Post on 29-Jan-2023
HANDLOOMS, HANDICRAFTS, TEXTILES AND KHADI DEPARTMENT
HANDLOOMS AND TEXTILES
POLICY NOTE
2012 – 2013
DEMAND No. 17
Dr.S.SUNDARARAJ MINISTER FOR HANDLOOMS AND
TEXTILES
© Government of Tamil Nadu
2012
POLICY NOTE 2012 – 2013
HANDLOOMS AND TEXTILES
INDEX
Sl. No. Contents Page No.
1 Introduction 1 – 2
2 Handloom Sector 2 – 3
3 Powerloom Sector 3 – 4
4 Textile Sector 5 – 7
5 Garments and Hosiery Sector 7
6 Processing Sector 7 – 8
7 The Department 8 – 10
8 Steps taken for the development and
growth of the Industry 11 – 16
9 Programmes for the year 2012 – 2013 16 – 21
10 Schemes implemented by the Department 21 – 51
11 Other initiatives taken by the Department 52 – 64
12 Schemes under Powerloom Sector 65 – 74
13 Part – II Schemes for the year 2012-2013 74 – 76
14 Institutions under the administrative control
of the Department 76 – 97
15 Budget provision for the year 2012-2013 98 - 99
HANDLOOMS AND TEXTILES
POLICY NOTE FOR THE YEAR 2012-2013
1. INTRODUCTION
Indian Textile Industry consists of four segments
viz Spinning, Handloom, Powerloom, Hosiery sectors.
India has the largest loomage and second highest
spindleage in the World. A strong multi-fibre base of
raw material, skilled weavers, best production system,
a dynamic entrepreneurship together have all
contributed to the Indian Textile Industry that has long
been the main stay of the Indian Economy next to
Agriculture.
The Textile Industry has significant presence in
the National and State Economy. It is the forerunner in
industrial development and in providing massive
employment in the State.
The Textile sector in Tamil Nadu is
predominantly in the private sector, spinning oriented
and labour intensive because of the preponderance of
the decentralised sector in most of the segments of the
industry.
In Tamil Nadu the composite mills are few, but
the presence of decentralised powerloom and hosiery
sector compensate the weaving capacity.
2. HANDLOOM SECTOR.
Handloom Weaving is one of the largest
economic activities in Tamil Nadu, employing more
than 1.89 lakh weavers household and about 3.19 lakh
weavers.
In Tamil Nadu, 2.07 lakh handlooms are in 1,182
Handloom weavers Co-operative Societies, and the
remaining looms are outside the Co-operative fold as
on 31.03.2012. Out of 1,182 Handloom Weavers
Co-operative Societies, 1,035 are Cotton Primary
Weavers Co-operative Societies, 61 are Industrial
Weavers Co-operative Societies and the remaining 86
are Primary Silk Weavers Co-operative Societies.
These Weavers Co-operative Societies exist in rural
and semi urban areas where there is large
concentration of handloom weavers. All the
developmental and welfare schemes of the Central
and State Governments intended for the handloom
weavers are channelised through these Weavers
Co-operative Societies. During the year 2011-2012,
the Weavers Co-operative Societies have produced
892.22 lakh metres of handloom cloth valued at
Rs.695.08 crore and sold handloom fabrics to the
extent of Rs.852.42 crore. During the year 2011-2012
as many as 824 Weavers Co-operative Societies are
working on profit.
This sector is mainly dependent on the
organised mill sector for their principal raw material
requirements namely hank yarn. The State
Government has been ensuring its uninterrupted
supply.
3. POWERLOOM SECTOR
The Powerloom Sector in Tamil Nadu have been
playing a pivotal role in meeting the clothing needs of
the people. The powerloom industry produces a wide
variety of cloth, both grey as well as processed.
Production of this kind of cloth lead to generation of
employment for weavers. It also contributes
significantly in the export earnings of the country.
Tamil Nadu ranks Second in the Powerloom
Sector in the country. As against 22.92 lakh
powerlooms in India, Tamil Nadu have 4.58 lakh
powerlooms. This includes 39,241 powerlooms in 184
Powerloom Weavers Co-operative Societies. During
the year 2011-2012, nearly 7,200 Million Sq. metres of
powerloom fabric have been produced by powerloom
sector in Tamil Nadu.
The major problem with this sector in Tamil
Nadu is the presence of obsolete ordinary looms.
Further, It is a predominantly domestic-oriented
industry with cotton (rather than synthetic fibres) as the
primary raw material. Only increased productivity and
improved product quality can keep the sector
competitive.
4. TEXTILE SECTOR
A. SPINNING MILLS
The spinning sector is the backbone of Tamil
Nadu’s textile industry. The majority of the mills are
managed by the Private Sector and are cotton
spinning-oriented. Out of 3,293 small, medium and
large textile mills in India, 1,997 mills are located in
Tamil Nadu. Of these, 98% are spinning mills and the
rest are composite mills. Similarly, out of 1,338 small
spinning units in India, 1,042 are located in Tamil Nadu.
Their spindle capacity is 22.24 million spindles. Tamil
Nadu encompasses 46.10% of India’s spindle
capacity. The Tamil Nadu is the No.1 producer of
cotton yarn and other type of yarn in the Country.
Tamil Nadu is the leading State in the country in the
export of cotton yarn. The Textile Industry in India
enables the Central and State Government to earn
substantial revenue and also to earn foreign exchange
through exports.
B. CO-OPERATIVE SPINNING MILLS
In Tamil Nadu, 18 Co-operative Spinning Mills
have been set up between 1958 and 1985 with spindle
capacity of 4.70 lakh with the object of providing
employment to rural people and continuous supply of
quality hank yarn at reasonable rate and to meet the
requirement of hank yarn to Handloom Weavers
Co-operative Societies.
Owing to various factors, like obsolete
machineries, low productivity, textile recession and high
cost of raw materials, the performance of these
Co-operative Spinning Mills dwindled over a period and
thereby 13 Co-operative Spinning Mills became defunct
during the years 1997-1998 to 2003–2004. At present
only 5 Co-operative Spinning Mills are functioning with
97,280 spindles.
These five Co-operative Spinning Mills produce
the yarn required for Free Distribution of Sarees and
Dhoties Scheme, Free Uniform Scheme for School
Children and for the Weavers Co-operative Societies to
produce market varieties.
5. GARMENTS AND HOSIERY SECTOR
The Garment sector is the growing segment of
the Textile Industry in Tamil Nadu. Tamil Nadu is
emerging as one of the attractive centres, after the
consolidation of the hosiery sector. The garment sector
is located mainly around Chennai with specialization in
cotton and manmade fibre garments. The garment
sector is assuming a dominant role in the State due to
its importance in the National economy.
The Hosiery units in our State are located at
Tiruppur. There are about 12,645 hosiery units in
India, of which, 2,500 units are located in Tiruppur
providing employment to around 3.20 lakh persons.
The annual production is estimated at 23 million
sq.metre.
6. PROCESSING SECTOR
The processing sector determines the core
product value, product quality, and has tremendous
scope for innovations and impact over the final output.
But this sector in Tamil Nadu can broadly be divided
into following 4 segments :-
• Hand processing units
• Semi power processing units
• Power processing units
• Processing units attached to composite or semi-
composite mills.
7. THE DEPARTMENT
The primary objective of the Department of
Handlooms and Textiles is to promote the harmonious
growth of Handloom, Powerloom and Textile sectors
and work for the welfare of the weavers.
The Director of Handlooms and Textiles is the
Functional Registrar for the textile related
Co-operatives in the State and is vested with powers
delegated as per the Tamil Nadu Co-operative
Societies Act 1983 and Rules 1988. He has a special
responsibility for the supply of yarn and other raw
materials to the Weavers Co-operative Societies and
for marketing the finished products through Co-optex,
Loom World, society showrooms and other sales
outlets. To ensure the availability of yarn, the
production of yarn has been taken up by the
Co-operative Spinning Mills. The Department of
Handlooms and Textiles is also responsible for
planning, formulating and monitoring of all schemes of
both Central and State Governments.
The Department of Handlooms and Textiles
promotes the socio-economic well being of the
Weavers and implements various welfare and
development schemes through 20 Circles manned by
Deputy Directors / Assistant Directors.
The Director at the headquarters is assisted by
Additional Director, Joint Director (Handlooms), Joint
Director (Uniform), Joint Director (Textiles), Financial
Advisor and Chief Accounts Officer, Deputy Director
(Textiles) and Deputy Director (Enforcement).
The various institutions functioning under the
administrative control of the Department are as
follows:-
• 1,182 Handloom Weavers’ Co-operative
Societies
• 184 Powerloom Weavers’ Co-operative
Societies
• 18 Co-operative Spinning Mills (5 Co-operative
Spinning Mills viz., Anna (Theni), Bharathi
(Thoothukudi), Pudukottai, Kanyakumari and
Krishnagiri are now functioning)
• Tamil Nadu Handloom Weavers Co-operative
Society Ltd., (Co-optex), Chennai
• Tamil Nadu Handloom Development Corporation
Ltd., Chennai
• Tamil Nadu Textile Corporation Ltd., Coimbatore
• Tamil Nadu Zari Ltd., Kancheepuram
• Tamil Nadu Co-operative Textile Processing
Mills Ltd., Erode
• Tamil Nadu Co-operative Spinning Mills
Federation Ltd., Chennai.
8. STEPS TAKEN FOR THE DEVELOPMENT AND GROWTH OF THE INDUSTRY
As textiles occupies a predominant place in the
State, both in terms of revenue and employment
generation, the State Government has taken number of
measures for the welfare of the weavers and for the
development of the sector.
8.1 REOPENING OF CLOSED TAMIL NADU CO-OPERATIVE TEXTILE PROCESSING MILLS, ERODE.
The Tamil Nadu Co-operative Textile Processing
Mills at Erode was closed on 23.02.2011 due to
non-compliance of certain conditions imposed by the
Tamil Nadu Pollution Control Board as regards
treatment and recycling of dyeing effluents.
The present Government immediately on
assumption of charge ordered to remit the penalty
amount of Rs.1,11,46,363 levied by the Tamil Nadu
Pollution Control Board and reopen the Mill. The Mill
was reopened by the Hon’ble Chief Minister of
Tamil Nadu on 10.06.2011, through Video
Conferencing and it is now functioning continuously.
During 2011-2012, the mill has achieved a turn
over of Rs.14.57 crore by processing 102.55 lakh
metres of cloth.
8.2 SOLUTION FOR DYEING AND BLEACHING UNITS, TIRUPPUR
The dyeing effluent water discharged from the
dyeing factories of Tiruppur into the Orathapalayam
dam in Tiruppur District, affected the agricultural land
in the downstream of the river. The affected
agriculturists filed a Writ Petition in the High Court,
Chennai.
The Hon’ble High Court directed the dyeing units
to establish Common Effluent Treatment Plants to
ensure Zero Liquid Discharge level.
