PSC laboratories upgraded / added minor equipments during the financial year 2001-02: The laboratories of the PSCs which have been up graded / provided with minor equipments during the 2001-2002 and the estimated cost thereon are as shown below: Estimated cost of its laboratory up gradation (Rs. in lakh) (3) 13.70 04.08 04.08 24.44 08.43 05.72 03.88 13.51 13.29 01.32 08.78 24.25 05.05 04.00 04.84 23.57 00.00 04.76 01.50 00.21 00.21 01.50 00.26

Sr. No (1) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23.

Name of the PSC and state (2) ATIRA-PSC, Ahmedabad (Gujarat) MANTRA-PSC, Pandesara (Gujarat) MANTRA-PSC, Sachin (Gujarat) SASMIRA-PSC, Bhiwandi-II (Maharashtra) SITRA-PSC, Bangalore (Karnataka) SITRA-PSC, Gadag-Betagiri (Karnataka) SITRA-PSC, Karur (T.N.) SITRA-PSC, Komarapalayam (T.N.) SITRA-PSC, Palladam (T.N.) SITRA-PSC, Salem (T.N.) SITRA-PSC, Sankarankoil (T.N.) SITRA-PSC, Somanur (T.N.) SITRA-PSC, Tiruchengode (T.N.) BTRA PSC, Ichalkaranji BTRA PSC, Madhavnagar BTRA PSC, Solapur IJIRA, TXCO-PSC, Cuttack (Orissa) TXCO-PSC, Gaya TXCO-PSC, Kishangarh TXCO-PSC, Malegaon TXCO-PSC, Mau. TXCO-PSC, Trichure

22 =



COMPUTER AIDED DESIGN CENTERS So far 17 Computer Aided Design Centre (CADC) at Coimbatore, Karur, Komarpalayam and Somanur (Tamil Nadu), Surat and Ahmedabad (Gujarat), Solapur, Ichalkaranji and Bhiwandi and Mumbai (Maharashtra), Bhilwara and Gaziabad (Rajasthan &U.P. respectively), Banglore and Dodballapur (Karnataka), Burahanpur and Indore (M.P.), and Panipat (Haryana) are established in the country. The Implementation Committee set up for modernisation and strengthening of the PSCs has been entrusted to study the feasibility of new centres as well as strengthening of existing centres. PROGRAMME FOR MODERNISATION OF 2.5 INDUCTION OF 50,000 SHUTTLELESS LOOMS LAKH LOOM AND

To implement the scheme announced in the budget 2001-02, a cluster approach has been followed to enable focussed effort and a concentrated delivery of programme benefits.25 major clusters have been identified in which the programme implementation would be focussed. The powerloom service centres have been asked to act as the Led Implementing Agency, while there would be Powerloom Programme Cluster Implementation Co-ordination Committee (PPCICC) & State Level Powerloom Programme Co-ordination Committee (SLPPCC). The entire target of 2,50,000 looms to be modernised and 50,000 shuttleless looms to be inducted by the financial year 2004-05 is further sub allocated to each Regional office of Textile Commissioner in proportion to the existence of powerlooms in their respective jurisdictions. Based on this, the targets for the financial year 2001-02, Quarter-wise budget for each of the Regional Offices have also been worked out. The Regional offices have in turn been advised by the Office of the Textile Commissioner to work out cluster wise targets, in consultation with local industry and trade. The following steps, involving the Government/Semi-Government agencies and the industry have been adopted for implementation of the programme by the LIAs: • • Cluster level Workshops/Seminars to explain the importance of modernization and various schemes available for credit with soft loans for such modernization. Preparation of project profiles to clarify to the powerloom units as well as the viability & loan requirements for modernization up to different technology levels by units of different sizes. Identification of potential entrepreneurs, through the above workshops, as well as by intensive campaign by approaching individual entrepreneurs Assisting the identified entrepreneurs in project formulation and liaison with the financial institutions; and also providing techno-economic information about alternative choices of looms.

• •


Demonstration on the efficiencies & functioning of modern looms, skill Upgradation, training to weavers from plain semi automatic/automatic looms as well as modernized preparatory machinery.

Progress in implementation of the programme for modernisation:• • • Powerloom Development Cell (PDC) is set up in the office of the Textile Commissioner. Mumbai. Meetings of the Focussed Action Group (FAG) was held on 9/11/2001 & 13/9/2002. Guidelines were issued to the State Govts. to form the State Level Powerloom Programme Co-Ordination :Committee (SLPPCC). All the major Powerloom concentrated States except Gujarat has already conducted one meeting during the last one year. Powerlooms Programme Cluster Implementation Co-ordination Committees (IPPCICC) have been set up in all the major clusters. These committees met more than once since their formation. It is estimated that during April 99 to Sept.2002 , approx 3133 shuttleless looms have been installed in the decentralised powerloom sector while total no of 7845 powerlooms have been modernised. This covers the major powerloom clusters in the country. Management information System (MIS) has been finalised, discussed in Regional Heads and PSC in-charges meeting and circulated to all concerned to Monitor the quarterly programme.


This scheme covers Group Insurance for powerlooms weaver’s families and work shed to provide safety net to the powerlooms workers who are likely to be affected due to globalisation of the industry. Government of India has introduced a Group Insurance Scheme for Powerlooms workers in association with the Life Insurance Corporation of India Since 1992-93. Under this scheme Powerloom workers aged between 18 to 60 years and earning a minimum average pay of Rs. 700/- p.m. can join the scheme. So far 19,424 persons availed this facility and Rs. 7,76,960/- have been spent for this purpose. In order to obtain a greater response, the schemes have been redrafted and are under the approval of the planning commission. This scheme will be implemented through PSCs. A scheme for housing cum work shed could not be operationalised during the Ninth Plan. A new Scheme is under preparation for workshed only. Under which Centre


