SCHEME DETAILS

   STATE SECTOR SCHEMES :-

7) Assistance to Handloom Co-operatives- (2851-00-103-0-61)

Budget : Rs.55.00 lakhs

  Under this scheme assistance will be provided for the development of Handloom Co-operatives, Weavers and Institutions. This year the following sub-schemes are being implemented.

Sl.

No.

Components

Financial

(Rs. In lakhs)

1

Interest Subsidy on working capital borrowed by PHWCS under NABARD Refinance Scheme

8.00

2

Nekarara Kalyana Yojane

22.00

3

New Designs and Trends

3.00

4

Training for Handloom Weavers

2.00

5

State Award to Weavers

5.00

6

State Level Handloom Exhibition

15.00

 

Total

55.00

(a) Interest Subsidy on working capital borrowed by PHWCS under NABARD Refinance Scheme: Rs.8.00 lakhs

The scheme provides reimbursement of interest @ 3% on CC limit borrowed by Primary weavers co-operative societies from the District Central Banks through NABARD refinance scheme.

(b) Nekarara Kalyana Yojane: Rs.22.00 lakhs

Under the scheme the assistance will be provided to the weavers / children of weavers for the following components.

(i) Health Scheme:

  • Reimbursement of the medical expenditure for treatment of Cancer (maximum limit Rs.50.000/-) and financial assistance of Rs.500 per annum during the treatment Period.
  • Reimbursement of the medical expenditure for treatment of Heart operation and transplantation of Kidney (maximum limit Rs.50.000/-) and financial assistance of Rs.500/- per annum during the treatment period.
  • Financial assistance to mentally retarded and leprosy patients (Rs.500/- per annum).
  • Rs.1000/- will be paid to the family members for cremation of the deceased weaver.

(ii) Education Scheme:

Scholarships will be provided as under to the weavers children studying after SSLC:

(Amount in Rs.)

Sl.No.

Education

Scholarship per annum towards fees

Towards purchase of books

Additional stipend to distinction holders (70% and above)

1

PUC and Diploma courses

500

250

500

2

ITI

-

250

-

3

Science degree

750

750

1000

4

Other degree courses B.A./B.Com)

500

500

400

5

Professional courses

2000

1500

1500

(c) New Designs and Trends: Rs.3.00 lakhs

Under this scheme assistance will be provided to the Primary societies for adoption and implementation of latest designs as per the market trends and demands. Practical training will be imparted to the weavers of the Primary societies in the Weavers Service Centre, Indian Institute of Handloom Technology, Salem, Varanasi and Venkatagiri. During the training period weavers will be provided with stipend, accommodation and traveling allowance. Study tours are also organized to the weavers under the scheme.

(d) Training for Handloom Weavers: Rs.2.00 lakhs

This scheme contemplates to impart advanced training and skills in handloom technology. State Government is sponsoring 18 candidates to the Indian Institute of Handloom Technology, Salem and 3 candidates to Venkatagiri Institute every year to undergo the course for a period of 3 years. Under the scheme, stipend is paid to the students who are deputed to the above Handloom Institutes and also allowances for other inputs like books, project allowance, etc., are paid to them.

(e) State Award to Weavers: Rs.5.00 lakhs

(f) State Level Exhibition:Rs.15.00 lakhs

Assistance to Weavers/ Weavers Co-op. Societies to participate in National/State level Exhibitions and to organize State level Exhibitions

8) Marketing of Handloom Product ( 20% Rebate on sale of Handloom Products) – Co-ops. : (2851-00-103-0-66)

Budget : Rs.275.00 lakhs

A rebate of 20% is provided under the scheme on the sale of Handloom products by Primary Handloom Weavers Co-operative Societies and Cauvery Handlooms during the designated 135 days of the year.

9) Assistance to Powerlooms : (2851-00-108-0-19)

Budget : Rs.15.00 lakhs

Assistance is provided under the scheme for development of Powerloom / Readymade garments sector in the State. Capital subsidy is provided for modernisation of powerlooms and investment in new semi / auto looms. Sewing machine operator training and training of weavers on powerlooms are the other components of the scheme. Assistance for establishing powerloom parks is also provided under the scheme. During the current year the following components are being implemented.

  • Modernisation of Powerlooms / Investment Subsidy :Rs.15.00 lakhs
  • Assistance to Powerloom Complex :Rs. 10.00 lakhs
  • Organisation of exposure tours for Powerloom weavers :Rs. 5.00 lakhs

10) Share capital assistance to Powerloom Co-ops. : (4851-00-108-0-01)

Budget : Rs.15.00 lakhs

The scheme is intended to encourage rural artisans to form powerloom co-operatives so that assistance in the form of purchase of raw-materials and marketing could be rendered to the artisans through the societies. For this purpose, societies will be assisted in the form of share capital to meet the margin money requirements and also to increase borrowing capacity of the societies.

11) N.C.D.C. Scheme for Powerloom Co-ops. :

(4851-00-108-0-05 – Share capital) : Budget : NIL

(6851-00-108-0-04 – Loan) :Budget : Rs.128.00 lakhs

NCDC has introduced this scheme with a view to finance Powerloom/Textile projects taken up by the Co-operatives. The assistance will be in the form of share capital as well as loan so that the society could meet their capital requirement to arrange preloom and postloom facilities and to provide infrastructure facilities like common workshed, modern looms, godowns, showrooms, marketing assistance etc.

