Government in its bid to revive, reform and restructure the Indian handloom sector has given its go ahead to a centrally sponsored debt waiver package of Rs 38.84 billion for handloom weavers, said Commerce and Industry Minister Anand Sharma, who holds additional charge of Textiles Ministry. The Union Cabinet headed by Prime Minister Manmohan Singh approved the debt restructuring package under which funds will be provided for repayment of 100 percent of principal and 25 percent of interest, which is overdue as on March 31, 2010 in respect of viable and potentially viable primary weavers` cooperative societies and apex societies.
The commerce minister also said that out of the total package, share of the Centre will be 31.37 billion while that of the state government will be Rs 7.47 billion. According to Anand Sharma, the package will benefit 13 lakh weavers, including two lakh in Uttar Pradesh, a state headed for Assembly elections next year. India’s handloom sector is reeling under stress for quite some time now on account of stiff competition and credit unavailability.
The Centre had earlier announced that it would implement Rs 62.34 billion package out of which it has earmarked Rs 38.84 billion for debt restructuring and the remaining Rs 23.50 billion is for a six-fold strategy to uplift weavers during the 12th Plan (2012-17). The statement said there would be an overall ceiling of Rs 50,000 per individual beneficiary as far as funding under the scheme is concerned in respect of waiver of over-dues of individual handloom weavers. The scheme will help 15,000 weavers' cooperative societies besides individual weavers.
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