proposes to advance 25% subsidy for construction of powerloom sheds for units that are willing to modernize with a prescribed minimum number of automatic/semi-automatic looms, provided the State Government or some other agency is able to provide land. A proposal requiring Rs. 5 crores to cover one-lakh powerloom workers under Group Insurance and 2000 looms under a pilot scheme for worksheds is in the process of inter –ministerial consultation. Appraisal reports of major Projects and Programmes There are no projects programmes being executed by this cell where the estimated outlay/investment is Rs. 100 crores or more. At present this office is in the final stage of implementing only one project of modernisation and upgradation of PSCs (21 nos.) under the Plan Programmes of Govt. of India with a capital outlay of Rs. 16.09 crore. Financial requirements PSC modernisation. Out of the total outlay of Rs. 16.09 crores (Rs. 12.73 crore as the capital expenditure component and Rs. 3.36 crore as the Recurring expenditure component) allocated under the loomshed modernisation and Strengthening of the PSCs, the Ministry has already released Rs. 12.66 crores. HANDLOOMS The handloom sector plays a very important role in the country’s economy. It is one of the largest economic activities. About 124 lakh persons are engaged in the handloom weaving and allied activities in the country. Due to effective State intervention through financial assistance for the development and welfare of this sector, the persons engaged in handloom weaving and allied activities have been able to earn their livelihood. As a result of these measures the production of handloom fabrics has gone up to 7586 million sq. meters during 2001-2002 from a level of 500 million sq. meters in the early fifties. This sector accounts for about 19% of the total cloth produced in the country (excluding wool, silk and hank spun yarn). Production of cloth in the handloom sector
(in million Sq. Meter) Year 1997-98 1998-99 1999-00 2000-01 2001-02 IX th Plan Target Achievement 6860 7603 7272 6792 7708 7352 8170 7506 8440 7586 Xth plan Year 2002-03 2003-04 2004-05 2005-06 2006-07 Target 7725 7960 8200 8450 8700 Achievement 2958.14 (upto Sept., 2002)

IMPLEMENTATION OF Handlooms (Reservation of Articles for Production) Act, 1985


The Handlooms (Reservation of Articles for Production) Act, 1985 aims at protecting millions of handloom weavers from the encroachment made on their livelihood by the powerloom and the organised mill sectors. Eleven categories of textile articles are reserved under the provisions of the Act at present vide Reservation Order No. S.O. 557(E), dated 26.7.1996, as amended vide Order No. S.O. 408(E), dated 2.6.1999 and S.O. 405(E) dated 25.4.2000. The physical and financial progress on implementation of the Handlooms (Reservation of Articles for Production) Act, 1985 by various implementing agencies during 1998-99 to 2001-02 along with the targets for 2002-03 and achievements up to 9th December, 2002 are as given in the following table: Sl. Physical No. 1 Target of Inspections 2 No. of powerlooms inspected 3 No. of FIRs lodged 4 No. of Convictions 5 Cases in pipeline Financial 1 Budget grant (Rs. in lakh) 2 Expenditure (Rs. in lakh) * Upto 09.12.2002 1998-99 96,041 64,691 28 5 1998-99 76.00 58.13 1999-00 2000-01 2002-03 (As on 09.12.2002 1,40,700 1,50,000 1,52,925 89,642 2001-02 30 26 2001-02 90.00 57.44 17 19 41 2002-03 95.00 39.00*

1,30,532 1,30,532 1,76,523 1,43,969 25 22 1999-00 80.00 78.39 27 30 2000-01 96.00 56.06

The Central Government has also been providing assistance to the States/UTs under the scheme “Central Assistance to States/UTs for setting up of Enforcement Machinery”, to ensure effective implementation of the Act, at State level. The details of State wise assistance extended by the Central Government during the years 1998-99 to 2001-02 have been as below: Sl.No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Name of the State Andhra Pradesh Orissa West Bengal Uttar Pradesh Karnataka Gujarat Rajasthan Kerala Madhya Pradesh Haryana Tamil Nadu Bihar TOTAL Amount released (Rs. in lakh) 1998-99 1999-00 2000-01 5.69 5.78 5.90 15.42 16.37 14.33 5.43 6.07 5.27 1.88 6.93 9.78 6.86 4.15 33.00 27.99 63.77 4.92 59.54 70.00 110.00 2001-02 17.29 9.29 5.52 67.90 100.00 2002-03 -


The central funding to States/UTs has been cent per cent during the Ninth Five Year Plan as per the prevailing guidelines of the scheme. During the 10th Five Year Plan, Central Assistance is proposed to be continued on 100% basis towards the implementation of this scheme, with a modified title namely, “Implementation of Handlooms (Reservation of Articles of Production) Act, 1985, and with a revised budgetary provision of Rs.2.00 crore. From the year 2003-04 onwards, it is proposed to implement the scheme with 100% central assistance out of non-plan funds with an annual provision of Rs.1.20 crore. Marketing Promotion Programme Marketing Promotion Programme (MPP) is an integrated Scheme including components for Publicity and Awareness, setting up of Marketing Complexes and organization of Exhibitions and Fairs through various agencies to promote the marketing of handlooms in the country and to improve levels of awareness among handloom weavers and the general public in the interest of overall development of the handloom sector. The main components of this Scheme are 1. Organizing of National Handloom Expos(NHE), Special Expos and District level Events (DLE): Financial assistance is provided to eligible agencies for organizing NHEs, Special Expos and DLEs. The objective of these events is to provide an opportunity to handloom weavers to market their products in various parts of the country. These events also enable consumers to access handloom products from various sources at one place. In 2002-03, it is proposed to organize about 15 NHEs / Special Expos and 150 DLEs. As of November, 2002, 10 NHEs, 3 Special Expos and 97 DLEs have been sanctioned. It is proposed to continue to organize these events at the same scale in 2003-04. 2. Setting up of Urban Haats

This component is jointly implemented along with Office of the Development Commissioner (Handicrafts). Financial assistance limited to 35% of the project cost of Rs. 2.00 crore is provided by this office under this component to the eligible agencies for setting up of Urban Haats. 16 Urban Haats were approved up till 31.03.02 and further 3 Urban Haats have been approved in the current year till 29.11.2002. Funds are released on the basis of the proposals received from time to time from the implementing agencies. 3. Participation in Craft Melas

Financial assistance of up to Rs. 10.00 lakh each is provided to the respective implementing agencies for organizing Craft Melas at Surajkund in Haryana, Shilparamam at Hyderabad, Shilpagram at Udaipur and for Taj Mahotsav at Agra, every year. This assistance is proposed to be continued in 2002-03, as also in 2003-04. In


addition, this office sponsors weavers recommended by the Weavers’ Service Centres and State Governments for participation in the above Craft Melas. 4. Setting up of Marketing Complexes

