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Press Information Bureau <br />Government of India<br />Ministry of Textiles<br /><span style='float:right;font-size:80%;font-weight:lighter'>13 DEC 2019 5:07PM by PIB Delhi</span>
Powerloom Units

There is no report received in the Ministry that 60% of Powerlooms have been shut down and others are facing closure in Bhiwandi area. However, around 15% of Powerlooms may not be working in Bhiwandi due to various reasons like shortage of manpower, Low market demand of fabrics, sluggish market, etc.

Government of India, Ministry of Textiles is implementing PowerTex India Scheme, a comprehensive Scheme for the development of Powerloom sector w.e.f. 01.04.2017 to 31.03.2020 on Pan India basis including the State of Maharashtra, to promote the decentralized Powerloom sector. The brief details of the Scheme are as under:

 

 

Sr.No

Schemes

Benefits

1

PowerTex India

For development of Powerloom Sector PowerTex India a compressive scheme for development of Powerloom Sector has been launched on 01.04.2017.

i. In-situ upgradation of plain Powerlooms

Objectives:

-To provide financial assistance to economically weaker low-end Powerloom units, for upgrading existing plain looms to semi-automatic/shuttleless looms by way of fixing certain additional attachments/kits.

-To improve quality and productivity of the fabrics being produced and enable them to face the competition in domestic and international markets.

  • Powerloom units having up to 8 looms are eligible.
  • Eligible subsidy as under;

Type of Technology

GOI Subsidy per loom (in Rs.)

General (50%)

SC (75%)

ST (90%)

Plain loom to semiautomatic shuttle loom

20,000

30,000

36,000

Semi automatic shuttle loom to shuttleless  Rapier loom

25,000

37,500

45,000

Plain loom to shuttleless Rapier loom

45,000

67,500

81,000

  • Implemented on PAN India basis.
  • Kits/attachments viz., Weft Stop motion, Warp Stop motion, Efficient Braking device, Semi positive let off motion, Dobby, Jacquard, Anti crack device, self-lubricating nylon parts, pirn winding machine & rapier kit.

Kits should be purchased from the empanelled manufacturer registered with the O/o.Tx.C

ii. Group Work Shed Scheme

Objectives:

-To facilitate the establishment of worksheds for shuttleless looms in an existing or new cluster, which will provide required scale of economy for business operations?

-To organisePowerloom units in a cluster and to provide improved working condition in terms of more space, work environment, improve the work efficiency to enhance their competitiveness in the global market.

  • At least 24  nos. of shuttleless looms of width upto 230 cms (or)
  • 16 nos. of shuttleless looms of wider width i.e. 230 cms and above must be installed.
  • Additional subsidy for construction of Dormitory:  @ 125 Sq.ft per person.
  • Govt. Subsidy

General            (40%)  : Rs.400 per Sq.ft

SC                   (75%)  : Rs.750 per Sq.ft

ST                    (90%)  : Rs.900 per Sq.ft

iii. Yarn Bank Scheme

Objectives:

-To provide interest free corpus fund to Special Purpose Vehicle (SPV) / Consortium to enable them to purchase yarn at wholesale rate and give the yarn at reasonable price to the small weavers.

-To avoid middleman/ local supplier’s brokerage charge on sales of yarn.

  • Minimum 11 members required to form SPV
  • Max. GOI interest free corpus fund Rs.2 cr.

SPV has to provide matching amount and also, a Bank Guarantee equal to an amount of 25% of Govt. of India share.

iv. Common Facility Centre (CFC)

Objectives:

-To provide financial assistance for setting-up of Common Facility Centres such as design centre/studio, testing facilities, training centre, information cum trade centre and common raw material/ yarn / sales depot, water treatment plant for industrial use, dormitory, workers residential space, common pre-weaving facilities viz. yarn dyeing, warping & sizing, twisting etc., and post weaving facilities viz. processing, etc.

  • Pre-weaving, post-weaving, design studio, testing facilities, training centre, information cum trade centre and common raw material / yarn / sales depot, water treatment plant for industrial use, dormitory & workers’ residential space etc.
  • Minimum 11 members required to form SPV

Max. GOI subsidy Rs.2 cr. for machineries and Rs. 0.40 cr for building.

v. Solar Energy Scheme

  • Powerloom units having upto 8 looms are eligible.
  • On Grid Solar Power Plant (without Battery back-up) and Off Grid Solar Power Plant (with Battery back-up).

