Comprehensive Scheme for Powerloom Sector Development

Ministry of Textiles

Powerloom Industry In India

In our Country, power looms are a predominant segment in the entire textile value chain. According to a power loom survey carried out in 2013, there is 24.86 lakh power looms in the decentralized sector, out of which 1.03 lakh (4.1%) are shuttles looms. It accounts for more than 57% of the total cloth production and provide employment to nearly 44.86 lakh persons. Around 60% of fabrics and garments manufactured by power looms are exported.

Looking into the various socio-economic problems faced by the power loom weavers and the low technology levels in the sector, the Government has focused his attention for the development of power loom sector through multi-pronged schemes and interventions. An Integrated Scheme for Power Loom Sector Development (ISPSD) was launched during 11^th Five Year Plan.

The Scheme is hugely beneficial to the decentralized power loom sector and it was extended to the 12^th Five Year Plan with additional components of Yarn Bank, Tex-Venture Fund and Common Facility Centre to help the economically weaker power loom weavers and for the overall development of the power loom sector.

A new Scheme of In-situ Up gradation of Plain Power Looms in SSI sector was launched in the 12^th Five Year Plan with a target of 1 lakh plain power looms to be filled with additional attachments for quality improvement.

A comprehensive scheme with all these features is now launched as the Comprehensive Scheme for Power Loom Sector Development and the same comes into effect on 1^st April 2017 and would be for duration up to 31^st March 2020.

Components of the Power Tex India Scheme

In-situ Upgradation of Plain Powerlooms
Group Worked Scheme (GWS)
Yarn Bank Scheme
Common Facility Centre (CFC)
Pradhan Mantri Credit Scheme for Power loom Weavers
Solar Energy Scheme for Power looms
Facilitation, IT, Awareness, Market Development and Publicity for Power loom Scheme
Tex Venture Capital Fund
Grant-in-Aid and Modernisation & Upgradation of Power loom Service Centres (PSCs)

Other Schemes

Amended Technology Upgradation Fund Scheme (ATUFS)
Modified Comprehensive Power loom Cluster Development Scheme (MCPCDS)
Universal Insurance Coverage Scheme
Integrated Skill Development Scheme (ISDS)

INSITU UPGRADATION SCHEME FOR PLAIN POWERLOOMS

Objective:

I. To provide financial assistance to economically weaker low-end powerloom units, for upgrading existing plain looms to semi-automatic/shuttleless looms by way of fixing certain additional attachments/kits.

II. To improve quality and productivity of the fabrics being produced and enable them to face the competition in domestic and international markets.

Eligibility:

I. Power loom units having upto 8 Looms.

Attachments on Existing Plain Powerlooms:

I. Warp Stop Motion

II. Weft Stop Motion

III. Efficient Braking Device

IV. Replacement of metallic parts by self-lubricating nylon parts

V. Jacquard / Dobby

VI. Anti Crack device

VII. Semi-positive let off motion

VIII. Pirn Winding Machine

IX. Rapier kit

Subsidy Chart:

Sl No	Type ofUpgradation	Quantum of Subsidy per loom
		General (50%)	SC (75%)	ST (90%)
1	From Plain Loom to semi Automatic Shuttle loom	Rs.20000	Rs.30000	Rs.36000
2	From Semi Automatic shuttle loom to shuttleless Rapier Loom	Rs.25000	Rs.37500	Rs.45000
3	From Plain Loom to shuttleless Rapier Loom	Rs.45000	Rs.67500	Rs.81000

YARN BANK SCHEME

Objective:

I. To provide interest free corpus fund to Special Purpose Vehicle (SPV)/Consortium to enable them to purchase yarn at wholesale rate and give the yarn at reasonable prices to the small weavers.

II. To avoid middle man/local supplier’s brokerage charge on sales of yarn.

Eligible Beneficiaries:

I. Registered Co-operative Society.

II. Trust.

III. Company set-up under the Companies Act, 1956 as amended.

IV. Firm set-up under the Limited Liability Partnership Act, 2008 as amended.

Eligibility:

I. Minimum 11 members required to form Special Purpose Vehicle (SPV).

II. The Members of SPV should be Powerloom Weavers, Master Weavers, Co-operative Societies, Private Entrepreneurs; NGO’s working for Powerloom Sector.

III. SPV has to provide Bank Guarantee to the extent of 25% of Govt. of India share.

IV. SPV shall arrange their own fund equal to Government contribution.

V. SPV shall rotate the corpus fund including their contribution at least 4-5 times in a year.

Financial Assistance:

I. Government shall provide interest free corpus fund of maximum Rs.200 Lakh per yarn bank to SPV/Consortium.

Comprehensive Scheme for Powerloom Sector Development