Subject:

Minutes of Fifth meeting of National Implementation Monitoring &

Review Committee (NIMRC), held at New Delhi on 01 August, 2012 Decisions
taken
The fifth meeting of NIMRC was held on 1.8.2012 chaired by Smt. Kiran Dhingra,
IAS, Secretary (Textiles) and co-chaired by Dr. Prakash Bakshi, Chairman, NABARD. The
list of participants is annexed.
Smt. Monika S. Garg, DC (Handlooms), Ministry of Textiles welcomed the
participants, briefed about the Package and explained the roles and responsibilities of each
players i.e. State Government, Banks NABARD HQ and NABARD RO. DC (Handlooms)
expressed the view that scheme was approved on 24th November, 2011, still package could
not move forward due to confusion amongst various stakeholders on varied issues.
NABARD has now issued clear operational guidelines for loan waiver which are at Ann.IV.
Banks are expected to disseminate them to the branch level.
DC (Handlooms) expressed concern that some States had not yet taken all the
preliminary steps for implementation. It was clarified that reforming handloom cooperative
societies included providing them functional autonomy and democratizing the functioning of
the societies. To accomplish the task of loan waiver in a time bound manner, following
operational strategy was articulated by DC (Handlooms):

States are required to

make budgetary provision in the respective State budget.
transfer their share to NABARD.
complete statutory audit of handloom weavers Apex and Primary cooperative
societies as on 31.3.2010.
send the audit report of all functional societies to the NABARD for
identification of viable and potential viable socieites by the States/NABARD.
Help NABARD in identification of viable and potential viable societies

NABARD is expected to
get auditors from State Governments and if they are not available, then
NABARD is required to identify Chartered Accountants (CAs) for conducting
special audit.
to train the auditors selected.
to conduct special audit (as per the relaxed norms of viability of cooperative
societies) in order to assess amount for loan waiver for each society.
The assessed recapitalization amount is required to be approved/recommended by
SIMRC.
Then NABARD is expected to transfer funds accordingly which will amount to loan
waiver of the society.

Chairman, NABARD stated that Financial Package for Handloom Sector is very
important package for the Handloom Sector, which is very important in terms of employment
generation next only to agriculture. He emphasized that scheme is not an open ended one.
He expressed the concern that many States have not signed MoU inspite of the fact that there
is clear provision in the Package. He outlined the roadmap for the speedy implementation of
the Package which include, (i) in SLBC meeting review of Loan Waiver scheme should form
one of the agenda; (ii) Chief Secretarys representative must attend SLBC meetings. He
wondered, if banks can issue Kisan Credit Cards (KCCs), then why Weaver Credit Cards
(WCCs) had not been issued.
Secretary (Textiles) directed
- States must sign the MoU and make the budget provision latest by 31.8.2012.
- States must send Special audit reports to NABARD by 30.9.2012
Secretary stressed that failing the above, it will be presumed that State is not
interested in availing benefits of the package and accordingly GoI will strike that state
off the beneficiary list and work out its financials accordingly.
Sh.P.V. S. SuryaKumar, CGM, NABARD, Delhi anchored the agenda. The agendawise decisions taken are indicated below:
Agenda

Decisions taken
th

Confirmation of the The minutes of the 4 NIMRC were confirmed after deleting
minutes of the last
points 3(b) and 3(c) i.e.
meeting
3(b) Release of recapitalization amounts including waiver of
loans to societies.
3(c) Release of individual waiver amounts.
Signing of Memorandum of Understanding (MoU) is a must for
the release of funds under the package
Action Taken Report
The ATR was approved and Secretary, Textiles
reiterated that the special audit should be undertaken based
on the relaxed guidelines of potentially viable societies issued
by GoI vide their order No. 6/2/99/DCH/2011-12/DHDS dated
11 June 2012 as decided in 4th meeting of NIMRC and as
approved by Department of Expenditure. It was clarified that the
condition for rotation of the working capital has been relaxed
to the extent that the society may not have been sanctioned
cash credit limit by the bank for the past two years. If the
society has not been sanctioned such credit limit by the bank
for past two years and it is operating from their own funds and
production and sales are routed through some other bank,
then that society will also be covered under the package.
It is desirable that all the functional societies be considered.
The States must provide the audited accounts of all functional
societies to NABARD. Then, NABARD should identify viable
and potential viable societies out of them, on the basis of their
records and documents and as per the definition of viable and
2