As per the court order, the dyeing units
established 18 Common Effluent Treatment Plants in
Tiruppur, and at the same time, Dyers’ Association of
Tiruppur appealed to the Supreme Court against the
order of the High Court. But the Hon’ble Supreme Court
upheld the judgement of the High Court and rejected
the plea of the Dyers Association.
The present Government have come forward to
issue interest free loan to the tune of Rs.200 crore to all
the Common Effluent Treatment Plants to ensure zero
liquid discharge by implementing any one of the
technologies, i.e., Brine Reuse Technology or Nano
Technology.
8.3 FREE DISTRIBUTION OF SAREES AND DHOTIES
Distribution of Free Sarees and Dhoties is being
done every year during the Pongal festival for the
benefit of poor people and also to provide employment
to weavers in the handloom and powerloom sectors.
For the purpose of providing continuous
employment to both Handloom and Powerloom
Weavers in Tamil Nadu, the Government have ordered
to produce 170.84 lakh sarees and 169.75 lakh dhoties
at a cost of Rs.350 crore.
Further, considering the long pending demand of
the Powerloom Weavers engaged in the production of
sarees and dhoties meant for the scheme, the Hon'ble
Chief Minister had issued orders raising the wages
from Rs.16/- to Rs.18.40 per dhoty and from Rs.28.16
to Rs.31.68 per saree. The Government have
disbursed Rs.9.64 crore as additional wages to the
weavers as per the above orders.
8.4 ENHANCEMENT OF OLD AGE PENSION AND
FAMILY PENSION FOR HANDLOOM WEAVERS
The Government of Tamil Nadu have ordered
enhancing the pension payable under the Tamil Nadu
Co-operative Handloom Weavers Old Age Pension
Scheme from Rs.400/- to Rs.1,000/- per month and
Tamil Nadu Co-operative Handloom Weavers Family
Pension Scheme from Rs.550/- to Rs.1,000/- per
month.
This enhancement order would benefit 18,646
Handloom Weavers under the Old Age Pension
Scheme and 1,549 weaver families under the Family
Pension Scheme. The arrear amount of Rs.356 lakhs
for the year 2011-2012 has been sanctioned by the
Government for the beneficiaries.
The State Government would be incurring an
annual financial outlay of Rs.19.11 crore towards the
implementation of these schemes.
8.5. SETTING UP OF NEW TEXTILE PARKS UNDER
THE SCHEME FOR INTEGRATED TEXTILE PARKS (SITP) OF GOVERNMENT OF INDIA.
The Government of India is implementing the
Scheme for Integrated Textile Parks by establishing
World Class Integrated Textile Parks under this
scheme for the development of the Textile Industry.
During the year 2011-2012 the Government of
India have accorded approval for establishment of 2
New Textile Parks in Tamil Nadu. One at Bagalure,
Krishnagiri District at a project cost of Rs.126.20 crore
and another at Pallavada, in Triuvallur District at a
project cost of Rs.117.08 crore would be established.
The Government of Tamil Nadu have ordered
that as setting up of Textile Park in the State would
increase direct investment and generate additional
employment opportunities, 9% of the project cost of
each project to a maximum of Rs.9 crore will be
provided as grant of the State Government to all the
Textile Parks to be set up in Tamil Nadu under this
Scheme.
9. PROGRAMMES FOR THE YEAR 2012-2013
Textiles, an important component of the
secondary sector of the State, has been identified as a
thrust area for rapid growth. Special efforts would be
taken to address the structural constraints restricting
the growth of the secondary sector in general and
textile sector in particular. The industry suffers from
certain disadvantages, which affect its productivity,
quality and cost competitiveness. The Tamil Nadu
textile industry will definitely has to keep abreast of all
developments, modernise and go through a
restructuring to concentrate on their core
competencies.
Apart from the above, Tamil Nadu depends on
other States for the raw material supply of cotton due
to its deficit in cotton production.
The Government will increasingly assume the
role of “facilitator” and “catalyst” to promote a balanced
all-round growth of the Industry. It will also create a
positive environment for.
• promoting investment for potentially
viable units
• technological upgradation of all the
sectors for improving quality and
productivity
• creating and improving infrastructure for
all the mills, powerlooms and processing
sectors.
For this, the interventions envisaged under the
Twelfth Plan will be dovetailed with existing and new
packages.
9.1 IMPROVING OPERATIONAL EFFICIENCY AND PRODUCTIVITY
Training in modern management and production
techniques, installation of modern machinery,
advanced dyeing methods, marketing of products as
well as export are vital for the growth and sustenance
of Industry. This is applicable for all the sectors.
Hence, there is an urgent need to improve the
productivity in the Industry. Also there is a need to
improve the overall quality, laying stress on the quality
and the awareness about it, without any increase in the
raw-material cost.
To achieve self sufficiency in this sector, it is
imperative that the labour and the technical manpower
required for this industry be trained and re-trained by
the technical institutions through an agreement entered
into with them. The funds available under the Central
and State Government Schemes would be accessed to
train the rural men and women and to facilitate the
availability of trained manpower.
9.2 REVIVAL, REFORM AND RESTRUCTURING PACKAGE FOR HANDLOOM SECTOR
The State Government will participate in the
“Revival, Reform and Restructuring Package for
Handloom Sector” implemented as a shared scheme
between the Central and State Governments.
Co-operative Societies, Individual weavers, Self Help
Groups and Joint Liability Groups which have taken
loans for weaving purposes will benefit under the
scheme. The societies in our State will get a package
support of about Rs.548 crore, of which the State’s
share will be Rs.127 crore. Under this scheme, 962
Weavers Co-operative Societies will get benefitted in
the State. The National Bank for Agriculture and Rural
Development (NABARD) will act as a Nodal Agency,
for implementation of the scheme and Memorandum of
Understanding will be entered with Government of India
and NABARD by the State Government.
9.3 MODERNISATION OF CO-OPERATIVE SPINNING MILLS:
Modernization proposal has been prepared for
the 5 functional Co-operative Spinning Mills by the
South India Textile Research Association with a total
project cost of Rs.104.41 crore, and it will be
implemented by availing financial assistance from
National Co-operative Development Corporation.
9.4 MODERNISATION OF THE DECENTRALISED POWERLOOM SECTOR
The policy approach to the powerloom industry
may be broadly stated as being one of facilitating
technology up gradation of the sector so as to improve
quality of production and productivity and providing a
set of welfare measures at the same time which would
ensure social security of the powerloom weavers.
Efforts will be taken by the Government to
identify powerloom clusters in the State and develop
them as a technologically advanced centres of
excellence. Special monitoring of the development of
these centres would be undertaken so that they can be
developed in a time bound manner.
9.5 CONDUCT OF DISTRICT LEVEL EXHIBITIONS
It has been proposed to conduct District Level
Exhibitions at various places in Tamil Nadu with
financial assistance of Government of India during the
year 2012-2013 so as to improve the marketing of the
handloom cloth. The Government of India has
tentatively allotted 43 District Level Exhibitions,
11 Special Handloom Expo and 1 National Handloom
Expo during the year 2012-2013.
10 SCHEMES IMPLEMENTED BY THE DEPARTMENT
10.1 IMPLEMENTATION OF FREE DISTRIBUTION
OF SAREES AND DHOTIES SCHEME.
The Free distribution of Sarees and Dhoties
during Pongal festival for the benefit of poor people of
Tamil Nadu have been implemented by the
Government continuously over the years. The Sarees
and Dhoties required under the scheme are produced
through the Weavers Co-operative Societies to enable
provision of continuous employment to Handloom and
Powerloom Weavers. The scheme ensures provision of
employment to 13,000 Handloom weavers and 41,000
Powerloom workers throughout the year besides
distribution of Sarees and Dhoties at free of cost during
Pongal festival to 340 lakh poor people.
The Tamil Nadu Handloom Weavers
Co-operative Society (Co-optex) is acting as the nodal
agency for the procurement of Sarees and Dhoties
produced by the Handloom and Powerloom Weavers
Co-operative Societies in the State and supply the
same to the Revenue Department. The Government
have released Rs.350 crore during the year 2011-2012
for implementing the scheme.
The above scheme will be continued for
Pongal 2013 and Rs.268.80 crore has been provided in
the Budget Estimate for the year 2012-2013.
10.2 FREE DISTRIBUTION OF SAREES AND DHOTIES TO OLD AGE PENSIONERS DURING PONGAL AND DEEPAVALI FESTIVALS
The Sarees and Dhoties meant for the free
distribution to the Old Age Pensioners during Deepavali
and Pongal festivals every year are being produced by
the Weavers Co-operative Societies in the State.
11 lakh Dhoties and 33 lakh Sarees required for
distribution to the old age pensioners during the year
2012-2013 are being produced through the Weavers
Co-operative Societies.
10.3 FREE SUPPLY OF UNIFORMS TO SCHOOL CHILDREN
The scheme of free supply of uniform to school
children is being implemented from the year
1985-1986. The uniform cloth namely Khakki Drill,
Blue Casement, Blue Dhavani and White Shirting
required for the scheme are being produced by
Handloom and Powerloom Weavers Co-operative
Societies and supplied through the Tamil Nadu
Handloom Weavers Co-operative Society and Tamil
Nadu Textile Corporation for distribution to the School
children studying from 1st standard to 8th standard who
are beneficiaries under Puratchi Thalaivar MGR
Nutritious Meal Programme of the Department of Social
Welfare.
Apart from this, the Uniform cloth required for
Full Pant, Striped Shirts, Chudidar, Chudidar Dhuppatta
and Pavadai are being produced by the Handloom and
Powerloom Weavers Co-operative Societies for
meeting the requirement of Adi-Dravidar and Tribal
Welfare Department and Backward Classes, Most
Backward classes and Minorities Welfare Department.
The Uniform cloth requirement of various
departments is as follows:-
Name of the Department Total
Requirement (in lakh Mtrs.)
No. of Students
Social Welfare 525.15 46,85,078 Adi-Dravidar and Tribal welfare
15.17 2,91,542
Backward Classes and Minorities Welfare
1.29
Most Backward Classes and De-notified Communities Welfare
2.98 87,750
Total 544.59 50,64,370
The scheme provides continuous employment to
1500 Handloom Weavers who are members of
Weavers Co-operative Societies and 7000 Powerloom
Workers.
In continuation of the announcement made by
the Hon'ble Chief Minister, 4 sets of Uniforms will be
provided to the school children studying from 1st
standard to 8th standard who are beneficiaries under
the Puratchi Thalaivar MGR Nutritious Meal
Programme from the Academic Year 2012-2013.
Further, the Government have decided to issue Full
Pant instead of Half Pant to the Boys and Salwar
Kameez instead of Pavadai and Dhavani to Girls
studying from 6th standard and above. Further the
Hon’ble Chief Minister has ordered to change the
colour of the uniform. The new clothes for boys would
be Maroon coloured trouser and light brown shirts and
for girls, Maroon Salwar Kammeez and light brown
dupattas. Based on the above, action is being taken for
the production of uniform cloth through the Handloom
and Powerloom Weavers Co-operative Societies by
giving continuous employment to the weavers. The
Government have released Rs.164.70 crore for this
scheme during the year 2011-2012.
