A scheme called 'Revival, Reform and Restructuring Package for Handloom Sector' has been launched by the Government of India in collaboration with the National Bank for Agriculture and Rural Development (NABARD).
A sum of Rs. 38.84 billion would be spent under the scheme, which would be executed from this fiscal itself, M Jha, NABARD Public Relations Officer (PRO) said.
The Central Government would grant Rs. 31.37 billion of the total sum, while the rest Rs. 7.47 billion would be allocated by the state governments, Mr. Jha said.
The PRO said the proposal for the scheme was floated by the Union Finance Minister in his 2011-12 Budget speech, and added that the scheme is expected to benefit 15,000 cooperative societies and 300,000 weavers across India.
Under the scheme, funds would be provided for reimbursing 100 percent principal and one-fourth interest on loans of viable and potentially viable primary weavers' cooperative societies and apex societies, which are in arrears since March 31, 2010. Such funds would be provided on the date of the loan becoming a non-performing asset (NPA), Mr. Jha informed.
He said the scheme would also cover individual master weavers, handloom weavers, joint liability groups (JLGs) and Self-Help Groups (SHGs), who have obtained loans for handloom weaving activities, subject to the bank's readiness to approve fresh loans.
As informed by Mr. Jha, individual weavers can avail a maximum loan waiver of up to Rs. 50,000 under the current scheme.
He said the Government has also sanctioned an interest subsidy of three percent for three years, which would be made available on fresh loans from the date of disbursal of the same by banks to qualifying handloom cooperative societies and individual handloom weavers under the scheme.
No interest subvention would be provided once the loan becomes a NPA.
Fibre2fashion News Desk - India