Govt offers various schemes and incentives to boost textile sector

New Delhi, Dec 10 (KNN)  The government has taken up various policy initiatives and interventions through schemes in an effort to overcome the problems being faced by the weavers in the country.

The schemes comprise of cluster approach, technological upgradation, marketing assistance, revival of viable and potentially viable societies, availability of subsidized yarn and credit, besides providing health and life insurance cover to the handloom weavers, said an official release from the Ministry of Textiles.

Further, to provide concessional loan to handloom weavers, the government had approved the Institutional Credit scheme. It has provided margin money assistance at Rs 4200 per weaver with an interest subvention at 3 per cent for 3 years and credit guarantee through Credit Guarantee Trust Fund from Micro and Small Enterprises (CGTMSE). 

The government has also approved concessional credit to the handloom sector at 6 per cent and interest subvention will be maximum 7 per cent.  The margin money assistance has also been enhanced to 20 per cent of loan amount subject to maximum Rs 10,000 per weaver.

Further, it has recently approved modified Revival, Reform and Restructuring (RRR) package with certain relaxations in eligibility norms of apex and PWC societies.

As far as the Handloom Weavers Comprehensive Welfare Scheme is concerned, the government has been implementing it with components such as Health Insurance Scheme and Mahatma Gandhi Bunkar Bima Yojana.

In the meantime, the textiles ministry had received representations from various states and handloom organizations to relax the eligibility norms particularly, the condition of networth and transaction through banks under RRR package, to bring them back into positive networth after financially supporting them.