2nd January, 2003
Ministry of Textiles  


CORE GROUP TO ENSURE CREDIT FLOW TO HANDLOOM SECTOR


The Minister of Textiles, Shri Kashiram Rana, has said that a Core Group has been set up to enable adequate and timely flow of credit to the handloom sector. Addressing the meeting of the All India Handloom Board here today, Shri Rana said that NABARD would have to augment the availability of credit to the sector to the desired level. The Development Commissioner for Handlooms has already started discussions with RBI, NABARD, leading commercial and cooperative banks in this direction, he added.

Shri Rana said that the 10th Plan outlay for the various schemes in the handloom sector has been enhanced to Rs.625 crore from Rs.514.46 crore during the 9th Plan. The welfare schemes like Workshed-cum- Housing scheme, Thrift Fund scheme, Health Package scheme and Insurance scheme, enable the weavers to have better dwelling units, working environment, sound infrastructure and basic amenities to safeguard the health of the weavers and to cover them and their families from natural calamities. A special contributory insurance scheme for covering one million weavers would be launched soon, he added.

The Textile Minister said that a massive programme of skill upgradation with an outlay of Rs.125 crore would be launched shortly, as announced by the Prime Minister in his Independence Day speech. He added that the Deen Dayal Hathkargha Protsahan Yojana aimed at extending financial assistance in the handloom sector from pre-loom, on-loom to post-loom activities. Out of the total outlay of Rs.625 crore during the 10th Plan, an outlay of Rs.310 crore has been earmarked exclusively for the scheme. He, however, lamented that many of the States had not come forward to extend the benefits to the weavers despite repeated reminders.

Shri Rana said that a one-time special rebate scheme for sale of handloom fabrics with a provision of Rs.100 crore was under finalisation. This scheme is aimed at liquidating handloom stocks. The handloom cloth production crossed 7500 million square metres. During 2001-02, handloom exports reached a level of Rs.2065 crore . During April-August 2002, handloom exports reached Rs.1102.34 crore as against Rs.837.53 crore, registering an increase by 31.62 per cent in Rupee terms and 26.63 per cent in US dollar terms over in the corresponding period last year.