The objective of the Scheme is to bring the handloom products of various states in one umbrella to enable the customers to select their requirements from a wider choice. Under the Scheme, National Handloom Development Corporation (NHDC) has set up 7 complexes in Hyderabad, Navi Mumbai, Indore, Jaipur, Ahmedabad, Kanpur and Kolkata. The commissioning of another complex at Delhi is under progress. There is a proposal for setting up of another marketing complex in Lucknow during 2002-03. The target for X Plan is for setting up one complex each year with an average expenditure of Rs. one crore every year. 5. Publicity and Awareness

This component provides for extending financial assistance for various promotional activities with the objective of promoting the interest of the weavers and increasing awareness about developments in design, technology and related aspects of handloom sector. National Awards are also given in recognition of excellence among handloom weavers. Assistance is given for promotion of handloom through films, seminars and workshops and by preparation of tableaux for the Republic Day Parade at New Delhi. It is also proposed to undertake activities related to brand development of handlooms in the X Plan period. A provision of Rs. 9.00 crore (Rs.7.00 crore plus Rs.2.00 crore for North Eastern Region) was provided in BE 2002-03 for the above activities. Out of this, an amount of Rs.2.72 crore has already been spent as on 09.12.2002. A budget provision of Rs.8.50 crore (Rs.7.00 crore plus Rs.1.50 crore for North Eastern Region) has been made for RE 2002-03. An amount of Rs.6.00 crore has been made for 2003-04 for undertaking the following activities: S.No. 1. 2. 3. 4. 5. 6. Physical Target(Nos.) National Handloom Expos/ Special 20 Expos District Level Events 150 Crafts Melas and Master Creation 05 Programme Setting up of Urban Haats Marketing Complexes Publicity and Awareness Total ** ** ** Name of Events Financial Target (Rs. in crore) 4.00 3.00 0.40 2.00 1.00 1.60 12.00

** Funds to be released on receipt of proposals for setting up of Urban Haats, Marketing Complexes and Publicity & Awareness.


Design Development and Training Programme(DDTP) The Design Development and Training Programme is a Scheme providing for upgradation of skills of weavers through a variety of training programmes, workshops and exhibitions, and for development of design inputs to be disseminated to weavers, collection of traditional designs, and the provision of linkages between various agencies in the handloom sector for coordinating the designs, technological and skill based factors for developing products to meet market demand and improve productivity of the handloom weavers. The Scheme comprises the following components: 1. 2. 3. 4. 5. Strengthening of Weavers’ Service Centres (WSC) and Indian Institutes of Handloom Technology(IIHT) and Grant to IIHTs Decentralized Training Programme for Weavers National Centre for Textile Design Research and Development Cooperative Training.

In the current year i.e. 2002-03, an amount of Rs.13.00 crore was provided in the Budget for implementation of DDTP. An amount of Rs.2.76 crore has been spent on various components of the Scheme as of 29.11.02. An amount of Rs.10.90 crore has been made under RE 2002-03 and an amount of Rs. 37.57 crore has been made as requirement under BE 2003-04. The basis for these projections is as follows: a) Strengthening of WSCs & IIHTs:

This component provides for undertaking construction and repair of WSCs and IIHTs. The capital outlay of Rs. 4.40 crore in BE 2002-03 under this component has been reduced to Rs. 1.50 crore in RE 2002-03 in view of the limited proposals received for capital works. An amount of Rs.2.61 crore has been made under BE 2003-04 since it is proposed to undertake construction of buildings in a phased manner, of those WSCs which are currently housed in rented premises. In addition, this component also provides for equipping WSCs and IIHTs with necessary machinery and equipment and for meeting the salary and office expenses of IIHT at Jodhpur and of the National Handicrafts and Handlooms Museum. Since, the establishment expenditure of NHHM has been transferred to Non Plan in 2002-03 the provision under this component has been reduced accordingly. The BE 2003-04 for IIHT Jodhpur is Rs. 1.22 crore. b) Decentralized Training Programme(DTP):


Under this component, training of weavers is undertaken through the WSCs. About 2500 to 3000 weavers have been covered every year under this training in the IX Plan. In 2002-03, it is proposed to train 6,000 weavers. The enhanced coverage is to be undertaken in order to implement the announcement made by the Hon’ble Prime Minister on 15th August, 2002 that skill upgradation of one lakh weavers would be taken up over a period of five years. For this purpose, a draft Integrated Handloom Training Project (IHTP) has been formulated and is under the consideration for approval of the competent authority. An amount of Rs.2.89 crore has already been sanctioned under DTP in 2002-03 and the RE 2002-03 has been projected as Rs.3.2360 crore. Under the BE 2003-04, an amount of Rs.8.0350 crore is to be provided for carrying out the activities under this component. It is proposed to provide skill upgradation to about 20,000 weavers and 2000 artisans under the Integrated Handloom Training Project in 2003-04, for which an amount of Rs.18.50 crore has been projected in BE 03-04. If IHTP is not approved, for implementation in 2003-04, the requirement under this component will be of Rs 3.00 crore. c) National Centre for Textile Design (NCTD):

NCTD set up in 2000-01 acts as a link between designers, weavers and other workers in the handloom sector. NCTD has set up a website www.designdiary.com on which exclusive designs are displayed for the use of handloom weavers and manufacturers. NCTD has developed an exclusive range of designs which were displayed under the ‘Tantavi’ Exhibition 2001-02. The exhibition is also to be held at six major textile centres in the country in 2002-03. The first of these was held at Varanasi from 29th October to 5th November, 2002. A provision of Rs.84.00 lakh has been made in BE 2002-03 for NCTD of which Rs. 47.91 lakh have been spent as on 09.12.2002. No change is proposed in the RE and a provision of Rs.1.50 crore has been projected for BE 2003-04. d) Cooperative Training: The Cooperative Training Programme includes the following aspects: • Financial Management of Cooperatives – This will cover credit and financing arrangement of the cooperatives vis-à-vis different banks and financial institutions. Various credit schemes available to the cooperatives in general and to the weavers’ societies in particular under the cooperative and regional rural banks and under National Bank for Agriculture and Rural Development (NABARD) Refinance Schemes, profitability, costing and pricing of the products; Marketing – This will include awareness building in respect of market segments and scope for value addition of the goods produced by cooperatives; Awareness building about the developmental schemes being implemented by various Departments of Government of India such as Ministry of Agriculture (Department of Agriculture and Cooperation), Ministry of Rural Development, Ministry of Textiles, etc; Training on inventory management, quality input management, etc.;

• •


Awareness building about the technologies developed by Weavers’ Service Centres/Indian Institutes of Handloom Technology.