12) Investment in Spinning Mills : (4860-01-190-5-01)

Budget : Rs.2.00 lakhs

The scheme provides financial assistance in the form of share capital investment for rehabilitating Co-operative Spinning Mills which are running under loss.

13) Thrift Fund Scheme for Handloom Weavers : (2851-00-103-0-10)

Budget : Rs.10.00 lakhs

The original CSS scheme encourages the weavers to cultivate the habit of savings. Under the scheme 8% of the wages earned by the weavers are collected as subscription to the fund. Up to 2006-07 an equal matching contribution of 4% each from Central and State Governments are remitted to the fund. The scheme is operated through the Treasury. The State Government provides 12% interest on the total contribution. Since the scheme has been discontinued by the GOI during XI Plan, it is proposed to continue the scheme under State Sector with modification. Under the modified structure of the scheme, State Government contribution will be equal to the subscription of the weaver ie, 8% of the wages earned by the weavers.

The beneficiary can draw advances to meet expenses in connection with marriage, house construction, medical expenses and education for children. The final amount becomes payable, along with interest, after completion of 15 years as subscriber to the fund (or) on his/her becoming totally incapacitated to work due to old age (or) after attaining the age of 60 years

14) Distribution of Saree, Dhothi to Weaker Sections : (2235-02-104-2-05)

Total Budget - : Rs. 200.00 Lakhs

The State Government has introduced the scheme with the twin objective of providing continuous employment to the weavers of KHDC and to provide basic clothing to the weaker sections at affordable prices.

Sarees, Dothies produced under the Scheme by Karnataka Handloom Development Corporation are distributed to the weaker sections in rural areas and urban slums through Public distribution system.

15) Weavers Special Package : (2851-00-103-0-62)

Total Budget : Rs.3004.00 lakhs

(a) Other expenditure: Rs.2454.65 lakhs

The State Government, after examining the problems faced by the weavers, had announced the Weavers Special Package which included several benefits to the weavers during 2003-04. During the current year, following schemes under Weavers Special Package are being implemented. The major components of the scheme are as follows:

(Rs. In lakhs )

Sl.No

Components

Budget

1

Power tariff subsidy to powerloom units with power connection upto 20 HP (including preloom facilities)

1788.15

2

Recurring expenditure to KHTI, Gadag and AHTI, Jamakhandi

30.00

3

Interest subsidy to Co-op. and Urban Co-op. banks providing loans to weavers @ 3% interest.

80.00

4

Interest on Thrift Fund Scheme

100.00

5

Assistance to powerloom units for availing power from express feeder.

7.50

6

Assistance to KHTI, Gadag for infrastructure development.

43.00

7

2007-08 loan weavers scheme - pending cases

401.00

8

Revaluation of power subsidy.

5.00

 

Total

2454.65

(b) i) Special Component Plan : Rs. 533.50 lakhs

ii) Special Component Plan - Pooled : Rs. 200.00 lakhs

(c) Tribal Sub Plan : Rs. 215.85 lakhs

Sl.

No.

Component

SCP

TSP

Phy

Fin

Phy

Fin

1

Common facility centre

12

96.00

8

64.00

2

Workshed

51

12.75

40

10.00

3

Looms & Accessories

  • Handloom
  • Powerlooms-Ordinary
  • Semi Automatic Looms
  • Automatic Looms

 

200

30

20

10

 

45.00

20.25

25.20

22.50

 

100

20

25

10

 

22.50

13.50

31.50

22.50

4

a)Working Capital - Handlooms

b)Working Capital - Powerlooms

200

100

40.00

40.00

100

40

20.00

16.00

5

Share Capital to PWCS

10

5.00

2

1.00

6

New Member Share

600

3.00

120

0.60

7

Marketing Promotional Scheme

3

9.00

2

6.00

8

Preloom Facilities

3

12.80

1

4.00

9

Tour programmes

4

2.00

9

4.25

 

Total

1243

333.50

477

215.85

Special Component Plan and Tribal Sub Plan schemes will be implemented as per action plan approved vide GO No. VaKai 54 JKaiYo 2007 dated 7-8-2007.

16) Weavers Special Package(KHDC) – (2851-00-103-0-69)

Total Budget : Rs.700.00 lakhs

(a) Other expenditure : Rs.527.00 lakhs

(b)Special Component Plan : Rs.123.20 lakhs

(c)Tribal Sub Plan : Rs.49.80 lakhs

The State Government had announced the Weavers Special Package-KHDC which included several benefits to the KHDC and its weavers during 2007-08. During the current year, following schemes under Weavers Special Package are being implemented. The major components of the scheme are as follows:

(a) Other expenditure : Rs.527.00 lakhs

Sl.No.