potential viable societies approved / relaxed in the 4th NIMRC

meeting and communicated vide DC(HL)s letter dated
11.5.2012. Then, NABARD should conduct special audit of
viable and potential viable societies so identified and indicate
the loan waiver amount to be vetted by next SIMRC.
Status
of
claims
1) States should take immediate steps for signing of MOU,
received by NABARD
making budgetary provisions towards their share under
Handloom Package and release their share to NABARD
latest by 30.9.2012.
2) NABARD may consider deployment of more Auditors
(Chartered Accountants from the market) in states of
Karnataka, Uttar Pradesh, Jharkhand, Bihar etc. for
expediting the completion of Special Audit.
3) NABARD has received claims from 5 States (namely
Uttarakhand, Kerala, Gujarat, TN and AP) for societies
amounting to Rs. 11419.12 lakhs and claims from 6 States
for waiver of individual weaver loans (from the states of
Uttarakhand, UP, Karnataka, Kerala, Odisha and Assam)
amounting to Rs. 1744.49 lakhs ( Annexure-I).
4) So far only Kerala State Govt. has completed all the
necessary pre-implementation processes to enable
NABARD to release the GoI Scheme.
5) Secretary, Textile requested all the states to complete the
required processes.
Progress under the
1) Updated progress under the package is enclosed in
Package
Annexure-II.
2) It is the responsibility of the State Govts. to complete all
the processes by 30th Sept 2012. If the same is not done by
the said timelines, it would be construed that the States
dont want to be part of the package.
Schedule
of NABARD must take urgent steps in coordination with State
completion of Special Governments to complete the Special Audit as per the suggested
Audit
schedule (indicated in the Agenda 4) and convene SIMRC meeting
within next one week. Schedule is enclosed as Annexure-III.
Issues
related
to
Individual
Loan
Waiver
1. Need for separate
1. No separate MoU is required with the banks.
MoU with banks

2.

Insistence
fresh loans

on

3.

Inclusion
private banks

of

2. There is need for co-ordination between district level

functionaries of the Directorate of Handlooms and Bank
branches. The issue of fresh loans by banks may be
monitored by Block, District and State Level Forums
(BLBC, DCC/DLRC and SLBC).
3. Not accepted.
3

4.

Grievance
Redressal
Mechanism
Societies

for

5.

Treatment of loan
accounts where
amounts
have
been
repaid
subsequently

6.

Prior
commitment of
Govt. of India
and State Govt.

1. Relaxation in norm
for positive net
worth.

4. Representative of Directorate of Handloom in the district

would receive grievances and redress them.

5. If the societies have paid their overdues at any point of

time, the amount would be netted out of recapitalization.

6. Prior commitments shown in balance sheet as on 31 March

2010 but subsequently paid would be netted out of the
recapitalization.

1. Over and above the relaxation already approved, further

relaxation would be considered at a later date, when
existing cases under relaxed norms had been cleared by
special audit.

2. Negative networth
of societies and
NPA provisioning
by bank

2. Directorate of Handlooms may give specific cases to

NABARD ROs within one week for examination.

3. Chairing of DMRC
and

3. Representative of the Directorate of Handloom in the

district may convene and chair the DIMRC.

4. Inclusion of Apex
Society merged to
State
Handloom
Dev. Corporation
after cutoff dateTripura.

4. Since Handloom Development Corporations are not

covered under the Package, the society would not be
included for recapitalization.

Loan waiver in respect of individual weavers.