525.10 lakh metre cloth valuing Rs.233.95 crore
(excluding processing expenditure) will be produced
and supplied under the scheme during the academic
year 2012-2013.
For implementing the scheme continuously,
Rs.116.97 Crore have been provided for the
year 2012-2013 in the Budget Estimate of the
Department of Elementary Education.
10.4 SANCTION OF REBATE SUBSIDY /
MARKETING INCENTIVE
The State Government is providing subsidy
towards rebate to promote the sale of handloom cloth.
This scheme enables the Primary Weavers’
Co-operative Societies and Co-optex to improve
marketing of handloom products by which the
Handloom Weavers are getting continuous and
assured employment. This scheme also aims at
protecting the handloom industry from severe
competition from the mill and powerloom sectors.
The State Government permit the Primary
Weavers’ Co-operative Societies and Co-optex to allow
rebate at the rate of 20% for the sale of handloom cloth
throughout the year for the retail and wholesale, subject
to the limit of 20% or Rs.100/- per unit for cotton
varieties and 20% or Rs.200/- per unit for silk varieties
whichever is less. The Government of India is also
contributing to the rebate subsidy scheme and provide
their share of assistance under Marketing Incentive
component of Integrated Handloom Development
Scheme.
On the eve of Birthday of Perarignar Anna, an
additional 10% special rebate over and above the
normal rebate of 20% i.e., 30% rebate is allowed for a
period of 139 days from 15th September to 31st January
every year. Under this special rebate, 30% or Rs.150/-
per unit whichever is less for cotton varieties and 30%
or Rs.300/- whichever is less for silk varieties is
allowed. For the implementation of the Rebate subsidy
scheme, a sum of Rs.165.95 crore was allotted by the
Government and the amount was released to the
Weavers Co-operative societies and Co-optex for the
year 2011-2012.
Under this scheme a sum of Rs.156.45 crore
has been provided under the Budget Estimate for the
year 2012-2013.
10.5 SANCTION OF INTEREST SUBSIDY
The Primary Weavers’ Co-operative Societies
obtain working capital assistance through District
Central Co-operative Banks under NABARD refinance
scheme. This scheme is implemented to reduce the
interest burden of the Primary Weavers’ Co-operative
Societies and to provide continuous employment to
Handloom Weavers. Under the scheme, 4% interest
subsidy is reimbursed on the rates charged by District
Central Co-operative Banks to the Primary Weavers’
Co-operative Societies by Government on quarterly
basis wherever the Handloom Weavers’ Co-operative
Societies avail cash credit loan. During the year
2011-2012 a sum of Rs.13 crore was released to the
Handloom Weavers Co-operative Societies under this
scheme.
An amount of Rs. 13 crore is provided in the
Budget Estimate for the year 2012-2013.
10.6 IMPLEMENTATION OF FREE POWER SUPPLY TO HANDLOOM WEAVERS
Handloom weavers are being provided 100
units bi-monthly at free of cost under this scheme. At
present 1,57,264 handloom weaver’s service
connections are covered for the benefits under this
scheme.
In the Budget Estimate of the year 2012-2013,
Rs.6.16 crore has been allocated under this scheme.
10.7 IMPLEMENTATION OF INTEGRATED HANDLOOM DEVELOPMENT SCHEME
“Integrated Handloom Development Scheme”,
a Centrally Sponsored Scheme which aims at
facilitating sustainable development of handloom
weavers located in identified handloom clusters into a
cohesive, self managing and competitive socio-
economic units, is being implemented in this State by
the Government of Tamil Nadu.
The four major components of the Scheme:
(a) Cluster Development Programme
(b) Group Approach for Development of
Handlooms
(c) Assistance for Handloom Organisations
(d) Assistance for Innovative ideas, Publicity,
Monitoring, Supervision, Training and
Evaluation of the Scheme.
(a) Cluster Development Programme
The Cluster Development Programme approach
focuses on formation of weavers’ as a group to enable
them achieve self sustainability. Under this scheme to
develop the handloom clusters possessing 300 to 500
looms, financial assistance up to Rs.60 lakh is being
provided for each cluster over a period of 3 years.
Financial assistance under this scheme is provided for
various components, such as Skill Upgradation,
Purchase of New looms and accessories, setting up of
dyeing units, Common Facility Centres, opening of
showrooms, conducting exhibitions / fairs, publicity,
providing of design inputs etc.
Both the Central and State Government provide
financial assistance under this scheme on sharing
basis.
Under this scheme, so far 52 Handloom Clusters
have been sanctioned for the State, over 7 phases, at a
total project cost of Rs.34.82 crore, which includes a
subsidy of Rs.31.76 crore from the Central and
Rs.2.49 crore from the State Government. The
beneficiaries contribution is Rs.0.57 crore. The
implementation of the scheme is in progress at various
stages.
The Central and State Government have so far
released Rs.23.37 crore as grant to the 52 Handloom
Clusters towards the implementation of this scheme.
The Details of 52 Cluster Development Programme
under the Integrated Handloom Development
Scheme are as follows
Sl. No.
Name of the Handloom Cluster
Project cost (Rs. in lakh)
Amount so far released (Rs.in lakh)
Phase – I, 2006-2007, Implementing Agency – 2 Clusters by Co-optex & 1 by Textile Committee
1 Tiruchirapalli 200.00 101.73
2 Tiruvannamalai 200.00 107.45
3 Kurinjipadi 200.00 105.65
Phase – II, 2007-2008, Implementing Agency – Co-optex
4 Nilayur 59.70 58.80
5 Veeravanallur 59.70 34.26
6 Padirivedu 59.70 58.80
7 Jayamkondam 59.70 58.80
Sl. No.
Name of the Handloom Cluster
Project cost (Rs. in lakh)
Amount so far released (Rs.in lakh)
8 Kandachipuram 59.70 58.80
9 Appakudal 59.70 58.80
10 Sholinghur 59.70 58.80
11 Sirumugai 59.70 58.80
12 Thandampalayam
59.70 58.80
13 Palani
59.70 58.80
Phase – III, 2007-2008, Implementing Agency – Department of Handlooms and Textiles
14 Emaneswaram 59.90 58.51
15 Vengamedu 60.00 58.53
16 Edapadi 52.60 51.35
17 D.G.Pudur 59.08 55.78
18 Chennimalai 58.30 57.25
19 Palliyadi 58.50 57.52
20 Tiruppur 59.00 57.50
21 Punelveli 55.00 54.00
22 Thirubuvanam 58.10 58.10
23 Attayampatti 59.99 58.97
24 Vandiyur 60.00 57.27
25 Sawyarpuram 59.00 58.22
26 Chinnalapatti 59.00 59.00
27 Gudiyatham 60.00 52.50
28 Pudupettai 58.25 54.50
Sl. No.
Name of the Handloom Cluster
Project cost (Rs. in lakh)
Amount so far released (Rs.in lakh)
Phase – IV, 2008-2009, Implementing Agency – Tamil Nadu Handloom Development Corporation
29 Pillayarpalayam 56.00 33.34
30 Naduveerapattu 42.00 24.35
31 Ayyampettai 60.00 39.86
32 Paramathi Vellore 60.00 26.70
33 Pollachi 59.75 33.30
34 Paramakudi 60.00 25.40
35 Sellur 54.59 37.18
36 Srivilliputtur 60.00 32.47
37 Doddampalayam 60.00 32.85
Phase – V, 2008-2009, Implementing Agency – Weavers Service Centre
38 Esalem 60.00 60.00
39 Thirumalpur 60.00 43.52
40 Dadagappatti 60.00 46.58
Phase – VI, 2010-2011, Implementing Agency – Department of Handlooms and Textiles
41 Pandian Nagar 60.00 15.15
42 Kanjikovil 60.00 13.33
43 Bhavani 59.00 10.16
44 Murugan 60.00 8.99
45 Vadambachery 60.00 14.97
46 Sengunthapuram Sri Sundara Vinayagar,
60.00 12.80
47 Pallakkattupudur 58.40 13.23
48 Palayamkottai 60.00 14.61
Sl. No.
Name of the Handloom Cluster
Project cost (Rs. in lakh)
Amount so far released (Rs.in lakh)
Phase – VII, 2010-2011, Implementing Agency – Co-optex
49 Pallavar 60.00 17.15
50 Varadaraja 60.00 18.76
51 Arni 59.55 18.38
52 Rasipuram 59.18 15.94
TOTAL 3482.19 2336.31
The Government have released Rs.8.65 crore
during 2011-2012 towards the implementation of this
scheme. A provision of Rs.10 crore has been made in
the Budget Estimate of 2012-2013.
(b) Group Approach for Development of Handlooms
“Group Approach” component of Integrated
Handloom Development Scheme envisages benefiting
those Handloom Weavers, who are not covered under
the clusters. A group should preferably have 10 (or)
more weavers which can be in the form of Self Help
Group / Primary Weavers Co-operative Society /
individual weavers. Financial Assistance is provided
under this scheme towards basic inputs like margin
money, purchase of new looms, dobby, jacquard and
accessories, skill upgradation and construction of
worksheds. This scheme is implemented with the
Central and State Governments financial assistance
having 2 years as the implementation period.
Under this scheme, the Government of India
have sanctioned 271 Group Approach Projects for
Tamil Nadu at a total project cost of Rs.19.15 crore
which includes a subsidy of Rs.14.46 crore from the
Central and Rs.3.45 crore from the State Government.
The beneficiaries’ contribution is Rs.1.24 crore. Among
the 271 Group Approach Projects, 119 projects at a
cost of Rs.10.28 crore have so far been completed. In
respect of the remaining 152 Group Approach Projects,
the 1st instalment of the Government grant of
Rs.5.42 crore has been released. Under this scheme
13,621 weavers are deriving the benefits.
The Government have released Rs.2.63 crore
during 2011-2012. Towards the implementation of the
Group Approach Scheme, a provision of Rs.10 crore
has been made in the Budget Estimate of 2012-2013.
(c) Financial Assistance to the Handloom Organisation
(i) Marketing Incentive
Marketing incentive is granted on the sale of
handloom products to maintain price competitiveness in
the market. It is extended to the State Handloom
Corporations, Apex Co-operative Societies, Primary
Weavers’ Co-operative Societies and National
Handloom Organisations. Handloom agencies are
utilizing this amount to attract the consumers to
improve sale of handloom goods. The quantum of
financial assistance will be 10% of the average sales
turnover of the previous 3 years.
(ii) Strengthening of Handloom Organisations
Under the component of strengthening of
handloom organizations, financial assistance is
provided towards restructuring of National and State
Level handloom organisations such as Handloom
Corporations, Apex Handloom Co-operative Societies
etc., to make them viable by enhancing their credit
limit / working capital. The funding pattern under this
component shall be on 50:50 sharing basis between
the Government of India and the State Government.
(iii) Assistance for Innovative Ideas, Publicity, Monitoring, Supervision, Training and Evaluation of the Scheme
Under this component, upto 10% of the project
cost may be utilized towards innovative ideas and 2%
of the project cost may be utilized towards Publicity,
Monitoring, Supervision, Training and Evaluation of the
Scheme.
