2009-10, Mulberry accountedfor 82.9% (16322 MT), Eri 12.5% (2460MT), Tasar 4.1% (803 MT) and Muga0.5% (105MT) of the total raw silkproduction in the country. In 2009-10production of mulberry raw silk increasedby about 4.6% after a decline in productionin 2008-09. Production of non-mulberryraw silk, on the other hand, has been ona growth trajectory, recording double-digitgrowth between 2005-06 and 2009-10.Silk fabrics production also showed agrowth of over 4% in 2009-10 comparedto 2008-09.Sericulture continues to be an importantlabour-intensive and agro-based cottageindustry, providing gainful occupation toaround 6.8 million persons in rural andsemi-urban areas in India. Of these, asizeable number of workers belong to theeconomically weaker sections of societyand women. Post cocoon activities,including reeling, weaving and garmentingalso provide significant opportunity forinclusive growth for large segment ofpopulation in number of States.During the year 2008-09, total productionof all varieties of raw silk was 18,370 tonscompared to the production of 18,320tons by the end of 2007-08, indicating anincrease of 0.3%. However, during theyear 2009-10, total production of allvarieties of raw silk increased to 19,690tons registering an increase of 7.2%.In the first year of the XI Plan i.e., 2007-08, production of Mulberry raw silkdecreased by 1.7% (16245 MT) comparedto the previous year 2006-07 (16525 MT).Production of mulberry raw silk during2008-09 declined by 3.9% to 15,610 tonsmainly due to decline in the Mulberryplantation and production of Mulberry rawsilk in Karnataka and Andhra PradeshStates. Production of mulberry raw silkregistered an increase of 4.6% during2009-10 to 16,322 tons compared to theyear 2008-09, indicating recovery inmulberry plantation.However, Vanya Raw Silk (Tasar, Eri andMuga raw silk) Production continues toshow better performance in the Xi planperiod. Vany Silk Production increased by6.4% (2075 MT) during the year 2007-08as compared to the production of 1950MT during the previous year 2006-07.Production of Tasar, Eri and Muga during2008-09, were 603 MT, 2038 MT & 119MT, respectively, corresponding to 428MT, 1530 MT & 117 MT produced duringthe year 2007-08, indicating an increaseof 40.9%, 33.2% & 1.7%, respectively.Production of Vanya silk (Tasar, Eri andMuga raw silk) during 2009-10, were 803MT, 2460 MT & 105 MT, respectively,corresponding to 603 MT, 2038 MT & 119MT produced during the year 2008-09,indicating an increase of 33.2% in Tasar,20.7% in Eri and a decrease of 11.8% inMuga.SCHEMES FOR DEVELOPMENT OFSERICULTURE AND SILK INDUSTRYDuring the XI Plan period the Ministry ofTextiles, through the Central Silk Board(CSB), is implementing several centrally99

ministry of textilessponsored and central sector schemes/programmes for the development ofsericulture and silk industry in India.Central Silk Board is a statutory body,under the administrative control of theMinistry of Textiles, established in 1948,by an Act of Parliament, (Act No. LXI of1948). CSB is basically Research andDevelopment Organization and has beenentrusted with the overall responsibility ofdeveloping silk industry covering the fullgamut of sericulture activities in the countryfrom development of food plants to silkcocoons for production of silk yarnincluding formation of policies governingImport & Export of silk.One of the important activities of the CSBis undertaking, assisting and encouragingscientific, technological and economicresearch in the Silk Sector. Theprogrammes for the development of thesericulture and silk textiles industry areprimarily formulated and implemented bythe State Sericulture/Textile Departments.However, the Central Silk Boardsupplements the efforts of the States byproviding necessary support for researchand development, extension and trainingthrough its countrywide network of centres.Besides, the Central Silk Board organizeproduction and supply of quality silkwormseeds, mulberry cuttings/saplings, etc.,and also implements various sericultureprojects directly, as well as jointly, withthe State Sericulture Departments. Also,Central Silk Board collects and compilessericultural statistics both at National andGlobal level.Major schemes/programmes beingimplemented by CBS are as follows:1. R&D / Transfer of Technology /Training / IT Initiatives (CS)2. Seed Organisation and HRD (CS)3. Catalytic Development Programme(CSS)4. Quality Certification Systems (CS)(CS: Central Sector Scheme CSS:Centrally Sponsored Scheme)(a) RESEARCH & DEVELOPMENT /TRANSFER OF TECHNOLOGY /TRAINING/ IT INITIATIVE●RESEARCH AND DEVELOPMENTThe Research & Training Institutes of theCSB provide R&D and Training supportfor the development of sericulture. Theinstitutes at Mysore (Karnataka),Berhampore (West Bengal) and Pampore(J&K) deal with mulberry sericulture. Theinstitute at Ranchi (Jharkhand) deals withTasar culture, whereas the instituteestablished at Lahdoigarh, Jorhat (Assam)deals with Muga and Eri culture. RegionalSericulture Research Stations (RSRS/RTRS/RERS) for mulberry and nonmulberry has been functioning for adoptiveResearch, Refining and dissemination ofthe research findings and of tackling theregional field issues of the industry.Besides, a network of Research ExtensionCentre (RECs) & its sub units for mulberryand non mulberry are also functioning toprovide extension support to sericulturists.In order to provide R&D support in postcocoon sector, the Board has establisheda Central Silk Technological ResearchInstitute (CSTRI) at Bangalore. In addition,the CSB has also set up a Silkworm SeedTechnology Laboratory (SSTL) inBangalore (Karnataka), a CentralSericultural Germplasm Resource Centre(CSGRC) at Hosur (Tamil Nadu) and aSeri-Biotech Research Laboratory (SBRL)at Bangalore.During 2009-10, 67 Research projectswere continued and 30 new researchprojects were initiated. Against a target of50 Research Projects scheduled to becompleted, 39 projects were concludedand 11 projects extended for 2010-11.During 2010-11, 58 Research projectsare continuing and 55 new research100

annual report 2010-11projects proposed to initiated, of which,13 projects have already been started.Against a target of 45 Research Projectsscheduled to be completed, 18 projectsconcluded (up to December 2010) andremaining 27 projects will be concludedby March 2011.●TRANSFER OF TECHNOLOGYIn order to increase productivity andquality of silk, a chain of ResearchExtension Centres of CSB are engagedfor transfer of technologies from ResearchInstitutes to the field. The increase inproductivity of silk may be seen at table7.1.●TRAININGThe CSB organizes a number of trainingprogrammes at its Research and TrainingInstitutes. The total number of personstrained under different courses during2009-10 and 2010-11 (up to September,2010) is given at table 7.2.Table 7.1Per Ha.Year Mulberry Unit: Metric Tonnes ProductivityHecterage(in kg.)Mulberry Non- Total MulberryMulberry Raw RawCocoon Raw Silk Raw Silk Silk Silk2002-2003 194463 128181 14617 1702 16319 75.172003-2004 185120 117471 13970 1772 15742 75.462004-2005 171959 120027 14620 1880 16500 85.022005-2006 179065 126261 15445 1860 17305 86.252006-2007 191893 135462 16525 1950 18475 86.122007-2008 184928 132038 16245 2075 18320 87.842008-2009 177943 124838 15610 2760 18370 87.732009-10 183773 131661 16322 3368 19690 88.822010-11(April toSep.) (P) 181000 60600 7556 1436 8992 –Table 7.2Sl. Particulars 2009-10 2010-11 (up No. of persons CategoryNo. to September anticipated to be2010) trained by theend of 2010-111 Structured Course 41 49 60 DOS/NGO2 Capsule Course 1263 254 890 CSB/DOS/NGO3 Adhoc Training & 3951 643 3895 Students/Staff/Skill DevelopmentEntrepreneurs/FarmersTOTAL 5255 946 4845101

ministry of textiles●IT INITIATIVEUnder the IT initiatives, in XI Plan, CSBconcentrated on software development byusing contemporary technologies andnetworking of various cocoon and silkmarkets with free flow of information onthe availability of the raw material, markettrends, etc., on its websites. All informationrequired for traders, buyers, and otherstakeholders are proposed to be hostedon the web for improving the interactiveinterface of the website. In addition,facilities like on-line subscription toscientific e-journals, on-line submission ofresearch progress reports, videoconferencing among Research Institutesof CSB, providing web based email facility,etc. will be created. Work is in progressto network various cocoon markets to thecentralized server at CSB complex and todevelop a centralized MIS application.II(b) SEED ORGANISATION & HRD●SILKWORM SEED PRODUCTIONAND SUPPLYUnder National Silkworm SeedOrganization (NSSO) a network of 19Basic Seed Farms (BSF) produce andsupply the basic seed for production ofcommercial silkworm seed in the seedproduction centres functioning under CSBand State Departments. 19 Silkworm SeedProduction Centres (SSPCs) arefunctioning under NSSO in different Statesto support the industry. During the year2010-11(upto October, 2010) thesecommercial SSPCs have produced of146.44 lakh Disease Free Layings (dfls)against the target of 310.00 and achieved47.23%. Emphasis was given towardsproduction of quality dfls by adoptingQuality Management System in seedproduction under ISO 9001:2000certification in 14 SSPCs. During 2010-11four more SSPCs are to be coveredunder ISO certification.On the tasar side, the CSB has established21 Basic Seed Multiplication & TrainingCentres (BSM&TC) and one Central TasarSilkworm Seed Station (CTSSS) for supplyof tropical tasar basic seed & 1 oak tasargrainage and 3 REC-Cum-BSM&TCs forsupply of oak tasar basic seed. Undermuga sector, 8 Basic Seed Farms and 1Silkworm Seed Production Centre arefunctioning. For production and supply oferi seed, CSB has established 5 SilkwormSeed Production Centres.The details of progress achieved by theunits during 2010-11 (up to Oct., 10) isgiven at table 7.3.●HRD - CO-ORDINATION ANDMARKET DEVELOPMENTCSB administration includes BoardSecretariat, Regional Offices, CertificationCentres and Raw Material Banks. TheBoard Secretariat of CSB monitors theimplementation of various schemes andcoordinates with Ministry and States inimplementation of various projects insericulture sector. Several Nationalmeetings, Board meetings and Reviewmeetings and other high level meetingsare being carried out by the BoardSecretariat.II(c) CATALYTIC DEVELOPMENTPR0GRAMME (CDP) DURING XIPLANAs a part of the developmental initiativesfor the sericulture and silk sector theMinistry of Textiles, through CSB, hasbeen implementing its flagship CatalyticDevelopment Programme (CDP) as aCentrally Sponsored Scheme during IX &X Plan period, in association withconcerned State Sericulture Departmentsand other implementing agencies tosupplement their efforts in achieving thegoals set for the Plan period.The IX plan CDP focussed largely onsupporting stakeholders in Sericulture102

annual report 2010-11Table 7.3(Dfls in lakh nos.)Achievement during 2009-10# Particulars Achievement Target Achievement Anticipated Anticipatedduring during April- November, 2010 (upto2010-11 October, 10 to March, 2011 March, 2011)1 Mulberrya. Basic seed 9.53 9.54 4.51 5.03 9.54b. Commercial seed 283.48 310 146.44 163.56 3102. VANYAa. Basic seedi. Tasar 29.88 32.10 30.07 2.03 32.10ii. Oak Tasar 1.40 1.16 1.31 - 1.31iii. Muga 0.86 1.51 0.90 0.50 1.40iv. Eri - -b. Commercial seedi. Muga 0.62 1.06 0.95 0.30 1.25ii. Eri 1.95 2.50 1.12 0.75 1.87sector, ranging from food plant cultivationto marketing of products, while in X plan(2002-07), the focus of CDP was widenedby creating greater opportunities for gainfulemployment in rural areas through thespread of scientific sericultural practicesand by promoting modernization andquality up-gradation of the industry.During XI Plan, the Catalytic DevelopmentProgramme (CDP) has been restructuredin order to focus on complete and holisticdevelopment of sericulture industry in allthe Sericulture States of the countryinvolving States and stakeholders forsustainability and improvement in outputin terms of quality and quantity. Thusemphasis for the XI Plan under theSericulture sector is on two aspects:1) Development of Sericulture:Increase in area under food plants ofsilkworms and enhancing productionby improving productivity and qualityof silk through R&D and transfer oftechnology to the field; and2) Inclusive growth and povertyalleviation: Generation ofemployment and income, livelihoodsecurity and increase in familyincome.During XI Plan period the target is toincrease the production of silk of bothmulberry and non-mulberry silks (whichinclude production of 5000 MTs of superiorquality bivoltine raw silk) to 26,000 MTsper annum by the terminal year of XIPlan, and generate a cumulativeemployment of 77.04 lakh persons.Considering the potential for expansion ofsericulture in the country and with a viewto provide / improve livelihoods besidesincreasing income of the poor people inrural areas, it is also envisaged to increasethe area under mulberry food plants from1.92 lakh ha. to 2.18 lakh ha. by end ofXI Plan.Keeping in view the importance ofproduction of superior quality of bivoltinesilk to reduce the import cost, greaterthrust to Vanya silk and creating moreemployment in rural areas throughsericulture practices, implementation ofCatalytic Development Programme hasbeen continued during the XI Plan withmodifications along with certain newinitiatives and some more inputs.103

ministry of textilesProject Approach: Packaging ofSchemes in XI PlanKeeping the above objectives in viewduring XI Plan, the Catalytic DevelopmentProgramme (CDP) has been restructuredand is being implemented as a CentrallySponsored Scheme in a package-modeThe programme would catalyze theefforts of States to increase productionof raw silk including superior qualityBivoltine silk, increase cumulativeemployment and exports by end of theXI Plan period.The components under the CDP coversthree major areas - Seed sector, Cocoonsector and Post-cocoon sector and will besupplemented by other components ofSupport Services, which are common toall packages. These components arebeneficial for both existing and newfarmers for practicing sericulture. TheState Departments of sericulture have toidentify existing as well as new farmersand offer the components according totheir requirements from out of the basketof components. Within each Package,flexibility has been built-in, to cater tospecific needs of the five identified Seri-Zones [North-Western Himalayan Region,North-Eastern India, Northern & CentralIndia, Eastern Region (West Bengal) andSouthern India] of the country.Outlay approved for XIth Five YearPlanThe total outlay for implementation of theCDP during the XI Plan is pegged atRs.1476.24 crores of which GoI share isRs.661.62 crores. Of the approvedallocation of Rs.81.01 crores, Rs.76.73crores, and Rs.146.12 crores for theyears 2007-08, 2008-09 and 2009-10 atotal amount of Rs.Rs.80.82 crores,Rs.90.74 crores and Rs.144.06 croreswas spent respectively towardsimplementation of various schemes /components under CDP.During the current year 2010-11, asagainst the sanctioned amount ofRs.260.76 crore by Govt. of India forimplementation of CDP a sum ofRs.164.28 crore has been released /spent towards implementation of variousschemes / components under CDP up tothe end of October, 2010.II(d) QUALITYSYSTEMS●CERTIFICATIONESTABLISHMENT OF COCOONTESTING UNITSIn order to facilitate cocoon testing indifferent cocoon markets of the countryCSB has proposed to establish 25 CocoonTesting Units in different States. Thesetesting facilities would be promoted throughDept. of Sericulture of the States, NGOs,Quality Service Clubs and Societies.During the year 2009-10, four units, oneeach in Vaniyambadi (Tamil Nadu), Hosur(Tamil Nadu), Bhilaspur (HP) andChandragiri (Orissa) have beenestablished. During 2010-11 (till November2010), assistance has been provided forestablishment of 7 units, 3 in AndhraPradesh, 2 in Jammu & Kashmir and 1each in Madhya Pradesh and Manipur.●SILK MARK ORGANIZATION OFINDIA (SMOI)The Ministry of Textiles-Govt. of Indiacame up with an initiative for the protectionof the interests of the consumers andother stakeholders of the silk value-chainby bringing out "Silk Mark" Scheme inJune 2004. Silk Mark, the QualityAssurance Label signifying that a productto which it is affixed is made of pure silkwas launched by the Silk MarkOrganisation of India (SMOI), a registeredSociety sponsored by the Central SilkBoard under MOT. Silk Mark labels canbe affixed to primary, intermediate andfinished products of silk including yarn,fabric, sarees, made-ups, garments,104

annual report 2010-11carpets, etc. The Silk Mark Scheme isaimed at protecting the interests of theusers and for the generic promotion of silkfor building brand-equity of Indian Silkinternationally.Since the launch of Silk Mark in June2004, over 1600 members have joinedthe Organisation, of whom, more than1500 have become Authorized Users.More than a crore of Silk Mark labelledproducts have reached the market for thebenefit of consumers. Apart from becomingfamiliar with the consumers, Silk Mark isgaining confidence of the Silk Industry aswell. During 2009-10, 301 new membersjoined SMOI, of which 298 members wereenrolled as Authorised Users under SilkMark Scheme and 22.22 lakh of Silk MarkLabelled products have reached themarket. During 2010-11 (up to November2010) 168 members joined SMOI, ofwhich, 167 members have enrolled asAuthorised Users and 18.11 lakh of SilkMark Labelled products have reached themarket.To spread the message of Silk Mark, awell thought out action plan for the year2010-11 is in place. Accordingly, SMOIhad participated in various exhibitionsand conducted Awareness Programmesfor consumers and trade across thecountry to promote the Silk Mark Scheme.During 2010-11 (upto November 2010)SMOI participated in as many as 200exhibitions / Workshops / Road showsetc.Silk Mark Expo is being organised bySMOI in major city across the countrywith a view to create awareness aboutSilk Mark among consumers and toprovide an excellent platform to AuthorisedUsers to display and sell their silk products.Sixteen such Expos have been plannedduring the year 2010-11 and 9 suchExpos have already been conducted oneeach at Guwahati, Kochi, Kolkata,Bhubaneswar, Vishakapattanam,Lucknow, New Delhi, Jaipur andMangalore till December 2009.III. EXTERNAL / INTERNALASSISTANCE FOR DEVELOPMENTOF SERICULTUREIn addition to the above centrallysponsored and central sector schemes ofthe Ministry, CSB is also implementingseveral schemes with external assistanceand international cooperation fordevelopment of sericulture. Some of themajor projects are as follows:III(a) PROJECT FOR ORGANIZING 3rdCOUNTRYTRAININGPROGRAMME ON BIVOLTINESERICULTURE TECHNOLOGYASSISTED BY JICAThe Japan International CooperationAgency (JICA) and the Central Silk Board(CSB) have jointly worked in technicalcooperation in the area of developmentand popularization of Bivoltine SericultureTechnology suited to Indian agro-climaticconditions for past fifteen years. In thiscooperative endeavor, a good number ofbivoltine silkworm breeds have beendeveloped along with a comprehensiveBivoltine Sericulture Technology packageand suitable model for Extension, Seedproduction system and generated welltrainedmanpower for further multiplicationin the country.Encouraged by the success of thecooperation programme, Central SilkBoard in association with JICA hasimplemented a third country trainingprogramme on "Bivoltine SericultureTechnology" during 2008-09 for some ofthe Afro-Asian countries to disseminatethe knowledge and skills on bivoltinesericulture technologies to these silkproducing countries and organized trainingfor 11 officers in 'Administrative Course'and 15 officers in 'Technical Course'nominated from 8 different countries viz.105

ministry of textilesGhana, Cambodia, Uganda, Nigeria,Kenya, Philippines, Laos and Nepal.JICA has extended the training programmefor 3 more years from 2009-10 in view ofthe success of the programme andfeedback received. The third CountryTraining Programme on "BivoltineSericulture Technology" is opened for theparticipants of 22 Afro-Asian Countries,viz., Bangladesh, Cambodia, Ethiopia,Ghana, Indonesia, Kenya, Laos,Madagascar, Nepal, Nigeria, Pakistan,Philippines, Sri Lanka, Vietnam, Uganda,Cuba, Thailand, Kazakhstan, Uzbekistan,Kyrgyzstan, Egypt and Iran. The numberof officers trained under BivoltineSericulture Technology is given attable 7.4.III(b)MANIPUR SERICULTUREPROJECT (PHASE-I) ASSISTED BYJBICThe Govt. of Manipur is implementing theproject with financial assistance from JBIC,Japan over a period of 10 years at a totalcost of Rs.490.59 crore. The first phaseof the project was approved with a totalcost of Rs.134.52 crore (4587 MillionYen). However The Revised Action Planof the Manipur Sericulture Projectapproved by the Ministry of Textiles aswell as JBIC at a cost of Rs 105.89 croreexcluding the staff component of Rs 20.33crore. The implementation of the projectwas re-started from March 2005.The first phase of the project wascompleted with a total cost of 154.99crore due to yen appreciation of whichJBIC assistance was Rs.136.66 crore(3962 Million Yen) and state share ofRs.18.33 crore. Under the project 5,000beneficiaries have been identified andorganised into 1000 Field Operative Units(FOU). 1700 hectares of Systematicmulberry plantation @ 1.7 ha/FOU wasraised and construction and establishmentof 4185 Individual Adult Rearing Houseswere completed. 15 Technical ServiceCentres, 2 Gainages, 2 P-2 Seed Farms,One Cocoon market, 4 District levelCocoon Storage & Drying Centres, oneeach of Sericulture Training School, Post-Cocoon Training-cum-Production Centrewere established. In addition to the aboveMulti-end Reeling Unit, Testing Unit, silkConditioning and Testing Unit, FieldResearch & Experiment Station, ProjectManagement Office and 60 ChawkiRearing Centres have been established.Under the project, a total of 19.11 lakhdfls were reared to produce 597.5 MT ofcocoons.In the first phase of the project 210officials were trained under Trainer'sTraining programme, 117 throughrefreshers trainings and 300 officials weretrained in Chawki Rearing. Apart fromthis, 4000 beneficiaries are trained undervarious skills of rearing, reeling etc. and660 farmers were taken on study tours.CSB has conducted concurrent evaluationof the first phase during 2009-10 andfound that the infrastructure developedduring the first phase is yet to be fullyTable 7.4S.No. Name of the Sub-course Target Achievement2009-10 2010-111 Administrative Course (Two Weeks) 15 12 132 Technical Course (Twelve Weeks) 15 14 15*Total 30 26 28*Training in progress106

annual report 2010-11utilized for want of electrification, powerconnection and commissioning of technicalequipment. The left over activities of theproject are under consolidation and DraftProject for Phase-II is submitted to JBIC.Alternative funding arrangement for thesecond phase of the project is also beingdiscussed in the project monitoring boardto utilise the infrastructure created andconsolidate the gains made in the firstphase of the project.III(c) SPECIAL SGSY PROJECTS FORDEVELOPMENT OF TASAR ANDERI CULTURE IN BIHAR ANDJHARKHANDTwo special SGSY Projects fordevelopment of Tasar and Eri culture arebeing implemented in the States of Biharand Jharkhand with financial assistancefrom Ministry of Rural Development, Govt.of India from the year 2003-04. CentralSilk Board is the Executing Agency, whichclosely monitors the implementation andextends the necessary technologicalsupport through units of CTR&TI, Ranchion pre-cocoon aspects, BTSSO, Bilaspurfor seed requirement and CSTRI,Bangalore on post cocoon activities. CSBalso meets the entire requirement of basicseed through the BSM&TCs in the twostates. The projects are being implementedin both the States by ProfessionalAssistance for Development Action(PRADAN), an NGO.III(d)DEVELOPMENT OF TASAR ANDERICULTURE IN BIHAR (2003-07)The project is being implemented inBanka district of the State. The projecthas been extended till 31st March 2011.So far Rs. 880.671 lakh have beenreleased under the project to PRADAN& CSB units in the project area, whichincludes Rs. 653.179 lakh from MORDand Rs.227.581 lakh from CSB, excludingnominal project administrative expensesspent by CSB for its personnel involvedin project execution. Under the project 37SHGs and 3051 swarojgaries have beenassisted and 268.76 Ha. of blockplantation, 2430 chawki garden units of0.1 Ha. and 40.5 Ha. of castor have beenraised.III(e) DEVELOPMENT OF TASAR ANDERI CULTURE IN JHARKHAND-PHASE I (2003-05)The project is being implemented in thedistricts of Giridih, Deoghar, Dumka,Pakour, Godda, Sahebganj, Jamtara,Ranchi, East Singhbhum, WestSinghbhum, Saraikela, Simdega,Hazaribagh and Gumla of Jharkhand.One new BSM&TC was established atDeoghar in the state and 3 existingBSM&TCs at Kathikund, Kharsawan andMadhupur were strengthened. The projectimplementation is at final stage and wouldbe concluded during this year. Under theproject 132 SHGs and 8136 swarojgarieshave been assisted, 743.09 hectares ofblock plantation, 3144.4 chawki gardenunits and 82.00 hectares of castorplantation have been raised.III(f) SPECIAL SGSY PROJECT ONDEVELOPMENT OF MULBERRYSERICULTURE IN LAI, MARA ANDCHAKMA AUTONOMOUSDISTRICT COUNCILS OF MIZORAMThree Projects prepared by CSB for Lai,Mara and Chakma ADCs of Mizoramstate at total cost of Rs.5100.00 lakh @Rs.1700.00 lakh per project are beingimplemented by DOS, Govt. of Mizoramwith financial assistance from MORD andCSB for a period of five years in twophases from 2002-03. The first Phase ofall the three projects started during 2002-03 at Rs.512.00 lakh each. MORD hasreleased funds to a tune of Rs.701.45lakh for three ADCs and Rs.219.60 lakhreleased by CSB as its share under CDP(up to October, 10). The II Phase of theproject is yet to be initiated.107

ministry of textilesIII(g)SPECIAL SGSY PROJECT FORDEVELOPMENT OF MULBERRYSERICULTURE IN UTTARAKHANDThe Ministry of Rural Development,Government of India has sanctioned aproject entitled "A Special SGSY Projectfor Development of Mulberry Sericulturein Uttarakhand" at a total cost of Rs.757.84lakh to be implemented by Directorate ofSericulture, Govt. of Uttarakhand over aperiod of 5 years from 2007-08 to 2011-12. The funds are shared by MORD(Rs.417.009 lakh) and CSB/State(Rs.153.899 lakh). Bank credit isRs.131.205 lakh and the beneficiarycontribution is Rs.55.727 lakh. CentralSilk Board is the Executing andCoordinating Agency. Due to revision inthe cost of RH, the Project cost has beenrestructured to Rs. 917.840 lakh byrevising CSB/State share at Rs.378.899lakh, Bank Credit Rs.76.205 lakh and theBeneficiary Contribution being Rs.45.727lakh without any change in MORD Share.The Project envisages a total productionof about 20.0 MTs raw silk per annumonce the plantation becomes fullyproductive, with the help of 1,090 projectswarojgaris during the project period.Project shall generate employment to6,530 man years. Till October, 2010, anamount of Rs.470.25 lakh including MORDshare of Rs.165.08 lakh and CSB shareof Rs.305.17 lakh has been releasedunder the project.II(h) PROJECTS WITH ASSISTANCEUNDERCATALYTICDEVELOPMENT PROGRAMME(CDP)1. MICRO PROJECT FORDEVELOPMENT OF OAK TASARIN MANIPUR (PHASE-II)Second Phase of "Micro Project forDevelopment of Oak Tasar in Manipur"was initiated in the year 2007-08 for aperiod of five years coinciding with XIPlan period (2011-12) at a total cost ofRs. 387.368 lakh with CSB, State andBeneficiary share of Rs.227.421 lakh, Rs.64.203 lakh and Rs. 87.429 lakhrespectively and the balance is creditfrom financial institutions. The project isbeing implemented by Manipur StateSericulture Cooperative Federation Ltd.,(MSSCF).The project covers raising andmaintenance of Oak Tasar plantation in400 hectares, establishment of 4 Units ofState oak farm cum Grainages, equipmentsupport to 14 seed rearers and 250commercial rearers, two units of CFC, 7reeling units, 2 spinning units, 45 certifiedloom units. The project would produce 9.0lakh oak tasar seed, 250.00 lakh cocoonsand 6.1 MT of raw silk with an employmentgeneration of 6111 man year at the endof the project period.2. MICRO PROJECT FORDEVELOPMENT OF OAK TASARIN MIZORAMA "Micro Project for Development of OakTasar in Mizoram" was initiated at a totalcost of Rs.94.682 lakh with CSB, Stateand Beneficiary sharing of Rs.71.542 lakh,Rs.18.746 Lakh and Rs 2.225 lakhrespectively and credit of Rs.2.168 lakh.The project is being implemented inTlangsam, Zotlang and Zote villages ofChampai district during the 2008-09 to2011-12 by DOS, Govt. of Mizoram,coinciding with XI Plan period (2011-12).The project covers support to 12 adoptedseed rearers, 200 Oak Tasar Rearers,strengthening of 01 Oak Tasar Grainage,establishment of 01 community reeling &spinning Centre, equipment and trainingsupport to 16 reelers, 6 spinner. Theproject output in the final year has beenestimated to produce 27.50 lakh cocoons,611 kg reeled silk, 236.50 Kg spun silkwith an employment generation to 611108

annual report 2010-11man years/year. CSB has released itsshare of Rs.22.846 lakh (up to March,10)under CDP Schemes to support Tasarrearers for equipments, training, extension& publicity, strengthening of seedinfrastructure and market support forcocoons etc. to achieve the set targets.3. INCOME ENHANCEMENT OFRURAL POOR THROUGHERICULTURE IN GUJARATA project on "Income enhancement ofRural Poor through Ericulture" with a totalcost of Rs.296.607 lakh has been initiatedfor a period of four years from 2008-09 to2011-12. The project cost includes CentralShare of Rs.176.076 lakh from the fundsavailable under the Catalytic DevelopmentProgrammes of CSB, State matching shareof Rs.72.788 lakh from Department ofCottage and Rural Industries (DCRI), Govt.of Gujarat, and Rs.47.743 lakh to be metby the beneficiaries. The project is proposedto be implemented in clusters in the districtsof Mehsana, Patan, Banaskantha &Sabrakantha of North Gujarat during the2008-09 to 2011-12 by Department ofCottage & Rural Industries, Govt. of Gujarat,Gandhinagar through credible NGOs.The project covers support to 525 Ericocoon Producers, construction of 525rearing houses Rearers, 04 cocoon dryingunits, establishment of 109 spinners &100 weavers for yarn production andfabric production respectively, qualitylinked price support for marketing ofcocoons and training to the beneficiariesinvolved in different activities. The projectoutput in the final year has been estimatedto produce 27.00 MT of cocoon shells and22.00 MT of spun yarn with an employmentgeneration to 21952 man years/year. CSBhas released its share of Rs.31.848 lakhunder CDP Schemes to support Erifarmers for equipments, rearing house,hot air driers, spinners, training, extension& publicity, and market support for cocoonsetc.III(i) PROJECTS WITH ASSISTANCEUNDER NABARD's TRIBALDEVELOPMENT FUND (TDF)●Integrated Tribal DevelopmentProgramme for Chakai Block ofJamui District of BiharThe project is being implemented in tribaldominated Dulampur, Nauwadih,Faritazadihi and Gajhi panchayats ofChakai Block of Jamui District of Bihar bycreating Tasar Sericulture based forwardand backward linkages for sustainablelivelihood development. Total outlay ofthe project is Rs.1274.91 lakh, of whichNABARD, Patna is funding Rs.837.72lakh (65.71%), CSB share of Rs.170.91lakh (13.41%), Beneficiary share isRs.217.29 lakh (17.04%) and Loan fromNABARD amounts to Rs.49 lakh (3.84%),for a period of five years starting from2009-10 with CDP funding proposed onlyfor the XI Plan period i.e., 2009-10, 10-11 and 11-12 at Rs. 20.675 lakh, Rs.86.517 lakh and Rs. 63.717 lakh,respectively.●Integrated Tribal DevelopmentProgramme for Banka District ofBiharThe project is being implemented in tribaldominated Katoria, Chandan and Bounsiblocks of Banka district through WADIapproach (Agri-Horti-Forestry). Total outlayof the project is Rs.675.91 lakh, of whichNABARD, Patna is funding Rs.512.33 lakh(75.8%), fund dovetailed from SGSY shareof Rs.31.14 lakh (4.61%), Beneficiary shareis Rs.117.44 lakh (17.37%) and Loan fromNABARD amounts to Rs. 15 lakh (2.22%),for a period of seven years starting from2008-09.●Integrated Tribal DevelopmentProgramme for three Blocks ofDumka District of Jharkhand Under"TDF" Fund of NabardThe project is being implemented in tribal109

ministry of textilesdominated Kathikund, Sikaripara andRaneshwar Blocks of Dumka district ofJharkhand by creating Tasar Sericulturebased forward and backward linkages forsustainable livelihood development. Totaloutlay of the project is Rs.905.962 lakh,of which NABARD, Ranchi is fundingRs.641.327 lakh, Beneficiary share isRs.120.823 lakh and Loan from NABARDamounts to Rs.143.81 lakh (includingrefundable loan of Rs.50.00 lakh fromNABARD), for a period of five yearsstarting from 2010-11.●Integrated Tribal DevelopmentProgramme for three Blocks ofGodda District of Jharkhand UnderTDF Fund of NabardThe project is being implemented in tribaldominated Sundarpahari, Godda andPoreyahat Blocks of Godda district ofJharkhand by creating Tasar Sericulturebased forward and backward linkages forsustainable livelihood development. Totaloutlay of the project is Rs.793.19 lakh, ofwhich NABARD, Ranchi is fundingRs.602.209, beneficiary share is Rs.100.25lakh and Loan from NABARD amounts toRs.90.736 lakh (including refundable softloan of Rs.50.00 lakh from NABARD), fora period of five years starting from2010-11.IV. CLUSTER DEVELOPMENTPROJECTSThe Cluster Promotion Programme wasinitiated during 2008-09 and beingimplemented in close co-ordination withthe State Sericulture Departments. Theprogramme envisage dissemination oftechnological innovations in a systematicway to improve production, productivityand quality of cocoons to support thetargeted production of both mulberry andVanya silks during XI Plan as alsofacilitates infrastructure up-gradation andimprovement of skill / knowledge offarmers. The programme also bringsawareness among the sericulturists aboutthe latest technologies developed and thekind of assistance available to improvesericulture. The programme ensures thatall the schemes of Govt. of India / StateGovt. for sericulture development and silkindustry reaches the stake holders in theclusters. The Cluster DevelopmentProgramme creates interest among otherfarmers to take up sericulture mainly dueto the reason that the farmers shall getconstant support/guidance from theimplementing agency from the stage ofhost plant development up to post cocoonactivities.Under the Cluster Promotion Programme,the CSB in close co-ordination with DOSscontinued to assist 45 model sericultureclusters in pre-cocoon sector covering 16States during 2010-11 Involving centralshare of Rs.15.61 crore (up to November,2010). The state-wise / sector-wise breakupof sericulture clusters are given attable 7.5.In mulberry Sector, assistance has beenprovided mainly towards raising plantation,irrigation, supply of improved rearingappliances, disinfectants, support forchawkie rearing, construction of rearinghouses, seri-poly clinics, insurance,beneficiary training programme, etc. Invanya sector the assistance extended forraising plantation, supply of rearingequipments/tools to seed and commercialrearers, private graineurs, construction oferi rearing houses, Farmers' Training/Study Tour, insurance support, etc. Thefunds for cluster programme are beingmet out of the provision made to Statesalong with CDP funds. The CSB has beenproviding required technical / extensionsupport through its main R&D Instituteand their nested units and the State willalso provide matching grants & extensionstaff for effective implementation of ClusterPromotion Programme.CSB in association with States continue110

annual report 2010-11Table 7.5Sl. Sector States No. ofNo.Clusters1 Mulberry Karnataka (7), Andhra Pradesh (6), Tamilnadu (6), 31Jammu & Kashmir (4), Maharashtra (3), Mizoram (1),West Bengal (2), Uttarakhand (1), Assam (1)2 Tropical Tasar Chhattisgarh (1), Orissa (2) 33 Oak Tasar Manipur (2), Uttarakhand (1), Himachal Pradesh (1) 44 Muga West Bengal (1), Assam (2), Meghalaya (1) 45 Eri Nagaland (1), Uttar Pradesh (1), Assam-BTC (1) 3Total (Pre-cocoon clusters) 45to operate 5 post-cocoon clusters oneeach in Tamil Nadu, Andhra Pradesh,West Bengal, Maharashtra and Assam fordevelopment of post-cocoon sector during2010-11. While central share of Rs.0.72crore has been sanctioned up toNovember, 2010 in respect of Tamil Naduand Maharashtra the proposals from otherstates are still awaited. The proposal toorganize one cluster in Karnataka isunder consideration. This apart, 8 mulberryclusters, 3 in Bihar, 2 in Himachal Pradeshand 3 in Kerala have been established byCSB in X Plan and are continuing in XIPlan.V. VANYA SILK MARKETPROMOTION CELL (VSMPC)Vanya Silk Market Promotion Cell(VSMPC) was established by CSB underX Plan CDP scheme with an objective ofproviding input support to Vanya Silks inthe areas of Market Promotion, ProductDevelopment and Diversification. Theactivities of VSMPC are continued duringXI Plan at an outlay of Rs.100.00 lakh.The Advisory Committee of VSMPCheaded by the Member Secretary, CSBand members from AIFD, Bangalore, NIFT,Bangalore, IIM, Bangalore, NIFT-TEA KFI,Tirupur, and officers from CSB and CSTRI,Bangalore is reviewing the functioning ofthe cell.During the year 2010-11 VSMPC as apart of Vanya silk market promotion efforts,has published the "Vanya Silk Directory",which provides information on the profileof Vanya silk industry in India, smallmanufacturers, master weavers, traders,exporters, retailers of Vanya Silk indifferent parts of the country, vanya silkRaw Material Banks, Eri Spun Silk Mills,Vanya Silk Product DevelopmentAgencies, Vanya Silk Shoppees, Units ofCSB, SMOI, and State Governmentsworking for the development of VanyaSilks, Units for the measurement, differenttypes of Vanya Silk products available inIndia, tips on Vanya Silk care etc.Collaborative projects with NIFT-TirupurExporter's Association KFI, Tirupur on"Vanya Silk Design and ProductDevelopment", with the SIFT, Ludhianaon "Development of Eri silk Knitwear,Popularization and Commercialization"andwith NID Ahmedabad on "DesignDevelopment for Vanya Silk Products"under progress. Vanya Silks has a Logodesigned by NID, Ahmedabad and samewas registered by Registrar of TradeMark, Govt. of India in the name ofCentral Silk Board, Ministry of Textiles,Govt. of India.111

ministry of textilesVI.UPGRADATION OF TECHNOLOGYVI(a)AUTOMATIC REELING UNITSIn view of the thrust being provided tobivoltine cocoon production in the countryand with an aim to produce internationalquality (3A - 4A) raw silk, a scheme forsupporting establishment of AutomaticReeling Machine (ARM) units wasimplemented under CDP in the X Plan ona pilot basis and two ARM units, one eachin Jangaon, Warangal District, AndhraPradesh and Gobichettypalyam, ErodeDistrict, Tamil Nadu were establishedduring the year 2007-08. Both ARM unitsare running and producing quality rawsilk. The Mnistry is supporting theestablishment of ARM units during the XIPlan CDP with a physical target of 10units. The scheme is aimed at popularisingthe adoption of latest technologies incocoon processing, silk reeling, testingetc. Each ARM unit with 400 ends has acapacity to produce approximately 34.00MTs of quality raw silk per annum. Thecocoon requirement would be around 218MT per annum covering 350-500 acresunder mulberry cultivation. This meansthat around 400 farmers would be linkedup with one automatic reeling unit.During the year 2008-09, CSB inassociation with the respective State, hadidentified three entrepreneurs, two fromKarnataka and one from Tamil Nadu forestablishment of ARM units. Three moreentrepreneurs, one each form Karnataka,Tamil Nadu and Andhra Pradesh, havebeen identified for establishment of ARMunits during 2010-11. Of these six units,one unit has been commissioned atRamanagaram (Karnataka) and three unitsare at the erection & commissioning stage.VI(b) ERI SPUN SILK MILLEri cocoons were hitherto utilized for theproduction of hand spun yarn on traditionalhand spinning devices. Trials undertakenby CSB for the production of mill spun eriyarn of various counts showedencouraging results. Diversified valueadded products like denims, knits andcarpets were made using these yarns.With a view to produce quality eri spunsilk yarn of various counts and to meetthe requirement of producing diversifiedvalue added products in eri and its blendsboth for domestic as well as internationalmarkets, it was proposed to support forestablishment of Eri Spun Silk Mill of 440spindles with a capacity to produce around100 kgs of spun silk yarn per day, underthe X Plan CDP approved by the EFC.The scheme envisaged central subsidy of75% on the unit cost of Rs.150.00 lakhtowards building, infrastructure andmachinery. The total project cost isestimated to be around Rs.270.00 lakh.Establishment of two units, one each inHindupur, Andhra Pradesh and Kokrajhar,Bodo Territorial Council (BTC), Assamwere approved. M/s Indian Silk Mills,Bangalore and M/s Indi Luo Enterprises,Kokrajhar have established these units inHindupur and Kokrajhar respectively duringthe year 2008-09. Both the units havestarted commercial production. There is aprovision to support for establishment ofthree eri spun silk units during the XIPlan. Under this scheme, one unit atChayyagaon Industrial Growth Centre,Assam has been established and the unithas stared commercial production. Anotherunit has been identified for establishmentat Raipur, Chhattisgarh during the year2009-10.VII. PROJECTS WITH R&D FUNDS1. PRODUCT DESIGN,DEVELOPMENTANDDIVERSIFICATION - P3D CELL"THE COCOON"Product Design, Development,Diversification and Market Support - P3DCell "The Cocoon" was established by112

annual report 2010-11CSB during Xth plan as an R&D activity.The activity envisages the revival oftraditional products, development &diversification of products, marketinformation and support to entrepreneurand exporters. The activities of P3D underCDP are continued in the XI Plan with anoutlay of Rs.50 lakh. Under the project 16nos of Shawls and stoles of Nagalanddesigns using silk yarn have beendeveloped. Second edition of technicalbrochures on Muga Sarees, Silk Knits,Silk Denim, and Silk stretch have beenprepared. A product catalogue has beenprepared which contains product detailsof men, women and kids. It has beenused as blue print to make variousgarments. Based on the product catalogue,already two nos Eri denim shirts and oneno Eri Satin Blazer have been developed.A handloom with Twin cloth slay has beendeveloped and installed in Nagaland toweave two narrow width fabricssimultaneously.VIII SCHEDULED CASTE SUB-PLANAND SCHEDULED TRIBE SUB-PLANThe Schemes / Programmes beingimplemented by the Ministry of Textilesthrough the Central Silk Board are mainlyfor development of sericulture industry,basic seed support and training. CentralSilk Board has been implementing theCatalytic Development Programme, whichis a Centrally Sponsored Scheme sinceIX Plan in which SCs/STs and otherweaker sections of the society have beenlargely benefited. Most of the sericultureactivities especially under vanya sectorare being practiced in the backward areasby SCs / STs. The schemes / componentsformulated under CDP are mainly aimedto benefit these categories of stakeholders. The SC / ST coverage envisagedunder the CDP Scheme ranges from 30-90% depending on the nature of theprogramme / component. It is estimatedthat about 30% of the SCs / STs areengaged in mulberry sericulture while 30-90% of SCs / STs are engaged in vanyasericulture.Out of Rs.75.57 crore approved forimplementation of CDP during the year2009-10, Rs.15.11 crore (20%) wasearmarked for SC / ST components.During the current financial year 2010-11,an amount of 52.15 crore (20%) has beenearmarked for SC / ST against the RE ofRs.260.76 crore under CDP.IXGENDER JUSTICE AND GENDERBUDGETINGIn India about 6.8 million people areinvolved in sericulture and its alliedindustries mostly in the rural area for theirlivelihood. Women constitute over 53% ofthose employed in down stream activitiesin sericulture. Sericulture activities startingfrom mulberry garden management, leafharvesting and silkworm rearing is moreeffectively taken up by the women folk.Silk reeling and weaving activities alsoengage women. Thus, involvement ofwomen in sericulture which would also bein consonance with the National Policy forthe empowerment of women is in the rightdirection.Concerted efforts have been initiated tosupplement the social and culturalrequirements of the women associatedwith silk industry. Under the Centrallysponsored Catalytic DevelopmentProgramme (CDP) financial and technicalassistance was provided for on-farm andpost-farm activities like reeling, dyeing,twisting, printing, finishing etc., Benefitsaccrued inter-alia, to SC/ST and womenworkers. The following programmes havebeen implemented by CSB under CDPfor the benefit of women workers:● Promotion of women friendlytechnology packages, developed bythe research institutes of CSB.●Supply of improved reeling cum113

ministry of textiles●twisting devices and spinning wheelsto the NGOs, women groups,individual women reelers / spinnersat 50% subsidy (CSB & State)Training programmes were organizedto impart training to women reelers /spinners on the operation of improveddevices; and● Implementation of ClusterDevelopment Projects by theintegration of CDP schemes, whereinsupport is provided to Women SelfHelp Groups.XNATIONAL FIBRE POLICY ON SILKThe working group for formulation ofnational fibre policy, critically examinedthe relevant aspects to facilitate formulationof a comprehensive fibre policy on silkand made the following recommendation:1. Intensification of R&D activities andextension work in pre-cocoon andpost cocoon stages for improvingproductivity and quality of silk andincreasing production of bi-voltinesilk in India to bridge the gap betweendemand and supply of quality silk.2. Modernization of post-cocoonactivities and to to make the sectormore competitive, silk machinery viz.Automatic silk reeling, silk twistingmachinery, shuttle-less looms, silkwet processing machinery etc. shouldbe exempted from duty till 2015.3. Silk products viz. raw silk, yarn,waste, woven fabrics, made-ups,garments should be covered underFocus Product Scheme so that theduty scrip or similar benefits shouldalso be included under Vishesh Krishiand Gram Udyog Yojana (VKGUY).4. Introduction of Price SupportSchemes to support farmers againstfall of cocoon price due to adverseweather conditions in traditional silkproducing States.5. Rationalisation of duty structure insector and deduction of import dutyon raw silk.XI RASHTRIYA KRISHI VIKASYOJANAGovernment has decided to includesericulture and allied activities in RashtriyaKrishi Vikas Yojana (RKVY) to be eligiblefor funding under RKVY. It will coversericulture up to the stage of cocoonproduction along with extension systemfor cocoon production and silk yarnproduction in agri-enterprise up to themarketing.The benefits of RKVY can now be availedfor improvement of sericulture extensionsystem, enhancement of soil healthdevelopment of rain fed sericulture andfor integrated pest management. Thebenefits available will be for improvingsilkworm seeds base and formechanization of the sector. The decisionwill help provide support for developmentof market infrastructure and promotion ofSeri enterprise. Projects can be taken upto support non-farm activities and specialschemes can be sanctioned tobeneficiaries of land reforms such asmarginal and small farmers etc. tomaximize return to the sericulture farmer.RKVY was introduced during XI Plan asan Additional Central Assistance Schemeto incentivize the States to draw up plansfor Agriculture and Allied sectors tosupplement state specific strategiesincluding special schemes for beneficiariesof land reforms. The objective of thescheme is to promote public investment inagriculture and allied sectors.XIIBUDGETARY SUPPORT FOR THESERICULTURE AND SILK SECTORFor the year 2010-11, a provision of Rs.320 crore under Plan and Rs. 204.30crore under Non-Plan has been made forCSB.114

annual report 2010-11XIII PHYSICAL PROGRESS ANDACHIVEMENTSPhysical targets and achievements inTable 7.6ProductionS.No. Particulars 2007-08 2008-09 2009-10 2010-11 2011-12XI Plan Achieve- Achieve- Achieve- % Incr/ Target Achieve- Antici- TargetTarget ment ment ment Decr ment pated(2007-12) Over (Apr- Achieve-2008-09 Sept.) mentI Mulberry Plantation(Lakh ha.) 2.18 1.85 1.78 1.84 3.4 2.13 1.81 1.94 2.18II Production of RawSilk (in M.T.)(a) MulberryBV 5000 1175 1250 1200 -4.0 4500 526 1450 5000CB 18000 15070 14360 15122 5.3 17700 7030 16050 18000Sub Total 23000 16245 15610 16322 4.6 22200 7556 17500 23000(b) Vanyaa) Tasar 420 428 603 803 33.2 395 117 925 420b) Eri 2390 1530 2038 2460 20.7 2175 1240 2600 2390c) Muga 190 117 119 105 -11.8 180 79 115 190Sub Total 3000 2075 2760 3368 22.0 2750 1436 3640 3000Grand Total (a+b) 26000 18320 18370 19690 7.2 24950 8992 21140 26000III CumulativeEmployment(Lakh persons) 77.04 61.20 63.10 68.17 8.0 74.16 – 72.5 77.04ExportsExports of various silk products showed a9% decline in 2009-10 compared to 2008-09 due to the recessionary trends inTable 7.7115(Value: In Rs. Crore)Achievement during XI PlanSl. Items of Silk-Goods Export 2007-08 2008-09 2009-10 2010-11(P)No.(April-September)1 Natural Silk Yarn Fabrics, Made-ups 1897.06 2127.72 1971.98 663.402 Readymade Garments 746.55 986.57 854.95 567.303 Silk Carpets 72.11 58.67 40.59 4.324 Silk Waste 12.15 5.23 24.92 20.66TOTAL 2727.87 3178.19 2892.44 1255.68P: Provisional; Source: DGCIS, Kolkataterms of mulberry cultivation, raw silkproduction, employment and export aregiven at table 7.6.major export markets. However, the trendis likely to be reversed this year and silkgoods export is likely to reach aboutRs.3250 Crores in 2010-11. The detailsare given at table 7.7.

