annual report textile industry

Annual Report(2009-10)

Ministry of TextilesGovernment of India

C O N T E N T S

Sl.No. Chapter Page

I Highlights 1

II Functions & Organisational Set-up 19

III The Organised Textiles Mill Industry 31

IV Exports 43

V The Cotton and Man-made Fibre and Filament Yarn Industry 65

VI The Jute and Jute Textiles Industry 75

VII The Sericulture and Silk Textiles Industry 93

VIII The Wool and Woollen Textiles Industry 107

IX Decentralised Powerloom Sector 117

X Handlooms 125

XI Handicrafts 147

XII Public Sector Undertakings 163

XIII Textiles Research Associations 187

XIV Citizen Charter 211

XV Welfare of Scheduled Castes, Scheduled Tribes and Women 215

XVI Textiles in North Eastern Region 219

XVII Gender Justice 225

XVIII Information and Communication Technology in Textiles 229

XIX Vigilance Activities 235

XX Observations of the Comptroller and Auditor General of India 239

XXI Persons with Disabilities 247

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CHAPTER I

HIGHLIGHTS

m i n i s t r y o f t e x t i l e s

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The Indian Textiles Industry has anoverwhelming presence in theeconomic life of the country. Apart

from providing one of the basic necessitiesof life, the textiles industry also plays apivotal role through its contribution toindustrial output, employment generation,and the export earnings of the country.Currently, it contributes about 14 percentto industrial production, 4 percent to theGDP, and 17 percent to the country'sexport earnings. It provides directemployment to over 35 million people,which includes a substantial number of

CHAPTER I

HIGHLIGHTS

The President of India, Smt. Pratibha Devisingh Patil, releasing the CommemorativePostage Stamps on 'Textiles of India' at Rashtrapati Bhavan on December 10, 2009.

Also seen (from left to right) are the Secretary (Textiles), Minister of State for Textiles,Smt. Panabaaka Lakshmi, The Minister of Textiles, Shri Dayanidhi Maran and

the Minister of Communications and Information Technology, Shri A. Raja

SC/ST, and women. The Textiles sectoris the second largest provider ofemployment after agriculture. Thus, thegrowth and all round development of thisindustry has a direct bearing on theimprovement of the economy of the nation.

The Indian textiles industry is extremelyvaried, with the hand-spun and hand-woven sector at one end of the spectrum,and the capital intensive, sophisticatedmill sector at the other. The decentralizedpowerlooms/ hosiery and knitting sectorsform the largest section of the Textiles


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Sector. The close linkage of the Industryto agriculture and the ancient culture, andtraditions of the country make the Indiantextiles sector unique in comparison withthe textiles industry of other countries.This also provides the industry with thecapacity to produce a variety of productssuitable to the different market segments,both within and outside the country.

The major sub-sectors that comprise thetextiles sector include the organizedCotton / Man-Made Fibre Textiles MillIndustry, the Man-made Fibre / FilamentYarn Industry, the Wool and WoollenTextiles Industry, the Sericulture and SilkTextiles Industry, Handlooms, Handicrafts,the Jute and Jute Textiles Industry, andTextiles Exports.

ORGANISED COTTON/ MAN-MADEFIBRE TEXTILES INDUSTRY

The Cotton/ Man-made fibre textileindustry is the largest organized industryin the country in terms of employment(nearly 1 million workers) and number ofunits. Besides, there are a large numberof subsidiary industries dependent onthis sector, such as those manufacturingmachinery, accessories, stores,ancillaries, dyes & chemicals. As on31.10.2009, there were 1834 cotton/man-made fibre textile mills (non-SSI) in thecountry with an installed capacity of37.07 million spindles, 4,89,718 rotorsand 56,526 looms.

Textile production covering man-madefibre, filament yarn and spun yarnshowed a minor setback in 2008-09.Man-made fibre production recorded afall of about 15% and filament yarnproduction recorded a fall of about 6%during 2008-09. Blended and 100% non-cotton yarn production recorded a fall ofabout 4% during 2008-09.

Cloth production by mill sector showed anincrease of 1% during 2008-09.

During 2008-09 cloth production byhandloom, power loom decreased byabout 4% and 3%, hosiery sectorsproduction increased by 2%. An overallcloth production decreased by about 2%during 2008-09.

TECHNOLOGY UPGRADATION FUNDSCHEME (TUFS)

The Technology Upgradation FundScheme (TUFS) was commissioned on01.04.1999 initially for a period of 5 yearswith a view to facilitate the modernizationand upgradation of the textiles industry byproviding credit at reduced rates to theentrepreneurs both in the organized andthe unorganized sector. The Scheme,which has now been extended up to31.03.2012, has been fine-tuned tocatapult the rapid investments in thetargeted segments of the textile industry.TUFS has helped in the transition from aquantitatively restricted textiles trade tomarket driven global merchandise. It hasinfused an investment climate in the textilessector and in its operational life span haspropelled investment of more thanRs.1,86,804 crores upto 30.9.2009.

The modified techno-financial parametersof the Scheme will infuse capitalinvestment into the textiles sector, andhelp it capitalize on the vibrant andexpanding global and domestic markets,through technology upgradation, costeffectiveness, quality production, efficiencyand global competitiveness. It is estimatedthat this will ensure a growth rate of 16%in the sector. The modified structure ofTUFS focuses on additional capacitybuilding, better adoption of technology,and provides for a higher level ofassistance to segments that have a largerpotential for growth, like garmenting,technical textiles, and processing.

Progress of TUFS

The progress of TUFS is steadily going

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up which is evident from the data givenat table 1.1.

TEXTILE WORKERS' REHABILITATIONFUND SCHEME (TWRFS)

The Textile Workers' Rehabilitation FundScheme came into force with effect from15.09.1986 with the objective to provideinterim relief to textile workers renderedunemployed as a consequence ofpermanent closure of any particular portionor entire textile unit. Assistance under theScheme is payable to eligible workersonly for the purpose of enabling them tosettle in another employment. Suchassistance is not heritable, transferable orcapable of being attached on account ofany other liabilities of the worker. Theworker's eligibility shall cease if he takesup employment in another registered orlicensed undertaking. The rehabilitationassistance will not be curtailed if theworker fixes himself in a self-employmentventure.

Progress

Till 30.11.2009, under the Scheme, 43units in Gujarat, 6 units in Tamil Nadu,5 units in Maharashtra, 4 units in MadhyaPradesh, 7 units in Karnataka, 2 unit inWest Bengal, 3 in Punjab and 1 unit eachin Delhi and Kerala and Andhra Pradeshi.e., a total of 73 mills were found eligibleunder the scheme. A total of 103901workers out of 133666 workers on rollsof these mills had been disbursed reliefof Rs. 265.64 crore. The State-wisecumulative position is given at table1.2.

MAN-MADE STAPLE FIBRE ANDFILAMENT YARN INDUSTRY

The production of man-made staple fibreindustry which decreased by 14% in2008-09 as compared to 2007-08 isexpected to increase by 19% during2009-10. The production of all the Man-made staple fibres except polypropylene

Table 1.1(Rs. in crore)

Year Received Sanctioned Disbursed

No. of Project No. of Project Amount No. of Amount Subsidyapplications Cost applications Cost applications

1999-00 407 5771 309 5074 2421 179 746 1.00

2000-01 719 6296 616 4380 2090 494 1863 70.00

2001-02 472 1900 444 1320 630 401 804 198.89

2002-03 494 1835 456 1438 839 411 931 202.59

2003-04 867 3356 884 3289 1341 814 856 249.06

2004-05 986 7941 986 7349 2990 801 1757 283.60

2005-06 1086 16194 1078 15032 6776 993 3962 485.00

2006-07 12336 61063 12589 66233 29073 13168 26605 823.92

2007-08 2408 21254 2260 19917 8058 2207 6854 1143.37

2008-09 (P) 6113 56542 6072 55707 24007 6111 21826 2632.00

2009-10 (uptoSept. 2009) 584 7065 583 7065 1158 584 1019 2576.00

As on30.09.2009 (P) 26472 189218 26277 186804 79383 26163 67223 8665.438


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staple fibre are expected to record apositive growth in 2009-10 as comparedto previous year. Viscose, Polyster andAcrylic staple fibre are expected toincrease by 29%, 16%, 20% respectivelywhile Polypropylene staple fibre isexpected to decrease by about 6% in2009-10.

The total production of man-made filamentyarn is expected to increase by 7% during2009-10. The production of viscose, nylonand polyester filament yarn are expectedto increase by 1%, 6% and 8% respectivelywhile for polypropylene filament yarn, isexpected to decrease marginally by 1%during 2009-10. The installed capacityand details of production of man-madestaple fibre and filament yarn are given attable 1.3.

NATIONAL FIBRE POLICY

The Report of the Working Group onTextiles & Jute Industry for the 11th FiveYear Plan recommended consolidating

the raw material base including cotton,wool, silk, Man Made Fibre, technicaltextiles and jute, to facilitate the growthprocess in the industry. Further, the HighLevel Committee on Manufacturing(HLCM) in June 2007, under theChairmanship of the Prime Minister toconsider, inter alia, the Action Plan for thegrowth of Textiles and Garments decidedto formulate a Comprehensive Fibre Policy.It was held that man-made fibre sectorrequired special attention as the fibreconsumption was in the ratio of 57:43between cotton and man-made fibres incontrast to the 40:60 ratio prevailingworldwide. HLCM felt that a long termComprehensive Fibre Policy (natural &man-made) was required for steadyavailability of fibre.

Thus, in the above background andkeeping in view the fact that the marketeconomy and availability of fibre havebeen the determining forces in naturalselection of production process, Ministerof Textiles soon after assuming Office

Table 1.2

S. State No. of mills No. of No. of workers benefited Disbursed amountNo. identified workers (as on 30.11.2009) (Rs. in crores)

on rollNo. of Workers

mills received relief

1. Gujarat 43 80749 43 63591 159.44

2. Maharashtra 5 5529 5 3969 9.67

3. Madhya Pradesh 4 18977 4 17791 47.70

4. Tamil Nadu 6 5685 6 4668 7.03

5. Kerala 1 500 1 437 2.47

6. Karnataka 7 9620 7 4933 17.19

7. Andhra Pradesh 1 710 1 70 0.43

8. Delhi 1 5187 1 5170 11.93

9. West Bengal 2 1597 2 1324 2.19

10. Punjab 3 5112 3 1947 7.59

Total 73 133666 73 103901 265.64

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considered it imperative that aComprehensive National Fibre Policy bedevised as early as possible. Thus, hemade a public announcement in June,2009 regarding formulation of a 'NationalFibre Policy', with a view to achieve agrowth rate of 7 to 8% for the textilesindustry.

In line with the announcement, a WorkingGroup on National Fibre Policy wasconstituted on the 29th July, 2009,comprising Government organizations,Export Promotion Councils, IndustryAssociations and experts in the fielddrawn from eminent institutions/organizations. As decided in the WorkingGroup meeting in September 2009, eightSub Groups on various fibres were formedto critically examine the relevant aspects

and make recommendations to facilitateformulation of a comprehensive FibrePolicy. The issue is being pursuedvigorously to put a policy in place as earlyas possible in consultation with allconcerned stakeholders.

EXPORTS

India's textiles and clothing industry isone of the mainstays of national economy.It is also one of the largest contributingsectors of India's exports worldwide. Atcurrent prices the Indian textiles industryis pegged at US$ 55 billion, 64% of whichservices domestic demand. The textilesindustry accounts for 14% of industrialproduction; employs 35 million peopleand accounts for nearly 12% share of thecountry's total exports basket.

Table 1.3

Installed Capacity and Production of Man-Made Staple Fibre/Filament Yarn

Type No.of Installedunits Capacity 2006-07 2007-08 2008-09(P) 2009-10 2009-10

(TPA) (April-Dec.) (P)30-12-2009(P) (P)

Staple Fibre

Viscose 6 418.68 246.83 279.90 232.75 220.86 301.00

Polyester 15 1182.73 792.00 879.61 750.11 653.54 870.54

Acrylic 8 153.00 97.12 81.23 79.51 72.08 95.22

Polypropylene 3 8.70 3.52 3.43 3.43 2.37 3.24

Total 32 1763.11 1139.47 1244.17 1065.80 948.85 1270.00

Filament Yarn

Viscose 7 80.10 53.99 51.07 42.42 32.02 42.86

Nylon # 11 32.00 32.25 27.62 28.07 22.40 29.66

Polyester ## 43 2013.49 1270.87 1420.14 1332.09 1081.48 1436.46

Polypropylene # 13 17.63 13.37 10.51 15.08 11.34 14.87

Total 74 2143.22 1370.48 1509.34 1417.66 1147.24 1523.85

P = Provisional# = The exclusive capacity of N.F.Y. and P.P.F.Y.## = The Capacity under Broad Banding Scheme has been indicated against P.F.Y.

Production (Mn. Kg)


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Milestones

i) Exports of textiles and clothingproducts from India have increasedsteadily over the last few years,particularly after 2004 when textilesexports quota were discontinued.

ii) During 2003-04, 2004-05, 2005-06,2006-07 and 2007-08 exports wereof the order of US$13.5 billion, US$14.0 billion, US$ 17.52 billion, US$19.15 billion and US$ 22.13 billionrespectively, denoting an increase of64% in last four years but declinedby over 5% in 2008-09 with exportsof US$ 20.94 billion. The volume ofexports, as compared to certain othercountries, could not register a fastergrowth due to various reasons likeconstraints of infrastructure, highpower and transaction cost, incidenceof state level cess and duties, lack ofstate-of-the-art technology etc.

SCHEME FOR INTEGRATED TEXTILEPARKS (SITP)

The 'Scheme for Integrated Textile Parks(SITP)' is being implemented to facilitatesetting up of textile units with appropriatesupport infrastructure. IndustryAssociations / Group of Entrepreneursare the main promoters of the IntegratedTextiles Park (ITP).

Scope of the Scheme

The scheme targets industrial clusters/locations with high growth potential, whichrequire strategic interventions by way ofproviding world-class infrastructuresupport. The project cost covers commoninfrastructure and buildings for production/support activities, depending on the needsof the ITP. The components of an ITPare:

(a) Group A - Land.

(b) Group B - Common Infrastructure

like compound wall, roads, drainage,water supply, electricity supplyincluding captive power plant, effluenttreatment, telecommunication linesetc.

(c) Group C - Buildings for commonfacilities like testing laboratory, designcenter, training center, trade center/display center, ware housing facility/raw material depot, crèche, canteen,workers hostel, offices of serviceproviders, labour rest and recreationfacilities etc.

(d) Group D - Factory buildings forproduction purposes.

(e) Group E - Plant & machinery.

The total Project Cost for the purpose ofthis Scheme includes the cost on accountof components of ITP, as listed underGroups A, B, C and D above, providedthe ownership of the factory buildingsvests with the SPV. The SPV has,however, have the option of seekingfinancial support from Government ofIndia for components under Groups B andC only, if factory buildings are individuallyowned.

Progress of implementation

Forty (40) textiles park projects havebeen approved by the Ministry of Textiles.State-wise sanction of project is - AndhraPradesh (5), Gujarat (7), Karnataka (1),Madhya Pradesh (1), Maharashtra (9),Punjab (3) Rajasthan (6), Tamil Nadu (7),and West Bengal (1). These Parks wouldhave facilities for spinning, sizing,texturising, weaving, processing, apparelsetc. The estimated project cost (forcommon infrastructure and commonfacilities) is Rs. 4141.35 Crore, of whichGovernment of India assistance under thescheme would be Rs. 1422.43 Crore.2216 entrepreneurs will put up their unitsin these parks covering an area of 4334Acre. The projected investment in these

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parks is Rs. 19,459 Crore and estimatedannual production is Rs 33,587 Crore.After these parks are fully operationalthere would be employment available for8.19 lakh persons (3.15 lakh direct & 5.04indirect). So far assistance of Rs. 752.49Crore has been provided for execution ofthese projects. The promoters of thesetextiles park projects have brought inRs.1800 Crore (approx.) as theircontribution. First Textiles Park, viz.Palladam HiTech Weaving Park, Palladam,Tamil Nadu was inaugurated on19.04.2008. Pochampally Handloom Park,Andhra Pradesh was the second parkinaugurated on 16.11.2008.Komarapalayam HiTechweaving Park,Komarapalayam, Tamil Nadu wasinaugurated on 21.02.2009.In DodballapurIntegrated Textile Park, Banaglore,Karnataka, Rapier Weavers' training facilitywas inaugurated on February 28, 2009.Gujarat Eco Textile Park, Surat, Gujaratwas inaugurated on 09.09.2009.BrandixIndia Apparel City, Vishakhapatnam,Andhra Pradesh, and Pride IndiaCooperative Textile Park, Ichalkaranji,Maharashtra are also complete. Remainingprojects are likely to be completed in2010/11.

THE DECENTRALIZED POWERLOOMSECTOR

The decentralized Powerloom Sector playsa pivotal role in meeting the clothingneeds of the country. The powerloomindustry produces a wide variety of cloth,both grey as well as processed. Productionof cloth as well as generation ofemployment has been rapidly increasingin the powerloom sector. There are 22.38lakh powerloom in the country as on 31stDecember, 2009 distributed overapproximately 5.03 lakh units. This isabout 60.39% of the total looms in theworld. The powerloom sector contributesabout 62% of the total cloth production ofthe country, and provides employment toabout 55.95 lakh persons.

The estimated number of powerloom inthe decentralized sector in the country tillDecember 2009 were 22,38,036.

COTTON

Cotton is one of the principal crops of thecountry, plays a vital role in the Indianeconomy providing substantial employmentand making significant contributions toexport earnings. It engages around 6millions farmers, while another about 40-50 million people depend on activitiesrelating to cotton cultivation, cotton tradeand its processing for their livelihood. It isthe principal raw material for the domestictextile industry comprising 1608 spinningmills and 200 composite mills, with aninstalled capacity of 35.61 million spindles,4,48,000 Open End Rotors and 69,000looms in the organized sector plus another1219 small scale spinning units with 4.00million spindles and about 1,57,226 Rotorsin the small scale decentralized sector.Cotton has turned out to be an incrediblygood performer in the country's agriculturalsector. India ranks first in cotton-cultivatedarea and second in production among allcotton producing countries in the world,next to China and the USA.

India has brought about a qualitative andquantitative transformation in theproduction of cotton since herindependence. During the year 2008-09,the cotton production in the country wasestimated to be 290 lakh bales as againstthe production of 307 lakh bales duringthe previous year. India has the distinctionof having the largest area under cottoncultivation at around 9 million hectaresand constitutes around 25% of the totalworld.. However, in productivity (567kg.lint/ha), India is far behind manycountries (USA: 912 kg/ha, China: 1251kg/ha and World Average: 766 kg/ha).One of the major reasons for low yieldis that 65 % area under cotton is rainfed. The country's cotton output for thecotton season 2009-10 has been


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estimated at a record 295 bales (of 170kgs each). First time in 2007-08 cottonseason, cotton yield of about 567 kg/hectare which reduced to 524 in 2008-09 and 494 in 2009-10. With the furtherpossibility of higher use of Bt seeds/Hybrid seeds and a decline in the costof such seeds, it is projected that by theterminal year of XI Five year plan (2007-2012), the yield per hectare will increaseto 700 kgs and cotton production willreach the level of 390 lakh bales.

TECHNOLOGY MISSION ON COTTON

The Technology Mission on Cotton (TMC)was launched by the Government of Indiaon 21st February 2000 with the aim ofaddressing issues relating to the increasein productivity, improvement of qualityand reduction in the cost of productionand thus providing the much-neededcompetitive advantage to the textileindustry along with ensuring attractivereturns to the farmers.

The Scheme completed its tenure till 10thFive Year Plan i.e., up to 31st March2007. However, the Scheme MM III andIV of TMC has been further extended inthe 11th Five Year Plan for two years i.e.upto 31.3.2009 in terms of target andcompletion of the ongoing projects.

The Missions comprises of four MiniMissions, which are jointly beingimplemented by the Ministries ofAgriculture and Textiles. Research andDevelopment on Cotton and Disseminationof technology to farmers are beingundertaken by the Ministry of Agriculturethrough Mini Missions I and II respectively.Ministry of Textiles is the Nodal Agencyfor Mini Missions III & IV of TMC. MiniMission III relates to improvement inmarketing infrastructure and includes therevival of dormant market yards,improvement in existing market yards andsetting up of new market yards.

Progress of TMC (MM-III & IV)(September, 2008)

Under MM-III, development of 250 marketyards has been sanctioned and 221 havebeen completed. The total cost of thesanctioned project is Rs. 488.65 croresout of which the TMC share is Rs. 253.26crore.

Under MM-IV, Modernization of 993Ginning and Pressing Factories have beensanctioned and 885 have been completed.The Total cost of the sanctioned Projectsis Rs. 1427.44 crores out of which theTMC Share of Rs. 224.30 crore.

Fund allocated to TMC (MM-III & IV)during the year 2008-09 was Rs. 50 crore& during current year i.e. 2009-10 is Rs.50 crore.

THE JUTE AND JUTE TEXTILESINDUSTRY

The Jute Textiles Industry occupies animportant place in the national economy. Itis one of the major industries in the easternregion, particularly in West Bengal. Itsupports nearly 4 million farm families,besides providing direct employment toabout 2.6 lakh industrial workers andlivelihood to another 1.4 lakh persons inthe tertiary sector and allied activities. Theproduction process in the Jute Industrygoes through a variety of activities, whichinclude cultivation of raw jute, processingof jute fibres, spinning, weaving, bleaching,dyeing, finishing and marketing of both, theraw jute and its finished products. The JuteIndustry is labour intensive and as such itslabour-output ratio is also high in spite ofvarious difficulties being faced by theindustry. Capacity utilization of the industryis around 75 per cent. These apart, the juteindustry contributes to the export earningsin the range of Rs. 1,000 to Rs.1,200 croreannually. The estimated raw juteproductions during the jute year 2009-10(July-June) is estimated to be between 85-90 lakh bales (1 bale = 180 kg.).

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There are 78 composite jute mills in India,of which 61 jute mills are located in WestBengal, 3 each in Bihar and U.P., 7 inAndhra Pradesh and 1 each in Assam,Orissa, Tripura and Chattisgarh.Ownership- wise division is: 6 mills areunder Government of India, 1 mill (Tripura)is under State Government, 2 mills (Assam& New Central) are in the co-operativesector, and 69 are in private sector.

EXPORT AND IMPORT OF JUTEGOODS

The exports of jute goods, including floorcoverings, diversified jute products, juteyarns hessian was US$ 299.13 million(Rs. 1,375.80 crore) during financial year2008-09. The jute exports have shown agrow of 4% in rupee terms on year to yearbasis. The exports during financial year2007-08 were US$ 327.86 million (Rs.1,319 crore). The export of Jute goodsduring 2009-10 (April/September) wereUS$ 110.04 million (Rs. 534.61 crore).

THE SERICULTURE AND SILKTEXTILES INDUSTRY

India continues to be the second largestproducer of silk in the World. Among thefour varieties of silk produced, as in 2008-09, Mulberry accounts for 85% (15610MT), Eri 11.1%(2038 MT), Tasar 3.3%(603MT) and Muga 0.6% (119 MT) of the totalraw silk production in the country.

Sericulture is an important labour-intensiveand agro-based cottage industry, providinggainful occupation to around 6.3 millionpersons in rural and semi-urban areas inIndia. Of these, a sizeable number ofworkers belong to the economically weakersections of the society. There is substantialinvolvement of women in this Industry.

THE WOOL AND WOOLEN TEXTILESINDUSTRY

The Wool and Woollen Textiles Industry

is a rural based, export oriented industryin which the organized sector, thedecentralized sector, and the rural sectorcomplement each other. The country isthe seventh largest producer of wool andcontributes 1.8% to total world production.Since the domestic produce is notadequate, the industry is dependent onimported raw material. Wool is the onlynatural fibre in which the country isdeficient. A small quantity of specialtyfibre is obtained from Pashmina goatsand Angora rabbits. Of the total productionof raw wool, 5% is apparel grade, 85%carpet grade, and 10% coarse grade.Rajasthan (44 percent), Jammu &Kashmir(13 percent), Karnataka (12percent) alongwith Gujarat, Uttar Pradesh,Andhra Pradesh, Haryana (23 percent)are the major wool producing states in thecountry. The world average for woolproductivity is about 3.5 kg/ sheep/year,while in India the average is 0.8 kg/sheep/year.

There are 718 woollen units in theorganized sector, and a large number ofunits in the small scale sector. Ludhianaalone accounts for 225-240 units in thedecentralized hosiery and shawl sector.The installed capacity of the industry isabout 6.04 lakh worsted spindles, and4.37 lakh non-worsted spindles. Woolcombing capacity is around 30 million kg.,whereas, the synthetic fibre combingcapacity is 3.57 million kg. There areapproximately 7,228 powerlooms in thisindustry.

A small quantity of specialty fibre isobtained from Pashmina goats and Angorarabbits. There are 958 woolen units in thecountry, the majority of which are in thesmall scale sector. During the XIth FiveYear Plan period (2007-12), theGovernment is implementing the followingSchemes for the holistic growth anddevelopment of Wool Sector: (i) IntegratedWool Improvement & DevelopmentProgramme (IWIDP), (ii) Quality


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Processing of Wool and (iii) Social SecurityScheme. The Schemes are beingadministered in the major wool producingStates by the Central Wool DevelopmentBoard (CWDB), Jodhpur, throughrespective State GovernmentOrganizations / NGOs, Societies,Cooperatives, etc.

HANDLOOMS

Handloom constitutes a timeless facet ofthe rich cultural heritage of India. As aneconomic activity and in terms ofemployment generation, the handloomsector occupies a place second only toagriculture. This sector is, however, isconfronted with various problems, suchas, obsolete technology, unorganizedproduction system, low productivity,inadequate working capital, conventionalproduct range, weak marketing linksleading to accumulation of stocks atvarious levels etc. The Government ofIndia has, therefore, been initiating variousdevelopmental and welfare measures tohelp the handloom sector to tide overthese problems to a great extent.

PRODUCTION IN THE HANDLOOMSECTOR INCREASED

Resultant to the developmental and welfaremeasures initiated by the Government ofIndia, the declining trend in production inthe handloom sector had been arrestedand from the year 2004-05 there in facthas been a considerable growth inproduction in the sector. Production in thehandloom sector recorded a figure of6677 million sq. meters in the year 2008-09, which is about 21.55% over theproduction figure of 5493 million sqr.meters recorded in the year 2003-04.

403 HANDLOOM CLUSTERS TAKENUP FOR DEVELOPMENT

The Integrated Handlooms DevelopmentScheme (IHDS) has been launched with a

view to develop holistically andcomprehensively the weavers' clustersthroughout the country. Under this scheme,403 Handloom clusters have been takenup upto 04.12.2009 and financial assistanceof Rs 61.69 crore has been released tovarious implementing agencies for variouscomponents like skill upgradation,awareness programme, formation ofconsortium, corpus fund for yarn, purchaseof CATD, basic inputs etc.

ENROLLMENT UNDER HEALTHISURANCE SCHEME

The Health Insurance Scheme provideshealth care facilities to the handloomweavers and their families includingspouse and two children of the weaverscovered. 18.78 lakh weavers were coveredunder the scheme during 2008-09 whichwould extend benefit to more than 50 lakhpersons. During 2009-10, 2.11 lakhweavers have been covered upto October,2009 under the scheme.

ENROLLMENT UNDER MAHATMAGANDHI BUNKAR BIMA YOJANA

The enrollment under MGBBY increasedto 5.75 lakh weavers in 2008-09 ascompared to 4.66 lakh weavers in 2007-08. The enrollment during 2009-10 is 1.21lakh weavers upto October, 2009.

SUPPLY OF YARN UNDER THE MILLGATE PRICE SCHEME

610 yarn depots, covering all the handloomclusters, have been set up by the NationalHandloom Development Corporation(NHDC) to ensure steady and timelysupply of requisite yarn at Mill Gate Priceto the handloom weavers. Supply of yarnby the NHDC under the Mill Gate PriceScheme registered a figure of 855.11 lakhkgs. valued at Rs.793.77 core in the year2008-09 as compared to the figure of678.21 lakh kgs valuing Rs.536.05 core inthe year 2007-08.

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RELEASE OF POSTAGE STAMPS

H.E. Smt. Pratibha Devisingh Patil, thePresident of India, has released 4 postagestamps of Rs.5/- each on Banarasi silk,Kanchipuram sarees, Kalamkari and ApaTani weaves on 10th Dec.2009 atRashtrapati Bhawan. The Union Ministerof Textiles Shri Dayanidhi Maran, UnionMinister of Communication and InformationTechnology Shri A.Raja, Minister of Statefor Textiles Smt. Panabaaka Lakshmi,Minister of State for Social Justice andEmpowerment Shri D Napoleon and otherdignitaries were present. This is for thefirst time, stamps on Indian textiles wereissued in order to popularize the uniquetextiles both in India and abroad.

HANDLOOM WEEK

Handlooms constitute a living heritage ofour country reflecting the ethos of the artand craft traditions of our country whichgives employment to about 65 lakh people.It is the only environmental friendly fabricrequires continuous promotion, adoptionand protection. "Handloom Week" wascelebrated for the first time in the countryfrom 21st December to 27th December,2009. During the Handloom Week, anumber of promotional and awarenessprogrammes, organization of domesticmarketing through handloom expos,fashion shows celebrating the output andpotential of the cluster development,publicity through newspapers, magazines,outdoor publicity, through electronic mediashall be undertaken substantially.

INCREASE IN THE NUMBER OFMARKETING EVENTS

The target of marketing events has beenincreased to 500 from 300 during the year2009-10 in order to give adequateopportunity for the weaves to market theirproducts directly to the consumers withoutthe intervention of the middlemen. So far,462 marketing events have beensanctioned.

SANT KABIR AWARD

This award will be conferred on suchoutstanding weavers who have madevaluable contribution in keeping alive thehandloom heritage and also for theirdedication in building up linkages betweenthe past, present and the future throughdissemination of knowledge on traditionalskills and designs. SANT KABIR AWARDfor handloom weavers will be conferredevery year, beginning from the year 2009.

Each award will consist of one mountedgold coin, one shawl and a citation. Inaddition, financial assistance to the extentof Rs. 6.00 lakh will also be given to eachof the Sant Kabir Awardee to innovateand create 10 new products of high levelof excellence, of high aesthetic value andof high quality.

BRAND BUILDING THROUGHHANDLOOM MARK

The emphasis has been laid on BrandDevelopment through Handloom Markduring the XI Five Year Plan. TheHandloom Mark was launched by theHon'ble Prime Minister of India on 28thJune, 2006. The purpose of HandloomMark is to serve as a guarantee to thebuyer the handloom product beingpurchased is a genuine handwovenproduct and not a powerloom or millmade product. Also, in the new ForeignTrade Policy, incentives to handloomproducts bearing Handloom Mark havebeen provided. Handloom Mark is beingpromoted and popularized throughadvertisements in newspapers andmagazines, electronic media, syndicatedarticles, fashion shows, films etc.