DC (HL) explained that loans taken by handloom weavers for weaving purposes are
being waived off and 100% of principle and 25% of interests overdue as on 31.3.2010 is
being borne by GOI. To avail benefit under the scheme, the weaver has to approach his bank
with a request on plain paper for waiving the loan and the bank, in turn will submit the
consolidated claims to NABARD in a prescribed proforma. The bank will also undertake to
sanction fresh loan to the weaver. In addition, the Banks have to suo-moto examine their
records and find out loans taken by weavers for weaving purposes and submit the claims to
NABARD for loan waiver, as per the Scheme. DC (Handlooms) expressed the concern that
Banks are expected to come forward for availing benefits under Loan Waiver Scheme as it
will liquidate their NPAs and clean their portfolio. Lending Institutions are required to
undertake following measures:

Identify the borrowers/defaulters, display borrowers list,

contact individual weavers for availing benefits under the scheme
obtain undertaking to carry out handloom activity in future
Sanction fresh credit
Bank Headquarters should issue clear guidelines for loan waiver to their branches

NIMRC observed that progress is slow and only a sum of Rs.19.14 crore has been vetted
by various SIMRCs benefiting 10520 individual weavers.

Agenda : Progress of Implementation of Institutional credit component

DC(HL) stated that the second package Institutional Credit provides margin
money, credits at subsidized rates of interest with credit guarantee. In the process of
implementation, Ministry of Textiles had taken initiatives by organizing 637 awareness
camps in weavers pocket to spread the message about the package and facilitate the process.
More than, 3 lakh applications were collected no substantial progress has been made
in respect of issuing the weaver credit cards and disbursal of fresh loans by the respective
banks.
Chairman NABARD indicated that there is a need for intensive monitoring and
coordination at all levels of Directorate of Handloom and Bankers at all the existing forums.
All the bankers are requested to give Action Plans to DC Handloom, GoI and PCD,
NABARD, Head Office with time lines to achieve maximum coverage under Weaver Credit
Card.
Secretary (Textiles) would impress upon the CMDs of all public sector banks in the
next review meeting organized by Deptt. of Financial Services (DFS), Ministry of Finance.
NABARD, being Implementing Agency for Institutional Credit, to coordinate
and hold meetings with the Banks and State Governments, directly as well as through
their Regional Offices, NABARD was also requested to conduct awareness workshops at
block level through BLBC meetings.
The target regarding issuance of Weavers Card has to be suitably divided
amongst all the banks based on discussions in SLBC/DCC. NABARD will approach
Department of Financial Services and RBI for this purpose.
DC (Handlooms) apprised about Action Plan which consists of AIR
Broadcasting. NIMRC desired that Head office of bank should issue instructions to
bank branches regarding issuance of Weavers Credit Cards and targets for fresh loan
disbursal.
Agenda: Issue of certification of bank claims for individual waiver by Chartered
Accountant/Statutory Auditor
As per the instructions issued to banks on Individual Waiver Scheme
1. The ultimate responsibility of implementing the scheme successfully rests with the
lending institutions.
2. Lending Institutions are expected to assess the claims in their branches strictly in terms of
the GoI Scheme. They are suggested to get the same audited by the branch auditors/
internal/ concurrent auditors before forwarding to NABARD.
3. Measures like identification of borrowers, display of borrowers list, obtaining undertaking
to carry out handloom activity in future and avail fresh credit as per bank terms &
conditions, publicity of the scheme perse etc as prescribed in the scheme may be adhered
to.
4. It will be obligatory for the bank to maintain borrower-wise detail records/ data against
which the claims are preferred. GoI./ NABARD has a right to conduct audit of the
records, if required, in future.
5. The Proforma for the individual claims is indicated in Annexure-4.
6

State wise, Bank wise claim has to be received at NABARD RO.

The Bank has to give a Certificate for waiver of old loan and issue a sanction letter for
offering a fresh loan.
8. Bank Management may consider authorizing write off at branch level or Regional Office
level.
6.
7.

Model Operating Instructions is given in Annexure V.