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annual report 2010-11CHAPTER VIIITHE WOOL AND WOOLLENTEXTILES INDUSTRY117

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annual report 2010-11CHAPTER VIIITHE WOOL AND WOOLLEN TEXTILESINDUSTRYCENTRAL WOOL DEVELOPMENTBOARD (CWDB)The Central Wool DevelopmentBoard (CWDB) Jodhpur, Rajasthanwas set up under the RajasthanSocieties Registration Act, 1958 in July1987, to administer the implementation ofprogrammes and schemes in CentralSector for the promotion and developmentof wool and woollen industry in thecountry.The Ministry of Textiles had allocated Rs.1500 lakh to the Central WoolDevelopment Board (CWDB) during thefinancial year 2010-11 to implementvarious Plan Schemes and Programmesfor the holistic growth and development ofwool sector. The Board has utilized Rs.1135 lakh under Plan head till December,2010. On the Non-Plan, side a provisionof Rs. 150 lakh was made for 2010-11and the Board had utilized Rs. 125 lakhtill December, 2010.During 2010-11, the Central WoolDevelopment Board had undertaken thefollowing activities:INTEGRATED WOOL IMPROVEMENTAND DEVELOPMENT PROGRAMME(IWIDP)The Integrated Wool Improvement &Development Programme (IWIDP), theflagship Scheme of Wool Sector, is beingimplemented during the XIth Five YearPlan period at an estimated cost of Rs. 48Crore. The Scheme provides support tothe Industry & Wool growers to qualitativelyupgrade product and technology to enablethem to get better returns for their productsand to get a larger share of the domesticand global market. The Programme hastwo main components : (A) Improvementof Wool Fibre and (B) Human ResourceDevelopment and Promotional Activities.During the XIth Five Year Plan period, theProgramme aims to cover 26 lakh sheepfor health coverage, setting up of 10 RamRaising Units, to provide financialassistance for 200 Sheep Pens, FeedSupplement to a total 80,000 sheep,establishing 7 Multiple Facility Centres,Revolving fund for Marketing of 10 lakhKg. wool, to supply 26,000 stud rams forbreed improvement, to benefit 400 Angorarabbit families and 2400 Pashmina goatrearing families and to train 1000 personsalong with other promotional and marketingactivities under Human ResourceDevelopment Programme. Under IWIDP,the Board is implementing differentschemes for improving quantity and qualityof wool produced from sheep, Angorarabbit, Pashmina goat and providingtraining to wool growers, weavers,resource persons etc. along withpromotional and marketing activities.Following schemes are being implementedunder this integrated programme:(A)IMPROVEMENT OF WOOL FIBRESheep & Wool Improvement Scheme(SWIS)The Board had taken up 'Sheep and WoolImprovement Scheme' (SWIS) to improvethe quality and quantity of indigenouswool in the country. The Board isimplementing various projects under this119

ministry of textilesscheme in all major wool producing Stateshaving components for (i) 'Health Care'for treatment, vaccination and medicinesto sheep (ii) 'Breed Improvement' forgenetic improvement of sheep and todistribute stud Rams (iii) support for'Multipurpose Extension Centers' to providedifferent facilities at one place, (iv)'Marketing & Grading Assistance' to woolgrowers to get better returns from wool (v)conducting 'Training Programmes' for woolgrowers in latest techniques of sheeprearing activities, (vi) 'Ram Raising Unit'to develop good quality breedable Ramsand to fulfill requirement of stud Rams,(vii) 'Assistance for Sheep Pen', (viii)provide 'Feed Supplement' to sheep (weak,pregnant / breedable ewes) and (ix)'Creation of Revolving Fund' for marketingof raw wool and to revitalize the stateswool marketing federations/corporationsand optimum utilization of infrastructureavailable with them for this purpose.During Annual Plan 2010-11, 28.50 lakhsheep will be covered under the schemewith financial allocation of Rs. 941 lakh.The Board had utilized Rs. 872 lakh tillDecember,2010 and covered 5.50 lakhnew sheep & 26.50 lakh ongoing sheep,established 10 Ram Raising Farms, 62Sheep Pens, Feed Supplement to 50,000sheep, 2 Multiple Facility Centres andcreated Revolving Fund for Marketing of10 lakh Kg. wool. The Board is presentlyimplementing various projects under thisscheme in all major wool producing Stateslike : Rajasthan, Gujarat, Madhya Pradesh,Uttrakhand, Maharashtra, Haryana,Jammu & Kashmir, Himachal Pradesh,Andhra Pradesh and Karnataka.Angora Wool Development SchemeThe Board is implementing Angora WoolDevelopment scheme in hilly areas ofcountry to support Angora rearing activityamong farmers, strengthening GermplasmCentre (GPC), facilitating distribution ofAngora rabbit among rearers as foundationstock along with necessary training, feedand nutrition support free of cost. Thescheme has following components:i) Establishment of Mini Angora rabbitFarmii)iii)iv)Mini Feed Manufacturing UnitsCommon Facility Centre (CFC) forAngora Wool Processing and TrainingResearch & Development,v) Strengthening of Angora rabbitGermplasm Centre.During the financial year 2010-11, 100Angora rabbit rearing families are beingprovided benefits at an estimated cost ofRs. 69 lakh. The Board has utilized Rs.54 lakh and covered 100 new familiesfrom the States of Uttarakhand, HimachalPradesh, Arunachal Pradesh andRajasthan till December, 2010.(iii) Pashmina Development SchemeDuring the Xth Five Year Plan period, theScheme for the development of PashminaWool was launched in Ladakh region ofJ&K State as part of Prime Minister'sSpecial Package. The Scheme iscontinuing in the XIth Five Year Planperiod. The components of the Schemeare:●●●●●●Buck Exchange Programme.Distribution of high quality Pashminabucks in non-traditional areas toenhance Pashmina production.Training formation of BreedersAssociation (Guilds) or villagePashmina Cooperative Societies.Establishment of Fodder Bank.Refresher Training to NomadicBreeders as Paramedics.Health Coverage.120

annual report 2010-11●●●Refresher Courses to In-servicecandidates for 3 days/breederscamps.Fodder Development.Provision of improved PashminaCombs for Efficient Harvesting ofPashmina.During 2010-11, the Board is providingfacilities to 800 families in Ladakh regionof J&K State at an estimated cost of Rs.28 lakh.B. HUMAN RESOURCEDEVELOPMENT & PROMOTIONALACTIVITIESThe Board had identified some areas forundertaking various training programmesin collaboration with various reputedorganizations/institutions/Departments on:Farm management for sheep; Angora &Pashmina rearing, sheep shearing bymachines, testing & report writing andquality control/assurance, wool grading &marketing, processing of wool and woollenproducts, latest weaving and designingtechniques to weavers. The followingactivities are part of HRD & PromotionalActivities:●●●●Marketing and Promotional activities(organizing fairs and Woollen Expos,seminars and workshops, etc.)Market Intelligence and Publicity.Publication of quarterly newsmagazine 'Wool Ways'.Research, Study and Consultancy.● Training under Weaving andDesigning Training Centre, Kullu.●●Monitoring and Evaluation of Scheme.Human Resource Development andTraining to farmers/breeders/weavers.●Strengthen and upgrade wool testing,wool grading and marketing facilities.During the financial year 2010-11, theBoard had provided Rs. 130 lakh for theabove activities. Till December, 2010, theBoard utilized Rs. 126 lakh and impartedtraining to 135 resource persons,organized 10 Woollen Expos, sanctionedthree R & D projects in favour of WoolResearch Association and Central Sheep& Wool Research Institute and one trainingprogramme in favour of Indian Institute ofCarpet Technology, Bhadohi.QUALITY PROCESSING OF WOOL ANDWOOLLEN SCHEMEThe unorganized woollen sector suffersfrom inadequate processing facilities. Thepre loom & post loom facilities areoutdated. The sector uses crude form ofcarding, which results in low productivity,besides affecting the health of workers.The spinning technology is primitive, whichis urgently required to be upgraded throughimproved equipments/machines. TheScheme provides a comprehensive servicepackage from deburring to carding &spinning stage. The setting up of modernplants will increase wool-processingcapacity, will provide value addition toIndian wool industry, will create moreemployment and will augment income ofpersonnel engaged in these decentralizedactivities.The Board is implementing a schemenamely "Quality Processing of Wool" (preloomand post-loom processing activities)for improving quality of raw wool, finishingof woolen products and value addition towool and woollen products. This schemeattracts the spinners to modernize theirobsolete and small yarn-manufacturingunits. The project beneficiaries are StateWool Boards/Corporations/Non-Governmental Organizations/RegisteredSocieties/Private Entrepreneurs etc.engaged in processing of wool and121

ministry of textileswoollens. Under this scheme, the agencyhas to bear the cost of land & building bytheir own resources and should haveclear ownership rights. The CWDBprovides grant under non-recurringexpenses for purchase of machinery &plants only required for setting up theCommon Facility Centre (CFC). Recurringexpenditure shall be borne by the agency/association out of its own resources.A provision of Rs. 232 lakh has beenmade in 2010-11 to set up 7 new CommonFacility Centers for Pre-loom activity likewool scouring, carbonizing, dyeing andcarding of wool etc. The scheme is beingimplemented in project mode with Rs. 50lakh or 50% of the total project cost,whichever is less towards cost ofmachinery only. Till December,2010, theBoard has utilized Rs. 83 lakh andsanctioned 5 new CFCs for Pre-loomprocessing activities at Rajkot, Kullu,Mandi, Dehradun and Beawar.SOCIAL SECURITY PROGRAMME FORSHEEP BREEDERSThe Board is implementing this scheme tobenefit the sheep breeders by providinglife insurance to them and their sheepflock by two plans (i) Sheep BreedersInsurance Scheme and (ii) SheepInsurance Scheme.The basic objective of these insuranceplans is to provide enhanced insurancecoverage to sheep breeders in the caseof natural death/accidental death, total/partial disability and for their sheep flockin case of accident including fire, lightning,storm, tempest, flood, inundation,earthquake, famine and diseasescontracted or occurring during the periodof the policy.(i)Total premium payable under 'SheepBreeders Insurance Scheme' is Rs.330/- and contribution of sheepbreeder, Central Wool Development(ii)Board & Social Security Fund (ofGovt. of India) is Rs. 80/-, 150/- andRs. 100/- per year, respectively. Inthe event of natural death of thesheep breeder, sum assured is Rs.60,000, in case of partial disabilitysum assured is Rs. 75000/- and incase of accidental death/totaldisability sum assured is Rs.1,50,000. Additional benefit ofscholarship upto two child @ Rs.300 per quarter per child is also tobe paid to the student studying from9th standard to 12th standard.Total premium payable under 'SheepInsurance Scheme' is Rs. 44/- persheep. Out of it, Rs. 19/- per sheepis contributed by the sheep breedersand CWDB's contribution is Rs. 25/- per sheep. In the event of death ofsheep, sum assured is Rs. 1,200/-per sheep. The benefit of subsidy isprovided to beneficiary for maximumperiod of three year.During the financial year 2010-11, theBoard made total financial provision ofRs. 100 lakh to provide insurancecoverage for 3,00,000 sheep and 15,000sheep breeders. The Board isimplementing Social Security Schemeswith the help of the Oriental InsuranceCo. Ltd. and Life Insurance Co. Ltd (LIC)in the States of Rajasthan, Gujarat,Madhya Pradesh, Uttrakhand,Maharashtra, Haryana, Jammu & Kashmir,Himachal Pradesh Karnataka & AndhraPradesh. The Board has covered 90,742sheep and 11,779 sheep breeders tillNovember, 2010.FUTURE PLANSFor the holistic growth and developmentof Wool Sector, the Government is makingserious efforts to achieve the followingobjectives by 2012:●Increase yield of specialty wool fiberviz., Pashmina and Angora.122

annual report 2010-11● Improve fineness of wool by 2(micron)●●Increase wool yield per animal by25%Reduce annual mortality of sheep by10%●●Widen the uses of the coarse andcoloured decanni wool (Southernregion) by product development anddiversification.Increase the demand for Indian woolin domestic and international market.123

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annual report 2010-11CHAPTER IXDECENTRALISEDPOWERLOOM SECTOR125

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annual report 2010-11CHAPTER IXDECENTRALISED POWERLOOM SECTORThe decentralized Powerloom Sectorplays a pivotal role in meeting theclothing needs of the country. Thepowerloom industry produces a widevariety of cloth, both grey as well asprocessed. Production of cloth as well asgeneration of employment has been rapidlyincreasing in the powerloom sector. Thereare 22.69 lakh powerlooms in the countryas on 31.10.2010 distributed overapproximately 5.11 lakh units. Thepowerloom sector contributes about 61%of the total cloth production of the country,and provides employment to about 56.64lakh persons. More than 60% of the clothmeant for export comes from thepowerloom sector.Growth in the Powerloom SectorThe estimated number of powerlooms inthe decentralized sector in the country till31st October 2010 were 22,69,469. Theyear-wise growth in the number of loomsinstalled is given at table 9.1.Cloth production (Million Sq Mtrs)The details of total cloth production andproduction by powerloom sector duringthe last six years are given attable 9.2.Product ProfileThe Powerloom Sector produces a varietyof fabrics for domestic as well as exportmarkets, such as shirting, suitings, dressmaterial, saree, dhoti, sheetings, towels,chaddar, furnishing, shawls, blankets,tweeds etc. made out of cotton, blended,synthetic, silk, wool etc.Technology LevelAs on 31st October 2010 there are 22.69lakh looms installed in the country. Mostof these looms are conventional, plain /ordinary looms of old vintage, withoutdated technology, very low speed,marked by low productivity andTable 9.1Year No. of Powerlooms Growth %age2002 - 2003 16,92,737 -2003 - 2004 18,36,856 8.5%2004 - 2005 19,02,953 3.6%2005 - 2006 19,43,892 2.2%2006 - 2007 19,90,308 2.4%2007 - 2008 21,06,370 5.8%2008 - 2009 22,05,352 4.7%2009 - 2010 22,46,474 1.9%2010 - 2011 (Upto 31.10.2010) 22,69,469 1.02%127

ministry of textilesTable 9.2Year Total Production on %age of Powerloomproduction Powerloom over total Production2004 - 2005 45378 28325 62%2005 - 2006 49577 30626 62%2006 - 2007 53389 32879 62%2007 - 2008 56025 34725 62%2008 - 2009 54966 33648 61%2009 - 2010 (P) 59809 36644 61%2010 - 2011(April - Oct. 2010) (P) 35805 22067 62%manufacturing by and large defect proneand low value fabrics.Problems faced by the decentralizedPowerloom sectori. Technological obsolescence & smallsize of units with fragmentationii.iii.ivHigh power tariffs with uncertainpower supplyLack of credit availability & PoormarketabilityLow HRD skill levels and poor qualityconsciousnessv. Globalization of the textile trade &threat of import penetrationModernization & strengthening ofPowerloom Service CentreOut of 44 PSCs, under TextileCommissioner and other agencies, 43Powerloom Service Centres (PSCs) havebeen modernized with modern machinesand equipments such as shuttleless loomsof types projectile, Rapier, Airjet, AutomaticCop Changing looms, Drop box looms,Pirn winders, cone winders, sectionalwarping machines, DG sets etc. Some ofthe PSCs already modernized have beenfurther upgraded and strengthened byproviding Airjet looms, Embroiderymachine, Textile design software etc. Fewmore PSCs are to be further upgradedduring the year. Out of 44 PSCs 14 PSCsare under the office of the textilecommissioner, 25 PSCs are run bydifferent TRAs, 4 PSCs under the KSPDC,Bangalore & one PSC is run by the M.P.State Govt.Computer Aided Design CentersThe following 17 Computer Aided DesignCentres (CADC) have been established:-Coimbatore, Karur, Komarapalayam andSomanur (Tamil Nadu), Surat andAhmedabad (Gujrat), Solapur, Ichalkaranji,Bhiwandi and Mumbai (Maharashtra),Bilwara (Rajasthan) and Ghaziabad (UttarPradesh), Bangalore and Doddaballapur(Karnataka), Burhanpur and Indore(Madhya Pradesh) and Panipat (Haryana).These CADCs help the decentralized andsmall Powerloom units to access newdesigns and improve the quality of thefabric.Schemes being implemented fordevelopment of DecentralisedPowerloom Sectori) Group Insurance Scheme to thepowerloom workersGovernment of India have launched a128

annual report 2010-11revised Scheme "welfare of Powerloomworkers through Group InsuranceScheme" in association with LIC from 1stJuly 2003.In accordance with the XIth Five YearPlan, the scheme has been modified bymerging the existing JBY Scheme andAdd-on GIS w.e.f. 1st January 2008. Asper the modified Scheme, the totalpremium is Rs.330/- out of which, Rs.150/- is to be borne by the Office of the TextileCommissioner, Government of India andRs.100/- is being paid by the LIC from thesocial security fund of Government ofIndia. Only a premium of Rs.80/- is to bepaid by the powerloom weaver for gettingthe benefits under the said scheme. Thecoverage benefit under the scheme isgiven at table 9.3.In addition to the above, a worker underJBY will also be entitled the educationalgrant of Rs.600/- per child / per half yearfor two children studying in IX to XIIstandard for a maximum period of 4 yearsunder Shiksha Sahayog Yojana (SSY).Under the said schemes, 8,15,877powerloom workers have been insured sofar involving GOI share of premium to theextent of Rs.832.80 lakh since July 2003to November, 2010 and the progress ofthe Scheme is as given at table 9.4.Group Workshed SchemeThe Govt. of India has introduced aGroup Workshed Scheme fordecentralized Powerloom Sector on29.7.2003, under the Xth five-year plan.Table 9.3(Value in Rs.)Component Natural Accidental Total PartialDeath Death Permanent PermanentDisability DisabilityGIS 60,000/- 1,50,000/- 1,50,000/- 75,000/-Table 9.4Year No. of Workers enrolled GOI Share of Premium (Rs.)JBY AGIS Total JBY AGIS Total2003-04 49,498 10,840 60,338 29,69,880 9,75,600 39,45,4802004-05 92,992 16,810 1,09,802 55,79,520 15,12,900 70,92,4202005-06 77,907 18,489 96,396 46,74420 16,64,010 63,38,4302006-07 74,115 19,936 94,051 44,46,900 17,94,240 62,41,1402007-08 1,06,492 15,445 12,1937 82,69,530 13,90,050 96,59,5802008-09 1,14,011 - 1,14,011 17,101,650 - 17,101,6502009-10 1,42,205 - 1,42,205 2,13,30,750 - 2,13,30,7502010-11(upto Dec.2010) 87,864 - 87,864 1,31,79,600 - 1,31,79,600Total 7,45,084 81,520 8,26,604 7,75,52,250 73,36,800 8,48,89,050129

ministry of textilesThe scheme aims at setting up ofPowerloom Parks with modern weavingmachinery to enhance theircompetitiveness in the Global Market andthe same has been modified. As per themodified Scheme, subsidy for constructionof Workshed would be limited to 40% ofthe unit cost of construction subject to amaximum of Rs. 160/- per sq. ft. whicheveris less. Ordinarily, minimum 4 weaversshould form a group each with 48 modernlooms of single width or 24 wider widthlooms will be allowed to be installed. Themaximum subsidy will be Rs.12 lakh perperson. The scheme does not envisagemore than 500 looms under one projectproposal. The performance of the schemeis given at table 9.5.INTEGRATED SCHEME FORPOWERLOOMSECTORDEVELOPMENTIn order to achieve the overall developmentof the powerloom sector, Govt. hasannounced the Integrated Scheme forPowerloom Sector Development during2007-08. The scheme has got the followingcomponents :-1) Marketing Development programmefor Powerloom Sector2) Exposure visit of Powerloom Weaversto other Clusters3) Survey of the Powerloom Sector4) Powerloom Cluster Development5) Development and Upgradation ofskills (HRD)Performance of the Scheme(a) Buyer Seller MeetYear No. of Amount releasedMeet (Rs. in Crore)2007-08 7 0.2252008-09 9 0.5372009-10 10 0.5662010-11(uptoDec.2010) 6 0.50 (Advance)(b) Exposure VisitsYear No. of Amount releasedMeet (Rs. in Crore)2007-08 301 0.062008-09 558 0.102009-10 706 0.182010-11(uptoDec.2010) 582 0.12 (Advance)(c) Powerloom Cluster DevelopmentTowards the developments of differentpowerloom clusters identified, 30 CDOswere given training in cluster developmentby the EDI, Ahmedabad during 2007 - 08involving the total expenditure of Rs.15.97lakh and Rs.4.80 lakh has been spent forrefresher training of Officers from RegionalTable 9.5Performance of the Scheme (Rs. in Crores)Year Budget Fund No. of ProjectAllocation Utilization Approved2007-08 1.125 1.125 22008-09 1.365 1.365 132009-10 2.764 2.763 152010-11 (upto Dec.2010) 4.500 0.77 7130

annual report 2010-11Offices & Headquarters. The following 8clusters have been selected fordevelopment and CDO have been postedin the respective cluster.1) Burhanpur, 2) Nalagonda, 3) Ranaghat4) Umbergaon 5) Amritsar 6) Karur7) Bhilwara 8) Maunathbhanjan(d) Development & Upgradation of skills(HRD)Performance of the 44 PSCs for theperiod 2007-08, 2008-09, 2009-10 & 2010-11 (Upto Sept.2010)are given at table 9.6.20% CREDIT LINKED CAPITALSUBSIDYThe Govt. has implemented 20% CreditLinked Capital Subsidy Scheme under theTUFS, especially in order to help thedecentralized Powerloom Sector. Thescheme was announced on 6.11.2003 byMOT and is applicable to Powerlooms inSSI sector only. Under the scheme,Rs.203.66 crore has been disbursed to2772 cases since November 2003 to30.11.2010. The scheme has been renamedas 20% MMS since 1.4.2007.Progress of this Scheme is given attable 9.7.There is no separate Budget allocation forthis Scheme. Fund is earmarked out ofthe Fund allocated to TUF Scheme.ALL INDIA POWERLOOM BOARDThe All India Powerloom Board (AIPB)Table 9.6Performance details 2007-08 2008-09 2009-10 2010-11(Upto Sept.2010)No. of trainees 10181 13099 12644 5999No. of samples tested 77129 66709 74197 38652No. of Design developed 4540 4728 4709 2475No. of consultancy /troubleshooting 4686 4600 5001 2863Total Revenue (Rs. in lakh) 121.67 116.08 115.79 56.82No. of seminar, exhibitionsand workshops 1069 722 900 402Table 9.7S. Year No. of units Amount of subsidy releasesNo.(Rs. in Crore)1. 2003-04 4 0.102. 2004-05 150 6.003. 2005-06 368 23.004. 2006-07 827 59.865. 2007-08 567 44.956. 2008-09 404 32.487. 2009-10 363 30.578. 2010-11(Upto Dec.2010) 116 8.41131

ministry of textileswas first constituted as an Advisory Bodyin November 1981 and since then GOIhave reconstituted AIPB from time totime. AIPB has been reconstituted on21st July 2010 for a period of 2 years. Ithas representatives of the Central andState Govts., Powerloom Federations /Associations of Powerloom Industry, asits member and is headed by the Hon'bleUnion Minister of Textiles as the Chairman.MEGA CLUSTERSImplementation of Mega Clusters● Pursuant to the BudgetAnnouncement 2008-09, theGovernment decided to scale upinfrastructure and production bytaking up six centers for developmentas mega clusters in Varanasi andSibsagar for handlooms; Bhiwandiand Erode for powerlooms; andNarsapur and Moradabad forhandicrafts, on a Public PrivatePartnership (PPP) model. Five moreMega Clusters, 2 each for Handicraftsat Srinagar (J&K) and Mirzapur-Badohi (UP) Handlooms atVirudhnagar (TN) and Murshidabad(WB) and one for powerlooms atBhilwara (Raj) were announced for2009-10.●The scheme for mega clusterenvisage support to weavers/artisans,●●both in and outside the cooperativefold, including those in Self HelpGroups (SHGs), Non GovernmentalOrganisations (NGOs) etc. Thescheme provides for development ofall the facets of selected clusters likeraw material support, design inputs,up-gradation of technology,infrastructure development, marketingsupport, welfare of weavers etc. Aconvergence of the existingdevelopment interventions of theMinistry of Textiles & other Ministries/Departments will be affected in theseclusters. The scheme will also raiseliving standards of the weavers/artisans by improving theinfrastructure facilities, with betterstorage facilities, technology upgradationin pre-loom/on-loom/postloomoperations, weaving shed, skillup-gradation, design inputs, healthfacilities etc.The Scheme will be implementedover a period of 5 years. An amountof Rs. 70 crore has been earmarkedfor each mega-cluster.Agencies, which would be responsiblefor implementation of the Projects(CMTAs) for all 11th mega clustershave been selected. Substantialprogress in implementation of megaclusters schemes in all 11th projectshas since been made.132

annual report 2010-11CHAPTER XHANDLOOMS133

134ministry of textiles

annual report 2010-11CHAPTER XHANDLOOMSThe Minister of State for Textiles, Smt. Panabaka Lakshmi releasing Handloom Weavers'photo ID Card. Smt. Rita Menon is also seenThe handloom forms a precious partof the generational legacy andexemplifies the richness anddiversity of our country and the artistry ofthe weavers. Tradition of weaving byhand is a part of the country's culturalethos.As an economic activity, handloom is the2nd largest employment provider next onlyto agriculture. The sector about 23.77 lakhhandlooms provides employment to 43.31lakh persons. Of which, 10% are scheduledcastes, 18% belong to scheduled tribes,45% OBC and 27% are from other Castes.Production in the handloom sector recordeda figure of 6769 million sqr.meters in theyear 2009-10, which is about 23.23% overthe production figure of 5493 million sqr.meters recorded in the year 2003-04.During 2010-11 production in the handloomsector is reported to be 3770 million sqr.meters (P) (April - Oct., 2010) and is givenat table 10.1.The Office of the DevelopmentCommissioner for Handlooms since itsinception in 1976 has been implementingvarious schemes for the promotion anddevelopment of handloom sector andwelfare of handloom weavers. During11th Five Year Plan (2007-08 to 2011-12), five schemes are underimplementation, which are - (i) Integrated135

ministry of textilesTable 10.1Cloth Production by Handloom SectorYear Cloth Share of Ratio of TotalProduction Handloom Handloom to Clothby Handloom in the total Powerloom Production*cloth (in terms ofproduction cloth)2003-04 5493 16.2 1:4.91 338742004-05 5722 16.1 1:4.95 355732005-06 6108 15.9 1:5.01 383902006-07 6536 15.9 1:5.03 411612007-08 6943 16.0 1:4.97 432652008-09 6677 15.9 1:5.04 421212009-10 6769 14.9 1:5.41 453742010-11(upto Oct, 2010) 3770 13.98 1:5.85 26967* The total cloth production includes Handloom, Powerloom and Mill Sector excluding hosiery,khadi, wool and silk.Handloom Development Scheme; (ii)Handloom Weavers ComprehensiveWelfare Scheme; (iii) Marketing & ExportPromotion Scheme; (iv) Mill Gate PriceScheme; and (v) Diversified HandloomDevelopment Scheme.INTEGRATED HANDLOOMSDEVELOPMENT SCHEME● The Integrated HandloomDevelopment Scheme (IHDS)envisages taking care of all theneeds of the weavers in a cluster inan integrated and coordinatedmanner. The scheme aims to focuson formation of weavers group as avisible entity, develop the handloomsweavers groups to become selfsustainable,inclusive approach tocover weavers both within andoutside the cooperative fold, skill upgradationof handloom weavers/workers to produce diversifiedproducts with improved quality tomeet the market requirements,provide suitable workplace to weavers●●to enable them to produce qualityproducts with improved productivityetc.Under the scheme, clusters havingabout 300 - 500 looms under each,are taken up for development in atime frame of 3 years at an uppercost of Rs.60.00 lakh per cluster.Handloom weavers, who are notcovered by the clusters, aresupported through a 'GroupApproach", which will be implementedin a project mode. A Group, consistingof 10 weavers or more, is providedfinancial assistance for (i) Basicinputs; (ii) Training in weaving, dyeing,designing and managerial disciplines;and (iii) Construction of Work-sheds.During the year 2009-10, there wasa budgetary provision of Rs.125.00crore (Rs.95.00 crore for GeneralStates and Rs.30.00 crore for NERStates). Out of Rs.125.00 crore, asum of Rs.115.57 crore was releasedto various State Governments/UTs136

annual report 2010-11●and other Organizations. Against atarget of 100 clusters, 52 Clusterswere sanctioned, covering 16,110handloom weavers and a sum ofRs.20.89 crore was released, whichalso includes the second installmentof earlier sanctioned projects. Inaddition, 411 Group ApproachProjects, covering 11,411 handloomweavers were sanctioned and a sumof Rs.19.04 crore was released,which also includes the secondinstallment of earlier sanctionedprojects. Under Marketing IncentiveComponent of IHDS, a sum ofRs.74.32 crore was released tovarious State Governments/UTs,covering 15,68,115 weavers.During the year 2010-11, there is abudgetary provision of Rs.172.05crore (Rs.152.05 crore for GeneralStates and Rs.20.00 crore for NERStates). Out of Rs.125.00 crore, asum of Rs.141.51 crore (upto 23rdFebruary, 2011) has been sanctionedto various State Governments/UTsand other organizations. Against thetarget of 120 Handloom Clusters, 77Clusters have been sanctioned anda sum of Rs.41.18 crore (upto 23rdFebruary, 2011) has been released,which includes the second installmentof earlier sanctioned projects. Inaddition, 569 Group ApproachProjects have also been sanctionedand a sum of Rs.26.88 crore hasbeen released, which includes theearlier sanctioned projects. UnderMarketing Incentive Component ofIHDS, a sum of Rs.63.61 crore hasbeen released to various StateGovernments/UTs.PhaseTable 10.2No. ofClusterssanctionedPhase-I (2006-07) 20Phase-II & III (2007-08) 251Phase-IV (2008-09) 131Phase-V (2009-10) 52Phase-VI (2010-11)(Upto 23rd Feb., 2011) 77Total 531HANDLOOMWEAVERS'COMPREHENSIVE WELFARE SCHEMEDuring the XI Plan and 2007-08 onwardsthe Government of India is implementingtwo separate schemes namely the 'HealthInsurance Scheme' for providing healthcare facilities to the handlooms weaversin the country and the 'Mahatma GandhiBunkar Bima Yojana' for providing LifeInsurance cover to the handloom weaversin case of natural / accidental death, astwo components of the scheme namelyHandloom Weavers' ComprehensiveWelfare Scheme. The details of thescheme are as under:HEALTH INSURANCE SCHEMEThe Health Insurance Scheme isimplemented through the ICICI LombardGeneral Insurance Company Ltd. Thescheme for the Policy periods 2010-11and 2011-12 will be implementedthroughout India in two Zones. The annualpremium under the scheme for 2010-11for Zone I is Rs.939.76/- and for Zone IIis Rs.770.99/- (including Service Tax) asper the details given at table 10.3.●Number of Clusters taken up so farare given below:Number of Clusters taken up by 2010-11(Upto 23rd February, 2011) are given istable 10.2.The scheme envisages covering (a) notonly the weaver but also his wife and twochildren (b) covers all pre-existing diseasesas well as new diseases and (c) has asubstantial provision for OPD. The ancillaryhandlooms workers like those engaged in137

ministry of textilesTable 10.3Zone-IZone-IINumber of Clusters covered 317 375Govt. of India Share(a) Premium Rs.681.60 Rs. 559.20(b) Service Tax Rs.87.76 Rs. 71.99Total (GOI share) Rs. 769.36 Rs.631.19*Weaver/State Govt. contribution Rs. 170.40 Rs. 139.80Total Premium (Including S. Tax) Rs.939.70 Rs. 770.99* A minimum contribution by the weavers should be Rs. 50/- per family even in case when StateGovernments are making a contribution on his behalf.warping, winding, dyeing, printing, finishing,sizing, Jhala making, jacquard cutting etc.are also eligible to be covered. Theannual limit per family is Rs. 15,000/- outof which OPD cover is for Rs. 7,500/-.During the year 2007-08, a sum of Rs.102.60 crore, as provided under theRevised Estimates, was released to theICICI Lombard as Central share ofpremium. The coverage of weavers underthe scheme during the year 2007-08 was17.74 lakh.The Budget provision (as per R.E) for theyear 2008-09 under the Health InsuranceScheme was Rs. 120.82 crore and thiswas released to the ICICI LombardGeneral Insurance Company Ltd. towardsCentral Government's share of premium.18.78 lakh weavers including those fromthe North Eastern Region were coveredduring 2008-09.The budget provision under the HealthInsurance Scheme for 2009-10 was Rs.115.85 crore. The entire amount hadbeen released to the ICICI LombardGeneral Insurance Company Ltd towardsCentral Govt. share of premium. During2009-10, 16.11 lakh weavers have beencovered.During 2010-11, there is a budget provisionof Rs. 155.30 crore and a target of 16lakh weavers is proposed to be covered(8 lakh from Zone I and 8 lakh fromZone II).MAHATMA GANDHI BUNKAR BIMAYOJANAThe Mahatma Gandhi Bunkar Bima Yojanais being implemented through the LifeInsurance Corporation of India. The annualpremium of Rs. 330/- per member isshared as given at table 10.4.Table 10.4GOI contributionWeavers' contributionLIC's shareTotalRs. 150/- p.a.Rs. 80/- p.a.Rs. 100/- p.a.Rs. 330/- p.a.During the 11th Plan, the benefits availableunder the Mahatma Gandhi Bunkar BimaYojana are given at table 10.5.Table 10.5S. Benefits fromNo. 1.10.071. Natural Death Rs. 60,000/-2. Accidental Death Rs. 1,50,000/-3. Total Disability Rs. 1,50,000/-4. Partial Disability Rs. 75,000/-In addition to the above under theMahatma Gandhi Bunkar Bima Yojana, ascholarship of Rs. 300/- per quarter per138

annual report 2010-11child is given to the students studying instandard IX to XII for a maximum periodof four years or till they complete XIIstandard, whichever event occurs earlier.The benefit is restricted to two children ofthe member covered.During the year 2007-08, against theRevised Estimates of Rs. 13.00 crore, anamount of Rs. 12.98 crore was spent,4.66 lakh weavers were covered during2007-08. The entire budget of Rs. 3.10crore provided for the scheme during theyear 2008-09 had been utilized. 5.75 lakhweavers had been covered during thefinancial year 2008-09 under the scheme.For the year 2009-10 there is a budgetprovision of Rs. 3.10 crore under MahatmaGandhi Bunkar Bima Yojana and theentire amount of Rs. 3.10 crore has beenreleased to the LIC towards Central Govt.share of premium. During 2009-10, 5.27lakh weavers have been covered.During 2010-11, there is a target of 6 lakhweavers to be covered. As of November2010, Rs. 6.87 crore has been releasedto LIC and 4.12 lakh weavers have beencovered under the scheme upto December2010.MARKETING & EXPORT PROMOTIONSCHEMEThe Marketing Promotion envisages awide gamut of activities for the promotionand marketing of handloom products.The office of Development Commissionerfor Handlooms assist the StateGovernment/Implementing agencies inundertaking the following activities:●●●●Organising of Exhibitions, Events andCraft MelasSetting up of Urban HaatsSetting up of Marketing Complexes/Handloom Havelies.Publicity and Awareness and Brandbuilding●●●Geographical Indication ActHandloom House at JanpathBrand building through HandloomMarkDuring the year 2009-10, 561 eventswere sanctioned to various States whichinclude 26 National Handloom Expos, 117Special Handloom Expos, 411 DistrictLevel Events and 7 Craft Melas. During2010-11 till February, 2011, 680 MarketingEvents have been sanctioned whichincludes 37 National Handloom Expos,145 SHEs, 494 DLEs & 4 Craft Melas. Asum of Rs. 49.60 core out of the totalbudget provision of Rs.50.00 crore (B.E.)was release during 2009-10. During 2010-11, a sum of Rs. 50.94 crore has beenreleased till February 2011 against theRE of Rs. 61 crore.BRAND BUILDING THROUGHHANDLOOM MARKThere will be greater emphasis on BrandDevelopment through Handloom Markduring the XI Five Year Plan. TheHandloom Mark was launched by theHon'ble Prime Minister of India on 28thJune, 2006. The purpose of HandloomMark is to serve as a guarantee to thebuyer the handloom product beingpurchased is a genuine handwovenproduct and not a powerloom or millmade product. Also, in the new ForeignTrade Policy, incentives to handloomproducts bearing Handloom Mark havebeen provided. Handloom Mark will bepromoted and popularized throughadvertisements in newspapers andmagazines, electronic media, syndicatedarticles, fashion shows, films etc.The Textiles Committee is theImplementing agency for promotion ofHandloom Mark. As on 30th Nov. 2010,177.33 lakh handloom mark labels havebeen sold to 7328 stakeholders. 747retails outlets are selling handloom goodswith handloom mark label.139

ministry of textilesThe new beneficiaries now included inthe Handloom Mark scheme to get thebenefits are: Self Help Groups, JointLiability Groups, Consortia, Producercompanies, Handloom Weavers Groupsor any other legal entity organizationinvolved in Handloom activities andapproved by Development Commissionerfor Handlooms with a one time registrationfee of Rs.500.Sale price of one label was brought downfrom Rs. 1.25 (at the time of launch) to 60paise in January, 2007. Application formare now available free of cost. TheRegistration fee for individual weavers wasreduced to Rs.25 (from Rs.100) and forMaster weavers to Rs.500 (from Rs.2000).HANDLOOM MARKETING COMPLEX,JANPATH, NEW DELHIA world class Handloom MarketingComplex is proposed to be set up atJanpath, New Delhi to provideinfrastructure support to handloomagencies with a view to provide permanentmarketing outlets that will enable handloomagencies to augment their sales. Thishandloom marketing complex willshowcase the exquisite varieties ofhandlooms produced all over the countryby the adept weavers and will also act asa forum for the promotion of handloomproducts in the domestic as well asinternational markets. The complex islikely to be completed by the mid of 2011.SANT KABIR AWARDThis award is conferred on suchoutstanding weavers who have madevaluable contribution in keeping alive thehandloom heritage and also for theirdedication in building up linkages betweenthe past, present and the future throughdissemination of knowledge on traditionalskills and designs. SANT KABIR AWARDfor handloom weavers will be conferredevery year, beginning from the year 2009.Each award consist of one mounted goldcoin, one shawl and a citation. In addition,financial assistance to the extent of Rs.6.00 lakh is also be given to each of theSant Kabir Awardee to innovate andcreate 10 new products of high level ofexcellence, of high aesthetic value and ofhigh quality. 10 handloom weavers havebeen selected for Sant Kabir Award forthe year 2009.HANDLOOM WEEKHandlooms constitute a living heritage ofour country reflecting the ethos of the artand craft traditions of our country whichgives employment to about 43.3 lakhpeople. It is the only environmental friendlyfabric requires continuous promotion,adoption and protection. "Handloom Week"was celebrated for the first time in thecountry from 21st December to 27thDecember. During the Handloom week anumber of promotional and awarenessprogrammes, organisation of domestichandloom expos , fashion shows, publicitythrough newspapers, magazines, outdoorpublicity, through electronic media wereundertaken substantially.During the current financial year 2010-11,Handloom Week was celebratedthroughout the country from 21st to 27thDecember, 2010. A series of fashionshows of handloom ensembles designedby famous designers were held atChennai, Delhi and Ranchi. During thehandloom week, an exhibition of handloomproducts on silken them (TANTAVI) andBuyer Seller Meet was organized at ShilpiHaat, Rajiv Gandhi Handicrafts Bhawan.Third National Handloom Census Reportwas released on 23rd December, 2010and Photo Identity Cards were also issuedto some handloom weavers by the Hon'bleMinister of State for Textiles. An exhibitioncum-saleof Handloom Mark and SilkMark products in collaboration with SilkMark Organisation was held at IndianIslamic Centre from 24th to 26th Dec,140