(d) Virudhunagar Mega Handloom Cluster
The Virudhunagar Mega Cluster has been
established in Tamil Nadu under “Comprehensive
Handloom Cluster Development Scheme” (CHCDS) of
the Government of India.
Handloom Weavers in the following 6 Districts
will be benefited under the Virudhunagar Mega
Handloom Cluster.
Sl.No.
District Place of the Weavers
1. Virudhunagar Sundarapandiam, Srivilliputhur, Rajapalayam, Arupukottai
2. Madurai Sellur, Nilayur,
3. Sivagangai Karaikudi 4. Ramanathapuram Emaneswaram,
Paramakudi 5. Thoothukudi Ettayapuram ,
Sawyarpuram 6. Tirunelveli Sankarankovil,
Kadayanallur, Veeravanallur
The Virudhunagar Mega Handloom Cluster is
being implemented at a total project cost of
Rs.87.68 crore, which includes a subsidy of
Rs.70 crore from the Government of India and Rs.8.84
crore from the State Government and Rs.8.84 crore
as the beneficiaries’ contribution.
This scheme envisages upgrading the
technology through provision of new looms, jacquards,
pneumatic jacquards, battery linked inverter lighting
units and accessories, setting up of dye houses,
effluent treatment plants, construction of common
facility centres, marketing complexes, training centres,
design studio etc., during the implementation period of
5 years.
The Government of India have sanctioned a
sum of Rs.48.02 crore as the 1st instalment of Central
Share and have released a sum of Rs.5.99 crore.
The State Government has released its corresponding
share of Rs.73.22 lakh for this Project. Placing
purchase orders for supply of 1640 pedal looms, 2400
electrical pirn winding machines, 20 pneumatic
jacquards, 1670 number of jacquards, 4280 battery
linked inverter lighting units and 20 dobby boxes at a
total cost of Rs.7 crore. The supply of these items is in
progress and will be completed during the current
year.
The remaining components of the project will be
implemented in a period of another 4 years.
10.8 IMPLEMENTATION OF THE CO-OPERATIVE HANDLOOM WEAVERS’ SAVINGS AND SECURITY SCHEME
Tamil Nadu State is the forerunner to introduce
the Co-operative Handloom Weavers’ Savings and
Security Scheme from the Year 1975 for encouraging
the savings habit among the weavers and ensure the
safety of their future. The Government of India also
participated in the scheme from the year 1985-1986 to
2006-2007 and contributed their share.
Under this scheme, a weaver member in the
Weavers Co-operative Society contributes 8 paise per
rupee of wage earned and the State Government is
contributing 4 paise per rupee of wage as its share.
Accordingly, the total subscription of 12 paise is being
deposited in the Government account upon which, the
State Government allows 9.5% interest. Out of the
9.5% interest, 6.5% is being credited to the weaver
member’s account and the balance 3% is being utilized
for implementation of the welfare schemes such as
Weavers’ Old Age Pension Scheme and Weavers’
Family Pension Scheme. Under this scheme 76,051
weaver members have been enrolled so far. The
Government have released Rs.4.76 crore during
2011-2012.
A provision of Rs.5 crore has been made in the
Budget Estimate for the year 2012-2013 towards 4%
contribution of the State Government.
10.9 TAMIL NADU CO-OPERATIVE HANDLOOM WEAVERS’ OLD AGE PENSION SCHEME
In Tamil Nadu, the Old Age Pension Scheme for
Handloom Weavers in the Co-operative fold was
introduced in the year 1997. The members enrolled in
the Co-operative Handloom Weaver’s Savings and
Security Scheme who attain the age of 60 years are
eligible to receive Rs.1,000/- per month as old age
pension. As announced on the floor of Assembly on
the Handlooms and Textiles Demand during the year
2011-2012, the old age pension payable to the
Handloom Weavers has been enhanced from Rs.400/-
to Rs.1,000/- per month. The Old Age pension amount
of Rs.200/- is paid from out of the 3% interest earned
under the Savings and Security Scheme Fund Account
and the balance of Rs.800/- is paid from the
Government Account. 18,646 weavers are getting Old
Age Pension under this scheme. During the year
2011-2012, the State Government have sanctioned
Rs.5.05 crore for this scheme.
A provision of Rs.5 crore is made in the Budget
Estimate for the year 2012-2013 for the implementation
of this scheme.
10.10 TAMIL NADU CO-OPERATIVE HANDLOOM
WEAVERS’ FAMILY PENSION SCHEME
Tamil Nadu is the first State to introduce a new
welfare scheme for weavers in Co-operative Societies
called “Tamil Nadu Co-operative Handloom Weavers’
Family Pension Scheme” with effect from 01.01.1992.
According to this scheme, in the event of death of a
weaver member before attaining the age of 60 years,
the nominee of the deceased weaver was paid a
monthly pension of Rs.550/- for 10 years from the date
of death of the weaver.
In the event of death of a weaver before
attaining the age of 60 years, family pension will be
paid to the nominee of deceased weaver for a period of
10 years or upto the age of 60 years (if the deceased
weaver would have been alive) whichever is beneficial
to the weaver’s family. As announced on the floor of
Assembly on the Handlooms and Textiles Demand
during the year 2011-2012, the Family Pension payable
to the nominees of the deceased handloom weavers
has been enhanced from Rs.550/- to Rs.1,000/- per
month. Out of the total monthly family pension amount
of Rs.1000/-, the amount of Rs.350/- is paid from out of
the 3% interest accrued under the Co-operative
Handloom Weavers Saving and Security Scheme Fund
Account and Rs.650/- is paid from the Government
Account. 1,549 weaver families are getting family
pension under this scheme.
10.11 HEALTH INSURANCE SCHEME FOR
HANDLOOM WEAVERS
To protect and to improve the health condition of
handloom weavers, Health Insurance Scheme has
been introduced by the Government from 2005-2006
through ICICI Lombard General Insurance Company
Ltd. Under this scheme, 4 members of weaver’s family
are eligible to get medical assistance upto Rs.15,000/-
annually. The weavers of co-operative fold, weavers
out side the co-operative fold and ancillary workers of
the handloom industry have been enrolled and are
getting benefit under this scheme.
The annual premium of Rs.939.76 per weaver is
being paid by the State and Central Governments to
ICICI Lombard General Insurance Company as
follows:-
Government of India contribution Rs.769.36
State Government contribution (including weavers contribution of Rs.50/- borne by the Government of Tamil Nadu)
Rs. 170.40
Total Rs. 939.76
As per the scheme guidelines, sending the
medical claims by the beneficiary by RPAD or Courier,
Creation of Web Based MIS to ascertain the status of
claims, settlement of reimbursement claims within 30
days, formation of Grievance Redressal Mechanism
and conducting Health Camps are some of the special
features of this scheme.
GRIEVANCE REDRESSAL COMMITTEE
The Government of India have constituted an
Independent Grievance Redressal Committee to
receive and consider individual or group complaints in
any one of the following types of grievances against
the insurer :-
• Any partial or total repudiation or rejection of
claims by the insurance company
• Delay in settlement of claims
• Non-issuance of or delay in issuance of any
Insurance Document/Health Insurance Card
During the year 2011-2012, 8 Grievance
Redressal Committee meetings were conducted, of
which 5 meetings were conducted at Chennai and the
other 3 meetings were conducted at Kancheepuram,
Virudhunagar and Erode respectively so as to redress
the grievances of the weavers.
Under this scheme 3,14,253 weavers have been
enrolled . During the year 2011-2012 , the State
Government have sanctioned Rs.4.33 crore for this
scheme.
A provision of Rs.5.45 crore is made in the
Budget Estimate for the year 2012-2013 by the State
Government as its share for the implementation of this
scheme.
10.12 MAHATMA GANDHI BUNKAR BIMA YOJANA a. Insurance Scheme for Handloom Weavers
The Insurance Scheme called “Mahatma Gandhi
Bunkar Bima Yojana” is being implemented by the
Government of Tamil Nadu for weavers from the year
2004-2005 onwards with the assistance of Government
of India in collaboration with Life Insurance Corporation
of India. Under Mahatma Gandhi Bunkar Bima
Yojana, the total premium to be paid to Life Insurance
Corporation per weaver/per annum is Rs.330/-, of
which Rs.150/- is contributed by Government of India,
Rs.100/- is contributed by the Life Insurance
Corporation of India and the weaver’s contribution of
Rs.80/- is paid by the State Government.
The insurance amount payable to the Handloom
Weavers enrolled under the scheme is as detailed
below:-
S.No. Details Sum assured in Rs.
1. Natural Death 60,000/-
2. Accidental Death 1,50,000/- 3. Total Disability due to accident 1,50,000/- 4. Partial Disability due to accident 75,000/-
During 2011-2012, 479 death claims have been
settled and the insurance amount to the tune of
Rs.3.02 crore has been paid.
The weavers of co-operative fold and weavers
outside the co-operative fold are benefited under this
scheme. 2,43,321 handloom weavers have been
enrolled and benefited under this scheme. During the
year 2011-2012, the State Government have
sanctioned Rs.2 crore for this scheme.
b. Scholarship under Shiksha Sahayog Yojana
Under this scheme, scholarship will be paid to
the children of handloom weavers (2 children) studying
in Std 9th to 12th at Rs.1200/- per annum, (Rs.600/- in
two instalments) per child for a maximum period of four
years or till they complete 12th Std. The weavers’
already enrolled under Mahatma Gandhi Bunkar Bima
Yojana are covered in this scheme.
The above two schemes will be continued
during the year 2012-2013. The State Government
have made a provision of Rs.2.20 crore in the Budget
Estimate for the year 2012-2013 towards the payment
of premium on behalf of weavers under this scheme.
10.13 AWARDING SCHOLARSHIPS UNDER
DR.M.G.R.HANDLOOM WEAVERS’ WELFARE TRUST
With a view to encourage the wards of the
weavers to pursue higher studies, Dr. M.G.R.
Handloom Weavers’ Welfare Trust was formed in the
year 1986. Every year scholarship for the following 32
disciplines are provided to one male and one female
student who have secured highest mark, till they
complete their course in each discipline:-
Sl.
No.
Discipline Scholarship
(per year)
Rs.
1 M.B.B.S.
2 B.D.S.
3 B.E.
4 B. Tech.
5 B.V. Sc.
3500
6 B.Sc. (Agri) / Horticulture
7 B. Pharm 3000
Sl.
No.
Discipline Scholarship
(per year)
Rs.
8 B.Sc., (Nursing)
9 Hotel Management and Catering
2500
10 M.E.
11 M. Tech.
12 MD
13 MS
14 M.A.
15 M. Com
16 M. Sc.
17 M.B.A.
18 M.C.A.
19 C.A.
3500
20 B.A.
21 B.Sc.
22 B.Com.
23 B.B.A.
24 B.B.M.
25 B.C.A.
26 B.Sc. (Computer Science)
27 Polytechnic
28 I.A.S./I.P.S./Bank Officers Exam
29 +2 Highest Mark
2500
30 10th Highest Mark 2000
31 Diploma in Physiotherapy
32 Handloom Technology
3000
During 2011-2012 academic year, 72 Students
were awarded scholarships and this scheme will be
continued for the year 2012-2013.