Agenda : 10% Hank Yarn Subsidy Scheme

DC (Handlooms) explained that GoI is giving 10% subsidy on hank yarn to handloom
weavers, for which weavers are being issued yarn pass books. Against the target of issuance
of pass books for covering 5.87 lakh handlooms, till 20th July, 2012, only 1.82 lakh
handlooms have been covered. The percentage with regard to achievement of coverage of
handlooms against the target is 31%, which is very low, particularly under Cooperative Fold
where percentage is just 13%.
To expedite the implementation process, DC (Handlooms) suggested the State
Governments to identify / verify handloom weavers and submit details to NHDC, which in
turn will issue pass books to the individual weavers. The work of identification / verification
of individual weavers is moving at snails pace. State Governments intervention is required
in this regard.
In some of the State, work of identifying and verification of weavers is extremely
slow and significantly lagging behind. In case of Tamil Nadu, coverage of handlooms where
yarn pass books has been issued under individual weaver fold is just nil. In the case of West
Bengal, coverage is just 2% and in case of Andhra Pradesh coverage is 7% (3789 handlooms
against the target of 54000). The State Government has explained that more than 30000
handlooms under individual weaver fold has been submitted which is under instructions.
In her concluding remarks, Secretary (Textiles) again reiterated that Financial
Package for Loan Waiver is available only till 31st December, 2012. She emphasized that
Handloom Department in the respective States must play coordinating role for completion of
regular audit as well as special audit. She warned the laggard States that if pre- release
formalities were not be completed by 30.9.2012, then the concerned States would be deleted
from the beneficiary list.

ANNEXURE-I
State wise Claims
Rs. in lakh
State

Society recapitalization

Individual
waiver

Total

Not released due to

Apex

Primary

Uttarakhand

19.12

3.71

22.83

State Govt. share not yet

received

UP

640.54

640.54

Karnataka

50.22

50.22

Kerala

782.00

0.54

782.54

Odisha

787.00

787.00

Gujarat

211.00

211.00

Tamil Nadu

2607.00

2607.00

Assam

262.48

262.48

Andhra
Pradesh
Grand total

7800.00

7800.00

MOU not signed

State Govt. share not yet
received
State Govt. share not yet
received
Claim received on
31/07/2012
MOU not signed
State Govt. share not yet
received
State Govt. share not yet
received
MOU not signed
State Govt. share not yet
received
MOU not signed
State Govt. share not yet
received
State Govt. share not yet
received

1744.49

13163.61

10618.00 801.12

ANNEXURE-II
Progress under the Package
1
No. of states given letter of
Commitment
2
No. of states issued
Administrative order
3

No. of states signed MOU

No. of states which made

budgetary provisions
No. of states where auditors
have been trained for Special
Audit

Status of Special audit of

AWCS

Status of Special Audits of

PWCS

25 states (except from Arunachal, J&K, Pondicherry,

Delhi)
16 states (except Bihar, Arunachal, Sikkim,
Chhattisgarh, Delhi, UP, HP, Haryana, J&K, Meghalaya,
Nagaland, Pudducherry, Punjab)
13 states ( except Assam, Arunachal, Chhattisgarh, Bihar,
Delhi, H.P, J&K, Manipur, Meghalaya, Nagaland, Orissa,
Puducherry, Punjab, Sikkim, Tamil Nadu, Tripura, U P)
25 States (except Assam, Chhattisgarh, Nagaland, Punjab)
Completed : 15 States - Rajasthan, MP, Kerala,
Tamil Nadu, Uttarakhand, Himachal Pradesh,
Maharashtra, Gujarat, Andhra Pradesh, UP,
Assam, Mizoram, Manipur, Meghalaya West
Bengal, Karnataka and Orissa.
ii) Not yet started: For the remaining important
states viz; Bihar, Chhattisgarh and Jharkhand, one
common programme is being organized in Aug
2012.
i) Complete
: 7 states viz. A.P, Assam, HP,
Orissa, Mizoram, Tamil Nadu, Gujarat, Manipur
ii) In progress
: UP (7 apex socities out of 9
completed), and Maharashtra
iii) Not yet started : Bihar, Chhattisgarh,
Jharkhand.
i)

The Apex societies in Kerala and West Bengal are un

viable and dont qualify.
Apex societies Under liquidation: Maharashtra (3 out of
4), Haryana and Madhya Pradesh.
i) Completed: HP, Uttarakhand, and substantially in
Gujarat, Mizoram & Manipur.
ii) In progress: Assam, AP, Kerala, TN, MP,
Maharashtra, Meghalaya, UP
iii) Not yet started : WB, Rajasthan, Bihar, Odisha,
Haryana, J&K, Chhattisgarh, Tripura,
Nagaland (societies not yet identified),
Punjab, Karnataka, Jharkhand & Sikkim

