Nabard launches package for handloom weavers

The National Bank for Agriculture and Rural Development (Nabard) on Monday announced the launch of a new centrally-sponsored scheme for handloom sector. The scheme known as “Revival, Reform and Restructuring Package for Handloom Sector” will be implemented, starting with the current financial year with a total outlay of Rs 3,884 crore.

The Finance Minister had proposed the scheme in his 2011-12 Budget Speech. The new scheme, which will be implemented through Nabard, is likely to benefit 15,000 cooperative societies and 300,000 weavers across the country. Funds will be provided for repayment of 100 per cent of principal and 25 per cent interest as on date of the loan becoming an NPA which is overdue as on March 31, 2010 in respect of viable and potentially viable Primary Weavers Cooperative Societies and Apex Societies, Nabard said in a statement.

The scheme also covers individual handloom weavers, master weavers, Self Help Groups (SHGs) and Joint liability groups (JLGs) who have taken such loans for handloom weaving purposes, provided the banks agree for sanctioning fresh loans. There would be an overall ceiling of Rs 50,000 per individual beneficiary as far as funding under this scheme is concerned in respect of waiver of overdues of individual handloom weavers.

The government has further approved an interest subvention of 3 per cent for 3 years to be extended from the date of disbursal of the fresh loan extended by banks to the eligible handloom cooperative societies and individual handloom weavers covered under the scheme.

Out of the total amount of Rs 3,884 crore, the share of the Government of India will be Rs 3,137 crore and that of the state governments will be Rs 747 crore.