Welfare Schemes for Handloom Weavers

for Ministry of Textiles | Date - 12-07-2019

Government of India, Ministry of Textiles is implementing following schemes to revive, promote and develop handlooms and handicrafts sectors in Jharkhand and other parts of the country:-

Handloom Sector:

Handloom Weavers’ Comprehensive Welfare Scheme (HWCWS)

National Handloom Development Programme (NHDP)

Comprehensive Handloom Cluster Development Scheme (CHCDS)

Yarn Supply Scheme (YSS)

Handloom Weavers’ Comprehensive Welfare Scheme

Handloom Weavers Comprehensive Welfare Scheme (HWCWS) is providing Life, accidental and disability insurance coverage to handloom weavers/workers under the components Pradhan Mantri Jivan Jyoti Bima Yojana(PMJJBY), Pradhan Mantri Suraksha Bima Yojana(PMSBY) and Converged Mahatma Gandhi Bunkar Bima Yojana(MGBBY). 

National Handloom Development Programme (NHDP)

Education of handloom weavers and their children: Ministry of Textiles has signed Memorandums of Understanding with Indira Gandhi National Open University (IGNOU) and National Institute of Open Schooling (NIOS) to secure educational facilities for the weavers and their families.  NIOS offers Secondary and Senior Secondary level education with specialized subjects on design, marketing, business development, etc. through distance learning mode for handloom weavers, whereas IGNOU offers continuing education programs through accessible and flexible learning opportunities relevant to the aspirations of handloom weavers and their children for career progression.

Ministry of Textiles is providing reimbursement of 75% of the fee towards admission to NIOS/IGNOU courses in case of SC, ST, BPL, and Women learners belonging to handloom weavers’ families.

Weaver MUDRA Scheme: Under the Weavers’ Mudra Scheme, credit at concessional interest rate of 6% is provided to the handloom weavers.  Margin money assistance to a maximum of Rs.10,000 per weaver and credit guarantee for a period of 3 years is also provided. MUDRA portal has been developed in association with Punjab National Bank to cut down delay in disbursement of funds for margin money and interest subvention.

Block Level Cluster Introduced in 2015-16 as one of the components of National Handloom Development Programme (NHDP). Financial assistance upto Rs.2.00 crore per BLC for various interventions such as skill upgradation, HathkarghaSamvardhanSahayata, product development, construction of workshed, project management cost, design development, setting up of common facility centre (CFC) etc. is provided. Besides, financial assistance upto Rs.50.00 lakh is also available for setting up of one dye house at district level.

Hathkargha Samvardhan Sahayata (HSS): HathkarghaSamvardhanSahayata (HSS) was introduced on 1st December 2016 with an objective to provide looms/accessories to the weavers to enhance their earnings through improved productivity and quality of the handloom products. Under the scheme, 90% of the cost of loom/accessory is borne by the Government of India while remaining 10% is borne by the beneficiary. The Government of India’s share is released directly in the Bank account of the beneficiary through designated agency.

Handloom Marketing Assistance is one of the components of National Handloom Development Programme.  In order to provide marketing platform to the handloom agencies/weavers to sell their products directly to the consumers, financial assistance is provided to the States/eligible handloom agencies for organising marketing events in domestic as well as overseas markets. 

India Handloom Brand: During the celebration of 7th August 2015 as National Handloom Day, ‘India Handloom’ Brand was launched by Hon’ble Prime Minister for branding of high quality handloom products. It promotes production of niche handloom products with high quality, authentic traditional designs with zero defect and zero effect on environment. Since its launch, 1232 registrations have been issued under 122 product categories and sale of Rs. 689.72 crore as reported on 31-03-2019.

Initiatives with various leading brands has been undertaken to bring out a separate range of handloom garments in their brand.

e-commerce: In order to promote e-marketing of handloom products, a policy frame work was designed and under which any willing e-commerce platform with good track record can participate in online marketing of handloom products. Accordingly, 23 e-commerce entities have been engaged for on-line marketing of handloom products. A total sales of Rs.34.72 crore has been reported through the online portal as on 31-03-2019.

Urban Haatsare set up in the big towns/metropolitan cities to provide adequate direct marketing facilities to the craft persons/weavers and eliminate middle agencies.  38 such Urban Haats have been sanctioned across the country so far.

SantKabir Awardis conferred to outstanding handloom weavers who are carrying on with the tradition and have made valuable contribution to the development of the sector. Since 2012 to 2016, 24 SantKabir Awards have been conferred to the handloom weavers.

National Awardis conferred to handloom weavers in recognition of their outstanding craftsmanship contribution and development of handloom weaving. This recognition encourage them to continue with the work in a more enthusiastic and productive manner.  Since 2012 to 2016, National Awards have been conferred to 102 handloom weavers across the country.

From the year 2016, two SantKabir Awards, four National Awards and four National Merit Certificates awards have also been instituted exclusively to the women handloom weavers in addition to the existing SantKabir Awards, National Awards and National Merit Certificate in the field of weaving. This exclusive award to the women handloom weavers is named as ‘KamaladeviChattopadhyay - Awards’.  7 such awards were conferred to women handloom weavers during National Handloom Day celebrated at Jaipur on 7th August 2018.

