MINISTER OF TEXTILES (SHRI ANAND SHARMA)
(a) to (f): A statement is laid on the Table of the House.
STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (f) OF LOK SABHA STARRED
QUESTION NO. 640 FOR ANSWER ON 21.05.2012 REGARDING HANDLOOM WEAVERS BY
DR. PADMASINHA BAJIRAO PATIL & SHRI BALIRAM JADHAV.
(a) & (b): Yes, Madam. The Government of India has approved two packages
recently to offer financial support to the handloom weavers in the country. The
first of these is the Financial Package for loan waiver for the handloom sector.
In his budget speech for 2011-12, the Union Finance Minister had announced
providing of Rs.3000 crore to NABARD for loan waiver benefitting about 15,000
cooperative societies and 3 lakh handloom weavers. Consequently, the Government
has approved “Revival, Reform & Restructuring Package for Handloom Sector†on
24.11.2011 with a financial outlay of Rs.3884 crore. Of this outlay, the share
of Government of India is Rs.3137 crore and that of the State Governments is
Rs.747 crore. The package aims at waiving the overdues of individual handloom
weavers and their eligible cooperative societies as on 31.3.2010, and providing
them with fresh credit at subsidized rates of interest with an interest subvention
@ 3% and credit guarantee for 3 years.
The second package is the Comprehensive Package for handloom sector for
addressing the two critical needs of the handloom sector, viz., subsidized credit
and cheap yarn. This package was approved on 18.12.2011 with an outlay of
Rs.2362 crore. Such of those handloom weavers and their cooperative societies,
who are not benefited by way of loan waiver under the first package of “Revival,
Reform & Restructuring Packageâ€, are provided financial assistance with subsidized
credit under the second package. These credit related interventions are
operationalized through Integrated Handloom Development Scheme and these
interventions are (i) Issuance of Weaver Credit Cards (ii) Interest Subvention
@ 3% for 3 years on fresh loans sanctioned, (iii) margin money assistance
@ Rs.4200 per individual weaver (but not for cooperative societies) and
(iv) Credit Guarantee for 3 years.
As far as loan waiver under the Financial Package is concerned, the
eligibility criteria for the loan waiver throughout the country, including
Andhra Pradesh, are detailed below:
(i) All viable and potentially viable primary weavers’ cooperative
societies and state level apex societies would be benefited under the scheme.
The definition of “viable†and “potentially viable†societies is enclosed in
Annexure-I. However, the amounts on account of fraud and embezzlement, and
amounts of subsidy etc. due but not paid to these organizations by the
government will not be paid under this scheme.
(ii) In the case of individual handloom weavers, loans to be waived should
have been taken only for handloom weaving purposes by genuine handloom weavers,
subject to an overall ceiling of Rs.50,000 of loan waiver per individual
beneficiary.
(iii) State Governments have to agree to share a small portion of loans
to be waived and the sharing pattern between Government of India and State
Government is detailed below:
Sl. No. Beneficiary General Category States Special Category States (Centre : States) (Centre : States)
(i) State level apex societies 75 : 25 90 : 10
(ii) Primary handloom cooperative societies 80 : 20 90 : 10
(iii) Individual weavers/SHGs etc. 80 : 20 90 : 10
(iv) The banks have to agree to waive on their own 75% of the interest
amount and 100% penal interest, if any, and they also have to agree to
extend fresh loans to the beneficiaries.
As far as the eligibility criterion for financial assistance for fresh
loans under the second package (i.e., Comprehensive Package) is concerned, all
handloom weavers and their cooperative societies, not covered under the first
package of loan waiver, are eligible to apply for fresh loans.
(c): The estimated state-wise number of handloom weavers for the purpose
of loan waiver under the financial Package is given in the Annexure-II,
subject to the eligibility conditions enumerated above. Similarly, the
State-wise target for weaver credit cards for 2012-13 under the second
package (Comprehensive Package) is also given in the same annexure.
(d) & (e): No specific incident of irregularities in utilization of
funds provided under various schemes of handloom weavers by the States
have been reported.
(f): In order to ensure proper utilization of funds by the States, a
monitoring system has been put in place. A review of the progress of
physical and financial targets in respect of the schemes is being done
during the meetings of the Senior Officers of the Ministry by the
Secretary (Textiles). Quarterly Review Meetings are also being held
with Commissioners/Directors (in charge of Handlooms and Textiles)
of all State Governments. Senior officers of the Office of Development
Commissioner (Handlooms) review the progress of the schemes during their
visits to the States. Evaluation of the schemes has also been done by
independent third party agencies. The State Governments are required
to furnish proper utilization certificates when due, for funds already
released in a scheme, before the release of next installment under
that scheme.