10.14 STIPEND TO STUDENTS OF INDIAN INSTITUTE OF HANDLOOM AND TEXTILE TECHNOLOGY
While selecting candidates to the 3 year Diploma
in Handloom and Textile Technology course conducted
by the Indian Institute of Handloom Technology, Salem,
priority will be given to the wards of the weavers. The
Government of Tamil Nadu have been granting stipend
to the students admitted in the course as detailed
below:-
(Amount in Rs)
Year GOI share/ per month
TN Govt. share/
per month
Total
I year 200 200 400
II year 225 225 450
III year 250 250 500
Besides, an additional stipend and book money
of Rs.1,000/ -each per annum is being paid. Further,
for the 2nd year students, Educational Tour Allowance
of Rs.1,000/-per annum and for the 3rd year students,
assistance of Rs. 500/- for Project Work is also being
paid. These financial assistance is provided by the
Tamil Nadu Government from Tamil Nadu Co-operative
Union Education Fund.
The students studying in Gadag (Karnataka) and
Venkatagiri (Andhra Pradesh) under Tamil Nadu
Government quota are also being paid stipend from
Tamil Nadu Co-operative Union Education Fund. In
the academic year 2011-2012, 77 students were
benefited under this scheme.
This scheme will be continued in 2012-2013.
11. OTHER INITIATIVES TAKEN BY THE DEPARTMENT
11.1 HANDLOOMS (RESERVATION OF ARTICLES FOR PRODUCTION) ACT, 1985
To protect the handloom weavers / industry from
the onslaught of powerlooms, the Central Government
have enacted the Handlooms (Reservation of Articles
for Production) Act, 1985 and have reserved the
following 11 items for exclusive production by
handlooms.
(1) Saree (2) Dhoty (3) Towel / Gamcha and Angavastram
4) Lungi (5) Chaddar Mekhala / Phanek
(6) Jamakkalam / Durry or Durret
(7)Dress Material
(8) Barrack Blanket, Kambal or Kamblies
(9) Shawl, Loi, Muffler, Pankhi etc.
(10) Woollen Tweed
(11) Khes / Bedsheet / Bedcover/ Counterpane / Furnishing (including tapestry, upholstry)
A separate Enforcement Wing headed by
Deputy Director (Enforcement) Headquarters at
Chennai and circle level offices at Salem,
Tiruchengode, Erode, Tiruppur and Madurai under the
Assistant Director / Assistant Enforcement Officers
have been functioning for effective implementation of
the Handlooms (Reservation of Articles for Production)
Act 1985 in Tamil Nadu.
To propagate the Handlooms Reservation Act
among the public and also to protect the handloom
industry, awareness campaigns are being conducted in
the powerloom concentrated areas. To implement the
Handlooms (Reservation of Articles for Production)
Act 1985 vigorously inspections are being carried out
continuously in powerloom concentrated areas.
11.2 CONDUCT OF EXHIBITIONS
To promote marketing of handloom goods,
District Level Exhibitions, Special Handloom Expo and
National Handloom Expo are being conducted with the
financial assistance of Government of India. During the
year 2011-2012, 49 District Level Exhibitions,
11 Special Handloom Expo and One National
Handloom Expo were conducted at various places of
Tamil Nadu and sales to the tune of Rs.22.37 crore
was generated. A sum of Rs.2 lakh for each district
level exhibitions, Rs.8 lakh for Special Handloom Expo
and Rs.36.50 lakh for National Handloom Expo, were
sanctioned by the Government of India.
11.3 SILK MARK
With a view to promote the sale of silk products
in domestic and international market, the Government
of India have introduced “Silk Mark” on 17.04.2004.
Silk Mark is an identity which is affixed only on pure
and natural silk products of Mulberry, Tusser, Eri or
Muga silk to ensure its quality. Authorized users can
only use this silk mark labels. The Silk Mark Scheme is
being implemented by the Silk Mark Organisation of
India (SMOI) a society registered under the Karnataka
Societies Registrations Act, 1960 sponsored by the
Central Silk Board, Ministry of Textiles, Government of
India.
Any individual firm/ Institution, Central and State
Government Institutions, Apex and Private Corporate
body can become a member of Silk Mark Organisation
of India (SMOI). The registered members of this
organization can only use the Silk Mark Labels in their
silk products.
So far, 73 Silk Handloom Weavers’ Co-operative
Societies have registered themselves as Authorised
users in the Silk Mark Organisation of India (SMOI) and
purchased 1,21,000 silk mark labels in 2011-2012. The
cost of one Silk Mark Label is Rs.2/-
11.4 HANDLOOM MARK SCHEME
To create an exclusive identity to the handloom
products and to improve its marketing, the “Handloom
Mark Scheme” was launched by the Government of
India on 28.06.2006. This Scheme helps not only to
acquire uniqueness by handloom manufacturers
holistically with a separate identity for the handloom
products but also provides guarantee to the consumers
about the genuineness of Handloom products. In
today’s competitive market, this scheme is helpful to
identify the handloom products and to have a touch
with the customers. This scheme is being implemented
by the Textile Committee, Ministry of Textiles,
Government of India.
912 Primary Weavers’ Co-operative Societies
and 5,366 individual weavers/ Exporters have been
registered under the Handloom Mark Scheme in Tamil
Nadu upto 31.03.2012. The details of registration under
Handloom Mark Scheme in Tamil Nadu are as follows:-
Details of Registration All India Tamil Nadu Individual weavers 6067 5244 Master Weavers 190 65 Co-operative societies 2387 912 Apex Handloom Weavers Co-operative societies
31 2
Traders/Retailers (Domestic Market)
47 27
Manufacturer Exporter (Export Market)
74 24
Merchant Exporters 23 3 Others 144 1
Total 8963 6278
Four types of Handloom Mark Labels are
available at 20 paise, 35 paise, 60 paise and 1 rupee
25 paise. The Handloom Weavers Co-operative
Societies are procuring 20 paise labels for their usage.
So far, 1,31,88,024 Handloom Mark Labels have been
purchased by the societies.
11.5 REGISTRATION OF HANDLOOM PRODUCTS UNDER GEOGRAPHICAL INDICATION OF GOODS ACT, 1999.
Registration of specialised goods produced in a
particular region can be made under the Geographical
Indication of Goods Act 1999. By this Act, producers
and customers are protected against misuse of these
geographical indications. The registration of goods
under the Geographical Indication Act not only
promotes exports of such goods but also protects their
usage and sale in other countries which falls under the
Trade Related Intellectual Property Rights (TRIPS)
Agreement of World Trade Organisation (WTO).
So far, Kancheepuram Silk Sarees, Bhavani
Jamakkalam, Madurai Sungudi Sarees, Salem Silk
(Venpattu) Arni Silk and Kovai Kora Cotton Sarees
have been registered by the Department of Handlooms
and Textiles under this Act.
21 Silk Weavers Co-operative Societies and 10
Private manufacturers who are producing
Kancheepuram Silk Sarees have been registered as
authorised user under Geographical Indication of
Goods Act. In Erode Circle, 29 Handloom Weavers
Co-operative Societies who are producing ‘Bhavani
Jamakkalam’ have also been registered as authorised
user under this Act.
Further, action is being taken to get the
authorized user certificate for Kovai Kora Cotton and
Salem Venpattu.
11.6 WEAVERS TRAINING INSTITUTE, ERODE
With a view to provide training to the handloom
weavers in modern technologies of weaving, the
Government of Tamil Nadu have established a
Handloom Weavers’ Training Centre at Erode at a cost
of Rs.25.71 lakhs.
In this training centre, 2 types of training such as
Classroom Training and Practical Training are being
provided to the handloom weavers. In classroom
training, subjects like types of looms, yarn counts, yarn
quality, variety of cloths, cloth construction, weaving
techniques etc. are being taught. In practical training,
weaving of coarser and finer count yarn varieties of
cloth in upgraded jacquard looms are being provided.
Annually, around 600 weavers can be trained
through this training centre. Upto 31.03.2012, training
has been imparted to 583 handloom weavers by this
centre. During the year 2011-2012, a sum of
Rs.9,00,000/- has been released to meet the recurring
expenses for training. Further, action is being taken to
construct hostel and CAD facilities at an estimated cost
of Rs. 16.70 lakhs. After the completion of construction
of Hostel and Canteen facilities, the weavers in other
districts could stay and get trained in this Centre.
11.7 TAMIL NADU HANDLOOM AND HANDLOOM
SILK WEAVING WORKERS WELFARE BOARD
In 2000-2001, the Tamil Nadu Manual Workers
Board and 9 other Welfare Boards including Tamil
Nadu Handloom and Handloom Silk Weaving Workers
Welfare Board were established. The Tamil Nadu
Handloom and Handloom Silk Weaving Workers
Welfare Board was merged with the Manual Workers
Board w.e.f. 21.07.2004. Subsequently, this board is
functioning separately under the control of the Labour
Department with effect from 01.09.2006 based on the
orders issued by the Government.
The Hon’ble Minister for Handlooms and Textiles
is the Chairman of the Board and 7 Government
representatives, 7 Employers’ representatives and 6
representatives of the Workers were appointed as
members of the Board. At present, 2,44,660 weavers
have been enrolled as members of this Board.
Financial assistance such as Old Age Pension, Medical
Assistance, Educational Assistance, Insurance
coverage for Natural and Accidental death and
disability are being provided through this Board. The
details are as follows:-
Sl. No.
Item
Financial Assistance provided
per member Rs.
Accident Insurance Scheme
i Accidental Death 1,00,000
1.
ii Accidental Disability Based on extent of disability
2. Natural Death Assistance 15,000 3. Funeral Expenses
Assistance 2,000
Educational Assistance i Girl Children studying 10th 1,000 ii 10th Passed 1,000 iii Girl Children studying 11th 1,000 iv Girl Children studying 12th 1,500
v 12th Passed 1,500 vi Regular degree course 1,500
vii Regular degree course with hostel facility
1,750
viii Regular Post Graduate course
2,000
ix Regular Post Graduate course with hostel facility
3,000
x Professional Degree course
2,000
xi Professional Degree course with hostel facility
4,000
4.
Xii Professional P.G. course 4,000
Sl. No.
Item
Financial Assistance provided
per member Rs.
xiii Professional P.G. course with hostel facility
6,000
xiv I.T.I. or Polytechnic course 1,000
xv I.T.I. or Polytechnic course with hostel facility
1,200
5. Marriage Assistance 2,000 Medical Assistance i. Maternity Assistance 6,000
6.
ii. Reimbursement of cost of spectacles
Upto 500
7. Pension 1000 (per month)
Upto 31.03.2012, financial assistance to the tune
of Rs.32.13 crore has been provided for the benefit of
1,48,742 weavers through this Board.
11.8 PRIZE AWARD SCHEME FOR THE BEST EXPORTERS
With a view to encourage the handloom export
and to augment the sale of handloom products in the
international market, the Government of Tamil Nadu is
implementing the Prize Award Scheme for the Best
Exporters since 1975.
