Banks not keen to sanction loans for handloom sector: Gangwar

He also informed that the govt has earmarked financial assistance of Rs 537 cr for schemes related to the sector during 2014-15

Banks are not showing eagerness to sanction loans for the handloom sector, forcing the Textiles Ministry to urge its Finance counterpart to fix a sub-target for the sector under priority sector lending, Parliament was informed today.

"State governments have informed that banks are not showing enthusiasm in providing loan to handloom weavers/ cooperative societies due to various reasons," Textiles Minister Santosh Gangwar said in a written reply to the Lok Sabha.

"Ministry of Textiles has been regularly pursuing the matter with Ministry of Finance and banks to extend loans to handloom weavers and their organisation as a regular agenda of state-level bankers' committee.

"Ministry of Finance has also been requested to fix a sub-target for handloom sector under priority sector lending," Gangwar said.

During 2013-14, against target for issuance of 2 lakh weavers' credit cards (WCCs) with expected credit mobilisation of Rs 1,200 crore, only around 71,643 WCCs have been issued and Rs 195 crore loan has been sanctioned by the banks.

Replying to another query, Gangwar said there has been a decline in the number of handloom weavers in the country. As per handloom census of 1995-96, the total number of handloom weavers and allied workers was 65.51 lakh, which as per handloom census of 2009-10, reduced to 43.32 lakh.

Besides, the Minister also informed that the government has earmarked financial assistance of Rs 537 crore for schemes related to the handloom sector during 2014-15.

The schemes include the National Handloom Development Programme; Handloom Weavers Comprehensive Welfare Scheme; Yarn Supply Scheme; and Comprehensive Handloom Cluster Development Scheme.