annual report 2010-112010. For the first time Essay Writingcompetition and Handloom apparel designcompetition was also conducted andwinners were given cash award andcertificates.INCREASE IN THE NUMBER OFMARKETING EVENTSThe target of marketing events for theyear 2010-11 has been increased to 650from 561 sanctioned during the year2009-10 in order to give adequateopportunity for the weavers to markettheir products directly to the consumerswithout the intervention of the middlemen.As on February, 2011, 680 marketingevents have been sanctioned.THE GEOGRAPHICAL INDICATIONS OFGOODS (REGISTRATION &PROTECTION) ACT 1999The Geographical Indications of Goods(Registration & Protection) Act 1999provides legal protection to GeographicalIndications of goods etc., and preventsunauthorized use of these by others. Theoffice of Development Commissioner forHandlooms provides financial assistanceupto Rs.1.5 lakh per item to register forregistering the handloom items under GIAct. So far, financial assistance to register35 items have been provided by thisoffice to various States.EXPORT PROMOTIONThe objective of the Handloom ExportPromotion is to assist the handloomagencies for developing & marketing ofexport worth handloom products and theirinternational marketing by way ofparticipation in international exhibitionsand buyer seller meets.During the year 2009-10, 19 ExportProjects were sanctioned and varioushandloom agencies participated in 17international fairs/exhibitions. During thecurrent year, 03 Export Projects havebeen sanctioned and 21 international fairshave been approved for participation tillFebruary, 2011.HANK YARN PACKAGE NOTIFICATIONHandloom sector is largely dependent onthe organized mill sector for supply of itsraw material i.e. yarn. This sector usesthe bulk of its yarn in the form of hanks.The Central Government ensures regularsupply of the yarn to the handloom sectorby enforcing the Hank Yarn PackingNotification by making it obligatory on thespinning mills to pack at least 40% of yarnpacked for civil consumption in the hankform on a quarterly basis and not lessthan 80% of the hank yarn packed shallbe of counts 80s and below percentageof the yarn produced by them in the hankform.MILL GATE PRICE SCHEME (MGPS)This scheme was introduced during 1992-93 with the objective of providing all typesof yarn to the handloom weavers'organizations at the price at which it isavailable at the Mill Gate. Under theScheme, the Government of Indiareimburses the transportation expensesinvolved in the supply of the yarn. NationalHandloom Development Corporation(NHDC), Government of India Undertaking,is the nodal agency for implementation ofthe scheme. The scheme has beencontinued during the XIth Five year Plan.The agencies, which shall be eligible toavail of the benefit of the scheme are asunder:-●●●All Handloom organizations ofNational/State/Regional/Primaryhandloom level.Handloom Development Centres.Handloom producers/exporters/manufacturers registered with HEPC/any other export promotion council141

ministry of textiles●●●●under Ministry of Textiles/Director ofIndustries/Handloom of State/U.T.All approved export houses/tradinghouses/star trading houses forproducing handloom items.Members of recognized/approvedhandloom associations.NGOs fulfilling CAPART norms.Any other agency approved by theOffice of the DevelopmentCommissioner (Handlooms), Ministryof Textiles, Government of India.Under the Mill Gate Price Scheme,following assistance is provided:-(i) Freight reimbursement fortransportation of yarn.(ii) Expenses of operating the yarn depot@ 2.5%, based on actuals.(iii) Service Charges to the NHDC.The maximum rate of freightreimbursement admissible under theMGPS to the NHDC for supply of yarn aregiven at table 10.6.The scheme also provides assistance forsupply of yarn to the weavers in theremote areas through mobile vans for 20days in a month. Reimbursement onrunning the mobile vans is @Rs.1500/-per day or as per actual, whichever isless. Supply of yarn by the NationalHandloom Development Commissioner(NHDC) under the Mill Gate Price Schemehas gone up considerably and registereda figure of 1081.2 lakh kgs. valued atRs.987.33 crore in the year 2009-10.During the year 2010-11 (upto February,2011), 978.54 lakh kgs yarn valued atRs.1038.02 crore has been supplied bythe NHDC under the scheme. The detailsof yarn supplied by the NHDC under thescheme are given at table 10.7.YearTable 10.7Yarn supplyQty Value(In lakh kg.) (Rs. in crore)2007-08 678.46 563.052008-09 855.12 793.782009-10 1081.21 987.322010-11(upto Feb,2011) 978.54 1038.02DIVERSIFIEDHANDLOOMDEVELOPMENT SCHEME (DHDS)The Central Sector Diversified HandloomDevelopment Scheme (DHDS) aims atupgrading the skills of the handloomweavers through organization ofworkshops and exhibitions, designdevelopment, documentation of traditionaldesigns and providing linkage and meetingthe market requirements. This schemeincludes components such asStrengthening of Weavers ServiceCentres/Indian Institutes of Handloomtechnology, Setting up of New WSCs/IIHTs, National Centre for Textile Design(NCTD), Research & Development (R&D)Table 10.6Maximum Freight Rate Reimbursement under the MGPSItem Plain Area Hills/remote Area NE RegionYarn Other than Silk/Jute 1.00% 1.75% 3.00%Silk Yarn 1.00% 1.25% 1.50%Jute/Jute blended yarn 7.00% 8.00% 8.50%142

annual report 2010-11and Conducting Third Census and issueof Identity cards to Handloom Weavers.Against the approved outlay of Rs.20.00crore, including Rs.5.00 crore for theNER, a sum of Rs.13.67 crore have beenincurred till 30.11.2010, during the year2010-11.COMPONENT WISE PROGRESSThird Handlooms Census and issueof Identity Cards to HandloomsWeaversThe "Third National Census of Handloomsand issue of Photo identity cards (PIC) toall the eligible weavers" has beenentrusted to the National Council of AppliedEconomic Research (NCAER), New Delhion 19.3.08 through open competitivebidding process.The Third Handloom Census Report(2009-10) was released on 23rdDecember, 2010 and Photo Identity Cardswere also issued to some handloomweavers by the Hon'ble Minister of Statefor Textiles on that day.Weavers' Service Centres (WSCs)At present, twenty-five Weavers' ServiceCentres (WSCs) are located across thecountry. They play a vital role in impartingtraining to weavers, upgrading the skilland productivity of weavers. They havedeveloped new designs and revivedtraditional ones. WSCs also renderextension services, which involve transferof design inputs, skills and technology toweavers. All the WSCs are functioningprimarily under Non-plan. During the year2009-10, a sum of Rs.2921.25 lakh(under Non-Plan) had been incurredagainst the RE Budget of Rs.2994.49.00lakh. During the current financial year2010-11, an amount of Rs.2050.00 lakhhas been incurred upto November, 2010against the budget provision of Rs.2799.67lakh.Indian Institutes of HandloomTechnology (IIHTs)The Indian Institutes of HandloomTechnology (IIHTs) provide qualified andtrained manpower to the Handloom Sectorand undertake experimental and researchprogrammes on all aspects of thehandloom industry. There are five IIHTs,one each at Varanasi, Salem, Guwahati,Jodhpur and Bargarh in the Central Sector.In order to cater the needs of the handloomsector for technically qualified manpower,provision for opening new IIHTs in theCentral Sector, wherever required, hasbeen made in the XIth Five Year Plan.Every year, 270 students are offeredthree years Diploma Course in HandloomTechnology and 28 students in the PostDiploma Course in Textiles Chemistry byall the five IIHTs, set up under CentralSector. Apart from the above, three IIHTsare also functioning at Venkatagiri (AndhraPradesh), Gadag (Karnataka) andChampa (Chhatisgarh) under the StateSector.Setting up of new IIHT at Bargarh,OrissaIn pursuance of Hon'ble Prime Minister'sannouncement in August 2006, the IndianInstitute of Handloom Technology (IIHT)at Bargarh (Orissa), has been set upw.e.f. 2.6.08 from the Panchayat CollegeCampus, Bargarh (Orissa). The foundationstone of its own building has been laidby the Union Minister for Textiles on17.11.08. Construction of own building ofIIHT is in progress. Against the total costof Rs.36.09 crore an amount of Rs.2.50crore has been released upto 2009-10.During 2010-11, an amount of Rs.5.08crore has been released for theconstruction of IIHTs Guwahati, Varanasi,Salem and Jodhpur, against the budgetprovision of Rs.5.21 crore under Non-Plan and a sum of Rs.0.92 crore was143

ministry of textilesincurred by IIHT, Bargarh against thebudget provision of Rs.1.12 crore underthe Plan Head for new building of IIHT,Bargarh.National Centre for Textile Design(NCTD)National Centre for Textile Design wasset up in January 2001 at HandloomsPavilion, Pragati Maidan, New Delhi topromote traditional and contemporarydesigns to enable the textiles industry,particularly in the Handloom Sector, to beresponsive to the rapidly changing marketdemands. The activities of the NCTD areas follows:● On-line Activities: Includedissemination of information relatedto textile designs through its websitewww.designdiary.nic.in. The siteprovides information relating tonational and international designtrends and colour forecast, designpool etc.●Off-line Activities: Include holdingof special exhibitions on sustainedbasis for increased product exposureand awareness regarding handloomsproducts among the public.The exhibitions of NCTD are held underthe title "TANTAVI", meaning "of theloom" in Sanskrit. So far, Tantaviexhibitions on four themes - "Structuredfabrics", "Patterned Fabrics" and "ColouredStructures & Patterns Fabrics" and"Brocade Textile Fabrics" have beenorganized. The fifth in the series of"Tantavi" is based on "Silken" theme.IMPLEMENTATION OF HANDLOOMS(RESERVATION OF ARTICLES FORPRODUCTION) Act, 1985 (Non-Plan)The Handlooms (Reservation of Articlesfor Production) Act, 1985 aims at protectingmillions of handloom weavers and richcultural heritage of India from theencroachment on their livelihood by thepowerlooms and mill sector. At present,(as per latest amendment vide No. S.O.2160 dated 3.9.2009) eleven categoriesof textile articles are reserved under theAct. The physical progress of powerloominspections by various implementingagencies as on 10.12.2010 are as givenat table 10.8.It is expected that the EnforcementMachineries would achieve the target of2,52,103 powerlooms by March 2011.The Government of India has providingCentral Assistance to the States/UTs forestablishment of Enforcement Machineryunder the "Non-Plan" scheme of"Implementation of the Handlooms(Reservation of Articles for Production)Act 1985". Details of the CentralAssistance released to the implementingagencies under the scheme are given attable 10.9.Table 10.8Sl. Physical progress 2007-08 2008-09 2009-10 2010-11No. (upto 10.12.20101. Targets for PowerloomInspections 2,09,290 2,15,575 2,29,040 2,52,1032. No. of PowerloomsInspected 2,49,462 2,37,111 1,97,210 1,34,6093. No. of FIRs. Lodged 12 5 12 64. Convictions 11 3 14 2144

annual report 2010-11Table 10.9(Rs.in lakhs)Sl.No. Name of State Year Wise Amount Released2008-09 2009-10 2010-11 as on10.12.20101. Andhra Pradesh 17.72 96.27 35.322. West Bengal 11.40 7.88 16.633. Gujarat 56.70 57.82 23.834. Rajasthan 28.74 26.06 -5. Madhya Pradesh 11.73 13.09 -6. Haryana - 16.10 -7 Tamil Nadu 23.71 132.78 107.038 Uttar Pradesh - - 28.989 Kerala - - 56.51Total Exp. 150.00 350.00 268.30NATIONALDEVELOPMENT(NHDC)HANDLOOMCORPORATIONNational Handloom DevelopmentCorporation (NHDC) Ltd., Lucknow wasset up in February, 1983 by theGovernment of India as an autonomousbody under the Companies Act, 1956.The Authorized Capital of NHDC Ltd., isRs.2000 lakh and its Paid up Capital isRs.1900 lac. The main objectives of theCorporation are:-●●●●carry on the business of all types ofyarn for the benefit of the handloomsector.organize supply of quality dyes andrelated materials needed by thehandloom sector.promote marketing of handloomfabrics.aid, assist and implement the projectsconnected with the production ofhandloom fabrics including taking upmodernization programme,technology for the handloom sector.ActivitiesMill Gate Price Scheme (MGPS) is animportant scheme of the Government ofIndia under which yarn is supplied to thehandloom weavers all over the country atthe Mill Gate Price by the NHDC. Thedetails of yarn supplied under the schemeduring the last three years are given attable 10.10.Table 10.10Year Quantity Value(in lac kg.) (Rs. in crore)2007-08 678.210 563.052008-09 855.12 793.782009-10 1081.21 987.322010-11(upto Feb,2011) 981.20 1043.60Under MGPS, NHDC is operating "DepotScheme" of the Government of India,wherein, 715 depots have been madeoperational till December, 2010.The corporation is also supplying qualitydyes and chemicals to the handloom145

ministry of textilessector at competitive prices under thescheme. The details of supplies madeduring last 3 years by the NHDC underthe scheme are as given table 10.11.YearTable 10.11Dyes & ChemicalsQuantity(in lac kg.)Value(Rs. in lac)2007-08 21.48 1897.782008-09 39.13 2796.562009-10 53.23 3107.042010-11(till Feb.,2011) 31.71 2270.10In order to promote marketing of handloomfabrics, the corporation organizes specialexhibitions like Silk Fabs & Wool Fabs.The number of exhibitions, participatingagencies and total sales generated in theexhibitions during the last 3 years aregiven at table 10.12.Table 10.12Year No.of No. of Total saleevents participating (Rs. inagencies crore)2007-08 9 665 25.232008-09 12 994 34.432009-10 15 1123 44.89Besides corporation has set up 8marketing complexes at Jaipur, Kolkata,Ahmedabad, Hyderabad, Kanpur, Indore,Navi Mumbai and New Delhi, where thehandloom agencies from different parts ofthe country display and sell their handloomproducts to the discerned customers.Corporation also undertakes the followingprogrammes to disseminate the latesttechnologies in the handloom sector andalso about the schemes beingimplemented by the Government of Indiafor the development of the handloomsector and for the welfare of the weavers:-a) Appropriate Technology Exhibitions(ATEs)b) Quality Dyeing Training Programme.c) Sensitization programme on schemeof Office of DC (Handlooms).The details like turnover, profit dividendissued rating & MOUof the Corporationduring the last three years are given attable 10.13.Table 10.13Turnover, Profit and Dividend: NationalHandloom Development Corporation(Rs. in lac)Year Turnover Net Dividend MOUProfitrating2007-08 58867.17 104.52 22.00 Very Good2008-09 82948.34 393.84 80.00 Excellent2009-10 102078.03 303.51 61.00 ExcellentAssociation of Corporations and ApexSocieties (ACASH)The Association of Corporation and ApexSocieties of Handlooms (ACASH) is aNational Level Apex Handloom Society,establishment in 1984 and was registeredwith the Registrar of Cooperative Societies,Delhi under Society Act XXI 1860. Themembership of the Society is for (a) Statelevel Apex Cooperative Handloom Societies(b) State Handloom DevelopmentCorporation and (c) National or inter StateHandloom Apex Societeis and Corporationsto coordinate and promote marketing inthe Handloom sector. The ACASH isfunctioning as a nodal agency for supplyof handloom goods to be purchased by theCentral Government Departments/Agencies/Public Sector Undertakings underSingle Tender System (STS). The Nationaland State level Handloom Corporationsand Apex Societies whose names werenotified by the Office of the DevelopmentCommissioner for Handlooms, Ministry of146

annual report 2010-11Textiles for production and supply ofhandloom goods through ACASH, are themembers of ACASH. During the year 2009-10, ACASH had received orders worthRs.3,626.73 lakh and executed ordersworth Rs.3,200.44 lakh. During the year,2010-11(upto Nov. 2010), ACASH hadreceived orders worth Rs.4,856.87 Lakhsand executed orders worth Rs.2,678.89Lakhs under STS.HANDLOOM EXPOS/EXHIBITIONSDuring the year, 2010-11, ACASH hadorganized 8 exhibitions/expos, as at table10.14. During the Handloom Week 2010,ACASH proposes to organize 6 Expos/Exhibitions as given at table 10.15. Inaddition to the above, 7 exhibitions/exposelaborated at table 10.16 are proposed tobe conducted during the year, 2010-11.Table 10.14(Exhibitions/expos organized during the year 2010-11 till Nov'10)S. Name of the Event Venue DurationNo.1 Silk & Cotton Srinagar, J&K 17.06.2010 to30.06.20102 Silk & Cotton Expo Palampur, Himachal Pradesh 25.06.2010 to08.07.20103 Cottons of India August Kranti Bhawan, 22.07.2010 toBhikaji Cama Place, New Delhi 04.08.20104 Paridhaan Handloom Pavilion, Pragati Maidan, 28.07.2010 toNew Delhi 10.08.20105 Home Furnishings August Kranti Bhawan, 14.08.2010 toBhikaji Cama Place, New Delhi 27.08.20106 Sarees of India August Kranti Bhawan, 01.09.2010 toBhikaji Cama Place, New Delhi 14.09.20107 National Handloom Expo Noida Stadium, Noida 20.10.2010 to02.11.20108 Handlooms'2010 Handloom Pavilion, 14.11.2010 toPragati Maidan, New Delhi 27.11.2010Table 10.15Exhibition/Expo during Handloom WeekS. Name of the Event Venue DurationNo.1 Silks & Cotton Expo Mumbai, Maharashtra 14.12.2010 to27.12.20102 National Handloom Expo Dilli Haat, INA, New Delhi 21.12.2010 to03.01.20113 Silks & Cotton Expo Kolkatta, West Bengal 21.12.2010 to02.01.20114 National Handloom Expo Chennai, Tamil Nadu 05.12.2010 to20.12.20105 Silk & Cottons Expo Agartala, Tripura 17.12.2010 to30.12.20106 Silk & Cotton Expo Jaipur, Rajasthan 16.12.2010 to29.12.2010147

ministry of textilesTable 10.16Exhibition/expo to be organised during 2010-11S. Name of the Event Venue DurationNo.1 Shawl Show Handloom Pavilion, 23.12.2010 toPragati Maidan, New Delhi 05.01.20112 Sarees of India August Kranti Bhawan, 10.01.2011 toBhikaji Cama Place, New Delhi 23.01.20113 Silks of India Handloom Pavilion, 14.01.2011 toPragati Maidan, New Delhi 27.01.20114 Home Furnishings Handloom Pavilion, 04.02.2011 toPragati Maidan, New Delhi 17.02.20115 Cottons of India Handloom Pavilion, 28.02.2011 toPragati Maidan, New Delhi 13.03.20116 National Handloom Expo Chandigarh, U.T 16.01.2011 to31.01.20117 Silk & Cotton Expo Rourkela, Orissa 21.01.2011 to03.02.2011All India Handloom Fabrics MarketingCooperative Society Ltd. (AIHFMCS)The All India Handloom Fabrics MarketingCooperative Society Ltd., New Delhi wasestablished in 1955 with the twin objectivesof developing inter-State and Internationaltrade for handloom fabrics produced by thehandloom weavers of the country. TheSociety is governed under the Multi-StateCo-operative Societies Act, and comesunder the jurisdiction of Central Registrar ofCooperative Societies, New Delhi. Themembership of Fabrics Society consists ofRegistered State/Regional Level ApexHandloom Weavers Cooperative Societies('A' Class), Primary/ Districts LevelHandloom Weaver's Cooperative Societies('B' Class) and State Governments,Government owned/ controlled Corporationengaged in production and sale of handloomproducts and such class or classes orassociation of persons as permitted byCentral Registrar under the provision ofMulti Cooperative Societies Act ('C' Class).During the year 2010-11 (April to November2010), the Society had a total of 1112members comprising 23 ('A' Class), 1056('B" Class) and 33 ('C' Class) members.The Society had a paid-up share capital ofRs.7,64,25,000/- consisting of 141282shares as on 30th November 2010. Themain objective of the Society is to organizeand develop markets for handloom goodsboth within the country and abroad. Toachieve this objective, the Society has setup a chain of retail showrooms known as"Handloom House" at various places in thecountry. During the year 2010-11 (April toNovember 2010), there were 24 suchHandloom Houses in Ahmedabad (2),Chandigarh, Chennai (3), Coimbatore,Ghazipur, Gorakhpur, Gurgaon,Hyderabad, Kolkata (3), Lucknow, Salem,Madurai, New Delhi, Ranchi, Surat,Thiruvananthapuram, Thrissur, Varanasi,& Visakhapatnam. The Society has itsExport Houses at Chennai, Noida and Karur.The Society has also got its branches atSingapore and Mauritius giving an impetusto marketing of Indian Handlooms in theforeign markets. During the year 2010-11(April to November 2010), the Society'ssales turn-over was Rs.2375.63 lakh,including domestic sale of Rs.1966.11 lakh.The Society's exports during the year 2010-148

annual report 2010-1111 (April to November 2010) were of theorder of Rs.409.52 lakh. The Society hasbeen working in profit consecutively for thelast 56 Years. During the year 2010-11, anamount of Rs.255.19 lakh was released bythe Government of India under MarketingIncentive Component of the IntegratedHandloom Development Scheme.NATIONAL HANDICRAFTS &HANDLOOMS MUSUM (NHHM)The National Handicrafts and HandloomsMuseum also popularly known as CraftsMuseum is located at Pragati Maidan, NewDelhi. It is a sub-ordinate office under theDevelopment Commissioner forHandlooms, Ministry of Textiles. Its mainobjectives are to increase public awarenessabout the India's ancient traditions ofhandicrafts and handlooms, provide aninteractive forum for the crafts persons,designers, exporters, scholars and publicand help the crafts persons to find aplatform for marketing without middlemenand to serve as a resource center for theIndian handicraft and handloom traditions.Collection, conservation and preservationof crafts specimen, revival, reproductionand development of Art and Craft are thebasic activities of the Museum.Museum CollectionThe Museum has a collection of over32,000 artifacts consisting of Metal Icon,Lamps, Incense Burners, Ritualaccessories, items of everyday life, Woodcarvings, Painted wood and Paper Mache,Dolls, Toys, Puppets, Masks, Folk andtribal paintings and sculptures, Terracotta,Folk & Tribal jewellery and an entiresection of traditional Indian textiles. Theyare exhibited in Folk and tribal Art Gallery,Temple gallery, Courtly Crafts Gallery andTextile Gallery and the rest are kept inMuseum Collection store.Visits by Eminent Persons / DelegationsDuring the current year i.e. 2010, anumber of distinguished persons visitedthe National Handicrafts and HandloomsMuseum, United States first lady Mrs.Michelle Obama visited the Craft Museumon 8th November, 2010. The visit was thehighlight of her recent trip in India whichincluded her interaction with children andshopping at the Crafts Museum. InNovember 2010 His Serene Highness,the Prince of Lichtenstein and her RoyalHighness, the Princess of Lichtensteinvisited the Museum and also toured theCrafts Demonstrations Programme.HANDLOOM EXPORT PROMOTIONCOUNCIL (HEPC)The Handloom Export Promotion Councilwas set up in the year 1965 with Primeobjective of promoting exports of Handwovenproducts of cotton as well as silkand readymade garments. With theincrease in the quantum of exports, theCouncil at present caters only to exportersof cotton handloom fabrics and made-ups,lungies and Real Madras Handkerchiefsand other items made from cottonhandloom fabrics. The Council has itshead office at Chennai and its RegionalOffice at New Delhi. A Committee consistingof elected representatives from the tradeand Government governs the Council. TheCouncil, which started in 1965 with only 96members, has grown over the years tocover the entire country with a membershipof about 1555 members.In the absence of ITC (HS) codes for thehandloom products, the export data onhandlooms was not available from April2003 onwards. The matter was taken upwith the Ministry of Finance and after longcorrespondence and meetings with theofficials of the Ministry of Finance, 31 ITC(HS) codes have been notified by theMinistry of Finance on 24th September2008. Based on the notified ITC (HS)codes, the Directorate General ofCommercial Intelligence and Statistics,Kolkata have captured the followingproduct-wise export data on handloomsfor the period April 09 to March 2010,which is given at table 10.17.149

ministry of textilesTable 10.17Item Description Quantity Value (INR)Toilet Linen & Kitchen Linen, Of Terry Towelling OrSimilar Terry Fabrics, Of Cotton, Handloom 24797392 3198838744Table Cloth And Table Covers Of Handloom 12010989 1912742596Cushion Covers Of Handloom 14848035 1541993403Other Bed Linen, Printed: Of Cotton, Handloom 2908932 1058574434Pillow Cases And Pillow Slips Of Handloom 5572529 946856463Other Furnishing Acricles Of Handloom 8771244 797252280Napkins Of Handloom 15274463 653694139Mats And Mattings Including Bath Mats,Where Cotton Predominates By Weight,Of Handloom, Cotton Rugs Of Handloom 2705069 458559743Other Bed Linen, Table Lenen, Toilet Linen,Kitchen Linen: Of Cotton, Handloom 2607094 370886285Other Fabrics, Handloom 4725364 338944459Bed Sheets And Bed Covers Of Cotton, Handloom 1037339 329103547Other Table Linen: Of Cotton, Handloom 1935328 291453314Cotton Durries Of Handloom (Including Chindi Durries,Cotton Chenille Duries, Rag Rug DurriePrinted Durries, Druggets) 501100 120086249Other Woven Fabrics Of Handloom 204746 113188081Other Furnishing Articles Of Silk: Handloom 229344 94512957Real Madras Handkerchiefs Of Handloom 663268 86500441Dhoti,Handloom 556438 48090993Floor Cloth & The Like Of Cotton, Handloom 196249 38453562Sarees Of Handloom 345732 36647819Other Furnishing Articles Of Wool: Handloom 64059 32382599Counterpanes Of Handloom 415607 19102749Lungis Of Handloom 126032 14595996Scarves Of Silk, Handloom 63158 8414858Saree,Handloom 92628 8189550Sheeting (Takia, Leopard Cloth & OthrThan Furnishing ), Handloom 51845 3626219Carpets, Rugs And Mats Of Handloom 5433 2796048Terry Towelling & Smlr Terry Fbrcs, Handloom 6000 1321083Casement, Handloom 11577 967844Gloves, Mitters And Mitts Of Handloom 3334 208066Othr Wovn Fbrcs Of Comd Wool OrComd Fine Anml Hair Of Handloom 750 75000100731078 12528059521150

annual report 2010-11The following are the activities of theCouncil:1. Dissemination of trade informationand intelligence to the memberexporters.2. Publicity abroad for Indian Handloomproducts.3. Facilitating product diversification andadaptation to meet modern marketrequirements.4. Providing impetus to modernizationof handlooms for the export market.5. Provision of design inputs to promoteexports of handloom products.6. Organizing business mission/buyerseller meet and participation in tradefairs abroad.7. Consultancy and guidance servicesfor handloom exporters.8. Liaison with the Government of Indiaon all procedural and policy mattersrelevant to the handloom export trade.9. Dealing with trade complaintspertaining to handloom exports.10. Liaison with import promotion andcommercial agencies abroad for thebenefit of handloom exporters.Setting up of Design StudioIn order to cover the following activities andservices, Design Studios at Kannur andHyderabad have already beencommissioned. Proposals for setting up ofmore design studios at Bhubaneshwar(Orissa), Khekhra and Varanasi (UttarPradesh) and Panipat (Haryana) are underconsideration in the Department jofCommerce under Market Access InitiativeScheme:-●●Create new designs based on client'sneedsAdapting and modifying designs fromsketches or fabrics submitted byclient, to meet a price or otherconsideration.●●●●To analyse the latest trendsTo forecast the change in motif,colour etc.Create new designs based on theanalysis and forecasting for themanufacturersTo provide latest in technology byway of related softwareExport Promotion ActivitiesDuring the year 2010-11, the HEPC hasplanned participation in followingInternational fairs for boosting the exportof handloom products. The details aregiven at table 10.18.Table 10.18List of fairs for participation by HEPCduring 2010-11S. Name of the event Month &No.Year1 21st India Home July 10furnishing Fair, Japan2 Pret-a-Porter Fair, September 10Paris, France3 Macef, Milano, Italy September 104 Decosit, Brussels, September 10Belgium5 Ambiente, Ukraine October 106 Hong Kong Mega October 10Show7 Index, Dubai November 108 AF-L Artigiano in December 10Fiera Milano - 15thInternational CraftsSelling Exhibition,Milan, Italy9 Pret-a-Porter Fair, January 11Paris, France10 Macef, Milano, Italy January 1111 Ambiente, Germany February 1112 Expocomer, Panama March 1113 IHF Fair, Chicago, March 11USA151

ministry of textiles14 Heimtextil India, October 10Mumbai15 Indian Handicrafts & October 10Gift Fair (Autumn),Greater Noida16 Indian Handicrafts & Feb/March 11Gift Fair (Spring),Greater Noida17 Tex-Trends India 2011, Feb/March 11Pragati Maidan,New DelhiWorkshops/Seminars organized byHEPCIn order to create awareness among theweaving/exporting community of handloomproducts about various aspects involvedin export trade, the Council has beensanctioned Workshops/Seminars givenbelow :1. Chirala (AP)2. Balarampuram (Kerala)3. Bargarh (Orissa)4. Bhagalpur (Bihar)5. Karur (Tamil Nadu)6. Panipat (Haryana)7. Varanasi (UP)8. Shantipur (West Bengal)9. Shillong (Meghalaya)10. Imphal (Manipuram)11. Belgaun (Karnataka)12. Jaipur (Rajasthan)The following are the other promotionalactivities undertaken by HEPC:1. The Council publishes a monthlyNewsletter titled "Handloom Export",which contains useful informationconnected with trade and policymatters, technical inputs, marketreports, fashion trends, tradeenquiries, statistical information etc.2. The Council has brought out variousbooklets in connection with Buyer-Seller Meets, Trade Fairs Abroad forcirculation during the fair and also foruse as publicity material.3. The Council been rendering its designservices through its CAD departmentfor the members as per theirrequirement. Besides, Council alsoprovides information on Colour trendhelping the members to develop theirproducts as per the colour trendprevailing in the market.152

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annual report 2010-11CHAPTER XIHANDICRAFTSThe Union Minister for Textiles, Thirui Dayanidhi Maran presenting the Shilp Guru Award 2007to Smt. Maha Sundari Devi from Bihar for Madhubani Painting, at the presentation ceremony ofthe National Awards 2007-2008 for Master Crafts persons & Weavers and Shilp Guru Awards 2007& 2008 for Master Crafts persons, in New Delhi on November 24, 2010. The Minister of State forTextiles, Smt. Panabaka Lakshmi and the Secretary (Textiles) Smt. Rita Menon are also seen.The Handicrafts Sector plays asignificant & important role in thecountry's economy. It providesemployment to a vast segment of craftpersons in rural & semi urban areas andgenerates substantial foreign exchangefor the country, while preserving its culturalheritage. Handicrafts have great potential,as they hold the key for sustaining notonly the existing set of millions of artisansspread over length and breadth of thecountry, but also for the increasingly largenumber of new entrants in the craftsactivity. Presently, handicrafts contributesubstantially to employment generationand exports. The Handicraft sector has,however, suffered due to its beingunorganized, with the additional constraintsof lack of education, low capital, poorexposure to new technologies, absenceof market intelligence, and a poorinstitutional framework. In spite of these155

ministry of textilesconstraints, sector has witnessed asignificant growth of 3% annually, andefforts are being augmented during the11th Five Year plan on the core issues forthe development of the sector.●Providing Infrastructural support forproduction & Exports● Improve quality & productdiversification with more awarenessfor both stakeholders & consumer.● A greater role for NGO asimplementing partners andparticipation of private resources -both human and financial.In view of the 3% growth annually inHandicrafts sector, it is presumed that thetotal employment in the sector as at theend of 10th plan is 67.70 lakhs, which atthe beginning of the 10th plan was 60.16lakhs, showing an annual growth rate ofabout 3%, on the basis of this growth inthe sector it is expected this employmentto reach 80 lakhs by the end of 11th Plan.The plan expenditure during the periodalso witnessed a steady growth increasingfrom Rs.71.65 crores in 2002-03 toRs.286.00 crores in 2010-11. Theproduction during the period 2002-03 hasincreased from Rs.19,564.52 crores toRs.20221.58 crores during the year 2009-10. The exports during the periodincreased from Rs.10933.67 crores in theyear 2002-03 to Rs.11224.27 crores atthe end of the year 2009 -10 registeringa cumulative increased 2.65%, The budgetoutlay for the year 2011-12 has beenproposed for Rs. 316.27 crores.Handicrafts activity being a State subject,its development and promotion are theprimary responsibility of every StateGovernment. However, the CentralGovernment is supplementing their effortsby implementing various developmentalschemes.SCHEMES FOR DEVELOPMENT OFHANDICRAFTSDuring the XIth Plan the Government ofIndia has implemented six genericschemes in the central sector for holisticgrowth and development of handicraftssector in the country. The schemesrecommended for implementation during11th five year plan are as under :Baba Saheb Ambedkar Hastshilp VikasYojanaThis scheme aims to promote Indianhandicrafts by developing artisans' clustersinto professionally managed and selfreliantcommunity enterprise on theprinciples of effective member participationand mutual cooperation. The thrust of thescheme is on a project based, needbased integrated approach for sustainabledevelopment of handicrafts throughparticipation of craftspersons. This wouldlead to their empowerment. Thecomponents of the scheme are as under:A. Social interventionsi. Diagnostic Survey and formulation ofProject Planii. Community empowerment formobilization of artisans into Self HelpGroupsiii. Issuance of Identity cards to theartisans(Departmental activity)B. Technological interventionsi. Development and supply of improvedmodern toolsii. Design and Technical DevelopmentWorkshopsiii. Integrated Design and TechnicalDevelopment workshops.iv. Training of artisansv. Organizing Seminars & Symposiums.vi.Technological status and need basedstudy and research provision.156

annual report 2010-11C. Marketing interventionsi. Organizing Exhibitionsii. Publicity through printing andelectronic mode and brand buildingcampaigniii. Setting up of Handicrafts emporia inown/rented/outright purchase ofbuilding and renovationiv. Market assessment, productassessment study and Study cumexposure tours for artisans and otherstake holders tourv. Establishment of warehousing cumCommon work shedvi. Entrepreneurship DevelopmentProgramme.D. Financial interventionsi. Margin Money supportii. Wage compensation to clustermanageriii. Service charges for ImplementingAgenciesiv. Engagement of experts/ consultants/institutions, etc., for providing needbased assistance including guidingand monitoring.v. Credit Guarantee (Departmentalactivity)E. Cluster specific infrastructurerelated interventionsi. Establishment of Resource Centrefor major craftsii. Establishment of E-kiosksiii. Creation of Raw Material Banksiv. Setting up of Common Facility Centre.v. Technological assistance by settingup of Facility Centres by Exporters/Entrepreneurs, etc.During the year 2010-11 till December -2010, an amount of Rs.37.70 crores hasbeen sanctioned for various interventionsto implement 57 Nos. of new projectscovering about 23000 artisans consistingof 100 Self Help Groups, and during theyear 2010-11 for the period ended up toDecember 2010, 98,600 artisans havebeen covered under Skill DevelopmentComponents. During 2009-10, 27,644number of artisans credit cards havebeen issued representing sanction ofCredit worth Rs. 92.15 crores. During theperiod 2010-11, (upto October 2010),4144 ACC issued representing cumulativecredit sanction of Rs. 150.72 crores.DESIGN & TECHNICAL UP-GRADATIONThe scheme aims to upgrade artisan'sskills through development of innovativedesigns and prototype products foroverseas market, revival of languishingcrafts and preservation of heritage etc.The scheme has the following components:I. Skill up-gradationa. Departmental activities of RegionalDesign & Tec. Dev. Centres.b. Assistance for training the trainers.c. Assistance to Shilp Gurus.(heritagemasters)II. Assistance for Design andTechnology Upgradationa) Design & Technology DevelopmentWorkshop.b) Integrated Design and TechnologyDevelopment Project.III.IV.Documentation Preservation andrevival of rare and LanguishingcraftsNational Award for outstandingcontribution in Handicrafts SectorV. Financial Assistance forInstitutions to be set up underState Initiativesa) State initiative Design Centres.b) Handicrafts Museum.157

ministry of textilesVI.Setting up of Design BankVII. Financial Assistance to CentralGovt. sponsored InstitutionsVIII. Product Development programmefor exportersDuring the year 2010-11 Rs. 16.73 croreshave been allocated under Design &Technical Up-gradation Scheme includingNER. Against an allocation of Rs. 16.73crores, an amount of Rs. 12.36 croreshave been sanctioned till 31st December,2010 for the activities viz 379 DesignWorkshops (Fresh/reimbursement), 43Integrated Projects (Fresh/reimbursement).02 State Initiative Design Centre (2ndinstallment), 10 Shilp gurus (Fresh/reimbursement), 01 Design Bank (2ndInstallment), departmental activitiesundertaken by RD&TDCs and publicity.MARKETING SUPPORT AND SERVICESSCHEMESThe Marketing Support Scheme and theExport Promotion Scheme runningseparately in the Tenth Plan have beenclubbed in Eleventh Plan and the Clubbednew Scheme titled as "Marketing Support& Services Scheme". The scheme hasthree broad following components :i) Domestic Marketing●●Marketing Events covering CraftsBazaar/Gandhi Shilp Bazar;Exhibitions; Sourcing Shows & Travel& transportation assistance.Marketing Infrastructure covering;Urban Haat; Emporia; Marketing Hubin Metros; Sourcing Hub in majorclusters & Ware-housing facilities● Marketing Services coveringWorkshops/Seminars & MarketingStudies within the country.Note: The Gandhi Shilp Bazar is a novelconcept whereby it is ensured that atleast one Bazar is always on every dayin the year somewhere in the country.The calendar of these bazaars is finalizedand circulated at the beginning of the yearso that the artisans desirous ofparticipation get sufficient advance noticeto plan for their production and participationin the event.ii)●●iii)●●●●International MarketingMarketing Events covering CulturalExchange Programmes; Fairs &Exhibitions; Thematic Shows;Reverse Buyer Seller Meet &Participation of Entrepreneurs/SHGsFederations/National Awardees.Social and Welfare Measurescovering Initiatives to counterproblems arising out of National/International laws.PublicityPublicity through print and electronicmedia.Publicity through maps, folders,brochures catalogues and pamphlets,etc.Publicity through Website, CD ROMsetc.To create Brand image for IndianHandicrafts.During the year 2010-11 Rs. 75.00 croreshave been allocated under Plan schemeof Marketing & Support Services Schemeincluding NER. Against an allocation ofRs.75.00 crores, an amount of Rs.36.87crores have been sanctioned till 31stDecember, 2010 for the activities likeDomestic Marketing: Sanctioned - 311events, 73 events organized like GandhiShilp Bazaar, Craft Bazaars, Exhibitions,sourcing shows, Marketing hub in Metros,renovation of emporium, State/Local levelMarketing workshops and AwarenessCamp in Schools and Hiring of Stalls byvarious regions. Further 62 Internationalevents sanctioned, 46 International eventsorganized.158

annual report 2010-11HUMAN RESOURCE DEVELOPMENTSCHEMEThe Human Resource DevelopmentScheme has been formulated to providequalified and trained workforce forestablishing a strong production basecoupled with improvement in quality anduse of appropriate techniques, processesand innovative design to meet presentday market requirement.(i) Training Through EstablishedInstitutions.(ii) Training in Innovative Designs forthe persons involved in Patternmaking/Talim writing/Plaster/RubberMoulds/Block making etc.(iii) Training of Artisans/SHG leaders/NGO in capacity building.(iv) Conducting Seminars/WorkshopsDuring the year 2010-11 Rs. 19.34 croreshave been allocated under Plan schemeof Human Resource Development Schemeincluding NER. Against an allocation ofRs.19.34 crores, an amount of Rs. 12.82crores have been sanctioned till 31stDecember, 2010 for the activities like 5Institutional Training programmes and 191Programmes under Guru ShishyaParampara, 15 seminars, 58 PatternMaking, 303 Capacity Building.RESEARCH & DEVELOPMENTResearch and Development scheme wasintroduced to conduct surveys and studiesof important crafts and make in-depthanalysis of specific aspects and problemsof Handicrafts in order to generate usefulinputs to aid policy Planning and fine tunethe ongoing initiatives; and to haveindependent evaluation of the schemesimplemented by this office. The schemehas been continued for implementationduring the Eleventh five year plan.Following activities are being undertaken:A. Survey & StudiesB. Conducting all India Census ofhandicraft artisans @ 20% districtsof the country every year.C. Registration of Crafts underGeographical Indication Act &Financial support for certification ofraw materials and products.D. Setting up of new labs/strengtheningof existing labs for standardization/certification of raw materials.E. Assisting handicrafts exporters inadoption of GSI global identificationstandards and for bar coding,including handicrafts mark for genericproducts.During the year 2010-11 Rs. 12.00 croreshave been allocated under Plan scheme ofResearch & Development Schemeincluding NER. Against an allocation ofRs.12.00 crores, an amount of Rs. 4.77crores have been sanctioned till 31stDecember, 2010 for the activities like 12studies, 204 Seminar-cum-workshops, 5labs located at MHSC, Moradabad, Sitapur,Jodhpur, Saharanpur and Agartala. Censusof Handicrafts Artisans in the whole countryis under operation. It is hoped that Censuswould be completed well before conclusionthe 11th Plan.HANDICRAFTSARTISANSCOMPREHENSIVE WELFARE SCHEMEThe scheme has been included in the11th Five Year Plan as one of the majorschemes with the following two maincomponents, aimed at Insurance Coverand Health Care of Handicrafts Artisanand his family:Rajiv Gandhi Shilpi Swasthya BimaYojanaRajiv Gandhi Shilpi Swasthya Bima Yojanaaims at financially enabling the artisanscommunity to access to the best ofhealthcare facilities in the country. Thisscheme covers not only the artisans but159

ministry of textilesalso any three members out of spouse,dependent parents and children.Bima Yojana for Handicrafts ArtisansThe objective of "Bima Yojana ForHandicrafts Artisans" is to provide lifeinsurance protection to the HandicraftsArtisans, whether male or female, betweenthe age group of 18-60 years.During the year 2010-11 Rs. 84.11 croreshave been allocated under Plan schemeof Handicrafts Artisans ComprehensiveWelfare Scheme including NER. Amountcould not be released due to Nonfinalization of implementing agency.Process for short listing of implementingagency for the same is under finalization.EXPORT OF HANDICRAFTS●A target of Rs. 12650 crores hasbeen fixed for export of handicraftsduring the year i.e. 2010-11. Theexport during the year 2010-11 (UptoJanuary 2011) both in Handicraftsand handmade carpet & other floorcoverings are Rs. 9592.73 crores.Details of export of both Handicrafts &Carpet may be seen on table 11.1.Activities undertaken during 2010-11by Export Promotion Council forHandicraftsExport Promotion Council for Handicrafts(EPCH) has been established under theEXIM Policy of Govt. of India in 1986-87 and is a non-profit Organization. TheOrganization works under the aegis ofO/o Development Commissioner(Handicrafts), Ministry of Textiles, Govt.of India and governed by Policies ofMinistry of Textiles. It is an apex bodyof the Government for promotion ofexports of Handicrafts from country andprojected India's image abroad as areliable supplier of high quality ofhandicraft goods & services and ensuredvarious measures keeping in view ofobservance of international standards andspecifications.The Council has created necessaryinfrastructure as well as marketing andinformation facilities, which are availedboth by the member exporters andimporters.MAJOR ACTIVITIES OF THE COUNCILThe main activities of EPCH are narratedas follows:● Providing commercially usefulinformation and assistance tomembers in developing andincreasing exports.●Offering professional advice andservices to members in areas oftechnology upgradation, quality anddesign improvement, standards andspecifications, product development,innovation etc.Table 11.1Export of Handicrafts(Rs. in Crores)Item 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11(April-Dec.)A. Carpet & otherfloor covering 2779.79 2583.62 3082.06 3674.86 3524.73 2708.73 2505.33 2808.25B. Other Handicrafts 13555.48 16984.14 16185.59 17288.14 14012.05 8183.12 8718.94 7284.48Grand Total (A+B) 16335.27 18567.76 19267.65 20963.00 17536.78 10891.85 11224.27 9592.73160

annual report 2010-11●Organising visits of delegation of itsmembers abroad to explore overseasmarket opportunities.● Participating in specializedInternational Trade Fairs ofhandicrafts & gifts.●Organizing Indian Handicrafts andGifts Fair at New Delhi.● Interaction between exportingcommunity and Govt. both at theCentral and State level andrepresents in almost all thecommittees / panels of Central andState.●●To create an environment ofawareness through Workshops on"Export Marketing, Procedures andDocumentation", Packaging, DesignDevelopment, Buyer Seller Meet,Open House etc. interaction withCentral and State Govt. and variousother similar programmes.The activities of the EPCH, notificationof Govt. orders, information on TradeFairs and other relevant informationis disseminated by quarterly journalCRAFTCIL.MAJOR ACTIVITIES UNDER TAKEN BYTHE COUNCIL DURING 2010-11Participations in Exhibitions AbroadDuring the year 2010-11 (upto Nov. 2010),Council have participated in B2Bexhibitions/Fairs and Retail Shows as wellas organized Festival of India, BuyerSeller Meet abroad. During the period, theparticipations were made in 21 exhibitionsin 12 countries namely, Hong Kong, China,Turkey, USA, Brazil, Kazakhstan,Germany, UK, Hungary, Spain, Greece,Argentina & Chile. The followingexhibitions/Festival of India/Buyer SellerMeet in the said countries wereparticipated along with the exportersmembers under MDA for display ofproducts as well as Master Craftspersonssponsored by O/o DC(Handicrafts) for livedemonstration of Indian traditional crafts:●●●●●Hong Kong Houseware Fair, HongKong, 20th - 23rd April, 2010Hong Kong Textiles Show, HongKong, 20th - 23rd April, 2010Hong Kong Gifts & Premium Show,Hong Kong, 27th - 30th April 2010World Expo 2010, Shanghai, China,1st May - 31st October 2010EVTEK-Istanbul Home FurnishingsExhibition, Istanbul, Turkey, 19th -23rd May 2010● Asia's Fashion Jewellery &Accessories Show, Hong Kong, 24th- 27th June 2010●●●●●Summer Sourcing Show, Hong Kong,5th - 8th July 2010Hong Kong Fashion Week, HongKong, 5th - 8th July 2010California Gifts Show, Atlanta, USA,16th - 19th July 2010House & Gifts Fair, Sao Paulo, SouthAmerica, 14th - 17th August 2010New York International Gifts Show,New York, USA, 14th - 19th Aug.2010● Great India Bazaar, Almaty,Kazakhstan, 14th - 22nd August 2010●Tendence, Frankfurt, Germany, 27th- 31st August 2010● International Autumn Fair,Birmingham, UK 5th - 8th September2010●●●Budapest International Trade Fair,Budapest Hungary, 8th - 12th Sept.2010Intergift, Spain, 9th - 12th September2010Thessoliniki International Fair,Greece, 11th - 19th September 2010161