In order to encourage the export production
among the Weavers Co-operative Societies a sum of
Rs.1 lakh per annum is provided every year to
distribute Trophies and Certificate to the Best Exporters
and Primary Weavers’ Co-operative Societies under
this scheme..
A provision of Rs.1 lakh has been made in the
Budget Estimate for the year 2012-2013.
11.9 PRIZE AWARD SCHEME FOR THE BEST TALENTED WEAVERS
To encourage introduction of new designs in
handloom varieties, the Government is implementing
Prize Award Scheme for the Best Weavers who have
developed new designs in cotton and silk varieties.
The prize for the best designs are as follows :-
First prize Rs.5,000/- Second prize Rs.3,000/- Third prize Rs.2,000/-
Implementation of this scheme helps to collect
marketable varieties with new innovative designs. The
expenditure under this scheme is being met from the
Research and Development Fund of Tamil Nadu
Co-operative Union. This scheme will be continued
during the year 2012-2013.
11.10 WAIVER OF WEAVERS HOUSING LOAN
AVAILED FROM HOUSING AND URBAN DEVELOPMENT CORPORATION (HUDCO)
HUDCO have sanctioned loan to the
co-operative handloom weavers for construction of
House-cum-Workshed. As the weavers who have
availed HUDCO loan could not repay the loan, the
Government have waived a sum of Rs.11.70 crore of
Housing Loan of weavers as on 31.03.2008 and
decided to make quarterly payment of loan availed
with HUDCO on behalf of weavers from the year
2008 to 2015. Accordingly, a sum of Rs.9.61 crore was
paid so far to HUDCO by the Government for the last
four years on behalf of weavers.
A provision of Rs.1.80 crore is made in the
Budget Estimate for the year 2012-2013.
12. SCHEMES UNDER POWERLOOM SECTOR
12.1 TAMIL NADU POWERLOOM WEAVING WORKERS’ WELFARE BOARD
In order to implement various welfare schemes
for the powerloom weaving workers, the Government of
Tamil Nadu have established the “Tamil Nadu
Powerloom Weaving Workers’ Welfare Board” under
Tamil Nadu Manual Workers (Regulation of
Employment and Condition of Work) Act 1982.
Financial Assistance such as accident insurance
benefit, insurance benefit for natural death, assistance
for funeral expenses, educational assistance, marriage
assistance, maternity assistance, assistance for
purchase of spectacles and pension benefit are being
provided to the powerloom weaving workers through
this Board. So far 1,22,510 powerloom weaving
workers have been enrolled in this board and financial
assistance to the tune of Rs. 8.79 crore was released
for 44,527 beneficiaries.
12.2 IMPLEMENTATION OF FREE POWER SUPPLY TO POWERLOOM WEAVERS
Free power supply upto 500 units for powerloom
sheds are being provided bi-monthly. So far, 1,25,734
powerloom sheds are getting benefits under this
scheme. During the year 2011-2012, the Government
released a sum of Rs.50.73 crore under this scheme.
In the Budget Estimate 2012-2013, a sum of
Rs.62.49 crore has been provided for implementing
this scheme.
12.3 INTEGRATED TEXTILE PARKS
Scheme for Integrated Textile Parks (SITP)
Government of India have introduced the
scheme for Integrated Textile Parks in the year 2005 by
merging Apparel Park for Export Scheme (APES) and
Textile Centre Infrastructure Development Scheme
(TCIDS). This Scheme has been implemented during
10th and 11th Five Year Plan. Under this scheme, the
Government of India have approved for 10 Textiles
Parks to be set up in Tamil Nadu.
The details of implementation of 15 Textile Parks
are as follows:
S. No. Name of the Project
Project Cost
(Rs. In crore)
Year of Sanction
Direct Employ
ment (no of
Persons)
Indirect Employ
ment (No. of
persons)
Date of Production
Commenced / to be Commenced
Apparel Park Export Scheme (APES)
1 Nethaji Apparel Park, Tiruppur
17.62 Oct
2002 7000 9000
Commenced production from 2005
2 Apparel Park at Irungattu Kottai
26.70 June 2004
10000 10000 Commenced production from 2006
Textile Centre Infrastructure Development Scheme (TCIDS)
3 TCIDs at Kancheepuram
21.81 Feb 2004
Infrastructure Completed
4 Windmill Project for TEKIC, Tiruppur
25.00 Nov 2003
Production of Electricity
Completed
5
Cauvery Hi-Tech Weaving Park, Kumara palayam
33.32 Jan
2005 1500 15000
Commenced production from Aug-
2006
Scheme for Integrated Textile Park (SITP)
6 Hi-Tech Weaving Park at Palladam
55.42 Feb 2005
2500 3500 Commenced production
from Apr-2008
7 Hi-Tech Weaving Park at Kumara Palayam
34.82 July 2006
1500 1500 Commenced production
from Feb-2009
8 Madurai Integrated Textile Park Vadipatti
87.30 Mar 2007
3000 4000
Commenced production from Oct-
2009
9 Integrated Textile Park at Karur
116.10 Mar 2007
3000 4000
Commenced production from Oct-
2010
10
GILT Integrated Textile Park at Chengapalli, Tiruppur
149.45 Mar 2006
5000 7500 Expected
Production from 2013
11 SIMA Processing Park at Cuddalore
112.60 Feb 2007
5000 10000 Expected
Production from 2013
12 Vaigai Hi-Tech Weaving Park at Andipatti
61.01 Aug 2009
2500 3500 Expected
Production from 2013
13
Kancheepuram Arignar Anna Silk Centenary Memorial Handloom Silk Park, Kancheepuram
83.83 April 2010
10000 8200 Expected
Production from 2013
14 SLS Textile Park at Bagalure
126.20 Oct 2011 7330 13700 Expected
Production from 2013
15 Pallavada Technical Textile Park at Pallavada
117.08 Oct 2011 5300 21000 Expected
Production from 2013
Total 1068.26 63630 110900
All these special projects help to generate
employment in the Rural and Semi Urban areas.
Setting up of New Textile Park in the State will
develop the State Textile Industry. Due to participation
of local entrepreneurs and direct investment, huge
employment opportunities will be generated. By
considering all the merits, the Hon’ble Chief Minister of
Tamil Nadu have announced and ordered to release
9% of the Project Cost of each project to a maximum of
Rs.9 crore as State Government grant to all the Textile
Parks being established in Tamil Nadu. A State Level
Monitoring Committee has been constituted by the
Government to oversee the implementation of this
scheme.
12.4 COMMON EFFLUENT TREATMENT PLANT,
TIRUPPUR
Tiruppur plays an important role in the
production of hosiery and knitwear in our Country. As
per the directions of the Hon’ble Supreme Court and
Hon’ble High Court, Chennai, 18 Common Effluent
Treatment Plants have been established at a cost of
Rs.742.93 crore, to treat the effluents being let out by
the dyeing units in Tiruppur area. Bank loans have
been obtained to the tune of Rs.519.46 crore for this
purpose. Consequent to the high interest burden on
account of this loan and dwindling export business,
hosiery and knitwear industry was severely affected in
Tiruppur. The dye house owners had represented their
case to the Government. The Government acceded to
the request of the Tiruppur dye house owners for
extending a helping hand to those who had set up
Common Effluent Treatment Plants at a huge cost.
With an aim of reducing the loan burden, the
Government had announced a sum of Rs.320 crore
during the year 2009-2010 as financial assistance. On
this the Central Government share is Rs.200 crore and
the State Government share is Rs.120 crore.
Out of Rs.320 crore announced by Central and
State Governments, a sum of Rs.150 crore has so far
been released and a sum of Rs.107.96 crore has been
adjusted against the loan outstanding of the 18
Common Effluent Treatment Plants.
On account of war footing efforts taken by the
Tamil Nadu Government, the Hon’ble Chief Minister
had convened a meeting with the representatives of
Common Effluent Treatment Plants, Farmers, Hon’ble
Ministers and Secretaries to Government. After this
consultative meeting, the Hon’ble Chief Minister had
announced a sum of Rs.200 crore as interest free loan
for installing latest technology enabling the Common
Effluent Treatment Plants to achieve zero liquid
discharge level. The Hon’ble Chief Minister had also
ordered to form a team under the Chairmanship of
Principal Secretary to Government, Environment and
Forest Department to visit the State of Gujarat for
studying the effluent discharge and treatment methods
and to give report. The Committee had visited Gujarat
and submitted its report to Government in this regard.
As per the recommendations of the Team, it
was advised to adopt either Nano Technology or
Brine re-use technology, to achieve zero discharge of
effluents. The Government had sanctioned a sum of
Rs.179.34 crore as interest free loan to 18 Common
Effluent Treatment Plants from the amount already
sanctioned based on their capacity to adopt any one of
the above technologies for achieving zero liquid
discharge.
In order to procure machineries and spares
for achieving zero discharge level by utilizing the
latest technology by Common Effluent Treatment
Plants, it has been instructed to prepare a project
report and submit to Tamil Nadu Pollution Control
Board after vetting by Anna Institute of Technology or
IIT, Madras. On recommendation from Tamil Nadu
Pollution Control Board, the interest free loan would be
released to Common Effluent Treatment Plants as per
the following pattern.
1) In the first phase, 10% of the loan amount
would be released for civil works for
installation.
2) 20% of the loan amount would be released
for procurement of machineries.
3) 40% of the loan amount would be released
on receipt of machineries at the Common
Effluent Treatment Plant site.
4) 20% of the loan amount would be released
when the machineries are being
commissioned after installation.
5) Finally, 10% of the loan amount would be
released on successful completion of zero
liquid discharge for a period of 1 year by the
Common Effluent Treatment Plant.
As ordered by the Government, out of
18 Common Effluent Treatment Plants in Tiruppur,
17 Common Effluent Treatment Plants have prepared
project reports by incorporating the latest technology
and submitted the same to Tamil Nadu Pollution
Control Board. In the first phase, 7 Common Effluent
Treatment Plants project reports have been Vetted by
Anna University and recommended by Tamil Nadu
Pollution Control Board to the department. The
detailed project reports of the remaining Common
Effluent Treatment Plants are yet to be received from
Tamil Nadu Pollution Control Board. Based on this, the
first phase 10% of loan amount for civil works and 20%
of loan amount for purchase of machineries put
together a sum of Rs.24.36 crore are about to be
released out of interest free loan of Rs.179.34 crore
sanctioned by the Government. Budget provision has
been made for the balance amount of Rs.154.98 crore
in the year 2012-2013.
13. PART II SCHEMES FOR THE YEAR 2012-2013
13.1 Purchase of Remotely Managed Franking
Machine for the Directorate
Purchase of “Remotely Managed Franking
Machine” for the Directorate of Handlooms and Textiles
at a cost of Rs.1.30 lakh during the year 2012-2013.
13.2 Installation of Fire Extinguishers for the
Directorate
Installation of 13 Fire Extinguishers for the
Directorate of Handlooms and Textiles at a cost of
Rs.6,000/- each with a total cost of Rs. 0.78 lakh during
the year 2012-2013.
