Funds for Welfare of Weavers

Budgetary allocation of funds is not made State-wise.  However, indicative physical targets are allotted to States and funds are released to various Implementing Agencies based on viable proposals received and utilisation of previously released funds.

The Government of India, Ministry of Textiles is implementing following schemes for promotion & development of handlooms and welfare of handloom weavers across the country:

1. National Handloom Development Programme (NHDP)
2. Comprehensive Handloom Cluster Development Scheme (CHCDS)
3. Handloom Weavers’ Comprehensive Welfare Scheme (HWCWS)
4. Yarn Supply Scheme (YSS)

Under the above schemes, financial assistance is provided for raw materials, purchase of looms and accessories, design innovation, product diversification, infrastructure development, skill upgradation, lighting units, marketing of handloom products and loan at concessional rates.

1.          National Handloom Development Programme (NHDP)

1. 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, Hathkargha Samvardhan Sahayata, 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. The proposals are recommended by the State Government.

1. 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.

1. Weavers’ 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

1. HATHKARGHA SAMVARDHAN SAHAYATA (HSS):

Hathkargha Samvardhan Sahayata (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.

1. 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.

1. “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.

1. 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 sale of Rs. 34.72 crore has been reported through the online portal as on 31-03-2019.

1. Urban Haats are 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.

2.          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 and Guntur districts and Godda and 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, lighting units funded 90% and other common infrastructural projects like Design Studio, Marketing Complex, Value Addition Centres and Publicity are funded by the Government of India to the extent of 80%.

3.          Handloom Weavers’ Comprehensive Welfare Scheme

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

4. 4.         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 at 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.

The details of funds released for handloom activities to various States under National Handloom Development Programme (NHDP) and Comprehensive Handloom Cluster Development Scheme (CHCDS) during the last three years is Annexed.

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 above funds released to the implementing agencies as per the proposals initiated by them and utilization of the previously released funds. The details of total funds and released during the last three years is as under:

(Rs. in crore)

S. No.	Name of the Scheme	Total funds	Funds released
01	Handloom Weavers’ Comprehensive Welfare Scheme	63.55	53.59
02	Yarn Supply Scheme	616.91	588.03

ANNEXURE
(Rs. in Crore)
S. No.	Name of the States	Funds released during 2016-17 to 2018-19
1	Andhra Pradesh	23.56
2	Bihar	5.63
3	Chhattisgarh	1.22
4	Delhi	0.22
5	Himachal Pradesh	2.49
6	Haryana	0.04
7	Gujarat	3.56
8	Kerala	1.15
9	Madhya Pradesh	3.00
10	Maharashtra	2.78
11	Jammu & Kashmir	4.82
12	Jharkhand	11.00
13	Karnataka	2.61
14	Orissa	12.96
15	Rajasthan	0.81
16	Tamilnadu	95.08
17	Telangana	2.93
18	Uttar Pradesh	23.99
19	Uttarakhand	0.90
20	West Bengal	22.03
	Total	220.78
	NER
21	Arunachal Pradesh	2.480
22	Assam	49.10
23	Manipur	4.32
24	Mizoram	1.77
25	Nagaland	4.16
26	Meghalaya	0.08
27	Sikkim	0.97
28	Tripura	1.46
	Total	64.34
	Grand Total	285.12