Rs 3,200 cr weavers' debt waiver plan to go to Cabinet soon

The Textile Ministry will soon seek a Cabinet approval for Rs 3,200 crore debt waiver scheme for handloom weavers, as part of the 100-day agenda of the UPA government, Secretary in the ministry Rita Menon said today.

Under the one-time waiver proposal, Centre will take a burden of Rs 2,400 crore, while the State governments will forego Rs 600 crore. The balance Rs 200 crore would be borne by the National Bank of Agricultural and Rural Development (NABARD).

Menon said that the Cabinet note on the proposal is ready and would be circulated for inter-ministerial consultations after it is approved by the new Textile Minister.

Dayanidhi Maran is expected to take charge as the Textile Minister in a couple of days, sources said.

"We would like to kick-off in the first 100 days the scheme involving one-time waiver of overdue loans of many of the handloom cooperative societies across the countries, across-the-board," she said. The proposal involves fresh lending to weavers' cooperatives at the priority sector agricultural rates.

Batting for the textile industry, the largest employer after agriculture, the ministry has proposed increased allocation of Rs 500-600 crore per quarter under the modernisation scheme - Technology Upgradation Fund.

A training programme for over 50 lakh labour that will piggyback on the National Rural Employment Guarantee Act is being given the finishing touches.