Institutions like, National Council for Cooperative Training (NCCT), National Cooperative Union of India (NCUI) and National Handloom Development Corporation are the main implementing agencies to provide the training to handloom weavers. However, some select Weavers’ Service Centres, which develop some new methods under Research & Development programme on Technology Upgradation, are also included in the cooperative training programme. An amount of Rs.1.50 crore was provided in the BE 2002-03 for this component of which Rs. 4.12 lakh has been spent as on 09.12.2002. An amount of Rs.1.09 crore has been proposed for this component in RE 2002-03, and an amount of Rs.1.50 crore in BE 2003-04. e) Research and Development(R&D):

The R&D component provides for technological development for survival of handloom. However, Research & Development is an essential ingredient for any Industry to keep pace with the fast changing developments on account of the increasing global interest in Indian Handlooms. Hence, undertaking Research & Development in the handloom sector is very essential in order to have regular system of feed back on economic, social, aesthetic, technical and promotional aspects of handloom sector with the help of expertise of reputed research institutes and other professional/voluntary organizations, Non-Governmental organizations registered under any of the statutory Acts, Universities, IIHTs/WSCs having basic infrastructural facilities to effectively implement the scheme through studies, need based survey, research and development etc. During the year 2001-02, a sum of Rs.39.78 lakh was released to different handloom organizations under this scheme. The annual budgetary provision of Rs.75.00 lakh has been kept in the current year 2002-03 under the scheme of R&D to meet the expenditure in respect of on going R&D projects as well as new proposals received from various handloom agencies. An amount of Rs.11.85 lakh has so far been spent as against the provision of Rs.75.00 lakh in current financial year 2002-03. The funds provided under this scheme for 2002-03 would be utilised for which sufficient proposals are in hand. Similarly, an amount of Rs.75.00 lakh is proposed for the next financial year 2003-04 under R&D Scheme to meet the expenditure on continuing R&D projects and new proposals to be received from various handloom organizations. MILL GATE PRICE SCHEME This scheme for supply of yarn at mill gate price was introduced during 1992-93 with the objective of providing all types of yarn to the handloom weavers organizations at the price in which it is available at Mill Gate. The scheme has been approved for


implementation in X Plan including two components viz. supply of yarn at mill gate price and investment in National Handloom Development Corporation (NHDC). SUPPLY OF YARN AT MILL GATE PRICE National Handloom Development Corporation (NHDC), a Government of India undertaking is the only agency authorized to implement the scheme. The scheme benefits the following organizations and their member weavers: 1. 2. 3. 4. 5. 6. 7. All Handloom organizations of National/State/Regional/Handloom level; Handloom Development Centres; Handloom producers/exporters/manufacturers registered with Handloom Export Promotion Council (HEPC)/ any other export promotion council under the Ministry of Textiles or the State Directors of Industries. All approved export houses/trading houses/star trading houses for production of handloom items. Members of recognized/approved handloom associations; NGOs fulfilling CAPART norms; and Any other agency with the approval of the Development Commissioner for Handlooms.

The Government of India is meeting the entire expenditure under the scheme. Al types of yarn required for production of handloom items are covered under the scheme. The yarn is being arranged by NHDC from the mills as per the requirement of user agency (as mentioned above) and is being transported to the godown of the agency. The guidelines for implementation of the scheme have been revised with effect from 01.10.2001. As per the revised guidelines, the reimbursement rates to the user agencies are as under: Types of Yarn In Plain areas Hill/Remote areas North-East area Other than Silk/Jute 1.00% 1.75% 3.00% Yarn Silk Yarn 1.00% 1.25% 1.50% Jute/Jute Blended 7.00% 8.00% 8.50% Yarn Note: Rates are in terms of percentage cost of material. In addition to the above, the NHDC has to pay depot operation charges @1% of the value of yarn, wherever the yarn is supplied to weavers through yarn depots. Further, there is a provision for supply of yarn to the weavers’ in the remote areas through mobile van during 20 days in a month. The actual expenditure involved for operating the mobile van is to be reimbursed subject to a maximum of Rs.1,500/- per day per van by the NHDC.


The expenditure on the aforesaid yarn is reimbursed by the Government at a flat rate as detailed below: Yarn other than Silk and Jute Silk Yarn Jute Yarn 3.5% of value 2% of value 10% of value

A new provision has been made in the guidelines stipulating that at least 10% of the total yarn supplied shall be made to North Eastern States in conformity with the National Policy for development of North Eastern States. Under the scheme, 195.58 lakh kg of yarn has been supplied by NHDC during 200102. During the year 2002-2003 (upto October’02), 81.98 lakh kg. of yarn were supplied. Reimbursement claims of NHDC to the extent of Rs.309.30 lakh have been released upto 09.12.2002. INVESTMENT IN N.H.D.C National Handloom Development Corporation Ltd. (NHDC) is a public sector undertaking set up in 1980 as a national level agency for the speedy development of the Handloom Sector by coordinating all actions covering procurement and supply of inputs, augmenting marketing efforts of state handloom agencies & initiating developmental activities for the handloom sector. A sum of Rs.1.00 crore is proposed to be invested in NHDC every year in X Plan. Rs.1.00 crore has been released in 2002-2003, and a provision of Rs.1.00 crore is proposed in 2003-2004 for this purpose. Deen Dayal Hathkargha Protsahan Yojana(DDHPY) Deen Dayal Hathkargha Protsahan Yojana was launched to provide assistance to the handloom weavers in an integrated and comprehensive manner. The scheme has been in operation w.e.f. 1.4.2000 and will continue to be in operation till 31.3.2007. This Centrally sponsored plan scheme entails nearly Rs.310 crore of Central assistance for the 10th Plan period. The scheme aims at taking care of a wide gamut of activities such as basic inputs, like looms and accessories, working capital loans, product development, infrastructure support, institutional support, training to weavers, supply of equipments and marketing support both at micro and macro levels to the handloom organisations. The handloom organisations can also get assistance under other components of the DDHPY like design input, publicity, marketing incentive and transport subsidy for North Eastern Region and J&K. Prior to the introduction of the DDHPY, most of the schemes were aimed at benefiting the weavers under the cooperative fold only. The DDHPY envisages covering weavers both under cooperative and non-cooperative fold. The national and state level organisations, primary societies, self-help groups etc. shall be eligible to get benefit of the


