March 8, 2002

    All the Handloom weavers and their Associations would continue to get hank yarn net of CENVAT and that it would be National Handloom Development Corporation (NHDC), National Textile Corporation (NTC), State Handloom Corporations, Apex Societies or other Agencies approved for hank yarn supply by the State Government who would pay CENVAT which will be reimbursed to them. The necessary instructions in this regard have already been issued to all concerned on 1^st March, 2002. These agencies as well as the State Governments have already taken necessary action to ensure that the entire Hank Yarn Supply System is in place and no adverse effect is experienced by the handloom weavers. The Hank Yarn Supply System would remain as smooth as it was earlier, and the Handloom Weavers will continue to get yarn net of CENVAT.