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