The Textiles Committee is theImplementing agency for promotion ofHandloom Mark. As on 30th Nov. 2009,138.33 lakh handloom mark labels havebeen sold to 5930 stakeholders. 725retails outlets are selling handloom goodswith handloom mark label.


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The new beneficiaries now included in theHandloom Mark scheme to get the benefitsare Self Help Groups, Joint LiabilityGroups, Consortia, Producer companies,Handloom Weavers Groups or any otherlegal entity, organization involved inHandloom activities and approved byDevelopment Commissioner forHandlooms with a one time registrationfee of Rs.500.

Sale price of one label brought down fromRs. 1.25 at the time of launch to 60 paisein January, 2007. Application form aremade available free of cost. Theregistration fee for individual weavers isreduced to Rs.25 from Rs.100 and forMaster weavers to Rs.500 from Rs.2000.

PROGRESS OF HANDLOOM CENSUS

The National Council of Applied EconomicResearch (NCAER), New Delhi has beenentrusted the work of conducting the thirdHandloom Census and Issue of PhotoIdentity Cards to all the eligible weaversand allied workers. Census work in 12states has already been completed and inrest of the States is in progress. Againstthe revised estimated size of 25.50 lakhshandloom weavers household, 23.19 lakhhouseholds have already been canvassedtill 14.12.09. The Census work is likely tobe completed by the mid of the year2010.

HANDICRAFTS

The Handicrafts Sector plays a significant& important role in the country's economy.It provides employment to a vast segmentof craftpersons in rural & semi urbanareas and generates substantial foreignexchange for the country, while preservingits cultural heritage. Handicrafts havegreat potential, as they hold the key forsustaining not only the existing set ofmillions of artisans spread over lengthand breadth of the country, but also forthe increasingly large number of new

entrants in the crafts activity. Presently,handicrafts contribute substantially toemployment generation and exports. TheHandicraft sector has, however, suffereddue to its being unorganized, with theadditional constraints of lack of education,low capital, poor exposure to newtechnologies, absence of marketintelligence, and a poor institutionalframework. In spite of these constraints,sector has witnessed a significant growthof 3% annually, and efforts are beingaugmented during the 11th Five Yearplan on the core issues for thedevelopment of the sector.

● Providing Infrastructural support forproduction & Exports

● Improve quality & productdiversification with more awarenessfor both stakeholders & consumer.

● A greater role for NGO asimplementing partners andparticipation of private resources -both human and financial.

In view of the 3% growth annually inHandicrafts sector, it is presumed that thetotal employment in the sector as at theend of 10th plan is 67.70 lakhs, which atthe beginning of the 10th plan was 60.16lakhs, showing an annual growth rate ofabout 3%, on the basis of this growth inthe sector it is expected this employmentto reach 80 lakhs by the end of 11th Plan.

The plan expenditure during the periodalso witnessed a steady growth increasingfrom Rs.71.65 crores in 2002-03 toRs.220.00 crores in 2009-10. Theproduction during the period 2002-03 hasdecreased from Rs.19,564.52 crores toRs.19.375.88 crores during the year 2008-09 although in the intervening period ithad shown a rise in the graph of productionin view of increase in exports whichstarted decreasing from the year 2006-07due to rupee appreciation against US $ &recession in World Economy. The exports

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during the period decreased fromRs.12434.38 crores in the year 2002-03to Rs.10,891.85 crores at the end of theyear 2008-09 registering a cumulativedecline 12.40%, The budget outlay for theyear 2010-11 has been proposed for Rs.285 crores.

Handicrafts activity being a State subject,its development and promotion are theprimary responsibility of every StateGovernment. However, the CentralGovernment is supplementing their effortsby implementing various developmentalschemes.

SARDAR VALLABHBHAI PATELINSTITUTE OF TEXTILE MANAGEMENT,COIMBATORE

Sardar Vallabhbhai Patel Institute of TextileManagement was set up on December24, 2002 as a national level Institute forTextile Management at Coimbatore, TamilNadu to prepare the Indian Textile Industryto face the challenges of the Post-MFAera and enable it to establish itself as aleader in the global textiles trade.

NATIONAL TEXTILE CORPORATIONLIMITED

The National Textile Corporation Limited(NTC) was incorporated in April, 1968 tomanage the affairs of the private sectorsick textile mills, which were taken overby the Government under the threeNationalization Acts (first the Sick TextileUndertakings (Nationalization) Act, 1974,thereafter the Swadeshi Cotton MillsCompany Limited (Acquisition and Transferof Undertakings) Act, 1986 and then theTextile Undertakings (Nationalization) Act,1995)

It was also proposed to rehabilitate andmodernize these mills after the take overand expand them wherever necessarywith a view to make them economicallyviable. NTC(H C) Ltd., the Holding

Company, having its registered office atNew Delhi, was managing its mills through9 Subsidiary Corporations, having 119mills initially.

Initially NTC Ltd. had an Authorised capitalof Rs.10.00 crores which is now Rs.5000crores as on 31 March, 2009 with the paidup capital of Rs.3062.16 crores.

REHABILITATION OF NTC

Eight out of nine Subsidiaries of NTCwere referred to BIFR under the provisionsof the Sick Industrial Companies Act(Special Provisions) during 1992-94 onaccount of continuous loss. The BIFRapproved the Rehabilitation Scheme forthese Subsidiaries in February/July 2002and the 9th Subsidiary was also referredto BIFR in October, 2002. The BIFRsanctioned Revival Scheme for all the 9Subsidiaries allowed the Company toclose down all unviable mills and to revivethe viable units. The Company has so farclosed 77 unviable mills and is in theprocess of reviving 24 mills directly byNTC. Revival of 5 mills through jointventure route with strategic partners hasbeen finalised. Joint venture for remaining11 mills is under consideration. The originalRehabilitation Scheme approved by BIFRand modified in September 2006 wasrevised in 2008 on the basis of thedevelopments that had taken place in thetextile sector. All the 9 Subsidiaries weremerged with the Holding Company andNTC is today a single Company asagainst 10 companies in the past.

NATIONAL INSTITUTE OF FASHIONTECHNOLOGY (NIFT)

The National Institute of FashionTechnology was set up in 1986 is anautonomous Society in collaboration withthe Fashion Technology (FIT), New York,to train professionals to meet therequirements of the textiles industry. TheInstitute has pioneered the evolution of


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fashion business education across thecountry through its network of sevencentres at New Delhi, Bangalore, Chennai,Gandhinagar, Hyderabad, Kolkata andMumbai. A Centre at Rae Bareli has beenadded from academic year 2007-08 andfour Centres at Patna, Bhopal, Shillongand Kannur have been added fromacademic year 2008-09. New NIFT Centreat Kangra has been inaugurated on 21/1/2009. NIFT, besides conducting regularprofessional undergraduate andpostgraduate programmes in Design,Management and Technology, also offersshort duration part-time courses under itsContinuing Education (CE) Programme.

It is proposed to start 3 new centres atBhubaneswer, Jodhpur and Mohali fromthe Academic Year 2010-2011.

The National Institute of FashionTechnology Act, 2006 came into force onJuly 14, 2006 and comes into effect from1st April, 2007. The Act provides statutorystatus to the Institute and formallyrecognizes its leadership in fashiontechnology sector, and empowers NIFT toaward degrees to its students. NIFT is thefirst institute in the world to award degreesin fashion education.

STATUTORY STATUS

NIFT Act 2006 has accorded statutorystatus for the promotion and developmentof Education & Research in FashionTechnology with the President of India asthe Visitor. The Act signifies publicconfidence in NIFT as a thought leader,with 'fashion' (defined in a much widercontext) as a business strategy for valueaddition.

NIFT is supported by the Ministry ofTextiles and governed by the Board ofGovernors (BOG) and its Chairpersonnominated under NIFT Act, 2006. TheDirector General is the Chief ExecutiveOfficer of the Institute with Head Officeand a network of twelve Centres.

Thought leadership in fashiontechnology education

NIFT has been instrumental in bringingabout a paradigm shift in the perceptionof 'fashion' in India, with its connotationextending beyond the conventional apparelindustry, to integrate with every aspect ofthe lifestyle industry. Fashion todayencompasses popular trend or a lifestyle,specially in styles of dress and ornamentor manners of behaviour or the businessof creating, promoting or studying stylesin vogue or the designing, production andmarketing of new styles of goods such as,clothing, accessories, craft and cosmetics,thus adding tremendous value to diverseindustry and businesses.

NIFT have pioneered major changes inthe industry in strategy, approach,technology upgradation, designintervention and management practices,in the face of liberalization andglobalization of the economy.

ACTIVITIES RELATED TOPROGRESSIVE USE OF OFFICIALLANGUAGE

Hindi is the Official Language of the Unionof India and policy of the Governmentaims at progressively use of Hindi inofficial work. Effective steps have beentaken during the year in the M/o Textilesto ensure the compliance with the OfficialLanguage Policy of the Government;implementation of the annual programmeand compliance with the various orders ofthe Government of India on therecommendations of the Committee ofParliament on Official Language.

Compliance with the provisions of theOfficial Language Act, 1963

All documents such as resolutions, generalorders, rules, licences, etc., under section3(3) of the Official Language Act and allpapers laid on the Table of both the

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Houses of Parliament were issuedbilingually, i.e. in Hindi and English.General orders meant for departmentaluse were issued in Hindi only.

Replies to letters in Hindi

All letters received in Hindi were repliedto in Hindi.

Sections specified for working in Hindi

12 sections of the Ministry, specified fordoing hundred per cent work in Hindi, areworking satisfactorily.

Monitoring and inspections

In order to ensure compliance with theOfficial Language Policy, monitoring isdone through reviewing the quarterlyprogress reports. During the year, Sectionsof the Ministry and attached organizationswere inspected to ensure progressive useof Hindi and compliance with the OfficialLanguage policies.

Training of Officials

Many officials of the Ministry have alreadybeen trained in Hindi typing and Hindistenography.

Use of Mechanical aids

As per the provisions of the OfficialLanguage Act, bilingual mechanicalfacilities have been provided onmechanical equipments in the Ministry.

Committees

The Departmental Official LanguageImplementation Committee under theChairmanship of the Joint Secretary (In-Charge Hindi) in the M/o Textiles hasbeen constituted. Quarterly meetings ofthe Committee were organized andimportant decisions for progressive use ofHindi in official work have been taken.Effective steps for ensuring compliancewith these decisions and follow-up action,have also been taken.

Hindi Fortnight

Hindi Fortnight was celebrated from 1stSeptember, 2009 to 14th September, 2009in the Ministry. To encourage and motivatethe employees for doing official work inHindi, various competitions like Hindi essay,Hindi Noting & Drafting, Hindi Questionand Answer, Story Writing, Hindi Debate,Hindi Poetry Recitation, Dictation, HindiTyping competitions were organized. Alarge number of officers and employeesparticipated in these events withenthusiasm. At the Valedictory Session,certificates and cash awards were given tothe winners of the competitions bySecretary (Textiles). A compilation of prizewinning entries was also published. On theoccasion of Hindi Diwas appeal of theHon'ble Home Minister, Minister of Textilesand Secretary (Textiles) were circulated inthe M/o Textiles as well as in its Attached/ Subordinate offices and PSUs forinformation and compliance.


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CHAPTER II

FUNCTIONS &ORGANISATIONAL SET-UP


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The Ministry of Textiles is responsiblefor policy formulation, planning,development, export promotion and

trade regulation of the Textiles Industry.This includes all natural and manmadecellulosic fibres that go into the making oftextiles, clothing, and handicrafts. Thematters relating to non-cellulosic syntheticfibres and filament yarns, such as nylon,polyster acrylic, and poly-propylene areunder the administrative control of Ministryof Chemicals and Petrochemicals.TheMinistry maintains an interactive website:www.texmin.nic.in.

The Ministry is headed by a Secretary,who is assisted in the discharge of herduties by four Joint Secretaries, anEconomic Advisor, and the DevelopmentCommissioners for Handlooms andHandicrafts, the Textiles Commissionerand the Jute Commissioner.

VISION

To build state of the art productioncapacities and achieve a pre-eminentglobal standing in manufacture and exportof all types of textiles including technicaltextiles, jute, silk and wool and develop avibrant handloom and handicraft sectorfor sustainable economic developmentand promoting and preserving the age oldcultural heritage in these sectors.

MISSION

● To promote planned and harmoniousgrowth of textiles by making availableadequate fibres to all sectors.

● To promote technological up-gradation for all types of textiles

CHAPTER II

FUNCTIONS & ORGANISATIONAL SET-UP

including technical textiles, jute, silkand wool.

● To promote skills of all textile workers,handloom weavers and handicraftsartisans, creation of new employmentopportunities and development of newdesigns to make these sectorseconomically sustainable.

● To ensure proper workingenvironment and easy access tohealth care facilities and insurancecover to weavers and artisans toachieve better quality of life.

● To promote exports of all types oftextiles and handicrafts and increaseIndia's share of world exports inthese sectors.

OBJECTIVES

● To make available adequate rawmaterial to all sectors of TextilesIndustry.

● To augment the production of fabricsat reasonable prices from theorganised and decentralised sectors.

● To lay down guidelines for a plannedand harmonious growth of varioussectors with special emphasis on thedevelopment of the handlooms sectordue to its large employment potential.

● To monitor the the techno-economicstatus of the industry and to providethe requisite policy framework formoderisation and rehabilitation.

FUNCTIONAL AREAS

● The Textiles Policy & Coordination


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● The Man-made Fibre/Filament YarnIndustry

● The Cotton Textiles Industry

● The Jute Industry

● The Sericulture and Silk Textiles,Industry

● The Wool & Woollen Textiles Industry

● The Decentralized PowerloomsSector

● The Export Promotion

● Handicrafts

● Handlooms

● The Planning & Economic Analysis

● The Integrated Finance Matters

● The Information Technology.

1. ATTACHED OFFICES

(i) The Office of the DevelopmentCommissioner for Handlooms,New Delhi

The Office is headed by theDevelopment Commissioner forHandlooms. It administers variousschemes for the promotion anddevelopment of the handlooms sectorand supplements to the efforts ofState Goverments, Societies, NGOs,etc. Its subordinate organisationsinclude Weavers' Services Centres(WSCs), the Indian Institues ofHandloom Technology (IIHT) and theEnforcement Machinery for theimplementation of the Handlooms(Reservation of Articles forProduction) Act, 1985.

(ii) Office of the DevelopmentCommissioner for Handicrafts,New Delhi

The office is headed by theDevelopment Commissioner for

Handicrafts. It administers variousschemes and functions to promotethe development and export ofhandicrafts, and supplements theefforts of State Governments byimplementing various developmentalschemes. It has six regional officesat Mumbai, Kolkata, Lucknow,Chennai, Guwahati, and New Delhi.

2. SUBORDINATE OFFICES

(i) Office of the TextilesCommissioner, Mumbai

The office of the TextilesCommissioner (TXC) has itsheadquarters at Mumbai and eightregional offices at Amritsar, Noida,Kanpur, Kolkata, Bengluru,Coimbatore, Navi Mumbai andAhmedabad. The TextilesCommissioner acts as the principaltechnical advisor to the Ministry.The Office of Textiles Commissionercarries out techno-economic surveysand advises the Government on thegeneral economic health of thetextiles industry. The developmentalactivities of the Office of the TextilesCommissioner centre aroundplanning for the growth anddevelopment of the textiles sector.Of the forty four Powerloom ServiceCentres (PSCs) functioningthroughtout the country, fourteen arefunctioning under the administrativecontrol of the Textiles Commissioner.The office of TXC also coordinatesand provides guidance to theremaining thirty Powerloom ServiceCentres, being run by the variousTextiles Research Associations andState Government Agencies. TheOffice also implements and monitorsvarious developmental andpromotional schemes like theTechnology Upgradation FundScheme (TUFS) for themodernization of the Textiles and

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Jute industry, the Textiles WorkersRehabilitation Fund Scheme(TWRFS), and the TechnologyMission on Cotton (TMC), etc.

(ii) Office of the Jute Commissioner,Kolkata

This office is headed by the JuteCommissioner and is entrusted withthe responsibility of implementingthe policies of the Government in theJute sector. The Jute Commissioneracts as the principal technical adviserto the Government of India, andgives technical advice to the Ministryon matters relating to the juteindustry, including the jute machineryindustry.

3. ADVISORY BOARDS

(i) All India Handicrafts Board

The All India Handicrafts Board is anadvisory body under the chairmanshipof the Minister of Textiles, with theDevelopment Commissioner(Handicrafts) as the MemberSecretary. It gives its advice to theGovernment on matters pertaining tothe development of the Handicraftssector. The Board has been dissolvedon 24th November 2009. Theconstitution of new Board isunderway.

(ii) All India Powerlooms Board

The All India Powerlooms Board isan advisory body under thechairmanship of the Minister ofTextiles, with the TextilesCommissioner as the Member-Secretary. It has representatives ofthe Central and State Governments,and powerlooms federations/associations as its members. Thefunctions of the Board includeadvising the Government on matters

concerning growth and developmentof the decentralized powerloomssector.

(iii) All India Handlooms Board

The Board is an advisory body underthe chairmanship of Minister ofTextiles, with the DevelopmentCommissioner (Handlooms) as theMember-Secretary. The main functionis to advise the Government onvarious aspects of development ofthe handlooms sector.

(iv) The Cotton Advisory Board

The Cotton Advisory Board is headedby the Textiles Commissioner and isa representative body of variousinterest groups like Governmentagencies, Cotton Growers, TextilesIndustry, and Trade. It advises theGovernment, generally, on matterspertaining to the production,consumption, and marketing of cotton,and also provides a forum for liaisonamong various stakeholders. TheBoard was reconstituted on June 25,2008, for period of two years. Atpresent the Board has fifty-fivemembers, including officials and non-official members.

(v) Jute Advisory Board

The Jute Advisory Board headed bythe Jute Commissioner advises theGovernment on matters pertaining tojute falling within the purview of Juteand Jute Textiles Control Order 2002,including production estimates of juteand mesta. New Board is beingreconstituted.

(vi) Coordination Council of TRAs

The Coordination Council for theTextiles Research Associations hasbeen constituted under the


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chairmanship of Secretary (Textiles)to coordinate the activities of all theTextiles Research Associations(TRAs), with a view to promotelinkages for the development of thetextiles industry and for achievementof national priorities. The functions ofthe Councils are to assess the on-going programmes of researchassociations, identify programmesand priorities keeping in view theoverall needs of the industry,including the decentralized sector. Itensures appropriate coordinationamongst different researchassociations, conduct periodicalevaluation of the work carried out incooperative research, and considerssystemizing research programmesand funding arrangements so thatfunding is in conformity with planpriorities, and all other mattersconnected with the effectivefunctioning of these ResearchAssociations.

4. REGISTERED SOCIETIES

(i) Central Wool Development Board(CWDB), Jodhpur

The Central Wool DevelopmentBoard (CWDB), Jodhpur wasconstituted by the Government ofIndia, Ministry of Textiles in 1987under the Rajasthan SocietiesRegistration Act, 1958 to promotethe growth and overall developmentof wool and the woolen textilesindustry in the country. The Boardadministers various projects andprogrammes through the StateGovernments and Non GovernmentOrganisations (NGOs). The Boardwas reconstituted on September 6,2008, for a period of two years. ShriSagar Rayka, a non-official member,is the present Chairman of theCentral Wool Development Board.

(ii) Sardar Vallabhbhai Patel Instituteof Textiles Management (SVPITM),Coimbatore

SVPITM was set-up on December24, 2002, as a premier National levelInstitute for Textiles Management atCoimbatore, Tamil Nadu, to preparethe Indian Textiles Industry to facethe challenges of post-MFA era andestablish it as a leader in the globaltextiles trade. The sixteen membersBoard of the Institute wasreconstituted on March 13, 2006, fora period of three years. New Boardis being reconstituted.

(iii) National Centre for JuteDiversification (NCJD), Kolkata

The National Centre for JuteDiversification (NCJD) was registeredin January 1992 under the SocietiesRegistration Act, 1860, and wasestablished in June 1994, under theChairmanship of Secretary (Textiles)to give focused attention to thediversification efforts in the jute sector.The NCJD is required to consolidateR&D results of various institutes inthe jute and textiles sectors andtransmit these to entrepreneurs todevelop commercial products. Itcoordinates with various agenciesand helps entrepreneurs in arrangingtechnical, financial, and infrastructuralsupport to encourage them to takeup the production and marketing ofjute-diversified products (JDP). TheCouncil is to be merged in theproposed National Jute Board.

5. STATUTORY BODIES

(i) National Jute Board

The National Jute Board is a newbody under Ministry of Textiles, whichwill be the apex organisation for

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coordinating and synergising thefunctions of all the Organisations andbe a centre point for all jute relatedactivities. The National Jute Boardwill also be responsible forimplementation of the JuteTechnology Mission in a centralisedand coordinated manner and willhelp in speedily resolving the ills ofJute Industry in the matters ofdiversification and marketing of JuteProducts as well as modernisation ofJute Mills.

The National Jute Board Bill 2006has been passed by both the Housesof the Parliament in December 2008.Subsequently, the Bill received theassent of the President on 12.2.2009and has been published as NationalJute Board Act, 2008 (No. 12 of2009).

National Jute Board, will have amembership of 34 persons, of which15 will be Governmentrepresentatives from CentralGovernment and State Governmentshaving stake in production andpromotion of Jute Products and 19Members from private jute relatedsector i.e. jute farmers, growers,research association, small andmedium enterprises as well as threeMembers of Parliament. TheHeadquarters of the National JuteBoard will be in Kolkatta, with regionalrepresentations in Jute growing areasand in other areas for marketing ofthe Jute Products.

The National Jute Board shall beconstituted and shall come inoperation in 2010-11.

(ii) Jute Manufactures DevelopmentCouncil (JMDC), Kolkata

The Jute Manufactures DevelopmentCouncil was constituted as a statutory

body under the chairmanship ofSecretary (Textiles), with effect fromMay 1, 1984, with the objective toincrease efficiency and productivityin the jute industry. JMDC has beendelegated all functions relating toexport promotion in the jute sectorand to perform other such activitiesrelating to the domestic marketing ofJute Sector as are performed by aCommodity Board. The activities ofthe Council are funded from grantsmade available by the CentralGovernment from the proceeds ofcess on the production of jute, leviedunder the Jute Manufactures Cess(Amendment) Act, 2002. The Councilis being merged with the proposedNational Jute Board.

(iii) The Central Silk Board (CSB),Bangalore

The Central Silk Board is a statutorybody, and it was constituted by anAct of Parliament (LXI of 1948), withthe objective of promoting the growthand development of Sericulture inthe country. These programmes areprimarily formulated and implementedby the State Sericulture/TextilesDepartments. However, the CentralSilk Board supplements the efforts ofthe States by providing necessarysupport for research anddevelopment, and extension andtraining through its countrywidenetwork of centres. Besides, theCentral Silk Board organises theproduction and supply of qualitysilkworm seeds, Mulberry cuttings,etc., and also implements variousSericulture projects directly, as wellas, jointly with the State SericultureDepartments.

(iv) Textiles Committee, Mumbai

The Textiles Committee wasestablished on July, 1964 under the


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Textiles Committee Act, 1963, withthe objective of ensuring the qualityof textiles from both the internaland export markets. Its functionsinclude the promotion of textiles,textiles exports, research in technicaland economic fields, establishingstandards for textiles and textilesmachinery, setting up of laboratories,and data collection locatedthroughout the country. The TextilesCommittee, in addition to itsheadquarters at Mumbai, has thirtyOffices to assist the industry andtrade in testing their products. TheCommittee has the followingfunctional divisions at itsHeadquarters in Mumbai : (1) TextilesInspectorate Wing (2) TextilesLaboratory Wing (3) Market ResearchWing (4) ISO Wing (5) Vigilance Cell(6) Accounts Wing, and (7)Administration and CoordinationWing. The Committee has beenreconstituted on October 14, 2009,for a period of two years. It consistsof twenty five members, includingofficial and non-official members.

(v) Commissioner of Payments (COP),New Delhi

The Office of Commissioner ofPayments with its headquarters atDelhi, is a statutory authority, set upunder Section 17(1) of the SickTextiles Undertakings(Nationalisation) Act, 1974, Section15(1) of the Swadeshi Cotton MillsCompany Ltd. (Acquisition andTransfer of Undertakings) Act, 1986,and also under Section 17(1) of theTextiles Undertakings(Nationalisation) Act, 1995. TheCommissioner of Payments disbursesthe amount placed at his disposal tothe owners of each textilesundertaking nationalized by theaforesaid three Acts.

(vi) The National Institute of FashionTechnology (NIFT), New Delhi

The National Institute of FashionTechnology was set up in 1986 asan autonomous Society incollaboration with the Fashion Instituteof Technology (FIT), New York, toprepare and train professionals tomeet the requirements of the textilesindustry. The Government broughtinto force the National Institute ofFashion Technology Act, 2006 onJuly 14, 2006. This Act providesstatutory status to the Institute, andformally recognizes its leadership inthe fashion technology sector. TheAct empowers NIFT to award degreesto its students from 2007 onwards.The President of India is the Visitorof the Institute. The Institute haspioneered the evolution of the fashionbusiness education across thecountry through centres at New Delhi,Bangalore, Chennai, Gandhinagar,Hyderabad, Kolkata, Mumbai,Kannur, Patna, Shillong, Kangra,Bhopal and Rae Bareli.

6. THE RIGHT TO INFORMATIONACT, 2005

To promote openness, transparency andaccountability in administration and providethe right to every citizen to secure accessto information under the control of PublicAuthorities, the Right to Information Acthas come into effect for implementationw.e.f. October 12, 2005. The Act marksthe beginning of a new era in theapproach of the Government whereopenness shall now be the rule andsecrecy an exception.

Every Citizen can obtain the informationthey desire by submission of an applicationand by paying a nominal charge as anapplication fee, to the Central PublicInformation Officer designated by the

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public authority for the purpose under theAct. This Ministry has designated officersas Central Public Information Officers(CPIOs) / Alternate CPIOs and AppellateAuthorities.

The Ministry of Textiles, as well as, itsAttached & Subordinate Offices,Autonomous & Statutory Bodies and PublicSector Undertakings have completed theaction for setting up of the necessaryinfrastructure for implementation of theAct. Ministry monitors the implementationof the Act by the organizations under theMinistry of Textiles.

7. PUBLIC GRIEVANCE REDRESSALMACHINERY IN THE MINISTRY

As part of implementation of point twenty(responsive administration) of the TwentyPoint Programme, the Department ofAdministrative Reforms and PublicGrievances issues instructions andguidelines to establish, activate, andstrengthen the Public GrievancesRedressal Machinery (PGRM) in theMinistries, Departments, and otherOrganisations of the Government of India.In pursuance of these instructions/guidelines, the Public/Staff GrievancesRedressal Machinery monitors theredressal of public grievances. Similararrangements are also being made ineach of the attached/subordinate officesof the Ministry of Textiles. A GrievanceCommittee under the Chairmanship of aJoint Secretary has been formed to monitorthe functioning of PGRM in the Ministry,as well as in attached and subordinateorganizations. If need be, the files relating

to pending grievances are called for andcases are settled by the Committee in itsmeetings.

The Ministry have taken, the followingsteps to strengthen the PGRM:

● Time Norms for the disposal ofgrievance cases have been fixed,and the same have been circulatedand displayed at prominent places ofthe building:

✓ Acknowledgement of thecomplainant within seven days;

✓ Final disposal within two months.

● Publicity about the PGRM in themedia.

● The Citizens' Charter has beenformulated and hosted on theWebsite.

● Details about the PGRM have alsobeen placed on the Website of theMinistry (texmin.nic.in).

● An Information & Facilitation Counterhas been established at Gate No.1Udyog Bhawan, New Delhi, to makeinformation readily available tocustomers/consumers.

● A complaint box has been kept at theInformation & Facilitation Counter.

The list of Officers handling Public/StaffGrievances in the Ministry of Textiles andits Attached/Subordinate Offices is attable 2.1.

The list of organisations under the Ministryof Textiles is at Table 2.2.


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Table 2.1

List of Officers handling public/staff grievances in the Ministry of Textiles and itsAttached/Subordinate Offices

S.No. Offices Public/Staff Grievances Officer

1. Ministry of Textiles Shri S.S. GuptaJoint Secretary/Director (Public Grievances),Ministry of Textiles, Udyog Bhavan,New Delhi-110011.Tel.No. 23061826

2. Office of the Development Shri H.L. MeenaCommissioner (Handicrafts) Dy.Director/Public Grievance Officer,

O/o DC(HC), WB-7, R.K.Puram, New Delhi - 110066.Tel. No 26103708

3. Office of the Development Shri S.K. Jha,Commissioner (Handlooms) Addl Development Commissioner (HL)/Public Grievances

& Redressal Officer, Udyog Bhavan, New Delhi.Tel.No.23063397

4. Office of the Textiles Shri S. BalarajuCommissioner Director (Vigilance)

Public Grievances Officer, O/o the Textiles Commissioner,New C.G.O. Building, 48, New Marine Lines,Mumbai - 400020.Tel.No.022-22034134

5. Office of the Jute Shri Sujit PalCommissioner Dy. Director (Cost) & Public Grievance Officer,

O/o Jute Commissioner, CGO Complex, DF Block,Sector-1, IV Floor, MSO Building, Salt Lake, Kolkata.Tel.No. (91)033 -2438225

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29

Table 2.2

LIST OF ORGANISATIONS UNDER THE MINISTRY OF TEXTILES(EXCEPT ATTACHED/SUBORDINATE OFFICES)

Public sector Textiles Export Advisory Registered StatutoryUndertakings Research Promotion Bodies Societies Bodies

Associations Councils

1. Birds Jute 1. Ahmedabad 1. Apparel Export 1. All India 1. Central Wool 1. Central SilkExport Ltd. Textiles Industry's Promotion Council Handloom Development Board(BJEL), Research (AEPC), New Delhi Board Board (CWDC), (CSB),Kolkata Association (ATIRA), Jodhpur Bangalore

Ahmedabad

2. British India 2. Bombay Textiles 2. Carpet Export 2. All India 2. National Centre 2. CommissionserCorporation Research Promotion Council Handicrafts for Jute of Payments(BIC) along with Association (BTRA), (CEPC), Board Diversification (COP),its subsidiaries Mumbai New Delhi (NCJD), New Delhi

Kolkata

3. The Central 3. Indian Jute 3. Cotton Textiles Export 3. All India 3. Sardar Vallabhai 3. JuteCottage Industries Research Promotion Council Powerloom Patel Institute of ManufacturesIndustries Association (TEXPROCIL), Board Textiles DevelopmentCorporation of (IJIRA), Kolkata Mumbai Management CouncilIndia Ltd. (CCIC) (SVPITM), (JMDC),New Delhi Coimbatore Kolkata

4. The Cotton 4. Man-made Textiles 4. Export Promotion 4. Coordination 4. TextilesCorporation of Research Association Council for Handicrafts Council for Committee,India Ltd. (CCI), (MANTRA), (EPCH), Textiles MumbaiMumbai Surat New Delhi Research

Associations

5. The Handicrafts 5. Northern India 5. Handlooms Export 5. Cotton Advisory 5. Nationaland Handlooms Textiles Research Promotion Council Board Institute ofExports Association (HEPC), Chennai FashionCorporation of (NITRA), TechnologyIndia Ltd. Gaziabad (NIFT),(HHEC), New DelhiNew Delhi

6. The Jute 6. South India Textiles 6. Indian Silk Export 6. Jute AdvisoryCorporation of Research Association Promotion Council BoardIndia Ltd. (JCI), (SITRA), Coimbatore (ISEPC), MumbaiKolkata

7. National 7. Synthetic and Art Silk 7. PowerloomHandlooms Mills Research Development &Development Association Export PromotionCorporation Ltd. (SASMIRA), Council (PEDEXCIL),(NHDC), Mumbai MumbaiLucknow

8. National Jute 8. Wool Research 8. Synthetic and RayonManufactures Association Textiles ExportCorporation (WRA), Thane Promotion Council(NJMC), (SRTEDC),Kolkata Mumbai

9. National 9. Wool and WoolenTextiles Export PromotionCorporation Council (WWEPC),Ltd. (NTC), New DelhiNew Delhi

10. Wool IndustryExport PromotionCouncil (WOOLTEXPRO), Mumbai


30

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31

CHAPTER III

THE ORGANISED TEXTILESMILL INDUSTRY


32

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33

The Cotton/Man-made fibre textileindustry is the largest organizedindustry in the country in terms of

employment (nearly 1 million workers) andnumber of units. Besides, there are a largenumber of subsidiary industries dependenton this sector, such as those manufacturingmachinery, accessories, stores, ancillaries,dyes & chemicals. As on 31.10.2009, therewere 1834 cotton/man-made fibre textilemills (non-SSI) in the country with aninstalled capacity of 37.07 million spindles,4,89,718 rotors and 56,524 looms.

