3884 Crore Central Plan For Handloom Sector Revival

The Government has approved a new centrally sponsored plan scheme with an outlay of 3,884 crore rupees to implement the revival, reform and restructuring package for handloom sector. 

Laying a statement in both the Houses of Parliament on 25^th Nov, the Commerce and Industry Minister, Mr Anand Sharma said out of the total, the share of the Centre will be 3,137 crore rupees and that of the state government will be 747 crore rupees. 

Under the handloom scheme, funds will be provided for repayment of 100 per cent of principal and 25 per cent of interest, which is overdue as on 31st of March 2010 in respect of viable and potentially viable primary weavers' cooperative societies and apex societies. The statement said there would be an overall ceiling of 50 thousand rupees per individual beneficiary as far as funding under the scheme is concerned in respect of waiver of over-dues of individual handloom weavers. 

It said the government has further approved an interest subvention of three per cent for three years to be extended from the date of disbursal of the fresh loan by banks to the eligible handloom cooperative societies and individual handloom weavers covered under the scheme. The interest subvention would not be made available from the date on which a loan becomes non-performing asset. 

The Statement further said the government will make necessary provisions for credit guarantee for a period of three years for the fresh loans. It said the government has further approved the Constitution of three levels of committees at the national, state and district levels for implementing and monitoring the scheme. 

The government has also approved the releasing of 80 per cent of the share of the Centre on signing MoU with the State Governments and NABARD, and on completion of loss assessment exercise in a particular state.