13.3 Purchase of Inverter for the Directorate
Purchase of Inverter for providing un-interrupted
power supply for the Directorate of Handlooms and
Textiles at a cost of Rs.5 lakh during the year
2012-2013.
13.4 Computerization of 10 Circle Offices
To implement various Developmental and
Welfare Schemes, State and Central programmes and
collect data at Circle level, a sum of Rs.5 lakh will be
sanctioned for Computerization of 10 Circle Offices in
the second phase at a cost of Rs.50,000/- each for
purchase of Computer with Printer and will be installed
during the year 2012-2013.
13.5 Purchase of Laptop, Projector, Scanner and
Accessories for the Directorate.
Purchase of Laptop, Projector, Scanner and
Accessories for the Directorate of Handlooms and
Textiles at a cost of Rs.1.50 lakh during the year
2012-2013
13.6 Computerization of Weavers Co-operative Societies by Bio-metric System.
In order to have effective monitoring of all the
Weavers Co-operative Societies, Computerization of
Weavers Co-operative Societies will be done during the
year 2012-2013, for which the ELCOT has been
entrusted the work of development of an Application
Software with Bio-Metric and Bar Coding integration at
a cost of Rs.5 lakh.
13.7 Modernization of Conference Hall of the
Directorate
Modernization of the existing Conference Hall of
the Directorate of Handlooms and Textiles at a total
cost of Rs.12.42 lakh will be undertaken during the year
2012-2013.
14. INSTITUTIONS UNDER THE ADMINISTRATIVE
CONTROL OF THE DEPARTMENT A. Co-operative Spinning Mills
In order to promote industrial development and
to ensure fulfilment of Hank Yarn requirement at
reasonable rates to the weavers, the Government had
started 13 Co-operative Spinning Mills from the year
1958 to 1965 in backward areas of Tamil Nadu.
Subsequently, the Government of Tamil Nadu
established 5 more Co-operative Spinning Mills as
permitted by Government of India in the year
1984-1985 for the benefit of Repatriates and Scheduled
castes, to ensure continuous and uninterrupted supply
of yarn to weavers and to give employment opportunity
for the rural folk.
Due to various factors the performance of the 13
Co-operative Spinning Mills had dwindled and became
completely defunct. From the year 2004-2005 onwards,
only the following 5 Co-operative Spinning Mills are
functioning with 97,280 spindles.
• Anna Co-operative Spinning Mills, Andipatti,
Theni District.
• Bharathi Co-operative Spinning Mills,
Ettayapuram, Tuticorin District.
• Kanyakumari District Co-operative Spinning
Mills, Aralvaymozhi, Kanyakumari District
• Krishnagiri Co-operative Spinning Mills,
Uthangarai, Krishnagiri District
• Pudukottai Co-operative Spinning Mills
Aranthangi, Pudukottai District.
These Co-operative Spinning mills produce yarn
required for the free Distribution of Sarees and Dhoties
Scheme, Free Uniform Scheme for the School Children
which are being implemented by the State
Government. Apart from this, yarn required by the
weavers Co-operative Societies for production of
market varieties are also produced.
A modernization proposal has been drawn up for
the 5 functional Co-operative Spinning mills by the
South India Textile Research Association at a total
project cost of Rs.104.41 crore which is to be
implemented by availing funds from National
Co-operative Development Corporation.
B. The Tamil Nadu Handloom Weavers’ Co-operative Society Limited (Co-optex)
The Tamil Nadu Handloom Weavers’
Co-operative Society Limited, under the brand name of
Co-optex was registered as a State Level
Co-operative Organisation in the year 1935. With its
systematic planning and functioning, it stands as the
foremost apex handloom weavers’ co-operative society
in India completing 77 years of unstinted service to
the handloom weavers in the State.
Main objectives:
1. To purchase and supply yarn to the affiliated
Primary Weavers’ Co-operative Societies.
2. To procure and market the products of the
affiliated Primary Weavers’ Co-operative
Societies.
Apart from this, Co-optex also acts as the Nodal
Agency for the implementation of the following
Government Schemes:-
a) Distribution of Sarees and Dhothies under
Free Distribution Scheme.
b) Free distribution of Sarees and Dhothies to
the Old Age Pensioners.
c) Free supply of uniforms to school children
through Adi-Dravidar and Tribal Welfare
Department, Backward Classes, Most
Backward Classes and Minority Welfare
Department and Social Welfare Department.
Performance during 2011-2012
1. Retail Sales
During the year 2011-2012, handloom and
powerloom goods worth Rs.217.91 crore were sold
and it includes an export sale of Rs.2.21 crore also.
This sale was higher by Rs.19.59 crore than the
previous year. Besides change in procurement policy
from seasonal procurement to continuous procurement,
opening of new showrooms, relocation and
modernization of existing showrooms and introduction
of wide range of products and designs have helped
Co-optex to achieve the record sales.
2. Government Schemes
Distribution of Sarees and Dhoties under Free
Distribution Scheme
As the Nodal Agency for implementation of the
Scheme of Free Distribution Sarees and Dhoties to the
poor people during the Pongal Festival, 170.84 lakh
Sarees and 169.75 lakh Dhoties are being procured
and supplied at an estimated cost of Rs.350 crore.
Distribution of Sarees and Dhoties to Old Age Pensioners Under this Scheme, Co-optex has supplied
16.28 lakh sarees and 5.50 lakh dhoties to the
beneficiaries under Old Age Pension Scheme during
Deepavali 2011. For Pongal 2012, 17.15 lakh sarees
and 5.60 lakh dhoties have been supplied.
Supply of Uniform Cloth Under this Scheme, Co-optex has procured and
supplied 39.59 lakh mtrs. of Khaki Drill and 75.71 lakh
mtrs. of Blue Casement required for 2 sets of uniforms
to the school children through Social Welfare
Department. Apart from this, 19.44 lakh mtrs. of
uniform cloth has been supplied to Adi-Dravidar and
Tribal Welfare, Backward Classes and Most Backward
Classes Departments.
3. Yarn Sale
Co-optex has supplied yarn worth Rs.184 crore
to the Handloom and Powerloom Primary Weavers
Cooperative Societies by procuring it from the
Co-operative Spinning Mills as well as through tender.
4. Design Intervention
In view of the stiff market competition, Co-optex
has taken following initiatives regarding designs :-
i. Wedding Silk Saree Collection at affordable
price ranging from Rs.3,000/- to Rs. 6000/-
was introduced to suit the taste of new
generation brides.
ii. ‘Sarva Lakshana collection’ in Silk and
‘Natchatra collection’ in Polyester Sarees with
Embroidery were introduced.
iii. Overall, 1579 new designs in numerous colours
in sarees, curtains, readymades, kurthas and
chudidars were introduced during the year
2011-2012.
5. Market intervention
i. As per the advice of the Hon’ble Chief Minister,
for the first time in its history, Co-optex
launched Formation Day Bonanza of BUY 2
GET 1 FREE from 17.3.2012 to 02.04.2012.
Besides evoking overwhelming response from
the regular customers, this scheme brought
large number of new customers to the
doorsteps of Co-optex registering a record and
impressive sales performance of Rs.34.84
crore as against Rs.7 crore during the
corresponding period of the last year.
ii. To make the export varieties available to
domestic customers at affordable price, first
Co-optex International showroom was opened
on 30.11.2011 at Pondi Bazaar, Chennai.
Besides this, fully modernized and air-
conditioned showrooms were opened at
Malleswaram in Bengaluru on 01.01.2012, at
Dadar in Mumbai on 23.03.2012 and at Netaji
Road, Erode on 25.03.2012.
iii. National Handloom Expo 2012 was conducted
from 10.02.2012 to 05.03.2012 at the Co-optex
Exhibition Ground, Chennai and sales to the
tune of Rs.3.58 crore were achieved through
novel methods of publicity. Besides this, 65
exhibitions were conducted resulting in sales of
Rs.3.96 crore during the year 2011-2012.
Cluster Development Programme (Centrally Sponsored):
1 Two Major Clusters are under implementation at
Tiruvannamalai and Kurinjipadi at a total financial
outlay of Rs.2 crore each.
2 Ten Mini Handloom Clusters at a Project cost of
Rs.60 lakh each are under implementation at 1)
Padrivedu, 2) Appakudal 3) Sirumugai 4)
Nilaiyur 5) Kandachipuram 6) Sholinghur 7)
Thandampalayam 8) Palani 9) Veeravanallur and 10)
Jayankondam with a total project cost of Rs.6 crore.
3 Four Mini Silk Handloom Clusters at Pallavar,
Varadaraja, Arni and Rasipuram Super with the
financial assistance of Central and State
Governments at a Project cost of Rs.60 lakh each
are under implementation.
4. One Mega Handloom Cluster at Virudhunagar at
a total Project cost of Rs.87.68 crore is being
implemented over a period of 5 years with
Government of India share of Rs.70.00 crore
(80%), State Government share of Rs.17.68 crore
(10%) and beneficiaries share of Rs.17.68 crore
(10%). The Government of India have sanctioned
Rs.599.72 lakh and the Government of
Tamilnadu have also sanctioned Rs.73.22 lakh as
first phase of financial assistance. The process
of procurement and distribution of looms and
accessories to the weavers for a total value of
Rs.746.16 lakh is under progress.
Action Plan for 2012- 2013
(i) To have effective inventory control and to improve
the information system, Enterprise Resource
Planning (ERP) solution is being implemented
connecting all 201 showrooms through web-based
application software.
(ii) ISO 9001 : 2008 Certification for procurement and
marketing activities of Co-optex is being obtained
for standardising these procedures on par with
best standards.
(iii) Bar-coding is being introduced for all the products
to ensure better availability of data for research
and planning of marketing as well as to bring in
accountability for the sales persons and the
procurement wing.
(iv) New showrooms are proposed to be opened at
Chennai, Salem, Thiruchendur and Tiruppur in
Tamil Nadu, Bengaluru in Karnataka, Kakinada in
Andhra Pradesh and Shirdi in Maharashtra. New
buildings will be constructed replacing existing
showrooms at Anna Salai and Pondi Bazar
besides renovating Thillaiyadi Valliammai
showroom at Pantheon Road in Chennai.
Second Co-optex International Showroom will be
opened in Hyderabad. Showrooms at Lucknow in Uttar
Pradesh and Jaipur in Rajasthan are being fully
modernised.
(v) To attract younger generation of weavers, it is
being ensured that all the handloom weavers will
get the minimum income of Rs.5,000/- per month
by way of providing additional incentives for
marketable varieties.
(vi) Season-wise marketing and advertising plan is
being devised and production is being arranged
accordingly. For example, new varieties of cotton
sarees, shirtings, dress materials and handmade
jeans are introduced during summer season with
appropriate publicity.
(vii) Society-wise production plan has been given for
the entire year to ensure availability of required
variety of goods in all the showrooms on time for
achieving the retail sales target of Rs. 437 crore
for the year 2012-2013. 20 % of the total
production plan has been reserved exclusively for
new designs and varieties developed by product
development and designs wing.