ministry of textiles● Asia's Fashion Jewellery &Accessories Show, Hong Kong, 14th- 17th September 2010●Asian Gifts Premium & HouseholdProducts Show, Hong Kong, 20th -23rd October 2010● Import shop, Berlin, Germany, 10th -14th November 2010●Heim + Handwerk, Munich, Germany,24th - 28th November 20103rd Folk Craft Festival At ArgentinaIn addition to above, 3rd Festival of India,Buenos Aires, Argentina from 4-14November, 2010 along with 6 MasterCraftspersons for live demonstration,thematic display under the Export PromotionScheme of Office of DC(Handicrafts) andBuyers Seller Meet was organized whichwas participated by 50 member exporters.The event was organized in cooperationand association of the Indian Mission,Argentina. The Festival was inauguratedby Secretary (Textiles), DevelopmentCommissioner (Handicrafts), ExecutiveDirector- EPCH, H.E. The Ambassador ofIndia in Argentina and Government Officialsof Argentina Government, Media andprominent traders were present.Buyer Seller Meet at ChileA Buyer Seller Meet at Santiago, Chile on8-9 November, 2010 was organized andwas participated by 20 exportingcompanies registered with Council. TheBSM was organized in coordination withthe Indian Mission in Chile. The eventwas inaugurated by the Secretary(Textiles)in the presence of H.E. the Ambassadorof India in Chile, DC (Handicrafts),Executive Director - EPCH and otherprominent members from Chilean Trade.Seminar/Workshops/SymposiumsDuring 2010-11 (Upto November, 2010),14 workshops/Seminars on ExportMarketing Procedures, Packaging,Challenges and opportunities,Certifications and compliances wereorganized in Andhra Pradesh, UP,Rajasthan, Kerala, Kolkata. The aboveprogrammes organized at craftsconcentration centers in the above States.During the period of December-March2010-11, 17 more workshops/seminarsare proposed to be conducted in all theregions of the country with the view toacquaint the entrepreneurs/exporters/craftspersons with the market intelligence,export marketing, procedures, packagingas well as on compliances in order tocreate awareness among the personsinvolved with the handicrafts sector topromote exports from the country.Indian Handicrafts and Gifts Fair30th edition of Indian Handicrafts & GiftsFair (Autumn) at Greater Noida wasorganized from 17-20 October, 2009 andwas participated by over 2200 exportersmembers. The fair was visited by over500 foreign buyers/agents and a businessof Rs. 900 crores was held.ACHIEVEMENTS MADE FORHANDICRAFTS SECTORIn order to provide information as well asguidance of experts, Council organizedvarious seminars/symposiums to transmitthe information concerning to the EXIMPolicy export procedures, marketintelligence, compliances in internationalmarket with the view to enhance theknowledge concerning to the trade andexplore exports from the handicrafts sector.Council by making repeat participationand organizing repeat Festival of Indiaconcerning to the crafts and buyers sellermeets in LAC created awareness andmarketing opportunities of Indianhandicrafts to increase exports ofhandicrafts. The activities undertaken bothin domestic as well as international marketenable us to promote exports and increasein percentage has been witnessed duringthe year 2010-11.162

annual report 2010-11The product specific shows conducted inthe country have provided opportunity topromote specific products of handicraftsfrom the clusters of the products.In the total 22 participations made duringApril - November, 2010-11, about 550exporters got the opportunity ofparticipation and exposure of Indianhandicrafts. The export orders worth ofRs. 300 lakhs was obtained besidesenquires. Besides, exporters, about 50Master Craftspersons for livedemonstration of crafts in the above 22participations and entrepreneurs havebeen deputed on sponsorship of Office ofDC (Handicrafts). The participations ofthe Master Craftspersons andentrepreneurs have enabled them to gainentrepreneurship as they interacted directlywith the visiting buyers in the exhibitionswhich assisted them in understanding therequirements, designs adaptability etc. topromote exports as well as to make thementrepreneur.To summarize the achievements, the sameare as follows:●●●All handicrafts which were entitled to5% duty credit scrip on exports underFocus Product Scheme has beenmade entitled to additional benefit ofbonus over and above the exitingbenefit of 5%Barmer (Rajasthan) has been addedin the list of Towns of ExportExcellence (TEE) in addition toalready three handicraft clustersnamely, Jaipur, Srinagar andAnantnag.To uplift and upgrade Moradabad(UP) Cluster, the Resource Centre toprovide business resource facilitiesfor artisans/entrepreneurs/exportersto develop the first State of Artcentralize facility an dissemination ofinformation on market has beeninitiated to set up.●●●●In order to integrate the cluster tomajor and international buyers andbuild an amenable market platformto scale up business, Council incoordination with Government of Indiais establishing International LaceTrade Centre at Narsapur (AP). Forsetting the above centre in the areaof 5 acre, land has been acquired.Special Focus for internationalmarketing in Latin America continued.MDA Assistance to the tune of Rs.2.24 crores to 151 handicraftsexporters for the period April-November, 2010 was disbursed andthe assistance to 202 exporters inthe remaining period of 2010-11 isexpected to be disbursed of estimatedamount of about Rs. 3.05 crores.The organization of product specificshows in craft clusters have enabledus to focus of buyers on the products.With the result, the product specificshows are being continued forpromoting exports of handicraftsproducts.Activities undertaken during 2009-10by Carpet Export Promotion CouncilCarpet Export Promotion Council isregistered as a Company Limited byGuarantee U/s 25 of the Companies Act,1956 on 12th day of February, 1982.The Main Objects of the Council is tosupport, protect, maintain, increase andpromote the export of Handknottedcarpets, woollen druggets and floorcoverings by such methods as may benecessary or expedient.ACTIVITIES OF THE COUNCIL FORTHE YEAR 2009-10Brand Image & PublicityMinistry of Textiles through O/o. the DC(H)sanctioned grant for Brand Promotion &163

ministry of textilesPublicity of Indian Carpets in US & Europe.Under the Project Council initiated thefollowing actions:i. Re-Branding of Indian Carpet Industrythrough PR Agency in USA.ii. Re-designing and development ofweb-site.iii. Creation of a logo for Brand Imageand Publicity.iv. Release of Advertisement in US &EU.Issues taken up at International Levela. The US Department of Laborpublished in the Federal Register alist of 122 products from 58 countriesthat the Bureau of International LaborAffairs (ILAB) believes are producedby forced labor, child labor or both"in violation of internationalstandards." The generation of the listis required by the Trafficking VictimsProtection Reauthorization Act of2005. The list includes carpets fromIndia as well as from Pakistan,Afghanistan, Iran, and Nepal.b. The Embassy of India, Washingtonhas recommended the visit of thedelegation from the 1st week ofDecember, 2009 before acceptanceof public comments on 10thDecember, 2009.c. A delegation headed by DevelopmentCommissioner (Handicrafts) consistedof Chairman and Executive Directorcum-Secretary,CEPC visited USA inDecember, 2009 in connection withUS DOL EO 13126 dated Sept., 11,2009 regarding initial determinationupdating the list of products requiringFederal Contractors Certification forthe goods produced by Child Labouror forced labour. The lobbyist in USfixed appointments for the delegation,prepared notes and briefings for themeetings and also accompanied thedelegation to various meetings in USDOL, State Department USTR incoordination with Embassy of India,Washington.d. The US Govt. sponsored the visit ofa Congressional Staff Delegation ledby Ms. Amber Cottle, InternationalTrade Counsel, Senate FinanceCommittee from August 9-13, 2009.The delegation had a meeting withDevelopment Commissioner(Handicrafts) and a presentation wasmade by him in his office on 12thAugust, 2009. Chairman and ED-Scy., CEPC were also invited for themeeting.e. Ms. Mary Ryckman Assistant USTrade Representative for Trade andDevelopment visited India from 22-28 October, 2009. The purpose ofher visit was to participate in the IndoUS Trade Policy Forum and to meetwith Indian Govt. Officials, US andlocal business people and NGOs todiscuss US trade preferenceprogrammes and the US Senate'sproposal to reform such preferenceprogrammes. The CEPC arrangedthe visit of Ms. Mary Ryckman toAgra on 27th October,2009 to seethe carpet weaving and to havemeeting with local exporters in Agra.She also had a meeting with DC(Handicrafts) on 28th October, 2009on the subject and she was briefedby the DC (Handicrafts).Welfare ActivitiesDuring the year under review 32 schoolswere run out of the Child Welfare Fundcollected from the Member-Exporters ofthis Council in Carpet producing belt ofU.P.Registration of LoomsDuring the period under review 27,974Carpet / Durry looms were registered164

annual report 2010-11covering all major carpet producing areasin India.Monitoring of LoomsDuring the period under review 72,449looms were inspected by the independentagency names Academy of ManagementStudies, Lucknow appointed by thisCouncil on which the incidence of ChildLabour was approx. 1.12%.Activities undertaken during the year2009-10●●●Organized participation in EURASIAFLOOR-2009 where 10 Member-Exporters participated and generateda good amount of business.Organized participation in DomotexMiddle East in Dubai from 17-19May, 2009 where 19 Member-Exporters participated and generateda good amount of business.Organized a meet on "Crusadeagainst Child Labour" on 12th June,2009 at Bhadohi on World Dayagainst Child Labour.● Organized participation in 2009-Qinghai International Carpet Fair from20-23 June, 2009 where 10 Member-Exporters participated.●●●Organized participation in Design &Decoration Show from 16-19 July,2009 in Melbourne (Australia) where12 Member-Exporters participatedand obtained good number ofenquiries and business.Organized participation in 39th House& Gift Fair in Sao Paulo, Brazil from15-18 August, 2009 in where 21Member-Exporters participated andobtained good number of enquiriesand business.Organized participation in NationalFloor Show in Harrogate (U.K.) from8-10 September, 2009 wherein 10●Member-Exporters participated andgenerated good amount of business.Organized participation in TextileHogar in Valencia (Spauin) fromk21-26 September, 2009 wherein 8Member-Exporters participated andgenerated good amount of business.● Organized India Carpet Expo 3-6October, 2009 at Varanasi. The Expowas inaugurated by Hon's Minister ofState for Textiles. 203 Member-Exporters displayed their wide rangeof products and 247 overseas carpetbuyers visited the Expo. Businessworth Rs.250.00 Crores has beengenerated during the Expo.●●●●Meeting of the National Level SteeringCommittee was held under theChairmanship of DC (Handicrafts)which reviewed the initiatives takenunder Welfare Activities of theCouncil, Registration & monitoring ofLooms. The Committee also reviewsthe development on the issue ofChild Labour in USA.Organized participation in Japantex2009 from 11-13 November, 2009 atTokyo (Japan) where 9 Memberexportersparticipated and obtainedbusiness and enquiries.Organized participation in DomotexInternational Trade Fair at Hannover(Germany) from 16-19 January, 2010where 147 member-exportersparticipated under the banner of thisCouncil. As per reports available theparticipants has secured goodamount of business.Organized participation in Surfaces,2010 from 2-4 February, 2010 in LasVegas, USA. 10 Member-exportersparticipated in the exhibition underthe umbrella of CEPC. As per reportsavailable the participants has securedgood amount of business andenquiries.165

ministry of textiles●Organized participation in StockholmFurniture Fair, 2010 from 9th to 13thFebruary, 2010 at Stockholm(Sweden). 9 Member-Exportersparticipated in the Fair under theumbrella of CEPC. As per reportsavailable the participants has securedgood amount of business andenquiries.● Organized India Carpet Expo. 23-26February, 2010 in Hall No.-18, PragatiMaidan, New Delhi. 233 Memberexportersparticipated in the fair.445 Overseas buyers visited the fair.The fair was inaugurated by Hon'bleMinister of Textiles under the graciouspresence of Hon'ble Minister of Statefor Textiles. Secretary (Textiles) wasthe Guest of honour duringinauguration. A good amount ofbusiness was transacted during thefair.●●Organized Exhibition-cum-BuyerSeller Meet, 27-28 February, 2010 atJaipur. 31 Member-Exportersparticipated in the Exhibition-cum-Buyer Seller Meet. 51 OverseasBuyers visited in this BSM and agood amount of business wastransacted during this BSM.Organized participation in DomotexAsiafloor, 2010 from 23-25 March,2010 at Shinghai, China where 8Member-Exporters participated underthe banner of CEPC.5. Grant to Individual Exporters :Council reimbursed MDA claims to139 member-exporters forparticipation in various activitiesorganized by the Council during2009-10.ACTIVITIES UNDERTAKEN BY THECOUNCIL DURING 2010-11 (Upto Nov.2010)●Participated in Domotex Middle Eastfrom 10-12 May, 2010 in which 18●●●●●●●Member-exporters participated andsecure good amount of business.Participated in Made in IndiaExhibition in Dubai from 8-10 June,2010 in which 3 Member-exportersparticipated and secure good amountof business.Participated in Qinghai InternationalCarpet Exhibition in Xining (Qinghai),China from 20-23 June, 2010 inwhich 16 Member-exportersparticipated and secure good amountof business.Participated in Design + DecorationShow from 15-18 July, 2010 inMelbourne (Australia) in which 15Member-exporters participated andsecure good amount of business.Participated in 41st House & Gift Fairfrom 14-17 August, 2010 at SaoPaulo, Brazil through ITPO in which5 Member-exporters of this Councilparticipated.Organized India Carpet Expo from29th October to 1st November, 2010at Sampurnanand Sanskrit UniversityGround at Varanasi where 257manufacturers & exporters displayedtheir exhibits and 229 overseas carpetbuyers from all over the world visitedthe fair.Instituted Export Awards for the years2007-08 and 2008-09 for outstandingexport performance to the exportersof handmade carpets and other floorcoverings on 29th October, 2010 atVaranasi. Hon'ble Minister of Statefor Textiles gave away the award oftrophies and certificates of merits to28 exporters.Organized Buyer Seller Meet in Agraon 2nd November, 2010 were 25manufacturer-exporters from Agradisplayed their products and 15buyers attended the meet.166

annual report 2010-11●●Organized participation in Japantex,2010 from 17-19 November, 2010 atTokyo (Japan) wherein 5 memberexportersparticipated.Organized participation in ATF Show,2010 from at Cape Town (SouthAfrica from 24-26 November, 2010wherein 5 member-exportersparticipated.Details of Societies/InstitutesINDIAN INSTITUTE OF CARPETTECHNOLOGY (IICT), BHADOHIIndian Institute of Carpet Technology"Bhadohi (IICT) has been set up by Ministryof Textiles, Govt. of India in 1998 as aregistered Society under the SocietyRegistration Act, 1860. IICT became trulyfunctional in 2001 by launching B.Tech.(Carpet & Textile Technology) programmewith 20 intake which has been raisedsubsequently. IICT was set up by Ministryof Textiles, Government of India to provideall possible technical support to the Carpet,Textile & other related sectors. Institutehas tried to fulfill long time pendingdemand of the sector for technical expertsthrough its two batches B.Tech.Technocrats. IICT is providing qualityeducation to its students by targeting tomeet the anticipated requirements of thestake holders through formal or informalfeedbacks from the various organizations.Other trainees of the institute have alsobeen doing well and holding a goodposition in the organizations. Institute hasbeen ISO-9000:2001 certified and itslaboratory is NABL (National AccreditationBoard for Laboratories) accredited.Testing reports given by IICT are validin many countries of the world B. Tech.programme of the institute is approved byAICTE, New Delhi & affiliated to U.P.Technical University, Lucknow, It is alsoapproved by the Textile Institute,Manchester (UK). Institute had receivedthe Best Performer Award from the U.P.Technical University.Present intake in B.Tech. programme is60 which are filled up through AIEEE &Central Counseling Board (CCB), NewDelhi. Besides B.Tech. Programmeinstitute is also conducting IDLP (InternalDistance Learning Programme) incollaboration with ag-Research, NewZealand & industry driven short-termindustry driven programme. IDPL consistsof 7 different diplomas out of 30 topicswhere as Short Term consists of 3programmes. The Institute is alsodeveloping the Modular Employable Skill(MES) for the carpet sector. The Instituteis also a member of I.S.T.E and CII.Institute is meeting the mandate throughits created four portfolios over the last 8functional years.The activities undertaken by the instituteduring the year 2009-10 are as under:Human Resource Development (HRD)●B.Tech Programme in Carpet &Textile Technology.■■99 passed out students areserving Carpet, Textile & relatedindustry.165 students studying.Present total intake is 60 integrating HomeTextiles Technology (HTT) & TextileDesign Technology (TDT) as specializationin addition to existing Carpet and TextileTechnology (CTT), where in 20 studentsin each category shall be specialized.●Short term training programmesThe following trainees in the ShortTerm Training Programmes duringthe financial year.■■■CAD - 28 Trainees completedthe programme.Computer & MT - 05 Traineescompleted in the programme.Dyeing - 06 Trainees completedin the programme.167

ministry of textiles●Industry-driven special courses &IDPL {aclaes - 18 Enrolled.Industry can take benefit by enrollingtheir representative(s) on desiredtopic(s) given below by paying fee(@ Rs. 6000/- per topic) throughIDPL conducted by IICT incollaboration with Ag research Ltd.,New Zealand. Effect to make IDLPDiploma holders eligible for lateralentry to B.Tech course is in progress.2. Design Creation and Development(DCD)●●●●A design Bank of 86 nos. ofdesign plates have been createdby the Institutes State-of-art CADDesign Studio.502 design plates & nackshashave been sold.Carpet Sampling Machine : It isbeing used by the industry todevelop prototype samples of18" X 18".Colour Xeros machine : it isbeing used by the industry toA3, A4 size colour photo copy.3. Research and Development (R&D)●●●Snehabha Carpet Backing : This is anew Carpet backing concept involvinguse of polymer sheet which can befixed at the back with or without thirdbacking. License was awarded to M/s Tag Bros, New Delhi. Subsequentlyby creation of a CFC in P.P.P. modelU.P. Govt. with the support of MSME,GOI is in process.Cross Bar Horizontal Loom : A newprofile loom for hand knotting whichis highly efficient and has lessdrudgery to artisans : LicenseAwarded. Bing included in aboveCFC for training purpose.Carpcost software : A piracy proofsoftware has been developed and●●ready for use on CD for costcalculation of hand knotted carpet atRs. 25,000/-. The updation ofsoftware has been taken up.India Knot : This is a new concept ofknotting on a hand loom which iscost effective and a diversifiedproduct - Potential for new nichemarket. License awarded to M/sBholanath International Ltd.Others : Floor covering using NaturalFibre, Application of Natural Dyes,product/process diversification.4. Technical support to the Industry(TSI)●●●●Institute has been providingcontinuous technical services to theindustry through its variouslaboratories such as CAD Lab,Design Studio, Physical & ChemicalLabs & Carpet Lab to fulfill theirneeds to compete with the globalmarket. The details of sample testingduring the year is given as under :■ Physical lab Services 343■ Chemical lab Services 933■ Carpet lab 101■ Design lab 502NABL Accredited laboratory hencetest reports are acceptableinternationally.Industry can utilize the facilitiesavailable to confirm the products tobe supplied as per requirement ofbuyers.Industry can hire IICT for consultationto enhance their businessperformance."KALEEN BANDHU" - a forumcreated to invite eligible & interestedorganizations/individuals to becomea member of IICT. One can become168

annual report 2010-11●a life member or Associate Memberon payment of Rs. 50,000/- or Rs.4,000/-Functioning of Satellite Centres.Government of India has alsoconsidered provision of services toother major carpet manufacturingstate of the country. In accordance,satellite centers of IICT, Bhadohi atSrinagar for the state of J&K and atJaipur for the state of Rajasthanhave been created. These centersare functioning under the constantguidance of IICT, Bhadohi and underthe overall superintendence ofDevelopment Commissioner(Handicrafts), Ministry of Textiles,Government of India & concernedstate.ACADEMIC & OTHER CURRICULARACTIVITIESAdmission to the B.Tech. 1st yearTotal intake in B. Tech. programme is 60seats. The CCB (Central Counseling Boardof AIEEE-2009) had allotted 19 candidates8 candidates had taken admission fromthe said allotment and 11 candidatedropped out/upgraded. Further, out of 52vacant seat(s), only 36 seats were filledup through Institute level Counseling asper norms of CCB (AIEEE - 2009) &approved by UPTU. Further, 10 candidates(Diploma/B.Sc. Degree Holder) tookadmission laterally in the B. Tech 2ndyear III - Semester in the session as perthe guidelines of U.P. Technical University& CCB of AIEEE - 2009.Commencement of the SessionThe new session commenced from 23rdJuly, 09 for the B. Tech. V & VII Semesterclasses and B. Tech. I & III Semesterclasses started from 12th September,2009.Examination Result and PerformanceDuring Financial year 1st April to 31stMarch 2010, 33 students of 5th Batch(2005-09) appeared in final VIIIth semesterexamination & 30 were declaredsuccessful out of this, students gotdistinction securing Gold & Silver medalsrespectively. 48 students of sixth batch(2006-10) appeared in 6th Semester examand were promoted to 7th Semester, 44student of seventh batch (2007-11)appeared in 2nd year 4th Semester examand were promoted to 5th semester.Metal Handicrafts Service Centre(MHSC), MoradabadMHSC meets the international requirementof art metal wares sector in areas of postproductionfinishing processes. It is underthe administrative control of office of DC(Handicrafts) and is managed byGoverning Council consisting ofrepresentatives of Government of India,government of UP and representatives oftrade and crafts. The center has thefollowing division:●●●●●●Electroplating shopTrainingLacqueringPowder coatingPolishing shopResearch Testing and CalibrationLaboratory.ActivitiesThe MHSC is providing assistance in thefollowing areas for the development of thesector :Activities undertaken/Achievement inthe year 2009-101. Metal finishing activities i.e.electroplating of silver, nickel, Copper,Brass, Chrome, & gold plating,169

ministry of textilesLacquering, Powder Coating, Sand/Sand Blasting and Misc. activitiesdone on artware.2. Laboratory Testing and certificationdone on metal artware.3. Video film of MHSC activitiesdeveloped for the best promotion ofactivities in India Handicraft & GiftFair.4. Participants in India Handicrafts GiftFair at Expo Mart, Greater Noida in(Spring) 2010 for promotion andmarketing of Centre's activities.5. Two number training programeconducted for 40 trainees of NadiaDistrict of West Bengal in the field ofSand casting, Scrapping, brazing andpolishing of metal artware product.6. A Design Workshop funded byMoradabad Handicrafts Exporters(Welfare) Association, Moradabadorganized at MHSC where 20 artisanswere benefited.7. Five Integrated Design andTechnology Development Workshopundertaken at Moradabad, Sambhal,Roorkee, Jalesar and Behat.8. Activities for setting up metalhandicrafts design bank undertaken.9. Activities for setting up CommonFacility Centre (Process facilities)undertaken under Mega ClusterScheme.Activities undertaken/Achievement inthe year 2010-11up to Dec.101. Metal finishing activities i.e.Electroplating of silver, nickel, Copper,Brass, Chrome, & gold plating,Lacquering, Powder Coating, Sand/Sand Blasting and Misc. activitiesdone on metal artware products.2. Laboratory Testing and certificationdone on metal artware.3. Centre's Website development andnamed as www.metalfinishanddesign.in4. Five number Integrated Design andTechnology Development project atMoradabad, Sambhal, Roorkee,Jalesar and Behat where 250innovation design developed and 500artisans got benefited.5. Participants in India Handicrafts GiftFair at Expo Mart, Greater Noida in(Autumn) 2010 for promotion andmarketing of Centre's activities.6. A tour programme of Market studyundertaken to Atlanta by team ofofficers comprising Shri Rohitbhardwaj, MD-MHSC/JD(H), Shri A.K.Soti, Manager (work)- MJSC, ShriN.N. Bahuguna, Foreman(E/P)-MHSC and Shri Rakesh Shrivastava,Executive Derector-NCDPD to studynew technique of metal finishing andDesign in the market and same wascomplete successfully in May 2010.7. MHSC set up a Design bank.8. A project awarded by DST incollaboration with Institute of Plasmaresearch, Gandhi Nagar (Gujrat) forsetting-up-eco-friendly plasmapolymerization system to coat brassartisans by Silicon di-oxide iscompleted.9. A training of 8 artisans & onesupervisor was organized who cameform Betul (Madhya Pradesh) in thefield of Sand Casting, Soldering/Welding and Polishing.10. A training programme of 60 artisanswas conducted successfully atBerhampur Distt. Murshidabd (WestBengal) under Khargee project whichwas funded by UNIDO representativeShri S.K. Gupta. The training wassuccessfully completed in SandCasting and Sheet metal work.170

annual report 2010-1111. Two project under Mega ClusterScheme i.e. Common Facility Centre(Process facilities) and Testing Centre(up-grading of existing testinglaboratory in the field of Metal, Wood,glass and Resin) is undertaken.12. An Exposure visit 10 Artisans & 03officers from Balkhati (Orissa) isorganized for the manufacturing &finishing activities.NATIONAL CENTRE FOR DESIGN &PRODUCT DEVELOPMENT (NCDPD),NEW DELHINational Centre for Design & ProductDevelopment (NCDPD) has been set upwith an objective to fill up the gap in theareas of Design and Product Developmentby the O/o Development Commissioner(Handicrafts), Ministry of Textiles, Govt. ofIndia. The other objectives of the centre isto build and create design orientedexcellence in the handicraft sector andwithstand global competitiveness. Anindependent society has been set up andthe members of the Managing Committeeincludes eminent handicraft exporters andpolicy makers. Development Commissioner(Handicrafts), Ministry of Textiles, Govt. ofIndia, is ex- officio Chairman of NCDPD.Besides providing design & productdevelopment services, the activities ofNCDPD have also been diversified intodifferent areas such as Skill/CapacityDevelopment, creating Infrastructuresupport at clusters such as setting up ofCommon Facility Services, Raw MaterialBanks, Resource Center, Design Center,Design Bank, Supply Chain Management,Market linkages by setting up MarketingOutlets etc. Presently more than 25international & national designers andmarketing consultants / experts areworking full time and equal number onpart time basis at NCDPD so to run theaffairs of NCDPD on purely commercialand business lines.Activities for Financial year 2010-11●HRD Programmes in rest of India250 programs at 30 locations■ Target : 5000 ArtisansAchievement upto March 2011- approx. 4300 artisansAchievement upto 30th Sept'10 - 700artisans●HRD Programmes in NER50 programs at 3 locations Guwahati(Assam)-20, Itanagar (ArunachalPradesh)-15 & Dimapur (Nagaland)-15.■ Target : 1000 artisansPrograms started in Oct'10Achievement upto March '11 -Approx: 985● HRD Programmes at BCDI,Agartala50 programsTarget : 1000 artisans.Achievement upto Sept'10 - 5000artisansAchievement upto March'11 : 500artisans●●●●●Workshop/Seminar for Cane &Bamboo during Gandhi Shilp Bazarin Chennai in the month of May'10:Activity completed.2 Integrated Design Projects forCane & Bamboo at BCDI, Agartala– Ongoing activity : Target : 100artisansProject under AHVY scheme forintegrated development of Woodcraft artisans in Saharanpur : Baseline survey being started.Study Tour abroad (China) : Activityapproved and to be undertaken.Stone Craft Museum in Tamil NaduAssembly Building at Chennai– Presentation made beforeHon'ble Minister of Textiles andHon'ble Chief Minister of TamilNadu171

ministry of textiles●●●●●Restructuring of RDTD C OKHLA/NCDPD– Feasibility study conducted andreport submitted.Display National Awardee's itemsof items during Masterscreations'10 at Dilli Haat during Oct'10 :Activity completed.Display of National Awardees itemsduring Award Ceremony ofMastercraftsmen at Ashoka Hotelduring Dec'10 :Market Study tours abroad - Japan& China.PublicityPrinting of 2500 copies of craft clustermaps and 2500 copies of folder cumjackets with CDs - To be released on15th Dec'10 by Hon'ble Minister ofTextiles– Printing of 1000 copies of Designbooks on various craft itemsproduced in craft clusters - Tobe released on 15th Dec'10 byHon'ble Minister of Textiles.Fashion show during Handicraft week2010- To be organized on 15th Dec'10at Pragati Maidan, New Delhi.Design Consultancy Services toHandicraft Exporters by NCDPDProvided design consultancy servicesto more than 200 exportersBAMBOO & CANE DEVELOPMENTINSTITUTE (BCDI), AGARTALABamboo & Cane Development Institute(BCDI) was set up in Agartala byDevelopment Commissioner (Handicrafts),Ministry of Textiles, Govt. of India with anobjective to provide strong forward andbackward linkages for the producers ofCane and Bamboo of North East Region.National Centre for Design & ProductDevelopment (NCDPD) has beenentrusted with the responsibility of runningand management of BCDI by O/o.Development Commissioner (Handicrafts)with an objective to professionalize theefforts in an effective manner. NCDPDhas initiated the activities by placing apool of expert manpower at BCDI, Agartalaitself. NCDPD has also started 5 daysskill development training programs,Integrated Design Development Projects,setting up of CFC, R & D projects etc atBCDI Agartala with an objective to improvethe skills of the artisans, craftpersons andentrepreneurs involved in themanufacturing of Cane & Bambooproducts. The design experts have alsostarted providing designs to theentrepreneurs and also helping them inproduction of the market acceptableproducts.Activities for Financial Year 2010-11●BCDI- Running & ManagementActivity started in Sept'09, Bambooprocessing machines installed andtrial run conducted. Appointment ofindependent in-charge is being made.ON GOING ACTIVITY●R & D - Feasibility for identificationand promotion of commerciallyviable technology for productdevelopment of value addition ofcane & bamboo product in NER● Signed MOU with INBAR(International Network for Bamboo& Rattan) for technical expertise andinternational linkages● Signed MOU with TripuraUniversity for jointly organizing oneyear Post Graduate Diploma Coursein Bamboo cultivation and resourceutilization.– Drafted New syllabus andintroduce it for one year PGDiploma course.172

annual report 2010-11●– Conducted 5 days Orientationprogramme of BCRU studentsat BCDI campus.– Experts of BCDI started takingtheory class every Tuesday atTripura University for 1stsemester.DESIGN LAB– New workstation is completedand ready for operation.– New designs created by thedesigners are being distributedto HRD artisans.IMPORTANT PROJECTSMega clusters at Moradabad andNarsapurMega cluster approach is a drive to scaleup the infrastructural and production chainat Handicrafts clusters which haveremained unorganized and have not keptpace with the modernization anddevelopment that have been taking placeso far. Consequently, there has not beenany addition of fresh impetus ofdevelopment and optimum realization ofoutput in the handicrafts sector, which isnot only the backbone of long traditionalheritage and cultural linkages. Theprospects of this sector lie in infrastructuralUpgradation, modernization of themachinery and product diversification.Innovative manufacturing as well asdesigning know-how, furthered by brandbuilding of the native products hold thekey to creating a niche market for theproducts manufactured by the clusters.The proposed programme is expected tosupport the Upgradation of infrastructuralfacilities coupled with market linkages andproduct diversification.The scheme envisages Government ofIndia support to the extent of seventycrores per Mega cluster. Theimplementation of the scheme is throughPPP mode where the Government ofIndia share has been designed in such amanner that it tapers down over theproject implementation period.Mega Capet Cluster at Mirzapur -Bhadohi and SrinagarAt present, the EFC for both the MegaClusters have been circulated to allconcerned and their observations havebeen received. The EFC meeting inquestion would be convened after theapproval of the Competent Authority.I. India Exposition MartII.India Exposition Mart set up atGreater Noida provides permanentcontact point for foreign buyersthroughout the year for a continuousbuyer seller interaction. The marthas 1800 outlets equipped withResource centre and latestinformation technology facilities.Urban HaatSo far setting up of 39 Urban haatsacross the country have beenapproved. Out of which, 19 UrbanHaats at the following locations havebecome operational/functional.● Jammu (J&K State)● Sringar (J&K State)● Uchana Karnal (Haryana State)● Jodhpur (Rajasthan)● Gohar Mahal (Bhopal M.P.)● Ahmedabad (Gujarat State)● Mysore (Karnataka)● Tirupati (Andhra Pradesh)● Bhubneshwar (Orissa)● Konark (Orissa)● Agra (UP)● Bhuj (Gujarat)● Pitampura (Delhi)● Dimapur (Nagaland)● Raipur (Chattisgarh)● Dilli Haat part-II● Mumbai (Maharashtra)● Puri (Orissa)● Raipur (Rajasthan)173

ministry of textilesIIISetting up of International CraftComplex at Vasant Kunj New DelhiThe proposed Craft Complex atVasant Kunj New Delhi shall be usedfor the purpose of Craft Bazar ( Highand shopping market )for handicraftsitems for which DDA has allottedland to the Ministry of Textilesmeasuring 7153 sq. mtrs.Simultaneously, the shop-in- shopconcept is developed for selling highend and synergy products onrotational basis. The benchmarks forselection of the vendors, maximumperiod of occupancy and otherparameters for revenue resourcesshall be prepared by the executingagency to run and operate the project.WEBSITE DEVELOPMENTOffice of the Development Commissioner(Handicrafts) is in process of developmentof two portals are as follows:●AHVY Cluster portalOffice of the Development Commissioner(Handicrafts) has developed AHVY ClusterPortal for promotion of Handicrafts withthe objective to provide marketing linkageto handicrafts clusters covered underAHVY scheme.The portal will have all the information ofAHVY cluster such as Detail of AHVYscheme, AHVY Beneficiaries, Cluster map,Cluster Directory, Design Gallery, and 50products of each clusters shall beshowcased in the portal i.e.www.craftsclustersofindia.in Initially 500cluster have been covered. The portal willact as a platform to showcase the productsand the buyer can directly interact withthe cluster group through e-mail/telephone.The portal had been launched on 9thJune 2010 by Hon'ble Minister of Textiles.STATUSAs of now the structure of website is fullyoperational, around 26853 productsphotographs and data of 599 clusters havebeen categorized and uploaded in thewebsite. Further data collection anddevelopment is in progress. The portal has1,44,410 hits till the month of January 2010.●Theme based cluster portalOffice of the Development Commissioner(Handicrafts) has developed "Theme BasedCluster Website" in 8 foreign languages forpromotion of Handicrafts in respect ofidentified themes with an objective toprovide marketing platform covering allstake holders such as Shilp Gurus,National/State Awardees, National MeritCertificate, Artisans under AHVY Clusters,Entrepreneurs, Exporters, Retailers andto facilitate foreign buyers to access thisportal. This website will also guide thetourists visiting 18 tourist places to reachthe desired handicrafts outlets (emporium/retailers) to make their purchases.Themes identified are:a) Needle Craftb) Natural Fiber and Eco friendly.c) Tribal Craftd) Fashion Accessoriese) Festival Decorations.The portal will have catalogue withphotographs of 42,500 products of above8,500 handicrafts entities, facility to sendemail inquiry directly to entity, profile &contact information of entity, linkage towebsite of entity (if any) search options,News and Events, etc. The portal hasbeen launched on 9th June 2010 byHon'ble Minister of Textiles.STATUSAs of now the portal is fully operational,the portal has been developed listed &hosted at website www.themecrafts.in.the detailed information regarding totalnumber of products, retailer, exporters,Shilp Gurus, National Awardees and StateAwardees is available on this website. Atpresent around 16000 products areuploaded on this portal.174

annual report 2010-11CHAPTER XIIPUBLIC SECTORUNDERTAKINGS175

176ministry of textiles

annual report 2010-11CHAPTER XIIPUBLIC SECTOR UNDERTAKINGSThe Union Minister for Textiles, Thiru. Dayanidhi Maran inaugurating the process of undertakingthe largest ever e-auction of land of two closed mills of National Textiles Corporation locatedat Worli, Mumbai, in New Delhi on July 29, 2010. The Minister of State for Textiles, Smt.Panabaka Lakshmi and the Secretary, Ministry of Textiles, Smt. Rita Menon are also seen.NATIONAL TEXTILE CORPORATIONLTD.The National Textile Corporation Ltd.(NTC) was incorporated in 1968with the main objectives ofmanaging the affairs of 16 sick textilemills taken over by the Government. NTCtook over more sick textile mills under 3Nationalization Acts. (1974, 1986 & 1995),raising the number to 119 mills in 1995.It was also proposed to rehabilitate andmodernize these mills after take over andexpand them wherever necessary with aview to make them economically viable.The mills are managed by NTC Ltd.through its registered office at NewDelhi.CAPITAL STRUCTUREInitially NTC Ltd. had an Authorized Capitalof Rs. 10.00 Crores which is now Rs.5000 Crores as on 31st March, 2010 withthe paid up capital of Rs. 3062.16 crores.REHABILITATION OF NTCDue to continuous losses and erosion ofequity, the company was referred to theBoard for Industrial and FinancialReconstruction (BIFR). BIFR sanctioned177

ministry of textilesrehabilitation schemes for NTC in 2002/2005, which were modified in 2006 (MRS-06) and 2008 (MS-08). As per BIFRapproval, the revival plan of NTC is to becompleted by 31.03.2011 at a total costof Rs. 9102 crore. As per the schemes,all the 9 subsidiaries of the companymerged with the Holding Company on01.04.2006, making it a single entity. Outof the total 119 mills, two mills weretransferred to the Govt. of Puducherry. 77unviable mills have been closed under IDAct. Of the remaining, 18 mills have beenmodernised by NTC itself, and are makingcash profits. 5 mills have been revivedthrough joint venture and are running inprofit.SUBSEQUENT DEVELOPMENTSThe MS-08 was approved by the BIFR on04.09.2008 at a total cost of Rs. 9102.72crores. It takes into account the variousmodifications due to changed economicscenario in the textile industry. It hasvarious reliefs and concessions asenvisaged in the earlier schemes.INAUGURATION(i)(ii)(iii)On 10.7.2010, Minister of Textiles,Shri Dayanidhi Maran inauguratedfour modernised mills namely VijayMohini Mills, Algappa Textile Miils,Cannanore Spg & Wvg Mills andKerala Laxmi Mills.On 6.6.2010, Smt. Rita Menon,Secretary (Textiles) inaugurated themodernised and revamped KhanMarket showroom in New Delhi.On 29.07.2010, Minister of Textiles,Shri Dayanidhi Maran inauguratedonline e-auction of sale of surplusland.MILESTONES ACHIEVED BY NTCUNDER THE REVIVAL SCHEME●Out of the total 119 mills, two millswere transferred to the Govt. of●●●●●●Puducherry. 77 unviable mills havebeen closed under ID Act. Of theremaining, 18 mills have beenmodernised by NTC itself, and aremaking cash profits. Of these, 9 millshave been awarded ISO Certification.Relocation of mills for modernization- BIFR approved relocation of 4 mills- one each at Achalpur (Maharashtra);Hassan (Karnataka); Ahmedabad(Gujarat); and Udaipur (Rajasthan).Setting up of these projects willtransform the Company into anintegrated textile company. 3 millsare composite mills which arerelocation projects and the spinningsegment of the two projects i.e Finlayat Achalpur, and New Minerva atHassan are erected & Rajnagar atAhmedabad is expected by Dec.2010.5 mills have been revived throughjoint venture and are running inprofit.Two mills namely Tirupathi CottonMills, Reningunta and CoimbatoreSpg. & Wvg. Mills, Coimbatore earlierearmarked for JV, are proposed tobe modernized by NTC.The Company has sold assets worthRs. 6168 crores as on 01.02.2011under the revival scheme.The entire workers of the millsidentified for closure and the surplusemployees in the viable mills inaddition to those employees whowere desirous to go under MVRS inthe various offices, were given MVRS.As on 01.02.2011, 62463 employeeshave gone under MVRS. As on01.02.2011 NTC has 8389 employeesin its units, offices and CorporateOffice.NTC mobilized Rs. 2028 croresthrough Bonds, redeemable on 5years maturity (NTC has paid full178

annual report 2010-11●amount of Rs. 2028 crores onRedemption of Bonds and Rs. 785.60Crs. as interests on these Bonds).NTC has paid Rs. 248.69 Crs.asOTS to 23 Financial Institutions/Banksunder the Revival Scheme.● The Company has paid Rs. 224crores to EPF/ESI authority & otheroutstanding statutory liabilities.●●The Company has paid Rs. 89 croresas 1% commission as GuaranteeCommission to the Ministry ofTextiles.The perennially sick company, whichwas running on Governmentbudgetary support of Rs. 385 croresfor wages in the year 2001-02, hasbeen brought out of sickness, and isgenerating the resources for wagespayment internally.E-AUCTION FOR SALE OF LANDFor the first time in the history of NTC,online e-auction of sale of surplus landhas been introduced with the approval ofAssets Sale Committee (ASC).●●●2.39 acres land of Podar Mill (Processhouse), Mumbai was put on e-auctionfrom 29th to 31st July, 2010. A totalof 8 parties who had deposited theEMD participated in the online e-auction. As against the reserve priceof Rs. 250 crores, the highest bidreceived was of Rs. 474 crores.The second online e-auction of BharatTextile Mills, Mumbai, admeasuring8.37 acres took place from 4th to 6thAugust, 2010. A total of 7 partieswho had deposited the requisite EMDparticipated in the online e-auction.As against the reserve price of Rs.750 crores, the highest bid receivedwas Rs. 1505 crores.As its third success towards onlinee-auction conducted from 29th 31stDecember, 2010, the company hasbagged Rs. 118.40 crores, againstthe reserve price of Rs. 41.27 crores,by sale of 8.21 acres of plot of NewManekchowk Textile Mills,Ahmedabad.PERFORMANCE DURING 2009-10 &2010-11Financial ResultsThe net profit (loss) for the year 2009-10(audited) 2010-11 (Actuals up to January,2010) and 2010-11 (Projected upto March,2011) has been Rs. 103.15, Crs.(Rs.1819.08 Crs.) and Rs.1873.50 Crs.respectively and the detail are given attable 12.1.ProductionThe production of Yarn & Cloth in NTCmills during 2009-10. April-January 2011and expected for the year 2010-11 isgiven at table 12.2.TurnoverThe sales of Yarn and Cloth in NTC millsduring 2009-10, 2010-11 (upto January2011) and 2010-11 (Projected upto March,2011) has been Rs. 477.91 Crs. Rs.296.86Crs. and Rs. 650.00 Crs., respectively.Details are given at table 12.3.EmploymentAt the end of January 2011, there were8389 employees on roll in NTC Group.Since April 1, 2002 to January 2011,62463 employees have availed VRS andan amount of Rs. 2309.06 crores hasbeen paid to them.Employment of WomenAt the closing of year 2009-10, in NTCGroup there were 34 women employeesof the rank of Assistant Manager andabove against a total of 469 officers.Similarly, there were 629 womenemployees of the rank of Senior Assistantand below, against a total 5711 employees179

ministry of textilesTable 12.1(Rs. in Crores)S. Particulars 2009-10 2010-11 ProjectedNo. (Upto Jan. for F.Y.2011) 2010-11A) Net Income from Operation beforeDepreciation, Interest & Tax) (108.35) (61.84) (0.00)B) Depreciation 39.82 36.79 45.00C) Interest :a) Interest on Govt. of India Loan 40.69 25.58 37.50b) Other Interest 18.72 17.34 20.00D) Net Profit or (Loss) for Ordinary activitiesafter Depreciation Interest. (207.58) (141.55) (102.50)E) Cash Profit or (Loss) from Operations forthe year before extra Ordinary (77.61) (61.84) (20.00)F) Tax :a) Fringe Benefit Tax – – –b) Deferred Tax Assets 189.47 – –G) Extra-Ordinary Items :i) Income from Sale of Assets etc. 185.31 2022.91 2054.00ii) Expenditure on MVRS etc. (69.88) (62.28) (78.00)iii) Provisions Written Back 2.28 – –iv) Interest Waived by GOI 6.06 – –H) Prior period adjustments (2.51) – –I) Net Profit/(Loss) after Extra-Ordinary &Tax items 103.15 (1819.08) 1873.50Table 12.2S. Particulars Yarn ClothNo. Lakh Kgs. Lakh Mtrs.1. Actual for 2009-10 298.75 127.322. 2010-11 (Actual for April-January 2011) 290.99 89.113. 2010-11 (Expected) 360.00 110.00Table 12.3(Rs. in Crores)S.No. Particulars Yarn Cloth TOTAL1. Actual for 2009-10 401.88 76.03 477.912. 2010-11 (Actual for April-Jan. 2011) 255.88 40.98 296.863. 2010-11 (Expected) 550.00 100.00 650.00180