10

ANNEXURE-I Table: Schedule of completion of Special Audit

S.
N

Name of
State

Andhra
1 Pradesh

Nos. of
viable/
Potentially
viable
societies
identified
Ape
x

PWC
S

519

NA

Special Audit
complete as on
30.07.12

Apex

PWCS

in
progress

218

in
progre
ss

Assam
2
1

48

4 Chhattisgarh

16

Himachal
5 Pradesh

125

Expected audit completion (no. of societies)

By
31.07.12

By
15.8.12

By
31.8.12

218

318

519

257
1
Apex,20
PWCS

Bihar
3
-

125
2

272

125

yet to start

Madhya
8 Pradesh
9 Maharashtra

234

under
liquid
ation

123

in
progress

46

46

78

16

11 Mizoram

69

69

70

77

in
progre
ss

10

12

14 Tripura

25

272

150

200

234

16

Orissa
690

2
Apex,10
0 PWCS

50
PWCS

123

10 Meghalaya

13 Tamil Nadu

1 Apex
,48
PWCS

16

Karnataka
7 Kerala

By
30.9.12

485
yet to
start

40

77

575

690
25

11

Uttar
15 Pradesh
16 West Bengal

415

in
progre
ss

255

yet to
start

202

unde
r
liqui
dati
on

318

150

16

22 Manipur

1377

23 Nagaland

NA

NA

Haryana
19
20 J & K

100, 9
Apex

300

415

100

150

255

150

202

yet to
start

17 Delhi
18 Gujarat

22

50

50

yet to
start

1 Apex ,
16
PWCS

Jharkhand
21

24 Pondicherry
25 Punjab

0
248
1

195

Rajasthan

100

100

677

1377

Yet to
start
in
progress

26

in
progre
ss

95
8

27 Sikkim

28 Uttarakhand

100

(For Scheduled Commercial Bank/RRB/State Cooperative Bank)

Scheme for Debt Waiver extended under Individual Weaver Scheme of the Government of
India (GoI)
Name of the Bank Amt. in Rs.
S.
N

Type of Handloom
Weaver Borrowers
(*)

No.
of
A/c

Overdues as on

Out of Colmn 6,

Remaining Ove

31-03-2010 (*)
PL

Intt.

Total

Govt. of India
Overdue borne by
the Bank

Overdue borne by
the Borrowers

PL

12

Intt.

Total

PL.

Intt.

Total

PL

Intt.

Total

10

11

12

13

14

a Individual weavers
b Handloom who are
member of Self Help
Group
c

Weavers who are

member of Joint
Liability Group

d Master Weaver
Total

Note: Share of GoI and the State Govt is 80: 20 ( 90:10 in respect of Spl. Category states viz Jharkhand, Chhatisgarh,
Uttarakhand, Himachal
Pradesh, J&K and states in NER ) and the aggregate in Colmn 15 & 18 should not exceed Rs 50,000/- per a/c.
$ In respect of Sch. Commercial Banks, the state wise break up of claim is enclosed for seeking
claims separately from the respective State Government.
CERTIFICATE
1. We undertake that the claim has been made in accordance of the scheme notified by the
Government of India vide notificated No 6/2/99-DCH/FP/DHDS dated 28.11 2011. Further, we have
obtained necessary undertaking from the existing borrowers that they will undertake handloom as an
economic activity by availing fresh credit from us once their overdue amount is written off.
2. We also certify that the record of each borrower covered under the scheme has been maintained by
the Bank and the amount has been arrived at by aggregation of the above data received from branches/
constituents and the bank will refund any amount to the GoI or the State Government, if found at a
later stage that it has been wrongly claimed due any reason whatsoever.

Signature with date & Seal of the Competent Authority of the Bank
CERTIFICATE FROM AUDITORS
Certified that the claims lodged by the Bank are in conformity with the scheme notified by the Govt.
of India vide their notification No. dated and are true to the best of my knowledge and belief
based on the records made available to me by the Bank. The records made available to me were also
found to be satisfactory.