scheme. There is a focused emphasis on purchase and modification of looms, skill upgradation and design support to facilitate product diversification, enhance productivity and marketability of handloom products. The handloom agencies can get assistance for installing CAD/CAM system and avail of services of designers to improve designs and fabric as per requirement of both the domestic and international market. A special component to provide transport subsidy for the transportation of finished goods from North Eastern States, including Sikkim and J&K has been incorporated. It has been noticed that a number of organisations at State level need to be strengthened and therefore, a component has been provided for restructuring such organisations for better marketing efforts through bankable projects to be cleared by the Union Ministry of Textiles. In order to improve quality of finished products, financial assistance is available to the handloom agencies for infrastructure like setting up of a processing house having bleaching, dyeing, finishing and other facilities, effluent treatment plant and common facility centers. Under this Centrally Sponsored scheme, the sharing between Central and State Government is in the ratio of 50:50. In the case of North Eastern States, Sikkim and J&K the funding pattern is in the ratio of 90:10. For agencies where 100% members are from SC/ST/Minorities/Women, the funding pattern is in the ratio of 75:25. However, the assistance for marketing incentives under the scheme is 50:50 between Central and State Governments in respect of all the States. During the year 2000-01, a sum of Rs.1695.84 lakh was released as grant under the scheme to 12 States; (Rs.763.79 lakh towards basic inputs covering 197 projects and Rs.932.05 lakh as marketing incentive). From the year 2001-02, the committed liabilities towards the projects sanctioned under the erstwhile Project Package Scheme(PPS), Integrated Handloom Village Development Scheme(IHVD), Margin Money for Destitute Weavers(MMDW) and Handloom Development Center/Quality Dyeing Unit(HDC/QDU) scheme are also met out of the budget provion under the DDHPY head. In the year 2001-2002, a sum of Rs.6359.33 lakh was released as grant from the DDHPY head consisting of release of Rs.5725.05 lakh under the basic input and marketing incentive components of the DDHPY, Rs.479.98 lakh under the Project Package Scheme, Rs.89.57 lakh under Integrated Handloom Village Development Scheme, Rs.1.78 lakh under HDC/QDU, Rs.1.00 lakh under the MMDW and Rs.61.95 lakh for Census. For the year 2002-03, there is a budget provision of Rs.7930.00 lakh for disbursement of grant under the schemes covered by the DDHPY head. Out of this budget provision, a sum of Rs.2715.00 lakh has been released upto 09.12.2002 consisting of release of Rs.2638.56 lakh under the basic input and marketing incentive components of the DDHPY, Rs.54.94 lakh under PPS and Rs.21.50 lakh under IHVD.


DEVELOPMENT OF EXPORTABLE PRODUCTS AND THEIR MARKETING (HANDLOOM EXPORT SCHEME) In order to give an impetus to the export of handloom fabrics, made-ups and other handloom items from the country, a scheme for Development of Exportable Products and their Marketing was introduced during 1996-97 and the scheme has been in operation since then. Under the scheme, the assistance has been made available for developing exportable products, building up production capability for export and thereafter marketing such products. National and State level Handloom Corporations, Apex Cooperative societies, Primary Cooperative societies and Handloom Cooperative Societies affiliated to /registered and sponsored by Councils/Corporations, Handloom Export Promotion Council, Association of Corporations and Apex Societies of Handlooms, Handicrafts and Handloom Export Corporation, Indian Silk Export Promotion Council, National Handloom Development Corporation etc. have been eligible for assistance under this scheme. Private handloom exporters were assisted through Handloom Export Promotion Council (HEPC). Under the Scheme, viable proposals recommended by the State Governments, Handloom Export Promotion Council, Association of Corporations and Apex Societies of Handlooms etc. have been considered for release of assistance. No State-wise targets were fixed. However, for the 9th Plan, a target of 100 DEPM projects and participation in 25 International events was planned. Out of the target of 100 projects, 86 viable Development of Exportable Products and their Marketing (DEPM) projects recommended by the State Governments/Handloom organizations could be sanctioned. So far as participation in International events is concerned, out of a target of 25 events, assistance for participation in 29 international trade events was provided to Association of Corporations and Apex Societies of Handlooms (ACASH), New Delhi; Handloom Export Promotion Council (HEPC), Chennai; and Handicrafts and Handlooms Exports Corporation of India Ltd., (HHEC), New Delhi etc. during the 9th Plan. Central assistance worth Rs. 10.00 crore was released to various States and organizations for 86 DEPM projects and Rs. 9.29 crore to ACASH, HEPC, HHEC etc. for participation in 29 international trade events. This scheme is proposed to be continued in the X Plan with the title “Handloom Export Scheme” with an outlay of Rs.31.00 crore for the X Plan and an outlay of Rs.7.00 crore (including Rs.2.00 crore for North Eastern States), for the current year 2002-2003 for meeting expenses in respect of fresh projects and for meeting committed liabilities in respect of projects sanctioned in the past. So far (as on 09.12.2002 ), a sum of Rs. 68.71 lakh has been released towards committed liabilities and for participation in one international trade event.