annual report 2010-11in the category. The percentagerepresentation of women employees inthe above two categories comes to 7.26%and 11.01%, respectively.Vigilance ActivitiesAs a preventive step, guidelines issued bythe Vigilance Commission from time totime, are being circulated to all theconcerned officials for information andstrict compliance. The complaints receivedfrom various sources are being lookedinto and processed promptly as per theguidelines issued by the CVC. Further,regular/surprise visits are being made bythe vigilance officials in different units/offices of the Corporation. The rotationaltransfers/posting on sensitive areas arebeing monitored from time to time. TheAnnual Property Return etc. of the officials/officers are being scrutinized. Agreed listand ODI list are being prepared regularly.In order to strengthen and improvevigilance, Shri B.D. Gupta, IRS (IT:81)has been appointed as Chief VigilanceOfficer, NTC Ltd. with the approval ofcompetent authority.THE BRITISH INDIA CORPORATIONLIMITED, KANPUR (BIC)The British India Corporation Limited wasincorporated as a Public Limited Companyon February 24, 1920. It was taken overby the Government of India on 11th June,1981 under the British India CorporationLtd. (acquisition of shares) Act. The BICLimited, Kanpur owns and manages twowoollen mills viz (1) Cawnpore WoollenMills Branch, Kanpur (2) New EgertonWoollen Mills Branch, Dhariwal. Theproducts of these two mills are popularlyknown by the Brand names of "Lalimli" &"Dhariwal" respectively. These unitsmanufacture the woollen/blended suitings,Tweeds, Uniform Cloth, Lohis, Shawls,Rugs, Blankets etc. The British IndiaCorporation Limited has three subsidiarycompanies (1) Elgin Mills Co. Limited (2)Cawnpore Textiles Limited, Kanpur & (3)Brush Ware Limited.MODERNISATION/REHABILITATION OFBIC LTD. AND ITS SUBSIDIARIESThe company was declared sick in 1992and was referred to BIFR. The Schemefor rehabilitation of the two woollen millsof BIC - Cawnpore Woollen Mills Branch(Lal Imli) and New Egerton Woollen MillsBranch (Dhariwal) was approved by BIFRat the total cost of Rs. 211 crores withGovernment support of Rs. 86 crores.The scheme was under implementationsince December, 2002 and was to becompleted within a period of two yearswith the resources likely to be generatedby the sale of surplus land. However, itcould not be implemented within thestipulated time frame due to incompleteprocess of sale of surplus land as Govt.of UP did not issue any order forconversion of leasehold land into freehold.In view on non-implementation of theRehabilitation Scheme - 2002, theBIFR)directed the Operating Agency (OA)to draft a new Modified RehabilitationScheme (MRS) for revival of BIC Ltd.Accordingly, Modified RehabilitationScheme (MRS) was prepared andapproved by BIFR on 14.02.2008. Cabinetconsidered the revival plan of BIC Ltd. on08.08.2008 and inter-alia directed that theMinistry may go back to the Cabinet witha detailed revival plan subsequently afterinter-Ministerial consultations. Accordinglythe Modified revival Plan was submittedto Cabinet Secretariat on 17th Feb., 2009.The Cabinet Secretariat vide letter dated3.3.2009 directed that revival proposal ofBIC Ltd. required to be placed beforeBoard for Reconstruction of Public SectorEnterprises (BRPSE) in the first instance.Accordingly, a revival proposal based onTechno-Economic Viability (TEV) report ofWool Research Association (WRA) &Industrial Finance Corporation of India(IFCI) has been approved by BRPSE in itsmeeting held on 28.07.2010. Draft Note forthe Cabinet has been prepared and inter-Ministerial consultation is under progress.181

ministry of textilesSalary & wage support was being providedthrough Government loan till 2009-10. Nosuch Govt. loan has been provided inSBG 2010-11. However, Govt. budgetarysupport of `12.50 crore has now beenprovided by M/o Finance in 2nd Batch ofSupplementary Grants, 2010-11 forpayment of salary & wages to BIC Ltd. fora period of six months upto September,2010. An amount of Rs. 55.50 crore hasbeen indicated at RE stage by Ministry ofFinance for the Financial Year 2010-11.PERFORMANCE DURING 2009-10(AUDITED) 2010-11 (upto Nov.10) AND2010-11 (PROJECTED)FINANCIAL RESULTSThe net profit/cash loss for the year 2009-10 (audited), 2010-11 (upto Nov. 10) and2010-11 (projected) of BIC Limited aregiven at table 12.4.PRODUCTIONProduction of cloth in BIC mills during2009-10(audited ) 2010-11(upto Nov.10)& 2010-11 (projected) is given at table12.5.TURN OVERThe sale of cloth in BIC mills during theyear 2009-10 (audited) 2010-11 (uptoNov.10) & 2010-11 (projected) is given attable 12.6.EMPLOYMENTAs on 30th Nov. 2010 employees in CWMBranch were 1150, NEWM Branch 936and in corporate office 82.Table 12.4(Rs. in lacs)Sl. Particulars Audited Un-audited ProjectedNo. For the Year (Upto Nov. for F.Y.2009-10 2010) 2010-111. Net Profit (+)/Loss (-) - 4263 - 3044 - 46232. Non-operative expensesi) Govt. interest & guarantee fee 951.0 921.0 1382ii) Depreciation 39.0 27.0 36.0iii) VRS 0.0 – –iv) Provisions/Taxes -2.0 – –v) Prior period expenses 12.0 – –SUB TOTAL: 1000.0 948 14183. Total (=1+2) - 3263 - 2096 - 32054. Non-operative Incomei) Interest waived by Creditors – – –ii) Profit on sale of Assets – – –iii) Provisions written back 444 – –iv) Grant/Loan from GOI – – –SUB TOTAL:5. Cash profit (+)/-loss (3-4) - 3707 - 2096 - 3205182

annual report 2010-11Table 12.5Sl.No. Particulars Cloth Lakh Mtrs.1. Actual for 2009-10 (Audited) 0.592. Provisional 2010-11 upto Nov. 0.033. Projected for 2010-11 0.12Table 12.6Sl.No. Particulars (Rs. in lakhs)1. Actual for 2009-10 (Audited) 3712. Provisional for 2010-11 upto Nov 10 833. Projected for 2010-11 200REASON FOR DELAY INIMPLEMENTATION OF SANCTIONEDSCHEMEThe company had to repay the OTSamount of financial institutions/banksamount to Rs. 4.52 crores/Rs.87.75 croresfrom sale proceeds of surplus land. Thesale of surplus land started at Kanpur andDhariwal. Some properties were sold;whereas in case other properties 25%advance money was received and 75%was to be received on handing overpossession on execution of sale. U.P.State Government did not permit to convertleasehold property into freehold property.In such circumstances BIC Limited couldnot make the payment of SBI OTS amountin full in time nor could generate the fundsfor working capital. Presently full amountof OTS of Bank & FI's has been paidexcept interest of SBI levelled on delayedpayment as stipulated in the SS-02 i.eRs.11.56 core.ACTION TAKEN BY THE COMPANY SOFAR(a)The company has allowed VRS tothe employees 535 nos. identified assurplus and the expenditure of Rs.17.50 crores incurred thereon.(b) The Company has invested in themodernization/renovation Rs. 17.50crores in purchase of new renovationof old machines.(c) BIC released the funds Rs. 92.25crore from sale of assets amountupto March 2009.(d) BIC Limited made the entire paymentof SBI amounting to Rs.87.75 croresagainst OTS amount upto March,2009.(e) BIC made full payment of FinancialInstitutions (OTS amount) Rs. 4.52crores.(f) The company prepared and gotapproved a Modified DraftRehabilitation Scheme from BIFR inits meeting Held on 14.02.2008. Therevised scheme was prepared dulyconsulted with WRA & IFCI as perDirection of MOT for examination inBRPSE costing Rs. 313.90. Thisscheme was approved by BRPSE inits meeting held on 28.07.10 with thestipulation that the figure may beupdated to 31.3.11. Accordingly thesame scheme was revised to Rs.341.60 crore. The details are givenat table 12.7.183

ministry of textilesTable 12.7Scheme submitted to BRPSE and approved on 28.7.2010(** revised as on 21.02.2011)Cost of Scheme MRS Revised** Means of Finance MRS Revised**submittedsubmittedto BRPSEto BRPSECapital 62.9 62.9 Bridge Loan against 151.46 128.60Expendituresale of landVRS 26.9 17.1 Grant for VRS 26.9 17.1(328 (208 from GOIemp.) emp.)Expenditure on 10.0 10.0 Grant for Salary 59.3 78.00marketingfrom GOIInfrastructure(Bridge loan)developmentBrand andShowroomsLand conversion 47.4 47.35 Grant for operating 28.9 66.99cost losses for FY 09-10,2010-11Employee Dues Interest free loan 47.35 47.35from governmentfor Payment ofconversion chargesRetirement Gratuity 5.3 8.04Statutory Dues 5.6 8.61(EPF & ESI)Arrears* 27.0 –Salary payable for – 23.60FY2010-11Dues to subsidiary 4.6 4.6companiesMunicipal Taxes 0.6 0.6Misc. Creditors 2.2 2.1SBI Loan settlement 11.5 11.5NTC Bridge loan 9.3 9.4settlement (alongwith interest)Additional Working 44.0 54.77Capital andcontingencyCash Losses 56.6 77.47Grand Total 313.9 338.04 Grand Total 313.9 338.04184

annual report 2010-11ACTION TAKEN BY THE COMPANY/GOI AS PER SANCTIONED SCHEME2008●●●●In the compliance of directions ofCabinet dated 08.08.2008, BIC hasarranged another bridge loan of Rs.10.00 crore (in addition to bridgeloan of Rs. 5.00 crore earlier) fromNTC. A non plan budgetary provisionof Rs. 25.00 crore as loan to BIC Ltd.has been made in the RE-2008-09.Out of Rs. 25.00 crore. Rs. 15.00crore has been released as a loanfor meeting its salary requirementduring 2008-09.Revival scheme after detailed workingwas circulated for Inter Ministerialconsultation.As per Direction of Cabinet actionwas taken regarding inter ministerialconsultation and scheme along withtheir recommendations was sent tothe Cabinet for its approval whereinit was reverted back to get examinedby BRPSE.Accordingly, a revival proposal basedon Techno-Economic Viability (TEV)report of Wool Research Association(WRA) & Industrial FinanceCorporation of India (IFCI) has beenapproved by BRPSE in its meetingheld on 28.07.2010. Draft Note forthe Cabinet has been prepared andinter-Ministerial consultation is underprogress.SUBSIDIARIES OF BIC LIMITED I.E.ELGIN MILLS COMPANY LIMITED,CAWNPORE TEXTILE MILLS LTD. ANDBRUSHWARE LIMITEDELGIN MILLS LIMITEDThe Elgin Mills Company Limited wasestablished in the year 1864 and it wasregistered in the year 1911 comprising 2Units as Elgin No. 1 & Elgin No. 2. By anordinance called the British IndiaCorporation Limited (Acquisition of shares)Act 1981 the GOI acquired all shares ofBIC Limited and thus became aGovernment company from 11th June1981. The Elgin Mills Co. being subsidiaryof Govt. Co. acquired the status of Govt.Company. Due to continuous losses, thecompany was declared sick by BIFR onNovember 3, 1992.Considering the need to protect the textilesindustry in Kanpur city where all thetextiles mills in the public sector havebeen closed down, Government hadapproved the proposal for the revival ofElgin Mill No.1 at a total cost of Rs 95.58Cr, provided a suitable private party waswilling to become a majority shareholder.The High Court was requested to remandthe case to BIFR. AAIFR, on 14.11.2005,remanded the case to BIFR with directionsthat the Company, the Government ofIndia in the Ministry of Textiles, and theoperating agency, namely IDBI, shouldformulate a draft rehabilitation schemeand place it before BIFR within 90 daysfrom the date of this order. A DraftRehabilitation Scheme was filed by IDBIon 23rd June, 2006 before BIFR forapproval. The BIFR had issued directionson 10.08.2006 to the (Operating Agency)OA for taking necessary steps for changeof management, issue of necessaryadvertisement in this regard.In the light of judgment of Hon'ble SupremeCourt in the case of Centre for PublicInterest Litigation V/s UOI & another, theearlier decision of the Govt. to reviveElgin Mills through private partner withmajority shareholding was under review.Besides, an appeal was also filed by theCompany before BIFR to review its orderdated 10.08.2006 regarding change ofmanagement of the Company. BIFR in itshearing dated 13.3.2007 has deregisteredthe reference filed by the Company underSICA.185

ministry of textilesA Cabinet note was sent to CabinetSecretariat seeking approval of Cabineton the proposal of revival of Elgin Mill No.2. Cabinet Secretariat returned the samewith the direction that the proposal has tobe first considered by the Board forReconstruction of Public SectorEnterprises (BRPSE). BRPSE 'in-principle'approved revival plan of Elgin Mills Co.Ltd. through National Textile Corporation.Based on the approval of the Revival Planof EMC as approved by BRPSE, a noteseeking approval of the Cabinet was sentto Cabinet Secretariat on 18.02.2009. TheCabinet Note was returned by the CabinetSecretariat on 3rd March, 2009 with theobservation that inter-ministerialconsultation has not been completed. Inthe meantime. Ministry of Financeintimated willingness to consider the revivalplan of Elgin Mills Company Ltd., butwithout the component of interest-freebridge loan. According to NTC, bridgeloan from Govt. will be required to settlethe dues, without which the revival planmay become a non-starter. Further advicehas been solicited from the Deptt. ofExpenditure and BRPSE. Minister ofTextiles has written a d.o letter to ChiefMinister of U.P on 6.1.2010 for expeditingnecessary permission of State Governmentfor sale of surplus land / assets of theCompany. The matter is continuouslybeing perused with the State Governmentof Uttar Pradesh.CAWNPORE TEXTILES LIMITED,KANPURCawnpore Textile Mills Ltd. wasincorporated in the 1920. The companywas declared as sick company in 1992and was referred to BIFR. On January 19,1995, BIFR recommended winding up ofthe company and AAIFR confirmedwinding up order on September 29, 1999.Hon'ble High Court of Allahabad passedorder for winding up and appointed anOfficial Liquidator. The Govt. stopped thepayment of salaries and wages to theemployees from August, 2000. Onhumanitarian ground the Govt.implemented voluntary separation schemeon March 31, 2001. Except 4, all theemployees opted VSS. The company islying closed and the Official Liquidatorhas not taken possession of the Mills.BRUSHWARE LIMITEDBrushware Ltd. was incorporated as PublicLimited Company in the year 1893. Thecompany engaged in manufacture of alltypes of brushes like Industrial, Domestic,Personal and pint brushes catering to theneeds of the Defence, Railway, HAL,Sugar Mills, Textile Mills, and Roadways.Due to persistent loses, production wasstopped w.e.f. March 1994 and presentlythe company is lying closed. To seek thepermission for closure of the Company,the BIC Ltd. has approached the Ministryof Labour. The case was last heard in theMinistry of Labour on March 22, 2007.The Ministry of Labour vide order datedApril 12, 2007 have granted permissionfor closure of the company. The companyis under liquidation.THE CENTRAL COTTAGE INDUSTRIESCORPORATION OF INDIA LTD. NEWDELHI (CCIC)The Central Cottage Industries Emporiumwas established in Delhi in the year 1952under the management of IndianCooperative Union and was later on takenover by Central Cottage IndustriesAssociation in 1964 and was incorporatedas Central Cottage Industries Corporationof India Ltd.(CCIC) on February 4, 1976.CCIC is under the administrative controlof Ministry of Textiles.The main objective of CCIC is to be adealer, exporter, manufacturer and agentof quality Indian handicrafts andhandlooms and to develop markets forthese products in India and abroad. TheCorporation has eight-showrooms viz. at186

annual report 2010-11Mrs. Gursharan Kaur, Wife of Hon'ble Prime Minister of India inaugurated Exhibition cum Sale"Unique Heirloom Sarees created by Master Weavers" on 07-03-2011 at Central CottageIndustries Emporium, Janpath, New Delhi in the august presence of Smt. Panabaaka Lakshmi,Hon'ble Minister of State for Textiles & Mrs. Rita Menon, Secretary, Ministry of Textiles,Sh. R.N. Choubey, D.C. Handlooms, Govt. of India. On the occasion Sh. Nirmal Sinha,Managing Director, CCIC welcomed them.Delhi, Kolkata, Mumbai, Bangalore, andChennai. Besides, CCIC has two franchiseoutlets in Gurgaon and Patna and anoverseas franchise showroom atCopenhagen, Denmark.CCIC vacated its existing showroom atMumbai situated at 34, Chhatrapati ShivajiMaharaj Marg, Mumbai-400039 on30.03.2010 as per the directives of Hon'bleSupreme Court of India and opened fourshowrooms/outlets in Mumbai at Malad,Vashi, Weavers Service Centre (HotelRegal Palace) and 34, First Floor,Chhatrapati Shivaji Maharaj Marg in theyear 2010-11.CapitalThe authorized capital of the Corporationis Rs.1200 lakhs and the paid-up capitalis Rs.1085 lakhs.WORKING RESULTSTurnoverThe turnover of the Corporation for theyear 2009-10 was Rs.6758.56 lakh asagainst Rs.6859.02 lakh in the previousyear i.e. 2008-09.ExportsThe total exports of the Corporation during2009-10 were Rs.239.92 lakh as comparedto Rs.313.37 lakh in the previous year.ProfitabilityThe Gross Profit during the year 2009-10decreased from Rs.3454.31 lakh in theprevious year to Rs.3388.83 lakh. Theoverheads of the Corporation decreasedfrom Rs.3393.18 lakh in the previous yearto Rs. 3371.42 lakh in the current year.The current year ended with a pre-tax187

ministry of textilesprofit of Rs.17.41 lakh as againstcorresponding profit of Rs.61.13 lakh inthe previous year.StatisticsSummarized working results for the lastthree years are given at table 12.8.Development of DesignsThe Corporation laid special emphasis onthe development of new designs in Carvedand Inlaid furniture, Traditional handembroidery, Marble & Soapstone Craftsetc. through grant-in-aid projects from theOffice of Development Commissioner(Handicrafts), New Delhi. Apart from theseprojects, CCIC is also working on newdesigns for Men Wear, Women Wear andChildren Wear for Summer and Wintercollection, Theme based exhibition forhandloom and handicraft departments.This helped the Corporation to promotesales and also enabled it to maintain itsimage in the field of handicrafts andhandlooms.ExhibitionsDuring the year 2009-10, CCIC organizedvarious in-house and outside thematicexhibitions, wherein newly designedproducts were displayed by theCorporation to expand the patronage ofCorporation.On-line ShoppingCCIC launched its enhanced onlineshopping website i.e. www.thecottage.infor its valued customers. The websitedisplays about 1000 Handloom andHandicraft products with description foronline shopping. The products can bepurchased through secured paymentgateway by credit card which is verisigncertified. The products purchased can beshipped to any country all over the world.It has order tracking mechanism and linksto various Govt. websites, Incredible Indiaetc.The website was inaugurated by Hon'bleUnion Minister of Textiles Thiru DayanidhiMaran on 21st August, 2009 in thepresence of Minister of States for TextilesSmt. Panabaaka Lakshmi, Smt. RitaMenon, Secretary, Ministry of Textilesand media persons by online purchase ofitems displayed on the website.Manpower Strength & TrainingAs on 31st March, 2010 the Corporationhad strength of 344 employees ascompared to 351 in the previous year.Table 12.8(Rs. in lakhs)2006-07 2007-08 2008-09 2009-10 2010-11(Prov.)Turnover* - Retail 8108.05 7493.81 6859.02 6758.56 7000.00- Bulk Orders 2413.32 999.53 Nil Nil NilTotal 10521.37 8493.34 6859.02 6758.56 7000.00Exports 511.09 342.48 313.37 239.92 287.00Net Profit (+) / Loss (-) Before tax 22.18 698.25 61.13 17.41 50.00Net Profit (+) / Loss (-) after tax 191.76 421.57 20.61 (-)18.84 35.00Dividend 38.35 217.00 4.13 Nil 7.00*includes exports also.188

annual report 2010-11The Union Minister for Textiles, Thiru. Dayanidhi Maran addressing at the inauguration of the'Museum Shop' by the Handlooms and Handicrafts Export Corporation (HHEC), with new productline, at National Museum, in New Delhi on September 28, 2010. The Minister of State for Petroleum& Natural Gas, Thiru Jitin Prasada and the Secretary, Textiles, Smt. Rita Menon are also seen.THE HANDICRAFTS & HANDLOOMSEXPORTS CORPORATION OF INDIALTD. (HHEC)The Handicrafts & Handlooms ExportsCorporation of India Ltd. (the"Corporation") is a Government of IndiaUndertaking under the administrativecontrol of Ministry of Textiles. It wasestablished in the year 1958, as "IndianHandicrafts Development Corporation Ltd"with the twin objective of (i) exportpromotion and (ii) trade development ofhandicraft and handloom products. In theYear 1962, it was renamed as "TheHandicrafts & Handlooms ExportsCorporation of India Limited". TheCorporation is presently is a two starexport house engaged in exports ofhandicraft and handloom products(including hand knotted woolen carpetsand ready-made garments) besidesundertaking export of gold and silverjewellery / articles. The Corporation wasnominated in the year 1997-98 for importof bullion and sale in the domestic market.The performance of the Corporation in2009-10 in relation to major indicators isgiven at table 12.9.Table 12.9TurnoverProfit/(Loss) before TaxProfit/(Loss) after Tax1551.06 Crores(1.15) Crores(1.16) CroresThe Corporation has ended the year witha net loss after tax of Rs. 1.16 Crores asagainst Rs. 0.47 Crores last year mainlydue to write off of Deferred RevenueExpenditure (VRS) by Rs. 1.01 crores asper the Accounting Standard (AS-15) andadditional provision for Gratuity by Rs.0.79 crores due to amendment in ThePayment of Gratuity Act w.e.f. 24.05.2010.189

ministry of textilesCAPITALThe Authorized and Paid up Capital of theCorporation remained unchanged atRs. 20.00 Crores and Rs. 13.82 Croresrespectively during the year 2009-2010.The entire Paid up Capital has beensubscribed by the Hon'ble President ofIndia.WORKING RESULTSDuring the year 2009-10, the Corporationhas achieved the turnover of Rs.1551.06Crores as against Rs. 1592.18 Crores inthe corresponding period last year. Thedecrease is mainly due to decrease inexports of Gold Jewellery by Rs. 27.23Crores (96.2%) due to recession in theglobal economy and decrease in BullionImports by Rs. 18.45 crores (1.2%) dueto slackening of demand for silver bars onaccount of steep rise and fluctuation inprices and appreciation of the IndianRupee, though in quantitative terms theimports have increased. However, variousinitiatives taken for improving the Exports& Retail Sales in the core business groupresulted in increase of 27.7% in theExports Sales i. e. from Rs. 14.82 Croresin 2008-09 to Rs. 18.92 Crores and anincrease of 12.8% in Retail Sales i.e. fromRs. 3.60 crores in 2008-09 to Rs. 4.06crores.With optimal utilization of the idle assetsand measures initiated for cost reduction,the Loss for the Year before Prior PeriodItems, Extra Ordinary Items and Provisionfor Taxation amounted to Rs. 0.50 Croresas against 0.54 Crores last year, despitewrite off of Deferred Revenue Expenditure(VRS) by Rs. 1.01 crores.EXPORT PROMOTION AND TRADEDEVLEOPMENT●The Corporation has participated invarious International and domesticexhibitions/Fairs to showcase the new●●samples developed from traditionalcrafts and textiles clusters as well asto upgrade knowledge on designsand fashions abroad viz., 20th IndiaHome Furnishing Fair (Osaka -Japan), 30th India Garment Fair(Osaka - Japan), 2nd South AsianCommodity Fair (Kunming - China),Pret-A-Porter (Paris - France), Heim-Textil (Frankfurt - Germany), BrandIndia Textile, Clothing & Interior Show,(Melbourne & Sydney - Australia),International Autumn Fair(Birmingham - UK) and Festival ofIndia (Colombia), IHGF (Autumn)2009, Heimtextile India 2009, IHGF(Spring) 2010 and Text-styles India2010. Besides, regular participationin major international and local fairs,the Corporation has also proposedto participate in AFL Artigiano (Milan- Italy), Domotex (Hannover -Germany), Handicrafts Exhibition(Norway) and Buyer-Seller Meet(Uruguay).With a view to provide design inputs,training & marketing support toartisans and to widen the range ofproduct samples, the Corporation hasproposed to undertake projects toprovide forward market linkages tovarious craft clusters - such asChampa in Chattisgarh where a rangeof silk stoles, dupattas, kurtas, salwarsuits and sarees have beendeveloped. The Corporation hasinitiated steps to market the productsof different craft clusters and in thisregard MOU has already beenentered into with Jharcraft, Nanritamand Co-optex. Further, it is proposedto enter into MOU to market theproducts of Trifed and M.P. HastshilpVikas Nigam Ltd.A franchisee showroom has beenopened at Dammam in Saudi Arabiaand proposed to open 2nd outlet atAl-Khobar, Saudi Arabia. It is190

annual report 2010-11●proposed to open franchiseshowrooms at Uruguay, Germany,Australia / New Zealand. For furtherdevelopment of business in potentialglobal markets, General Sales Agentshave been engaged during the year.In order to strengthen its RetailMarketing, the Corporation hasopened two new shops in Delhi atRajiv Chowk and Rajouri GardenMetro Stations on 15.07.2010 and16.09.2010 respectively and anotherone shop opened in Chennai. Inaddition to that new product line waslaunched at the renovated SouvenirShop at National Museum, New Delhi,which was inaugurated by Hon'bleMinister Thiru Dayanidhi Maran on28.09.2010. The Corporation is alsocontemplating opening of newsouvenir shops in the museumsacross the country to showcase ourethnic Indian products with focus onmuseum objects replicas product line.In this series, the next shopsproposed are at Salar Jung Museum,Hyderabad and Qutab Minar, Delhi.The Corporation has also beenallotted space at Common WealthGames for display of products andlive demonstration during the games.● The Corporation's E-Shopwww.hheconline.in which waslaunched last year is attracting goodBusiness for the corporation.Numerous buyers have beenassociated with the Corporationthrough its E-Shop portal and manyof them have shown their willingnessto join the Corporation for long-termbusiness plans.JUTE CORPORATION OF INDIA (JCI)LTD, KOLKATAThe Jute Corporation of India Limited(JCI), a Government of India Enterprise,was established in 1971 under theCompanies Act, 1956 and is engaged inpurchase and sale of jute and mesta. JCIis an Official Agency of the Ministry ofTextiles (MOT), Govt. of India, forimplementing the policy of providing aMinimum Support Price (MSP) to themillions of jute growers and to serve asa price stabilizing agency in the jutesector. As per the policy decision of thegovernment, JCI is obliged to buy whateverquantity of jute is offered at support ratesby the growers without any quantitativelimit. The losses incurred by JCI whileimplementing the open-ended policy ofthe Government of India to support thejute farmers are reimbursed by theGovernment of India. The Corporationhas started marketing of non-traditionaljute products in collaboration with theNational Jute Board through a salesEmporium at Kolkata.Currently, JCI is operating through 171Departmental Purchase Centres (DPC)situated in 7 Jute Growing States namelyWest Bengal, Assam, Maghalaya, Bihar,Orrisa, Andhra-Predesh and Tripura. Inorder to increase its market coverage, JCIhas involved Cooperative Society in theJute Growing States to participate in MSPoperation in the raw jute/mesta throughtheir DPCs.In the implementation schedule ofCorporate Social Responsibility (CSR)activities, it is stated that expenditureunder CSR activities should be projectbased and it should be such as to helpin building a positive image of the companyin public perception. JCI has taken initiativeto execute some CSR projects during theyear 2010-11 as it mainly operates for thesocials masses by shouldering theresponsibilities of the Nodal Agents of theGovt of India to implement the MSPoperation of raw jute and to remuneratethe Marginal Jute Farmers The yearlytarget of `10 lakh is given in MOU 2010-11 of JCI. In the first phase of CSRactivities, JCI organized Basic MedicalCamps for primary health check-up for191

ministry of textilesfamilies of Jute Farmers and to providethem general medicines on prescriptionqualified Medical Practitioner attended theCamps in interior areas of West Bengalsurrounding our Departmental PurchaseCentres with the help of Localadministration. In addition to above, TheInstitute of Jute Technology (IJT) andDPCs of JCI have also been advised toidentify students on merit to support themfor their Tuition fees/scholarship.Performance of Jute Corporation of IndiaLtd is highlighted at table 12.10.NATIONAL JUTE MANUFACTURESCORPORATION (NJMC)The National Jute ManufacturesCorporation Limited (NJMC) wasincorporated in 1980. Constituted by sixnationalized jute mills viz. National,Kinnison, Khardah, Alexandra, Union &RBHM of which the first five are locatedin and around Kolkata and RBHM atKatihar, Bihar. NJMC is the only PublicSector Undertaking engaged in Jute goodsmanufacture. The Mills produce traditionaljute goods like Hessian, Sacking, JuteTwine and also Carpet Backing Cloth(CBC).At the time of nationalization production ofthe mills under NJMC was around 1.10Lakh tonnes per annum, which went up to1.33 Lakh tons in 1985-86. However,there has been continuous decline inproduction thereafter. Since 2004-05,allthe six units of NJMC are non operationaldue to disconnection of power supply byCESC / BSEB for non-payment of theirdues.The trend of production, productivity &performance is given at table 12.13. NJMChad been suffering cash loss sinceinception. In view of continuous cash lossand complete erosion of net worth, NJMCwas referred to the Board for Industrial andFinancial Reconstruction (BIFR) on August11, 1992. Thereupon, BIFR declared theCompany as sick under the provisions ofSick Industrial Companies (SpecialProvision) Act, 1985 (SICA). BIFR in anorder dated July 8, 2004, confirmed windingup of the NJMC Ltd. in terms of Sec.20(1)of Sick Industrial Companies (SpecialProvision) Act, 1985 (SICA). and forwardedthe case to the Calcutta High Court forwinding up of the company and appointmentof official Liquidator. On January 6, 2005,a Single Judge Bench passed the order forTable 12.10Particulars 2006-07 2007-08 2008-09 2009-10 Projected2010-11Quantitative (Lakh bales of180 kg each) :Procurement of Raw Jute 4.84 7.66 1.02 0.01 0.34Sales of Raw Jute 1.19 5.92 6.58 0.23 0.35Closing Stock 4.08 5.84 0.24 0.01 –Financial (Rs. in Crore)Sale of Raw Jute 32.35 142.33 166.66 8.92 20.00Sale-Jute Seed 0.28 0.18 0.15 0.79 1.35Adjusted cumulative Profit afterregulation of subsidy as perCabinet decision 74.83 76.08 57.82 59.38 55.70192

annual report 2010-11winding up of NJMC Ltd. and directed theofficial liquidator to take possession ofassets of the company. SubsequentlyNJMC management preferred an appealbefore the Division Bench of the Hon'bleHigh Court, Kolkata against the said orderwhereupon the matter was heard by theDivision Bench on February 7, 2005, andstay was granted which is presentlyoperational. Meanwhile, NJMC Officer'sguild filed an appeal before the AppellateAuthority for Industrial and FinancialReconstruction (AAIFR) against the windingup order of BIFR.The financial year 2009-10 was an eventfulyear for the company because of thedecision of the union cabinet to run itsthree units by NJMC itself the operationof which were suspended in the year2003-04. Moreover approval of financialrestructuring by way of waiver of GOI loanand interest of Rs.6815.06 cr. hasimproved substantially the net worth ofthe company.Corporate PerformanceThe performance for the financial years2009-10 and 2008-09 are summarized attable 12.11.Highlights regarding present status ofNJMCa) The Union Cabinet has approved Rs978 Crores for VRS of its allemployees and settlement ofStatutory dues. The case is to bereferred to BRPSE for Revival ofNJMC.b) The VRS is given to more than16000 workers and settled allstatutory dues.c) The BRPSE approved the RevivalPlan of NJMC in December 2007.d) The Union Cabinet has approved theRevival Plan of NJMC on 19th March2010 to revive through PSU routeand run its 3 Jute Mills that isKinnison and Khardha of Kolkataand RBHM Katihar.e) The Union Cabinet also approvedrevised cost of scheme of Rs1562.98Crores on 25th Nov 10 as preparedby IDBI (operating agency appointedby BIFR) which is submitted to BIFRfor its final approval.Table 12.11Sl. Particulars 2009-10 2008-09No.I. Production – –II. Sales – –III. Contribution to Exchequer (Rs./Crore) 1.07IV. Profit & Loss (Rs./Crore)Net Loss (before charging Intereston Govt. Loan) 12.84 104.44Interest / Adjustment of Govt. Loan 6797.67 479.23Net Loss (after charging Govt. Interest) 12.84 583.67Cash Loss (before charging Interest onGovt. Loan and extra ordinary item) 12.84 72..36V. Net Worth (Rs./Crore) – -6842.75193

ministry of textilesRestart of Jute Mills as per RevivalPlanThere was no production activity duringthe year 2009-10. The operation hasbeen stopped for last 7-8 years in all thesix units of the company in view ofcontinuous cash loss. However,consequent on the decision of the cabinet,the company has strategic plan to startproduction in all three mills. Accordinglytrial run is started in all three Revival Mills.The Power is restored in RBHM Katiharin September 2010 and power is underrestoration in kinnison and kharda also toget regular production in all 3 Mills by theend of financial year 2010-11. There isgreat potential in the Indian jute packagingsector and that with economic stability,the demand for jute sacking bags andyarn would further strengthened. Thereforeto cater the burgeoning demand for qualityproduct NJMC will focus on timelyexecution of Revival plan withoutcompromising quality and compliance.ProfitabilityIt will be observed from the Profit & LossAccounts submitted herewith that the cashloss of the company has been decreasedfrom Rs. 72.36 Crore in 2008-2009 toRs.12.84 crore in 2009-10. Thesummarised position is given at table 12.12.Table 12.12(Rs. in Crore)Particulars 2009-2010 2008-2009Sales – –Processing Income – –Other income 11.66 17.93Accretion / Decretion of stock – –TOTAL 11.66 17.93VRS Expenditure 2.47 54.15Wages & Salaries (excluding Gratuity) 9.25 48.10Gratuity 0.73 0.77Other expenses 11.10 6.00Fringe Benefit Tax – 0.11Interest on GOI Loan – 479.23Interest -Others 0.79 6.14Depreciation 0.16 0.18Prior Period Adjustment 0.52 6.92TOTAL 25.02 601.60Extra ordinary Item (Waiver of Govt. Loan& Interest) 6797.67 –Net Loss (after charging Interest on Govt. loan) 12.84 583.67Net Loss (before charging Interest on Govt. loan) 12.84 104.44Cah Loss for the year (before charging Intereston Govt. Loan and extra ordinary item) 12.84 72.36194

annual report 2010-11Cabinet DecisionEarlier the Cabinet in its meeting held on24.03.2005 extended budgetary supportof Rs. 978.00 crore while approving Planof Action for the company i.e. (i) Reductionof manpower by offering VRS to all theemployees (ii) Liquidating of statutorydues, arrear gratuity and secured liabilities(iii) The mills at Kinnison and Khardah tobe referred to the Board for Reconstructionof Public Sector Enterprises (BRPSE) forrevival. Accordingly the company hasgiven VRS to all workers and staff of themills including head office except officersand settled all secured and statutory duesand arrear gratuity and other dues. Thecompany had also submitted draftRehabilitation Scheme (DRS) to BRPSEprepared by IDBI. BRPSE approved theDRS with suggestion to the ministry toexplore the possibility of associating oneor more private partners for revival of themills. Thereafter the company revised theDRS through IDBI with a total cost ofscheme Rs.1201.83 crore considering allthe three mills to run on long term leasebasis. The cost of scheme comprises ofpayment of VRS, arrear statutory dues,secured and unsecured dues and provisionof salary & administrative expenses fortwo years implementation period uptoMarch 31st 2010. However, the proposalsubmitted to the cabinet by the Ministry ofTextiles (MOT) include long term Leaseor to run by NJMC itself in which caseadditional requirement of fund would beRs.215.70 crore.The Cabinet, on 19th March 2010approved the Revival scheme of thecompany as follows:-Revival of the three mills viz. Khardah,Kinnison in W.B & RBHM in Bihar byoperating through NJMC itself and closureof remaining three mills viz. Alexandra,National & Union with Cost of SchemeRs.1417.53 Crore which include anadditional budgetary support (interest freeloan) of Rs. 215.70 Crores during 2010-11.(a)(b)(c)(d)Financial restructuring of NJMC Ltd.i.e. to write off entire outstandingloans and liabilities of Rs. 2722.02Crore and interest of Rs. 4093.04Crore on those loan and other assets/ receivable as on March'31, 2009against accumulated loss.Relief package to officers / Executivesfor successful implementation of VRSand Revival Scheme.Settlement of liabilities of unsecuredcreditors (Principal amount only)amounting to Rs. 33.73 crore as partof the Revival Scheme of NJMC Ltd.To grant other relief and concessionsought by NJMC to implement therevival scheme as outlined the revisedDRS.Action Taken on decision of the CabinetConsequent to the decision of the Cabineton March 19, 2010 a ModernisationCommittee has been formed to plan andexecute the process of repair, renovation& modernization. IDBI who is theConsultant-cum-Operating Agency for therevival of the company has been requestedto update the Draft Revival Proposal forsubmission to Board of Industrial &Financial Reconstruction (BIFR). Inaddition, BIFR has been requested to fixupthe date of early hearing. Meanwhilea strategic plan was taken to continuewith existing available machines withrenovation and balancing for productionof sacking and yarn in all three mills. Tostart production the process of repair/renovation of the mills have also beenstarted. The company also decided toinstall new modern machinery on turnkeybasis gradually and to start with Khardahand Kinniso units in West Bengal andRBHM Katihar in Bihar.195

ministry of textilesRevision in the Cost of Scheme onaccount of Cash Loss during theimplementation periodThe Cost of Scheme submitted to theCabinet in March 2010 was based uponthe DRS prepared by IDBI in 2007according to which the implementationperiod was taken as 2 years from 1.4.2008(i.e. upto 31.3.2010). However, the approvalof the cabinet on the said DRS was receivedonly in March 2010, due to which, theimplementation period of the revival schemeneeds to be revised. IDBI, while finalisingthe revised DRS for submission to BIFR,has formulated the DRS by consideringthe revised implementation period as 2years from 1.4.2011 and has reported thefresh provision for supporting the cash lossduring the Implementation of RevivalScheme needs to be provided in the Costof Scheme. Accordingly, A Revised Cost ofScheme of Rs. 1562.98 Crore has beenprepared. The Implementation period isnow kept upto 2012-13, assuming thatBIFR approval would be obtained in 2010-11 and thereafter, a support for 2 years ofimplementation period would be required.Financing of the revised Cost of Schemewould require an additional budgetarysupport (Interest free loan) of Rs 145.45Crore during 2010-11 to 2012-13. TheUnion Cabinet has also approved thisproposal in their meeting dated 25th March2010. The MOT has informed IDBI(operating agency appointed by BIFR forRevival of NJMC) and BIFR regarding thisapproval of Revised cost of scheme of Rs.1562.98 Crores and a composite packagefor VRS of officers. The BIFR is in theprocess of its circulation and approval ofthe Revival Plan of NJMC as prepared byIDBI and cost of scheme approved by theUnion Cabinet on 25th November 2010.Revised draft rehabilitation scheme(DRS) submitted by IDBIThe revised DRS submitted by IDBI toBIFR on 09/09/2010 with modified cost ofthe scheme Rs. 1562.98 Crore is anupdating of earlier DRS as per decision ofthe government. The GOI has alreadyreleased Rs. 1,207.31 Crore in the year2006-07 to 2009-10 and would providefurther interest free loan of Rs. 343.95Crore in the year 2010-11 to 2012-13.Balance was sought from the West BengalGovernment by way of adjustment of loanand interest against compensation of landacquisitioned for Titagarh Thermal PowerPlant. The proposal also consists ofclosure of remaining 3 Mills (National,Union and Alexendra) and generation ofresources for repayment of GOI loanthrough sale of surplus assets of closedmills as well as surplus assets availablein the revived mills.Voluntary Retirement SchemeAs per decision of the Cabinet to reducemanpower in NJMC by offering VRS to allemployees, management has successfullycompleted VRS of all its Workmen andclerical staff and sub-staff. The, VRS ofremaining officers of the company is alsobeing implemented as per compositepackage approved by Cabinet.Reference to Board for Industrial andFinancial Reconstruction (BIFR) andCurrent StatusIn view of continuous cash loss andcomplete erosion of net worth, thecompany was referred to the Board forIndustrial and Financial Reconstruction(BIFR) on 11th August 1992. Thereafter,BIFR declared the Company as sickunder the provisions of Sick IndustrialCompanies (Special Provision) Act, 1985(SICA). Time and again various revivalproposals were submitted to BIFR whichwere turned down due to promoters (GOI)unwillingness. As such BIFR vide its orderdt. 08-07-2004 recommended winding upof the company in terms of Sec 20(i) ofSick Industrial Companies (SpecialProvisions) Act 1985 (SICA) and forwarded196

annual report 2010-11the same to the Calcutta High Court fortaking necessary action as per law. On06-01-2005 Hon'ble Justice Ashim Kr.Banerjee of Calcutta High Court passedthe order for winding up of the companyand directed the official liquidator to takepossession of the assets. On 07-02-2005Hon'ble Division Bench of Calcutta HighCourt granted stay order against theoperation of the above order dt. 06-01-2005. In the meantime NJMC officer'sGuilds and others filed an appeal beforethe Appellate Authority for Industrial &Financial Reconstruction (AAIFR) againstBIFR order dt. 08-07-2004. AAIFR vide itsorder dt. 03-03-2008 set aside theimpugned order dt. 08-07-2004 andremand the matter BIFR with a directionto take further step for the revival of thecompany based on proposal to besubmitted by ministry. Ministry of Textilesfiled petition on 23-04-2008 with theproposal for revival of the company beforeBIFR. BIFR in its hearing dated 5.3.2009directed the company and the Ministry ofTextiles to intimate the Board about thestatus of decision of the Government onthe company's revival proposal within onemonth. Union cabinet approved revivalscheme of the company on 19th March,2010 along and the revised DRS wassubmitted by the Operating Agency IDBIto the BIFR. BIFR in its last hearing on13.09.2010 took a positive view on therevised DRS submitted by IDBI subject toapproval of revised cost of scheme ofRs.1562.98 Crores by Union Cabinet. TheUnion Cabinet has now approved thescheme on 25th November 2010 andBIFR approval is also expected shortly asper their procedure.BIRDS JUTE & EXPORTS LTD. (BJEL)M/s Birds Jute & Exports Ltd. was formedand incorporated on 02.07.1904 underthe name & style of the Lansdowne JuteCompany Limited with the object of takingover as a going concern, the business ofthe manufacturing jute goods in the mill atDakhindari from the Arathoon Jute MillsLimited. The name of the company hasbeen changed to M/s Birds Jute & ExportsLtd. with effect from December 15th 1971and decided to run as a processingfactory for Bleaching, Dyeing & Printing ofJute, Cotton and Blended Fabrics.BJEL which was initially a Subsidiary ofBird & Co. Ltd., following nationalizationof Bird & Co Ltd. on 25th October, 1980,Bharat Process & Mechanical EngineersLtd., (BPMEL) took over the assets ofBird & Co. Ltd. and in process, BPMELbecame a holder of 58.94% of BJEL'sequity shares.By virtue of decision of Govt. of India theequity shares held by BPMEL weretransferred to National Jute ManufacturersCorporation Ltd. (NJMC) with effect from20th November, 1986 and BJEL becamea subsidiary of NJMC Ltd.Reference to BIFRDue to continuous losses and negativenet worth, the company was referred toBIFR. The Company was allottedRegistration No.501/99 with the Hon'bleBIFR.Hon'ble BIFR has appointed IDBI BankLtd. as operating agency for preparationRehabilitation Scheme under section 17(3)of the said Act.Revival Proposal of BJELThe proposal for revival of BJEL preparedby IDBI was considered by BRPSE onApril, 2008 and granted in principleapproval with certain observation.Accordingly IDBI revised the revivalproposal on September, 2009. A draftcabinet was also circulated by the MOTin view of comment raised by the ministryof Finance MOT decided to place theupdated revival scheme to BRPSE for itsrecommendation. Accordingly, BJELresubmitted the revised revival proposal197

ministry of textileswith a total Cost of Scheme of Rs.129.63Crore to be financed mainly from sale ofsurplus land of the BJEL and interest freeGOI loan. The entire GOI loan and holdingcompany loan together with accruedinterest at a normal rate has beenproposed to be refunded from sale ofsurplus land of BJEL. The proposals alsoinclude repair, renovation & modernizationof its existing plant with capital expenditureincluding working capital of Rs. 30.57Crore. The above proposal is forwardedto the ministry for approval of theGovernment.Physical and Financial PerformanceThe production of the company wassuspended for last 8 years due to dismalperformance of the company due to (1)Low capacity utilization (2) Low productivity(3) Wrong selection of product Mix (4)Incidence of High Interest Load andoutdated machinery. In view of above thecompany has given VRS to all its workmenand staffs in the year 2003 and 2004.The Financial performance for the year2009-10 as compared to 2008-09 andestimated for the year 2010-11 is given attable 12.13.NATIONALDEVELOPMENT(NHDC)HANDLOOMCORPORATIONNational Handloom DevelopmentCorporation (NHDC) Ltd., Lucknow wasTable 12.13(Figures in Lakhs)Physical 2008-09 2009-10 2010-11(Estimated)ProductionOwn Fabrics (Mtrs) 0 0 0Contract (Mtrs) 0 0 0FINANCIAL RESULT (Rs.in Lac) (Rs.in Lac) (Rs.in Lac)Sale Value of Production 0 0 0Rent & Other Income 10.31 7.80 8.00Total 10.31 7.80 8.00Raw Material 0 0 0Stores 0.22 0.14 0.12Salary & Wages 25.44 13.12 8.30Other Expenses 98.65 41.48 33.85Interest 666.70 634.49 730.00Depreciation 7.57 6.49 5.50Total 798.58 695.72 777.77Net Loss (before Adjustment) 788.27 687.92 769.77Adjustment 4.63 -1.84 -Net Loss (After Adjustment) 783.64 689.76 769.77Cash Loss 776.07 683.27 764.27Cumulative Net Loss 7172.59 7862.35 8632.12198

annual report 2010-11set up in February, 1983 by theGovernment of India as an autonomousbody under the Companies Act, 1956.The Authorized Capital of NHDC Ltd., isRs.2000 lakh and its Paid up Capital isRs.1900 lac. The main objectives of theCorporation are to:-●●●●carry on the business of all types ofyarn for the benefit of the handloomsector.organize supply of quality dyes andrelated materials needed by thehandloom sector.promote marketing of handloomfabrics.aid, assist and implement the projectsconnected with the production ofhandloom fabrics including taking upmodernization programme,technology for the handloom sector.In pursuance of the above objectives, theCorporation is undertaking the followingactivities:Mill Gate Price Scheme (MGPS)Mill Gate Price Scheme (MGPS) is animportant scheme of the Government ofIndia under which yarn is supplied to thehandloom weavers all over the country atthe Mill Gate Price by the NHDC. Thedetails of yarn supplied under the schemeduring the last three years are given attable 12.14.Under MGPS, NHDC is operating "DepotScheme" of the Government of India,wherein, 715 depots have been madeoperational till December, 2010.The corporation is also supplying qualitydyes and chemicals to the handloomsector at competitive prices under thescheme. The details of supplies madeduring last 3 years by the NHDC underthe scheme are given at table 12.15.In order to promote marketing of handloomfabrics, the corporation organizes specialexhibitions like Silk Fabs & Wool Fabs.The number of exhibitions, participatingTable 12.14Year Quantity Value(in lac kg.)(Rs. in crore)2007-08 678.210 563.052008-09 855.12 793.782009-10 1081.21 987.322010-11 (upto Feb., 2011) 981.20 1043.60Table 12.15YearDyes & ChemicalsQuantityValue(in lac kg.)(Rs. in lac)2007-08 21.48 1897.782008-09 39.13 2796.562009-10 53.23 3107.042010-11 (till Feb., 2011) 31.71 2270.10199

ministry of textilesagencies and total sales generated in theexhibitions during the last 3 years aregiven at table 12.16.Besides corporation has set up 8marketing complexes at Jaipur, Kolkata,Ahmedabad, Hyderabad, Kanpur, Indore,Navi Mumbai and New Delhi, where thehandloom agencies from different partsof the country display and sell theirhandloom products to the discernedcustomers.Corporation also undertakes the followingprogrammes to disseminate the latesttechnologies in the handloom sector andalso about the schemes beingimplemented by the Government of Indiafor the development of the handloomsector and for the welfare of the weavers:-a) Appropriate Technology Exhibitions(ATEs)b) Quality Dyeing Training Programme.c) Sensitization programme on schemeof Office of DC (Handlooms).The details like turnover, profit dividendissued rating & MOUof the Corporationduring the last three years are as givenat table 12.17.COTTON CORPORATION OF INDIA(CCI)The role assigned to the CCI under theTextile Policy of June 1985 was:1. To under take price supportoperations whenever the marketprices of kapas touch the supportprices announced by the governmentof India without any quantitativelimit.2. To undertake commercial operationsonly at CCI 's own risk; and3. To purchase cotton to fulfill exportquotas given to CCI.The above role of the CCI continuedunder the New Textile Policy of 2000.However, the last stated function no longeris relevant as export of cotton is now freeand he Government is releasing no quotas.Nevertheless CCI purchases cotton evennow to under take export of cotton.Table 12.16Year No. of events No. of participating Total saleagencies(Rs. in crore)2007-08 9 665 25.232008-09 12 994 34.432009-10 15 1123 44.89Table 12.17Turnover, Profit and Dividend: National Handloom Development Corporation(Rs. in lac)Year Turnover Net Profit Dividend MOU rating2007-08 58867.17 104.52 22.00 Very Good2008-09 82948.34 393.84 80.00 Excellent2009-10 102078.03 303.51 – Excellent200

annual report 2010-11Besides the above role CCI has alsobeen designated as the nodal agency forimplementation of Mini Missions III and IVof the Technology Mission on Cotton forimprovement and Development of MarketYards and Modernization of Ginning andPressing factories and thereby improvingthe quality of cotton by reducingcontamination of cotton and ensuring betterprices to the growers.In addition to the above the Ministry ofAgriculture has also nominated the CCIas the implementing agency forundertaking Front Line Demonstrationsunder Mini Mission II of the TMC.Under its developmental activities the CCIhas been implementing the ContractFarming Project in all the cotton growingStates.201