Textile production covering man-madefibre, filament yarn and spun yarn isshowing increasing trend. Man-made fibreproduction recorded a fall of about 15%and filament yarn production recorded afall of about 6% during 2008-09. TheProduction of same during April-Oct (2009-10) is showing an increasing trend by 13%each (Provisional). The production of cottonyarn during 2008-09 recorded a fall ofabout 4% during 2008-09 and the sameduring April-Oct (2009-10) is showing anincreasing trend by 5% (Provisionl).

During 2008-09 cloth production byhandloom, power loom decreased by about4% and 3%, hosiery sectors productionincreased by 2%. Overall cloth production

CHAPTER III

THE ORGANISED TEXTILES MILL INDUSTRY

decreased by about 2% during 2008-09.Cloth production by mill sector showedmarginal decrease of 1% during April-Oct.(2009-10) (provisional). During the sameperiod cloth production by handloom, powerloom and hosiery sector showed anincrease of 2%, 12% and 11% respectively(provisional).

CAPACITY

There were 1834 cotton/man-made fibretextile mills (non-SSI) in the country as on31.10.2009 with 37.07 million spindles,4,89,718 rotors and 56,524 looms.

CAPACITY UTILISATION IN THE MILLSECTOR

The capacity utilization in the spinningsector of the organized textile mill industryranged between 80 to 90% while thecapacity utilization in the weaving sector ofthe organized textile mill industry rangedbetween 41 to 62%.

PRODUCTION OF SPUN YARN

It would be relevant to mention that thecontribution from the SSI sector has beenabout 10% in the total spun yarn production.A statement showing the production ofspun yarn (including SSI units) during thelast few years is given at table 3.1.

Table 3.1(In Mn. Kg.)

Year Cotton Yarn Blended Yarn and 100% non-cotton yarn Total Spun Yarn

2005-06 2521 937 34582006-07 2824 989 38132007-08 2948 1055 40032008-09 2898 1016 39142009-10(P) 1744 627 2371(April-Oct)

P - Provisional


34

SICKNESS/CLOSURE OF TEXTILEMILLS

The incidence of sickness and closure inthe organized textiles industry is a matterof concern. Textiles being the oldest andthe largest industry of the country, it is butnatural that at any given point of timesome textiles units could be lying sick /closed. One main reason of sickness isstructural transformation resulting in thecomposite units in the organized sectorlosing ground to power looms in thedecentralised sector, on account of thelatter's greater cost effectiveness. Othercauses of sickness/ closure of the industryinclude low productivity due to lack ofmodernisation, stagnation in demand andinability of some units to expand in theexport market, increase in the cost ofinputs, difficulties in getting timely andadequate working capital and theavailability of power, labour disputes,excess capacity, failure to diversify inemerging areas, poor management, etc.The details of closure of cotton/man-made fibre textile mills is given at table3.2.

PRODUCTION OF CLOTH &EMPLOYMENT GENERATION

The weaving capacity in the organizedsector, along with the number of compositetextile mills, however, has stagnated,

because the past Government policypermitted only marginal expansion inweaving capacity in the organized millsector. Even after the removal ofrestrictions in the Textile Policy of 1985,weaving capacity has been consistentlydeclining. This is attributable to thestructural transformation in the industry,leading to the de-linking of weaving fromspinning and the emergence of thedecentralized powerloom sector. In theorganized sector the loom age capacityhas declined from 1.23 lakh in March,2000 to 0.86 lakh in March, 2005, and to0.56 lakh in March 2008 and the samemarginally increased to 0.57 lakh inOctober 2009.

Over the years, production of cloth in themill sector is showing a steady growthsince 2003-04 onwards and was 1796million sq. meter in 2008-09. The totalproduction of cloth by all sectors i.e. mill,powerloom, handloom, hosiery and khadi,wool and silk has shown an upward trendin recent years. The Cloth production in2008-09 is 54966 mn. sq. mtrs.(Provisional). The cloth production duringApril-Oct (2009-10) showed an increasingtrend by 10% (provisional).

The data on production of cloth in themills, handlooms, powerlooms and hosierysectors during the past sever years andthe current year are given at table 3.3.

Table 3.2

Year No. of Spinning Mills No. of composite Mills Total

2001-02 295 126 421

2002-03 349 134 483

2003-04 374 94 468

2004-05 376 99 475

2005-06 387 96 483

2006-07 380 87 467

2007-08 318 63 381

2008-09 339 64 403

Oct .09 347 69 416

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35

Table 3.3

PRODUCTION OF CLOTH IN DIFFERENT SECTORS

MILL SECTOR (in million sq meter)

Item 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10(P) (April-Oct)(P)

Cotton 1019 969 1072 1192 1305 1249 1259 726

Blended 263 253 243 252 330 422 426 245

100% Non Cotton 214 212 211 212 111 110 111 64

Total 1496 1434 1526 1656 1746 1781 1796 1035

HANDLOOMS SECTOR

Cotton 5098 4519 4792 5236 5717 6076 5840 3448

Blended 118 117 146 145 99 123 118 70

100% Non Cotton 764 857 784 727 720 748 719 424

Total 5980 5493 5722 6108 6536 6947 6677 3942

DECENTRALISED POWERLOOMS SECTOR

Cotton 6761 6370 7361 8821 9647 9923 9621 6252

Blended 4695 4688 4526 4632 5025 4918 4764 3096

100% Non Cotton 14498 15889 16438 17173 18207 19884 19263 12519

Total 25954 26947 28325 30626 32879 34725 33648 21867

DECENTRALISED HOSIERY SECTOR

Cotton 6422 6182 7430 8624 9569 9948 10178 6556

Blended 800 1010 1117 1269 1428 1425 1458 939

100% Non Cotton 659 655 565 525 507 431 441 284

Total 7881 7847 9112 10418 11504 11804 12077 7779

ALL SECTORS

Cotton 19300 18040 20655 23873 26238 27196 26898 16982

Blended 5876 6068 6032 6298 6882 6888 6766 4350

100% Non Cotton 16135 17613 17998 18637 19545 21173 20534 13291

Total 41311 41721 44685 48808 52665 55257 54198 34623

Khadi, Wool & Silk 662 662 693 769 724 768 768 448

Grand Total 41973 42383 45378 49577 53389 56025 54966 35071

P = Provisional


36

The employment generation in cotton/man-made fibre/Yarn Textile Mill Sector(including SSI spinning and excludingweaving units) textile industry projectedfor the terminal year of the 11th plan is1.40 million numbers.

TECHNOLOGY UPGRADATION FUNDSCHEME (TUFS)

The Technology Up gradation FundScheme (TUFS) was commissioned on01.04.1999 initially for a period of 5 yearswith a view to facilitate the modernizationand upgradation of the textiles industry byproviding credit at reduced rates to theentrepreneurs both in the organized andthe unorganized sector. The Scheme,which has now been extended up to31.03.2012, has been fine-tuned tocatapult the rapid investments in thetargeted segments of the textile industry.TUFS has helped in the transition from aquantitatively restricted textiles trade tomarket driven global merchandise. It hasinfused an investment climate in the textilessector and in its operational life span haspropelled investment of more thanRs.1,86,804 crores upto 30.9.2009.

The garmenting, technical textiles andprocessing segments of the textilesindustry have great potential to add valueand generate employment. The WorkingGroup on Textiles and Jute Industry forthe XI Five Year Plan, constituted by thePlanning Commission, has set a growthrate of 16% for the sector, projecting aninvestment of Rs. 150,600 crore in thePlan period. In this context, it was decidedto extend the Technology UpgradationFund Scheme during the Eleventh Planperiod, and to reframe some of thefinancial and operational parameters ofthe Scheme in respect of new loans.(Initially, the Scheme was upto 31.03.2004.On the overwhelming response of theindustry it was extended till 31.03.2007.)In the Tenth Plan Period (2002-07),Rs.1,270 crore had been earmarked for

the scheme. However, the net utilizationof funds under this Scheme wasRs.2044.17 crore.

The modified techno-financial parametersof the Scheme will infuse capitalinvestment into the textiles sector, andhelp it capitalize on the vibrant andexpanding global and domestic markets,through technology up gradation, costeffectiveness, quality production, efficiencyand global competitiveness. It is estimatedthat this will ensure a growth rate of 16%in the sector. The modified structure ofTUFS focuses on additional capacitybuilding, better adoption of technology,and provides for a higher level ofassistance to segments that have a largerpotential for growth, like garmenting,technical textiles, and processing. Theimportant parameters of the Scheme forthe Eleventh Plan period are as follows:-

i) The scheme will continue to providea reimbursement of five percentagepoints on the interest charged by thelending agency on a project oftechnology up gradation in conformitywith the Scheme. However, for thespinning machinery thereimbursement will be fourpercentage points.

ii) The scheme will continue to providecover for foreign exchange ratefluctuation not exceeding 5%.However, for the spinning machinerythe coverage will be 4%.

iii) The Scheme will now provide anadditional option to the power loomsunits to avail of 20% subsidy underTUFS in lieu of 5% interestreimbursement on investment in TUFcompatible specified machinerysubject to a capital ceiling of Rs. 200lakh and a ceiling on subsidy ofRs.20 lakh. A minimum of 15% equitycontribution from beneficiaries will beensured.

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37

iv) The Scheme will now provide 15%subsidy for SSI textile and jute sectorin lieu of 5% interest reimbursementon investment in TUF compatiblespecified machinery subject to acapital ceiling of Rs. 200 lakh and aceiling on subsidy of Rs.15 lakh. Aminimum of 15% equity contributionfrom beneficiaries will be ensured.

v) The Scheme will continue to provide5% interest reimbursement plus 10%capital subsidy for specifiedprocessing machinery.

vi) The Scheme will now provide 5%interest reimbursement plus 10%capital subsidy for specifiedmachinery required in manufactureof technical textiles and garmentingmachinery.

vii) The Scheme will now provide Interestsubsidy/capital subsidy on the basicvalue of the machinery and excludethe tax component for the purpose of

valuation in view of the decision fornon-subsidizing the taxes.

viii) The Scheme will provide 25% capitalsubsidy on purchase of the newmachinery and equipment for thepre-loom & post-loom operations,handlooms/up-gradation ofhandlooms and testing & QualityControl equipment, for handloomsproduction units.

ix) The entire range of imported secondhand machinery will now be ineligibleunder the Scheme for any benefitexcept automatic shuttleless loomswith the value cap of Rs. 8.00 lakhper machine and 10 years' vintageand with a residual life of minimum10 years.

x) Other investments such as energysaving devices, effluent treatmentplant, in-house R&D, IT includingERP, TQM including adoption ofISO/BIS standards, CPP etc

Union Minister of Textiles, Thiru Dayanidhi Maran at a Textiles Manufacturing Unit


38


Year Received Sanctioned Disbursed

No. of Project No. of Project Amount No. of Amount Subsidyapplications Cost applications Cost applications

1999-00 407 5771 309 5074 2421 179 746 1.00

2000-01 719 6296 616 4380 2090 494 1863 70.00

2001-02 472 1900 444 1320 630 401 804 198.89

2002-03 494 1835 456 1438 839 411 931 202.59

2003-04 867 3356 884 3289 1341 814 856 249.06

2004-05 986 7941 986 7349 2990 801 1757 283.60

2005-06 1086 16194 1078 15032 6776 993 3962 485.00

2006-07 12336 61063 12589 66233 29073 13168 26605 823.92

2007-08 2408 21254 2260 19917 8058 2207 6854 1143.37

2008-09 (P) 6113 56542 6072 55707 24007 6111 21826 2632.00

2009-10 (uptoSept. 2009) 584 7065 583 7065 1158 584 1019 2576.00

As on30.09.2009 (P) 26472 189218 26277 186804 79383 26163 67223 8665.438

(including non-conventional sources)as mentioned in Para 3.3(2) of theexisting Scheme will now be eligiblefor benefits of the scheme only upto25% of the cost of machinery.

xi) Investments like land, factory building,pre-operative expenses and marginmoney for working capital will nowbe ineligible for benefit ofreimbursement under the schemeexcept meant for apparel sector andhandlooms with existing 50% cap.In case apparel unit is engaged inother activity, the eligible investmentunder this head will only be relatedto plant & machinery eligible formanufacturing apparel.

The Scheme covers spinning, cottonginning & pressing, silk, reeling & twistingwool, scouring & combing, syntheticfilament yarn texturising, crimping andtwisting, manufacturing of viscose filamentyarn (VFY) / viscose staple fibre (VSF),

weaving/knitting including non-wovens andtechnical textiles, garments, made-upmanufacturing, processing of fibres, yarns,fabrics, garments and made-ups, and thejute sector.

Progress of TUFS

The progress of TUFS is steadily goingup which is evident from the data givenat table 3.4.

Progress of (20% CLCS)

20% Credit Linked Capital SubsidyScheme under CLCS-TUFS for powerloom units had been launched on 6thNovember 2003. Under the scheme, Rs.149.79 crores has been disbursed to2164 cases since Nov. 2003 to 27.11.2009as given at table 3.5.

HANK YARN OBLIGATION SCHEME

The Hank Yarn Obligation (HYO) is astatutory obligation which enjoins upon

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39

spinning mills to pack yarn in hank form.This Scheme is meant for protection ofthe handloom industry by way of ensuringthat the yarn in hank form is available inadequate quantity at reasonable prices tothe handloom industry. Failure to complywith this Obligation invites lodging of FIRagainst the defaulting mills by the Officeof the Textile Commissioner. The currentlevel of obligation is 40% of the total yarnpacked by the mills for the civilconsumption. The obligation has to befulfilled in quarterly periods commencingfrom January-March. The Scheme alsoprovides that shortfall in fulfillment of theobligation may be met by transferring ofthe obligation to another mill which hasexcess production of hank yarn in additionto fulfilling its own obligation. Normally,mills on premium accept such transfer.

With the strict enforcement of theprovisions of the Hank Yarn PackingNotification by the Office of the TextileCommissioner, Mumbai actual packing ofHank Yarn is sufficient and comfortable tomeet the total domestic requirement ofhank yarn in the country as in the recent62nd Hank Yarn Price MonitoringCommittee meeting held in the Office ofthe Textile Commissioner, Mumbai on31.07.2009, the participant expressed thatsupply of Hank Yarn is comfortable andthere is no report of short supply of hank

yarn from any part of the country. Thedetails of Hank Yarn Packing Obligationand its fulfillment by actual packing aregiven at table 3.6.

TEXTILE WORKERS' REHABILITATIONFUND SCHEME (TWRFS)

The Textile Workers' Rehabilitation FundScheme came into force with effect from15.09.1986 with the objective to provideinterim relief to textile workers renderedunemployed as a consequence ofpermanent closure of any particular portionor entire textile unit. Assistance under theScheme is payable to eligible workers onlyfor the purpose of enabling them to settlein another employment. Such assistanceis not heritable, transferable or capable ofbeing attached on account of any otherliabilities of the worker. The worker'seligibility shall cease if he takes upemployment in another registered orlicensed undertaking. The rehabilitationassistance will not be curtailed if the workerfixes himself in a self-employment venture.

Closed Textile Unit

For the purpose of this scheme, closedtextile unit means :-

(i) a unit licensed or registered underthe Industries (Development &Regulation) Act, 1951 or with the

Table 3.5

Sr. Year No. of Amount of subsidy releasedNo. units (Rs. in lakh)

1 2003- 2004 004 00.102 2004-2005 150 06.003 2005-2006 368 23.004 2006-2007 958 68.895. 2007-2008 436 35.926 2008-2009 404 32.487 2009-2010 195 183.81

(as on 27.11.09)

TOTAL 2515 350.20


40

Textile Commissioner as a mediumscale unit on the day of its closure;

(ii) it has obtained the requisitepermission for closure from theappropriate State Government undersection 25(O) of the IndustrialDisputes Act, 1947 or alternativelyan Official Liquidator was appointedunder Companies Act, 1956, for thepurpose of winding up of the unit.

(iii) The unit was closed down on or after06.06.1985.

(iv) This also includes partially closedunits wherein the State Governmentsrecommend that an entireuneconomic activity (like weaving orprocessing) is scrapped as a part ofrehabilitation package for a sick/weak mill (as per the RBI definition)approved by the Nodal Agency/BIFRprovided the scrapped capacity issurrendered for cancellation andendorsement is made on the License/ Registration certificate to this effect.

Eligibility

Any workers would be eligible provided he/

she has been engaged in a closed textileunit on the date of its closure continuouslyfor five years or more and earning a wageequivalent of Rs. 2500 per month or less forthe mills closed between 06.06.1985 to01.04.1993 and Rs.3500 or less thereafter.They should be contributing to providentfund maintained by the Regional ProvidentFund Commissioner of the State concerned.

Period and Quantum of Relief

Relief under the Scheme is available onlyfor three years on a tapering basis but willnot extend beyond the date ofsuperannuation of any worker. The workeris entitled to get relief:

● to the extent of 75% of the wageequivalent in the first year of theclosure of the unit;

● to the extent of 50% of the wageequivalent in the second year; and

● to the extent of 25% of the wageequivalent in the third year.

Operation of the Scheme

The office of the Textile Commissioner,Mumbai administers the scheme, through

Table 3.6

Year No. of Fulfillment of Hank Yarn Shortfall PercentageUnits Obligation (HYO) (-)/Excess (+) of

submitted in fulfillment fulfillmentthe HYO Fulfillment of HYO of HYO

returns of HYO(on actual

packing basis)

2004-05 2151 383.58 408.89 (+)25.31 106.60%

2005-06 1942 451.84 441.94 (-)9.9 97.81%

2006-07 2022 484.67 485.03 (+)0.63 100.13%

2007-08 2099 516.03 527.37 (+)11.07 102.14%

2008-09 2114 492.51 524.00 (+)31.49 106.39%

2009-10(April,09 toJune, 09)(P) 1939 126.88 126.15 (-)0.73 99.94%

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41

its Regional offices and in coordinationwith State Government, Official Liquidator,Provident Fund Authorities, concerneddesignated Trade Union and designatedBanks. The State Government will collectthe details of the workers etc. from themanagement/official Liquidator/providentfund authority etc. and prepare a list ofeligible workers and forward the same tothe concerned Regional Office of the TextileCommissioner in the prescribed Proforma.Regional Office of the Textile Commissionerscrutinizes the list and the list of eligibleworkers with eligible relief is sent to StateGovernment and designated trade union,besides keeping on a notice board.

The individual eligible workers are requiredto open a separate Savings Bank Accountin the designated nationalized Bank andforward a certificate to the effect along withhis relief claiming application to theRegional office of the Textile Commissionerthrough the State Government. In the meantime the Regional office of the TextileCommissioner examines the proposals andassesses the fund requirement and reports

to the Head quarter Office of the TextileCommissioner for releasing fund. Onreceipt of fund allocation, necessary fundis allotted to the Regional Office in the formof Letter of Credit opened by the Pay &Accounts Officer (Textiles) Mumbai. Onreceipt of funds, Regional Office of theTextile Commissioner disburses the reliefby sending a consolidated cheque in favourof the designated Bank along with the listof eligible workers and the amount of reliefto be paid to each of the eligible workers.

Progress

Till 30.11.2009, under the Scheme, 43units in Gujarat, 6 units in Tamil Nadu, 5units in Maharashtra, 4 units in MadhyaPradesh, 1 units in Andhra Pradesh, 1unit in Delhi, 1 unit in Kerala, 7 units inKarnataka, 2 unit in West Bengal and 3units in Punjab i.e. 73 mills were foundeligible under the scheme. A total of10391 workers out of 133666 workers onrolls of these mills had been disbursedrelief of Rs. 265.64 crore. The State-wisecumulative position is given at table 3.7.

Table 3.7

S. State No. of mills No. of No. of workers benefited Disbursed amountNo. identified workers (as on 30.11.2009) (Rs. in crores)

on rollNo. of Workers

mills received relief

1. Gujarat 43 80749 43 63591 159.44

2. Maharashtra 5 5529 5 3969 9.67

3. Madhya Pradesh 4 18977 4 17791 47.70

4. Tamil Nadu 6 5685 6 4668 7.03

5. Kerala 1 500 1 437 2.47

6. Karnataka 7 9620 7 4933 17.19

7. Andhra Pradesh 1 710 1 70 0.43

8. Delhi 1 5187 1 5170 11.93

9. West Bengal 2 1597 2 1324 2.19

10. Punjab 3 5112 3 1947 7.59

Total 73 133666 73 103901 265.64


42

PROCESSING SECTOR

The textile-processing segment of theIndian textile industry is highly fragmentedand can be broadly divided into foursegments :-

(i) Hand processing units.

(ii) Hand processing units with certainexempted power processes.

(iii) Independent power processing units.

(iv) Processing facilities attached tocomposite or semi-composite mills.

Government has identified processing asa critical segment. The National TextilePolicy envisages :-

● Setting up of modern processingunits, which would meet theinternational quality andenvironmental norms.

● Expansion of the network of CAD /CAM, computerized color matchingand testing facilities, particularly inthe clusters of the decentralized textilecenters.

● Extending necessary support toindividual units in achieving ISO 9000(quality) and ISO - 14000(environment) standards

● Giving a thrust to development ofeco-friendly dyes, including naturaland vegetable dyes and on energyconservation.

Globally the environmental issues areincreasingly dominating the textileprocessing industry. In view of this, andas per mandate of National Textile Policy,the important steps taken by Governmentto boost the high-tech investment in

processing sector include :-

(i) Technology Upgradation FundScheme launched by Government ofIndia on 1st April, 1999, envisagesboosting investment in high-techprocessing units, by providing 5%interest reimbursement on TUF loans.The scheme has been extended for11th five year plan.

(ii) In order to take care of qualityrequirements and facilitate eco-friendlyproduction of processed fabric, eco-testing and quality testing facilitieshave been created throughout thecountry, so that the testing facilitiesare available within the reach ofmajority of manufacturers/exportersof textiles items.

(iii) In order to boost investment in hightech capital intensive textileprocessing projects, a scheme toprovide 10% capital subsidy onspecified high tech machines hasbeen introduced. The units put upUnder this scheme may avail 5%interest reimbursement under TUFS,in addition to 10% capital subsidy.This facility has been extended for11th five year plan.

(iv) In order to develop textile clusters inan integrated manner the scheme ofTextiles Centre InfrastructureDevelopment (TCIDS) has beenmerged with Apparel Park Schemeand is now know as Scheme forIntegrated Textiles Park (SITP).Under this scheme the textile parkswith all infrastructural facilitiesincluding state-of-the-art effluenttreatment plants are encouraged. Thescheme provides for 40% subsidy onthe project cost subject to themaximum of Rs.40 crore.

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CHAPTER IV

EXPORTS


44

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45

India's textiles and clothing industry isone of the mainstays of the nationaleconomy. It is also one of the largest

contributing sectors of India's exportsworldwide. The Vision Statement for thetextiles industry for the 11th Five YearPlan (2007-12), inter-alia, envisages Indiasecuring a 7% share in the global textilestrade by 2012. At current prices the Indiantextiles industry is pegged at US$ 55billion, 64% of which services domesticdemand. The textiles industry accountsfor 14% of industrial production; employs35 million people and accounts for nearly12% share of the country's total exportsbasket.

Milestones

i) Exports of textiles and clothingproducts from India have increasedsteadily over the last few years,particularly after 2004 when textilesexports quota were discontinued.

ii) India's textiles & clothing (T&C) exportregistered robust growth of 25% in2005-06, recording a growth of US$3.5 billion in value terms therebyreaching a level of US$ 17.52 billionand the growth continued in 2006-07as T&C exports were US$19.15 billionrecording a increase of 9.28% overprevious year and reached USD22.15billion in 2007-08 denoting anincrease of 15.7% but declined byover 5% in 2008-09 with exports ofUSD 20.94 billion. Indian Textilesand Clothing (T&C) exports is facingvarious constraints of infrastructure,high power and transaction cost,incidence of state level cess andduties, lack of state-of-the-art

CHAPTER IV

EXPORTS

technology etc. The details of India'stextiles exports item-wise during thelast three years and current financialyear for the period Apr-Sept.'2009 isgiven at table 4.1.

iii) Readymade Garments account foralmost 42% of the total textilesexports. Apparel and cotton textilesproducts together contribute nearly72% of the total textiles exports.

iv) The exports basket consists of awide range of items comprisingreadymade garments, cotton textiles,handloom textiles, man-made fibretextiles, wool and woolen goods, silk,jute and handicrafts including carpets.

v) India's textiles products, includinghandlooms and handicrafts, areexported to more than a hundredcountries. However, the USA and theEU, account for about two-third ofIndia's textiles exports. The othermajor export destinations areCanada, U.A.E., Japan, Saudi Arabia,Republic of Korea, Bangladesh,Turkey, etc.

vi) The Government fixed the target for2008-09 at US $ 26.55 billion anincrease of 20% over the actualperformance of US$ 22.14 billion in2007-08, for export of textiles.However, no targets were fixed for2009-2010.

Liberalised trading regime andemerging opportunities

In the liberalized post-quota period, Indiahas emerged as a major sourcing


46

Tab

le 4

.1

Ind

ia's

tex

tile

s ex

po

rts

at a

gla

nce

(P

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2006

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RMG

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Sou

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: Fo

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Sta

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Ind

ia(

Prin

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DG

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Rup

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epar

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9-10

a n n u a l r e p o r t 2 0 0 9 - 1 0

47

destination for new buyers. As a measureof growing interest in the Indian textilesand clothing sector a number of buyersopened their sourcing/ liaison office inIndia. These include Marks and Spencer,Haggar Clothing, Kellwood, Little Label,Boules Trading Company, Castle, AlsterInternational, Quest Apparel Inc., etc.Commercially the buoyant retailers acrossthe world are looking for options ofincreasing their sourcing from the Indianmarkets. Indian manufacturers are alsopro-actively working towards enhancingtheir capacities to fulfil this increaseddemand.

Export performance in the current year

In 2007-08 the textiles exports of Indiasuffered badly due to sharp appreciationin Rupee vis-à-vis the US$. Although therupee has depreciated sharply vis-à-visthe US dollar since April, 2008, theexports prospects of the Indian textilessector continues to be adversely affected.Some of the reasons attributed to thisdecline are the financial sector melt downand economic slow down in internationalmarkets, increased cost of productionbecause of increasing raw material costs,high power and other input costs whichhave affected the profitability of textilesand garments units in India and theirexports. The liquidity crunch is anotherfactor that is affecting the industry. Insuch a situation the positive impact ofrupee depreciation had been washedaway. During the current financial year,various export promotion councils andtrade bodies represented to theGovernment that the textiles exports hadadversely been affected by recent globalrecession. For exports, the major marketshave been USA, EU & Japan and all thethree markets have went into recessionduring the current year. As a result,during this year exports quantities werereduced or put on hold or the orders werecancelled or buyers opted for cheaperprices elsewhere.

Country-wise analysis

● The calendar year 2008 since themonth of August onwards was not atall conducive for the Indian T&Cexport as the major markets likeUSA, EU and Japan for T&C havebeen observing recessionary trendsand financial crisis. In thisenvironment, the textiles and autosectors are the worst hit sectors,particularly as these are consideredto flourish in good times. USA, thesingle largest importer of textiles andclothing items, observed a negativegrowth of 13.22% and 10.3% in itsimports of T&C from the world andIndia, respectively in calendar year2009. Even China which occupiedabout 37% market share in the USArecorded a small decline of 1.9%during same period. Almost all majorcountries showed negative growth inUS market.

● India's position in the EU marketswith a share of 7.67% and growthrate of 6.42% was small incomparison to China which occupiedover 38% market size with a growthof 20.46% in 2008. The EU's overallT&C import registered a growth of13.91% in 2007 and 7.32% in 2008.In the calendar year 2009, EU'soverall imports of T&C declined by11.96% while India recorded anegative growth of 8.94% over 2008.Even China and Turkey, the twolargest exporters of T&C to EU haverecorded a negative growth of 6.15%and 17.42% respectively during sameperiod.

Import Scenario

Total textiles imports were of the order ofUS$ 3.5 billion in 2008-09. 44% of thiswas on account of import of yarn andfabrics and 46% was on account of importof raw material and semi-raw-material.


48

The imports have increased by 5.19%during 2008-09 in dollar terms. However,import of textiles as percentage of totalimports has been going down steadilyand comprised only 1.20% in 2008-09.

Export Promotion Measures

The Government is seized of thesubmissions of the industry and tradeassociations regarding potential loss ofemployment in the textiles and clothingindustry consequential to declining salesin domestic and international markets.Some of the steps taken by theGovernment to support the textiles andgarments industry include the following:

Stimulus Scheme announced on07.12.2008

● General reduction of 4% in CENVATrates. As a result, the textilemachinery had 10% (Previously 14%)and Non-cotton textile have 4%(Previously 8%) CENVAT rate.

● 4% optional CENVAT on cottontextiles has been abolished.

● NAPTHA has been exempted fromimport duty (Previously 5%) for usein the power sector.

● Rate of C. Excise duty on cottontextiles reduced from 4% to Nil.

● (Notification No.59/2008 (C. Excisedated 07-12-2008).

● The benefit of Service Tax refund(Already available to 19 otherservices, which are not in the natureof "input services" but could be linkedto export goods.) is now extended toservice provided by a clearing &forwarding agent to exporters.

