|
| Group Workshed Scheme for decentralized
powerloom weaving
industry |
-
Background
The decentralized powerloom sector plays an important
role in Indian Textile and Clothing Industry. The industry will have to
prepare itself to face the challenges on account of globalization of
trade and consequent competition, in order to survive and expand its
market share. Modernization by way of installing modern looms is the
need of the hour. However, the existing premises of powerloom weavers
are not adequate to accommodate modern automatic/shutteless looms and
such lack of appropriate space has been one of the reasons for slow pace
of modernization. Therefore, the Govt. of India have approved a Group
Workshed Scheme for powerloom workers during X Five Year Plan which aims
to provide improved working conditions in the decentralized powerloom
sector in terms of more space, facilitate installation of larger and
improved looms of bench mark technology, better work environment and
improved work efficiency.
-
Objectives
The Scheme aims at setting up of powerloom clusters
with modern weaving machines to enhance their competitiveness in the
global market.
-
Financial Assistance and funding
pattern
-
Under this Scheme, subsidy for construction of
workshed would be limited to 25% of the unit cost of construction
subject to a maximum of Rs. 80/- per sq. ft. The following norms will
be the guiding factors in arriving at the minimum number of looms to
be installed in a workshed:
-
Semi-automatic
loom
:
150 sq. ft.
- Automatic
loom
:
200 sq. ft.
- Shuttleless
loom
:
400 sq. ft.
- Wider width Shuttleless
loom
:
600 sq. ft.
The maximum permissible subsidy per beneficiary shall be restricted to Rs.
11.52 lakhs to cover an area of 14400 sq.ft. @Rs.80/- per sq. ft., for both
powerloom sheds and preparatory units.
-
The remaining equity requirement for the project
would be raised by the beneficiary by way of promoter’s contribution
(10%). Balance amount may be raised as loan from financial
institutions like banks, SFCs or HUDCO, or may be contributed by the
beneficiaries from own sources. Any escalation due to delays or
inflation would have to be borne by the beneficiary.
-
Eligibility :
The following general guidelines are prescribed for
selection of beneficiaries under the Scheme:
-
“Weavers” as eligible beneficiaries would include
weavers and entrepreneurs associated with powerloom units, including
master weavers.
-
Looms to be installed under this should have a
technology level above the plain powerlooms.
-
“Powerloom unit” would include weaving preparatory
such as winding, warping, sizing etc.
-
Operational Modalities / Guidelines :
-
There would be an Executing Agency (referred
hereinafter as EA) for setting up the Project under this Scheme which
may include the State Government of its agency, a registered
Co-operative Society or a Company set up by a group of powerloom
owners or by the local powerloom association under the Companies Act,
1956.
-
The responsibilities of EA would include
identification of user/member beneficiaries, identification of land,
project preparation and submission to the Government for approval,
arranging the required sources of finance, execution of the project
and its management.
-
The EA would prepare a detailed project report, for
the purpose of availing of subsidy under the Scheme, indicating the
following salient features :
-
Executive summary of the project.
-
Nature of the EA : whether the Govt. agency or
co-operative society or a company.
-
Details of the land - location, nature of ownership
(owned/leased) and the cost.
-
Details of beneficiaries, along with the worksheds
and looms proposed to be installed by each (ref. Annexure 1 for
guidance)
-
Component-wise cost of Project (ref. Annexure - 2
for guidance)
-
Project funding pattern, indicating the shares of
the EA, Central Govt and others; and loans (ref. Annexure - 2
guidance)
-
Details of maintenance of the project including
levy of user charges and repayment of loans (ref. Annexure - 3 for
guidance)
-
Schedule of construction indicating month-wise
plan
-
Layout of the Project Area indicating location of
sheds, infrastructure such as road/water supply/electricity/drainage
and other common facilites.
-
The schedules of rates of CPWD or the State PWD be
used, as the basis, for arriving at the cost estimates of construction
of worksheds and the infrastructure like roads etc.,
- Since the objective of the Scheme is to
facilitate the establishment of worksheds in a cluster which would
provide required scale of economics for common business operations
such as common raw-material sourcing, sharing of common facilities
etc., it is , therefore, expected that the worksheds that would come
up under the Scheme shall be a significant number so as to emerge as a
cluster.
-
Since this is a Group Workshed Scheme, where a number
of worksheds are expected to be located, development of required
common infrastructure like roads, water supply, electricity, drainage
etc., will have to be ensured by the EA. The assistance available
under the Textile Central Infrastructure Development Scheme (TCIDS) of
the Govt. of India, for development of such common infrastructure in a
textile cluster, may be availed of by the EA. Similarly, the
individual beneficiaries can also avail of the financial benefit under
the TUFS for acquisition of modern looms. Such an integrated approach
would help in development of an modern weaving cluster with required
linkages. Therefore, the project report should accordingly indicate
the details of not only the worksheds but also the infrastructure.
