CCEA approves extension of RRR package for handloom sector

14 Feb '14

2 min read

The Cabinet Committee on Economic Affairs (CCEA) has approved a two-month extension in the implementation period of modified revival, reform and restructuring (RRR) package for the Indian handloom sector.

The implementation period is now extended up to February 28, 2014, from the earlier last date of implementation period of the scheme, which was December 31, 2013.

However, the extension of the implementation period would not have any additional financial implication, as the RRR package would be implemented according to the approved financial outlay of Rs. 31.3 billion, out of which Rs.11 billion is for waiver of overdue loan and recapitalization assistance and Rs. 20.3 billion is for concessional credit component.

The two-month extension is expected to benefit about 1500 additional apex and primary weavers’ cooperative societies, in addition to the 4739 societies that were covered under modified RRR package till December 31, 2013.

The approved interventions will help in re-opening choked credit lines for handloom weavers’ cooperative societies and individual weavers, and fresh credit will be provided at cheaper rate of interest with credit guarantee resulting in bringing them back into positive networth after financial support.

The National Bank for Agriculture and Rural Development (NABARD) is the implementing agency of the RRR package.

The RRR package was first approved by the Government of India in November 2011, in pursuance of the budget announcement of 2011-12, and only viable and potentially viable apex and Primary Weavers’ Cooperative societies (PWCs) based on the audit of 2009-10 were eligible to avail benefit.

By October 31, 2013, besides 50,403 individual weavers and 5,462 Self Help Groups (SHGs), out of 44 apex and 15,926 PWC societies, which are functional, only 24 apex and 4,073 PWCs were found eligible as per the eligibility norms under the scheme.

Subsequently, on requests from various States and handloom organizations to relax eligibility norms, the Government approved modifications in September 2013 in the RRR package by relaxing certain eligibility norms and extension of the scheme up to December 31, 2013.

The revised scheme also facilitates cheaper credit at the rate of six percent interest rate to the handloom sector in line with the budget announcement of 2013-14.

Fibre2fashion News Desk - India

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