● The Threshold limit of refund ofservice tax paid by exporters onforeign commissioner agent servicehas been enhanced from 2% of FOBvalue to 10% of FOB value of exports.

● Draw back benefit can now be availedof simultaneously with refund ofservice tax pad in respect of exports.

● Pre and post - shipment export creditfor certain specific sectors includingtextiles belongs to SME sector isbeing made more attractive byproviding an interest subvention of2% upto 31/03/2009 subject tominimum rate of interest 7% perannum.

● An additional allocation of Rs. 1400crore will be made to clear the entirebacklog in TUF Scheme.

● All items of handicrafts will beincluded under 'Vishesh Krishi &Gram Udyog Yojana, All items ofHandicraft included under VisheshKrishi & Gram Udyog Yojana(VKGUY) Scheme, under whichexports are eligible for Duty CreditScrip equivalent to 5% of FOB value.

● To boost collateral free lending, thecurrent guarantee cover under CreditGuarantee Scheme for Micro andSmall enterprises on loans will beextended from Rs.50 lakh to Rs.1crore with guarantee cover of 50percent.

● Government back-up guarantee forECGC to the extent of Rs. 350crores to enable it to provideGuarantees for exports to difficultmarkets/products, to continue thesingle buyer policy.

● Additional fund of Rs. 1100 croresfor refund of Terminal Excise Duty(TED)

● Additional provision of Rs.350 croresfor export incentive schemes.

Scheme announced on 02.01.2009

● The DEPB Scheme extended tillDecember 31, 2009 and resored the

a n n u a l r e p o r t 2 0 0 9 - 1 0

49

rates at those prevailing prior to 5thNovember 2008.

● Restored DEPB Credit rates to thoseprevailing prior to 1-9-2008. However,no benefit to exporters of cottontextiles since there was no reductionthe DEPB rates for cotton textiles.

● Decided to remove the all- in- costceilings on External CommercialBorrowings.

● Duty Drawback revised rates/valuecaps with retrospective effect i.e.w.e.f. 1-9-2008 -

● Increased Value cap for Cotton Yarnfrom Rs. 8/- per Kg to Rs. 12/ per kgfor Grey Yarn and from Rs. 14 perkg to Rs. 16 per kg for Dyed yarn

● Increased rate of Drawback for CottonKnitted Fabrics from 4.5% to 5% andvalue cap from Rs. 14 per kg toRs.15.60 per kg.

Interim Budget 2009-10

● General rate of Central Excise Dutyis reduced from 10% to 8%. As aresult Central Excise Duty on TextileMachinery is reduced from 10% to8%.

● Rate of Service Tax on taxableservices is reduced from 12% to10%.

Stimulus Package Scheme announcedon 24.02.2009

● Customs Duty - The facility ofexemption from Basis Customs Dutyon imports of Naptha for generationof Electric energy is being extendbeyond 31-03-2009.

● Excise Duty -

❏ General Reduction in ExciseDuty rates by 4% made wef7-12-2008 is being extendedbeyond 31-03-2009

❏ Further reduction in the rate ofExcise Duty by 2%; i.e. from10% to 8%

❏ Retaining the rate of CentralExcise Duty on goods currentlyattracting Ad-Valorem rates of8% and 4% respectively.

● Service Tax - The rate of ServiceTax on taxable services has beenreduced from 12% to 10%.

● Exemption from Income Tax forSEZ/s - Removed the anomaly incomputation of export profits withreference to the total turnover of theassesses in SEZ/s.

Major supplementary Trade FacilitationMeasures announced on 26.02.2009under Foreign Trade Policy 2009-2014

● Rupees 325 crore provided underpromotional Schemes for Leather,Textiles etc., for exports made witheffect from 1.04.2009. It is in theform of 2% duty credit scrip of FOBvalue of exports under market linkedfocused product scheme exclusivelyfor exports into US and EU.

● Benefit of 5% duty credit script ofFOB value of exports under FocusProduct Scheme has been notifiedfor exports of handmade carpets, inlieu of 3.5% benefit allowed earlierunder VKGUY scheme (VisheshKrishi and Gram Udyog Yojana).

● Technical Textiles has been addedunder High-Tech Products ExportPromotion Scheme and now entitledto duty credit scrip equivalent to1.25% of FOB value of exports.

● Under EPCG scheme, in case ofdecline in exports of a product bymore than 5%, the export obligationof that product is to be reducedproportionately. This provision has


50

been extended for the year 2009-10,for exports during 2008-09.

● DEPB/Duty credit script utilizationextended for payment of duty forimport of restricted items also.

● Procedure for claiming duty drawbackrefund and refund of terminal exciseduty further simplified.

● Re-credit of 4% SAD, in case ofpayment of duty by incentive schemescrips such as VKGUY, Focusproduct and Focus Market, wasallowed.

● Export obligation period againstAdvance Authorizations extended upto 36 months.

● Permitted supply of intermediateproduct/s by the domestic producerdirectly from the factory to the port ofshipment against AdvanceIntermediate Authorization.

● Dispensed with the requirement ofMODVAT/CENVAT certificate incases where the Customs Notificationitself prescribed for payment of CVD,inrespect of Advance Licences issuedprior to 01-04-2002.

● Export House - Reduced thethreshold limit for recognizing PremierTrading Houses from Rs. 10,000crore in the preceding three yearsand current year to Rs. 7,500 crore.

Scheme announced on 04.03.2009

● The Government announced facilityof refund of service tax paid on allinput services, irrespective of whetherthey are consumed inside or outsidethe zone, to Special Economic Zones(SEZ) units and developers.Previously, the government exemptedSEZ developers/units from paying atax on services that were consumedwithin the zone.

Other Facilitation Measures

● Re-imbursement of Additional Dutyof Excise levied on fuel under theFinance Act would also be admissiblein respect of EOU's.

● Re-credit of 4% SAD, in case ofpayment of duty by incentive schemescrips such as VKGUY, FPS andFMS, has now been allowed.

● Simplification of the provision forgetting refund of Terminal ExciseDuty/Deemed Export Benefits andnow exporters can submit a statementcertified by Central Excise Authoritiesin lieu of individual invoices and amonthly statement confirming dutypayment in lieu of ER-1/ER-3.

● Krishnapatnam seaport included forthe purpose of Export PromotionSchemes.

● Electronic Message Transfer facilityfor Advance Authorization and EPCGScheme established for shipmentsfrom EDI ports w.e.f.01-04-2009.

● Requirement of hard copy of ShippingBills dispensed with for ExportObligation discharge.

RBI (25-03-2009)

● The validity of interest subvention at2% on Pre Shipment Credit upto 270days and Post Shipment Credit upto180 days was extended from31-03-2009 to 30-09-2009 andsubsequently extended upto31-03-2010.

Major incentives introduced underForeign Trade Policy (2009 - 2014)

● Incentive Schemes have beenexpanded by addition of new productsand markets.

● 26 new markets have been added

a n n u a l r e p o r t 2 0 0 9 - 1 0

51

under the Focus Market Scheme.These include 16 new markets inLatin America and 10 in Asia-Oceania.

● The incentive available uner FocusMarket Scheme (FMS) has beenraised from 2.5% to 3%.

● The incentive available under theFocus Product Scheme (FPS) hasbeen raised from 1.25% to 2%. Thiscovers a large number of productsfrom various sectors have beenincluded for benefits under the FPS.These include Jute and Sisalproducts, Technical Textiles andvegetable textiles.

● Market Linked Focus ProductScheme (MLFPS) has been greatlyexpanded by inclusion of productsclassified under as many as 153ITC(HS) Codes at 4 digit level. Thiscovers textiles madeups, knitted andcrocheted fabrics.

● MLFPS benefits also extended forexport to additional new markets forcertain products. These includeapparels among others.

● Higher allocation for MarketDevelopment Assistance (MDA) andMarket Access Initiative (MAI)scheme is being provided.

● To aid technological Upgradation ofexport sector, EPCG Scheme at ZeroDuty has been introduced forapparels and textiles among others.

● To impart stability to the Policyregime, Duty Entitlement Passbook(DEPB) Scheme is extended beyond31-12-2009 till 31.12.2010.

● To simplify claims under FPS,requirement of 'Handloom Mark' foravailing benefits under FPS has beenremoved.

EXPORT PROMOTION COUNCILS

Apparel Export Promotion Council(AEPC)

The Apparel Export Promotion Council(AEPC) was sponsored on February 22,1978 to promote exports of readymadegarments from India. The Council wasadministering the exports entitlementsquota in respect of readymade garmentitems, which were subject to restraint inUSA, European Union and Canada.Besides its headquarter at New Delhi, theCouncil has Regional Offices at NewDelhi, Jaipur (Rajasthan), Ludhiana(Punjab), Mumbai (Maharashtra), Chennaiand Tirupur (Tamilnadu), Bangalore(Karnataka) and Kolkata (West Bengal).

The Cotton Textiles Export PromotionCouncil (Texprocil)

The Cotton Textiles Export PromotionCouncil (TEXPROCIL), Mumbai wasincorporated under the Indian CompaniesAct, VII of 1913 in October, 1954 with thepressing objectives of export promotion ofcotton textiles. In the year under review,the Cotton Textiles Export PromotionCouncil (TEXPROCIL), Mumbai made anumber of suggestions for strengtheningthe export efforts and also to provide datafor monitoring exports. The Councilcontinued to disseminate information ondemand patterns, consumer preferences,competing products/countries etc. with aview to assist Indian exporters to competeeffectively in the overseas markets. TheCouncil also undertakes export promotionmeasures to project the considerableproduct range of Indian cotton textiles inIndia and abroad.

The Synthetic & Rayon Textiles ExportPromotion Council (SRTEPC)

The Synthetic & Rayon Textiles ExportPromotion Council (SRTEPC), Mumbaiwas incorporated in 1954 under the Indian


52

Companies Act, 1913 with the basicobjectives to establish, promote andoperate maintain and increase the exportof synthetic and/or cellulosic yarn, etc. Inthe period under review, the Councilprovided comprehensive inputs to theGovernment for modification in export-import policy/procedures as well asdisseminated information on demandpatterns, fashion trends and prices ofcompeting products in the overseasmarkets to enable Indian exporters toimplement modernized cost-effectivemanufacturing techniques, productadaptation and diversification. The Councilundertook several export promotionmeasures to generate greater awarenessof Indian man-made textiles amongoverseas buyers.

Export Promotion Activities of EPCs

During the year 2009-10, the EPCscontinued export promotion activities oftextiles exports. These includedparticipation in overseas exhibitions/fairs,organisation of Buyer-seller-Meets (BSMs)abroad and, sponsoring trade delegationsfor consolidating the existing markets andexploring new markets.

Apparel International Mart (AIM)

The Apparel International Mart (AIM) hasbeen constructed at Gurgaon in Haryanawith a covered area of 3.5 lakh sq.ft.,where International buyers can have theconverge at one single source to accesstheir requirements and conduct on-the-spot business. A total of 223 showroomshave been booked against the available229 showrooms. The events like MarketWeek and Markets Carnivals wereorganized during the year by the Council,where the showroom holders displayedtheir collections. The Apparel House hasbecome an important landmark inGurgaon, and houses facilities likeAuditorium, Exhibition Hall, Art Gallery,Cafeteria, and Plaza Area & Amphitheatre.

Apparel Training & Designing Centres(ATDCs)

The Apparel Training & Designing Centrewas registered as a Society underSocieties Registration Act on February15, 1991 at New Delhi with the mission toupgrade the technical skills of the humanresource employed in Garment Industry.There are 52 ATDC centres functioningacross the country to provide trainedmanpower in the field of Pattern Making/Cutting Techniques and ProductionSupervision and Quality ControlTechniques to the Readymade GarmentIndustry so that quality garments aremanufactured for the global market.

SARDAR VALLABHBHAI PATELINSTITUTE OF TEXTILE MANAGEMENT(SVPITM)

Sardar Vallabhbhai Patel Institute of TextileManagement (SVPITM), Coimbatore is aNational Level Autonomous Institutionproviding comprehensive education,training, consultancy and research intextiles management. The Institute hasbeen set up by the Government of India,Ministry of Textiles and the TextilesIndustry, registered under the Tamil NaduSocieties Registration Act, 1975 to caterto the long-felt need for managementcourses specializing in textiles.

Under the overall directions of the Boardof Governors, chaired by the Secretary,Ministry of Textiles, Govt. of India,Academic Committee, chaired by the JointSecretary, Ministry of Textiles, Govt. ofIndia and the Executive Committee,chaired by Shri R.Poornalingam, I.A.S.(Retd.), former Secretary (Textiles),Government of India, the day-to-dayacademic and administrative activities ofthe Institute are carried out by the Directorwith the support of faculty and staffmembers.

The Institute got All India Council for

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Technical Education (AICTE) approvalrecently and is offering the following long-term programmes:-

1. Two-year full-time Post-GraduateDiploma in Management (Textiles)PGDM(T)

2. Two-year full-time Post-GraduateDiploma in Management (Apparel)PGDM(A)

Apart from full time courses, the Institutealso organises innovative ExecutiveDevelopment Programmes to armexecutives in the industry with theknowledge and tools needed to competeand win in today's globalised economy.The Institute had conducted number ofConferences / Short-term / ManagementDevelopment Programmes (MDP) from itsinception. The Institute is also offeringcomprehensive consultancy services inthe areas of Textile Technology andTextile Management including Marketing,Finance and Human Resource to theneedy companies.

The year-wise funds released to theSVPITM by the Government is given attable 4.2.

Table 4.2

Financial year Amount released(in Rupees)

2003-04 9,00,000.00

2004-05 3,91,00,000.00

2005-06 2,00,00,000.00

2006-07 5,00,00,000.00

2007-08 9,18,00,000.00

2008-09 4,27,81,000.00

2009-10 3,57,00,000.00

Total 28,02,81,000.00

EXPORT PROMOTION,INFRASTRUCTURE AND TECHNOLOGYUPGRADATION MEASURES

APPAREL PARK FOR EXPORTSSCHEME (APES)

With the objective of imparting a focusedthrust to set up apparel units ofinternational standards and to give a fillipto exports, the Government had launchedthe Apparel Park for Exports Scheme(APES), a centrally sponsored scheme.Twelve Project Proposals have beensanctioned for setting up Apparel Parks atTronica City & Kanpur (U.P.), Surat(Gujarat), Thiruvananthapuram (Kerala),Visakhapatnam (Andhra Pradesh),Ludhiana (Punjab), Bangalore (Karnataka),Tirupur & Kanchipuram (Tamil Nadu),SEZ, Indore (Madhya Pradesh), Mahal(Jaipur, Rajasthan) and Butibori-Nagpur(Maharashtra). Developments of basicinfrastructure facilities have beencompleted in eight projects, where textilesunits have started commercial production.Assistance of Rs.128.69 Crore has beenprovided under the scheme for theseprojects.

TEXTILES CENTRE INFRASTRUCTUREDEVELOPMENT SCHEME (TCIDS)

Development of infrastructure facilities atpre-dominantly textile/apparel sector areasis one of the thrust areas of NTxP-2000.For attaining this objective, the TextilesCentre Infrastructure DevelopmentScheme (TCIDS) was launched forupgrading infrastructure facilities atimportant textile centers. Eighteen projectshave been approved under the TCIDS atPashmylarlam-Distt. Medak, and Sircilla-Distt. Karimnagar (Andhra Pradesh),Panipat (Sector 29, Phase-II, Haryana),Indore (Madhya Pradesh), Jassol, Balotra-Bithuja belt Barmer Distt. And Paali(Rajasthan), Narol-Shahwadi-AhmedabadCity, SEWA Trade Facilitation Centre,Ahemdabad and Pandesara-Surat


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(Gujarat), Tirupur, Kancheepuram andCauvery Hi-tech Weaving Park,Komarapalayam (Tamil Nadu), Solapur,Bhiwandi and Malegaon (Maharashtra),Kannur (Kerala), Zakura (Jammu &Kashmir) and Pilkhuva (Uttar Pradesh).Work has been completed in 4 projects;works in 13 projects are expected to becompleted in 2010. Implementation ofremaining 1 project may go beyond 2010.Assistance of Rs.207.17 Crore has beenprovided under the scheme for theseprojects.

SCHEME FOR INTEGRATED TEXTILEPARKS (SITP)

The 'Scheme for Integrated Textile Parks(SITP)' is being implemented to facilitatesetting up of textile units with appropriatesupport infrastructure. IndustryAssociations / Group of Entrepreneursare the main promoters of the IntegratedTextiles Park (ITP).

Scope of the Scheme

The scheme targets industrial clusters/locations with high growth potential, whichrequire strategic interventions by way ofproviding world-class infrastructuresupport. The project cost covers commoninfrastructure and buildings for production/support activities, depending on the needsof the ITP. The components of an ITPare:

(a) Group A - Land.

(b) Group B - Common Infrastructurelike compound wall, roads, drainage,water supply, electricity supplyincluding captive power plant, effluenttreatment, telecommunication linesetc.

(c) Group C - Buildings for commonfacilities like testing laboratory, designcenter, training center, trade center/display center, ware housing facility/raw material depot, crèche, canteen,

workers hostel, offices of serviceproviders, labour rest and recreationfacilities etc.

(d) Group D - Factory buildings forproduction purposes.

(e) Group E - Plant & machinery.

The total Project Cost for the purpose ofthis Scheme includes the cost on accountof components of ITP, as listed underGroups A, B, C and D above, providedthe ownership of the factory buildingsvests with the SPV. The SPV has,however, have the option of seekingfinancial support from Government ofIndia for components under Groups B andC only, if factory buildings are individuallyowned.

Funding Pattern

The total project cost, as indicated above,is funded through a mix of Equity/Grant -from the Ministry of Textiles, StateGovernment, State Industrial DevelopmentCorporation, Industry & ProjectManagement Consultant and Loan - fromBanks/Financial Institutions. TheGovernment of India's (GOI) support underthe Scheme by way of Grant or Equity islimited to 40% of the project cost subjectto a ceiling of Rs. 40 crore. However, GOIsupport will be provided @90% of theproject cost subject to a ceiling of Rs. 40crore for first two projects in the States ofArunachal Pradesh, Assam, Manipur,Meghalaya, Mizoram, Nagaland, Tripura,Sikkim and Jammu & Kashmir.

Progress of implementation

Forty (40) textiles park projects have beenapproved by the Ministry of Textiles. State-wise sanction of project is - Andhra Pradesh(5), Gujarat (7), Karnataka (1), MadhyaPradesh (1), Maharashtra (9), Punjab (3)Rajasthan (6), Tamil Nadu (7), and WestBengal (1). These Parks would havefacilities for spinning, sizing, texturising,

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weaving, processing, apparels etc. Theestimated project cost (for commoninfrastructure and common facilities) is Rs.4141.35 Crore, of which Government ofIndia assistance under the scheme wouldbe Rs. 1422.43 Crore. 2216 entrepreneurswill put up their units in these parks coveringan area of 4334 Acre. The projectedinvestment in these parks is Rs. 19,459Crore and estimated annual production isRs 33,587 Crore. After these parks arefully operational there would be employmentavailable for 8.19 lakh persons (3.15 lakhdirect & 5.04 indirect). So far assistance ofRs. 772.36 Crore has been provided forexecution of these projects. The promotersof these textiles park projects have broughtin Rs.1800 Crore (approx.) as theircontribution. First Textiles Park, viz.Palladam HiTech Weaving Park, Palladam,Tamil Nadu was inaugurated on19.04.2008. Pochampally Handloom Park,Andhra Pradesh was the second parkinaugurated on 16.11.2008.Komarapalayam HiTechweaving Park,Komarapalayam, Tamil Nadu wasinaugurated on 21.02.2009.In DodballapurIntegrated Textile Park, Banaglore,Karnataka, Rapier Weavers' training facilitywas inaugurated on February 28, 2009.Gujarat Eco Textile Park, Surat, Gujaratwas inaugurated on 09.09.2009.BrandixIndia Apparel City, Vishakhapatnam,Andhra Pradesh, and Pride IndiaCooperative Textile Park, Ichalkaranji,Maharashtra are also complete. Remainingprojects are likely to be completed in2010/11.

NATIONAL INSTITUTE OF FASHIONTECHNOLOGY (NIFT)

The National Institute of FashionTechnology was set up in 1986 is anautonomous Society in collaboration withthe Fashion Technology (FIT), New York,to train professionals to meet therequirements of the textiles industry. TheInstitute has pioneered the evolution offashion business education across the

country through its network of sevencentres at New Delhi, Bangalore, Chennai,Gandhinagar, Hyderabad, Kolkata andMumbai. A Centre at Rae Bareli has beenadded from academic year 2007-08 andfour Centres at Patna, Bhopal, Shillongand Kannur have been added fromacademic year 2008-09. New NIFT Centreat Kangra has been inaugurated on 21/1/2009. NIFT, besides conducting regularprofessional undergraduate andpostgraduate programmes in Design,Management and Technology, also offersshort duration part-time courses under itsContinuing Education (CE) Programme.

It is proposed to start 3 new centres atBhubaneswer, Jodhpur and Mohali fromthe Academic Year 2010-2011.

The National Institute of FashionTechnology Act, 2006 came into force onJuly 14, 2006 and comes into effect from1st April, 2007. The Act provides statutorystatus to the Institute and formallyrecognizes its leadership in fashiontechnology sector, and empowers NIFT toaward degrees to its students. NIFT is thefirst institute in the world to award degreesin fashion education.

STATUTORY STATUS

NIFT Act 2006 has accorded statutorystatus for the promotion and developmentof Education & Research in FashionTechnology with the President of India asthe Visitor. The Act signifies publicconfidence in NIFT as a thought leader,with 'fashion' (defined in a much widercontext) as a business strategy for valueaddition.

NIFT is supported by the Ministry ofTextiles and governed by the Board ofGovernors (BOG) and its Chairpersonnominated under NIFT Act, 2006. TheDirector General is the Chief ExecutiveOfficer of the Institute with Head Officeand a network of twelve Centres.


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Thought leadership in fashiontechnology education

NIFT has been instrumental in bringingabout a paradigm shift in the perceptionof 'fashion' in India, with its connotationextending beyond the conventional apparelindustry, to integrate with every aspect ofthe lifestyle industry. Fashion todayencompasses popular trend or a lifestyle,specially in styles of dress and ornamentor manners of behaviour or the businessof creating, promoting or studying stylesin vogue or the designing, production andmarketing of new styles of goods such as,clothing, accessories, craft and cosmetics,thus adding tremendous value to diverseindustry and businesses.

NIFT have pioneered major changes inthe industry in strategy, approach,technology upgradation, designintervention and management practices,in the face of liberalization andglobalization of the economy.

Curriculum restructuring withinternational benchmarking

NIFT has been conferred the status ofStatutory body by an Act of Parliamentwhereby NIFT awards Undergraduate andPost Graduate Degree in the field ofDesign, Management and Technology.

The Degree programmes offered by NIFTat Undergraduate level (4 years) are asunder:

1. Bachelor of Design B. Des (Design)

● Fashion Design

● Leather Design

● Accessory Design

● Textile Design

● Knitwear Design

● Fashion Communication

2. Bachelor of Fashion Technology(B. FTech.) - Technology

● Apparel Production

The Post Graduate degreeprogrammes offered by NIFT are asunder:-

3. Post Graduate Programme

The Post Graduate degreeprogrammes offered by NIFT are asunder:-

● Master of Design (M.Des)-Design

● Master of Fashion Technology(M.F.Tech.)-Technology

● Master of Fashion Management(M.F.M.)-Management

The Post Graduate degree programmesare of two years duration.

Apart from the above, NIFT from this yearonwards has started Ph.D, FacultyDevelopment Programme (FDP) andBridge Programme.

The introduction of these programme willserve to build essential knowledgeresource and develop core competencyand transform NIFT into centre ofexcellence in these specific areas ofDesign, Management and Technology.Bridge Programme is introduced assupplementary programme that wouldallow former NIFT Graduates to enhancetheir diplomas into degrees.

Industry Linkages

Industry Linkages of NIFT are symbioticwith industry experts contributing to thecurriculum development and deliver,projects, placements and training. NIFTCampus Placement 2009 was organizedduring Jan-Feb 2009 and second phaseduring June 2009. Second phaseplacement was organised in two phase

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during June 2009. Second phaseplacement was organized in clusters likeTripur, Ludhiana, Jaipur in closecoordination with different industryassociations apart from NIFT centres.The class of 2009 was successfully placedin various sectors.

International Linkages

1. MOUs/ Strategic alliances

In the academic year spanning 2009-10, five new (domain specific) MOUshave been signed for various activitieslike student and faculty exchange,research, customized programmes,Seminars etc.

● Accademia Di Costume E DiModa, Rome

● Politecnico di Milano, Italy

● Shenkar College of Engineering& Design, Israel

● Colorado State University,Colorado, USA

● Academy of Arts, San Francisco

2. International Competitions for NIFTStudents

● Competition for Fashion andProduct Design Contextorganized by Bonjour India,Festival de la france en Inde.

● New Designer Fashion GrandPrix, contest, sponsored byJapan Fashion WeekPromotional Organization.

3. International Scholarship forsemester study for NIFT students:

NIFT has been discussing the issueof scholarships for students to coverincidental and other expenses withvarious universities. As a result ofsuch interactions, QueenslandUniversity of Technology (QUT),Australia, has decided to award 05

scholarships worth AUD $ 5000 eachto students from India. QUT hasallotted all 05 scholarships forexchange in 2010 to NIFT students.These scholarships shall be overand above the tuition fee waiver tothe students.

4. MA scholarship for NIFT Students

● University of the Arts London(London College of Fashion)offered one full Scholarships forstudents from India for MAprogram in Design Managementfor the Fashion Industries,Fashion Entrepreneurship &Strategic Fashion Marketing

● Creative Academy, Italy offeredone full scholarship for NIFTstudents for MA programfollowed by 03 monthsinternship.

● NABA, Italy offered 3scholarships (25%) for MA inTextile Design and NewMaterials.

● Istituto Superior di Design,Italy offered one MA fullScholarship to NIFT students

5. Scholarship for InternationalGraduation Project

ENSAIT, France provided fullscholarship to one student forGraduation Project.

6. Student Twinning / Exchange ofNIFT students is at table 4.3.

7. Details of Foreign Students whohave undertaken the Study Abroadat NIFT is given at table 4.4.

8. Customized Summer Program(Exchange) & short-term programsfor NIFT students and facultymembers


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Table 4.3

Name of Foreign NIFT Centre No. of Students RemarksSchool

Jan- ENSAIT, France Kolkata, 08 students from Free seatsJune Delhi & DFT department2009 Chennai

London College of Delhi 03 students from Free seatsFashion, UK Fashion and

Apparel Department

Queensland University Kolkata & 02 students form Free seatsof Technology, Delhi DFT and KDAustralia department

RMIT Delhi & 02 students from Free seatsKolkata KD department

Ryerson University, Mumbai 01 student from Free seatsCanada FC department

University of Leeds, Kolkata 01 student from Paid SeatUK KD department

University of Manchester, Delhi 01 student from Free seatUK KD department

July- Amsterdam Fashion Bangalore 01 student from Free SeatDecember Institute, AMFI MFM2009

London College of Kolkata 02 students from Free seatFashion, UK FD(University of the Arts,London)

NABA Delhi 02 students from Paid seatF&LA department

Queensland University Kolkata 03 students from Free seatof Technology, DFT and TDAustralia department

Table 4.4

Semester of Name of Foreign Host Dept. No. ofExchange Institute at NIFT students

July-December 09 Queensland University F&T & FD 05

Mod Art International UG Tech 01

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Table 4.5

Name of Institute Type of Program Details

Swiss Textile of College Customized Summer Course 10 students acrossNIFT Centers

Customized Summer Course 01 faculty memberfrom NIFT-Bangalore

Domus Academy Summer Course 01 faculty member fromDomus Academy provided 02 freeship NIFT Kolkata and 01for NIFT Faculty member. from NIFT Bangalore

Table 4.6

Sr. Name of Institute Type of Program DetailsNo.

1. Philadelphia University Customized Program at Delhi 13 Students

2. Swiss Textile College Customized summer program 8 Studentsat Bangalore

3. Customized summer program 01 Faculty memberat Bangalore from Swiss Textile

College

4. Wolver Hampton College Customized Program at 14 students and 01NIFT Kolkata faculty from Wolver

Hamton College

Various Customized short termsummer program were successfullycompleted with full scholarship at theForeign University. The detail is givenat table 4.5.

9. Incoming foreign students undercustomized programs

Various Customized short termsummer programs were successfullycompleted at NIFT. The detail isgiven at table 4.6.

Cluster Development Initiatives

NIFT has made concerted efforts tomainstream the craft tradition of thecountry as an integral component of the

curriculum of all programmes. It focuseson training, design intervention, technologyup-gradation, establishing market linkagesand promotion. To facilitate this Initiative,Rural Development Enterprise Centres atthe cluster hubs and Shares ResourceTechnology and Support Centres at thesub-cluster level, have been establishedacross the country. Approx. 8000 artisansliving below the poverty line in the Statesof Karnataka, Madhya Pradesh, Gujarat,Kerala and West Bengal have beenbenefited by this initiative as on March'09.

NIFT Emporium in Rajiv Gandhi Bhavanin New Delhi set up as a part of ourCluster Development initiative, is a logical


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step towards establishing market linkagesfor the artisans of the clusters to providethem a platform to showcase their productsfor attracting buyers in the domestic andglobal markets.

NIFT has translated its vision of 'concernfor social and human values' into aworkable proposition by impartingknowledge to many NGOs to strengthentheir capabilities through classroom andother projects. Integration of craft clusterproject into academic curriculum providesentrepreneurial experience, holisticlearning, and real life care studies tostudents and faculty.

DCHC project has been sanctioned forthree design studios each at Delhi, Kolkataand Gandhinagar which have beenestablished and one museum at Delhiwhich is functioning at NIFT Emporium,Rajiv Gandhi Bhawan, Baba Khadak SinghMarg, New Delhi.

All three Design Studios established underthe Project is fully functional with highlyequipped facility resources. As per thedeliverables under DCHC project, DesignGallery has been set up with magazines,periodicals and products developed underthe workshop.

A fully equipped design studio has beenestablished with state of the art technologyin order to facilitate the beneficiaries withdesign solutions, digital transformations,archival purposes and access totechnology at the grass root level withfacilities like laptop, digital camera andDLP projector has been established atDesign Studio Gandhinagar.

Need based workshops aimed to provideDesign intervention for upgrading the skillsof the artisans and to develop new designproducts that have a contemporary lookand have a ready market are undertakenon a regular basis.

Recent activities include Workshop on

Handmade Ceramics in Jharsa Gaon,Gurgaon for 15 days, involving 17 artisansto develop contemporary style ceramicsproducts, the range designed & developedincluded Garden Décor, Desk TopAccessories, Home Décor and Bathroomaccessories. A 15 days workshop wasalso conducted in Handmade Art paper atHauzrani Village involving 14 artisanswhich helped the artisans to upgrade theirskills by enabling them to use handmadepaper and fabricate value added items tocater the needs of markets by evaluatinghandmade paper advantages andeliminating its shortcomings. The rangedeveloped during this workshop includedCorporate Accessories, Complete Desktopset, Home Décor and Packaging. A totalof 18 workshops have been conductedunder Sampling/prototype workshop &Design Intervention/Training in which total396 artisans have been involved acrossthree DCHC- Design Studios.