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annual report 2010-11CHAPTER XIIITEXTILE RESEARCHASSOCIATION (TRAs)203

204ministry of textiles

annual report 2010-11CHAPTER XIIITEXTILE RESEARCH ASSOCIATION (TRAs)Ministry of Textiles has beenproviding financial support to theTextile Research Associationsengaged in the work of research anddevelopment. The budget allocation forthe year 2010-11 for the research projectsis Rs. 10 crores.COTTON TEXTILE RESEARCHASSOCIATION (TRAS)There are eight Textile ResearchAssociations (TRAs) receiving financialsupport from the Ministry of Textiles, ofthese the following are the Cotton TextileResearch Associations (CTRAs):i. Ahmedabad Textile Industry'sResearch Association (ATIRA),Ahmedabadii. Bombay Textile Research Association(BTRA), Mumbai.iii.iv.South India Textile ResearchAssociation (SITRA), CoimbatoreNorthern India Textile ResearchAssociation (NITRA), Ghaziabad.Like other TRAs, these TRAs are textileindustry promoted private bodies, set upand promoted by the textile industry of therespective region for carrying out researchand providing them various servicesincluding consultancy, testing, training andresearch etc. Their main sources ofearnings include government grants,subscriptions from member-mills, fees fromthe services etc. Since these haverenowned industrialists as their electedChairmen in overall in-charge of theirfunctions, Government provides fullautonomy in their functioning.AHMEDABAD TEXTILE INDUSTRY'SRESEARCH ASSOCIATION (ATIRA)Ahmedabad Textile Industry's ResearchAssociation (ATIRA) was established in1947 by the textile industry of Ahmedabad.It has a membership of 100 textile andallied industrial units all over India. Themajor activities cover all aspects fromFiber to finished fabrics and cater to theneeds of the textile and allied industry inthe organized and decentralized sectorboth to its member and non-member unitsacross the country and abroad.Testing ServicesTesting is one of the major services ofATIRA to the industry. It spans fromphysical and chemical testing of textilematerial of all kinds to testing of Water,Waste Water as well as Flue Gas, ProcessGas, Solid Waste including EnvironmentAudit Samples, Ambient Air Samples,Noise Samples, machine accessories, andcalibration.The testing services are widely utilized bytextile and allied industries across thecountry and across the textile sectors andthe number of samples for testing are onthe ever increasing trend.TrainingDuring 2009-10, ATIRA has conductedseveral training programmes:-Regular Training Programme1. Ring frame Operative2. Shuttleless Weavers (Air Jet Looms)205

ministry of textiles3. Shuttleless Weavers (Rapier Looms)4. Fresh Weavers5. Computer-Aided Designing forStripes, Checks and Dobby WovenFabrics6. Computer-Aided Designing for PrintedFabric7. Computer-Aided Designing forJacquared Woven Fabrics8. Computerized Pattern and MakerMaking for Ready-made GarmentManufacturing9. Basics of Textile Manufacturing andDesgning10. Computerized Fashion Design andPattern and Marker MakingIn-House Training Programmes1. Ginning Pressing Factories underTMC Scheme on Modern GinningSystem2. Positive Attitude and BehaviourChangeRefresher Training Programme forPowerloom Industry1. WeaversTraining Programme conducted byPowerloom Service Centre, Dholka1. Short-term Training Programme forWeaversTraining Programmes conducted byATIRA Regional Centre, Indore1. Basics of Spinning, Weaving andChemical Processing2. Lectra System, Fashion Studio,Texcad SoftwaresPROJECTSProjects Sponsored by Ministry ofTextiles1. Enhanced oil recovery from cottonseed using PEF technology.2. Indigenous development ofautomatic multilayer fabric cuttingmachine.3. Spinning of fire retardant fibre blendson cotton system.4. To evolve construction related designas well as environmental designparameters for both woven and nonwovensGeo-synthetics.THE BOMBAY TEXTILE RESEARCHASSOCIATION (BTRA)During 2009-10, research anddevelopment activities at BTRA weredirected towards developing cost effectivetechniques, product innovation, improvingproduct (yarn/fabric)quality, ensuringutilities (energy and water) conservation,improving productivity and machinemaintenance. BTRA engaged in thefollowing research projects:-1. Eco-friendly and user friendlymachines for hank processing cottageindustry2. Characterization of Pashmina hairfibres and select wool fibres used asblends in handicraft productsproduced in J&K State3. Plasma Technology ;for TextileProcessing4. Studies on Fire Retardant Finishingof Apparel and Home Textilestowards meeting the ExportRequirement5. Studies on Textiles Doped withConducting Polymers6. Nano-technological Studies onDevelopment of High PerformancePolyster and Polypropylene Fibres7. Development of Method for Testingand Analysing the FormaldehydeContent in Textile Auxiliaries206

annual report 2010-11Programmes conducted and imparted byBTRA are given at table 13.1.Testing Services provided by the BTRA isgiven at table 13.2.Testing DetailsTable 13.2SampleTestedFibre properties 15416Yarn Properties 1227Fabric Properties andFabric analysis 3697Technical Textiles testing 1317Chemical Testing 2015Microbiology/Biotechnologytesting 566Special Testing 1453Total 25691BTRA ran three Powerloom ServiceCentres (PSCs) at Ichalkaranji, Solapurand Madhavnagar-Vita to improve thequality, operating efficiency andproductivity of powerloom clusters.BTRA participated in the followingexhibitions:1. Mini-exhibition organized during 50thJoint Technological Conference, heldat ATIRA, Ahmedabad on 4th and5th March 2009.2. Investor-Investigator Meet cumExhibition on `Development of TextileInstrumentation and Technology',organized by CSIR, New Delhi heldat SITRA, Coimbatore on 5thDecember 2009.THE SOUTH INDIA TEXTILE RESEARCHASSOCIATION (SITRA)During 2009-10, SITRA carried out 27research projects, of which 11 completed.The total membership of SITRA stands at237 comprising of 280 units.SITRA has been regularly conductingdifferent types of energy audits in textilemills and is recognized as one of theapproved and authorized Energy Auditorsfor conducting Energy Audit in HighTension Industries by various StateTable 13.1SubjectPeriodTesting of technical textiles 30.03.09 - 10.4.09Dyes, chemicals and auxiliaries with special 30.03.09 - 04.04.09reference to chemical processing 20.04.09 - 26.04.09of textiles 10.05.09 - 23.05.09Home Textiles 22.12.09 - 23.12.09Awareness on ISO 9000:2008 05.03.2010ISO 17025:2005 standards 11.03.2010 - 12.03.10Training on eleven test methods as per Bureau of 20.04.09 - 26.04.09Indian Standards, covering physical testing, 04.05.09 - 09.05.09chemical testing and flammability testingDyeing and colour fastness testing 31.08.09 - 06.09.09Physical testing and chemical testing 12.09.09 - 19.09.09Dye identification 10.10.09 - 12.10.09Physical testing of coated fabrics 11.03.10 - 12.03.10207

ministry of textilesElectricity Boards (SEBs). During the year,SITRA conducted 10 energy audits intextile mills.The range of services offered by SITRAcontinued to be effectively utilized by theMills. The services availed by the millsduring 2009-10 are given at table 13.3.Type of serviceTable 13.3No. ofunitsFibre, yarn and fabric testing 273Consultancy services 71CPQ study 145Training: executives, supervisorsand operatives 216Accessories testing &instrument calibration 122Various service of Computer Aided TextileDesign Centre (CAD) utilized by thedecentralized weaving sector, during 2009-10 is given at table 13.4.Type of serviceTable 13.4No. ofservicesConsultations 111Designs development 130Graph printouts 130Card punching 1107Training programmes 9(persons trained) (17)At present, there are 7 Powerloom ServiceCentres (PSCs) located at Karur,Komarapalayam, Palladam, Rajapalayam,Salem, Somanur and Tiruchengode.Efforts taken by SITRA PSCs to implementthe welfare schemes, under the GroupInsurance schemes of Government ofIndia have benefited about 22500workersengaged in weaving, twisting, warpingand sizing units. Various services renderedby these PSCs during the year 2009-10are given at table 13.5.Type of serviceTable 13.5No. ofservicesConsultations 484New designs development 411Yarn/cloth samples testing 22083Training programmes 65No. of persons trained 770Liaison/request visits 2724Number of looms inspected 23865Number of looms works/repair attended 2Number of special works 132Jacquard Card Punching 3SITRA Textile testing and service centre,Tirupur has tested 709 samples with asmany as 1043 tests. Various servicesoffered by Knitting Division during 2009-10 are given given at table 13.6.Type of serviceTable 13.6No. ofservicesTesting 572Defect analysis 951Samples knitting onFAK machine 1196Knitting performance of yarn 337Consultation 272Fabric analysis 171Training programmes 2(persons trained) (54)During the period 2009-10, 122 millsavailed the service of SITRA to receivecalibration certificates for 389 textile testingand quality control instruments.International training is a regular feature208

annual report 2010-11of SITRA's training activity since 1974.The participants taking part in suchprogrammes are sponsored by the Ministryof External Affairs Government of Indiaunder Indian Technical and Economic CooperationPlan (ITEC) and Colombo Plan.The 57th batch of the programme washeld during October - December 2009.26 participants from 14 countries haveattended the two months trainingprogramme.During 2009-10, more than 1550technicians, over 4500 students and 100outside specialists visited SITRA libraryfor utilizing its rich collection of books andjournals. 119 books have been added tothe existing bank of more than 24200books. SITRA has also been receiving225 journals on varied aspects on textiles.SITRA has brought out 21 publicationsduring the year which included 6 research/inter-mill study reports and 6 Focus.SITRA scientists published 18 papers invarious technical journals.NORTHERN INDIA TEXTILE RESEARCHASSOCIATION (NITRA)During 2009-10, NITRA worked onfourteen research projects. Out of whichfive have been successfully completedwhilst work is in progress for rest of thenine projects. NITRA provided assistanceto the industry in the form of quality andcost effective technical consultancy forresolving their operational problems. Basicareas of expertise where NITRA offeredconsultancy solutions were audit, feasibilitystudy, system certification, infrastructureset up, valuation, inspection and product/process & design development. Technicalconsultancy was another important aspectof NITRA's multifarious activities.NITRA offered a wide range of testingfacilities for fibre, yarn, fabrics, dyes,chemicals and effluent in its well equippedNABL accredited five laboratories. Thedetails of the activities carried out duringthe year are given at table 13.7.NITRA undertook the following training foroverseas participant:1. Program on Computer Aided TextileDesign for Textile & Apparel Institute(TAI) faculty, Ethiopia.2. Program on Computer Aided ApparelDesign for Textile & Apparel Institute(TAI) faculty, Ethiopia.3. Program on Apparel Merchandisingand Export-Imporgt Management forTAI Faculty, Ethiopia4. Program on Project Planning &Evaluation for TAI Faculty, Ethiopia5. Program on ETP Design, Operation,Maintenance and PerformanceEvaluation & Trouble Shooting forTAI Faculty, Ethiopia.Job-oriented Professional Programsconducted by NITRA during 2009-10 aregiven at table 13.8.Table 13.7S. Name of Laboratory No. of samplesNo.analyzed1. Environmental laboratory 1002. Eco laboratory 1683. Chemical Quality Evaluation laboratory 13804. Polymer & Technical Textiles laboratory 6625. Physical Quality Evaluation laboratory 2518209

ministry of textilesTable 13.8S. Programme Title No. ofNo.Trainees1. Textile Technology & Management (TTM) 112. Garment Technology & Management (GTM) 313. Apparel Design & Quality Control (ADQC) 314. Textile Design & Quality Control (TDQC) 105. Apparel Merchandising & Export-Import Management (AMEIM) 146. Garment Dyeing, Drycleaning & Finishing Technology (GDDFT) 127. Apparel Machine Engineering & Maintenance (AMEM) 078. Textile Technology & Management (TTM-DLP)9. Garment Technology & Management (GTM-DLP)10. Apparel Merchandising & Export-Import Management (AMEIM-DLP) 4211. Quality Evaluation of Textiles & Garments (QETG)NITRA is accredited under DOEACC scheme for 'O' level computer course.NITRA participated in Garment TechnologyExpo - 2010 (8-11 January 2010) at NewDelhi in order to create awareness aboutNITRA's R&D activities, technicalconsultancy, quality evaluation, manpowertraining services, and technical publicationsfor the textile and apparel industry.During the year, NITRA added 51 booksand 3 complementary books in its library.NITRA subscribed 21 foreign periodicalsand 42 Indian periodicals in addition to 35complementary Indian periodicals. Thelibrary generated revenue of Rs. 1.55 lakhby sale of NITRA publications.Out of 44 Power Loom Service Centres(PLSCs) established by Ministry ofTextiles, 7 PLSCs were under theadministrative control of NITRA. All sevencentres were having testing facilitiescapable to meet basic requirements of thedecentralized power loom sector in normalcourse. There are three Computer AidedDesign (CAD) centres at Panipat, Bhilwaraand Ghaziabad. In addition to the above,one more CAD centre was functioning atPLSC, Tanda with financial support ofGovernment of Uttar Pradesh. PLSCswere also involved in insuring power loomworkers under Group Insurance Scheme(previously known as Janshree BimaYojana) towards their social security.During the year 2009-10 a total of 8726powerloom workers were insured throughPLSCs.Other TRAsMAN-MADE TEXTILES RESEARCHASSOCIATION (MANTRA), SURATThe Man-Made Textiles ResearchAssociation (MANTRA), Surat is the onlyTextile Research Association serving theman-made textile industry (decentralizedsmall scale) and is registered under theSocieties Act of Gujarat. MANTRA hasbeen in the fore-front in the R&D activitiesrelated to man-made fibre textiles.The main objectives of the Association isto carry out research and developmentand to render other consultancy servicesto the local, decentralized textile weaving,texturing and processing industry on210

annual report 2010-11various aspects of the textile technologywith a view to improving the quality offabrics, reducing cost and bringing aboutbetter utilization of raw materials. Theprojects undertaken were of considerableimportance and the studies made by theAssociation have substantially helped toimprove the quality and productivity of thetextile industry.During the period 2010-11, MANTRA hascompleted the following sponsored R&Dprojects:-●●●Development of a commercial qualitygreenhouse shade cloth for low costpoly-house for controlled cropproduction (Sanctioned in 2008).Application of suitable cost effectivetechnology for reuse of water jeteffluent (Sanctioned in 2008).Smart fabric/garment products withsmart colours for security labeling(Sanctioned in 2008).During the period under review, followingnew projects were also sanctioned by theMinistry of Textiles, Government of India.●●●●●●Polyactic Acid Fibres in technicaltextile applications for packaging anddisposable food container products.Development of cost effective filterfabrics suitable for bag filters.Development of enzymatic techniquefor weight reduction of polyester.Development of fabrics made fromPTT yarn and to optimize processingparameters to use in apparel sectorincluding cost effectiveness.Development of eco-friendly recyclable/bio-degradablevalue addedtechnical textiles from banana yarns.Development of multi-layer fabricsfor sportswear.●●●●Application of nano technology fordelustering of bright polyester fabricvarieties.Development of Banana fabricsuitable for extreme cold weathercondition by Plasma Technology.Development of laminated productsfor inflatables.Development of coagulation treatmentusing modified bentonite and recycleand reuse of effluents in textileprocessing.MANTRA has developed a stain removerproduct based on the outcome of 'CTCproject' completed recently. MANTRA isactively considering to commercialize thisproduct through suitable agency. In thisconnection MANTRA has also approachedGTZ-PROKLIMA, the implementingagency appointed by Govt. of India forphasing out CTC from textile and metalsectors. They have asked for samples ofMANTRA product. The agency isevaluating the product developed byMANTRA. They will publish the detail ofMANTRA product on their website afterrequired testing, etc. MANTRA has alsodeveloped a cost effective technology forreuse of water-jet effluent and to reduceenvironmental pollution. The technologyis specially suitable for small scaleweavers.During the F.Y.2010-11, 145 samplesfrom industry were tested in EcoLaboratory till 31.12.10 and about 165samples will be tested during F.Y. 2010-11. During the financial year 2010-11,MANTRA continued to perform well asEnvironmental Auditor for Schedule-Iindustries. For the year 2010 (January toDecember), MANTRA has conductedEnvironmental Audit of 10 units generatedincome to the extent of Rs.4.50 lakhs. Inthe Analytical Instruments laboratory,which has a number of sophisticatedinstruments, 75 samples were tested till211

ministry of textiles31.12.10, majority of which included colourassessment parameters on ComputerColour Matching (CCM), Thermal analyzerand Hydrostatic head tester and about125 samples will be tested during F.Y.2010-11.Total number of samples tested in thePhysical & Chemical Lab during F.Y.2010-11 were 3667 (excluding audits) upto 31.12.10. The Physical and ChemicalTesting Laboratories continued to performwell in the year 2010-11 also and about5,000 samples will be tested during F.Y.2010-11.MANTRA is enlisted consultant by GujaratEnergy Development Agency (GEDA).MANTRA is authorized as Energy Auditorby Chief Electrical Inspector, Gujarat toconduct mandatory energy audit of allindustrial units having contract demandmore than 200 KVA. During F.Y.2010-11,MANTRA conducted Energy Audit of 27mandatory units till 31.12.10 and about 35units will be audited during 2010-11.Two Powerloom Service Centres (PSCs),one at Pandesara and the other at Sachin,are functioning under the management ofMANTRA. Both centres are extendingtesting and consultancy services to theweaving industries located in theirrespective clusters. The regular activity ofthese centres is to impart training to theweavers. During 2010-11, training to 800weavers and designers covering 4370mandays was imparted in both PSCs till31.12.10. About 1200 weavers anddesigners will be trained in F.Y.2010-11covering 6030 mandays.MANTRA's dissemination of informationactivities area found to be quite useful tothe industry. MANTRA has participated inVyapar 2010 exhibition conducted bySouth Gujarat Chamber of Commerceand Industry at Surat. MANTRA wasprovided a stall by SGCCI where activitiesof MANTRA was displayed. A specialcorner was allocated for technical textilewhere visitors took keen interest.MANTRA has took part in 'Vibrant GujaratMega Exhibition 2011 organized atMahatma Mandir, Gandhinagar, organizedby Government of Gujarat. A stall wasprovideto MANTRA where activities ofMANTRA was highlighted. Due importancewas given to the R&D projects approvedby Government of Gujarat including 'Centreof Excellence in Technical Textiles' and'Centre of Excellence in Agrotextiles'sanctioned by Ministry of Textiles,Government of India. 'SASCMA fabricsample catalogue' prepared by MANTRAwas also put on display. Visitors tookinterest in this catalogue exhibiting 115fabric varieties of SUrat industry. A cornerwas allocated to Surat Technical Educationand Research Society (STERS) byMANTRA. Technical textile samples wovenfrom Surat Industry and coatedelsewherewere displayed.During the period under review, MANTRAand office of the Textile Commissioner,Indore jointly organized a conference ontechnical textiles at Hotel Sayaji, Indore.Another seminar on Technical textileswas organized by MANTRA and SouthGujarat Chambers of Commerce andIndustries (SGCCI) on 23.12.2010 at theHotel Gateway-The Taj, Surat. About 195delegates participated.During the financial year under review,MANTRA also organized `WaterConservation Awareness Programme' fordyeing machine operators in three processhouses. In each programme, about 200workers participated. The programmeincluded 1½ hours Powerpointpresentation showing importance of waterconservation and simple tips to achievethe same.Pilot plant facilities for the production ofcontinuous synthetic filament yarn,available at MANTRA, is unique and one212

annual report 2010-11of its kind. Its existing extrusion, drawtexturing and air jet texturing facilities arebeing availed not only by the nearbyindustry, but also by the industries as faras from Bangalore, Chennai, etc.In the wake of globalization of trade, thedecentralized textile industry of SouthGujarat is facing stringent marketcompetition. In order to serve the aboveindustry in a better way, TRA like MANTRAis ready to play a supporting and facilitatingrole.With great pleasure we would like tomention that MANTRA has beendesignated as Centre of Excellence inTechnical Textiles by the Government ofGujarat and Centre of Excellence inAgrotech by Government of India alongwith Navsari Agricultural University (NAU),Navsari, and IIT Delhi as knowledgepartner. These Centres of Excellenceswill be providing state-of-the-art facilitiesfor Testing, R&D, quality appraisal, productdevelopment (pilot plant) & HRD and onewindow information centre in technicaltextiles in non-woven, knitted and coated/laminating and Agrotech productsdevelopment. This will help parallel growthof textile as well as technical textileindustry in India in general and SouthGujarat in particular.(A)Centre of Excellence in TechnicalTextiles (Government of Gujarat)1. Pilot Plant Facilities Set-up atMANTRA Under COE in TechnicalTextiles will be as below:-(i)Cavitec Hot Melt coating &laminating Pilot Plant (CAVIMELTTSM) from M/s Santex, SwitzerlandHot melt technology offered by M/s Santexis eco-friendly and non-solvent based andenergy saving as no drying and curingare required. With the help of thistechnology new generation polymers andco-polymers of high value products, viz.,artificial leather, tri-layer and multi-layerlamination, etc., can be developed. Pilotplant machine is having very high precisecontrol on parameters. The coated andlaminated products suitable for spaceapplications, automotive, home tech,industrial filter, membranes, etc., can beproduced on this line.(ii)Multi-purpose coating & laminatingm/c (MULTILABO 900) (Roller width900 mm and working width 750mm) from M/s Matex, ItalyThe machine is versatile and can carryout solvent, aqueous, hot melt coatingand wet and dry lamination with viderange of coating chemicals, viz., PVC,Polyurethane, Acrylates, Silicones, etc.Woven, knitted and non-woven naturaland synthetic fabrics can be coated andlaminated. The machine has followingfacilities:-i) Knife over roll/Knife over air.ii) Impregnation.iii) Lacquering/printing, embossing.iv) Lamination, i.e., wet and drylamination.v) Hot melt.vi) Foam generator unit.vii) PUR drum melter.viii) IR heating facility at front & rear.ix) Smoothing calendar or embossingunit.x) Curing zone.These machineries are alreadycommissioned at MANTRA. PVC,polyurethane, acrylates coated andlaminated products, viz., artificial leather,shoes cover, filter fabrics, protectivefabrics, agrotech products, viz., soft coversfabrics, windshields, shade nets, cropcover and soft luggages, garments,213

ministry of textilesumbrella winchers, etc. were developedby this technology at MANTRA hasdeveloped samples as well.2. Following testing facilities havebeen commenced and arefunctioning under COE inTechnical Textiles at MANTRA(Table 13.9)Above facilities will be accredited bynational and international bodies.(B) Centre of Excellence inAgrotextiles (Ministry of Textiles)Testing Equipments that will be set-upunder COE in Agrotextiles at MANTRAare as follows (Table 13.10)For the above testing equipments,quotations have been submitted toSASMIRA and purchase order has beensent by SASMIRA for following equipmentsto various suppliers and manufacturers:-a) CBR puncture test.b) Hydrodynamic sieve tester.c) Water vapour transmission tester.d) Forced air laboratory oven.e) Shear tester.f) Water permeability (In plane).Table 13.9EquipmentPurpose1 Coverstock Wetback Measures re-wetting properties of non-woven coverstock.2 Water permeability Measures vertical permeability to liquid of agrotextilesTester (GETE Flow)without load.3 Lister A known volume of test liquid is discharged to thesurface of the sample at a prescribed rate. The timetaken for all the liquid to penetrate is measured.4 Air Permeability Tester To determine air permeability at upto 2500 pascalpressure.5 Flammability Tester Measures vertical and incline flammability ofsubstrates.6 Liquid Absortive Test Kit - Sample is immersed in water. Measures time requiredLAT 001for complete wetting.7 Liquid Absorbency Capacity Measures amount of liquid that specimen can holdTest Kit-LAC 001after period of immersion and drainage.8 Liquid Wicking Rate Test Kit - The test sample is suspended in test liquid and itLWR 001measures rate of absorption for a set time period.9 Wira Run-off Test Kit-RTR 001 Measures run off character of non-wovens.10 Tog Tester Measures thermal resistance (Tog value).11 Universal Strength Tester Measures tensile properties (tenacity, elongation,(5 Ton Capacity) etc.) of geo- textiles, fabrics and high tenacity yarns.12 Spray Rating Tester - Determines the resistance of fabric to surface wettingSPT 001by water.13 Shower Tester - SHT 001 Measures resistance of textiles to water absorptionand penetration.214

annual report 2010-11Table 13.10EquipmentPurpose1 Vibrodyne Measures denier.2 Hydrodynamic Sieve Tester For particle size analysis.3 Film Thickness Tester Measures thickness of coated films.4 Water Permeability (In Plane) To measure water permeability horizontal (In plane)without load through fabric sample.5 Shear Tester For frictional properties measurement.6 Forced Air Laboratory Oven For moist heat hydrolysis analysis.7 Water Vapour Transmission Measures water vapour permeability throughTesteragrotextiles.8 Cold Crack Tester Measures storage stability upto minus 40°C.9 Weatherometer To measure weathering resistance and storage andlife of material.10 CBR Puncture Test Measures resistance to puncture of soil covers.11 Wind Blocking Percentage To measure wind blocking capacity of wind shields,shade nets and crop covers.12 Agrotextile Light Shading Measures percentage of light transmitted throughPercentageagrotextiles.13 Pullout Resistance in Soil Measures friction between soil & fabric.14 Apparent Opening Size of Evaluating porosity of soil covers and landscapingGeotextiletextiles.15 Taber Abrasion Tester For measuring abrasion resistance.16 UPF Tester To measure ultraviolet transmission levels throughfabrics.17 Apparatus for Co-efficient of Measures friction between soil & fabric.Friction Between Soil & Fabricg) Film thickness tester.h) QUV spray.i) Vibrodyne.j) Taber abrasion tester.Out of this, following testing equipmentshave already been delivered at MANTRA.Surat:-a) Vibrodyne.b) Taber abrasion tester.c) Forced air laboratory oven.d) QUV spray.e) Water vapour transmission tester.f) Shear tester.Above facilities will be accredited bynational and international bodies.Testing equipments have been installedand commissioned and various sampleshave been tested consistent with relevantstandard test method.Regarding HRD programme, MANTRA215

ministry of textileshas conducted classes on technical textilesat STERS. Several seminars andworkshops were conducted by MANTRA.The staff members from MANTRA haveattended various seminars, workshops,trade fairs, etc., to gather knowledgeabout technical textiles.For knowledge know-how centre,MANTRA has purchased several bookson technical textiles, samples of technicaltextiles and gathered information ontechnical textiles from the internet.MANTRA has also become a member ofINDA, USA. Lastly, MANTRA has built-upa separate website on technical textilesfor knowledge sharing activities.Information Centre and Training Centrehas been established with books, journalsand industry statistics. This centre will behaving computerized set-up and linkedwith universities, research bodies andnational and international associations.Sample bank facilities will be available forInformation Centre. Full-fledged trainingcentre will be set-up under the umbrellaof COE for training of skilled workers,middle and top level managers andentrepreneurs.THE SYNTHETIC AND ART SILK MILL'SRESEARCH ASSOCIATION WORLI,MUMBAI (SASMIRA)The Synthetic & Art Silk Mills' ResearchAssociation (SASMIRA) is a co-operativeventure set up by the man-made textileindustry of India after independence as amulti-functional institute to serve itsscientific and technological needs.SASMIRA is engaged in multifariousactivities with the prime objective ofrendering scientific & technical assistanceto the textile industry, thereby assisting itsgrowth and development.CENTRE OF EXCELLENCE (COE)SASMIRA's Centre of Excellence forAgrotextile has been working in line withits vision and mission. The followingactivities have been executed by theCentre:1. Conducting Awareness programmesin various agricultural hubs of thecountry. Three programmes had beenconducted as excerpted in theseminar conducted section.2. Establishing facilities for testing,information sourcing, training anddemonstration for the centre.● SASMIRA website has beenredesigned and made interactive withupdated information on Agrotextiles●●Video Conferencing system fortraining has been installed.Orders have been placed forprocurement of DemonstrationMachinery, viz.,■ Nonwoven needle punchingmachine■ Raschel warp knitting machine■ Rapier weaving machine● International Accreditation ofSASMIRA laboratory from AmericanAssociation for Accreditation ofLaboratory (A2LA) pursued.●●Latest Test Standards from differentNational and International bodies likeIS, BS, EN, ISO, JS have beenprocured, along with books andperiodicals related to technicaltextiles.The following testing equipment havebeen installed (Table 13.11).TESTING SERVICESAn important activity of SASMIRA is testingand technical services. SASMIRA hasfully equipped laboratories to carry outtesting, evaluation and investigation of avariety of textile and allied materials, withspecialised services for technical textiles.SASMIRA's testing services are accredited216

annual report 2010-11Table 13.11Equipment NameEquipment NameWater Permeability / permittivity - cross plane PH MeterHigh pressure air-permeability testerAnalytical BalanceTension creepWater Bath ShakerCBR puncture test with accessoriesMuffle FurnaceWind blocking percentageWascatorLux MeterSublimation Fastness TesterThermal Oxidation Test (Oven test, -400C to1000C) Vertical Padding MangleThermal insulation tester - TIV High Temperature High Pressure -GN Dyeing MachineDamage due to FlexingInfra Color Dyeing MachineComputer Colour Matching SystemLab Steamer(reflective & transmission)Fourier Transformation Infra Red Spectrophotometer Drying, Curing & Setting ChamberPolarised MicroscopeHigh speed stirrerDifferential Scanning Calorimeter &CentrifugeThermal Gravimetric AnalyserTorsion BalanceWeatherometerby the National Accreditation Board to theTesting and Calibration Laboratory (NABL).Testing is as per ISO/IEC 17025 norms.The certification made a positive impacton the testing and technical services andhas resulted in better interaction with theindustry. The laboratory also givestechnical service and consultancy to theindustry to overcome problems arisingduring production and usage of variousproducts.EDUCATIONAL ACTIVITIESSASMIRA imparts manpower trainingthrough technical education offeringvarious diploma and certificate courses.The job-oriented professional courses inEmbroidery technology, fashiontechnology, merchandising, export importmanagement, Textile designing, etc., wereconducted and have evolved goodresponse from the student community.SASMIRA also runs various postgraduatediploma level courses.SASMIRA's Institute of ManagementStudies and Research (SIMSR) is newlyconstituted organ with sole purpose ofstarting management programmesapproved by Maharastra State Board ofTechnical Education (MSBTE) and AllIndia Council for Technical Education(AICTE). Two post graduate courses havestarted viz. Advance Diploma in BusinessAdministration and Advance Diploma inExecutive Business Studies.SEMINARS AND CONFERENCESSASMIRA has been continuously servingthe textile industry and entrepreneurs tocreate awareness in technical textiles byway of conducting seminars andworkshops at the national and internationallevels. As a Center of Excellence for217

ministry of textilesAgrotextiles, several awarenessprogrammes had been conducted invarious agricultural hubs of the countryduring the year; the list of the sameduring the current period is as below:●●●●Conducted a Half Day "AwarenessProgramme on Testing and TechnicalService and other R&D activities ofSASMIRA" at Tarapur IndustrialManufacturers' Association (TIMA)Auditorium, Tarapur on 25th June2009. SASMIRA's various activitiesand facilities were presented in theseminar.One day Seminar on ProphylacticAgrotextiles-Advantages & Futureprospects, at NAU Seminar Hall,NAU, Navsari dated 25th Aug 2009.This Seminar was jointly organisedby the Office of the TextileCommissioner and SASMIRA inassociation with NAU and MANTRA.Shri A.B. Joshi, TextileCommissioner, Office of the TextileCommissioner, Govt. of Indiainaugurated the seminar. Around 200farmers attended the seminar apartfrom the manufacturers, suppliers,academicians from Agrotextilessectors.Seminar on 'Protective Agrotextiles:Advantages and Future Prospects'dated 5th March 2010 at TrainingHall, Krishi Vigyan Kendra, Main DryFarming Station, JAU, Targhadia,Rajkot, Gujarat. This Seminar wasjointly organised by the Office of theTextile Commissioner and SASMIRAin association with Krishi VigyanKendra, Targadhia and JunagadhAgricultural University, Junagadh Theawareness programme was attendedby the farmers, manufactures,suppliers, academicians, from theAgrotextiles sectors.Seminar on Protective Agrotextilesdated 22nd March 2010 at HotelFortune Murali Park, Vijayawada,Andhra Pradesh. This Seminar wasjointly organised by the Office of theTextile Commissioner and SASMIRAin association with Jt. Director ofAgriculture, Vijayawada and Regionaloffice of Textile Commissioner,Bangalore. Smt. Panabaka Lakshmi,Honourable Minister of State (Textile),Govt. of India inaugurated theseminar. This seminar was aimed ascreating awareness programmeamongst the farmer level.RESEARCH & DEVELOPMENTSASMIRA is engaged in various researchand development projects in man-madetextiles for apparel, industrial and defenceapplications to meet the changing needsof the man-made textile industry. Currently,SASMIRA is engaged in theimplementation of thirteen projectssponsored by the Ministry of Textiles:1) Indigenous manufacturing ofwoven geotextiles for groundimprovement using vertical draintechniqueThe project envisaged the development ofsuitable geotextile for ground improvementwhich will be helpful for speedy soilconsolidation of marshy land to make itready for constructional purposes. Thus,two non-woven and one woven tubularstructure with varying parameters weredeveloped. Developed structure has twocomponents, core corrugatedpolypropylene sheet enveloped aroundpolypropylene/Polyester filter fabric in theweight range of 100-130 gm/sq.m. Thesestructures have been evaluated at thelaboratory scale trials and found at parwith the requirements for these productsto be useful for large scale actual fieldtrails. To asses the true performance ofthe developed vertical drains under theactual field conditions, field trial is beingplanned in association with City and218

annual report 2010-11Industrial Development Corporation ofMaharastra Ltd. (CIDCO), Navi Mumbai.2) Low cost Upgradation of firstgeneration imported shuttlelesslooms and indigenous shuttleslooms for decentralised sector forenhanced productivity and qualityThe aim of the project was to develop afew simple mechanisms, which can beretrofitted and synchronised with the basicfunctioning of the first generationshuttleless looms. As per the aim of theproject the developed systems areElectronic Lubrication system, Electronicweft stop motion, Pick-Finding System,Auto-shed levelling system and ReedInclination system. These systems havebeen successfully installed on the loomand field trails are going on. All thesystems developed will increase theproductivity and quality of the fabricproduction. The development will resultinto cost reduction and better profitabilityas well as versatility of the machineeliminating its limitations.3) Development of Speciality Fabricfor Water conservation and SoilErosion Control used inHorticulture ApplicationControl of soil microclimate for crops toget the optimum yield from the crop.Textile structures can be used as groundcovers to help water conservation, controlsoil erosion as well as suppress weedgrowth. Traditionally farm waste andplastic films are used to suppress weedgrowth. However, they have limitationslike increase in soil temperature andreduced aeration of soil. Under thisproject various woven and nonwovenstructures have been developed whichhave better control on soil temperature,humidity an also provide the benefits ofsuppressed weed growth and waterconservation. The developed structureshave been successfully tested for theircharacteristics at SASMIRA laboratory.Field trials of the same developedstructures are being taken up at NavsariAgriculture University for short term andlong term crops like Okra and Mango.The comparison of on field performanceof these structures vis-à-vis plastic films,organic mulches and control sampleswould be made.4) Indigenous Development ofUltrasonic Device(S) forMaintenance of WeavingAccessoriesLack of cleaning of weaving accessoriesand spares result in loss of productionand deterioration of fabric quality.Ultrasonic waves have been popularlyused for cleaning in general. The sametechnology is proposed to be deployed formaintenance of weaving spares andaccessories. The present projectenvisages cleaning the spare parts inweaving machinery viz., healds, reeds,leno doups and such spares using thenew ultrasonic technology. The efficiencyof ultrasonic cleaning in other fields is wellestablished. A device(s) will be designedto efficiently clean the spares which willbe faster and also worker friendly. Portableultrasonic cleaner with six lit capacityhave been developed. Trials have beenconducted for cleaning of heald wires anddrop pins in aqueous medium and therating results showed best cleaning.Possibility of cleaning in dry medium(developing mechanical shaker with finesand dispersion) is in process and upscalingthe developed cleaner for highercapacity cleaning.5) Development of Polyester (PET)/Nanoclay Nanocomposite forbarrier packagingPET is the most widely used packagingmaterial. Being very sensitive to externalatmosphere PET material alone cannotsuffice requirement for high gas barrier219

ministry of textilesdemand upon the packaging material, soit needs extra gas barrier property.Nanoclays are the gas impermeablecrystalline nanomaterial structure wellknown to improve the properties of thebasic polymeric material upon mixing withthe neat polymer matrix. The project aimsto envisage PET/Nanoclay nanocompositewhich can be a high gas barrier materialuseful in the packaging of environmentsensitive products. For the developmentof suitable nanocomposite, suitable gradeof Nanoclay (Cloisite 30B) and PETmaterial (IV 0.82) have been identified.Testing of the raw materials are beingcarried-out and based upon the testresults, PET and Nanoclay compoundingparameters will be adjudged. Later onnanocomposite development parameterswill be optimized and finally developednanocomposite will be evaluated for thegas barrier properties.6) Development of reflectiveAgrotextiles for Sun managementProtective Agrotextiles help in controllingclimatic factors, especially sunlightexposure to crops. Many crops are alsoextremely light sensitive. Sunlightmanagement is the process ofmanipulating the sunlight quality andquantity to which plants are exposed. Anew generation of agrotextiles can bedeveloped to address this problem. Theywould allow the grower to choose boththe duration of light as well as theparticular wavelength that will produce thedesired effect from the plants at all stagesof development. The proposed projectaims to develop wide range of agrotextilescreens which will reflect light and thusripen all plants uniformly protecting themfrom extreme climatic conditions. It isproposed to develop woven reflectiveagro ground covers with suitable reflectivecoatings leading to desired results. Studyof already existing imported reflectivefabrics and their base product used formaking the product is being carried out.Imported reflective screens for Agrotextilesbeing evaluated at laboratory.7) Standardisation of Norms forAgricultural Shade NetThe project envisages studying thedifferent agrotextile shade nets beingmanufactured and used in the country forbenefits in agriculture yield improvement.Although the products are gainingpopularity in the country at themanufacturers' end and users' end, thereis no clear guideline available defining thenorms for the manufacture andconstruction of the product. So also, themethodology to test the functionalproperties of these products has not beenestablished. The proposal is aimedtowards establishing these norms foragricultural shade nets. Various shadenets constructions being used in differentagriculture application are under evaluationvis-à-vis existing test methods.8) Developing fabrics withthermoregulatory properties usingphase change materials (PCM) forspecialty applicationThis project aims to identify and developthermo-regulatory behaviour fabricssuitable to these fields of application.Development of such value-added textileproducts for specialized uses would opena new avenue in market for textile products,thereby benefiting the industry. Variouswork wear fabric substrates have beentreated with treated with range of PhaseChange Materials (PCMs) using pad-drycuretechniques as well asmicroencapsulation technique. Theeffectiveness of each treated sample hasbeen compared to the untreated fabrics.The properties like fabric physicalcharacteristics air permeability,breathability, thermal conductivity andthermal characterization have been studied.The suitability of the treated fabrics forvarious applications has been depicted.220

