Nabard Plans Rs 1050cr Loan To Handloom Sector

The National Bank for Agriculture and Rural Development (Nabard) will extend credit of Rs 1,050 crore to the handloom sector. This was announced by union minister for textiles, Kashiram Rana, yesterday.

The government has also initiated the process to formulate a new textile policy which will also address the issue of availability of finance to meet the working capital requirement of the handloom sector.

The minister pointed out that since it is not possible to meet this massive requirement through grants and other budgetary support, credit has to be made available at the desired level by Nabard under its refinance scheme at a concessional rate.

 

Requisite assistance will also be provided under the on-going schemes for infrastructure development during 1998-99.

About one lakh weavers will be covered through the project package schemes during the current year.

The government is also aiming to achieve a quantum increase in handloom exports. About 40 locations have been short-listed as prospective growth centres for the handloom sector. "It would be our endeavour to provide requisite support in an integrated and co-ordinated manner for the overall development of these centres in a phased manner," Rana said.