Components

Budget

(Rs. In lakhs )

1

Interest subsidy on working capital loan availed from Commercial Banks - 2008-09

2009-10

17.50

62.50

2

Lumpsum grant for Working Capital assistance for purchase of raw material 2008-09

2009-10

72.30

166.70

3

Re-imbursement of 20% rebate on handloom products 2008-09

2009-10

102.37

105.63

 

TOTAL

527.00

Special Component Project:(Rs. 123.20 Lakhs)

Sl.

No

Component

Benefi

ciaries

Budget

1

Basic Training Programme (o.s)

100

15.00

2

Working capital for supply of raw-materials.(6000x100 cotton)(10000x40 silk) (o.s)

140

10.00

3

Supply of looms and accessories to trained beneficiaries.(Maximum Rs.25,000 each) (o.s)

100

25.00

4

Assistance for construction of work shed. (Rs.25000 per workshed) (o.s)

72

18.00

5

Assistance for construction of toilets

(Rs. 15000 per toilet ) (m.s)

80

12.00

6

Subsidy for Solar lightening (Rs.35000 per light) (m.s)

80

28.00

7

Rain water harvesting, purification and distribution (Rs. 10000 per house) (m.s)

80

8.00

8

Living cum Workshed (Rs. 54000.00 per unit) (m.s)

6

3.24

9

Establishment of Preloom processing unit at Narasapura. (m.s)

1

3.36

 

Total

659

123.20

Tribal Sub Plan: (Rs.49.80 Lakhs)

Sl.

No

Component

Beneficiaries

Budget

1

Basic Training Programme (o.s)

80

9.36

2

Establishment of Common weaving centre (o.s)

01

16.46

3

Working capital (40x5000)(35x10000) (o.s)

75

5.50

4

Installation of loom and accessories in Common Facility centre (10pedallooms +10framelooms) (o.s)

01

11.68

5

Supply of looms and accessories to trained beneficiaries.(Maximum Rs.25,000 each) (o.s)

15

1.80

6

Assistance for construction of work shed. (Rs.25000 per workshed) (m.s)

20

5.00

 

Total

192

49.80

17) Employment generation in Garment / Textile Sector :

(2505-60-101-0-03 )

Total Budget : Rs. 4000.00 lakhs

(a) Other Expenditure : Rs. 2765.50 lakhs

(b) Special Component Plan : Rs. 879.00 lakhs

(c) Tribal Sub Plan : Rs. 355.50 lakhs

State Government has announced Suvarna Vastra Neethi (New Textile Policy) 2008-13 vide Government Order No.CI/47/Jakaiyo/2008,dt.1-10-2008 for overall development of the Textile sector in the State. Highlights of the Policy are as under:

Sl.

No.

Component

Budget

SCP

TSP

1

Training Programmes

560.00

300.00

140.00

2

Strengthening of Skill development centres

340.00

200.00

60.00

3

Incentives and concessions

465.50

379.00

155.50

4

Establishment of Apparel Clusters

1000.00

-

-

5

Administrative expenditure

400.00

-

-

 

Total

2765.50

879.00

355.50

 

1. Objectives :-

    • Overall development of Textile sector with emphasis on Ready made garments
    • Employment generation – Special thrust on Women, educated and uneducated youth of rural and backward areas
    • Backward taluks development
    • Skill development in Textile activities
    • Dispersal of Textile Industries to backward areas hitherto getting concentrated around Bangalore
    • Technology upgradation and Capacity building of Textile Industries
    • Economic development of the State

2. Targets :-

  • Period of the Policy – 5 years (2008-13)
  • Employment generation – 5 lakhs
  • State funding – Rs.500 crores
  • Investment attraction – about Rs.10000 crores

3. Sectors covered :-

  • Readymade garments
  • Handlooms
  • Powerlooms
  • Spinning
  • Knitting
  • Processing
  • Technical textiles
  • Textile machinery manufacturing

4. Incentives offered in the Policy :-

  • Capital investment subsidy – Max. Rs.25 lakhs
  • Investment by SC/ST/Women/PC/Ex.Servicemen/Minority – Special subsidy max. Rs.25 lakhs
  • Entry Tax – Full reimbursement
  • Stamp Duty – Full reimbursement
  • Power subsidy – Rs.1.00 per unit
  • Common infrastructure development for Textile Parks – Max. Rs.1200 lakhs
  • Subsidy for Land/Shed allotted through KIADB/KSSIDC – Max. Rs.25 lakhs
  • Subsidy for establishment of CETP – Max. Rs.500 lakhs
  • Market development and Branding subsidy – Max. Rs.50 lakhs
  • Subsidy for development of new Designs and Products – Max. Rs.25 lakhs
  • Assistance for Standards and Compliances – Max. Rs.2 lakhs
  • Strengthening of existing Training centers – Max. Rs.100 lakhs
  • Establishment of new Skill Development Centers – Max. Rs.150 lakhs
  • Mega projects – Special incentives

5. Implementation methodology :-

  • Zoning of Taluks – Zone-1, Zone-2 and Zone-3
  • Various Incentives for attracting investment
  • Higher incentives for backward taluks
  • Special thrust on Skill development
  • Special assistance for development of existing Training centers and establishment of new Skill Development Centers
  • Strengthening of Single Window mechanism for speedy clearance of Textile projects