BACKGROUNDER
The 10th
Plan envisages upgradation of the powerloom sector so as to improve
the quality of production and productivity, at the same time providing
welfare measures for ensuring a social safety net to the powerloom
workers and weavers. Taking into consideration the WTO requirements
and urgency for technological upgradation of the sector, the priority
to the sector has been up-scaled. The Planning Commission has
allocated Rs.60 crore during the 10th Plan period,
and the revised annual budget outlay for the year 2002 – 03 is
Rs.691.46 lakh.
The main objectives
of the Powerloom Schemes are to make investment in the sector
attractive by decreasing the size of capital investment required;
to increase productivity thereby bringing about cost competitiveness;
to improve significantly the quality of fabric - defect-free fabric
as the essential standard and compatibility with world standards
as the desirable criterion; to continue to provide avenues of
employment; to provide a social safety net for the workers; and
to improve export performance.
The major scheme
in the 10th Plan will be strengthening and modernisation
of the Powerloom Service Centres (PSCs). The Ministry of Textiles
had set up a Committee to review of the funding, functioning and
management of the PSCs. The Government has accepted the recommendations
of the Committee. Scheme-wise break up of the 10th
Plan outlays are:
(Rs. in lakhs)
|
Name of scheme
|
X Plan
(2002-03)
Allocation
|
Annual Plan
(2002-03)
Allocation
|
R.E. for
2002-03
|
|
Modernisation
and strengthening Of PSCs
|
5500
|
850
|
595.00
|
|
Support to
computer-aided Design Centres
|
200
|
200
|
74.11
|
|
Welfare of
workers
|
300
|
150
|
22.35
|
|
Total
|
6000
|
1200
|
691.46
|
Powerloom Service
Centres
Since the 7th
Five Year Plan period, 44 Powerloom Service Centres (PSCs) have
been established to assist the decentralized powerloom sector.
Located in major powerloom concentration areas in different States,
these Centres provide a variety of services, including training,
testing facilities, technical consultation, design development
and diversification to powerloom units and weavers. 21 PSCs have
been provided with modern machines and equipment such as shuttle-less
looms of different types. The delivery, installation and commissioning
of machinery and equipment in these 21 PSCs are almost complete.
Provision has been made in the 10th Plan for strengthening
the remaining 23 PSCs. The Implementation Committee for monitoring
the modernisation of PSCs has also fixed the parameters to measure
the performance of the PSCs in terms of target.
Computer Aided
Design Centres
In order to facilitate
the creation of new designs, improvement of the designs and production
in the fast changing global trends in fashion, 17 Computer Aided
Design (CAD) Centres have been set up at Coimbatore, Karur, Komarapalayam
and Somanur (Tamil Nadu), Surat and Ahmedabad (Gujarat), Solapur,
Icchalkaranji, Bhiwandi and Mumbai (Maharashtra), Bhilwara (Rajasthan),
Ghaziabad (U.P.), Bangalore and Dodballapur (Karnataka), Burhanpur
and Indore (M.P.), and Panipat (Haryana). The Government provides
a recurring grant of Rs. 6.75 lakh per annum to each centre, which
include salaries of staff. Each CAD Centre is expected to be self
sufficient with regard to recurring expenditure within a period
of five years. Out of 17 CAD Centres, seven Centres have already
completed the norm period of 5 years. Rs. 2 crore has been provided
by the Government to continue to fund the CAD Centres, which have
not completed the five-year norm period.
Welfare of Workers
The Government of
India in association with the Life Insurance Corporation of India
has introduced a Group Insurance Scheme since 1992-93 for the
powerloom workers who are likely to be affected due to globalisation.
Under this scheme, powerloom workers aged between 18 years to
60 years and earning a minimum average pay of Rs. 700/- per month
can join the scheme. So far 19,424 persons have availed this facility.
In order to obtain a greater response, the scheme has been redrafted
and is awaiting approval of the Planning Commission. This scheme
will be implemented through PSCs.
A new Scheme is under
preparation for Workshed under which the Central Government proposes
to advance 25 per cent subsidy for construction of powerloom sheds
for units that are willing to modernise with a prescribed minimum
number of automatic/semi-automatic looms, provided the State Government
concerned or some other agency is able to provide land. Another
proposal to cover One lakh powerloom workers under Group Insurance
and 2000 looms under a pilot scheme for worksheds costing Rs.
5 crore is in the process of inter-ministerial consultation.
Capital Incentive
to Powerloom Units in the Decentralised Sector
Considering the lukewarm
response to the existing Technology Upgradation Fund Scheme (TUFS),
a new scheme for providing 20 per cent direct subsidy, delinked
from credit, especially for the decentralised powerloom sector
is under preparation with a Plan outlay of Rs. 48.4 crore. The
aim of the proposal is to motivate the entrepreneurs of the powerloom
units in the decentralised sector to set up modern semi-automatic/automatic
and shuttleless looms, costing up to Rs. 50 lakh. They can avail
of 20 per cent of project cost as direct capital incentive delinked
from institutional credit, which will enable them to access funds
from all sources available to them. The proposed capital subsidy
will increase the pace of modernization and improve the much-required
quality of fabric enabling the country to retain a competitive
edge in the global textile market.