Workshed-cum-Housing Scheme The Government of India introduced a Centrally Sponsored Scheme called “Workshedcum-Housing Scheme” for handloom weavers from the beginning of VII Five-Year Plan i.e. 1985-86. The scheme is being implemented primarily for providing suitable work place to the weavers for achieving better productivity. The scheme is being implemented by the respective State Handloom Development Corporations, primary Societies or any other specialised agency set up by the concerned State Government for execution of such projects. During the IX Plan, the funding pattern of the Central assistance and the weavers’ contribution as also the loan tie up arrangement has been as under: Name of the Component Rural Workshed Urban Workshed Rural Workshed-cumHouses Urban Workshed-cumHouses Unit Cost in Rs. 9000 14000 35000 45000 Maximum Subsidy 7000 10000 18000 20000 Loan from HUDCO/FIs 14000 20000 Weavers Contribution 2000 4000 3000 5000

During the IX Five year Plan a sum of Rs.6286.54 Lakh was released for construction of 63,853 units of Rural/Urban Worksheds/Workshed-cum-Houses under the scheme. During the year 2001-02 a sum of Rs.980.54 Lakh was released as first instalment for construction of 3650 units of Workshed/Workshed-cum-Houses under the Scheme and towards second instalement in respect of units sanctioned earlier. The scheme is being continued for the X Plan with the aforesaid funding pattern and with an outlay of Rs.85.00 crore. For the current financial year 2002-03, a budget provision of Rs.1100.00 Lakh has been provided, out of which Rs.400.00 Lakh has been earmarked for North Eastern States. As on 09.12.2002, a total sum of Rs.65.87 Lakh has been released towards the second instalment in past cases to various State Governments, out of which an amount of Rs.23.50 Lakh has been released to North Eastern States. Weavers’ Welfare Scheme The Hon’ble Prime Minister, in his Independence Day address to the Nation, on 15th August, 2002 announced the implementation of a special contributory insurance scheme for One Million weavers and artisans, combining the ‘Janshree Bima Yojana’ of the Life Insurance Corporation of India with Group insurance Scheme. Accordingly, it has been proposed to implement the ‘Bunkar Bima Yojana’, which is a combination of the ‘Janshree Bima Yojana’ and Add-on Group Insurance Scheme to cover Nine Lakh weavers in the handloom sector.


Keeping in view the recommendation of the Working Group on Textiles and Jute Industry for the X Five Year Plan and also in accordance with the announcement made by the Prime Minister for launching of the aforementioned special insurance scheme, it is proposed to implement a comprehensive Scheme called ‘Weavers’ Welfare Scheme’ with Health Package, Thrift Fund, Bunkar Bima Yojana and Package insurance for handloom weavers as its components with revised funding pattern. Till this scheme gets the approval of the competent authority for implementation during the X Plan, it is proposed to continue to implement the Health Package, Thrift Fund, Group Insurance and New Insurance Schemes of the IX Plan without any change in content or parameters of those schemes, in the X Plan. For the X Plan period there is a budget provision of Rs.38.00 crore for “Weavers’ Welfare Scheme” and a provision of Rs.700.00 Lakh has been made for the current year 2002-03, out of which Rs.200.00 Lakh has been earmarked for North Eastern States. As on 09.12.2002 a sum of Rs.3.18 Lakh has been released towards balance due in respect of previous sanctions. The Welfare Schemes which were in implementation during the IX Plan have been the following: Health Package Scheme for Handloom Weavers. The Health Package Scheme was introduced in March 1993. Under the Scheme, the weavers were provided financial assistance for the treatment of diseases like asthma, tuberculosis and inflammation of respiratory system, cost of testing of eyes and spectacles, supply of drinking water, maternity benefits to women weavers, payment of additional compensation for permanent measures of family planning and infrastructure for the primary health care. During the IX Plan period a sum of Rs.1464.09 Lakh was released under the scheme for covering 2,53,835 weavers. During the financial year 2001-02, a sum of Rs.37.66 lakh was released to various State Governments under this scheme for covering 1,630 weavers.
(i) Thrift Fund Scheme for Handloom Weavers.

The Thrift Fund Scheme for Handloom Weavers was introduced in the VIII Five Year as one of the special welfare measures from the Government of India. The Scheme envisaged creation of a fund in the nature of a provident fund. The weavers belonging to corporate sector have also been covered under the Scheme. As per the funding pattern, 8% of the wages were to be contributed by the weavers, 4% each by the Central and State Governments. During IX Plan period a sum of Rs.1711.21 Lakh was released for coverage of 8,00,076 weavers under the scheme. During the year 2001-02 a sum of Rs.320.16 lakh was released to the various State Governments to cover 1,07,643 weavers under the scheme.


Group Insurance Scheme. The Government of India introduced a Group Insurance Scheme for Handloom Weavers throughout the country from the year 1992-93 in order to help weavers to meet their socio-economic obligation towards his family and to act as a support system against the uncertainty of their working capacity in old age. Under the Scheme, a weaver could be provided an insurance coverage of Rs.10,000/- for an annual premium of Rs.120/- per annum, shared equally by the beneficiary, the Central Government and the concerned State Governments. During the IX Plan period, a sum of Rs.284.64 Lakh was released for covering 7,31,973 weavers. During the year 2001-02, a sum of Rs.42.32 Lakh was released under this scheme to the various State Governments for covering 1,15,062 weavers. (iv) New Insurance Scheme for handloom weavers:

In order to provide relief to handloom weavers in the 50th year of Independence, the Government of India introduced the New Insurance Scheme for weavers through United India Insurance Company for the Ninth Five-Year Plan. The New Insurance Scheme was aimed at providing coverage against loss or damage to dwelling due to flood, fire earthquake etc; damage to contents of the dwelling like looms, raw material etc; medical coverage and Personal Accidental Insurance against accidental death at premium of Rs.120/- per annum, with a contribution of Rs.20/- by the weaver, Rs.40/- by the State Government and Rs.60/- by the Government of India. During the IX Plan period, a sum of Rs.136.27 Lakh was released to United India Insurance Company Ltd. for covering 2,27,117 weavers. During the year 2001-2002, an amount of Rs.10.00 Lakh was released for covering 16,666 weavers. CENTRAL WOOL DEVELOPMENT BOARD, JODHPUR With a view to harmonize various diversified interest among different sectors of woollen industry for an integrated development of the entire industry, the Central Wool Development Board was constituted by the Govt. of India, Ministry of Textiles in July’ 1987 with its Head Quarters at Jodhpur, Rajasthan. The Board has started its functions since 1989 was registered under the Rajasthan Society Registration Act, 1958 in the year 1996. The Central Wool Development Board has been assigned different functions for growth and development of wool and woollens, marketing intelligence, marketing of wool and woollens, price stabilization, testing of wool and woollen products, quality control, analysis and dissemination of information, product development and to advise Government on policy matters and coordination, etc.