Signature with date & Seal of the Auditor

13

15

Annexure V
Model Operating Instructions- Cooperative Banks
Operational Instructions for Settlement of Claims from Lending Institutions under the
Handloom Package of the Govt. of India (GoI)
The operational instructions for the banks for seeking claims under the Revival, Reform and
Restructuring Package for the Handloom Sector of the Ministry of Textiles, Govt. Of India in
terms of its Office Memorandum No 6/2/99 -DCH/FP/DHDS dated 28.November 2011 are as
under:
A. Settlement of the recapitalisation claims of the weavers society
The branch Manager is expected to undertake the following activities:
a. Make a list of all societies which have been given loans (Term loan, CC Limit and
other loans) from the Branch.
b. Prepare a docket sheet indicating the current position of Share Money invested by
Weaver Society in DCCB, Saving Bank Accounts ,Fixed Deposit/term deposit
Account and Loan Accounts (docket sheet is indicated in annexure I).
c. Indicate Society wise amount receivable by bank as per the conditions of the Package
d. Branch manager must indicate and confirm that the 75% of interest as on the date of
loan becoming NPA,penal int.inspection charges etc.has been waived by the bank and
has been credited to the loan account of the society (written off)
e. Issue Balance confirmation certificate and assist in the special audit of the Weavers
Societies attached to the branch.
f. Indicate the status of fresh loans issued to the Society as it is mandatory as per the
instructions contained in the GoI Package guidelines.
g. Once the recapitalisation assistance is received , the branch must indicate/confirm that
the balance amount of recapitalisation assistance after adjusting the bank dues have
been duly credited in the current/saving Bank accounts of the Society.
B. Individual Waiver Scheme
1.
2.

3.
4.

5.

The ultimate responsibility of implementing the scheme successfully rests with the
lending institutions.
Consolidated claims may be submitted by the Banks to NABARD strictly in Proforma I
(encl) within 120 days of notification of the scheme. They will be settled by NABARD
on a one time basis subject to fulfilment of terms & condition prescribed in terms of the
Scheme Annexure III of the GoI Office Memorandum No 6/2/99 -DCH/FP/DHDS dated
28.November 2011 .
Claims once settled will not be reopened under normal circumstances. However, it may
be reexamined as a very special case and the right to re-examine will rest with NABARD.
It is envisaged that the share of waiver assistance of the GoI and the State Government
will be released only upon the receipt of an undertaking from the concerned lending
institutions that the identified handloom weaver intends to carry out the handloom activity
in future by availing fresh credit support from the lending institutions. Lending
institutions may devise their own suitable proforma for the same.
Lending Institutions are expected to assess the claims in their branches strictly in terms of
the GoI Scheme. They are suggested to get the same audited by the branch auditors/
internal/ concurrent auditors before being forwarded to NABARD. Measures like
14

6.

7.

8.

9.

10.
11.
12.

identification of borrowers, display of borrwers list, obtaining undertaking to carry out

handloom activity in future and avail fresh credit as per bank terms & conditions,
publicity of the scheme perse etc as prescribed in the scheme may be adhered to.
It will be obligatory for the bank to maintain borrower-wise detail records/ data against
which the claims is preferred. GoI./ NABARD has a right to conduct audit of the records
, if required.in future.
The lending institutions are expected to bear 75% of the overdue interest and 100% of
penal interest, if any levied.The remaining 25% of the overdue Interest and Principal
amount will be jointly borne by the GoI and the State Govt as indicated in para 9.
The GoI and the State or UT Govt will share the waiver assistance in the ratio of 80:20.
However this sharing pattern will be in a ratio of 90:10 in respect of Special Category
states as notified by the GoI. i.e., J&K, Himachal Pradesh, Uttarakhand, Chhatisgarh,
Jharkhand, states in NER etc.
The maximum amount of waiver assistance (Principal + Overdue Interest), which can be
extended per borrower, is Rs 50,000/-.Any amount exceeding Rs 50,000/-, if any, will be
borne either by the borrower whose overdue is proposed to be written off for the purpose
of issuance of fresh loan or by the lending institution as decided by them .
The cost of certification by Statutory Auditors/ Charted Accountant, if any, will be borne
by the lending institution.
NABARD will settle the claims on a case to case basis. NABARD will release the share
of GoI only upon receipt of the funds from them.
On the basis of consolidated claims settled by NABARD (a copy of which will be
forwarded to the concerned Director of Handlooms,nodal department, of the State/ UT),
the lending institutions may directly seek the share of the State / UT from them.

C. Interest Subvention Scheme

1.
2.
3.