No. of Looms

(Solar capacity)

General (50%)

SC (75%)

ST (90%)

A) On Grid Solar Power Plant

4 Looms (4 KW)

Rs.1,40,000

Rs.2,10,000

Rs.2,52,000

6 Looms (6 KW)

Rs.2,10,000

Rs.3,15,000

Rs.3,78,000

8 Looms (8 KW)

Rs.2,80,000

Rs.4,20,000

Rs.5,04,000

B) Off Grid Solar Power Plant

4 Looms (4 KW)

Rs.1,80,000

Rs.2,70,000

Rs.3,24,000

6 Looms (6 KW)

Rs.2,70,000

Rs.4,05,000

Rs.4,86,000

8 Looms (8 KW)

Rs.3,60,000

Rs.5,40,000

Rs.6,48,000

       

 

vi. PradhanaMantri Credit Scheme

  • Under  MUDRA
  • Existing individual powerloom units (or) New individual / group enterprises involved in weaving activity are eligible.

Financial Assistance:

  • Margin money @20% of machinery cost with a ceiling of Rs.1 lakh and
  • Interest Subvention @ 6% per year for 5 years
  • Under Stand-up India    (SC/ST/Woman  who are new entrepreneurs)

Eligibility:

  • New Powerloom units established by a person who belongs to SC/ST/Woman Entrepreneur.
  • In case of non-individual units at least 51 % of the share holding and controlling stake should be held by either an SC (or) ST (or) Women entrepreneur.

Financial Assistance:

25% Margin Money (Max. Rs.25 lakh) on the machinery cost, the borrower is required to bring in 10% of the Project Cost as his/herown contribution.

vii. Grant-in-Aid &Modernisation/upgradation of Poqwerloom Service Centres

  • To enable Powerloom weavers in various clusters to avail services of Powerloom Service Centres.
  • Textile Research Associations (TRAs)/State Govt. agencies are running 32 no. of PSCs located across the country and providing various services like training, sample testing, design development, consultancy, conducting seminar/ workshop, etc. to the Powerloom sector on behalf of the GOI.
  • The Grant-in-Aid (GIA) provided to the PSCs of TRAs/State Govt. agencies is mainly for the recurring expenses for running the PSCs for providing the services to Powerloom sector.

The Govt. assistance will be provided for modernization of the existing infrastructure etc. Powerloom Service Centre’s and other facilities required in cluster for common services

viii. Tex Fund-Venture Capital Fund

  • MOT and SIDBI invests in the Venture Capital Fund Ltd. (SVCL) who in turn invest in form of equity to MSMEs to kick start an enterprise/ expansion.
  • Investments will typically be innovative in nature in private Powerloom MSME companies.

Equity participation by MOT/SIDBI: Max. 50% of the project cost with a ceiling of Rs.3.00 cr.

ix. Facilitation, IT, Awareness, Market Development & Publicity for Powerloom Schemes.

  • Buyer Seller Meet: Provide platform to the decentralized sector to showcase/ sell their products to wider market and assess consumer feedback.
  • Exposure Visit: Exchange of information to strengthen existing clusters/ diversify products and technologies.

Seminar/ Workshops: Essential to create awareness/ mobilize weavers to utilize Govt. schemes.

2

Converged Insurance Scheme for Powerloom weavers/workers.

Premium:

Contribution

51 to 59  Years of age

18 to  50 Years of age

AABY

PMJJBY

PMSBY

Beneficiary contribution

Rs.80

Rs.80

-

LIC

Rs.100

Rs.100

-

MOT

Rs.290

Rs.150

Rs.12

Total Premium

Rs.470

             Rs.342

Benefits:

Insurance Coverage on

Schemes

Total   Benefits

PMJJBY

PMSBY

PMJJBY + PMSBY

AABY

Natural Death

Rs.2,00,000

---

 Rs.2,00,000

 Rs.60,000 (Death due to any reason)

Accidental Death

Rs.2,00,000

Rs.2,00,000

Rs.4,00,000

Permanent  Disability

---

Rs.2,00,000

Rs.2,00,000

Partial Disability

---

Rs.1,00,000

Rs.1,00,000

               

 

This information was given by the Union Minister of Textiles, Smriti Zubin Irani, in written reply in the Lok Sabha today.

 

***

MM/ SB