annual report 2010-119) Development of Durable,Breathable and Barrier Work wearFabrics for AgrotextileApplicationsThe work wear fabrics used by the agroworkers in the country are not scientificallydesigned. Hence it is desirous to developworkwear fabrics that are impervious tothe chemical fluids being handled by thefarmers and at the same time comfortableto the wearer and durable in nature. Theproposed work focuses on developmentof such comfortable, durable, work wearfabrics for agrotextile application by usingplasma technology. Experimental trails onplasma technology were conducted atresults were evaluated. Plasma treatmentchamber coupled with padding techniquefor finish application has been procured.Trials on finishing various textile substrateswith water repellent and anti-microbialfinishes are under progress. Processstandardization using plasma technologyis being carried out.10) Application of Supercritical Fluid(SCF) for DyeingThe present project envisages applicationof supercritical fluids as reaction mediumand as a solvent medium in textilechemical processing for dyeing. Carbondioxide is the most investigated and wouldbe used as supercritical fluid as a dyeingmedia. It is a naturally occurring fluid thatis chemically inert, physiologicallycompatible, and relatively inexpensive andis readily available for industrialconsumption.Literature studies have been completed.Dissolution behaviour of many differentclasses of dyes has been studied. It isfound that many different dyestuffs can beused in super critical fluid system. Ofthese dyes which have been studied it isfound that natural dyestuffs behaves moreeffectively under super critical conditionsas fluid and can be used for the dyeingprocess. The different substrates whichcan be dyed using super critical carbondioxide have been studied from literature.It is understood that polyester and nyloncan be dyed using the super criticalapplication. The application of these dyeson cotton substrates will be evaluatednow.11) Dyeing of Polypropylene usingNanotechnologyThe proposed project aims to producedyeable polypropylene that can be madeusing nanoclay infusion technique. Thedye sites created in polypropylene werethe prospective areas where nanoclay islocated. Therefore, the optimized nanoclayparticle size, particle size distribution, andthe uniform dispersion of nanoclay insidethe polypropylene matrix are very criticalfor the dyeing properties of the dyeablepolypropylene nanocomposites.The polypropylene fibres and pellets havebeen sourced and procured for differentexperiments. Simultaneously, thenanoclays for polypropylene have alsobeen identified and procurement processis ongoing.The dyeing techniques currently availablefor dyeing of polypropylene in pellet formis being studied.12) Evaluating compatibility &establishing methodology forsimultaneous functional finishesfor textileVarious anti-microbial, anti-fungal and antiviraltreatments have been formulated fordifferent natural and regenerated fibres.However, each has their limitation in theform of their compatibility with each otherand their durability throughout the life ofthe garment. The project envisagesdeveloping a combination of such finishesof permanent nature in situ in the textilefibre. Thus developed fibre would find221

ministry of textilesapplications in healthcare textiles, homefurnishing, shoe lining fabrics andinnerwear.Different auxiliaries for application as antimicrobial, anti fungal and anti viral finisheshave been identified and orders havebeen placed for procurement of the same.The substrate for application of finisheshave been studied and cotton and nylonhave been identified for application ofthese finishes. The work plan for executionof the application in individual andcombination has been worked out.13) Design of processing sequencesuitable for embroidered fabricsincorporating embellishmentsTime and again, problems are beingencountered by the processors due topressing need for the careful handling ofembroidered fabrics specially thoseincorporating embellishments such as jari,sequins, etc. Problems are encounteredduring finishing or top dyeing of suchfabrics as the embellishments are sensitiveto the extreme temperature and pHconditions being employed. This at timesleads to reworking and losses to themanufacturers, who have to rework thepieces. A clear processing guideline is notavailable to the processors for handlingsuch delicate materials. Hence it isenvisaged to design a processingsequence suitable for embroidered fabricsincorporating Sequins and otherembellishments. Different fabrics withembellishments are being procured ofdifferent finish level. The sequins and jarisare also being procured separately fortrials. Finishing chemicals are also beingprocured. Their dyeing and finishing trailsare being planned.POWERLOOM SERVICE CENTRES(PSC)SASMIRA runs two powerloom servicecentres in Bhiwandi for the benefit of thelocal weaving industry. The centres catervarious services e.g. Testing, Technicalservices, Consultancy etc. and schemeslike Technology Upgradation Scheme(TUFs), Group Insurance Scheme (GIS),Group Work Shed Scheme (GWSS), etc.for the local industry.The centres also contribute to HRDactivities. It runs a one-year certificatecourse on weaving run by the centre.Training courses like 'on-the-job trainingfor weavers / jobbers / supervisors' etc. isbeing conducted under Skill Up-gradationTraining Programme. SASMIRA hasstarted an "Apparel Training Centre" atPSC-I during the year. Seminars on currenttopics relating to textiles and relevant topowerloom weavers are regularly held inthe centres.FINANCESASMIRA received a Non-plan support ofRs 130.00 Lakhs from the Government in2009-10 for its recurring expenditure. Inaddition, Rs.87.50 Lakhs was released tothe Association during the year underreview of the plan fund for its ingoing planprojects.WOOL RESEARCH ASSOCIATION(WRA)Wool Research Association (WRA) wasestablished in October 1963 under theSocieties Registration Act 1860, as anInstitution with the concept of Research &Development in the field of wooltechnology initially in the premises ofVJTI, Mumbai, as a cooperative jointventure of Indian Woollen Industry andCSIR, Govt. of India. In its infancy, itstarted with a testing laboratory and aneducation curriculum leading to Diplomain Textiles (Wool).Presently, the activities of Wool ResearchAssociation are manifold, situated in itsown premises in a sprawling green belt of222

annual report 2010-1113 acres of land near Thane, in theoutskirts of Greater Mumbai and attachedto Ministry of Textiles, Govt. of India as abody of Textile Research Association.ObjectivesAs per the Memorandum of Articles, themain objectives of WRA are as follows:a) To establish a Research Institute forWool Industry to undertake scientificwork connected with all aspects wooland its technology of processing,either alone or in combination withother fibres, including man-madefibres.b) To undertake Research projects offundamental & applied nature,including for improvement /development of new materials,testing, machinery, processing andproducts of wool and allied textileindustry, with a view to securinggreater efficiency, rationalization andreduction of costs.c) To render technical services toindustry, governmental and nongovernmentalagencies includingtraining & HRD, testing andcertification survey and evaluationreports.MAJOR ACTIVITIES– Basic and Applied Research /Projects in Wool Related Technology;– Formal Education & VocationalCourses;– Need Based Courses & Training atsite & Consultancy;– Ultra Modern Textiles Testing(Physical & Chemical)– CAD-CAM Woven & Knitting;– Miniature dyeing & finishing of yarn& fabric;– Woollen & Shoddy Spinning PilotPlant;– National Ecological TestingLaboratory and– Friction Spinning - High Tech Yarn.Present R&D Activities (sponsored)(i)(ii)To improve processing performanceof finer Indian wool and their productrange with incorporation of EnzymeTechnology for better value addition.To synthesize of wool dyes withmoth proofing properties.HighlightsFrom the project study at Sl. No. (i) aboveit is concluded that enzyme orientedsolutions for early stage processing ofwool in scouring, bleaching, carbonisationcan be adopted commercially with addedbenefits and value addition of end productsat small scale processing units andcommon facility centres using finer Indianwool.From the project study at Sl. No. (ii) aseries of new reactive potentialinsecticides molecules pertaining topyrethroid skeleton, reduced and coupledwith suitable colouring components withdual functional properties of colourationand moth inhibition, were prepared andpartly purified to evaluate their efficiencyfor dual functioning properties onlaboratory scale with collaborativeassistance from industry partner. There isscope for upscaling for commercialapplication.ON-GOING R & D PROJECTS (To beconcluded during the current year)●To develop itch-free woollens to beworn next to the skin by improvementof surface topography of wool fibreswith the help of mechanical / chemicalprocessing and plasma technology.223

ministry of textilesAchievementThe objective of developing itch freewoolens could be achieved withcombination effect of application of plasmaand mechanical & chemical processingparameters. The project study is to beconcluded after subjective user trials duringwinter.●Ultra sound assisted scouring andsmooth finishing of wool & otherspeciality animal fibres and theirproducts.AchievementThe objective of evolving a lab-level modelof greasy wool scouring with ultra soundtechnology to save energy, time andpollution load has been achieved byoptimization study. The upscaling of labtrials for bulk trials is pending with suitablemodification in ultrasonics. Project nearingcompletion.●Design and Development of InteriorTextiles with special emphasis onheat resistance and flame retardancy.AchievementAs per the project objective It is toincrease flame retardancy and heatresistance by blending wool with fibreslike Recron F.R. Polyester fibres,Kanecaron, modacrylic F.R. fibres, glassfibre and F.R. acrylic fibres. The projecthas since been completed.●To assess Quality Norms of WorstedYarns being made by Indian Industry.AchievementsAs per the objectives, total 15 mills(worsted) have been selected all overIndia & the selection of common countand blend of yarn which is widely used inthe industry is selected for working outnorms as given at table 13.12.Count (Nm)Table 13.12Blend (P/W)2/24, 2/48, 2/56, 2/60, 65/35, 55/45,2/70, 2/80 40/60All wool14 worsted units participated in the projectwork and data and samples were collectedfrom the on-line process. The analysis ofthis data has been completed. The projectis scheduled to be completed by end of2010.PROJECTS SPONSORED BY CENTRALWOOL DEVELOPMENT BOARD●To develop ecological friendlymoth repellent and moth proofingagent for woollen textiles for easycareAchievementSynthesis of compounds based on benzylethers (gem dimethyl type) to providesafer wool moth proofing is achieved.Different insecticides having potentialpyrethroid skeleton and organo-chlorinehave been synthesized and subjected tocomparative performance test. More than80% work is completed.New R & D Projects (Sponsored byMinistry of Textiles)● Improvement of Preloomprocesses like scouring, spinning,etc for decentralized wool sector.Objectives●●To workout an R&D effort necessaryfor technological inputs in early stageprocessing of wool during scouring,carbonization and bleaching.To study and suggest modificationsin the carding process for variousmix blends of wools of variousqualities and in admixture with other224

annual report 2010-11●●●fibres like Angora, Pashmina, Mohairand other need based synthetics.To evolve methods to improveaesthetics of the finished end productwith a mechanism to evaluate thesame.To transfer the developed technologyto the user industry, particularly tothe CFCs and decentralized sector.Development of Composites fromcoarse Indian wools for betterutilization.Objectives●●●●To explore the possibility of use ofshort wool fibres and coarse woolfibres in producing compositematerials for value added products.Coarse wool fibres like Deccani atthe fibre stage and yarn stage to beattempted for producing compositesin the form of laminates, air filters,etc.Various experiments so conductedto be analyzed for data foroptimization of processes andproduct.To evolve a feasible alternativeherbal carpet washing treatment.Objectives●●To workout an alternative carpetwashing treatment for carpets madewith natural dyes.To improve the conventional chemicalwashing treatment for carpets toreduce the severity of the treatmentswith corrosive chemicals.MINISTRY OF TEXTILES●Blind dyeing of polyester and wooland their blends for Right FirstTime (RFT) and Right Every Time(RET) vis-à-vis Finishing ofworsted suiting for exportObjectives●●●●●Identification of factors that influenceshade of wool and polyester afterdyeing and finishing in ourdecentralized sector.Setting up of quality assurance in theprocess houses in the decentralizedsector to pre-check shades beforetaking up for bulk production (RFT).Scope of introducing controls toensure RET from batch to batcheven after a gap of several monthsto facilitate mix and match.Taking trials for Blind dyeing onexact shade within DECMC of 0.7Softening of coarse Indian woolsfor better utilization in value addedproducts with pliable feel andhandle.Objectives●●●To bring about modification in thestructure of coarse wool fibres so asto reduce their anti scale friction andmake them smoother.Grafting of surface active agents intothe fibres to improve the lubricity andrender them more pliable.Surface modification of coarse Indianwool by using plasma technology.NEW PROEJCTS SPONSORED BYCENTRAL WOOL DEVELOPMENTBOARD(vi) To develop textiles effluenttreatment system for powergenerationObjectives●To standardize anaerobic digestion225

ministry of textilessystem using wool textile effluentsfor the production of methane anddevelop methods for methanecapture.● To introduce and implementlaboratory scale results at the plantlevel for the generation of methane.●Utilization of the methane for powergeneration to suit the specificrecurrences of the individual units.MAJORASSIGNMENTS(a)(b)(c)CONSULTANCYWRA completed a consultancyassignment on "ConcurrentEvaluation of various Sheep andWool Improvement programmes" forCWDB.Undertook a consultancy assignmentto revive the two mills under BritishIndia Corporation, Kanpur (BIC).Consultancy was given for setting upof Common Facility Centres atvarious cluster areas under CWDBfinancial supportTESTING ACTIVITIES●●●NABL Accreditation to WRA's TextileLab was renewed as perrequirements of ISO 17025-2005during the month of August 2009.Certified for ISO 9001:2000 untilDec., 2010Alpha Model Light Fastness Testerwas installed after repair andreconditioning.Eco Testing Laboratories activitiesinvolved testing on GC MS - GC -HPTLC, HPLC, AAS, UV & IR.TRAINING & EDUCATIONAL ACTIVITYOne dozen new technology talent underHRD for Wool Research Association wasformulated during the year 2009-10 andimplemented with recruitment, throughproper procedure by a SelectionCommittee (of fresh Textile Technologistsin the form of B.Tech & M.Tech personnelfrom different Institutes, including IIT Delhi)and given a comprehensive 6 monthsorientation training programme on wooltechnology and assigned theresponsibilities at WRA as Scientist 'B'.Further, 2 of the trained personnel werereleased to Woollen Industry and another2 were given advanced overseas trainingat U.K.ADMINISTRATIONINFRASTRUCTUREDuring the year under review, WoolResearch Association completed a majorrepair & maintenance assignment for itscentral laboratory complex building inThane (Maharashtra) alongwith survey ofits surrounding land under its possession,construction of boundary wall (about 1500m) and reorganisation of its laboratories,with the addition of a conference room.Capacity building with recruitment &training, of a dozen of textile engineeringgraduates & post graduates for talentbuilding alongwith orientation training forScientists & Professors from differentInstitutions in Wool Technology wasconducted.The Governing Council of WRA met thriceduring the year besides, Annual GeneralBody Meeting & The Technical AdvisoryCommittee met once.INDIAN JUTE INDUSTRIES RESEARCHASSOCIATION [IJIRA], KOLKATAIndian Jute Industries ResearchAssociation [IJIRA] was established in1937, the first co-operative R & Dorganisation rendering services to theIndian Jute Industry and GovernmentAgencies who are promoting Indian Jutein export and domestic market. Beginning&226

annual report 2010-11as Indian Jute Mills' Association ResearchInstitution (IJMARI) in 1937, the institutehas grown over the years and moved toits current imposing premises in 1952. Inthe year 1966, IJMARI was renamedIJIRA and registered under the WestBengal Societies Registration Act, 1961as an autonomous cooperative researchorganization. IJIRA is one of its only kindof research associations in India dealingwith a fibre grown only in this part of theworld and by virtue of this, it is unique.IJIRA is headquartered in Kolkata, with itsregional centres being at Cherthala(Kerala), Vizianagram (Andhra Pradesh),and Guwahati (Assam). GuwahatiRegional Centre also has the PowerloomService Centre co-located with it. There isa Testing Laboratory too at Shantipur(West Bengal). Since its inception, IJIRAhas, over the years, grown into a worldclass research institute on jute.Major Areas of Research are:(a) Development of an eco-friendlysubstitute of JBO for jute processing.(b) Light fast bleached & dyed juteproduct development.(c) Jute Bamboo composites.(d) Development of Technical Textilessuch as wider braided jute fabric.(e) Jute-Ramie blended finer yarns andfabric development.(f) Energy efficient green sizingtechnology for jute yarns.(g) Development of Aroma based hometextiles.(h) Multifunctional ceramic based nanofinishingoutdoor textiles by sol-gelmethods.(i) Development of Low Cost Jute Bagsfor Foodgrains and Sugar.(j) Quality Assurance for food gradejute products.In additional to rendering various technicalservices to Jute Sector, IJIRA is presentlyinvolved in Jute Technology MissionProjects DDS 7.1 and DDS 6.4 projects,promotion and techno-marketing of jutegeo-textiles in association with NationalJute Board, quality assurance of foodgrade jute products and consultancy.TEXTILES COMMITTEEThe Textiles Committee, established bythe Textiles Committee Act, 1963, has theprimary objective of ensuring quality oftextiles both for internal marketing andexports. Its functions include promotion ofquality of textiles and textile exports,research in the technical and economicfields, establishing standards for textilesand textile machinery, setting up oflaboratories, data collection etc. TheCommittee's has its Head Quarters atMumbai with 30 Regional Offices, 17 ofthem with laboratories, including 9 havingeco testing facilities.PerformanceLaboratory and Textiles TestingServicesDuring 2009-10, Textiles Committeegenerated a testing revenue of Rs. 9.19crores. The anticipated revenue during2010-11 (upto March 2011) is Rs. 10.25crores.Other ActivitiesTraining on Textile TestingDuring 2009-10, 385 personnel from thetextile industry and trade were trained.As an ongoing programme, 190 personnelwere already trained during the currentyear and over 400 personnel are projectedfor training during 2010-11.Laboratory Accreditation(a)Out of the 17 laboratories of TextilesCommittee, 14 are accredited. Re-227

ministry of textiles(b)assessment of the Laboratories atHyderabad, Kanpur, New Delhi,Kolkata, Jaipur, Ludhiana & Mumbaihas been conducted by NABL. TheNABL has accorded the continuedaccreditation status in respect ofthese laboratories.The Laboratory at RO Ahmedabad istaken up for getting accredited byNABL during the current year 2010-11.Consultancy on AccreditationTwo laboratories viz. M/s. Alok Industries,Navi Mumbai and M/s Textile TestingLaboratory India Pvt. Ltd, Tirupur havebeen assessed by NABL andrecommended for accreditation. Theconsultancy work in respect of other 5laboratories for 'Laboratory accreditation'is in progress.Inter Laboratory Proficiency Testing(ILPT)The laboratory at Mumbai is conductingInter Laboratory Proficiency Testingregularly, in order to ensure thecompetence of the laboratories. During2009-10, Textiles Committee conductedsix programmes on ILPT covering 38mechanical (Fibre, Yarn and Fabric) and13 chemical (Fabric) parameters of textiles.73 laboratories including most of theaccredited laboratories from India, Sri-Lanka and Bangladesh participated in theprogramme. Rs. 6.95 lakh was generatedthrough these programmes. As an ongoingactivity, two ILPT programs are beingconducted during 2010-11.Proposal for Skill DevelopmentProgramme under ISDSTextiles Committee has initiated the SkillDevelopment Programme under ISDS toprepare 4500 Quality Professionals overthe next five years to fill the skilledmanpower gap in various segments ofTextile Industry. Under the programmeMOUs and linkages with TextilesInstitutions for identifying the studentsand Industry Associations for placementhave been completed.Quality Appraisal & Export CertificationServicesApart from carrying out quality inspectionin aid of export promotion, the Divisionalso issues the following specialcertificates to the exporters as requiredunder various bilateral agreements /schemes.Certificate of Origin under GeneralisedSystem of Preferences (GSP)Under the scheme of Generalised Systemof Preferences (GSP), the Committeeissues GSP Certificates in Form-A fortextiles and textile articles to the exporters.This certificate enables the importers toclaim duty preferences at the importingend.Certificate of Origin (Non-Preferential)The Textiles Committee is also authorizedto issue Certificate of Origin (Non-Preferential) from July 2005 to enable theexporters to establish the country of originof the material exported.Handloom CertificateUnder the various bilateral agreementswith developed countries, the Committeeis issuing Handloom & Cottage IndustryCertificates after conducting limitedinspection for ensuring handloom origin ofeligible textile items to enable the importersto claim duty concessions.Tariff Rate Quota Certificate (TRQC)Endorsement on TRQC is done formonitoring import quota for specific textiles228

annual report 2010-11items for the following countries:i) For readymade garments from SriLanka under ISFTAii)iii)For apparels from Bangladesh underSAFTAFor acrylic yarn from Nepal underIndo-Nepal Trade Treaty.Classification of TextilesTextiles Committee offers services to thetextile Industry & Trade on classificationof Textiles & Textile articles underHarmonised System (H.S.)/HarmonisedTariff Schedule of the United StatesAnnotated (HTSUSA)/CombinedNomenclature (CN) Code. This service ismostly availed by the textile exporters,importers and Indian Customs Authorities.The quantum of work carried out by thisDivision during 2010-2011 (up toDecember 2010) and anticipated figuresfrom 1st January 2011 to 31st March2011 are indicated at table 13.13.Table 13.13Sl. Particulars 2010-2011 Projected figuresNo. (April-December for January to2010) March, 20111. No. of lots inspected for quality 709 2362. No. of GSP Certificates issued 291775 972583. No. of Certificates of Origin (Non-Preferential) issued 82877 276254. No. of lots examined under limited inspection forloom origin for issue of Handloom certificates 490 1635. No. of handloom and other specialcertificates issued 687 2296. No. of samples classified for HS code,description, etc. 4325 14427. No. of new exporters registered 806 2698. No. of registrations renewed 2794 9319. Sale of Blank GSP Forms 206414 6880510. Sale of Blank Certificate of Origin(Non-Preferential)Forms 102944 3431511. Sale of Blank Certificates under Bilateral Agreement 816 27212. Endorsement on TRQC for monitoring import quotaof RMG under ISFTA 166 5513. Endorsement on TRQC for monitoring import quotaof Acrylic yarn under Indo-Nepal Trade treaty(in Metric Ton) 3120 104014. Endorsement on TRQC for apparel Articles fromBangladesh under SAFTA 271 9015. No. of Units registered for rating of Ginning &Pressing Factories 147 6316. Total revenue generated for activities atS.N. 1 to 15 above. (Rs. in Lakhs) 767.61 239.13229

ministry of textilesThe total revenue generated during 2010-11 by the Export Promotion and QualityAssurance Division is Rs.10.07 crores.Endorsement of GSP Certificatescontributes major portion of revenuegenerated by the EP&QA Division (58%),it is followed by assessment of Ginning &Pressing factories (14%). Sale of variousblank certificates contributes for 9% of thetotal revenue collection. While revenuecollection from issuance of certificate oforigin, (non preferential) and registration& renewal fee accounts for 5% each.Quality inspection accounts for 2%, otherservices viz. Classification, TRQCEndorsement under India-Sri Lanka/India-Nepal FTA & India-Bangladesh etcgenerated 7% of total revenue during2010-2011.Scheme on Assessment & Rating ofGinning & Pressing FactoriesTo popularise the scheme among theGinners, Spinners, Cotton merchants/traders and other interested parties, 5Workshops and 13 Consultative Meetshave been conducted from April 2010 toDecember 2010. As a result 147applications have been received tillDecember 2010 for assessment, of whichthe assessment of 59 Ginning & PressingUnits have been completed. The remaining88 are under the process of assessmentin the current cotton season.Total Quality Management ServicesTextiles Committee reoriented its rolefrom that of regulatory to developmental.The developmental activities were initiatedin rendering consultancy on ISO-9000quality management systems, ISO-14000Environmental Management systems, SA-8000 (Social Accountability ManagementSystems), OHSAS 18000 (OccupationalHealth and Safety Assessment Series).A total of 28 units availed the consultancyservices under ISO 9000 / ISO 14000 /SA 8000 / OHSAS 18000. A cumulativetotal number of units under consultancyhas gone upto 498. About 37 units areexpected for consultancy services undervarious standards in the current year.(Table 13.14)Post Certification ActivitiesIn order to demonstrate the continuedrelevance of Textiles Committee in theTable 13.14Training to Industry Personnel: (April-2010 to Dec. 2010)Sr. Type of Training Number of Number ofNo. programmes personneltrained1. Awareness on ISO 9000 15 2692. Statistical Process Control 15 2183. Internal Quality Audit 19 2374. Training on ISO 14000 0 05. Awareness & other related programmes on SA-8000 03 406. Awareness & other related programmes on OHSAS 0 0TOTAL 52 764230

annual report 2010-11development of Small & MediumEntrepreneurs (SMEs), the Committeehas introduced the post certificationactivities. During the year under report ason 31/12/2010, 33 companies have availedpost certification support services fromthe Textiles Committee. For this service,a sum of Rs.5,69,331/- has been collectedas fee.Market ResearchNational Household Survey 2009:Market for Textiles & Clothing (MTC)The survey has been carried out regularlyby Market Research Wing for estimatingthe domestic consumption pattern oftextiles both in the rural and urban India.The data is collected through a nationallevel sample survey with the help ofStratified Random Sampling (SRS) methodfrom 14250 households based at 118urban and 265 rural centres of the country.The survey estimates per capita purchaseof textiles and clothing, aggregate demand,sectoral preferences, market size of textiles& clothing products. The survey report for2008 has been published in January2010. The tabulation of data for MTC2009 is completed and the report isexpected to be published by March 2011.Census on Textile Engineering IndustryThe Census of Textile Machinery Industrywas carried out to fill up existing data gappersisting in the textile machinery industryof the country. The census has beenundertaken with the partial support of theTextile Machinery ManufacturersAssociation (TMMA). The study hasestimated and analysed the number andspread of the units, the growth trends interms of investments, technology,production etc. It has also thrown light onproduction, raw material, and investmentpattern and assesses the extent ofcapacity utilization and employment in thesector.Sponsored ProjectsProject for inclusion of Stakeholders inthe process of GI Registration of 21 CraftIndications (sponsored by DevelopmentCommissioner (Handicrafts). The studyand documentation of 21 craft indicationscompleted and the cluster level awarenessworkshop have been organised in 12production centres. The preparation ofapplication for Part 'B' registration is inprogress.Study and Documentation of UniqueHandloom Products of Tamil Nadu(sponsored by Co-optex, Tamil Nadu).The draft study and documentation reportprepared and submitted to the Governmentof Tamil Nadu for comments.Project "Strategies and Preparednessfor Trade & Globalisation in Textiles &Clothing Sector of India"The Government of India, UNCTAD andDFID implemented a four year programmetitled "Strategies and Preparedness forTrade & Globalisation in India". The projectaims at strengthening human andinstitutional capacities among stakeholdersso as to support and sustain the processof globalisation. The Textiles Committeehas been implemented the project as Tier-I partner for T & C Sector. The mainobjective of the project is Trade RelatedCapacity Building (TRCB) of thestakeholders so that they can successfullymitigate the negative effects of globalisationand harvest the benefits coming out of it.The project has also facilitated awarenesscreation on WTO negotiations,dissemination of emerging trade relatedissues and gathering feedbacks from thestakeholders on different aspects ofinternational trade for supporting policymakers to device pro-poor sectoral policiesand schemes.Project ImplementationThe project is implemented through a231

ministry of textilesnetwork of partners from trade & industryassociations, state governments, Centresof Excellency, civil society organisations,etc. As of today, 146 partners have beensupporting the project activities as Tier -II Partners. A network of 3500 stakeholdershas also been prepared throughout thecountry for implementation of the projectactivities. The project is implemented byselecting important themes relating toInternational Trade & Globalisation. Themain themes addressed under the projectare (a) Implication of New EU-GSPSchemes on Indian Export of T&C, (b)IPR Protection of Unique Textile Productsthrough Geographical Indication (GI) Act,1999, (c) Export Competitiveness of IndianTextiles & Clothing Products in EU & US,(d) Implication of Tariffs & Non-TariffBarriers on Indian Textiles & ClothingExports.Awareness Creation & GI FacilitationAs of today, more than 56 sectoral andawareness workshops were organised indifferent important textile centres of thecountry and more than 18,000 stakeholdersincluding representatives of trade andindustry associations, civil societyorganisations, Centres of Excellences,Export Promotion Councils (EPC), Officersof Central & State Government, etc.participated in these workshops. As a partof IPR Protection of unique Textilesproducts of the country, 13 products havebeen taken up for GI Registration out ofwhich 9 products have been registered,the Consultative Committee for 1 producthas been completed and others are indifferent stages of registration. Theimportant products taken up for registrationare given at table 13.15.Research & Studies and PublicationsMore than 40 reports are published ondifferent facets of globalisation like NewEU-GSP Scheme, GeographicalIndications, Tariffs & Non-Tariff Barriers(NTBs), Implication of NAMA Negotiationin WTO on Indian Textiles & ClothingTable 13.15Sr.No. Products Present Status1 Banaras Brocades & Saree, Uttar Pradesh Registered2 Upada Jamdhani, Andhra Pradesh Registered3 Gadwal Saree, Andhra Pradesh Registered4 Paithani Sarees & Fabrics, Maharashtra Registered5 Balaramapuram Sarees & Fine Cotton Fabrics, Kerala Registered6 Surat Zari Craft, Gujarat Registered7 Khandua Sarees & Fabrics, Orissa Registered8 Lucknow Zardozi, Uttar Pradesh Registered9 Pipli Applique Craft, Orissa Registered10 Bhagalpur Tussar Silk, Bihar Consultative CommitteeMeeting held11 Dharmavaram Silk, Andhra Pradesh Application filed12 Bandhani of Gujarat Application filed13 Guledgudda Fabrics, Karnataka Application filed232

annual report 2010-11Sector, Apparel Competitiveness in EUMarket, etc. A dedicated Websitewww.tcunctad.org has been hosted foreffective dissemination of trade relatedissues. The booklets relating to WTO,TRIPS, Anti-Dumping, GI, Tariffs and NTBsare published and circulated among thestakeholders in different vernacularlanguages for better understanding oftrade related issues. As a part of theendeavour, a quarterly newsletter "Trade,Globalisation & Textiles" has beenpublished since 2006 for dissemination oflatest information on project activities andglobalisations. The details of thepublication is given at table 13.16.Table 13.16Sr.No.Publications1. Art and Artifacts of Lucknowi Chikankari2. Dream of weaving: Study & Documentations of Banaras Sarees and Brocades3. Evolution of Growth of Applique Craft of Orissa4. Khandua Sarees and Fabrics : Tradition & Pride of Orissa5. Study & Documentation of Guledgudda Fabrics6. Assessment, Awareness & Identification of potential T & C Products of GeographicalIndications (GIs)7. Study & Documentation of Paithani Sarees & Dress Materials8. Study & Documentation of Balarampuram Sarees& Fine Cotton Fabrics9. Post MFA Apparel Market in US : Prospects for India - Occasional Paper I10. Powerlooms in the New Market Economy : A Case of Nagari Cluster-OccasionalPaper 211. Does Indian gain from the enlarged EU Market ? Evidences from post MFA/ATCclothing market performance - Occasional Paper 312. NAMA Negotiations : Implication on Indian Textile Sector - Occasional Paper 413. Current Scenario : Domestic Market on Textiles 2006 - Occasional Paper 514. Indian Apparel Competitiveness in Post-ATC EU Market - Occasional Paper - 615. Trade Globalisation & Textiles Newsletter of UNCTAD/MOC&I/Textiles Committee-October-December 2005.16. Trade Globalisation & Textiles Newsletter of UNCTAD/MOC&I/Textiles Committee-January- June 200617. Trade Globalisation & Textiles Newsletter of UNCTAD/MOC&I/Textiles Committee-July - December 200618. Trade Globalisation & Textiles Newsletter of UNCTAD/MOC&I/Textiles Committee-January-June 200719. Understanding the World Trade Organisation (English, Oriya, Kannada, Bengali,Gujarati)20. Anti Dumping (English, Oriya)21. Agreement on Trade Related Aspects of Intellectual Property Rights including Tradein Counterfeit goods (TRIPS) (English, Oriya, Hindi, Bengali, Gujarati)22. Frequently Asked Questions on Geographical Indications (GI) (English, Hindi,Marathi, Malyalam, Oriya, Kannada, Bengali, Gujarati)23. Bandhani Report24. Surat Zari Report.233

ministry of textilesGI Facilitation of various statesThe various state governments havesought the Technical Assistance Serviceon Intellectual Property (TASIP) from theTextiles Committee for GI Registration ofunique textile products of their state. Asof today, three state governments havesponsored the GI registration of tenproducts. The details are given at table13.17.The study and documentation for all theseproducts have been completed andapplications are prepared on the basis ofthe report.Post GI Registration Initiatives onMarket Linkage and Brand BuildingIn order to convert the IPR protection ofthe unique products to tangible benefitsfor the artisans and weavers of theseproducts, the Textiles Committee hasprepared an action plan forimplementation. The Post GI Initiatives isfirst of its kind in the country and expectedto empower the stakeholders in terms ofincrease in income, employment, etc.once effectively implemented in the GIregistered products.As a part of the initiatives, the TextilesCommittee has also taken up the followingactivities:a) Preparation of product catalogue& hosting of websites for GIdesignated productsThe Textiles Committee has alsoinitiated post GI initiatives byfacilitating preparation of productcatalogue and hosting dedicated B2Bweb portal for Banaras Sarees &Brocades of Uttar Pradesh and PipliApplique of Orissa.b) Market Potential Study onLucknow Chikan Craft in SouthAfricaThe study is first of its kind and triesto study the potential market for GIdesignated product for creatingmarket linkage in the internationalmarket. The study is sponsored by o/o the Development Commissioner(Handicraft), Government of India.The study has been taken up withsole objective of organizing marketlinkage for the product in the post-GIregistered period. Once completedthe study would help in identifyingthe potential market for this GIregistered product in South Africa.Table 13.17Sr.No. State Product Present Status1 Kerala Kasargod Sarees Registered2 Kuthampully Saree Registered3 Chendamangalam Handloom Products Registered4 Uttar Pradesh Agra Durries Application prepared and5 Lucknow Zardozi forwarded to State6 Maunath Bhanjan Sarees Government for7 Farukkhabad Cotton Prints validation8 Karnataka Udupi Saree Application Filed234

annual report 2010-11Government SchemesHANDLOOM MARKTextiles Committee has been appointedas implementing agency (IA) by the Officeof the Development Commissioner(Handlooms). The Handloom Mark waslaunched on 28.06.2006. The performancereport in the Handloom Mark Scheme ason Dec. 2010 is given at table 13.18.Popularization of the Mark throughDomestic and International PublicityThe success of Handloom Mark schemedepends upon the action taken towardsits popularization. This has been achievednot only through the sensitization seminarsbut also through other publicity measures.The publicity measures are broadlyclassifying into two categories such asATL (Above the Line) activities and BTL(Below the Lines) activities. The ATLactivities consist of publishing throughPrint and Electronic Media tools where asthe BTL activities consist of field levelactivities such as participating inExhibitions, Fairs, Seminars, etc. There isprovision of Rs.1.60 crores for field levelactivities (BTL) and 5.15 crores for publicityactivities (ATL), making total budget ofRs.6.75 crores for the financial year2010-11.a) Publicity through Above the Line(ATL) activityb) Advertisements through NewspapersTextiles Committee has incurred anexpenditure of Rs.1,23,03,127/-towards advertisement in major Newspapers in 12 languages.c) Publicity through Below the Lines(BTL) ActivitiesDomestic and International exhibitionsDuring the year, the Committee hasparticipated in 13 (thirteen) DomesticExhibitions. An amount of Rs.21,54,072/-has been expended / advanced out of abudget of Rs.1.50 crore towards thispurpose.Cluster Level SeminarThese programmes are conducted in orderto create awareness of Handloom MarkScheme amongst the users such asIndividual Weavers, Master Weavers,Primary Cooperative Societies, ApexSocieties, Retailers/Traders, ManufacturerExporters, etc. Textiles Committee hasconducted 42 cluster level seminars sofar. An amount of Rs. 19,79,800/- hasbeen expended towards the cluster levelseminars out of a budget of Rs. 22,00,000/- towards this purpose.Awareness/Dissemination meetsIn order to bring general awareness amongthe stakeholders of the industry, theCommittee has co-participated inprogrammes/dissemination meetsorganized by Weavers Service Center,NHDC, etc. The Committee hasparticipated in 32 programmes. The clusterlevel seminars and awareness/dissemination meets were well attendedby in-all 9241 participants.Table 13.18Sr. Name of the activities Target Achievements AnticipationNo. (April 2010 to uptoDec. 2010) March 20111. No. of Registration allotted 1000 1175 14502. No. of label sold Nil 34,08,883 40,00,000235

ministry of textilesGrant in-Aid for Handloom MarkA Grant-in-Aid of Rs.3,10,69.890/- issanctioned by the Government of India.The Cluster Development ProgrammeThe Cluster Development Programme isbeing implemented for the CapacityBuilding of Textile SMEs in the identifiedclusters since the year 2002. Threehandloom clusters have been assignedby the Office of the DevelopmentCommissioner (Handlooms), Ministry ofTextiles, Government of India forimplementation under the IntegratedHandloom Cluster Development Scheme(IHCDS) as an Implementing Agency inthe year 2005 - 06. The action plan forimplementation of the scheme is preparedon the basis of diagnostic studyimplemented after approval of ApexCommittee.Bijnore (Uttar Pradesh)●●●●●4 consortiums have been formedcovering 33 master weavers and1316 weavers.SPV named 'Bijnore HandloomWeavers Services Public Limited' hasbeen registered as a public limitedcompany for managing the CFC andDye House Shares of Rs.10 eachworth Rs 25 lakhs floated in themarket.The CFC & Dye House building civilwork at village Sahaspur iscompleted. The order for thepurchase of the machinery for thedye house has been placed. TheDye house will be fully functional bythe end of the March 2011.9 Quality up-gradation trainingconducted for 180 weavers.Training in handblock printingprovided for a batch of 20 womenartisans and Dobby design foranother 60 artisans.● Total sales generated - Rs 228.63lakhs through exhibitions during 2010-11.●●10 warping machine were suppliedto the weavers of the Bijnor handloomcluster thus 300 weavers are able tosave on the warping cost.15 designs (10 co-ordinate setdeveloped), New Products developed- 45.● Yarn worth Rs 65 lakhs supplied - 13cycles completed - 1000 weaverswere benefited.Trichy (Tamil Nadu)●●●●●●●51 new SHG formed and linked withbanks by opening bank accounts, aspart of institutional strengthening.222 reed and healds replaced toweavers of Manmadu, Mussiri andKullithali villages for quality andproduct improvement under PPPmode (75:25)14 SHGs covering 200 weaversformed. 1 Consortium formed with E-commerce facilities covering 1010members. Name - ManmeduHandloom Tex Consortium andregistered as the producer company.140 weavers trained in Pure SilkWeaving, 15 weavers changedvariety. Earn up to Rs. 5000 permonth from Rs. 2000 per month.170 SHG women trained in Handembroidery.warps / sizes: improved the length ofwarp by about 20%Sales Generated Rs. 38.60 lakhthrough Handloom House andExhibitions236

annual report 2010-11●Yarn Bank: Rs.274.16 lakh suppliedto 2000 weaver. 55 cycles completed.basic computer & English trainingprogramme, GI & Handloom Mark●●Common Facility Centre (CFC) workis under process.235 designs and 95 new productsdeveloped and 7 new designsdeveloped for Organic cotton yarnwith Natural dyed colours fabric.Organic cotton yarn is under theprocess of natural dyeing which willbe taken for production as per designfor conversion of childrens wear.Shantipur (Nadia, West Bengal)●●A design studio has been establishedfor design development by installingComputer Aided Textiles Designing(CATD) which is running successfullythus given benefit to 5000 weaversof Shantipur cluster.66 new handlooms were provided toloomless weavers of SHG federationunder PPP mode.●●●A Training programme of CAD &CAM Operation given to 05 localdesignersTraining programme on Productdiversification was given to 10weavers from the SHG federations.Total Sales & Orders generated Rs.201.50 lakhs through exhibitions &BSM.● Six Yarn Banks have beenestablished. Rs. 50 yarn supplied to500 weavers. 10 cycles completed.● Total 93 designs developed and 25proto type products of homefurnishing were also developed fromShantipur newly developed fabrics.●Construction of CFC is underprogress which will be completed bythe end of April 2011 and Dye houseis under progress.●●60 different training programs hasbeen conduction covering 2300weavers.Another 515 stakeholders weretrained in MDP, EDP, Bar coding,Packaging, Visual merchandising,Fabric defects & QA, colour forecast,Finance of the CommitteeThe Committee generates internal revenueby way of user charges such as testingand certification charges consultation fees,etc. The details of the revenue receiptsrealized and anticipated during the year2010-11 are given at table 13.19.237

ministry of textilesTable 13.19Sl. Head of Accounts 2010-11 (upto Anticipated TotalNo. December during Jan. to (3+4)2010) March, 2011A. Service Charges1. Certification to Exporters 258.43 90.00 348.432. Laboratory Testing 784.18 300.00 1084.183. Total Quality Management 18.58 6.50 25.084. Market Research Studies/surveys 31.29 5.00 36.295. Sale of publications 3.87 1.00 4.876. Human Resource Development(Training) 0.79 0.30 1.097. Quality Inspection 11.62 4.00 15.628. Sale of forms 59.10 22.00 81.10Total (A) 1167.86 428.80 1596.66B. Other Receipts1. Interest on short term depositwith SBI 115.72 154.00 269.722. Recoverable Advances & depositsincluding interest 16.37 6.00 22.373. Misc. Receipts (includes settlementof insurance claim & saleproceeds of capital assets) 22.01 8.00 30.014. Rent on Auditorium & Board Roomof the Committee's Bldg. at Mumbai. 10.95 4.00 14.955. Handloom Marks Scheme 14.82 5.00 19.826. Rating fees of Ginning &Pressing Factories 18.68 7.00 25.68Total (B) 198.55 184.00 382.55Total (A+B) 1366.41 612.80 1979.21238

annual report 2010-11CHAPTER XIVCITIZEN'S / CLIENT'SCHARTER239

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annual report 2010-11CHAPTER XIVCITIZEN'S / CLIENT'S CHARTERVisionTo build state-of-the-art productioncapacities and achieve a preeminentglobal standing by 2020 inmanufacture and export of all types oftextiles including technical textiles, jute,silk and wool and develop a vibranthandloom and handicraft sector forsustainable economic development andpromoting and preserving the age oldcultural heritage in these sectors.Mission1. To promote planned and harmoniousgrowth of textiles by making availableadequate fibers to all sectors.2. To promote technological upgradationfor all types of textilesincluding technical textiles, jute, silkand wool.3. To promote skills of all textile workers,handloom weavers and handicraftsartisans, creation of new employmentopportunities and development of newdesigns to make these sectorseconomically sustainable.4. To ensure welfare and proper workingenvironment and easy access tohealthcare facilities and insurancecover to weavers and artisans toachieve better quality of life.5. To promote exports of all types oftextiles and handicrafts and increaseIndia's share of world exports inthese sectors.Service StandardsThe Ministry of Textiles provides policysupport and implements programmes andschemes for the development and growthof Textiles Industry. We commit to theservices given at table 14.1.Services to Citizens are provided by theResponsibility Centres (RCs) for the subsectorscovering the entire Textile Industrythrough the Citizen's Charters preparedby the RCs. For any deficiency/dispute,citizens may approach the RCs and whennot satisfied, may approach the Ministryas per above service standards.Grievance Redress MechanismThe Ministry of Textiles has developed agrievance redressal portal (CPGRAM) atits website http://ministryoftextiles.gov.infor receiving and redressing the grievancesof public online. The system has beendevised in such a manner as to involve lesspaper work on the part of the organizationshandling grievances of the public.As per the system, any citizen can visitthe website of Ministry of Textiles andlodge his/her grievance under the link"Public Grievances". The nodal officer inthe Ministry accesses grievances relatingto his subjects by logging in his useraccount and takes action for redressal. Incase the grievance relates to any of theorganizations under the Ministry, the nodalofficer transfers it to the concernedorganization online. At present 17organizations under the Ministry asmentioned hereunder have been includedin the Grievance Redressal Mechanism.The details are given at table 14.2.241

ministry of textilesTable 14.1S. Main Service Standard Level at which specificNo.services would beprovided1. Maintain a constant We will endeavour to Sh. P. Gopalan,dialogue with industry respond to all written Deputy Secretary,and stakeholders while suggestions within Coordinationframing and reviewing 15 working days. 336, Udyog Bhawan,policies and programmesTel.: 23061009 (O)relating to the sector.e-mail: p.gopalan.nic.in2. Constantly endeavour to In case of a likely or As above.keep our actions and inevitable delay indecisions transparent decision making, orand work towardswhen an issue ismaking our procedures disputed, we willand transactions ascommunicate thesimple as possible.reasons therefor.3. Set up a sensitive and We will endeavour to Sh. Sujit Gulati,responsive machinery respond to all written Joint Secretaryfor redressing public inquiries/complaints (Public Grievances),grievances. within 3 weeks. 232, Udyog Bhawan,Tel: 23063192e-mail: gulatis@nic.in4. Share our national We will keep our website, Sh. H.P. Shrivastav,performance and information Handbooks / Annual Report Sr.Technical Director,with public over the media etc. up-to-date, and use it NIC, 269, Udyog Bhwanand the Internet through to share information on Tel: 23063069our website. our activities, policies and e-mail: hps@nic.inprogrammes with you.S.No.Name of the OfficeTable 14.21 Development Commissioner (Handloom)2 Development Commissioner (Handicrafts)3 Office of Textile Commissioner, Mumbai4 National Jute Board, Kolkata5 Office of Jute Commissioner, Kolkata6 Jute Corporation of India, Kolkata7 National Jute Manufactures Corporation, Kolkata8 British India Corporation, Kanpur9 National Textiles Corporation, New Delhi10 CentralCottageIndustries Corporation of India Ltd. New Delhi11 Handloom and Handicraft Exports Corporation of India Ltd. New Delhi12 Cotton Corporation of India Ltd, Mumbai13 National Handlooms Development Corporation Ltd, Lucknow14 Central Wool Development Board, Jodhpur15 Central Silk Board, Bangalore16 National Institute of Fashion Technology, New Delhi17 Sardar Vallabhbhai Patel Institute of Textile Management, Coimbatore242