The Ministry of Textiles, Govt. of India, vide its Resolution dated 26th June 2001, has reconstituted the Central Wool Development Board. The Chairman of the reconstituted Board is the Union Minister of Textiles and it consists of a total of 29 members including 8 non-official members. OVER-ALL PERFORMANCE The Central Wool Development Board was allocated Rs. 26.00 crore during the 9th Plan period for undertaking various schemes programmes for the development of woollen sector in the country. Out of this allocation, the Central Wool Development Board was able to utilize Rs. 22.27 crore in the 9th Plan period. The Board administered more than 12 schemes/programmes in the 9th Plan period with the help of State Government Departments/Organizations. Emphasis was given to increasing benefits to wool growers through schemes meant for sheep rearing with modern management techniques, for increase in the quality and quantity of raw wool, establishment of testing facilities of wool growers and wool users, setting up of processing facilities, collection, analysis and dissemination of information on wool market price, introduction of Angora Rabbit rearing in hilly areas, marketing assistance to woollen handloom weavers etc. The achievement and benefits accrued under the major schemes are as under:

The programme has an integrated approach to sheep rearing and wool development includes aspects of health coverage, breed improvement, marketing assistance and training to the sheep rearers. Total 72 projects were implemented in various wool producing states by covering 37.25 lakhs sheep in 9th Plan period. Under this programme more than 23,000 persons engaged in sheep rearing activities were benefited.

This programme has a similar integrated approach to increase Angora wool production to meet the growing demand of the wool industry and also to provide employment opportunities in the rural areas. Total 13 projects were implemented in various wool producing states by covering 1270 families during 9th Plan period.


As an implementing agency for UNDP CCF-I Angora Rabbit Development Programme, the Central Wool Development Board provided financial assistance for setting up Germplasm Centres for Angora Rabbits in different regions of the country i.e. Kullu in Himachal Pradesh, Pithoragarh in Uttranchal and Gangtok in Sikkim. The Board also provided assistance to the State Government of Himachal Pradesh, Sikkim and Defence Agriculture Research Laboratory, Pithoragarh for setting up Nutrition and Health Laboratories. Under this programme, the Board also provided financial assistance to the Wool Research Association for fabrication of processing machine for angora wool and necessary R&D programme for blending of angora wool with other fibres.

This project helps to popularize machine shearing through demonstration and in this process through training of sheep breeders to take up this activity to increase the quality and value of their wool. The Board imported 60 shearing machines and distributed them to State Government Organizations under the project. Necessary grant was also given for operating the machines during 9th Five Year Plan. A total of 106 machines were used in various wool producing states and 4 persons on each machine were trained annually. 4.

A Wool Scouring Plant helps to improve the quality of wool by removal of vegetable matter, grease and dust and provides value addition to fetch a better price for the wool produced. The Central Wool Development Board sanctioned 5 Mini Wool Scouring Plants to be set up in the States of Gujarat, Himachal Pradesh, Maharashtra, Karnataka and Jammu & Kashmir. One Plant has been set up at Palampur (H.P.). Necessary action has been initiated to set up the other four plants. The Board finalized technical specifications of the plant, ensured its fabrication and development, prescribed terms and conditions for supply of the Plant and also prescribed the agreement format to be executed between implementing agency and supplier.

The Centre provides pre-loom wool testing facilities i.e. fineness, length, yield, colour, vegetable matter and moisture contend etc. to wool growers, wool traders and wool industry of the local area. This helps in standardization and improvement in quality. The Board set up 3 Wool Testing Centres at Beawar (Rajasthan), Leh (Jammu & Kashmir) and Rennibenure (Karnataka).


This Centre provides post-loom testing facilities to woollen industry. The Board sanctioned 4 new centres to be set up at Jammu & Kashmir, Kutch (Gujarat), Jaipur (Rajasthan) and Kullu (Himachal Pradesh). The Jaipur & Kullu centres have fully been set up and are providing services to the local woollen industry.

This Centre is being operated in Kullu (H.P.) to train weavers and dyers engaged in woollen handloom production activities in rural and hilly areas. The Centre gets a very good response from the rural people of the area. The Board also gets feed back from the trained persons regarding their improvement in skill and earnings. The Board trained 270 persons in the 9th Five Year Plan period.

The Board is collecting, analyzing and disseminating information regarding prevailing market rates and trend of wool and woollens among the woolgrowers, wool merchants and wool industry. The Board is publishing such information through fortnightly Bulletin/Magazines.

To provide market to the weavers, artisans and Non-governmental Organization’s engaged in manufacturing of woollen products in the hilly and remote areas. The Board organized 18 Exhibitions-cum-Sale of woollen products at different places of the country. It was noticed that woollen products worth approximately Rs. 20.00 lakh were sold during each exhibition. 11. HUMAN RESOURCE DEVELOPMENT:

The Board organized training programmes in Sheep and Angora Rabbit Management, Sheep Shearing and Wool Testing in collaboration with reputed training institutes and organization. The Board trained 180 persons in the 9th Plan.






The Central Wool Development Board publishes a quarterly news magazine which includes information on latest development in R&D, technology and modernization in wool industry, Government Notifications, programmes and schemes of the Board, Market price of wool and woollens, data regarding import and export etc. The Board also publishes a fortnightly wool price bulletin by including information regarding latest trend of wool and woollens and prevailing market prices of major wool centres/mandies.