Comprehensive Handloom Cluster Development Scheme:

The Comprehensive Handloom Cluster Development Scheme (CHCDS) is implemented for development of Mega Handloom Clusters covering atleast 15000 to 25,000 handlooms and financial assistance as GoI share from Rs.40.00 to Rs.70.00 crore is in a period of 5 years.  8 mega handloom clusters taken up as announced in the Budgets i.e. Varanasi, Sivasagar (2008-09), Virudhunagar, Murshidabad (2009-10), Prakasam& Guntur districts and Godda&neighboring districts (2012-13), Bhagalpur &Trichy (2014-15).

Under the scheme, components like conducting Diagnostic Study, engaging Designer, Product Development, Corpus for raw material, Construction of  Worksheds (for BPL/SC/ST/Women weavers), Skill up-gradation etc. are fully funded by Government of India,while the components like Technology up-gradation, Design Studio, including the Computer Aided Design System,Marketing Complex, Value Addition (setting up of garment unit), Common Infrastructure, Publicity etc., are funded by the GOI to the extent of 80%.

Yarn Supply Scheme:

Yarn Supply Scheme is being implemented throughout the country to make available all types of yarn at Mill Gate Price.  The scheme is being implemented through National Handloom Development Corporation.  Under the Scheme freight is reimbursed and depot operating charges @2% is given to depot operating agencies.  A component of 10% price subsidy also exists on hank yarn, which is applicable on cotton, domestic silk and woollen yarn with quantity caps.

Handicrafts Sector

National Handicraft Development Programme (NHDP)

Comprehensive Handicrafts Cluster Development Scheme (CHCDS)         

National Handicraft Development Programme (NHDP):

Base Line Survey & Mobilization of Artisans under AmbedkarHastshilpVikasYojana:The Scheme aims to promote Indian handicrafts by developing artisans’ clusters into professionally managed and self-reliant community enterprise on the principles of effective member participation and mutual cooperation.

Design & Technology upgradation (DTU)The Scheme aims to upgrade artisan’s skills through development of innovative designs and prototypes products for overseas market, revival of endangered crafts and preservation of heritage etc.

Human Resource Development (HRD)The Scheme has been formulated to provide qualified and trained workforce to the handicraft sector.

Direct Benefit to Artisans (DBA):The Scheme envisages welfare measures like Health and Life insurance, recognition, extending credit facilities, supply of modern tools and equipment to the artisans etc.

Infrastructure and Technology Support (ITS) The Scheme aims to development of world class infrastructure in the country to support handicraft production, and enhance the product quality and cost to enable it to compete in the global market.

Research and Development (R&D):  The Scheme was introduced to conduct surveys and studies of important crafts and make in-depth analysis of specific aspects and problems of Handicrafts in order to generate useful inputs to aid policy planning and fine tune the ongoing initiatives.

Marketing Support & Services (MSS):  The Scheme was introduced to promote and provide financial assistance is provided to artisans to participate in domestic and international craft exhibitions/seminars in metropolitan cities/state capitals / places of tourist or commercial interest/other places.

Comprehensive Handicrafts Cluster Development Scheme (CHCDS):

Mega Cluster (MC):  Mega cluster approach is a drive to scale up the infrastructural and production chain at Handicrafts clusters. The prospects of this sector lie in infrastructural upgradation, modernization of the machinery and product diversification and Innovative manufacturing as well as, furthered by brand building of the native products hold the key to creating a niche market for the products manufactured by the clusters.

Special Projects under Integrated Development and Promotion of Handicraft(IDPH):The scheme was introduced to provide adequate infrastructure for production, value addition and quality assurance for handicrafts and to develop handicrafts as a sustainable and remunerative livelihood option for artisans in the state.

Budgetary allocation of funds is not made State-wise.  However, indicative physical targets are allotted to States and funds are released based on viable proposals received and utilisation of previous funds.  The details of Scheme-wise funds allocated, released/spent under National Handloom Development Programme (NHDP) and Comprehensive Handloom Cluster Development Scheme (CHCDS) during the last three years, including the State of Jharkhand is at  Annexure-I.

Under the Handloom Weavers’ Comprehensive Welfare Scheme and Yarn Supply Scheme, the funds are released to the implementing agencies i.e. LIC of India and NHDC respectively.  The details of funds allocated and released/spent during the last three years is as under:

(Rs. in crore)

The above funds released to the implementing agencies as per the proposals initiated by them and utilization of the previously released funds.

For providing marketing facility to the weavers, Government of India has been implementing Handloom Marketing Assistance (HMA), all across India including the State of Jharkhand. The scheme provides marketing platform to the handloom weavers/organisatons to sell their products directly to the consumers. Under the scheme, financial assistance is provided to National Level Handloom Organisations and nominated handloom agencies of the State Government to organize the marketing events like National Handloom Expos (NHEs), Special Handloom Expos (SHEs) and District Level Events (DLEs) etc. In addition, Marketing Incentive is also provided to eligible Handloom organizations in the ratio of 50:50 between GoI& State Govt.(10% of the average sales turnover of the last 3 years).  The total number of weavers benefitted through marketing events and sales generated thereof, State-wise during the last three years is at Annexure-II.  

This information was given by the Union Minister of Textiles, SmritiZubinIrani, in a written reply in the Lok Sabha today.

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MM/ SB