-
It is expected that the beneficiaries will make new
investments for purchase of looms and preparatory machinery for
installing in the worksheds. However, a beneficiary can also choose to
shift the existing looms (technology level of semi-automatic and
above) and preparatory machinery, from thev present locations to the
proposed worksheds.
-
There might be cases where a beneficiary may not need
an entire workshed. In such cases, more than one beneficiary can share
a shed.
-
In case of availability of unutilised sheds in the
local cluster, which were hitherto developed under Integrated
Infrastructure Development Scheme of Dept. of Small Scale Industries,
GOI, such sheds, if sutiable, may be acquired by the EA instead of
constructing the new sheds. However such sheds should meet the overall
objective of development of a modern weaving cluster with all
necessary linkages/infrastructure.
-
Commitment of the EA and the user beneficiaries in
participation, implementation and management of the Project is
pre-requisite for obtaining assistance under this scheme from the
Govt. of India. In order to satisfy the Govt., about such commitment,
the following requirements may be met by the EA/user beneficiaries
:
-
The EA is expected to be in possession of required
land before submission of Project report to the Govt. In case the EA
is not actually in possession, a letter of allotment from the State
Govt. or a document indicating “in principle” agreement for
purchase/sale of required land, would suffice.
-
The EA has to satisfy government to the effect that all participating
beneficiaries to the effect that they are all aware of the project details
including the user charges and the loan repayment schedule, if any and to the
role and responsibilities of the EA on their collective behalf.
-
Each of participating beneficiaries should give a
written undertaking to the EA that proposed worksheds, for which
assistance is being availed under the scheme, shall be used only for
the purpose of installing looms and the preparatory machinery and
shall not be utilized for any other purpose. Based on such
undertakings, the would be responsible to ensure that the worksheds
constructed under the Scheme are utilized only for the purposes for
which they are sanctioned.
-
The EA would allocate the sheds to the participating
beneficiaries, either on outright sale, lease or rental basis. The
project proposal shall indicate the modalities proposed to be adopted
by the EA for such allocation and the amount of outright purchase
price, or, montly rental per sq. ft. required to be paid by the
beneficiary unit.
-
After completion of the above mentioned preparatory
work, the project report shall be submitted by the EA to the Textile
Commissioner, GOI with a copy to concerned Regional Office. If the
project has component under TCIDS, the entire project proposal shall
be submitted to the TxC through the respective State Govt. The TxC
would carry out a detailed scrutiny of the project with respect to its
conformity with the guidelines of the Scheme and if there are any
shortcomings, the EA would be asked to revise the proposal
accordingly. The revised proposal, if any, will be placed by the
Textile Commissioner, after further scrutiny, before the Project
Appraisal and Approvals Committee, chaired by the Secretary
(Textiles), Govt. of India and have the Textile Commissioner,
as Secretary. Membership would include JS(Poerloom) and have commonality
with the TC
-
If the Project is approved by this Committee, such
approval will be communicated to the EA by the TxC. After receipt of
this communication, the EA would take up the construction.
-
Release of subsidy will be back-ended. Apart from
completion of the construction of workshed, the associated
loom/preparatory machinery should also be in position in the
respective workshed, before the claim is submitted by the EA for
release of subsidy to the Textile Commissioner.
-
It is expected that a powerloom unit availing of subsidy should atleast
function for a minimum lock-in period of three years from the date of
disbursement of subsidy.
In case it is found that subsidy from the Government
has been availed of on the basis of any false information, the Powerloom
unit or EA shall be liable to refund the Government Subsidy availed of ,
along with interest to be charged as per the Govt. rules from the date of disbursal to the
date of refund.
It is expected that the project would be executed as
per the approved framework. Hoever, in case of any changes, subsequent
to the approval, necessitated by the factors at the time of execution
of the project, such changes can be carried out only with the prior
approval of the Project Appraisal and Approval Committee(PA & AC).
-
In case the construction of workshed is substandard
and the loom/machinery have not installed, the subsidy amount can be
held back or reduced with approval of the Committee.
-
The physical varification of completion of the
construction of worksheds and the infrastructure and installation of
looms would be carried out by a Local Committee (LC), consisting of
the RO of the TxC, concerned State Govt. Agencies, Industry
Associations and other technical organizations such as TRAs/Textiles
Committee. The TxC would constitute such Local Committees separately
for each Group Workshed Scheme. The Officer In-charge of the concerned
RO of the TxC would act as Convenor of this Local Committee. The
responsibilities of this Committee would include; periodical
monitoring of the construction, physical verification and
certification for the purpose of release of subsidy and other
necessary guidance/support.
-
The ROs of TxC would assist EAs/proposed EAs in
conceptualisation, preparation and submission of the projects to the
TxC. They would also take proactive measures to sensitise the
decentralised powerloom industry to make use of the benefits available
under the Scheme.
-
A quarterly report would be submitted by the EA to
the Office of the TxC indicating the progress of work of each of the
components of the Project. Based on such reports and also inputs from
the Local Committees, a consolidated quarterly report would be
submitted by the TxC to the Ministry of Textiles, Government of
India.
|
