This scheme intends for the grant of financial assistance for revitalization and strengthening of factory type primary power loom weavers’ co-operative societies.

Beneficiaries

Power loom co-operative societies registered under this Department.

How to apply

As per the above rules, Application for assistance should be submitted to the Director of Handloom & Textiles through the General Manager, District Industries Centre in the prescribed form with the following documents.

  • Resolution and undertaking of the Managing Committee/Decision of the Board of Director’s and Acquisition in the prescribed form (Triplicate)
  • Revitalization/Revival Project (in triplicate)

Eligibility

Societies, which have incurred financial loss in the previous accounting year and is likely to continue to ensure cash in the current accounting year and has an erosion on account of cumulative cash loss in the extent 50% or more its net worth or closed during its operation for more than 3 years or continuously overdue of EPF/ESI/Bank Cash Credit.

  • Working capital of Rs. 25,000/- per loom up to a maximum 10 looms (limited to 2.5 lakh)
  • Assistance to clear ESI/EPF dues limited to Rs. 3 lakhs as one time assistance.
  • Assistance to production value added products limited to 5 lakhs.
  • Assistance for product diversification of Rs. 20,000/- per design limited to 1 lakh.
  • Maximum Rs. 5 lakh per society may be sanctioned for converting ordinary power loom to indigenous rapier loom, maintenance work of hydraulic dhothy, pressing machine and purchase of new loom for product diversification.
  • Maximum limit of assistance to a society under all the above 5 components together shall be Rs. 10 lakhs only.

Criteria
After detailed enquiry and verification of the required documents, the application should be submitted to the Director of Handloom & Textiles with special recommendation of the General Manager, District Industries Centre (2 copies of all required documents).

  1. The Director of Handloom & Textiles will assist to the qualified societies as per the following rules.
  2. Allotted funds are to be deposited in the Treasury in the joint account of the Secretary of the Co-operative Society and the General Manager of the District Industries Centre and the counter-signature of the General Manager is required to withdraw the amount.
  3. The sanctioned amount should be utilized within 12 months from the date of withdrawal from the treasury.
  4. If there are sufficient reasons, permission to extend the tenure shall be granted by the General Manager up to a maximum period of six months, Director of Handloom & Textiles for one year. Further extension if required will be granted by Government Manuel
  5. The unutilized fund should be refunded to the Government with interest within one month after expiry of sanctioned period.
  6. The General Manager, District Industries Centre should check whether the amount sanctioned is being utilized and submit the utilization certificate of the Directorate of Handloom & Textiles.
  7. On sanction of grant assistance, the society will execute an agreement in the prescribed form and the amount will be disbursed only thereafter.
  8. The society will in case of misutilization of grant amount be liable to pay interest @ 12% per annum.
  9. Every three months, the societies, which received assistance under this scheme are required to submit a report on production, employment and profit and loss accounts to the General Manager, District Industries Centre and he review the above every three months.
  10. The society shall keep proper accounts and reports and make them available to officials, when they come inspection.

Application Form