TECHNICAL SUPPORT

Over the years, NIFT has providedtechnical support and guidance toinstitution catering to the industry at themanagerial, supervisory, and shop floorlevels as well as to institutions in the sub-continent. Over 75 Fashion Institutes,Schools, Education Boards andorganizations have benefited from NIFT'sexpertise in developing fashion educationprogrammes, training for trainers,infrastructure development, and systemsmanagement.

GOVERNANCE

NIFT has commissioned Information &Communication Technology (ICT) enabledEnterprise Resource Planning (ERP)across NIFT Centres for online monitoringand evaluation of performance throughBalanced Score Card linking it to thescheme of rewards and incentives.

To leverage on NIFT's unique feature of

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being multifarious, multi dimensional andmulti dimensional, a system of Wide AreaNetwork (WAN) is being introduced whichwill help in sharing of resources andcompetency available across NIFT.Centres in most effective manner.

RESEARCH

The expertise of NIFT faculty in theirrespective areas of specialization isrespected in the industry. With theemphasis laid on applied research atNIFT, new knowledge base is continuouslygenerated. Seven faculty members wereawarded their PhDs in the year 2008-09.They are Dr. Sanjeev Kumar, Dr. NidhiSharda from NIFT Bangalore, Dr. A. K.Khare from NIFT Kangra, Dr. SibichanMathew, Dr. Nilanjana Bairagi and Dr.Senthil Kumar from NIFT Delhi and Dr.Sougata Banerjee from NIFT Kolkata.

NIFT faculty publishes and presentspapers extensively. It will be difficult toenumerate all their achievements, howevera few significant events where NIFT wasrepresented are:-

Four papers were presented at the 86thTextile Institute World Conference heldat Hong Kong in 2008. Prof. (Dr.) SanjayGupta, Delhi presented a paper on"Innovation In Fashion: Introducing a NewProduct Development Process in DesignEducation"; Prof. Prabir Jana, Delhipresented a paper on "ObjectiveEvaluation of sewing work place"; Mr.Shakeel Iqbal, Hyderabad presented apaper on 'Effect of Different Parameterson the Properties of Fancy MulticountYarns"; and Ms. Sudeshna Datta Roy,Gandhinagar presented a paper on "SmartColorants for Textiles".

Four papers were presented at the AnnualConference of International Foundationof Fashion Technology Institutes (IFFTI)held at London in April 2009. Prof. (Dr.)Sanjay Gupta, Delhi presented a paper

on 'Encapsulating Physical & EmotionalWell-being in Fashion Clothing'; Prof.Sudha Dhingra, Delhi presented a paperon 'Textiles with a Healing Touch'; Ms.Varsha Gupta, Delhi presented a paperon "Recycling of Textile waste in a clusterand its Contribution to the Socio-EconomicUpliftment of the Community"; and, Ms.Harleen Sahani, Gandhinagar presenteda paper on "Sustainability Clean & GreenFashion".

Five papers were presented at theInternational Conference on 'TechnicalTextiles in Apparel Sector' organized byNIFT at Bangalore 2008. Dr. (Prof.) A.K.Khare & Mr. Vasant Kothari, Bangalorepresented on "Next Generation Garment";Mr. Vasant Kothari, Bangalore presentedon "In Sight on Ultra Violet ProtectiveTextiles and its Relevance in Kidswear";Ms. Sudha Singh presented on "AdvancedE textiles, Wearable Interface for theHealthcare"; Ms. Nitya Venkataram on"Product Modification" and Ms. JonaleeBajpai, Ms. Shipra Sharma & Ms. SwetaJain on "Coconut Technology for KnittedGolf Wear".

Dr Reena Aggarwal, Mumbai presentedpaper on 'Effect of Processing Parameterson Felting Ability of Wool Fibres' at the4th International Textile, Clothing & DesignConference - Magic World of TextilesDubrovnik, Croatia.

Dr Reena Aggarwal also presented 'Effectof Physical Parameters on Felting Abilityof Wool Fibers with reference to RajasthanWool Felt Industry' at the 6th InternationalConference of Textile Research Division,National Research Centre, Cairo, Egypt.

Three papers were presented at theInternational Conference on 'ApparelIndustry Global Challenges & Opportunities2009 & Beyond' organized by Team TechTextiles, Bangalore'08. Ms. ManjushaKhare, Kagnra presented paper on "TacticTextiles"; Mr. Mohan Kumar and Dr. Nidhi


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L. Sharda, Bangalore presented a paperon "Designing of Knit Plan for Women'swear: Knitting machine to showroomproduction technology"; and Dr. Nidhi L.Sharda presented a paper on "ExtractionDyeing & Evaluation of Myrica Esculantaon wool fibre :Revival of natural dyes inGarhwal Himalayas".

Dr. A K Khare, Kangra published a paperon "Reliability Analysis of a System ofBoiler used in Readymade garmentIndustry" in Journal of Reliability &Statistical Studies.

Ms. Tulika Mahanty, Delhi presented apaper on "Balancing decent work withcompetitiveness in the era of changingglobal labor market - A case study ofLabor Market in the Garment Sector ofBangladesh." in International TextileConference & Exhibition held in Bangalorefrom 16-18th April'09.

Dr. Vandana Bhandari, Delhi presented apaper on "Gold and Sliver - the GlitteringThreads of Rajasthan" at Jaipur LiteraryFestival, 2009.

Prof. (Dr.) Sanjay Gupta presented apaper on 'Fair Participation for HomeFurnishing Exporters' in a seminar on'Strategies for enhancing exportcompetitiveness' organised by HEPC inDelhi and Chennai.

Dr. M. Vasantha, Associate Prof -Presented a paper on "Design Concepts& Colour Trends for Export Market" in aseminar on 'Strategies for enhancingexport Competitiveness' organised byHEPC in Chennai.

A number of papers were published inleading international and national journals/magazines such as ATA Journal, Stitchworld, apparel online, DFU, Images etc.

Still more prestigious is the fact thatfaculty is now contributing Chapters to

leading International publications. Dr.Vandana Bharndari contributed a chapterto Berg Encyclopedia of World Dress andFashion and Dr. Sanjay Gupta contributeda chapter to Advances in Wool Technologyby Woodhead publishing.

Synchronization and benchmarking ofthe academic deliverance

In the process of standardization ofacademic deliverance the coursecurriculum- its content, delivery andevaluation process have beenhomogenized particularly so, across the 5new centers that have been added since2008. All the subjects are classified astheory, process and electives with all thetheory subjects having a commonexamination and evaluation across NIFTcenters and process based subjects havingbenchmarked assignments to bring parityin the course deliverance. The structure ofthe jury for all the process based subjectsalso has been standardized. Thiscurriculum is effectively and efficientlyrunning across all the NIFT centers.

Looking at future perspective, industryfeedback session were organized acrossmajor textile & apparel Centres in India.The feedback will be discussed later in afaculty conclave for adoption.

NEW INITIATIVES

NIFT took 3 important initiatives toenhance its academic offerings this year.

Doctoral programme

The first was the launch of a Doctoralprogramme with the purpose of carryingout original research in textile, fashionand the apparel sector and to create abody of original knowledge for the use ofacademia and industry at large. The PhDprogramme is offered both to NIFT's ownfaculty as well as to external candidatesin the areas of design, management and

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technology as applied with broad referenceto textile, fashion and apparel industries.A total of 42 applicants applied for againstour call for admissions of which 10 havebeen admitted this year.

Bridge Program

Another initiative was to launch a BridgeProgram for NIFT Alumni to enhance theirdiploma to degrees. Since NIFT wasawarded the statuary status to awarddegree in 2007, there was a request fromgraduates of prior batches who wereissued UG & PG Diploma's and who werefacing difficulties in getting admission tohigher education courses and for visa etc.A 6-month bridge programme for erstwhilePG programmes of NIFT i.e. GMT / PGTech /AMM / AMMM / LD /TD /KD andFC, and a one year programme for UGcourses of AD / FD has been offered.Over 176 candidates have applied thisyear out of which 63 were enrolled in

three different programme in two differentcentres i.e. MFT and PG Design in NIFTDelhi and MFT in Gandhinagar. Due tothe ongoing demand of the programmethe new programme is announced whichis due to start in January 2010.

Faculty Development Programme

The third initiative was undertaken toaddress the gross shortage of trainedfaculty form the areas of Fashion Design,Fashion Technology and FashionManagement at the national level andcreate a pool of interested, motivated andtrained manpower in the field of FashionEducation. NIFT's Faculty DevelopmentProgramme was introduced in 2009 toNIFT alumni as well as qualified bachelorsdegree holders from various streams ofDesign, Management & Technology.Twelve candidates have been registeredfor this course. The next program will belaunched in 2010.


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CHAPTER V

THE COTTON ANDMAN-MADE FIBRE AND

FILAMENT YARN INDUSTRY


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Cotton is one of the principal cropsof the country and is the majorraw material for domestic textile

industry. It provides sustenance to millionof farmers as also the workers involved incotton industry, right from processing totrading of cotton. The Indian textile industryconsumes a diverse range of fibres andyarn, but is predominantly cotton based.The ratio of the use of cotton to man-made fibres and filament yarns by thedomestic industry is about 56:46. IndianTextile Industry has an overwhelmingpresence in the economic life of thecountry. Apart from providing one of thebasic necessities of life, the textile industryalso plays a pivotal role through itscontribution to industrial output,employment generation and the exportearnings of the country. It contributesabout 14% to the industrial production,4% to the GDP and 14.42% to thecountry's export earnings. The textilesector is the second largest provider ofemployment after agriculture. Hence,growth and all around development ofcotton and cotton industry has a vitalbearing on the overall development of theIndian economy.

Acreage under cotton cultivation

Acreage under cotton in India had beencontinuously increasing during last fouryears. However, during cotton season2008-09 (October-September), theacreage under cotton cultivation hadreduced marginally by around 1% at 9.37million hectares as against 9.44 millionhectares during 2007-08. Approximately65% of Indian's cotton is produced on

CHAPTER V

THE COTTON AND MAN-MADE FIBRE ANDFILAMENT YARN INDUSTRY

rainfed areas and 35% on irrigatedlands.Cotton farmers in India have beenshowing increasing inclination in bringingmore and more areas under Bt cultivation,which has helped them in increasing theirnet earning through higher yields andlower cost on pesticides consumption.The acreage under Bt cotton in 2008-09had been around 73% (6.88 millionhectares) of the total area of 9.37 millionhectares as against around 67% (6.33million hectares) of the total acreage of9.44 million hectares during season 2007-08.

Indian cotton varieties

India is the only country to grow all fourspecies of cultivated cotton Gossypiumarboreum and herbaceum (Asian cotton),G.barbadense (Egyptian cotton) and G.hirsutum (American Upland cotton).Gossypium hirsutum represents 90% ofthe hybrid cotton production in India andall the current Bt cotton hybrids areG.hirsutuim. India produces large numberof cotton varieties and hybrids. Thoughthe number of varieties in cultivationexceeds seventy-five, 98% of theproduction is contributed by about 25varieties only.

Cotton production and productivity

Cotton is produced in India in three zonesviz., Northern zone comprising the Statesof Punjab, Haryana and Rajasthan, Centralzone comprising the States ofMaharashtra, Madhya Pradesh andGujarat and Southern zone comprisingthe States of Andhra Pradesh, Karnataka


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Table 5.1

Year 2006-07 2007-08* 2008-09*

State Area Prod Yield Area Prod Yield Area Prod Yield

State Area Prod Yield Area Prod Yield Area Prod Yield

Punjab 6.07 24.00 672 6.04 20.00 583 5.27 17.50 554

Haryana 5.30 15.00 481 4.83 15.00 563 4.56 14.00 523

Rajasthan 3.50 9.00 437 3.69 9.00 416 3.02 7.50 572

North total 14.87 48.00 549 14.56 44.00 536 12.85 39.00 546

Gujarat 23.90 103.00 733 24.22 110.00 757 23.42 90.00 633

Maharashtra 31.07 50.00 274 31.95 62.00 330 31.33 62.00 336

Madhya Pradesh 6.39 19.00 505 6.30 20.00 539 6.25 18.00 467

Central total 61.36 172.00 477 62.47 192.00 520 61.21 170.00 466

Andhra Pradesh 9.72 36.00 630 11.33 46.00 714 13.99 53.00 670

Karnataka 3.78 6.00 270 4.03 8.00 351 4.08 09.00 392

Tamil Nadu 1.00 5.00 850 0.99 4.00 654 1.09 5.00 708

South Total 14.50 47.00 551 16.35 58.00 621 19.16 67.00 614

Others 0.71 1.00 239 0.76 1.00 425 0.84 2.00 347

TOTAL 268.00 295.00 278.00

Loose lint 12.00 12.00 12.00

GRAND TOTAL 91.44 280.00 521 94.14 307.00 560 94.06 290.00 526

*As per CAB meeting held on 29.08.2009

and Tamil Nadu. Besides these nineStates, cotton cultivation has gainedmomentum in the eastern State of Orissa.During cotton season 2008-09, despiteadverse agro-climatic conditions, thecountry once again harvested higher cottonproduction for the fifth consecutive year at4.93 million metric tons (equivalent to29.0 million bales of 170 kgs each).However, the same is lower by around8% as compared to the record cottonproduction of 5.36 million metric tons(30.7 million bales) during 2007-08.

The adverse agro-climatic conditions,

insufficient rains in certain parts hadaffected the cotton yield during the year2008-09 and the same had been at526 kgs per hectare as against 567kgs per hectare during cotton year 2007-08.

The higher cotton production in the countryfor the fifth consecutive year has beendue to significant increase in acreageunder Bt cultivation. The State-wiseproduction of cotton during 2006-07,2007-08 and 2008-09 cotton years(October-September) is given attable 5.1.

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Demand and Supply Situation

During the year 2008-09, due to globaleconomic slow down, coupled with severepower cut imposed in some cottonconsuming States viz., Andhra Pradesh,Tamil Nadu etc., the performance of thetextile industry was adversely affected.Due to sluggish demand domestically andworld-over, the mills were finding it difficultto off-load yarn, fabricsw and garments,resulting into piling up of inventory andthe textile mills started making cash losses.As a result, the domestic cottonconsumption which had reached a recordlevel of 3.98 million tons in 2007-08 hadreduced by around 6% to 3.76 milliontons. With reduction in arrivals and withnon-availability of quality cottn fromFebruary 2009 onwards, the domesticmills had started covering cotton formeeting their lean season requirements.

Export & Import of cotton

As a part of measures to boost cottontrade, the Government of India hadliberalized raw cotton exports since July2001, dispensing with the system ofallocation of cotton export quota in favourof different agencies and traders.Exportsof cotton from the country are underOpen General Licence (OGL) since July

2001. During the year 2008-09, the cottonexports from the country are expected todecline to 0.85 million MT (5.00 millionbales of 170 kgs each) including 0.01million MT (0.04 million bales of 170 kgs)by the Cotton Corporation of India,a marketing agency of Government ofIndia.

Imports of cotton into India are underOpen General Licence (OGL) since April1994. From 8th July 2008, the Governmentof India has abolished the import duty of10% alongwith countervailing duty of 4%on cotton imports. Thus, the textile millsin the country are at liberty to importcotton as per their requirements.

The details of imports of cotton during lastfive years are given at table 5.2.

Cotton Exports from India is given at table5.3.

Price trend of cotton during 2008-09

During the cotton season 2008-09, thecotton prices right from the beginning of theseason had been ruling higher by around7 to 39% as compared to the previousyear. However, from the second week ofOctober 2008 till second week of March2009, there was declining trend in the

Table 5.2

Cotton Imports

Year Qty. (in lakh bales of Value in Rupees / crores170 kgs each)

2004-05 12.17 1338.04

2005-06 5.00 695.77

2006-07 5.53 752.29

2007-08 6.38 986.33

2008-09 10.00 NA

2009-10 (E) 7.00 NA

Quantity figures as per CABValue figures as per DGCIS Kolkata


70

cotton prices. From second week of March2009, the domestic cotton prices havestarted ruling steady. The volatility anduncertainty in international prices directlyinfluenced domestic cotton prices. With theexpiry of MFA in January 2005, the Indiancotton prices are now fully integrated withthe international cotton prices.

Minimum Support Price (MSP)

The Cotton Corporation of India Ltd.,undertakes MSP operations on behalf ofthe Government of India by in ensuringremunerative prices to the cotton growersof the country in the wake of prevailingkapas prices touching the MSP level.

The Government of India has fixed thesupport price of two basic varieties ofcotton viz., Medium Staple Length Cottonhaving Staple Length of 24.5 to 25.5 mmwith micronaire value of 4.3 to 5.1 andLong Staple Length Cotton having StapleLength of 29.5 to 30.5 mm with micronairevalue of 3.5 to 4.3 of new crop of SeedCotton (Kapas) of Fair Average Quality(FAQ) for Cotton Season 2008-09(October-September). The support pricefor Medium Staple Length Cotton hasbeen fixed at Rs.2500/- per quintal andthat for Long Staple Length Cotton ofabove classes has been fixed at Rs.3000/- per quintal. Based on the support prices

for these two basic classes of SeedCotton and taking into account the qualitydifferential, normal price differential andother relevant factors, the support pricesfor other classes of Seed Cotton (Kapas)of Fair Average Quality (FAQ) are fixedby the Textile Commissioner.

Cotton Advisory Board

The Cotton Advisory Board (CAB) is arepresentative body of Governmentagencies, growers, industry & trade. Itadvises the Government generally onmatters pertaining to production,consumption and marketing of cotton, andalso provides a forum for liaison amongthe cotton textile mill industry, the cottongrowers, the cotton trade and thegovernment. The tenure of the CAB is twoyears. The Board, reconstituted on June25, 2008 and has got 57 members fromthe field of Central Government, StateGovernment, cotton growers, TextileIndustry, Cotton Trade, Ginning andPressing Sector, Cotton Research &Development Institutions, PowerloomSector and Handloom Sector and MemberSecretary. The reconstituted Board isvalid upto June 24, 2010.

Organic Cotton Advisory Board

A New Advisory Committee has been

Table 5.3

Cotton Exports

Year Qty. (in lakh bales of Value in Rupees / crores170 kgs each)

2004-05 9.14 657.34

2005-06 47.00 3951.35

2006-07 58.00 5267.08

2007-08 88.50 8365.98

2009-09 35.00 3825.10

2009-10 (E) 55.00 NA

Quantity figures as per CABValue figures as per DGCIS Kolkata

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constituted of Organic Cotton AdvisoryBoard (OCAB) on 14.10 2008 for 2 years.The OCAB shall be headed by the TextileCommissioner, which is a representativebody of the Central and State Governmentagencies, Certifying agencies, AgricultureUniversities / Research Institutes, Ginning& Pressing Sector, Textile industry andNon official Members. The role andfunctions of the Organic Cotton AdvisoryBoard shall be as under:

i) To assess the demand and supplysituation

ii) To recommend subsidy for productionpractices to be followed for cultivationof organic cotton under Mini-MissionII of the TMC / ICDP

iii) To evolve the guidelines for thebasis of certification, delineation/identification of production areas andvarieties suitable for organic farming

iv) Constant analysis - comparativestudies of organic and inorganicfarming on long-term basis.

v) Co-ordination with APEDA andNational Organic Farming Institute(NOFI), Faridabad along with itsRegional Station at Jabalpur andNagpur.

vi) Coordination with other certifyingagencies.

International Cotton Adviosry CottonCommittee (ICAC)

The International Cotton AdvisoryCommittee is an association ofgovernments having an interest in theproduction, export, import andconsumption of cotton. It is anintergovernmental organization composedof countries that produce, consume andtrade cotton and is designed to promotecooperation in the solution of cottonproblems, particularly those of internationalscope and significance. The ICAC is

working with WTO to facilitate internationaltrade discussions. ICAC is a scientific andeconomic organization devoted toimprovement of the world cotton sectorand it is not a political body The functionsof the International Cotton AdvisoryCommittee, as defined in the Rules andRegulations, are:-

● To observe and keep in close touchwith developments affecting the worldcotton situation.

● To collect and disseminate complete,authentic, and timely statistics onworld cotton production, trade,consumption, stocks and prices.

● To suggest, as and when advisable,to the governments represented, anymeasure the Advisory Committeeconsiders suitable and practicablefor the furtherance of internationalcollaboration directed towardsdeveloping and maintaining a soundworld cotton economy.

● To be the forum of internationaldiscussions on matters related tocotton prices.

The 68th meeting of the ICAC, took placein Cape town, South Africa from 7th to11th September 2009.

COTTON CORPORATION OF INDIA(CCI)

The role assigned to the CCI under theTextile Policy of June 1985 was:

1. To under take price supportoperations whenever the marketprices of kapas touch the supportprices announced by the governmentof India without any quantitative limit

2. To undertake commercial operationsonly at CCI 's own risk; and

3. To purchase cotton to fulfill exportquotas given to CCI


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The above role of the CCI continuedunder the New Textile Policy of 2000.However, the last stated function no longeris relevant as export of cotton is now freeand he Government is releasing no quotas.Nevertheless CCI purchases cotton evennow to under take export of cotton.

Besides the above role CCI has alsobeen designated as the nodal agency forimplementation of Mini Missions III and IVof the Technology Mission on Cottonfor improvement and Development ofMarket Yards and Modernization ofGinning and Pressing factories and therebyimproving the quality of cotton by reducingcontamination of cotton and ensuring betterprices to the growers.

In addition to the above the Ministry ofAgriculture has also nominated the CCIas the implementing agency forundertaking Front Line Demonstrationsunder Mini Mission II of the TMC.

Under its developmental activities the CCIhas been implementing the ContractFarming Project in all the cotton growingStates.

TECHNOLOGY MISSION ON COTTON

The Technology Mission on Cotton (TMC)was launched by the Government of Indiaon 21st February 2000 with the aim ofaddressing issues relating to the increasein productivity, improvement of qualityand reduction in the cost of productionand thus providing the much-neededcompetitive advantage to the textileindustry along with ensuring attractivereturns to the farmers.

The Scheme completed its tenure till 10thFive Year Plan i.e., up to 31st March2007. However, the Scheme MM III andIV of TMC has been further extended inthe 11th Five Year Plan for two years i.e.upto 31.3.2009 in terms of target andcompletion of the ongoing projects.

The Missions comprises of four MiniMissions, which are jointly beingimplemented by the Ministries ofAgriculture and Textiles. Research andDevelopment on Cotton and Disseminationof technology to farmers are beingundertaken by the Ministry of Agriculturethrough Mini Missions I and II respectively.Ministry of Textiles is the Nodal Agencyfor Mini Missions III & IV of TMC. MiniMission III relates to improvement inmarketing infrastructure and includes therevival of dormant market yards,improvement in existing market yards andsetting up of new market yards.

Under MM-III, development of 250 marketyards have been approved with a totaloutlay of Rs. 489.27 crores out of whichthe TMC share is Rs. 253.38 crore.

Under MM-IV, Modernization of 1011Ginning and Pressing Factories have beenapproved against the target of 1000 units.The Total cost of the approved Projectsis Rs. 1432.19 crores out of which theTMC Share of Rs. 224.74 crore.

MAN-MADE STAPLE FIBRE ANDFILAMENT YARN INDUSTRY

The production of man-made staple fibreindustry which decreased by 14% in2008-09 as compared to 2007-08 isexpected to increase by 19% during2009-10. The production of all the Man-made staple fibres except polypropylenestaple fibre are expected to record apositive growth in 2009-10 as comparedto previous year. Viscose, Polyster andAcrylic staple fibre are expected toincrease by 29%, 16%, 20% respectivelywhile Polypropylene staple fibre isexpected to decrease by about 6% in2009-10.

The total production of man-made filamentyarn is expected to increase by 7% during2009-10. The production of viscose, nylonand polyester filament yarn are expected

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to increase by 1%, 6% and 8% respectivelywhile for polypropylene filament yarn, isexpected to decrease marginally by 1%during 2009-10. The installed capacityand details of production of man-madestaple fibre and filament yarn are given attable 5.4.

NATIONAL FIBRE POLICY

The Report of the Working Group onTextiles & Jute Industry for the 11th FiveYear Plan recommended consolidatingthe raw material base including cotton,wool, silk, Man Made Fibre, technicaltextiles and jute, to facilitate the growthprocess in the industry. Further, the HighLevel Committee on Manufacturing(HLCM) in June 2007, under theChairmanship of the Prime Minister toconsider, inter alia, the Action Plan for thegrowth of Textiles and Garments decidedto formulate a Comprehensive Fibre Policy.It was held that man-made fibre sectorrequired special attention as the fibreconsumption was in the ratio of 57:43

between cotton and man-made fibres incontrast to the 40:60 ratio prevailingworldwide. HLCM felt that a long termComprehensive Fibre Policy (natural &man-made) was required for steadyavailability of fibre.

Thus, in the above background and keepingin view the fact that the market economyand availability of fibre have been thedetermining forces in natural selection ofproduction process, Minister of Textilessoon after assuming Office considered itimperative that a Comprehensive NationalFibre Policy be devised as early as possible.Thus, he made a public announcement inJune, 2009 regarding formulation of a'National Fibre Policy', with a view toachieve a growth rate of 7 to 8% for thetextiles industry.

In line with the announcement, a WorkingGroup on National Fibre Policy wasconstituted on the 29th July, 2009,comprising Government organizations,Export Promotion Councils, Industry


74

Associations and experts in the fielddrawn from eminent institutions/organizations. As decided in the WorkingGroup meeting in September 2009, eightSub Groups on various fibres were formedto critically examine the relevant aspects

and make recommendations to facilitateformulation of a comprehensive FibrePolicy. The issue is being pursuedvigorously to put a policy in place as earlyas possible in consultation with allconcerned stakeholders.

Table 5.4

Installed Capacity and Production of Man-Made Staple Fibre/Filament Yarn

Type No.of Installedunits Capacity 2006-07 2007-08 2008-09(P) 2009-10 2009-10

(TPA) (April-Dec.) (P)30-12-2009(P) (P)

Staple Fibre

Viscose 6 418.68 246.83 279.90 232.75 220.86 301.00

Polyester 15 1182.73 792.00 879.61 750.11 653.54 870.54

Acrylic 8 153.00 97.12 81.23 79.51 72.08 95.22

Polypropylene 3 8.70 3.52 3.43 3.43 2.37 3.24

Total 32 1763.11 1139.47 1244.17 1065.80 948.85 1270.00

Filament Yarn

Viscose 7 80.10 53.99 51.07 42.42 32.02 42.86

Nylon # 11 32.00 32.25 27.62 28.07 22.40 29.66

Polyester ## 43 2013.49 1270.87 1420.14 1332.09 1081.48 1436.46

Polypropylene # 13 17.63 13.37 10.51 15.08 11.34 14.87

Total 74 2143.22 1370.48 1509.34 1417.66 1147.24 1523.85

P = Provisional# = The exclusive capacity of N.F.Y. and P.P.F.Y.## = The Capacity under Broad Banding Scheme has been indicated against P.F.Y.

Production (Mn. Kg)

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CHAPTER VI

THE JUTE AND JUTETEXTILES INDUSTRY


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The Jute industry occupies animportant place in the nationaleconomy. It is one of the major

industries in the eastern region, particularlyin West Bengal. Jute, the golden fibre,meets all the standards for 'safe' packagingin view of being a natural, renewable,biodegradable and eco-friendly product.

The total area under jute cultivation inIndia varies between 6.38 lakh hectaresto 10 lakh hectares, which is the highestin the world. This constitutes 0.6 per centof the total area sown during the Kharifcrop season. There is no significantchange in area under jute cultivationsince 1992-93 onwards.

Production of jute is concentrated in 36districts of West Bengal, Orissa, Bihar,Assam, Meghalaya, Tripura and AndhraPradesh. In the jute growing states, theshare of jute crop is nearly 1.4 per centof the total crop area. There are 33 odddistricts spanning West Bengal, Orissa,Bihar and Assam, which account for98.41 per cent area under jute cultivation,as well as 98.43 per cent of total raw juteproduction in the country. Nadia,Murshidabad, Purnea, Cooch Bihar, WestDinajpur, Jalpaiguri, North 24-Pargana,Hoogly and Malda districts in West Bengalaccount for 71 per cent of area under jutecultivation in India and 73.09 per cent oftotal raw jute production in the country.

There is always significant fluctuations inthe area under jute cultivation in India.The year-to-year fluctuations arise out ofthree factors namely, (a) fluctuation inrainfall during the sowing season, (b) theaverage raw jute prices realized duringthe previous jute season and (c) the

CHAPTER VI

THE JUTE AND JUTE TEXTILES INDUSTRY

returns realized from competing cropsduring the previous season. A significantarea under jute competes with Aus paddyduring the same season. Hence, year toyear fluctuations in the prices of juterelative to the prices of Aus paddy isdeclining and a cropping pattern in theform of jute followed by paddytransplantation has picked up. Under suchsituations, paddy and jute are notcompeting crops as they are not sownduring the same period on the same land.

Jute is an important cash crop, which isas an intercrop before paddytransplantation in most parts of the country.This has significant contribution to thefarm income of a large section of ruralhouseholds. Production of raw jute andmesta has witnessed a steady increasesince 1951-52. It was 13.2 lakh M.T. inJute year 1990-91 (July-June), which roseto 14.76 lakh M.T. in the Jute year 2008-09.

The Area under Jute cultivation and cropsize from 2001-02 onwards is given attable 6.1.

Globally, India is the largest producer andsecond largest exporter of jute goods andthis sector supports the livelihood of about40 lakh farm families, and provides directand indirect employment to 4 lakh workers.There are 78 Jute mills in the country. Ofthese 61 are in West Bengal, 3 each inBihar and Uttar Pradesh, 7 in AndhraPradesh, and one each in Assam, Orissa,Tripura and Chhattisgarh.

In recent years, the problems of juteindustry had multiplied and it wasstruggling hard for survival. The problems


78

were high labour cost, instability in theproduction of raw jute, demand erosion,obsolescence of machinery, uneconomicworking and competition from syntheticsector. All these factors/handicaps hadled to large scale sickness in the industry.This dismal scenario called for an urgentaction plan to remedy the situation. Suchmeasures included increase in productivityand up gradation of quality of raw jute andstimulation of additional demands for jutegoods, both in domestic and internationalmarkets.

Government have given priority to revivaland development of Jute Sector in itspolicy matrix. The aim is to develop newgeneration, cost competitive andperformance-effective jute and juteblended products through up gradation of

spinning and weaving technology toachieve higher rate of productimprovement, modernization anddiversification of product mix towards valueadded items. Besides, attention is directedtowards promotion of packaging materialfor conventional and new end uses withemphasis on biodegradable and eco-friendly attributes of jute as a natural fibreso that the jute industry does not dependprimarily on mandatory packaging.