(viii) A total of 1858 new designs are planned to be
introduced during 2012-2013 under Weavers Cum
Designers Project as Part II Scheme with financial
assistance of Rs.15.00 lakh from the State
Government.
C. Tamil Nadu Handloom Development
Corporation Ltd., Chennai
The Tamil Nadu Handloom Development
Corporation Limited was established in 1964 with the
objective of providing financial assistance outside the
co-operative fold engaging themselves in
Manufacturing, Trading, Marketing of handlooms,
powerloom and hosiery cloth.
At present the Corporation is having 11,841
members. The Corporation now suffers from poor
recovery of loans which has resulted in paucity of
working capital. Therefore, it has stopped issue of
fresh loans to the Weavers. However, repeat loans for
the members are being sanctioned regularly.
In the paid up share capital of Rs.4.29 crore of
the Corporation, the share of the Govt. of Tamil Nadu is
Rs.2.67 crore and the remaining share capital of
Rs.1.62 crore is paid up by the members. The
Corporation has obtained a loan of Rs.3.30 crore being
cash credit facility from the State Bank of India. As the
Corporation was unable to repay the loan of
Rs.2.17 crore availed from the State Bank of Patiala,
the Government of Tamil Nadu have extended a loan of
Rs. 2.17 crore for repayment.
Performance of the year 2011-2012:
With a view to promote the welfare of the
handloom weavers, the Corporation besides being its
prime activity has engaged itself in other activities
under various welfare schemes. Being the 1st phase, it
acts as the implementing agency for 9 handloom
cluster development programmes sanctioned under
Integrated Handloom Development Scheme and
completed the work of first and second years under this
scheme and release of 3rd installment is expected
shortly.
The Corporation has been supplying clothes to
the Indian Railways. In 2011-2012, it has supplied
cloth worth Rs.7 crore to the Indian Railways through
Association of Corporations and Apex Societies of
Handlooms (ACASH) and earned an income of
Rs.11.50 lakh. During the 2011-2012 the Corporation
has sanctioned loans to the tune of Rs.80 lakh and
earned tentative profit of Rs.13.27 lakh.
Action plan for the year 2012-2013
In the current year, the Corporation has
proposed to Implement the following programmes :-
1. In order to show progress in loan issue, the
Corporation has proposed to sanction loans to 250
members to the extent of Rs.120 lakh and to collect
Rs.190 lakh against dues outstanding.
2. The Corporation has proposed to supply
required quantity of yarn to the Co-operative Societies
and Private handloom weavers through National
Handloom Development Corporation and to avail
subsidy from Government of India.
3. The Corporation has also proposed to supply
cloth to the tune of Rs. 10 crore to Indian Railways
through Association of Corporations and Apex
Societies of Handlooms (ACASH).
D. Tamil Nadu Textile Corporation Limited, Coimbatore
With an objective to revive the sick and closed
mills by taking over them, to establish powerloom
sheds and also to rejuvenate the textile industry, the
Tamil Nadu Textile Corporation was set up in the
year 1969. Two powerloom units one at Aruppukottai
and another at Sivagiri with 96 looms each and also
at Kurichi near Coimbatore with 12 auto-looms and
24 plain looms are functioning under this Corporation.
The corporation is producing cotton and polyester
fabric varieties. There are 20 staff and 140 workers
working in the Corporation.
The Corporation is engaged in the production of
clothes for Government supply under Free Uniform
Scheme. Further the Corporation produces uniform
fabrics for supply to the State Transport Corporation,
Tamil Nadu Electricity Board, Co-operative Sugar Mills,
Tamil Nadu Cements, Police Department and other
Public Sector Undertakings by securing orders from
these institutions. With these, the Corporation is
holding a prominent position in fulfilling the clothing
needs of the State Government institutions.
In the year 2011-2012 the Corporation has
effected sales to the value of Rs.33.91crore.
Action Plan for 2012-2013.
It is estimated that during the year 2012-2013 the
Corporation has proposed to sell 291.95 lakh metres of
fabrics to the value of Rs.92 crore and earn net profit
of Rs.92 lakh.
E. Tamil Nadu Zari Limited, Kancheepuram
Tamil Nadu Zari Limited is started in the year 1974.
The company is an ISO 9001 certified State Public
Sector Undertaking. It is engaged in the manufacture of
zari gold lace and supply to Silk Weavers Co-operative
Societies at reasonable rates. The Tamil Nadu Zari
Ltd., is also undertaking the quality checking of zari
received from outsourcing as per the allotment order of
the Centralized Purchase Committee for Zari. The
Company also undertakes testing the quality of Zari
and zari made fabric by non-destructive testing method
through X-Ray Fluorescence Analysers installed at the
testing centres in Kancheepuram and Salem. To cater
to the zari requirement of Kumbakonam area, the Tamil
Nadu Zari Limited established a branch at
Kumbakonam in the year 1999.
There are 10 Staff and 103 workers working in
this company.
The Government have issued orders after
considering the views of weavers and the price hike of
Gold and Silver to change the Gold content of Zari from
0.60 percent to 0.50 percent and silver content from 57
percent to 40 percent.
In order to avoid scarcity in supply of Zari, Silk
Weavers Co-operative Societies were permitted to
purchase zari by short tender from open market from
16.3.2012 after following procedures in Tamil Nadu
Transparency in Tenders Act 1998 and Rules 2000.
In the year 2011-2012, Tamil Nadu Zari Ltd has
produced 22,974 marcs zari and sold 23,728 marcs to
the value of Rs. 32.36 crore.
Action Plan 2012-2013
1) It has been proposed to float tender for
purchase of silver wire twice in a month instead of once
in 30 days from this year.
2) It is planned to go in for e-Tendering to
augment the raw materials.
3) Tamil Nadu Zari Ltd has planned to produce
and sell 4000 marcs per month for the year 2012-2013.
F. Tamil Nadu Co-operative Textile Processing Mill,
Erode
The Tamil Nadu Co-operative Textile Processing
Mill was started in the year 1973. The Mill is
undertaking various processing activities such as
Bleaching, Dyeing, Mercerizing, Printing etc., The Mill
is an ISO 9001-2008 certified institution. In this Mill 19
employees and 281 workers are working. The Mill has
the capacity to process about 15 lakhs mts. of cloth
per month. Apart from processing of cloth required for
uniform schemes of the Government, the Mill
undertakes the processing and supply of cloth to Tamil
Nadu Khadi and Village Industries Board. Powerloom
Weavers Co-operative Societies, Handloom Weavers
Co-operative Societies, Sarvodaya Sanghs, Central
Prison, Coimbatore, Handloom Development
Corporations of Kerala and Karnataka and Private
Exporters for processing and Printing of fabrics.
The Mill is treating the effluents and recycling
water for processing by Reverse Osmosis and Reject
Management System.
Owing to the non-compliance of the rules and
regulations of the Tamil Nadu Pollution Control Board,
the Tamil Nadu Co-operative Textile Processing Mill,
Erode was closed on 23.02.2011. Soon on assumption
of charge, the present Government remitted the penalty
amount of Rs.1,11,46,363/- to enable re-opening the
Mill.
The Mill was reopened on 10.6.2011 by the
Hon’ble Chief Minister of Tamil Nadu through Video
Conferencing and the Mill resumed production once
again.
During 2011-2012, the Mill has processed
102.55 lakh mts. of cloth and made a turn over
Rs.14.57 crore.
Action Plan for the year 2012-2013
The Mill has proposed to increase the per day
production capacity from 45000 mts. to 70000 mts. by
availing financial assistance under the ICDP Scheme
G. Tamil Nadu Co-operative Spinning Mills
Federation (TANSPIN) Chennai
In order to regulate the purchase of cotton in
Co-operative Spinning mills, Tamil Nadu Co-operative
Spinning Mills Federation (TANSPIN) was established
in December 1994. The primary objective of this
Federation is to ensure supply of quality cotton at
reasonable rate by procuring cotton from various
Co-operative Institutions, Federations, Cotton
Corporation of India, etc., to the Co-operative Spinning
Mills. To accomplish this, State Government has
sanctioned share capital assistance of Rs.25 crore and
cotton revolving fund of Rs. 2.07 crore.
During the year 2011-2012, TANSPIN has
provided a sum of Rs.1.50 crore to five functional
Co-operative Spinning Mills as advance through
Co-optex for purchase of cotton. Apart from this, a sum
of Rs. 0.75 crore has also been given as advance
directly to mills for purchase of cotton. TANSPIN has
collected service charges of Rs.23.78 lakh and earned
a tentative net profit of Rs. 0.50 lakh in the year
2011-2012.
15. BUDGET PROVISION FOR THE YEAR
2012-2013
A provision of Rs. 72207.51 lakh has been made
in the Budget Estimate for the year 2012-2013 under
Demand No. 17, Handlooms and Textiles as detailed
below:-
Sl. No.
Name of the Scheme Budget Estimate 2012-2013
(Rs. in lakh)
1 Free Distribution of Dhoties and Sarees Scheme
25600.00
2 Handling charges under Free Distribution of Dhoties and Sarees Scheme
1280.00
3 Free Electricity to Handloom Weavers 616.00
4 Free Electricity to Powerloom Weavers 6249.00
5 Rebate on sale of handloom cloth 7845.50
6 Marketing Incentive/Rebate under Integrated Handloom Development Scheme
7800.00
7 Cluster Development Programme under Integrated Handloom Development Scheme
1000.00
8 Group Approach for Development of Handlooms under Integrated Handloom Development Scheme
1000.00
9 Co-operative Handloom Weavers Savings and Security Scheme
500.00
10 Health Insurance Scheme for handloom weavers
545.30
11 Payment of premium under Mahatma Gandhi Bunkar Bima Yojana
220.00
12 Old Age Pension and Family Pension Schemes for Co-operative Handloom Weavers
500.00
13 Interest Subsidy to Primary Weavers Co-operative Societies
1300.00
14 Zero Liquid Discharge System at Tiruppur 0.01
15 Marine Discharge Project by using 13th Finance Commission Grant
0.01
16 Waiver of HUDCO Loan 180.00
17 Assistance for Introduction of New Designs 15.00
18 Setting up of Training Centre for Imparting Training for Handloom Weavers
9.00
19 Revival, Reform and Restructuring Package for Handloom Sector
0.01
20 Loan for Zero Liquid Discharge System at Tiruppur
15498.00
21 Powerloom Census (Rent for Powerloom Service Centre, Erode)
0.25
22 Ways and Means Advance to TEXCO 0.01
23 Ways and Means Advance to Co-operative Spinning Mills to settle the EPF dues
0.01
24 Ways and Means Advance to Co-operative Spinning Mills to settle the VRS dues
0.01
25 Establishment of Enforcement Machinery
164.26
26 Administrative Expenses (Including Pay and Allowances of staff)
1606.28
27 Secretariat Economic Services (Salaries of Staff and other Administrative expenses)
278.86
TOTAL 72207.51
DR.S.SUNDARARAJ
MINISTER FOR HANDLOOMS AND TEXTILES