The Central Wool Development Board organized seminars/workshops on different aspects of the woollen sector in collaboration with State/Central Government organizations. Following seminars/workshops were organized during the 9th Five-Year Plan: Sl. No. 1. 2. 3. 4. Name of Place Bikaner Bikaner Ooty Leh-Ladakh Organized in Year 1998-1999 1999-2000 1999-2000 2000-2001 Subject Carpet Wool Khadi Sector Angora Wool Development Development of Pashmina Wool

APPAREL PARK FOR EXPORTS SCHEME Government of India has launched “Apparel Park for Exports” scheme for imparting focussed thrust for setting up of apprel manufacturing units of international standards at potential growth centres. The central assistance under the scheme would be given to the extent of 75% of the capital expenditure incurred by the State Governments subject to a maximum of Rs. 10 crores while the remaining 25% will be borne by the State Government/ agency. The Central Government will also provide a sum upto Rs. 5 crores for setting up of an effluent treatment plant, creche/s, any multi purpose centre/hall for marketing /display etc. Besides, the Central Government will provide grant upto 50% of the cost of any training facility created in the park upto a maximum of Rs.2 crores. The Apparel Parks for Exports Scheme has since come into operation w.e.f. 23.3.2002. It has been decided to give in-principle approval to the Project Proposals for setting up Apparel Parks at Tronica City & Kanpur (U.P.), Surat (Gujarat), Thiruvananthapuram (Kerala), Visakhapatnam (Andhra Pradesh), Ludhiana (Punjab), Bangalore (Karnataka) and Tirupur & Kanchipuram (Tamil Nadu). A provision of Rs.14.5 crores has been made in the B.E. 2002-03 for providing assistance under the scheme and Rs.25.00 crore under BE 2003-04. TEXTILE CENTRES INFRASTRUCTURE DEVELOPMENT SCHEME (TCIDS) Government of India has also launched “Textile Centres Infastructure Development Scheme (TCIDS)”- for modernising infrastructure facilities at major textile centres of the country.


One of the major perceived benefits of TCIDS is removal of impediments to production and to facilitate improvement in quality, productivity and operational flexibility to make the textile industry of the centres globally competitive so as to face competition in domestic and international markets. Therefore, the modernisation of textile centres under the Scheme along with other measures would result in increased exports especially in the post MFA era starting from 1st January 2005. The Central assistance under the scheme will be limited to 50% subject to a maximum of Rs.20 crores for each centre. The remaining 50% will be contributed by the State/Union Territory or any designated agency of the State Government. The funds under the Scheme will be used for development of infrastructure in these textile centres benefiting the textile units. Some of the purposes for which funds could be used are (i) Common Effluent Treatment facilities (ii) provision of testing facilities (iii) strengthening of power supply (iv) establishment of design centres and (v) improvement of roads, drainage facilities etc. The scheme by its very nature aims at upgrading infrastructure facilities of textile centres such as Tirupur, Coimbatore, Karur, Bangalore, Delhi-Noida-Gurgaon, Panipat, Ludhiana, Ahmedabad, Mumbai, Bhiwandi, Ichalkaranjee, Burhanpur, Salem-Erode, Varanasi-Mau, Meerut-Pilakhua, Surat, Solapur, Calcutta (knitting), Chennai, Cannannor, Amritsar, Baddi (Himachal Pradesh), Malegaon and Bhilwara. The TCIDS has since come into operation w.e.f. 8.3.2002. A provision of Rs.75.00 crores has been earmarked for the scheme in the Tenth plan period. A provision of Rs.15.00 crores has been made in the B.E. 2002-03 and Rs.22.00 crore under BE 2003-04 for providing assistance under the scheme.

National Institute of Fashion Technology:Ministry of Textiles, Government of India promoted National Institute of Fashion Technology (NIFT) as a registered society in 1986. NIFT has now emerged as a premier training institute in India to train professionals to meet the Human Resource requirements of the apparel industry. It is a college of Design, Technology and Management. It offers various full time diploma programmes and provides professional education. The Institute functions under the guidance of the Board of Governors consisting of eminent practitioners, academicians and senior government officials. Secretary (Textiles), Government of India is the Chairman of Board of Governors. NIFT, New Delhi offers regular Diploma programmes in the following areas: • AMM - Apparel Marketing and Merchandising • GMT - Garment Manufacturing Technology • LGDT - Leather Garment Design and Technology • TDD - Textiles Design and Development • KDT - Knitwear Design and Technology


• • •


- Fashion Design - Accessory Design - Fashion Communication

Each of the above programmes takes 30 students each year. Fashion Design and Accessory Design Programmes are open to undergraduates and Diploma is awarded after completing a three-year course. The other programmes are open to the graduates and a postgraduate Diploma is awarded after a two-year course. All the NIFT Centres outside Delhi except Bangalore viz., Centres at Calcutta, Chennai, Gandhinagar, Hyderabad and Mumbai initially started with two courses – Fashion Design and Garment Manufacturing Technology. Bangalore Centre was started with AMM in the place of GMT, keeping in view the demand from the industry. Knitwear Design & Technology courses were started in Mumbai and Calcutta centres respectively from the academic year 1998-99. From the academic year 2000-01, to meet the demand from the industry the following courses were started in the centres as under: • • • • • Fashion Communication NIFT, New Delhi Textile Design & Development NIFT, Calcutta & Hyderabad Knitwear Design and Technology NIFT, Chennai & Mumbai Accessories Design NIFT, Gandhinagar Apparel Marketing & Merchandising Management – NIFT, Hyderabad

From the Academic year 2001-02, following courses were also commenced in the centre indicated: Accessories Design and Garment Manufacturing Technology Accessory Design Knitwear Design and Technology – NIFT, Bengalore -- NIFT, Chennai & Hyderabad -- NIFT, Calcutta

From the academic year 2003, NIFT has restructured its programme to suit the changing business context and move towards university education. NIFT will be offering 4 years undergraduate and 2 years postgraduate programmes in the areas of Design, Management and Technology at par with Bachelor/Master Degree Course in Engineering and Technology. NIFT offers various short-term programmes under the nomenclature of Continuing Education (CE) Programmes appropriate to the requirements of the industry. NIFT gets a continuous feedback about the courses conducted for the industry and takes into account the suggestions for improvements in the future programmes. Apart from the regular and part time courses, NIFT undertakes various consultancy projects and workshop for developing ideas and implementation techniques at the request of a number of Central/ State Government organisations/ Public Sector Undertakings/Private Companies/NGOs.


The target and achievement for 2001-02 and 2002-03 (till 31.10.2002) and the target for 2003-04 in respect of the parameters of number of students admitted, successful completion of the diploma course by the students admitted, CE programmes offered by NIFT are given below:
S. No. Particulars 2001-02 Target Achieve ment Target 2002-03 Achievement (till 31-10-02) 2003-04 Target

1. 2 3. 4.

Admission Successful completion of course by the students Placement C E Programmes i) No. of CE Programmes ii) No. of trainees

980 630 630 34 1330

920 554 554 28 1358

920 800 800 40 2000

940 656 656 30 762

850 710 710 31 800