JUTE POLICY

The Government announced the firstNational Jute Policy in April 2005 to facilitatethe Sector to attain and sustain apreeminent global standing in themanufacture and export of Jute productsby enabling the Jute Industry to build world

Table 6.1

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Crop size(Lakh MT) 16.2 19.8 16.2 13.5 15.3 18.0 17.82 14.76 16*

Area(Lakh Ha) 10.49 10.21 9.59 9.16 8.96 9.49 9.71 9.25 9.25*

*Estimated

Raw Jute Balance Sheet

(Lakh MT) 03-04 04-05 05-06 06-07 07-08 08-09 09-10

(A) SUPPLY

i) Opening stock 6.12 5.94 2.52 1.44 4.14 3.96 1.44

ii) Jute and Mesta crop 16.2 13.5 15.3 18 17.82 14.76 16.00

iii) Import 0.9 0.72 1.26 0.72 1.44 0.36 0.90

Total : 23.22 20.16 19.08 20.16 23.4 19.08 18.34

(B) DISTRIBUTION

iv) Mill consumption 15.84 16.2 16.2 14.58 17.82 16.02 16.00

v) Domestic/industrial 1.44 1.44 1.44 1.44 1.62 1.62 1.60consumption

vi) Export

Total : 17.28 17.64 17.64 16.02 19.44 17.64 17.60*

(C) CLOSING STOCK 5.94 2.52 1.44 4.14 3.96 1.44

* = Projected

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class state-of-the-art manufacturingcapabilities, and strengthen research anddevelopment activities, through public-private initiative, and ensure remunerativeprices to the farmers.

The National Jute Board Act, 2008 (12of 2009) received the assent of thePresident on the February 2009 andwas published in the Gazette of Indiaon February 12, 2009. The Act providesfor the establishment of the NationalJute Board for the development ofcultivation, manufacture and marketingof jute and jute products and for mattersconnected therewith and incidentalthereto.

MINIMUM SUPPORT PRICEOPERATIONS

The Commission for Agriculture Cost and

Practices (CACP), based on principal ofreasonable returns, recommends to theCentral Government the Minimum SupportPrice (MSP) for the standard TD-5 varietyat a specific location (Ex-Assam). Basedon the recommendations of CACP,Government of India announces MSP forraw jute (TD-5, EX-Assam) well before thesowing season. The table below depictsthe minimum support price fix by theGovernment for TD-5 variety 9Ex-Assam)since 1999-00 onwards. Based on theestandard MSP and guidelines issue by theCACP, the Jute Commissioner declareMSP for all the categories of raw jute andmesta for major jute growing districts in thecountry.

Minimum Support Price for TD-5 grade ofraw jute at Assam announced by theMinistry of Agriculture, Govt. of India from1999-2000 onwards are given at table 6.2.

Table 6.2

MSP of TD-5 %age increasegrade of raw jute at Assam (Rs./Qtl) over previous year

1999-00 750 15.4

2000-01 785 4.7

2001-02 810 3.2

2002-03 850 4.9

2003-04 860 1.2

2004-05 890 3.5

2005-06 910 2.2

2006-07 1,000 9.9

2007-08 1,055 5.5

2008-09 1,250 18.5

2009-10 1,375 10.0

Government procurement as a percentage of total production

Year (April-March) Total Production of Govt. Procurement PercentageIndustry (000 MT) (In 000 MT)

2005-06 1582.2 484 30.5%

2006-07 1356.3 388 28.6%

2007-08 1776.0 532 29.9%

2008-09 1633.7 621 38.0%


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JUTE CORPORATION OF INDIA (JCI)LTD., KOLKATA

The Jute Corporation of India Ltd. (JCI) isthe Official Agency of the Government ofIndia for implementing the policy ofproviding the Minimum Support Price tothe jute growers and to serve as astabilizing agency in the raw jute sector.The Corporation also undertakescommercial operation to generate profitfrom time to time. The Corporation hasstarted marketing of non-traditional juteproducts in collaboration with the JuteManufacturers Development Council(JMDC) through a Sales Emporium'SONALI' at Kolkata. The Corporationalso provides marketing research andacts as a decision-support-system in thefield of agriculture marketing.

JCI has 171 Department PurchaseCentres (DPCs) located in seven majorjute growing States viz., West Bengal,Assam, Meghalaya, Bihar, Orissa, AndhraPradesh and Tripura. The table belowshows the amount of raw jute procuredby the JCI from 2005-06 onwards. Theprocurement of jute by JCI under MSPoperations from 2005-06 onwards is givenat table 6.3.

The subsidy provided by the Governmentto JCI to maintain its infrastructure forMSP operations during the last four yearsis given at table 6.4.

Table 6.4

(Rs. in crore)

Year Amount

2006-07 28.00

2007-08 30.00

2008-09 36.59

2009-10 30.00

JUTE PACKAGING MATERIAL ACT

The rise of the jute industry in thesubcontinent is due to geographical aswell as historical factors. However, theadvent and discovery of mineral oil helpedexploit cheap HDPE and PP polyethylenesacks. Synthetic bags started replacingthe natural fibre packaging materials. Asa result, the jute industry got wiped outfrom Europe, America and the Far East.Today, it is survived in the Indiansubcontinent and to a lesser extent inBrazil. Even, in emerging economics likeChina, the industry has almost becomeextinct due to competition from thesynthetics. The synthetic packagingmaterial has cost advantage of 3:1 overjute. The other advantages of syntheticslike light weight and strength are alsoacting as hindrance for large scale use ofpackaging materials made from naturalfibres like jute and kenaf. Advent ofcontainerized bulk handling of grains andother commodities has also signaled the

Table 6.3

Year (April-March) Quantity Total Production(Lakh Bales of 180 kg each) (Lakh Bales of 180 kg each)

2005-06 1.41 85

2006-07 4.84 100

2007-08 7.66 97

2008-09 1.02 80

2009-10 (upto December) * 95

* Due to prices ruling above MSP no MSP operations have been carried out by JCI so far.

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death nail for the traditional packagingmaterials. The other traditional or classicaljute products like ropes, twines, carpetbacking cloth. Hessian, etc., have nevercontributed a significant percentage to theoverall demand for jute goods. Moreover,synthetics have replaced jute carpetbacking cloth and Hessian in many uses.It is only the compulsory packaging normsimposed through a statutory backing inIndia that has ensured reasonable demandfor jute goods in the world.

The Government have been providingprotection to the Jute Industry in the formof Jute Packaging Materials (Compulsoryuse in Packing Commodities) Act, 1987(JPM Act). This Act provides forcompulsory use of jute packaging materialin the supply and distribution of certaincommodities in the interests of productionof raw jute and jute packaging materialand of persons engaged in the productionthereof and for matters connectedtherewith. Presently only foodgrain andsugar are required to be compulsorypacked in jute bags.

In the current jute year, 2009-10 (July-June) 100% reservation has beenmandated for packaging of foodgarin andsugar in Jute Packaging Material. Thefollowing exemptions may be prescribedin the order under JPM Act:

(i) In case of any shortage or disruption

in supply of jute packaging material,Ministry of Textiles may, inconsultation with the user Ministriesconcerned, further relax theseprovisions upto a maximum of 20%of the production for foodrains andsugar respectively.

(ii) "Sugar fortified with vitamins" beexempted from the purview of thisorder.

(iii) Packaging for export of thecommodities be exempted.

(iv) Small Consumer packs of 25 kgsand below be exempted.

(v) Bulk Packaging of more than 100 kgbe exempted.

The degree of compulsory packagingintroduced for different commodities underthe JPM Act, 1987 are detailed at table6.5.

DEVELOPMENT AND REGULATORYORGANIZATIONS IN JUTE SECTOR

OFFICE OF JUTE COMMISSIONER

The office of Jute Commissioner is asubordinate office under Ministry ofTextiles. It is a regulatory body toimplement the Jute Packaging Materials(Compulsory Use in PackagingCommodities) Act, 1987 and provisions of

Table 6.5

Mandatory Jute Packing Orders issued under JPM Act, 1987

Order date Sugar Cement Fertilizer Foodgrains

01-08-2005 100% Nil Nil 100%

24-07-2006 100% Nil Nil 100%

09-08-2007 100% Nil Nil 100%

18-07-2008 100% Nil Nil 100%

01-09-2008 100% Nil Nil 100%

22-09-2009 100% Nil Nil 100%


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Jute and Jute Textiles Control Order,2000 (issued under Essential CommoditiesAct, 1955). Jute Commissioner is thelegal authority prescribed in these statutes.The Jute Commissioner attends toproduction, distribution for domesticconsumption and exports and developmentof jute as well as jute products.

The important functions of the JuteCommissioner office include:

● Implementation of the Jute PackagingMaterials (Compulsory Use inPackaging Commodities) Act, 1987.

● Issue Production Control Orders(PCO) under Jute & Jute TextilesControl Order, 2000, on jute mills forsupply of B.,Twill bags to Governmentagencies (DGS&D) and FCI.

● Fixation of MSP of raw jute fordifferent areas and grades on reportsof Commission on Agricultural Costsand Prices.

● Fixation of monthly price of B.TwillJute bags based on TariffCommission's Report.

● Review of projects undertaken byIndian Jute Industries ResearchAssociation (IJIRA) and other R&Dinstitutions and recommending forapproval by Ministry of Textiles.

● Supervision and coordination ofCentral Schemes for modernizationof jute industry, such as JuteTechnology Mission, TUFS(Technology Up-gradation FundScheme), etc.

● Assists in formulation as also revisionof productivity norms for jute industryto indicate norms of production,wastages, raw jute inputs, powerrequirement of jute products.

● To analyze trends in production,consumption, supplies, prices, etc of

raw jute and jute goods and totransmit reports/returns to differentGovernment bodies, RBI, Food andAgricultural Organisation (FAO),Rome, International Jute Study Group(IJSG), Dhaka.

● To prepare reports and notesperiodically on economic aspects ofthe Government policies, Schemesrelevant in jute sector, including fiscalincentives, monitoring performancesof implementing agencies.

● Collection, compilation andmaintenance of statistical dataregarding opening stocks domesticproduction and consumption, exports,imports, closing stocks and prices ofraw jute and jute goods andtransmission of consolidated reportsto Ministry of Textiles, CSO, RBIFAO, IJSG, etc.

EXPORT PERFORMANCE

The exports of Jute and Jute Productsduring current financial year 2009-10,upto October 2009, is estimated atRs. 4,893 million equivalent to about US$10 million, Value wise, the exports werelower by 30% in Indian Rupees and by36% in average US dollar terms ascompared to same period of 2008-09. Interms of quantity, cumulative exportsduring April-October 2009 is of the orderof 75,999 M.Ton, which is lower by 43%as compared to same period of AprilOctober, 2008.

This declining trend in the exports wascaused mainly by decline in exports ofHessian by 38% in quantity, Sacking by39%, in quantity, yarn by 52% JuteDiversified Products (JDP) by 30% invalue and others by 14% in quantity ascompared to April- October 2008.

IMPORT OF JUTE GOODS

During 2009-10(April to November) import

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of jute goods has increased by 47.7% to69.18 thousand MT against 46.84thousand MT in corresponding period oflast year. Import of raw-Jute has alsoincreased by 120.3% to 79.69 ThousandMT as against 36.16 thousand MT duringthe corresponding period of last year.

Trend in import of jute goods and raw juteis at table 6.6.

DEVELOPMENT AND REGULATORYORGANISATIONS IN JUTE SECTOR

JUTE MANUFACTURESDEVELOPMENT COUNCIL (JMDC)

The Jute Manufactures DevelopmentCouncil (JMDC) is a Statutory Body whichwas constituted in May, 1984 under theJMDC Act, 1983 to increase the efficiencyand productivity in the jute industry, andto finance activities for such developmentand for matters connected therewith.JMDC has been delegated all functionsrelated to Export Promotion in the jutesector and is mandated to perform othersuch activities in the domestic market ofjute sector as are performed by aCommodity Board. The activities of theCouncil are funded through grants fromthe proceeds of Cess on the productionof jute goods levied under the JuteManufactures Cess Act,1983, by theGovernment.

The Govt. of India, through GazetteNotification dated June 14, 2007,reconstituted the Jute ManufacturesDevelopment Council for a period of twoyears w.e.f. May 21, 2007.

NATIONAL CENTRE FOR JUTEDIVERSIFICATION (NCJD)

The National Centre for Jute Diversification(NCJD) was registered in January 1992,under the Societies Registration Act, 1860,and was established in June 1994, to givefocused attention to the diversification effortsin the jute sector. NCJD is required toconsolidate R&D efforts of various Institutesin jute and textiles and transfer these tothe entrepreneurs for commercialproduction. It co-ordinates with variousagencies and helps the entrepreneurs inarranging technical, financial, andinfrastructural support and encourages themto take up production and marketing of jutediversified products.

The Council of Governors of NCJD isreconstituted every two years. The lastCouncil was reconstituted on June 11,2007. It consists of 25 members, drawnfrom various sectors including JuteIndustry, Banking and the Government.NCJD is implementing schemes fordevelopment of the Jute-diversified sectorand to provide backward and forwardlinkages to new and budding

Table 6.6QTY : 000MT

Value : Rs./Crores

(April- 2005-2006 2006-2007 2007-2008 2008-2009 2009-10March) April-Nov.09

ITEM Qnty Value Qnty Value Qnty Value Qnty Value Qnty Value

Raw Jute 136.22 189.77 94.36 150.31 171.80 196.72 59.04 89.00 79.694 188.69.

Jute Products 77.02 175.56 60.93 171.63 57.69 138.09 70.94 202.99 69.180 256.35

Total 213.24 362.33 155.29 321.94 229.49 334.81 129.98 291.99 148.874 445.04

%age over 80% 126% -27% -11% 48% 4% -43% -13% - -last year


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entrepreneurs, NGOs and women'sgroups.

ORGANISATIONS SUPPORTED BY THEMINISTRY OF TEXTILES

INTERNATIONAL JUTE STUDY GROUP(IJSG)

The International Jute Study Group (IJSG)is an intergovernmental body set up underthe aegis of UNCTAD to function as theInternational Commodity Body (ICB) forJute, Kenaf and other Allied Fibres.

The IJSG was set-up to succeed theerstwhile International Jute Organisation(IJO), which entered into the liquidationmode in the year 2000. It formally enteredinto force on and from April 29, 2002 withthe completion of the process of DefinitiveAcceptance/Acceptance by Governmentsof Bangladesh, India, Switzerland and theEuropean Community representing its 27member countries and representing over60% jute trade (import and export). TheIJSG administers the provisions of thesuccessor Agreement on Jute and Juteproducts, 2002 adopted by the UnitedNations.

Since its inception, two officers of theGovernment of India have been elected asSecretary General of the Organisation.Shri T. Nandakumar, was elected as itsfirst Secretary-General in 2002 for threeyears.Subsequently Shri Sudripta Roy, wasselected as Secretary General,for threeyears from September 6, 2007.

INSTITUTE OF JUTE TECHNOLOGY(IJT), KOLKATA

The Institute of Jute Technology (IJT) wasestablished by Government of WestBengal as a Society registered underWest Bengal Societies Registration Act1961 for development of Technologistsfor the Jute Sector. The Institute offersfour year B.tech. Degree course in Jute

Technology, Jute & Fiber Technology andfour semester M.Tech Course in TechnicalTextiles Technology. It also offers Juniorlevel Supervisor course for the juteindustry.

IJT also conducts different short termtraining programmes for technical personaland workmen in the jute industry anddecentralised sector. It also conductsresearch under sponsorship of variousnational and International bodies.

IJT is funded by Ministry of TextilesGovernment of India through JMDC onthe basis of five yearly Memorandum ofUnderstanding (MOU).

CENTRAL RESEARCH INSTITUTE FORJUTE ALLIED FIBRES (CRIJAF) &NATIONAL INSTITUTE FOR RESEARCHIN JUTE AND FIBER TECHNOLOGY(NIRJFT)

CRIJAF & NIRJFT are registered societiespromoted by Indian Council for AgriculturalResearch (ICAR) under Ministry ofAgriculture. These institutes are primarilyengaged in research extension servicesand crop husbandry in respect of the juteplant. It conducts research and studiesfor improvement of yeld, quality anddevelopment of ecnomicaly viable andsustainable production technology andcropping system of jute and allied crops.

INCENTIVES TO JUTE SECTOR

(a) Extension of Duty Entitlement PassBook (DEPB) benefits to Juteproducts

The Director General of Foreign Tradew.e.f August 27, 2009, revised the DEPBrates of the jute products as in table 6.7

(b) Technology Upgradation FundScheme (TUFS)

The Scheme provides a focal point formodernization efforts through technology

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upgradation in the industry. The salientfeatures of the Scheme are as follows:

● Under the Technology UpgradationFund Scheme (TUFS), interestreimbursement of 5% on the interestactually charged by identified financialinstitutions on sanctioned projects ispermissible and technologyupgradation ordinarily meansinduction of state-of-the-art or nearstate-of-the-art technology;

● The Industrial Finance Corporationof India (IFCI) is the Nodal Agencyfor Jute sector; and

● Other than term loans, a number ofinstruments like Deferred PaymentGuarantee Schemes (DPG), lease

finance, non-convertible debentures,hire purchase scheme operated byNSIC, etc. have also been additionallycovered under the scheme.

IFCI has co-opted three State FinanceCorporations (SFCs), one State IndustrialDevelopment Corporations (SIDC), sevenCommercial Banks, three All IndiaFinancial Institutions (AIFIs) and EximBank, for financing the jute industry. TheTechnical Advisory Committee determinesthe eligibility for assistance under thescheme, which consist of the TextilesCommissioner as the convenor, JuteCommissioner and technical experts fromthe Textile Research associations (TRAs),industry and academic field covering thedifferent segments.

Table 6.7

Product Group: Miscellaneous Product Code: 90

S. Description DEPB Rate Value Cap forNo. (%) DEPB entitlement

24 Jute Soil Saver 5

25 Jute Yarn / Jute Twine 4

26 a. Hessian Cloth 5 Rs.40/Kgb. Hessian made-up 6 Rs.55/Kg

27 a. Sacking Cloth 6 Rs.30 / Kgb. Sacking made-up 6 Rs.40 / Kg

Product Group : Plastics Product Code : 63

S. Description DEPB Rate Value Cap forNo. (%) DEPB entitlement

1. Hessian Bags with LDPE/ 3 Rs.175/KgHDPE/PP liner/Laminationand with/without Zipper/Handle

2. Jute Bags with HDPE liner/ 3 Rs.175/Kg.LDPEliner/ Lamination with/without Zipper/Handle

3. PVC fabricated bags (made 5 –from PVC leather cloth backedjute and polypropelene)

4. Poly jute bags 3 –


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The following jute machinery is eligible forassistance under TUFS.

(a) Jute softening & carding, drawing,spinning and weaving

(b) Spinning and weaving/knitting of juteblends

(c) Jute-blended garment/made-upmanufacturing

(d) Processing of jute products

(e) Processing of jute-blended products

(f) Material handling

The technology levels are benchmarkedin terms of specified machinery for eachsector of the textiles industry. Themachinery with technology levels lowerthan that specified is not permitted forfunding under the TUF Scheme.

The progress of sanction anddisbursement under the TechnologyUpgradation Fund Scheme, as on March31, 2009, is at table 6.8.

(C) JUTE TECHNOLOGY MISSION(JTM)

The Government, on June 2, 2006,approved the Jute Technology Mission(JTM) with four mini-missions constituents(ref. table 6.9) The Department ofAgricultural Research & Education,Ministry of Agriculture, launched the MiniMission I of the JTM on November 9,2006. Department of Agriculture &Cooperation, Ministry of Agriculture,launched the Mini-Mission II of JTM onDecember 21, 2006. The Mini Mission III

& IV of JTM were launched by theMinistry of Textiles on February 6, 2007.

The Jute Technology Mission (JTM) willbe executed during the XIth five year Planwith an overall outlay of Rs.355.56 crore.The objectives of JTM are:

● To improve yield and quality of jutefibre;

● To strengthen existing infrastructurefor development and supply of qualityseeds;

● Improvement of quality of fibrethrough better methods of retting andextraction technologies;

● To increase the supply of quality rawmaterial to the jute industry atreasonable prices and to developefficient market linkage for raw jute;

● To modernize, technologicallyupgrade, improve productivity,diversify and develop human resourcefor the jute industry and

● To develop and commercialiseinnovative technology for diversifieduse of jute and allied fibres.

The Objectives and Outlay of JTM isgiven at table 6.9.

(d) NON PLAN SCHEMES OF JUTEMANUFACTURES DEVELOPMENTCOUNCIL (JMDC)

Jute Manufactures Development Council,by virtue of the JMDC Act 1983 and JuteManufactures Cess Act, 1983, receivescollections of Cess on Jute and is


Number of Cost of Loan Sought Loan approved Number of Loanapplication Project under TUFS as per eligibility beneficiaries to Disbursedreceived Under TUFS whom loan is

disbursed

46 456.43 348.29 343.29 46 333.49

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mandated to undertake the followingactivities:

● Facilitate development work relatedto jute agriculture with respect toimprovement of quality and increasein the yield of jute.

● Promotes of better marketing andsale of jute.

● Improves productivity and efficiencyof the jute industry.

● Promotes standardization of jutemanufactures.

● Market development.

● Sponsors scientific, technological andeconomic research.

● Collects and disseminatiesinformation to all the stakeholders injute — Government, Industry,Growers, Exporters.

SCHEMES OF JUTE TECHNOLOGYMISSION

MINI MISSION - III

1. Development of Market Yard

Under this scheme, it is proposed to

construct 10 marketing yards in major jutegrowing districts in the Country.Approximately, the arrival of raw jute inthese market yard should be 10,000 MTand above per annum. The estimatedcost of these jute specific market yards isRs.1 crore. The scheme would beproviding 60% funding and APMCs wouldcontribute balance 40% of the total costbesides providing/acquiring land for thepurpose of establishment of the marketyards. Out of 10 market yards to bedeveloped under this Scheme work hasbeen completed in 2 market yards,(1 inWB and 1 in Assam) and inaugareted on30.8.09 & 31.8.09 respectively.Construction in 6 market Yards in WestBengal, 3 in Assam and 2 in Bihar are inprogress.

2. Construction of JCI DepartmentalPurchase Centres

It is proposed to construct 35 such facilitiesunder the aegis of JCI in the major jutegrowing States where there is standingneed for the same. The cost of constructionis estimated at Rs.1 crore per DPCincluding cost of acquisition of land. The

Table 6.9

Objectives and Outlay of JTM

Mini Missions Objectives Executing ProposedMinistry outlay (Rs.

in crores)

Mini Mission - I To strengthen agricultural research Ministry of 7.06and technology achievements Agriculture

Mini Mission - II Development/extension of raw jute Ministry of 49.90and transfer of improved technology Agriculture

Mini Mission - III To develop efficient market linkages Ministry of 56.60for raw jute Textiles

Mini Mission - IV To modernize, technologically Ministry of 242.00upgrade, improve productivity, Textilesdiversify and develop humanresource for the jute industry.

TOTAL 355.56


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entire cost will be borne by Governmentof India. The identification of land forconstruction of 20 DPCs has alreadybeen completed. Out of which JCI has gotpossession of land at 18 places(11 inWB,6 in Assam,2 in Orissa and 1 inBihar) Construction of 3 DPCs in WestBengal is already completed out of which1 has been inaugurated on 24.12.09..

3. Construction of Retting Tank

Retting is the most important part of jutecultivation to achieve quality of fibre ,non-availability of adequate retting waterposes hindrance in production of qualityoutput. It is proposed to construct RettingTanks to facilitate retting with atleast onein each jute producing district of India inphased manner. In the next five years,50 retting tanks are proposed to beconstructed in staggered manner toprovide retting water to the jute growers.It can also be utilized for demonstrationand adoption of new retting methods likeBiotechnological Retting Method by useof inoculum in order to improve thequality of jute fibre as well as reducingretting period. The 90% of the cost ofconstruction of retting tank to besponsored under this scheme, and theremaining 10% is to be contributed bythe beneficiary. The work on 18 rettingtanks out of total 50 retting tanks hasalready started (11 in West Bengal,1 inBihar, and 6 in Assam)

4. Demonstration of RettingTechnology and Training to JuteGrowers

This scheme will help to upgrade thequality of jute produced and take care ofchanging demand of the industry . Underthis scheme, a programme spread overfive years ,has been formulated thatmaximum number of jute growers can bebrought under this training programme,The local Panchayats and StateAgricultural Departments will also be

involved for successful implementation.The training programmes are beingconducted through JCI DPCs in the jutegrowing districts of India. 120demonstrations have already done tilldate against the target of 200demonstration during the plan period.

5. Development of Ribboners

The infrastructure of JCI will be utilizedto distribute the developed machines tojute growers. For effectiveimplementation of the project, extensivedemonstration before the growers wouldbe organised to popularize the RibbonerMachine and to apprise them about thebenefit of use of the same. Projects fordevelopment of High Speed Ribbonerswere awarded to Jodhpur University(JU) and CRIJAF. JU has submitted aproposal(costing Rs.58 lakh) to develop2 more High Speed Ribboner Machine(Phase II) before the next jute rettingseason. These machines will be placedin the field for demonstration andpopularize the scheme.

MINI MISSION - IV

A Scheme for Modernisation ofOrganised Jute Mills

1. Training of Workers & Supervisors

Under this scheme, training programmesfor the supervisors and workers forupdating their knowledge and improvetheir skill in both processing stages andmaintenance are organised in various jutemills through the Institute of JuteTechnology (IJT). Training manuals andmodules have been developed andappropriate Human ResourceDevelopment (HRD) capsules designedand implemented under the programme.2556 programmes will be conduced under221 modules, and 19,750 workers will betrained over a span of five years. HRDintervention will improve the skill and

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update the knowledge of workers to matchwith the changed situation/environment.

2. Machinery Development

The main bottleneck for modernization ofjute industry is lack of availability of newtechnology machines for jute fibre. Underthe scheme, Research and Developmentefforts as well as the transfer of technologyat each stage of processing is to beintensified and appropriate activities takenup.

For the development of new technologyand high yielding machinery, a MachineryDevelopment Centre (CJMD) would beestablished through PPP model. Inaddition, specific machinery developmentprojects are being funded @ 75%, to betaken up through the proposed CJMD,indigenous machinery manufacturers aswell as research institutions which havethe credibility and required infrastructure.The selection of Private Partner andestablishment of SPV has been completedand the establishment of CJMD has beencompleted. Under the scheme 5 machinesinvolved in core process of jute goodsproduction have been identified fordevelopment and the development of 3machinery have already commenced.

3. Productivity Improvement & TQMFacilitation

This scheme provides an integrated andcohesive approach for supporting JuteMachinery Development Programmesunder Mini-Mission IV of JTM, Followingstudies are planned in this scheme:

● Total Quality Management

● Energy Management

● Waste Management

● Maintenance Management

● Work Study & Ergonomics

All the studies will be conducted in anintegrated manner and such studies willbe undertaken initially in six jute millscovering geographical spread and differentgradation of the mills. Five studies havebeen commissioned on TQM, Energymanagement Waste Management,Maintenance management and Workstudy & Ergonomic Study. 4 reputedorganizations have been selected throughbidding process for undertaking studies,diagnosis, recommendations,implementation and training. Inceptionreports were submitted for the 6 mills bythe 4 agencies. Diagnostic studies havecommenced.

4. Acquisition of Machinery and Plant(Subsidy Component)

Under this scheme, the jute industry isbeing supported to adopt new machinery,etc. The adoption of new machinery willenable the Indian Jute Industry to cater tothe demand of global market in terms ofcost and quality in the coming years.

Support will be provided @ 20% CapitalSubsidy. The entrepreneurs are free tochoose between this Scheme or theinterest subsidy scheme under the TUFS.

The maximum subsidy available in thisscheme is Rs.75 lakh in case of existingmills, which may be enhanced to Rs.1crore for North Eastern States and Rs.1crore for new mills. Under the scheme, 89cases have been settled so far andsubsidy of Rs.1849.10 lakh has beenreleased facilitating investment ofRs.10,055.22 lakh in the jute industry formodernization and upgradation.

B. Scheme for Promotion of JuteDiversification

1. Design & Development of JuteDiversified Products

NCJD has been operating a scheme on


90

design and product development of jutediversified products for the last few years.It has been observed that to make juteproducts more acceptable to consumersin different sectors, it is essential toincorporate innovative designs and alsoadd newer product range for diverseapplication. It is contemplated that it wouldbe relevant to explore the characteristicsof basic jute products, as that will helpdevelopment of new products and newapplication areas for jute. The schemealso envisages to explore the use of juteyarn in Handloom sector, where the scopeof developing new design for fabric andother woven products is very high. Thescheme covers areas like designing &developing jute fabric on handloom, fordiversification and end uses. Similarly,research on jute composites could openup new application areas in the field ofpackaging like boxes, containers and alsoas a cushioning media. Altogether, 19R&D studies have been commissioned ata cost of Rs.911.76 lakh for productdevelopment, quality improvement andpromotion of non-conventional value addedjute diversified products.

2. Scheme for Helping The NGOsand Women Self Help Groups(WSHGs)

NCJDs assistance to voluntaryOrganisation has been very effective.These organizations and small and tinyentrepreneurs could effectively contributeto further jute activity, especially in ruralareas. Unemployed youth and womenfolk could very conveniently adapt tosuch simple technologies that are

required to produce jute-diversifiedproducts (JDP). The technologydissemination activity is taken up insuch a manner so as to make it moreeffective by engaging technicalpersonnel. In addition the schemeincludes a provision for matching financefor machinery assistance. Suchassistance will create an environment,which will be conducive to the growth ofvoluntary sector. 22 ClustersDevelopment Agencies(CDAs) havebeen identified in 80 clusters in 40districts of 11 States. The number ofproductive WSHGs is 464 and 5320Artisans have been trained .In addition88 machinery has been distributed.

3. Scheme for Promotion of JuteDiversification

The old schemes of the NCJD viz., JuteService Centre Scheme , Jute RawMaterial Bank Scheme, Design/ ProductDevelopment Scheme, Market SupportScheme, Jute Entrepreneur AssistanceScheme and the Schemes for the NorthEast Region have been merged andrenamed as the "Scheme for Promotionof Jute Diversified Products".

The objective of the scheme is to establishthe competitive environmental advantageof jute as well as boost the sale of jutegoods by 50% globally and increase theshare of JDPs to around 20% during theJTM period. In order to achieve the objectiveas given in the National Jute Policy, 2005an integrated approach is envisaged andconceptualized with emphasis on keyelements given at table 6.10.

Table 6.10

Developmental Schemes Jute Service Centre Scheme

Input Related Scheme Jute Raw Material Bank Scheme

Marketing Schemes Market Promotion Schemes and Campaignsfor Jute Diversified Products

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29 Jute Service Centres and 7 JuteService Extension Centres have been setup to help the newly developedentrepreneurs. Total 28 Jute Raw MaterialBanks have been set up to provide rawmaterial support to the entrepreneursengaged in the jute diversification activitiesin remote areas. 12000 Artisans havebeen trained and 262 JDP units havebeen developed.862 MT of raw materialshave been sold through JRMBs.The no.of registered beneficiary artisans is 5632.