annual report 2010-11In the event of non-fulfillment of thecommitment/non-redressal of grievancesby the RCs, the users may send theircomplaint or meet personally at theaddress given at table 14.3 for appropriateaction.Table 14.3Sr. Offices Public /Staff Address & TelephoneNo.Grievances Officers1. Ministry of Textiles Shri Sujit Gulati Room No. 232, Udyog BhawanJoint Secretary/ New DelhiDirector (PG) Phone: 23063192Email: gulatis@nic.in2. O/o Development Shri S.S. Gupta, West Block-7, R.K.Puram,Commissioner (Handicraft) Development New DelhiCommossoiner Phone: 011-26109895(Handicraft)Email: ssgupta234@yahoo.com3. O/o Development Shri Sohan Kumar Jha, Office of DC (Handloom)Commissioner (Handloom) Addl. Development Udyog Bhawan,New Delhi-110011Commissioner Phone: 011 23062238(Handloom)Email: sk.jha@nic.in4. O/o Textile Commissioner, Shri A.B. Joshi New CGO Building,Mumbai Textile Commissioner 48 Marine Line, Mumbai-433320Phone: 022-22001050Email: texcomindia@txcindia.com5. O/o Jute Commissioner, Shri Binod Kispota C.G.O. Complex,Kolkata Jute Commissioner 3rd MSO Building4th Floor, DF Block,Salt Lake City, Kolkata-700064Phone: 03323376973/75Email: jccal@vsnl.com6. National Jute Board, Shri Atri Bhattacharya 3A & 3B, Park Plaza,Kolkata Secreatry 71 Park Street, Kolkata-700016Phone -033 22172107Email: bhattacharya.atri@gmail.com7. Jute Corporation of Shri Chinmoy Sengupta 15 N Nellie Sengupta SaraniIndia Limited, Kolkata General Management Kolkata-700087, West Bengal(Corporate) Phone: 033-22527107E-mail: jutecorp@vsnl.netjutecorp@gmail.com8. National Jute Shri Binod Kispota Charter Bank Building,Manufactures Corporation, CMD 4, Netaji Subhash Road,KolkataKolkata-700001Phone: 033-22172107Email: njmccorp@cal2.vsnl.net.in9. Sardar Vallabhbhai Patel Prof. S.R. Pujar 1483, Avanashi Road,Institute of Textiles, Director Peelamedu, Coimbatore-641004Management, Coimbatore Phone: 0422-2571675Email: director@svpitm.ac.in243

ministry of textilesSr. Offices Public /Staff Address & TelephoneNo.Grievances Officers10. National Textiles Shri Rai Varghese National Textile CorporationCorporation Limited, Dy. General Manager Limited, Registered Office:New Delhi (HR) Scope Complex, Core-IV,7, Lodi Road, New Delhi-110003Phone: 011-24361892E-mail: ntcqnd@de12.vsnl.net.in11. Cotton Corporation of Shri S.C. Grover ''Kapas Bhavan', Plot No. 3-A,India Ltd, Mumbai CMD Sector 10, Post Box No. 60CBD Belapur,Navi Mumbai-400614(Maharashtra)Phone: 022-2757 9217E-mail: headoffice@cotcorp.com12. Central Wool Shri K.K. Goyal C-3, Near Shastri Circle,Development Board, Executive Director Shastri Nager, Jodhpur-342003JodhpurRajasthan (India)Phone: 0291-2433967/2616328Email: edwoolboard@dataone.in13. Central Silk Board, Shri S.Prakash CSB Complex, BTM Layout,Bangalore Joint Secretary Banglore-560068Phone: 080-26282699Email: prakash@silkboard.org14. Central Cottage Industries Shri Nirmal Sinha Jawahar Vyapar Bhawan, JanpathCorporation of India Ltd, Managing Director New Delhi-110001New Delhi Phone: 011-23323825Email: ccicmdoffice@gmail.com15. National Institute of Shri Munish Girdhar NIFT Campus, Haus Khas,Fashion Technology, Registrar Near Gulmohar Park,New DelhiNew Delhi-110016Phone: 011-26542065E-mail: registrar.estt@nift.ac.inmunish_girdhar2000@yahoo.com16. British India Corporation Shri J.K. Baweja 11/6, Smt. Parvati Bagla Road,Limited, Kanpur CMD (Additional P.O Box No. 77, Kanpur-208001Charge) Phone: 0512-2530196E-mail: bicltdsps@yahoo.co.in17. National Handloom Shri J.K. Baweja 10th &11th Floor, Vikas Deep 22,Development Corporation, CMD Station Road, LucknowLucknow Phone: 0522-2035133Email: hondc@nhdcltd.co.in18. Handicrafts & Handlooms Dr. Arun Vir Singh A-2, Sector-2, Udyog MargExports corporation of General Manager Noida-201301India Ltd. (Marketing) Phone: 0120-2554275Email: gmavs@hhecworld.in244

annual report 2010-11Stakeholders/ClientsFarmers, weavers, artisans, workers,entrepreneurs, industrialists who areengaged in the production, processing,weaving, crafting and designing of textiles(all fibres) and apparel/clothing in theorganized and unorganized sectors inurban and rural areas through thefollowing:1. The Development Commissioner forHandicrafts, New Delhi2. The Development Commissioner forHandlooms, New Delhi3. Jute Commissioner's Office, Kolkata4. Textile Commissioner's Office,Mumbai5. Central Silk Board, Bangalore6. Central Wool Development Board,Jodhpur7. Commissioner of Payments8. Textiles Committee, Mumbai9. National Institute of FashionTechnology, New Delhi10. National jute Board, Kolkata11. Powerloom Service Centers12. Weavers' Service Centres13. Export Promotion Council (for TextilesSector)Each of these field organizations underthe Ministry have their own Citizen's andService Charters in which they commit toserve you and set down standards ofperformance by which you can assess thequality of the services and their dedicationto perform them well.Responsibility CentersThe details of Responsibility Centres aregiven at table 14.4.Indicative expectations from servicerecipientsThe details of Indicative expectations fromservice recipients is given at table 14.5.Our Information and Facilitation Centre(IFC) is situated near Gate No. 18, UdyogBhavan, New Delhi. Any feedback/suggestions from the users may be sentto Sh. P.Gopalan, Deputy Secretary in theMinistry of Textiles.Suggestions on the Charter may be sentto rkale39@gmail.com. More detailedinformation may be seen on our website(http://ministryoftextiles.gov.in).Month and Year for next review of thecharter1. The Citizen's Charter has beenapproved by the Minister for Textiles,New Delhi.2. The annual review of the charter andperformance audit will be done bythe Ministry of Textiles in February2012.245

ministry of textilesSr. Name AddressNo.Table 14.41. Office of Development Ministry of Textiles, Government of India,Commissioner (Handicrafts) West Block No.7, R.K. Puram, New Delhi-110066Tel: 26109895, e-mail-dchels@nic.inWebsite: http://handicrafts.nic.in2. Office of Development Ministry of Textiles, Government of India,Commissioner (Handlooms) Udyog Bhavan, New Delhi-110107Tel: 23062945, 23053684, Fax: 23062429e-mail: dchl@nic.in3. Office of Jute Ministry of Textiles, Government of India,CommissionerCGO Complex, 3rd MSO Building, 4th Floor, DF Block,Salt Lake, City Kolkata-700064Tel: 91(33)2337 6979/80, 91(33)23376971Fax: 91(33)23376972/6973/6974/75e-mail: iccal@vsnl.comWebsite: www.jutecomm.gove.in4. Office of Textiles Ministry of Textiles, Government of India,CommissionerNew CGO Building, Nishtha Bhavan, Post Bag-11500,48, New Marine Lines, Mumbai-400020Tel: 22014446/22004510/22033721Fax: 022-22004693e-mail: texcomindla@texindia.com5. Central Silk Board CSB Complex, B.T.M. Layout, Madivala, Hosur Road,Bangalore-560068, KarnatakaTel: 2628269, Fax: 26681511, E-mail: csbsilkbord.org6. Central Wool Development Ministry of Textiles, Government of India,BoardC-3, Shastri Nagar, Jodhpur, Rajasthan-342003Tel: 0291-2433967, 2616328, Fax: 2439017e-mail: woolindiajodhpur@dataone.in7. Textiles Committee P. Balu Road, Off, Veer Savarkar MargPrabhadevi Chowk, Prabhadevi, Mumbai-400025Tel: 66527507, Fax: 66527507, 66527577, 66527509e-mail: secy@giasbm01.vsnl.net.in. Secytc@gmail.com8. National Institute of NIFT Campus, Hauz Khas, New DelhiFashion Technology Tel: 26850470, 26542000e-mail: admissions@nift.ac.in9. National Jute Board 3 A&, Park Plazza, 71, Park Street, Kolkata-700016Tel: 3438/2217-2107, Fax: 22172456e-mail: jute@njbindia.com246

annual report 2010-11S.No.Table 14.5Indicative expectations from service recipients1. Submit application forms duly complete in all respects.2. State Governments should properly utilise the central financial assistancereleased to them for the projects and make efforts for timely completion ofprojects.3. Please show courtesy to Ministry's officers.4. Always keep proper records of your letters / communications with the Ministry.5. If you have an appointment with an officer in the Ministry/its subordinate/attachedoffices, please arrive 15 minutes prior to the appointment.6. If you want to cancel an appointment, please give a written notice via fax or emailat least two days in advance.7. Send reports in the prescribed format as per prescribed timelines.8. To check the website regularly for updates on policies, programmes andprocedures.9. Give suggestions/inputs on drafts placed on Ministry's website.247

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annual report 2010-11CHAPTER XVWELFARE OF SCHEDULEDCASTES, SCHEDULED TRIBESAND WOMEN249

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annual report 2010-11CHAPTER XVWELFARE OF SCHEDULED CASTES,SCHEDULED TRIBES AND WOMENHANDLOOMSThe Handloom Sector employs over43.31 persons in weaving and alliedactivities with 23.77 looms. Thissector is weaver- specific/occupational innature, with the majority of weaversbelonging to the poorest and themarginalized sections of the society. Ofthe total workforce of 43.31 persons, 10%of the workers are SC, 18% are ST, 45%are OBC and 27% are from Other Castesas per the report of Handloom Census of2009-10.The various handloom Schemes operatedby this office are weaver's professionoriented and not category related. Forassisting the Handloom Weavers, includingSC/ST and women, the Government ofIndia is implementing variousdevelopmental Schemes through StateGovernments with the objectives of (i)Employment Generation, (ii) Modernizationand upgradation of technology, (iii) Inputsupport, (iv) marketing support, (v)Publicity & Exhibition, (vi) Infrastructuralsupport, (vii) Welfare measures, (viii)Development of Exportable Products (ix)Research & Development.HANDICRAFTSOffice of the Development Commissioner(Handicrafts) six generic schemes viz.Baba Saheb Ambedkar hastshilp VikasYojana; Design and Technology UpgradationScheme; Marketing Support andServices Schemes; Export PromotionSchemes; Research & DevelopmentSchemes & Human ResourceDevelopment. All these schemes play avital role in the empowerment andupliftment of women artisans and artisansbelonging to Scheduled Castes andScheduled Tribes.Of total workforce engaged in handicrafts,47.42% are women, of which 37.11%belong to SC/ST category (Source :NCAER Survey, 1995-96). There arecertain crafts, which are practicedpredominantly by women like embroidery,mat weaving, etc. Special attention isbeing paid to ensure that a large numberof women artisans get benefit of all thedevelopmental schemes, such as training,marketing related programmes, NationalAwards, exhibitions, etc.SILK SECTORScheduled Caste Sub-Plan andScheduled Tribe Sub-PlanCentral Silk Board does not have separateSub-Plan for Scheduled Castes andScheduled Tribes. The Plan Programmesfor the target groups are usuallyimplemented by the States. The Schemes/Programmes being implemented byCentral Silk Board are mainly fordevelopment of sericulture industry, basicseed support and training. Besides,Central Silk Board has been implementingthe Centrally Sponsored Scheme (CSS)viz., "Catalytic Development Programme"since IX Plan in which, SCs and STshave been largely benefited. Most of thesericulture activities especially undervanya sector are being practiced in thebackward areas by SCs / STs. The251

ministry of textilesschemes / components formulated underCDP are mainly aimed to benefit thesecategory of stake holders. The SC / STcoverage envisaged under the CentrallySponsored Scheme CDP ranges from30-90% depending on the nature of theprogramme / component. The actuals willhowever depend on the Schemes /components implemented by the Stateswith CSB assistance. It is estimated thatabout 30% of the SCs / STs are engagedin mulberry sericulture while 30-90% ofSCs / STs are engaged in vanyasericulture.During XI Plan, CDP is continued andimplemented as a Centrally SponsoredScheme with certain modifications but ina package mode. The components arebeneficial for both existing and newfarmers covering women, SCs / STs whoare practicing sericulture. The StateDepartment of Sericulture have to identifythe existing as well as new farmers andoffer the components accordingly to theirrequirements from out of the basket ofcomponents. The packages under CDPcovers three major areas viz., Seed Sector,Cocoon Sector and Post Cocoon Sectorand will be supplemented by othercomponents of support services.Of the total approved allocation of Rs.81.01crores for implementation of CDP during2007-08, a sum of Rs.16.57 crores (20%)was earmarked for implementation of SC/ST components. An amount of Rs.80.82crores has been released / spent by CSBduring 2007-08. During 2008-09, Rs.76.73crores was approved for implementationof CDP, of which, Rs.15.71 crores (20%)was earmarked for SC/ST components.During 2008-09, however an amount ofRs.90.74 crores has been released /spent by CSB towards the implementationof CDP. Out of Rs.75.57 crores approvedfor implementation of CDP during theyear 2009-10, Rs.15.11 crores (20%) wasearmarked for SC / ST components.However, an amount of Rs.144.06 croreshas been released / spent by CSB during2009-10. During the current financial year2010-11, an amount of 52.15 crores(20%) has been earmarked for SC / STagainst the RE of Rs.260.76 crores underCDP.252

annual report 2010-11CHAPTER XVITEXTILES IN NORTHEASTERN REGION253

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annual report 2010-11CHAPTER XVITEXTILES IN NORTH EASTERN REGIONTextiles and textile based activitieslike handlooms, handicrafts,sericulture and jute, continue to beNorth Eastern Region's main source ofemployment and income generation afteragriculture. The region's woolen & silkfabrics including the exclusive eri silks aswell as cane/bamboo based crafts havenow become popular not only in thecountry but also abroad on account oftheir uniqueness, quality and designs.However, production of textile items on acommercial scale is restricted, with theresult that they cater largely to a localmarket only.Recognizing the immense potential thatthe region has in handlooms, handicrafts,sericulture and jute based products andhas striven to facilitate their developmentby formulating and implementing variousplan schemes.HANDLOOM SECTORNorth Eastern Region has the highestconcentration of Handlooms in the country.60% (16.8 lakh out of 27.8 lakh) of thehandloom weavers households is locatedin the North East. Of the 43.3 lakhhandloom workers, 49.88% are located inNER. Like wise, of 23.77 lakh handlooms,65.2% (15.5 lakh handlooms) handloomsare located in the region. However, 61.6%looms reported in NER are domestic.The Weavers' Service Centres, set up atGuwahati, Agartala and Imphal, functionas the Nodal Centre for development ofdesigns and dissemination of informationto the weavers in the region about thebreakthrough made in the handloomtechnology. The IIHT set up at Guwahati,caters to the requirements of the handloomsector for technically qualified manpower.A special dispensation has been made forthe North Eastern States under theIntegrated Handlooms DevelopmentScheme. In respect of these States, thegrant portion towards Basic Inputs of thescheme is shared between Centre, StateGovernments and the implementingagencies in the ratio of 90:5:5 respectivelywhereas for General States, it is in theratio of 70:20:10 respectively.During the year 2009-10, under theIntegrated Handlooms DevelopmentScheme (IHDS), 21 Clusters weresanctioned in the NER and a sum ofRs.6.42 crore were released, which alsoincludes second installment of earliersanctioned projects. 68 Group ApproachProjects were sanctioned and a sum ofRs.7.22 crore was released, which alsoincludes second installment of earliersanctioned projects.Financial & Physical Progress under IHDS:General States and NER during 2009-10(Table 16.1)Table 16.1(Rs. in crore)Amount Released Number of Clusters Number of GroupApproach ProjectsGenl. NER Total Gen. NER Total Gen. NER TotalStates State States State States State92.82 22.75 115.57 31 21 52 343 68 411255

ministry of textilesDuring 2010-11, 01 Cluster has beensanctioned in the NER and a sum ofRs.9.77 crore has been released (uptoDecember 2010), which also includessecond installments of earlier sanctionedprojects. In addition, 96 Group ApproachProjects have been sanctioned and a sumof Rs.7.55 crore has been released,which also includes second instalment ofearlier sanctioned projects. Physical andfinancial progress in NER during 2009-10and 2010-11 (upto December 2010) aregiven at table 16.2.State-wise number of Clusters taken upunder IHDS in NER is given at table 16.3.State-wise number of Group ApproachProjects taken up under IHDS in NER isgiven at table 16.4.HANDICRAFTS SECTORNER has a predominantly tribal or clannishtraditions/heritage and nowhere is thisreflected more than in the Region'sunique and varied handicrafts. Theexquisite handcrafted items or productsof the Region include a wide range ofitems like wood work, jewellery, potteryand metal work. The handicrafts ofNorth-Eastern region have gainedpopularity all over the country. However,some how, it has not penetrated in thedomestic up markets and in theinternational markets. Ministry has givenTable 16.2Financial & Physical Progress under IHDS: General States and NER during 2010-11(upto December 2010)(Rs. in crore)Amount Released Number of Clusters Number of Group Approachunder IHDS Sanctioned Projects SanctionedGenl. NER Total Gen. NER Total Gen. NER TotalStates State States State States State100.16 17.32 117.48 40 01 41 380 96 476Table 16.32009-10 2010-11 (upto December(Phase - V)2010) (Phase - VI)Name of the State Clusters Amount Clusters AmountSanctioned released# Sanctioned released(No.) (Rs. lakh) (No.) (Rs. lakh)Arunachal Prd. 3 92.76 – –Assam Phase-I 46.25 – 233.08Manipur Phase-I 23.75 – 509.48Meghalaya 2 121.19 – 22.69Mizoram 1 15.65 1 15.58Nagaland 10 257.57 – 195.75Sikkim – – – –Tripura 5 84.93 – –Total NER 21 642.10 1 976.58# including 2nd installment256

annual report 2010-11Table 16.42009-10 2010-11(upto December 2010)Name of the State Group Amount Group AmountApproach released # Approach released #Projects (Rs. lakh) Projects (Rs. lakh)SanctionedSanctionedArunachal Prd. 11 50.41 14 127.74Assam 14 59.21Meghalaya 14 220.85 14 165.33Mizoram 13 74.04Nagaland 16 317.30 11 240.91Sikkim 15 47.12Tripura 42 174.38Total NER 68 721.81 96 519.36# including 2nd installmentgreater thrust in the region's economyin terms of not only employmentgeneration but also increasing the incomeof the tribal artisans. The funds allocatedduring 2009-10 and 2010-11 is given attable 16.5.Table 16.5Funds allocation for NER during 2009-10 and 2010-119(Rs. in crore)Sl. Name of The schemes 2009-10 2010-11No.BE Exp. BE Exp. As on31,12.2010(Provisional)1 Baba Saheb Ambedkar HastshilpVikas Yojana 14.00 13.82 17 2.502 Design & Technical Up-gradation 4.00 6.26 4.00 0.773 Marketing Support andServices schemes 12.50 7.92 16.00 3.644 Human Resource DevelopmentScheme 2 1.99 4.00 0.045 Research & Development 2 0.43 2.006 Handicrafts Artisans ComprehensiveWelfare Scheme 18.00 17.54 21.007 Infrastructure 1.50 0.26Total NER 54.00 48.22 66.00 6.958 All India, including NER 220 205.04 286.00 73.02% age NER 24.55 23.51 23.07257

ministry of textilesSERICULTURE SECTORAll the four varieties of silk, Mulberry, Oaktasar, Eri and Muga are produced in theNorth Eastern States and sericulture ismainly practiced by tribals and women.To help the poor farmers and to improvetheir economic conditions, the Govt. ofIndia has given the Special Status tothese States, so that they can enjoy thebenefit of 90% subsidy in implementationof the Centrally Sponsored Scheme.The earmarking of allocation for the NERunder sericulture is Rs 70.00 crore asagainst the outlay of Rs 320 during 2010-11 which is much more than the mandatoryrequirement of 10%. In respect of CatalyticDevelopment Programme, which is abeneficiary oriented Scheme, the fundsearmarked for NE States is more than20%. During 2009-10, the total silkproduction has shown an increase asagainst the target. The state-wise silkproduction is given at table 16.6.JUTE SECTORThe Jute Industry occupies an importantplace in the national economy. It is oneof the major industries in the EasternRegion, particularly in West Bengal. Itsupports nearly 4 million farm families,besides providing direct employment toabout 2.6 lakh industrial workers andlivelihood to another 1.4 lakh people inthe tertiary and allied sectors. To providethe much needed thrust and incentive tothe jute industry to invest in modernizationon a significant scale, the Ministry raisedthe cap on the subsidy prescribed in thescheme component Acquisition of Plant &Machinery (Capital Subsidy) under JuteTechnology Mission to 4.00 crore per millin respect of new mills and existing millsin North East.Table 16.6Silk Production 2009-10 (Target & Achvmnt)(Metric Tons)State Mulberry Oak Tasar Eri Muga TotalTarget Ach. Target Ach. Target Ach. Target Ach. Target AchAssam 22 16 0.50 – 1010 1410 155 93 1187 1519Ar.Pradsh. 1 3 0.50 0.10 18 15 2 0.50 22 19Manipur 120 101 3.50 3.50 426 280 3 0.50 552 384Meghalaya 4 3 – – 310 450 10 10 324 464Mizoram 15 11 0.50 0.20 6 6 1 0.30 23 18Nagaland 4 3 0.50 0.50 240 250 1 0.50 246 254Sikkim 1 1 – – 1 2 – – 2 3Tripura 6 12 – – – – – – 6 12Total for NE 173 150 5.50 4.30 2011 2413 172 105 2362 2673For all states 20180 16315 6 5 2120 2460 175 105 22855 19600NE Share(%) 1% 1% 92% 86% 95% 98% 98% 100% 10% 14%258

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annual report 2010-11CHAPTER XVIIGENDER JUSTICEIt is estimated that out of the totalnumber of persons employed in thedecentralized sectors of the Textilesindustry, especially Handlooms,Handicrafts, and Sericulture, 50% arewomen. There are more women in thehousehold industry than in the registeredsmall scale or cottage units. Within theregistered units, there are more women inunskilled and low paid jobs than in theskilled or trained category. However, inthe organized sector the percentage ofwomen workers is extremely low. In theGovernment and Public sector, inaccordance with the guidelines of theNational Commission for Women,Committees have been set up in thisMinistry and its offices/organizations todeal with complaints relating to the sexualharassment of women in the workplace.The presence of senior women in thesecommittees as chairperson or as membershas been mandated, and detailedguidelines on handling such work withfirmness and tact have been issued.Emphasis is being laid on sensitizingdepartmental staff on gender issues. Incompliance with the guidelines and normsgiven by the Supreme Court to preventand deal with cases of sexual harassmentof women in the work place, this Ministryhas also constituted a ComplaintsCommittee.The Handloom Sector employs 43.31 lakhpersons in weaving and allied activitieswith 23.77 lakh handlooms. This sector isweaver- specific/occupational in nature,with the majority of weavers belonging tothe poorest and the marginalized sectionsof the society. Work participation inhandloom activity in India is dominated byfemale workers. About 78% handloomworkers are female. The dominance offemale weavers in the total weavers'workforce is the highest in the Northeasternstates where it is 99% as per thereport of Handloom Census of India(2009-10).The Government of India is implementingfive schemes for the development ofhandloom sector and welfare of weaversincluding women during 11th Plan, whichare (i) Integrated Handloom DevelopmentScheme, (ii) Handloom WeaversComprehensive Welfare Scheme, (iii) MillGate Price Scheme, (iv) Marketing andExport Promotion Scheme and (v)Diversified Handloom DevelopmentScheme.In India about 6.8 million people areinvolved in sericulture and its alliedindustries mostly in the rural area for theirlivelihood. Women constitute over 53%of those employed in down streamactivities in sericulture. This is possiblebecause sericulture activities starting frommulberry garden management, leafharvesting and silkworm rearing is moreeffectively taken up by the women folk.Silk reeling and weaving activities alsoengage women. Thus, involvement ofwomen in sericulture which would alsobe in consonance with the National Policyfor the empowerment of women is in theright direction.Concerted efforts have been initiated bythe Central Silk Board (CSB) tosupplement the social and culturalrequirements of the women associatedwith silk industry. Under the Centrally261

ministry of textilessponsored Catalytic DevelopmentProgramme (CDP), the Central Silk Boardhad implemented a number ofprogrammes in collaboration with StateGovernments during X Plan. Financialand Technical assistance was providedfor on-farm and post-farm activities likereeling, dyeing, twisting, printing, finishingetc., Benefits accrued inter-alia, to SC/STand women workers.262

annual report 2010-11CHAPTER XVIIIINFORMATION ANDCOMMUNICATIONTECHNOLOGY IN TEXTILES263

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annual report 2010-11CHAPTER XVIIIINFORMATION AND COMMUNICATIONTECHNOLOGY IN TEXTILESToday Industry and Trade communityrequires an efficient platform havingfeatures as ubiquity, global reach,interactivity, security, information densitywith quality, reliability, accessibility withcustomization. These are essentialrequirements for controlling the competitiveedge in the business race and may beachieved only in a well tuned ICT enabledplatform. In addition to that it has tosustain its position in global market withstrong brand equity of it products againstthe turbulent behaviors of the globaleconomical fluctuations. In virtue of theabove issues, Ministry has alreadylaunched flagship programs with variousother initiatives and succeeded in them.Post 'flag ship program' reflects a positiverejuvenation in both global and domesticbusiness health of Indian Textiles Industry.By empowering the corporate body withmodern management techniques and ICTtools, Ministry fulfilled the expectations oftrade and industry especially in deliveringonline services and support. Various ITenhancements like enriching theinformation dissemination through websites, interactive services like filing of ExportAuthorization Registration Certificate(EARC) by cotton exporters , e-marketing,e-sharing of specializations in designsand patterns of Handloom products etcwere successfully implemented.National Informatics Centre (NIC),Department of Information Technology,Ministry of Communications & InformationTechnology contributed a prime role ineach initiatives described above. It isproviding full-fledged technical support indeveloping and maintaining the ICTinfrastructure and net work services. Inaddition to that various office automationsystems, information systems/analyticaltools are developed and implemented forusage at various levels of theManagement.ENHANCING WEBSITESMinistry and its various organizationsestablished and integrated efforts to deliverthe industry centric information services intheir respective websites. All major textilesorganizations (twenty three in number)including Attached/ Subordinate offices,Public Sector Undertakings, ExportPromotion Councils and educationalinstitutes like NIFT etc. have upgradedtheir sites with new features and contents.Ministry's website has been refined as perthe 'Guidelines for Indian GovernmentWebsites' issued by D/o AdministrativeReforms and Public Grievances. Cybersecurity auditing is being undertaken byNIC to secure the website from cyberthreats.Being it is a channel for an efficient andeffective way of information disseminationwith the Industry, websites arestrengthened with more user centriccontent pages, interactive channels withindustry penetration and awarenessprograms. Moreover, features like Multilanguage support, FAQs, Online Feedbackand comments and Web linkages havebeen integrated on various websites toenhance their interactiveness.Downloadable Forms / applications ofMinistry & its organizations required bythe user domain are made available.265

ministry of textilesApart from this, statistical data & analysisrelating to various sectors of cotton, jute,silk, manmade fiber and their magazines/journals are also made available onrespective websites for free of cost.Regular updations Events, Photo gallery,Media feedback are incorporated. Monthlystatus report on enhancement andupgradation of websites of the respectiveorganizations are received by the Ministryand reviewed for further improvement onregular basis.e-marketing PortalsExisting e-Marketing portals of CentralCottage Industries Corporation of IndiaLtd. (CCIC) (http://www.cottageemporium.in) and the Handicraft and HandloomsExport Corporation of India Ltd. (HHEC)(http://www.hheconline.in) are enrichedby display of more handicrafts andhandlooms products with detailspecifications.Design pool portalsIn order to benefit the Weavers of theHandlooms Sector, near about 1,500 freecontemporary designs are madeavailable in the websites of Office ofDevelopment Commissioner (Handlooms)in http://www.designdiary.nic.in/designpool.asp and National Institute ofFashion Technology (NIFT). These areimages in easily downloadable format,tagged with technical details in regionallanguages to reuse or reproduce. Thedesigns have an important bearing on themarketing of handcrafted and handloomsproducts as well as motivate the weaversand artisans to innovate newcontemporary products. It extends itssupport in sustaining and capturing bothdomestic and export markets.ICT Infrastructure upgradationsAdditional Hardware/Software, Networkequipments and visual aids are installedat various sections / conference room asper requirement. LAN of the Ministry isgoing to be upgraded with high bandwidth which will facilitate fast internetservices, online meetings / VideoConferencing, VOIP teleconferencing etc.Under the guidelines of the cabinetsecretary, various cyber security measuresare undertaken by the Ministry. Automaticpatch management and regular updataionsfor virus scanners is activated on thenetwork to protect it from the cyberthreats.Implementation of E-GovernanceEconomic Research and Marketintelligence Unit (ERMIU) is providing anintegrated interface for collection anddissemination of Information to Trade andIndustry through a dedicated web site(http://ministryoftextiles.gov.in/ermiudel/).Various analytical reports on Prices ofTextiles items, Production of Yarn/Clothetc, Sectroral information of Cotton, Silk,Man Made Fibre, Jute, and Import/Exportof Indian Textiles are available on theERMIU web site along with Indianeconomy indicators. Latest information onthe Policies, Plans, Budget, Schemes,Acts, Notifications and initiatives taken bythe Ministry are made available on theweb site of the Ministry (http://ministryoftextiles.gov.in). To enhance theparticipation of the Textiles Industry ingovernance, on-line feedbacks / commentsare invited from the Industry on thewebsite at the time of finalizing the variouspolicies on Textiles sector. Various officeautomation applications like File TrackingSystem, Court Case Monitoring System,Monitoring of VIP references etc. arebeing maintained.ICT implementation in otherorganizationAttached and subordinate offices underthe Ministry have also upgraded their ICTinfrastructure as per the requirement with266

annual report 2010-11sophisticated LAN. These offices hadenhanced their respective web sites withmore users centric features. Variousapplication forms required by the public orTrade community for submitting theproposal under different schemes arealso provided on the site for downloading.Various statistical reports on the Industrialdatabase are also being published for thereference to the industry. To disseminatethe information at the grass root level,field offices are equipped with Internetand Email facility. Awareness courses forthe purpose are organized for officials tooperate and deliver the services moreeffectively.267

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annual report 2010-11CHAPTER XIXVIGILANCE ACTIVITIES269

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annual report 2010-11CHAPTER XIXVIGILANCE ACTIVITIESThe Vigilance Unit of the Ministry isheaded by a Chief Vigilance Officer(CVO) who is also Joint Secretaryof the Ministry. The CVO is appointed onthe advice of the Central VigilanceCommission. The CVO is the nodal pointin the vigilance set up of the departmentand is entrusted with the following:-●●●●Identification of sensitive areas proneto malpractices/temptation and takingpreventive measure to ensureintegrity/efficiency in governmentfunctions;Taking suitable action to achieve thetargets fixed by the Department ofPersonnel and Training on anticorruptionmeasures;Security of complaints and initiationof appropriate investigation measures;Inspections and follow up action onthe same;nature and quantum of penalty to theimposed, wherever necessary.There are also part time VigilanceOfficers in the Attached and Sub-ordinateoffices of the Ministry of Textiles.However, the overall responsibility ofvigilance activities of these offices restswith the Chief Vigilance Officer of theMinistry of Textiles.Preventive Vigilance continues to receivepriority attention with emphasis primarilyon identification of areas sensitive orprone to malpractices and temptation.The guidelines/instructions issued fromtime to time by the Department ofPersonnel and Training and the CentralVigilance Commission in this regard arefollowed. Action taken includes thefollowing:-i) The areas of sensitive nature areidentified in the Ministry andSurveillance is kept thereon.●●●●Furnishing of comments of theMinistry to the Central VigilanceCommission on the investigationreports of the Central Bureau ofInvestigation;Taking appropriate action in respectof departmental proceedings on theadvice of Central VigilanceCommission or otherwise;Obtaining second stage advice of theCentral Vigilance Commission,wherever necessary; andObtaining the advice of Union PublicService Commission in regard to theii)iii)iv)Regular and Surprise Vigilanceinspections are being carried out inthe Ministry and the offices under itscontrol, throughout the year.Security measures have beenstrengthened appropriately.The Agreed List and List of PublicServant of Doubtful Integrity areprepared.Vigilance Awareness Period-2010 wasobserved in the Ministry of Textiles from25th October to 1st November, 2010.During the Period, the Essay and Debatecompetitions were held. Discussions were271

ministry of textilesheld on issues arising out of corruption.The main emphasis was on PreventiveVigilance and to create Awarenessamongst Officers and staff of Ministry ofTextiles. The Period was also observed inthe attached and sub-ordinate Offices ofthe Ministry and also by the Central PSUsand Statutory Boards.272

annual report 2010-11CHAPTER XXOBSERVATIONS OF THECOMPTROLLER ANDAUDITOR GENERAL OF INDIA273

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annual report 2010-11CHAPTER XXOBSERVATIONS OF THE COMPTROLLER ANDAUDITOR GENERAL OF INDIAMINISTRY OF TEXTILES(Report No. 9 of 2010-11)Non-establishment of Raw MaterialBank for Silk Carpets in Jammu &KashmirIn September 2003, the Ministry of Textilesapproved a project, under the PrimeMinister's Special Employment Packagefor Jammu & Kashmir, for setting up ofRaw Material Bank (RMB) for silk carpetsat a cost of Rs. 2.50 crore for directdistribution of Silk and other raw materialsto artisans and weavers, which wouldenable two lakh carpet weavers to comeout of the shadow of big yam dealers andobtain full-time employment opportunities.Audit found that even after five years ofapproval, the Ministry failed to ensurecompletion of the project for setting up theraw material bank. Instead of setting upa society for direct distribution of rawmaterials to art implementing agency (J&KSmall Industries Development Corporation)identified two private firms in Kashmir,who were already enjoying a monopoly,and one firm in Jammu, which used theentire material for its own use. Thisdefeated the objective of the scheme ofenabling artisans and weavers to comeout of the shadow of big yarn dealers.(Report No. 9 of 2010-11)(Pending)Non-establishment of National Centresfor Design and Product Developmentat Delhi and MoradabadIn October 1998, the Ministry approved aproposal for setting up two NationalCentres for Design and ProductDevelopment (NCDPD) at Delhi andMoradabad at a cost Rs. 5.37 crore,primarily for land & buildings and otherfixes assets. The objectives ofestablishment these centres were to assistin development of new designs, improvethe quality of handicraft items producedby artisans, enrich and orient the industryto the finer aspects of design, and ensureacceptability of exportable handicrafts ininternational markets. The Ministryreleased Rs. 4.00 crore in installmentsbetween March 1999 and March 2006.Audit found that the land for the twocentres had not been acquired, even after10 years of approval. The centre at Delhicontinued to function from a temporarylocation, on the premises of another officeof the Ministry, while the Moradabadcentre had become non-functional since2004. Even though the land for the centreshad not been allotted, Rs. 2.45 crore hadbeen utilized by NCDPD at temporarylocations on various items (setting up oftemporary infrastructure, acquiring fixedassets, setting up of office etc.), whileRs. 1.55 crore of Gol founds were lyingunspent and had not been refunded,despite the Ministry rejecting the proposalfor carry forward of grant.(Report No. 9 of 2010-11)(Pending)Non-receipt of Utilisation CertificatesLack of adequate and effective monitoringby the Development Commissioner275

ministry of textiles(Handicrafts) resulted in non-receipt of1355 Utilisation Certificates (UCs) forRs. 70.44 crore of grant-in-aid releasedupto 2006-07 to 808 organizations, whichwere to be submitted before March 2008.Further, in contravention of the GeneralFinancial Rules, the DC (H) releasedmore grants to 161 organisations, despitenon-receipt of UCs for the previous years,resulting in accumulation of outstandingUCs of Rs. 46.23 crore.(Report No. 9 of 2010-11)(Pending)Deficiencies in setting up CommonFacility Centres (CFCs) underBabasaheb Ambedkar Hastashilp VikasYojana (BAHVY)The Development Commissioner(Handicrafts) DC(H), under the Ministry ofTextiles, introduced the BabasahebAmbedkar Hastashilp Vikas Yojana(BAHVY) in 2001-02 for integrateddevelopment of potential clusters ofhandicraft artisans, with the objectives ofcreating centres of excellence with forwardand backward linkages; upgrading artisans'skills, and ensuring selfsustained andself-managed clusters of artisans. One ofthe components of BAHVY was thecreation of Common Facility Centres(CFCs) at the cluster level to enhanceproduction quality and quantity by usingmodern tools, equipment and techniquesand increase economies of scale.Audit found that out of the 95 CFCssanctioned between 2001-02 and 2007-08, 61 CFCs were yet to be completed,despite release of Rs. 21.15 crore, andRs. 8.18 crore was lying unspent were yetto be refunded. Out of the 61 incompleteCFCs, in 42 CFCs (where Rs. 7.75 crorehad been released), the NGOs/CooperativeSocieties executing the projectsdid not even seek grant of the second andsubsequent installments, while in 13 CFCs(where Rs. 3.49 crore had been released),the executing agencies did not seek grantof the third and subsequent installments.30 CFCs were reported as completed bythe DC (H); however, we found that thesewere treated as completed merely on thebasis of release of the last installment,without ensuring that the projects werephysically completed and CFCs werefunctional. Thus, the Ministry failed toeffectively implement this scheme.(Pending)Audit Report No. CA 9 of 2009-10Para 20.1.1National Textiles Corporation LimitedFailure to claim concessional rate ofcustom duty under 'Project Imports' formachinery imported for expansion of millsresulted in excess payment of customsduty by Rs. 2.26 crore.(Pending)Audit Report No. PA 10 of 2010-11Jute Corporation of India LimitedFulfillment of socio-economicobjectivesJute Corporation of India (company) wasset up in 1971 with the main aim ofproviding Minimum Support Price (MSP)to the jute farmers and to serve as astabilizing agency in the raw jute sector.The company procures jute from thefarmers at MSP and supplies to the jutemills. The performance audit, covering aperiod of six years (2003-2009), wasconducted to assess whether the companyimplemented the price support operationseffectively to ensure remunerative pricesto the jute farmers. Audit sample covered26 Departmental Purchase Centres (DPC)out of 171 DPCs in six major jute growingstates. A number of deficiencies mentionedbelow were noticed in the functioning ofthe company:●The company procured only 0.99 per276

annual report 2010-11●●cent to 10.4 per cent of available jutein India during the six years (2003-09).Thus, the company could not play anysignificant role in price stabilizationand in ensuring remunerative pricesto the jute farmers.The analysis regarding total estimatedproduction and stock of the raw juteis made by the Jute Advisory Boardin advance. The company, however,did not formulate any business plan,based on this information.Out of 500 centres where jute tradingtakes place, the company operatesin 171 centres and had appointedco-operative societies in 40 centresfor carrying out MSP operation on itsbehalf. Thus, total coverage by thecompany is only 43 per cent of thejute centres. Geographical locationof some of the centres is notconvenient to farmers resulting inlong distance travel and extra cost tothe farmers and even distress sale inthe local markets.●●Due to the lack of storage facilities,some centres stopped procurementon several occasions which forcedthe farmers to go in for sale to themiddlemen at lower prices.The Company could not enhance itsturnover and suffered losses in allyears from 2004-05 to 2007-08excepting the year 2004-05. Thecompany continued to depend onsubsides. GOI reimbursed Rs. 36.59crore for overhead costs for 2007-08and regularized grants of Rs. 147.06crore released from 2003-04 to 2007-08.The per quintal operational expenses ofthe company are Rs. 409 which arehigher than the operational expenses ofRs. 367 of private traders. Though theCompany's present price supportoperations cannot be called effective,there is tremendous scope to rectifyefficiencies in its functioning.(Pending)277

ministry of textilesTable 20.1COMMERCIAL PARASS. Report No. Audit Subject Current StatusNo.Para No.1. 2 of 2005 2.1.54 (v) The title deed in respect of Pending with auditproperties at New Delhi andChennai, were not registeredin the name of company.2. 3 of 2005 21.1.1 Irregular payment of ex-gratia Pending(Commercial)3. 21.1.2 Avoidable expenditure on Pendingregularization of contact labour4. 4 of 2005 14.5.1 Sale of surplus land and Pending(Commercial)building5. 14.5.26. 14.6.17. 14.6.28. 14.6.39. 14.7.110. 11 of 2006 1.5.31 (2) Overstatement of sales and Pending with audit(Commercial)purchases by The Handicrafts& Handlooms ExportsCorporation of India Limited11. 1.5.32 Non deposit of PF, ESI etc by PendingNational Textile Corporation(APKK&M) Limited12. 2.1.9 (1) The Handicrafts and Handlooms Pending with auditExports Corporation of IndiaLimited, delegation of financialpowers needs to be reviewedand timely recovery ofoutstanding dues needsto be improved.13. 9 of 2007 1.1.5 Accounts in arrears Pending(Commercial)14. 2.4.4.4 Financial Reporting by PSUs Pending with audit15. 2.6.1.8 Financial Reporting by PSUs Pending16. 11 of 2007 19.2.1 Irregularity in implementation of Pending with audit(Commercial)Modified Voluntary RetirementScheme278

annual report 2010-11S. Report No. Audit Subject Current StatusNo.Para No.17. 4.2.2 PSUs Pending18 9 of 2008 3.7.1 Non official Directors on the Pending(Commercial)board of unlisted Governmentcompanies19 2.4.4.6 Observation on quality of Pending with auditfinancial statements20 2.4.4.4 Qualifications on the accounts Pending with auditof unlisted Governmentcompanies including deemedgovernment companies by thestatutory auditors21 2.5 Internal control over financial Pending with auditreporting22. 2.6 Compliance with Accounting Pending with auditStandards279

ministry of textilesCIVILS. Report No. Para No. Subject Current StatusNo.1. 2 of 2004 10.1 Recovery at the instance Pending with auditof audit (Special JuteDevelopment Fund)2. 1 of 2008 15.1 Non-completioin of Urban Haats Pending with audit3. 1 of 2008 15.2 Deficient Property management Pending with audit(NCJD)4. 1 of 2008 15.3 Outstanding contingent Pendingadvances5. 2 of 2008 9.1 Unnecessary expenditure Pending with audit(NCJD)6. 3.2.17. 3.2.38. 20 of 2010 3.4.1 Catalyctic Development Pending9. 3.4.2.1 Programme of Central10. 3.4.3.1 Silk Board11. 4.10.112 20 of 2010 4.10.2 Role of National Centre for Pending& Jute Diversification in promotion4.10.4 of Jute Diversified Products13 4.11.214 4.12.1&4.12.215 4.13-4.15280

annual report 2010-11CHAPTER XXIPERSONS WITH DISABILITIES281

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annual report 2010-11CHAPTER XXIPERSONS WITH DISABILITIESThe undersigned of persons with various disabilities in various posts in Group 'A' , 'B','C' and 'D' against the 3% Vacancies to be reserved for them under Section 33 of PWDAct is given at table (as on 31.03.2010).Table 21S. Office/Organisation Group A Group B Group C Group DNo. SS PWD SS PWD SS PWD SS PWD1. Jute ManufacturesDevelopment Council(JMDC) 5 - 10 - 25 - - -2. National HandloomDevelopment CorporationLimited (NHDC) 49 - 60 - 62 1 20 23. O/o The JuteCommissioner 11 - 13 - 58 - 21 -4. The Jute Corporationof India Ltd. (JCI) 56 2 92 1 708 9 187 25. The Cotton Corporationof India Ltd. 81 - 83 3 1191 13 152 46. Central WoolDevelopment Board(CWDB) 2 - 10 - 9 - 7 -7. Textiles Committee 80 - 173 1 222 2 88 -8. O/o The DC (Handloom)& its Organization 84 - 116 1 562 6 318 39. Sardar VallabhabhaiPatel Institute ofTextile Management(SVPITM) - - - - - - - -10 National Institute ofFashion Technology(NIFT) 101 1 265 - 632 1 - -11. Central SilkBoard (CSB) 949 9 1618 24 1706 29 - -12. O/o The TextileCommissioner 61 - 175 2 284 4 155 2283

ministry of textilesS. Office/Organisation Group A Group B Group C Group DNo. SS PWD SS PWD SS PWD SS PWD13. The Handicrafts &Handloom Export Corp.of India Ltd. 47 - 78 - 68 2 21 -14. O/o The Commissionerof Payments 1 - 1 - 3 - 4 -15. National Centre for JuteDiversification (NCJD) 3 - 5 - 8 - - -16. Birds Jute & ExportLimited (BJEL) - - - - - - - -17. O/o DC (Handicrafts) 43 - 199 - 354 2 628 318. National JuteManufacturesCorporation Limited(NJMC) - - - - - - - -SS - Sanctioned StrengthNo. of PWD - Number of Persons with disabilities employed284

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