4.
5.

6.

7.

One time annual claims will be entertained directly from lending institutions by
NABARD, within 120 days of close of the financial year to which it relates.
One consolidated claim on an annual basis for the lendings made during each of the threeyear may be preferred (strictly in the prescribed Proforma -II) by the lending institutions.
All lendings made by the Lending institutions (Sch. Commercial Banks, RRBs,
State/District Central Cooperative Banks) for working capital requirements and marketing
purposes, if any, excluding capital cost in the handloom sector to Apex & Primary
Handloom Weavers Societies; Individual weavers, weaver member of defunct/ non
working weaver societies, Mutually Aided Coop. Societies, Societies outside the
cooperative fold, Producer Group Companies; JLGs, SHGs/ HWG, Master Weavers etc
will be eligible to receive 3% p.a. interest subvention support from the GoI.
Advances to State Handloom Development Corporations (SHDCs) will not be eligible
for interest subvention.
Lending Institutions are expected to assess branch-wise claims strictly in terms of the GoI
Scheme. They are suggested to get the same audited by the branch auditors/ internal/
concurrent auditors before being forwarded to NABARD.
It will be obligatory for the bank to maintain borrower-wise detail records/ data against
which the claims are preferred. GoI/ NABARD has a right to conduct audit of the records
, if required, in future.
The cost of certification by Statutory Auditors/ Charted Accountant, if any, will be borne
by the lending institution.
15

8.

NABARD will settle the claims on a case to case basis. NABARD will release the share
of GoI only upon receipt of the funds from them.
Annexure I

Proforma of Balance Confirmation Certificate of the Society (as on 31 March 2010)- from the Bank

Name of the Apex/ Primary Weavers' Society:

Name of the State:

This is to certify that balances outstanding in various accounts of the.....................................

(Name & address of AWCS/PWCS to be indicated) maintained in our Branch as on 31 March
2010 were as detailed below:

(Amount Rs.)
S.N

Particulars

Balance Outstanding

Amount

Interest (Intt.) / Dividend payable (if any)

as on 31 Mar' 2010 *

Share Capital invested

by the AWCS/PWCS.

Deposit Accounts

Amount

Interest Payable (Intt.)* (if any)

as on 31 Mar' 2010

Savings
Current
Term (Fixed) Deposits
* including accrued but not due as on 31 March 2010.
3 Details of loan status certificate
Sl. No.Type
Limit sanctioned
of loan
Year
1

Amt. of
insurance
premia /
inspection
charges / penal
interest
debited to

Renewal in
2009 10
(Yes / No)

Amount
(Rs.)
2

Admissibl
e Back
ended
subsidy
pending
adjustme
nt

Amount
outstanding as
on 31.03.2010 as
principal

If yes, total
If not renewed credits to a/c in
credit in a/c the yr. of sanction / renewal
during 2009 10
Year
Amount (Rs.)

Of which
overdue as on
31.03.2010

Date of account
becoming NPA

Interest
receiva
ble as
on th
date of
NPA

Total
interest
receiva
ble
includi
ng
penal

16

borrower and
included under
overdue
principal
8

Sl. No.

interest
as on
31.03.2
010
9

10

Other Date of Amt.

loans
sanctio sanctio
(Specify n
ned
)
Term
loans

11

12

13

14

Princip
al amt.
Outstan
ding as
on
31.03.2
010

Of the
outstan
ding
under 5
overdue
loans

Amt. of
insuran
ce
premia
/
inspecti
on
charges
/ penal
interest
debited
to
borrow
er and
include
d under
overdue
princip
al

Admissi
ble
Back
ended
subsidy
pending
adjust
ment

Date of
account
becomi
ng NPA

Overdu
e
interest
as on th
date of
NPA

Total
interest
receiva
ble
includi
ng
penal
interest
as on
31.03.2
010

5A

10

We undertake to bear / write off 75% of overdue interest (.i.e. Rs.

) 100% of the
penal interest/other charges if levied, the balance overdues are repaid by the Society
upon its recapitalisation.
We also undertake to give / extend fresh financial accommodation (TL/CC limit/Other
loans) to the Society as per terms & conditions of the bank.

---------------------------------- Signature & Seal of the Bank/Branch

17