4. Scheme for Commercialisation ofTechnology

Under this scheme, NCJD would take uppromotion of commercialization oftechnologies by interacting with thedifferent State's Department and the DICs,holding of different TechnologicalConferences around the country,counseling and interactive programme forparticipation with different stakeholders,holding products specific workshops inpotential areas, technologyexperimentation and machinery andprocess development.

Presently this scheme has been kept inabeyance to be subsequently in place,associated with Scheme No.6.2(Machinery Development) - withdevelopment of identified jute machineryand No.7.1 (Design & Development ofJDPs) - with the completion of the R&Dprojects.

5. Scheme for Setting-up of JuteParks for the Diversified Sector

This scheme aims to provide entrepreneurswith support facilities similar to thoseavailable in Export Processing Zones. Theaim of the Scheme is to attractentrepreneurs / units investing in newsmall jute mills / spinning units / weavingunits with a view to generate employment/ upgrade technology to optimize exportsbased on value addition. The schemewould be executed through PPP mode onthe lines of SITP scheme of Ministry ofTextiles. The subsidy available under thisscheme for establishment of Jute park ison 60:40 pattern ( Developer : Govt.) Thefunding for North East region may beincreased to 10:90 (Developer : Govt.)subject to a maximum of Rs 7.5 Crore forNE states and Rs. 5 Crore for otherstates.NCJD has selected 5 Consultantsas project consultants,whom the promotoresof the proposed jute parks can engage.7proposals have received in-principleapproval and Detailed Project Reportswere approved. One more application isunder consideration.

C. Programmes for North East Region

10% of the Jute Technology Missionbudget has been reserved for executingthe JTM schemes in the North EastRegion covering Assam, ArunachalPradesh, Meghalaya, Manipur, Mizoram,Nagaland, Sikkim and Tripura.


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CHAPTER VII

THE SERICULTURE & SILKTEXTILES INDUSTRY


94

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INTRODUCTION

India continues to be the Second largestproducer of silk in the World. Amongthe four varieties of silk produced,

Mulberry accounts for 85% (15610 MT),Eri 11.1% (2038 MT), Tasar 3.3% (603MT) and Muga 0.6% (119MT) of the totalraw silk production in the country.

Sericulture is an important labour-intensiveand agro-based cottage industry, providinggainful occupation to around 6.3 millionpersons in rural and semi-urban areas inIndia. Of these, a sizeable number ofworkers belong to the economically weakersections of society. There is substantial

CHAPTER VII

THE SERICULTURE & SILK TEXTILESINDUSTRY

involvement of women in this Industry.

PHYSICAL PROGRESS

The physical progress is given at table7.1.

BUDGET

For the year 2009-10, a provision of Rs185.40 Crore under Plan and Rs 213.34Crore under Non-plan has been made forCSB.

SILK EXPORTS

Silk Export Earnings during XI Plan period(2007-08, 2008-09 and 2009-10 (up toApril-May, 2009) are given at table 7.2.

Table 7.1

Sl. Particulars 2008-09 2009-10 2009-10No. Achievement Achievement Anticipated

(Apr-Oct)

I Area under Mulberry (Lakh Hectares) 1.78 1.85 1.96

II Production of Raw silk (M.Tons) 18370 9902 18800

III Employment (Lakh Persons) 63.10 — 64.00

Table 7.2

(Value: In Crore Rs.)

Sl. Items of Export 2007-08 2008-09 2009-10 (P)No. (Apr-May)

1 Natural Silk Yarn Fabrics 1897.06 2127.72 213.23Made-ups

2 Readymade Garments 746.55 986.57 201.36

3 Silk Carpets 72.11 58.67 7.36

4 Silk waste 12.15 5.23 0.10

TOTAL 2727.87 3178.19 422.05


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CENTRAL SILK BOARD

Central Silk Board is a statutory body,under the administrative control of theMinistry of Textiles, Govt. of India.Established in 1948, by an Act ofParliament, (Act No.LXI of 1948), theCSB has been entrusted with the overallresponsibility of developing silk industrycovering the full gamut of sericultureactivities in the country from developmentof food plants to silk cocoons for productionof silk yarn including formation of policiesgoverning Import & Export of silk. CSB isbasically an R&D Organization. One ofthe important activities of the CSB isundertaking, assisting and encouragingscientific, technological and economicresearch in the Silk Sector. Theprogrammes for the development of thesericulture and silk textiles industry areprimarily formulated and implemented bythe State Sericulture/ Textile Departments.However, the Central Silk Boardsupplements the efforts of the States byproviding necessary support for researchand development, extension and trainingthrough its countrywide network of centres.Besides, the Central Silk Board organizeproduction and supply of quality silkwormseeds, mulberry cuttings/saplings, etc.,and also implements various sericultureprojects directly, as well as jointly, withthe State Sericulture Departments. Also,Central Silk Board collects and compilessericultural statistics both at National andGlobal level.

PROJECT APPROACH: PACKAGINGOF SCHEMES IN XI PLAN

CATALYTIC DEVELOPMENTPROGRAMME (CDP)

CSB, being a Science and Technology(S&T) based Research and Developmentorganization, the main thrust has been onResearch based activities. The Board iscovering areas like Research andTechnology Development, Seed

maintenance & production and,Development of Sericulture & Silk Industry.As a part of its developmental initiatives,CSB has implemented CatalyticDevelopment Programme (CDP) as aCentrally Sponsored Scheme during IX &X Plan period, in association withconcerned State Sericulture Departmentsand other implementing agencies tosupplement their efforts in achieving thegoals set for the Plan period.

The IX plan focussed largely on supportingstakeholders in Sericulture sector, rangingfrom food plant cultivation to marketing ofproducts, while in X plan (2002-07), thefocus of CDP was widened by creatinggreater opportunities for gainfulemployment in rural areas through thespread of scientific sericultural practicesand by promoting modernization andquality up-gradation of the industry. Duringthe X Plan, a total amount of Rs.264.34crores was spent towards implementationof CDP.

Emphasis for the XI Plan under theSericulture sector will be on two issues:

● Development of Sericulture, whichhas many facets - Increase in areaunder food plants of silkworms,enhance production, productivity andquality.

● Poverty alleviation, generation ofemployment and income, livelihoodsecurity and also increase in familyincome.

During XI Plan period it is targeted toproduce 26,000 MTs of both mulberry andnon-mulberry silks (which includesproduction of 5000 MTs of superior qualitybivoltine raw silk) and generate acumulative employment of 77.04 lakhpersons by end of XI Plan. Consideringthe potential for expansion of sericulturein the country and with a view to provide/ improve livelihoods besides increasingincome of the poor people in rural areas,

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it is also envisaged to increase the areaunder mulberry food plants from 1.92 lakhha. to 2.18 lakh ha. by end of XI Plan.

Keeping in view the importance ofproduction of superior quality of bivoltinesilk to reduce the import cost, greaterthrust to Vanya silk and creating moreemployment in rural areas throughsericulture practices etc., implementationof Catalytic Development Programme hasbeen continued during the XI Plan withmodifications along with certain newinitiatives and some more inputs.

The total outlay for implementation of theCDP during the XI Plan is pegged atRs.1476.24 crores of which CSB's shareis Rs.661.62 crores. The entire expenditureis of non-recurring nature. Of the approvedallocation of Rs.81.01 crores and Rs.76.73crores for the years 2007-08 and 2008-09, the Central Silk Board considered theproposals of States based on therecommendations of the Apex MonitoringCommittee and released/spent a totalamount of Rs.80.82 crores and Rs.90.74crores respectively towards implementationof various schemes / components underCDP.

During the current year 2009-10, asagainst the sanctioned amount of Rs.75.57crores by Govt. of India for implementationof CDP and as per the recommendationsof the Apex Monitoring Committee, a sumof Rs.44.06 crores has been released /spent towards implementation of variousschemes / components under CDP up tothe end of October, 2009.

RESEARCH & DEVELOPMENT/TRANSFER OF TECHNOLOGY/TRAINING / IT INITIATIVE

RESEARCH AND DEVELOPMENT

The main Research & Training Institute ofthe CSB provide R&D and Training supportfor the development of sericulture. The

Institutes at Mysore (Karnataka)Berhampore (West Bengal) and Pampore(J&K) deals with mulberry sericulture.One at Ranchi (Jharkhand) deals withTasar culture. The institute established atLadoigarh, Jorhat (Assam) deals withMuga and eri-culture. Regional SericultureResearch Station (RSRS / RTRS) formulberry and non mulberry has beenfunctioning for the dissemination ofresearch findings and for tackling theregional field issues of the industry.Besides, a network of Research ExtensionCentres (RECs) & its sub units for mulberryand non mulberry are also functioning toprovide extension support to sericulturists.In order to provide R&D support in postcocoon sector, the Board has establisheda Central Silk Technological ResearchInstitute (CSTRI) at Bangalore. In addition,the CSB has also set up a Silkworm SeedTechnology Laboratory, (SSTL) inBangalore (Karnataka), a CentralSericultural Germplasm Resource Centre(CSGRC) at Hosur (Tamil Nadu) and aSeri-Biotech Research Laboratory (SBRL)at Bangalore.

During 2008-09, 205 research projectswere implemented which includes newresearch projects approved by the RAC ofthe respective institute. Against a target of89 research projects scheduled to beconcluded, 78 projects were concludedand the remaining 11 projects wereextended for 2009-10.

During 2009-10, 117 Research projectsare continued and 42 new Researchprojects will be initiated. Against a targetof 50 Research Projects scheduled to becompleted, 16 Projects have already beenconcluded (upto October, 2009) andremaining 34 Projects will be concludedby March, 2010.

TRANSFER OF TECHNOLOGIES ANDEXTENSION ACTIVITIES

● Under Cluster Promotion Programme


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conducted in co-ordination withRSRSs / RECs of CSB andconcerned State DOSs 14 clusterswere set up in the States ofKarnataka, Andhra Pradesh, TamilNadu and Maharashtra.

● In Karnataka, 8,53,980 disease freelayings (dfls) of bivoltine hybridsbrushed 3483 farmers' and anaverage yield of 60.50 kg/100 dfls.was obtained. Under "Establishmentof farmers field schools (FFS)"scheme, benchmark survey of 25farmers for each school was takenup.

● 17 lead farmers from these FFSwere trained. Two new FFS wereestablished. Conducted 123 Groupdiscussions, 16 Exhibitions, 25Demonstration of technologies, 22Field days and 89 Awarenessprogrammes. Under "Transfer ofTechnology (TOT)" scheme ninetechnologies were implemented andare under progress.

● In West Bengal, Fifteen farmers werecovered and 13850 dfls of M x Breared. Cocoon yield ranged between42.2 kg and 44.8 kg/100 dfls againstcontrol (35.8 kg and 38.3 kg/100dfls) with a gain of 8.7% over control.

TRAINING

The CSB organizes a number of trainingprogrammes at its Research andTraining Institutes. The total number ofpersons trained during 2008-09 and 2009-10 (up to Oct. 09) is given at table 7.3.

I.T. INITIATIVES

Under the IT initiatives during XI Plan, CSBshall concentrate on software developmentby using contemporary technologies andnetworking of various cocoon and silkmarkets with free flow of information on theavailability of the raw material, markettrends, etc on its websites. All informationrequired for traders, buyers, and otherstakeholders shall be hosted on the webto their ease the interactive interface of thewebsite. In addition, facilities like on-linesubscription to scientific e-journals (whichwill be available for access to entire CSBscientists), on-line submission of researchprogress reports, video conferencingamong Research Institutes of CSB, etc.will be created. Work is in progress tosetup centralized server at CSB complexand host the CSB website on 24x7 basisat CSB complex and to develop acentralized MIS application. An expenditureof Rs. 5.09 lakh will be incurred up toMarch 2010.

Table 7.3

Sl. Particulars 2008-09 2009-10 No. of persons CategoryNo. (up to Oct. anticipated to

2009) be trained bythe end of

2009-10

1 Structured Course 41 34 34 DOS/NGO

2 Capsule Course 442 63 450 CSB/DOS/NGO

3 Adhoc Training 2298 643 2500 Students/Staff/Entrepreneurs/Farmers

TOTAL 2781 740 2984

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SEED ORGANISATION & HRD

● SILKWORM SEED PRODUCTIONAND SUPPLY

Under National Silkworm SeedOrganization (NSSO) a network of18 Basic Seed Farms (BSF) produceand supply the basic seed forproduction of commercial silkwormseed in the seed production centresfunctioning under CSB and StateDepartments. 20 Silkworm SeedProduction Centres (SSPCs) arefunctioning under NSSO in differentStates to support the industry. Duringthe year 2009-10, these commercialSSPCs have produced 136.79 lakhDisease Free Layings (DFLs) againstthe target of 297.62 (upto October,2009) and achieved 46%. Emphasiswas given towards production ofquality dfls by adopting QualityManagement System in seed

production under ISO 9001:2000certification in eight SSPCs. During2009-10 six more SSPCs are to becovered under ISO certification.

On the tasar side, the CSB hasestablished 21 Basic SeedMultiplication & Training Centres(BSM&TC) and one Central TasarSilkworm Seed Station (CTSSS) forsupply of tropical tasar basic seed &1 oak tasar grainage and 3 REC-Cum-BSM&TCs for supply of oaktasar basic seed. Under muga sector,8 Basic Seed Farms and 1 SilkwormSeed Production Centre arefunctioning. For production and supplyof eri seed, CSB has established 5Silkworm Seed Production Centres.

● HRD

CSB administration includes BoardSecretariat, Regional Offices and

The Union Minister of Textiles, Thiru Dayanidhi Maran going round at the "SILK PARADISE"exhibition of Indian Silk in New Delhi on July 15, 2009.


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Regional Development Offices,Certification Centres etc. The BoardSecretariat of CSB monitors theimplementation of various schemesand coordinates with Ministry andStates in implementation of variousprojects in sericulture sector. SeveralNational meetings, Board meetingsand Review meetings and other highlevel meetings are being carried outby the Board Secretariat.

SCHEMES & PROJECTS BEINGIMPLEMENTED / PROPOSED TO BEIMPLEMENTED BY CSB AND STATESWITH EXTERNAL / INTERNALASSISTANCE FOR DEVELOPMENT OFSERICULTURE:

A. EXTERNAL ASSISTANCE

1. PROJECT FOR ORGANIZING IIICOUNTRY TRAININGPROGRAMME ON BIVOLTINESERICULTURE TECHNOLOGYASSISTED BY JICA

The Japan International CooperationAgency (JICA) and the Central SilkBoard (CSB) have jointly worked intechnical cooperation in the area ofdevelopment and popularization ofBivoltine Sericulture Technologysuited to Indian agro-climaticconditions for past fifteen years.

In this cooperative endeavour, a goodnumber of bivoltine silkworm breedshave been developed along with acomprehensive Bivoltine SericultureTechnology package and suitablemodel for Extension, Seed productionsystem besides, generating well-trained manpower for sustaineddevelopment of Bivoltine silk in thecountry. The success of the JICAProjects encouraged the farmers,reelers and the Sericulturalorganizations for taking up large-scale promotion of bivoltine silk mainlyin 3 Southern States.

Encouraged by the success of thecooperation programme, JICA hascome up for assisting a third countrytraining programme for some of theAfro-Asian countries to disseminatethe knowledge and skills on bivoltinesericulture technologies to these silkproducing countries. A Record ofDiscussions was signed by JICA andMinistry of Textiles, Govt. of India on15th January, 2008 for organizingThird Country Training Programmeon "Bivoltine Sericulture Technology"for the participants of Afro-AsianCountries, viz., Bangladesh,Cambodia, Ethiopia, Ghana,Indonesia, Kenya, Laos, Madagascar,Nepal, Nigeria, Pakistan, Philippines,Sri Lanka, Vietnam and Uganda.

As per the programme, Central SilkBoard has organized training for 11officers in 'Administrative Course' and15 in 'Technical Course' nominatedfrom 7 different countries during 2008-09.

Encouraged by the success of thisTraining programme and requestsreceived from the participatingcountries, JICA has approvedimplementation of this trainingprogramme for three more years from2009-10 with increase in in-takecapacity to 30 participants (15 each inAdministrative and Technical Courses)per year. The Record Notes ofDiscussions is being finalised and willbe executed shortly. The trainingprogramme is scheduled to commencefrom 1st week of January, 2010.

2. MANIPUR SERICULTUREPROJECT (PHASE-I) ASSISTED BYJBIC

The Govt. of Manipur is implementingthe project with financial assistancefrom JBIC, Japan over a period of 10years at a total cost of Rs.490.59Crore.

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The first phase of the project wascompleted during March, 2009(Technical target & Civilinfrastructure) with a total cost of154.99 Crores of which JBICassistance was Rs.136.66 Crore(3962 Million Yen) and State shareRs.18.33 Crore. The revised proposalfor the first phase of the projectenvisages raising of 1700 Ha ofmulberry plantation, construction of60-100 Chawki Rearing Centres, OneMulberry Industrial Grainage, One P-2 Station, One Sericulture TrainingSchool and One Post CocoonTechnology Training-cum-ProductionCentre.

B. INTERNAL ASSISTANCE

1. SPECIAL SGSY PROJECTS FORDEVELOPMENT OF TASAR ANDERI CULTURE IN BIHAR ANDJHARKHAND

Two special SGSY Projects fordevelopment of Tasar and Eri cultureare being implemented in the Statesof Bihar and Jharkhand with financialassistance from Ministry of RuralDevelopment, Govt. of India from theyear 2003-04. Central Silk Board isthe Executing Agency, which closelymonitors the implementation andextends the necessary technologicalsupport through units of CTR&TI,Ranchi on pre-cocoon aspects,BTSSO, Bilaspur for seedrequirement and CSTRI, Bangaloreon post cocoon activities. CSB alsomeets the entire requirement of basicseed through the BSM&TCs in thetwo States. The projects are beingimplemented in both the States byProfessional Assistance forDevelopment Action (PRADAN), anNGO.

Development of Tasar andEriculture in Bihar (2003-07) : The

project is being implemented in Bankadistrict of the State. The project isextended till 31st March 2010.

Till March 2009, an amount ofRs.663.041 lakh was released underthe project to PRADAN & CSB unitsin the project area, which includesRs.495.426 lakh from MORD andRs.167.615 lakh from CSB, excludingproject administrative expenses spentby CSB for its personnel involved inproject execution.

Development of Tasar and Ericulture in Jharkhand-Phase I (2003-05): The project is being implementedin the districts like Giridih, Deoghar,Dumka, Pakour, Godda, Sahebganj,Jamtara, Ranchi, East Singhbhum,West Singhbhum, Saraikela,Simdega, Hazaribagh and Gumla ofJharkhand. One new BSM&TC wasestablished at Deoghar in the Stateand 3 existing BSM&TCs atKathikund, Kharsawan and Madhupurwere strengthened. The project wasextended upto March, 2009. Thepending activities of differentcomponents under the project areunder completion.

Till March 2009, Rs. 880.671 lakhhave been released under the projectto PRADAN & CSB units in theproject area, which includes Rs.653.179 lakh from MORD andRs.227.581 lakh from CSB, excludingnominal project administrativeexpenses spent by CSB for itspersonnel involved in projectexecution.

2. SPECIAL SGSY PROJECT ONDEVELOPMENT OF MULBERRYSERICULTURE IN LAI, MARA ANDCHAKMA AUTONOMOUSDISTRICT COUNCILS (ADCs) OFMIZORAM

Three Projects prepared by CSB for


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Lai, Mara and Chakma ADCs ofMizoram State at a total cost ofRs.5100.00 lakh @ Rs.1700.00 lakh/ ADC are being implemented byDOS, Govt. of Mizoram with financialassistance from MORD and CSB fora period of five years in two phasesfrom 2002-03. The first Phase of allthe three projects started during2002-03 at Rs.512.00 lakh each.MORD has released funds to a tuneof Rs.701.45 lakh for three ADCsand Rs.219.60 lakh released byCSB as its share under CDP (up toOct, 08).

3. SPECIAL SGSY PROJECT FORDEVELOPMENT OF MULBERRYSERICULTURE IN UTTARAKHAND

The Ministry of Rural Development,Government of India has sanctioneda project entitled "A Special SGSYProject for Development of MulberrySericulture in Uttarakhand" at a totalcost of Rs.757.84 lakh to beimplemented by Directorate ofSericulture, Govt. of Uttarakhand overa period of 5 years from 2007-08 to2011-12. The funds are shared byMORD (Rs.417.009 lakh) and CSB/State (Rs.153.899 lakh). Bank creditis Rs.131.205 lakh and the beneficiarycontribution is Rs.55.727 lakh.Central Silk Board is the Executingand Coordinating Agency. Due torevision in the cost of RH, the Projectcost has been restructured toRs.917.840 lakh by revising CSB/State share at Rs.378.899 lakh, BankCredit Rs.76.205 lakh and theBeneficiary Contribution beingRs.45.727 lakh without any changein MORD Share.

Till October, 2009, an amount of Rs.227.063 lakh including MORD shareof Rs.103.566 lakh and CSB shareof Rs.123.497 lakh has been releasedunder the project.

C. PROJECTS WITH ASSISTANCEUNDER CATALYTICDEVELOPMENT PROGRAMME(CDP)

1. MICRO PROJECT FORDEVELOPMENT OF OAK TASARIN MANIPUR (PHASE-II)

The second phase of "Micro Projectfor Development of Oak Tasar inManipur" was initiated in the year2007-08 for a period of five yearscoinciding with XI Plan period at atotal cost of Rs. 387.368 lakh withCSB, State and Beneficiary sharing@ Rs. 227.421, Rs 64.203 and Rs.87.429 lakh respectively and thebalance is credit from financialinstitutions. The project is beingimplemented by Manipur StateSericulture Cooperative FederationLtd., (MSSCF). CSB has released itsshare of Rs. 44.531 lakh (up toOctober,09) under CDP Schemes.

2. MICRO PROJECT FORDEVELOPMENT OF OAK TASARIN MIZORAM

A "Micro Project for Developmentof Oak Tasar in Mizoram" wasinitiated with a total cost of Rs94.682 lakh with CSB, State andBeneficiary sharing @ Rs.71.542,Rs.18.746 and Rs.2.225 lakhrespectively along with a credit ofRs.2.168 lakh. The project is beingimplemented in Tlangsam, Zotlangand Zote villages of Champai districtduring 2008-09 to 2011-12 by DOS,Govt. of Mizoram, coinciding with XIPlan period. The project coverssupport to 12 adopted seed rearers,200 Oak Tasar Rearers,strengthening of 01 Oak TasarGrainage, establishment of 01community reeling & spinning Centre,equipment and training support to 16reelers, 6 spinners. The project

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envisages production of 27.50 lakhcocoons, 611 kg reeled silk, 236.50Kg spun silk with an employmentgeneration of 611 man years/year atthe end of the project period.

CSB has released its share ofRs.12.19 lakh (up to October,09)under CDP Schemes to supportTasar rearers for equipments,training, extension & publicity,strengthening of seed infrastructureand market support for cocoons etcto achieve the targets. Project isunder progress.

3. INCOME ENHANCEMENT OFRURAL POOR THROUGHERICULTURE IN GUJARAT

A project on "Income enhancementof Rural Poor through Ericulture"with a total cost of Rs.296.607 lakhhas been initiated for a period of fouryears from 2008-09 to 2011-12. Theproject cost includes Central Shareof Rs.176.076 lakh from the fundsavailable under the CatalyticDevelopment Programmes of CSB.The State matching share ofRs.72.788 lakh would be met byDepartment of Cottage and RuralIndustries (DCRI), Govt. of Gujaratand Rs.47.743 lakh to be borne bythe beneficiaries. The project is beingimplemented in clusters in the districtsof Mehsana, Patan, Banaskantha &Sabrakantha of North Gujarat duringthe 2008-09 to 2011-12 byDepartment of Cottage & RuralIndustries, Govt. of Gujarat,Gandhinagar through credible NGOs.

The project covers support to 525 Ericocoon Producers, Construction of525 Rearing Houses, 4 CocoonDrying Units, Establishment of 109Spinners & 100 Weavers for yarnproduction and fabric productionrespectively, quality linked price

support for marketing of cocoonsand training to the beneficiaries. Theproject output would be 27.00 MT ofcocoon shells and 22.00 MT of spunyarn with an employment generationto 21952 man years/ year. CSB hasreleased its share of Rs.31.573 lakh(up to October,09) under CDPSchemes.

D. PROJECTS WITH R&D FUNDS

PRODUCT DESIGN, DEVELOPMENTAND DIVERSIFICATION - P3D CELL"THE COCOON"

Product Design, Development,Diversification and Market Support -P3DCell "The Cocoon" was established duringXth plan as an R&D activity. The activityenvisages the revival of traditionalproducts, development & diversification ofproducts, market information and supportto entrepreneur and exporters, particularly,in the area of non-mulberry (Tasar, Eriand Muga) or Vanya silks with thecoordination and involvement of theGovernment agencies, such as AIFD,NIFT, WSC, ISEPC, NID, NGOs,representatives of different stakeholdersof the sericulture industry and designersfor development of new and diversifiedsilk products. The activities of P3D underCDP are continued in the XI Plan with anoutlay of Rs.50 lakh.

CLUSTER DEVELOPMENT PROJECTS

In pursuance of the suggestion from thePlanning Commission and Ministry ofTextiles, Govt. of India, CSB is promotingdevelopment of sericulture in the clustermode throughout the country during XIPlan. The Cluster Promotion Programmewas initiated during 2008-09 and is beingimplemented in close coordination withthe State Sericulture Departments. Theprogramme envisage dissemination oftechnological innovations in a systematicway to improve production, productivity


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and quality of cocoons to support thetargeted production of both mulberry andvanya silks during XI Plan as alsofacilitates infrastructure up-gradation andimprovement of skill / knowledge offarmers. The programme also bringsawareness among the sericulturists aboutthe latest technologies developed and thekind of assistance available to improvesericulture. The programme ensures thatall the schemes of Govt. of India / StateGovt. for sericulture development and silkindustry reaches the stake holders in theclusters. The Cluster DevelopmentProgramme creates interest among otherfarmers to take up sericulture mainly dueto the reason that the farmers shall getconstant support/guidance from theimplementing agency from the stage ofhost plant development upto post cocoonactivities.

Under the Cluster Promotion Programme,the CSB in close coordination with DOSscontinued to assist 31 model sericultureclusters set up during 2008-09 and alsoorganized 14 new / additional clusters inpre-cocoon sector covering 16 statesduring 2009-10 involving central share ofRs.16.494 crores (upto November, 2009).

OTHERS

1. I.T. INITIATIVES

Under the IT initiatives during XIPlan, CSB shall concentrate onsoftware development by usingcontemporary technologies andnetworking of various cocoon andsilk markets with free flow ofinformation on the availability of theraw material, market trends, etc onits websites. All information requiredfor traders, buyers, and otherstakeholders shall be hosted on theweb and improves upon theinteractive interface of the website.In addition, facilities like on-linesubscription to scientific e-journals

(which will be available for access toentire CSB scientists), on-linesubmission of research progressreports, video conferencing amongResearch Institutes of CSB, etc. willbe created. Work is in progress tosetup centralized server at CSBcomplex and host the CSB websiteon 24x7 basis at CSB complex andto develop a centralized MISapplication. An expenditure of Rs.5.09 lakh will be incurred up toMarch 2010.

2. SILK MARK ORGANIZATION OFINDIA (SMOI)

The Ministry of Textiles-Govt. of Indiacame up with an initiative for theprotection of the interests of theconsumers and other stakeholdersof the silk value-chain by bringing out"Silk Mark" Scheme in June 2004.Silk Mark, the Quality AssuranceLabel signifying that a product towhich it is affixed is made of pure silkwas launched by the Silk MarkOrganisation of India (SMOI), aregistered Society sponsored by theCentral Silk Board under MoT. SilkMark labels can be affixed to primary,intermediate and finished products ofsilk including yarn, fabric, sarees,made-ups, garments, carpets, etc.

The Silk Mark Scheme is aimed atprotecting the interests of the usersand connoisseurs of silk, and for thegeneric promotion of silk and also forbuilding brand-equity of Indian Silkinternationally. Since the launch ofSilk Mark in June 2004, over 1300members have joined theOrganisation, of whom, more than1,200 have become AuthorizedUsers. Nearly 81.00 lakh of Silk Marklabelled products have reached themarket for the benefit of consumers.Apart from becoming familiar withthe consumers, Silk Mark is gaining

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confidence of the Silk Industry aswell. During 2008-09, 296 newmembers and 292 Authorised Usershave been enrolled under Silk MarkScheme and 21.29 lakhs of SilkMark Labelled products have reachedthe market.

To spread the message of Silk Mark,a well thought out action plan for theyear 2009-10 is in place. Accordingly,during 2009-10 (up to November,2009) 209 Members and 205Authorized Users have been enrolledand 13.63 lakh of Silk Mark Labelledproducts have reached the market.SMOI had participated in variousexhibitions and conducted AwarenessProgrammes for consumers and tradeacross the country to promote theSilk Mark Scheme. During 2009-10(upto November 2009) SMOIparticipated in as many as 237exhibitions/ Workshops/ Road showsetc.

3. VANYA SILK MARKETPROMOTION CELL (VSMPC)

Vanya Silk Market Promotion Cell(VSMPC) was established under XPlan CDP scheme with an objectiveof providing input support to VanyaSilks in the areas of MarketPromotion, Product Development andDiversification. The activities ofVSMPC are continued during XI Planat an outlay of Rs. 100 Lakh. TheAdvisory Committee of VSMPCheaded by the Member Secretary,CSB and members from AIFD,Bangalore, NIFT, Bangalore, IIM,Bangalore, NIFT-TEA KFI, Tirupur,and officers from CSB and CSTRI,Bangalore is reviewing the functioningof the cell.

4. AUTOMATIC REELING UNITS

In view of the thrust being provided

to bivoltine cocoon production in thecountry and with an aim to produceinternational quality (3A- 4A) rawsilk, a scheme for supportingestablishment of Automatic ReelingMachine (ARM) units wasimplemented under the X Plan CDP.The scheme was aimed atpopularising the adoption of latesttechnologies in cocoon processing,silk reeling, testing etc. It wasproposed to establish these unitswith reeling machineries andequipments imported from China.Each ARM unit with 400 ends has acapacity to produce approximately34.00 MTs of quality raw silk perannum. The cocoon requirementwould be around 218 MT per annumcovering 350-500 acres undermulberry cultivation. On a pilot basistwo such units, one each in Jangaon,Warangal District, Andhra Pradeshand Gobichettypalyam, Erode District,Tamil Nadu were approved. M/s R.ASilks, Jangaon (AP) and M/s VarnaSilk Industries, Gobichettypalyam(TN) have established these unitsduring the year 2007-08. CSB hasalso provided the post commissioningsupport through training and testinginterventions. As per the informationavailable with CSB both the units arerunning and producing quality rawsilk.

