PM for low-interest loans to weavers

With an eye on providing relief for the weaving community, Prime Minister Manmohan Singh has asked the finance minister to consider extending the facility of low-interest loans to handloom weavers, a scheme already available to the agricultural sector.

Launching a branding initiative for handloom products called "Handloom Mark" at a function here on Wednesday, Singh said he had spoken to both the finance and textile ministers to look at the problem of debt-afflicted handloom cooperatives.

"I have also asked the textile and finance ministers to look at the problem of debt which is afflicting handloom cooperatives so that this can be rescheduled or cooperatives recapitalised in a manner similar to that done for cooperative banks through the Vaidyanathan Committee," Singh said, adding that he was hopeful the issue would be resolved within the next three months.

Textile Minister Shankersinh Vaghela estimated the debt of handloom cooperatives at "over Rs 1,000 crore."

Noting that credit access and cost were two problems facing the sector, Singh said the government was looking at introducing a similar scheme to the Technology Upgradation Fund Scheme for textile for the handloom sector.

He announced that 230 new yarn depots would be opened to provide easy access to yarn for all clusters that had more than a thousand looms.

He also announced that in addition to the 20 handloom clusters that were being developed at a cost of Rs two crore each, the UPA government planned to cover another 100 clusters this year under the Integrated Handloom Cluster Development Scheme.

The prime minister endorsed the appeal made by Vaghela that all Indians must make it a point to wear handloom produce at least once a week as it provided employment to 65 lakh weavers.