The Govt. of India is supporting theestablishment of ARM units duringthe XI Plan CDP also with a physicaltarget of 10 units. The unit cost ofRs.100.00 lakhs towards machineryis to be shared among CSB, theconcerned State and the entrepreneurin the ratio of 50:25:25 respectively.The CSB in association with therespective State had identified threeentrepreneurs, two from Karnatakaand one from Tamil Nadu forestablishment of ARM units duringthe year 2008-09 and provided


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financial support of Rs.50.00 lakhs(Central share) to each entrepreneur.Establishment of these units are atvarious stages and two units arelikely to be operational by March2010. Further, three moreentrepreneurs, one each fromKarnataka, Tamil Nadu and AndhraPradesh have been identified forestablishment of ARM units during2010-11.

5. ERI SPUN SILK MILL

Eri cocoons were hitherto utilized forthe production of hand spun yarn ontraditional hand spinning devices.With a view to produce quality erispun silk yarn of various counts andto meet the requirement of producingdiversified value added products ineri and its blends both for domesticas well as international markets, itwas proposed to support forestablishment of Eri Spun Silk Mill of440 spindles with a capacity toproduce around 100 kgs of spun silkyarn per day, under the X CDPapproved by the EFC. The schemeenvisaged central subsidy of 75% onthe unit cost of Rs.150.00 lakhstowards building, infrastructure andmachinery. The total project cost isestimated to be around Rs.270.00lakhs.

Establishment of two units, one eachin Hindupur, Andhra Pradesh andKokrajhar, Bodo Territorial Council(BTC), Assam were approved. M/sIndian Silk Mills, Bangalore and M/sIndi Luo Enterprises, Kokrajhar haveestablished these units in Hindupurand Kokrajhar respectively during

the year 2008-09. There is a provisionto support for establishment of threeeri spun silk units during the XI PlanCDP also. The unit cost of Rs.170.00lakhs towards machinery is to beshared among CSB, concerned Stateand entrepreneur in the ratio of50:25:25 in general States and65:25:10 in special status Statesrespectively. Under this scheme, CSBhas supported M/s Fabric Plus Pvt.Ltd. to set up one unit at ChayyagaonIndustrial Growth Centre, Assam andthe unit was inaugurated by ShriDayanidhi Maran, Hon'ble UnionMinister of Textiles on 19th August2009. The unit has startedcommercial production. Further, M/sKasare Vanya Silk Mill has beenidentified to establish one unit atRaipur, Chhattisgarh during the year2009-10.

6. INDIAN SILK EXPORT PROMOTIONCOUNCIL

The Indian Silk Export PromotionCouncil (ISPEC), Mumbai continuesto undertake activities relating topromotion of exports of natural silkgoods from India and to act as theregistering authority for silk exporters.The Council produces anddisseminates information to itsmembers about market developmentsin the world, changes in the tradepolicies etc. through its monthlymagazines known as the "Silk Net".The silk sample catalogues containingsample swatches of the full range ofsilks available in India brought out bythe Council are available to potentialbuyer, importing textile agents andIndian Mission abroad.

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CHAPTER VIII

THE WOOL AND WOOLLENTEXTILES INDUSTRY


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CHAPTER VIII

THE WOOL AND WOOLLEN TEXTILESINDUSTRY

states in the country. The world averagefor wool productivity is about 3.5 kg/sheep/year, while in India the average is0.8 kg/sheep/year.

There are 718 woollen units in theorganized sector, and a large number ofunits in the small scale sector. Ludhianaalone accounts for 225-240 units in thedecentralized hosiery and shawl sector.The installed capacity of the industry isabout 6.04 lakh worsted spindles, and 4.37lakh non-worsted spindles. Wool combingcapacity is around 30 million kg., whereas,the synthetic fibre combing capacity is 3.57million kg. There are approximately 7,228powerlooms in this industry.

A small quantity of specialty fibre isobtained from Pashmina goats and Angorarabbits. There are 958 woolen units in

The Wool and Woollen TextilesIndustry is a rural based, exportoriented industry in which the

organized sector, the decentralized sector,and the rural sector complement eachother. The country is the seventh largestproducer of wool and contributes 1.8%to total world production. Since thedomestic produce is not adequate, theindustry is dependent on imported rawmaterial. Wool is the only natural fibrein which the country is deficient. A smallquantity of specialty fibre is obtained fromPashmina goats and Angora rabbits. Ofthe total production of raw wool, 5% isapparel grade, 85% carpet grade, and10% coarse grade. Rajasthan (44percent), Jammu & Kashmir(13 percent),Karnataka (12 percent) alongwith Gujarat,Uttar Pradesh, Andhra Pradesh, Haryana(23 percent) are the major wool producing

Table 8.1

Status of Wool & Woollens Textiles Industry

Total no. of existing units, including decentralized 958hosiery and shawl sector

Total no. of persons employed, including persons 27 lakhassociated in sheep rearing and farming sectorand weavers in carpet sector

Total Production Rs. 8,500 Crore

Total Investment Rs. 20,000 Crore(Excluding Carpet Sector)

Total Imports Rs. 1,032 Crore*

Total Exports Rs. 5,705** Crore

* Woollen yarn & fabric, raw wool and woolen/synthetic rags.** Woollen yarn fabric, made up set, RMG Wool, Carpet Handmade


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the country, the majority of which are inthe small scale sector. During the XIthFive Year Plan period (2007-12), theGovernment is implementing the followingSchemes for the holistic growth anddevelopment of Wool Sector: (i) IntegratedWool Improvement & DevelopmentProgramme (IWIDP), (ii) QualityProcessing of Wool and (iii) Social SecurityScheme. The Schemes are beingadministered in the major wool producingStates by the Central Wool DevelopmentBoard (CWDB), Jodhpur, throughrespective State GovernmentOrganizations / NGOs, Societies,Cooperatives, etc.

(i) ORGANISED SECTOR

a) Composite Mills

b) Combing Units

c) Worsted and Non-Worsted SpinningUnits

d) Knitwear and Woven Garment Units

e) Machine-made Carpet ManufacturingUnits.

(ii) DECENTRALISED SECTOR

a) Hosiery and Knitting Units

b) Powerloom Units

c) Hand-made Carpets, Druggets, andNamadahs units

d) Independent Dyeing and ProcessHouses.

Raw Material

Indigenous Production

Table 8.2

YEAR QUANTITY(In Million Kg.)

2005-2006 44.90

2006-2007 45.20

2007-2008 45.00

2008-09 48.00

(Source: Ministry of Agriculture, Departmentof Animal Husbandry)

Import

i. Raw Wool (Merino/New-Zealand-Greasy/Scoured)

Table 8.3


2004-2005 84.76

2005-2006 90.18

2006-2007 99.62

2007-2008 93.08

2008-2009 54.84(upto Dec. 08)

(Source: DGCI&S, Kolkata)

ii. Rags (Woollen/Synthetic)

Table 8.4


2004-2005 69.05

2005-2006 103.03

2006-2007 110.26

2007-2008 92.47

2008-2009 66.82(upto Dec. 08)

(Source: DGCI&S, Kolkata)

Installed Capacity

Table 8.5

i. (a) Wool Combing : 30 Million Kg.

(b) Synthetic Fibre : 3.57 Million Kg. Combing

ii. Worsted : 6.04 lakhspindles

iii. Non Worsted : 4.37 lakhspindles

iv. Powerlooms : 7228

v. (a) Machine-made : 0.50 Mn. carpets Sq. Meter

(b) Hand-made : 9 Mn. Sq. Meter carpets

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CENTRAL WOOL DEVELOPMENTBOARD, JODHPUR

The Central Wool DevelopmentBoard(CWDB), Jodhpur, Rajasthan wasset up under the Rajasthan SocietiesRegistration Act, 1958 in July 1987, toadminister the implementation ofprogrammes and schemes in centralsector for the promotion and developmentof wool and woollen industry in the country.

The Government of India, vide GazetteNotification No. 2/17/2003-W&WT datedSeptember 17, 2008, has reconstitutedthe Board for a period of two years withShri Sagar Raika, a non-official Member,as Chairman of the Board and the JointSecretary (Wool), Ministry of Textiles asthe Vice-Chairman of the Board.

The Ministry of Textiles had allocatedRs. 1,500 lakh to the Central WoolDevelopment Board (CWDB) during 2009-10 to implement various Plan Schemesand Programmes for the holistic growthand development of wool sector. The Boardhad utilized Rs. 557 lakh under Plan headtill November 2009. On the Non-Plan sidea provision of Rs.180 lakh was made for2009-10, and the Board had utilizedRs. 110 lakh till November, 2009.

During 2009-10, the Central WoolDevelopment Board had undertaken thefollowing activities:

1. Integrated Wool Improvement andDevelopment Programme (IWIDP)

The Integrated Wool Improvement &Development Programme (IWIDP), theflagship Scheme of Wool Sector, is beingimplemented during the XIth Five YearPlan period at an estimated cost of Rs. 41crore. The Scheme provides support tothe Industry & Wool growers to qualitativelyupgrade product and technology to enablethem to get better returns for their productsand get a larger share of the domesticand global market. The Programme hastwo main components: (i) Improvement ofWool Fibre and (ii) Human ResourceDevelopment and Marketing Activities.

During the XIth Five Year Plan period, theProgramme aims to cover 26 lakh sheep,set up 24 Multipurpose Extension Centers& 6 rearing farms and supply 26,000 studrams for breed improvement.

Improvement of Wool Fibre

(i) Sheep & Wool ImprovementScheme (SWIS)

The Sheep & Wool Improvement Scheme

Wool Products

Table 8.6

Item Unit 2005-06 2006-07 2007-08

Worsted yarn Kg 53.00 58.00 60.00

Woollen yarn Kg 34.00 35.00 36.00

Wool tops Kg 33.00 35.00 37.00

Fabric (Woollen/Worsted) Mtr 75.00 80.00 85.00

Shoddy yarn Kg 32.00 37.00 43.00

Blankets (Shoddy/Woollen) Pcs 14.00 16.00 18.00

Shoddy fabrics Mtr 24.00 28.00 33.00

Knitwear/woven wear goods Kg 16.00 17.50 19.00

Hand-made carpets Sq. Mtr 09.00 10.00 11.00

Machine-made carpets Sq. Mtr 00.50 00.50 00.50

(Source: IWMF, Mumbai)


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was introduced during the Xth Five YearPlan period, as part of the IntegratedWool Improvement Programme (IWIP), toprovide Health Care to sheep to improvetheir breed, to set up MultipurposeExtension Centres, provide marketing andsupport, product development Supportand marketing assistance to the breeders.The National Institute of RuralDevelopment (NIRD), Hyderabad, hadevaluated the scheme at the end of XthFive Year Plan and recommended that:

● The Sheep & Wool ImprovementScheme may continue for some moreyears

● The allotment of fund under HealthCare may be increased and focusshould be on vaccination, de-worming, etc.

● The purchase price of Ram beincreased up to Rs. 4,000 per ram tofacilitate greater procurement ofquality rams and give stimulus tobreed improvement

● The intensity and frequency of healthcamps may be increased

● The Multipurpose Extension Centremay be set up on priority basis

● The Product Development andMarketing Assistant may continue

● The Marketing of Wool may be givengreater priority

These measures were incorporated in theScheme. During 2009-10, 9 lakh sheep willbe covered under the Scheme with financialallocation of Rs. 1090.70 lakh. The Boardutilized Rs. 424.48 lakh till January 2010and covered 6 lakh new sheep and 22.75lakh ongoing sheep and 33,744 sheepbreeders had benefitted from the States ofRajasthan, Gujarat, Madhya Pradesh,Uttrakhand, Maharasthra, Haryana andJammu & Kashmir.

(ii) Angora Wool DevelopmentScheme

The Angora Wool Development schemewas first introduced during the IXth FiveYear Plan period. It supports angorarearing activity among farmers,strengthens Germplasm Centre (GPC),and facilitated distribution of rabbit amongrearers as foundation stock along withnecessary training and feed and nutritionalsupport. The scheme is part of IWIDPduring the XIth Five Year Plan period andhas the following components:

i) Establishment of Mini Angora rabbitFarm

ii) Mini Feed Manufacturing Units

iii) Common Facility Centre (CFC) forAngora Wool Processing and Training

iv) Research & Development,

v) Strengthening of Angora rabbitGermplasm Centre.

During the financial year 2009-10, 140Angora rabbit rearing families are beingprovided benefits at an estimated cost ofRs. 69.30 lakh.

(iii) Pashmina Development Scheme

During the Xth Five Year Plan period, theScheme for the development of PashminaWool was launched in Leh-Ladakh regionof J&K as part of Prime Minister SpecialPackage. The Scheme is continuing duringthe XIth Five Year Plan period. Thecomponents of the Scheme are:

● Buck Exchange Programme

● Distribution of high quality Pashminabucks in non-traditional areas toenhance Pashmina production

● Training of formation of BreedersAssociation (Guilds) or villagePashmina Cooperative Societies

● Establishment of Fodder Bank

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● Refresher Training to NomadicBreeders as Paramedics

● Health Coverage

● Refresher Courses to In-serviceCandidates for 3 days/breederscamps

● Fodder Development

● Provision of improved PashminaCombs for Efficient Harvesting ofPashmina

During 2009-10, the Board is providingfacilities to 800 families in Ladakh regionof J&K at an estimated cost of Rs. 43.75lakh.

B. Human Resource Development &Promotional activities

During the XIth Five Year Plan period,CWDB carried out various activities underthe Support Services component. TheBoard is continuing following activitiesduring the XIth Five Year Plan period, aspart of Support Services to develop HRDpotential of the wool sector :-

● Marketing and Promotional activitieswhich includes organisation of fairsand Woollen Expos, seminar andworkshops, etc.

● Market Intelligence and Publicity

● Publication of quarterly newsmagazine 'Wool Bulletin'

● Research, Study and Consultancy

● Training at Weaving and DesigningTraining Centre, Kullu

● Monitoring and Evaluation ofSchemes

● Training to farmers/ breeders/weavers

● Strengthening and upgradation ofwool testing, wool grading andmarketing facilities.

● Strengthening of the Central Wool

Development Board and constructionof office building.

During the financial year 2009-10, theBoard had provided Rs. 146.25 lakh forthe above activities. The Board had utilizedRs. 94.78 lakh and imparted training to145 resource persons and organized 14Woollen Expos till January 2010.

2. Quality Processing of Wool andWoollen Scheme

The unorganized Woollen Sector suffersfrom inadequate processing facilities. Thepre loom & post loom facilities areoutdated. The sector uses crude form ofcarding, which results in low productivity,besides affecting the health of workers.The spinning technology is primitive, whichis urgently required to be upgraded throughimproved equipments. The Schemeprovides a comprehensive servicepackage from deburring to carding &spinning stage. The setting up of modernplants will increase wool-processingcapacity and brings value addition toIndian wool industry and creates moreemployment and augments income ofpersons engaged in these decentralizedactivities.

The agency under the Scheme has tobear the cost of land & building. TheGovernment of India provides non-recurring grant for purchase of machineryrequired for setting up of a unit. Therecurring expenditure is borne by theagency/association.

A provision of Rs. 100 lakh has beenmade in 2009-10 to set up 2 new CommonFacility Centers for Pre-loom activity likewool scouring, drying, deburing andcarding, etc. The scheme is beingimplemented in project mode with Rs. 50lakh or 50% of the total project cost,whichever is less towards cost ofmachinery. Till January 2010, the Boardhas utilized Rs. 42.71 lakh under different


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ongoing Common Facility Centres. Duringthe year 2009-10, the Board proposes tosetup 2 Common Facility Centers underpre-loom activity at a financial outlay ofRs. 100 lakh.

3. Social Security Programme forSheep Breeders

Sheep Breeders Insurance Scheme

Approximately 12 lakh people are engagedin Sheep breeding and rearing activities.The majority of them are living below thepoverty line or are marginally abovepoverty line. Sheep breeders generallylead migratory life style in search ofsuitable green pastures. During migration,they face adverse conditions such asrains, cyclones, storms, snakebite, attackof wild animal, etc., and lack of medicaland insurance facilities. Therefore,Government of India has decided to protectthis vulnerable section of society byproviding them insurance cover. TheCentral Wool Development Board isimplementing the Sheep BreedersInsurance Scheme during XIth Five YearPlan period. The basic objective of theShepherd Insurance Scheme is to providean enhanced insurance cover to Sheepbreeders in the case of natural as well asaccidental death. Out of the annualpremium of Rs. 330, the contribution fromGOI is Rs. 150, breeders Rs. 80, andRs.100 is borne by LIC from its SocialSecurity Funds.

The benefits accruing to the Sheepbreeder are:

(a) On Natural death - Rs 60,000

(b) On Accidental death - Rs. 1,50,000

(c) On Permanent - Rs. 1,50,000Disability

(d) On Partial Disability - Rs.75,000

Sheep Insurance Scheme

India has the third largest sheep population

country of the world with 6.15 croresheep. The annual wool production in therange of 45-48 million kg which isapproximately 1.8% of total world woolproduction. It is expected that properhealth care alone should lead to increasein the production of wool by at least 10%,according to a study carried out by theCentral Sheep and Wool ResearchInstitute, Avikanagar. The Central WoolDevelopment Board is implementing theSheep Insurance Scheme during XIthFive Year Plan period under SocialSecurity Scheme. The basic objective ofthe Sheep Insurance Plan is to provideinsurance cover to sheep in the case ofaccident including fire, lightning, storm,tempest, floods, inundation, earthquake,famine and diseases contracted oroccurring during the period of the policyin project areas.

The normal period of insurance is 12months and maximum period is threeyears co terminus with the project periodof SWIS. The average cost of sheep isestimated at Rs. 1,200, of one year tonine years old and premium is 3.2% plusservice tax of the cost of the animal perannum i.e., Rs. 44 sheep. The premiumof Rs. 25 per sheep per year is paid bythe CWDB and remaining Rs. 19 persheep per year is contributed by thebeneficiary. In the event of death of thesheep, the sum assured of Rs. 1,200becomes payable to the shepherd. Thebenefit of subsidy is provided to abeneficiary for a maximum period of threeyears.

During the financial year 2009-10, theBoard had made a financial provisionof Rs. 50 lakh to provide insurancecoverage for 93,500 sheep breeders and9 lakh sheep. The Board has covered14,358 sheep breeders and 4,23,953sheep, till November 2009 and October2009, respectively and released Rs. 3.44lakh.

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FUTURE PLANS

For the holistic growth and developmentof Wool Sector, the Government is makingserious efforts to achieve the followingobjectives by 2012:

● Increase yield of speciality wool fibreviz., Pashmina and Angora

● Improve micron of wool by 2μ.

● Increase wool yield per animal by25%

● Reduce annual mortality by 10%

● Widen the uses of the coarse andcoloured decanni wool (Southernregion) by product development anddiversification.

● Increase the demand for Indian woolin domestic and international market

THE WOOL & WOOLLENS EXPORTPROMOTION COUNCIL (WWEPC), NEWDELHI

The Wool & Woollens Export PromotionCouncil (W&WEPC), New Delhi was setup on October 06, 1964, under theSocieties Registration Act, 1860. Itrepresents the interests of hosiery/unorganized wool and woollen sector,and promotes the exports of woollenhosiery, acrylic knitwear products, knittedshawls, scarves and stoles, etc. TheCouncil has 1,070 members and itcontinuously undertakes various export

promotional measures to project theconsiderable product range of wool andwoollen hosiery products in the majormarkets abroad.

EXPORTS

The Export performance during the years2008-09 & 2009-10 (October 2009) onthe basis of figures received from DGCI&S,Kolkata is given at table 8.7.

The export data shows an increase of10.66% compared to the same period ofprevious year. The Council has fixed anexport target of US$ 550 Million (Rs.2,420crore) for the year 2009-10.

EXPORT PROMOTION ACTIVITIES

The Council participates in Trade Fairs/Exhibitions, Organizes visits of TradeDelegation abroad and convenes Buyer-Seller Meets (BSM) to promote the IndianWoollen products. The details of theparticipation in various activities are givenat table 8.8.

PUBLICITY

The Council publish "Wool News", aNewsletter, which provides latestinformation on major markets, policydevelopments, news relating to exports,trade notifications, export trends, overseastrade enquiries, fashion and technologydevelopments. The publication helps the

Table 8.7

(Rupees in Crore)

PRODUCTS 2008-09 April 08 to 2009-10 (uptoOctober 2008 October 2009)

Woollen Yarns, Fabrics,Made-ups, etc. Rs. 456.52 Rs. 264.84 Rs. 244.84

RMG Wool Rs. 1742.98 Rs. 1049.26 Rs. 1210.00

TOTAL Rs. 2190.50 Rs. 1314.64 Rs. 1454.84

% Increase 10.66%


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exporters to keep abreast with the latesttrends in the international market andevolving overseas demand. The Councilalso releases various publicity materials

Table 8.8

S.No. Activity Duration

1 South African International Trade Exhibition (SAITEX), July 19-21, 2009Johannesburg, South Africa

2 Copenhagen Intl. Fashion Fair (CIFF 2009), Denmark August 6-9, 2009

3 Fashion Exposed held in Melbourne (Australia) 30th August to1st September, 2009

4 Pret A Porter, Paris, France September 4-7, 2009

5 XXXIII Federal Trade Fair, Moscow, Russia September 22-25, 2009

6 Hong Kong Fashion Week for Fall/Winter, Hong Kong January 14-17, 2010

7 The Autumn Fair 2010 Manama, Bahrain 24 January - 1 February,2010

8 Pret A Porter, Paris, France January 23-26, 2010

9 Federal Trade Fair (Textilexpo), Moscow, Russia February 16-19, 2010

10 CAIRP International Fair, Cairo, Egypt March 11-22, 2010

11 Intermoda Guadalajara, Mexico January 19-22, 2010

12 Expocomer Panama City, Panama March 3-6, 2010

13 Australian Intl. Sourcing Fair Melbourne, Australia March 23-25, 2010

14 Tex Styles India Pragati Maidan, New Delhi February 24-27, 2010

in print media regarding promotionalactivities as well as highlights the problemsof the woollen industry particularly exportsegment.

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CHAPTER IX

DECENTRALISEDPOWERLOOM SECTOR


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The decentralized Powerloom Sectorplays a pivotal role in meeting theclothing needs of the country. The

powerloom industry produces a widevariety of cloth, both grey as well asprocessed. Production of cloth as well asgeneration of employment has been rapidlyincreasing in the powerloom sector. Thereare 22.38 lakh powerloom in the countryas on 31st December, 2009 distributedover approximately 5.03 lakh units. Thisis about 60.39% of the total looms in theworld. The powerloom sector contributesabout 62% of the total cloth production ofthe country, and provides employment toabout 55.95 lakh persons.

GROWTH IN THE POWERLOOMSECTOR

The estimated number of powerloom inthe decentralized sector in the country tillDecember 2009 were 22,38,036. Theyear-wise details of powerlooms set-upsince 2002 (upto December, 2009) are

CHAPTER IX

DECENTRALISED POWERLOOM SECTOR

given at table 9.1.

Table 9.1

Year Powerlooms

2002-2003 16,92,737

2003-2004 18,36,856

2004-2005 19,02,953

2005-2006 19,43,892

2006-2007 19,90,308

2007-2008 21,06,370

2008-2009 22,05,352

2009-2010(Till 31.12.2009) 22,38,036

(Source : State Govts. & Uts./Regional Officeof the Textile Commissioner)

CLOTH PRODUCTION (MILLIONSQ.MTRS)

The details of total cloth production andproduction by powerloom sector duringXth and XIth Plan period are given at table9.2.

Table 9.2

Year Total Production %age of %age increase overproduction on Powerloom previous year

Powerloom Productionover total Total Powerloom

Production production production

2002-03 41973 25954 62% (-)0.15% 3%

2003-04 42383 26947 64% 1% 4%

2004-05 45378 28325 62% 7% 5%

2005-06 49577 30626 62% 9% 8%

2006-07 53389 32879 62% 8% 7%

2007-08 56025 34725 62% 4.9% 5.6%

2008-09 54966 33648 61% (-)1.89% (-)3.10%


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Table 9.3

Sr. Type of loom 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 TotalNo. installed

1. Semi Automatic Loom 14994 4732 3569 2811 2752 1521 278 30657

2. Automatic loom 1916 1229 2055 2878 1631 484 110 10303

3. Shuttleless Loom 3595 3639 4549 6367 5184 2088 1250 26972

Total 20505 9600 10173 12056 9567 4093 1638 67932

MODERNISATION & STRENGTHENINGOF POWERLOOM SERVICE CENTRE

Out of 44 PSCs under TextileCommissioner and other agencies, 43Powerloom Service Centres (PSCs) havebeen modernized with modern machinesand equipment such as shuttleless loomsof type Projectile, Rapier, Air jet, AutomaticCop Changing Looms, Drop Box Looms,Pirn Winders, Cone Winders, SectionalWarping Machine, DG sets etc. Out of 44PSCs, 14 PSCs are under the office ofthe Textile Commissioner, 25 PSCs arerun by different TRAs, 4 PSCs under theKSPDC, Bangalore & one PSC is run bythe M.P. State Powerloom Weavers' Co-Op. Federation.

PERFORMANCE OF POWERLOOMSERVICE CENTRES

During the year 2008-09, the 44 PSCstrained 13143 persons, developed 4767designs & tested 66737 samples andgenerated a total revenue of Rs.117.46lakh. During this period, PSCs haveorganized 389 exhibitions, seminars &workshops. The achievement during 2009-10 (April to Dec 2009) is as under :-

1. No. of trainees - 8869

2. No. of designsdeveloped - 2825

3. No. of samplestested - 57070

4. Consultancy /troubleshooting - 3681

5. Total Revenuesgeneration - Rs.73,48,029

6. No. of Exhibitions,Seminar &Workshops - 301

COMPUTER AIDED DESIGN CENTRES

The following 17 Computer AidedDesign Centres (CADCs) have beenestablished:-

Coimbatore, Karur, Komarapalayam &Sommanur(Tamil Nadu), Surat andAhmedabad (Gujarat), Solapur,Ichalkaranji, Bhiwandi and Mumbai(Maharashtra), Bhilwara (Rajasthan),Ghaziabad (Uttar Pradesh), Bangaloreand Doddaballpur (Karnataka), Burhanpurand Indore (Madhya Pradesh) and Panipat(Haryana). These CADCs help thedecentralized and small powerloom unitsto access new designs and improve thequality of the fabric.

MODERNISATION OF DECENTRALISEDPOWERLOOM SECTOR

The Government has given a thrust formodernization of the powerloom sector.The main emphasis was on TechnologyUpgradation Fund Scheme (TUFS). Thisscheme has given an impetus topowerloom sector. The different categoryof looms installed under modernizationduring 2002-03 to 2008-09 is given attable 9.3.

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GROUP INSURANCE SCHEME FORTHE POWERLOOM WEAVERS/WORKERS

Government of India have launched arevised Scheme "Welfare of Powerloomworkers through Group InsuranceScheme" in association with LIC from1st July, 2003.

In accordance with the XI Five Year Plan,the scheme has been modified by mergingthe existing JBY Scheme and Add-on-GISw.e.f. 1st January, 2008. As per themodified scheme, the total premium isRs.330/- for one year policy out of whichRs.150/- is to be borne by the Office ofthe Textile Commissioner, Government ofIndia and Rs.100/- is being paid by theLIC from the social security fund ofGovernment of India. Only a premium ofRs.80/- is to be paid by the powerloomweaver for getting the benefits under thesaid scheme. The coverage benefit underthe scheme is at table 9.4.

In addition to the above, a worker underJBY will also be entitled to the educationalgrant of Rs.600/- per child per half yearfor two children studying in IX to XIIstandard for a maximum period of 4 yearsunder Shiksha Sahayog Yojana (SSY).

The progress of the Scheme from 2003-04 upto January 2010 is given at table9.5.

GROUP WORKSHED SCHEME

The Government of India has introduceda Group Workshed Scheme fordecentralized Powerloom Sector on29.07.2003, under the Xth Five YearPlan. The scheme aims at setting up ofPowerloom Parks with modern weavingmachinery to enhance theircompetitiveness in the Global Market andthe same has been modified. As per themodified Scheme, subsidy for constructionof Workshed would be limited to 40% ofthe unit cost of construction subject to a

Table 9.4

Component Natural Accidental Total PartialDeath Death Permanent Permanent

Disability Disability

GIS Rs. 60,000/- Rs. 1,50,000/- Rs. 1,50,000/- Rs. 75,000/-

Table 9.5

Year No. of workers enrolled GOI Share of Premium (Rs.)

JBY AGIS Total JBY AGIS Total

2003-04 49498 10840 60338 2969880 975600 3945480

2004-05 92992 16810 109802 5579520 1512900 7092420

2005-06 77907 18489 96396 4674420 1664010 6338430

2006-07 74115 19936 94051 4446900 1794240 6241140

2007-08 106492 15445 121937 8269530 1390050 9659580

2008-09 114011 - 114011 17101650 - 17101650

2009-10(Up to Jan, 2010) 91131 - 91131 13669650 - 13669650


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maximum of Rs.120/- per sq. ft. whicheveris less. Ordinarily, minimum 4 weaversshould form a group, each with 12 modernlooms of single width or 6 wider widthlooms per person will be allowed to beinstalled. The maximum subsidy will beRs.12 lakh per person. The scheme doesnot envisage more than 500 looms underone project proposal. During the year2009-10, there was an allocation ofRs.86.5 lakh for this scheme and asubsidy amount of Rs.79.9 lakh has beenreleased to the beneficiaries under theScheme.

INTEGRATED SCHEME FORPOWERLOOM CLUSTERDEVELOPMENT

In order to achieve the overall developmentof the powerloom sector, Government hasannounced the Integrated Scheme forPowerloom Cluster Development during2007-08 for 3 years i.e up to 2009-10.The Scheme has got the followingcomponents :

1) Marketing Development programmefor Powerloom Sector

2) Exposure visit of Powerloom Weaversto other Clusters

3) Survey of the Powerloom Sector

4) Powerloom Cluster Development

5) Development & Upgradation of Skills(HRD)

Performance of the Scheme

(a) Buyer Seller Meets

Year No. of Amount releasedMeets (Rs. in lakh)

2007-08 7 25.50

2008-09 9 53.68

2009-10(uptoFebruary,2010) 9 48.45

(b) Exposure Visits

Year No. of Amount releasedWeavers (Rs. in lakh)

2007-08 301 06.02

2008-09 558 10.20

2009-10(uptoFebruary,2010) 412 14.21

c) Powerloom Cluster Development

Towards the development of differentpowerloom clusters identified, 30 CDOswere given training in cluster developmentby the EDI, Ahmedabad during 2007-08involving a total expenditure of Rs.15.97lakh. During the year 2008-09, Rs.4.8lakh has been spent for refresher trainingof officers from Regional Offices and H.Q.Further the following 8 clusters have beenselected for development and CDOs havebeen posted in the respective cluster:-

1. Burhanpur, 2. Nalgonda, 3. Ranaghat,4. Umergaon, 5. Amritsar, 6. Karur,7. Bhilwara & 8. Maunathbhanjan.

20% CREDIT LINKED CAPTIALSUBSIDY

The Government has implemented 20%Credit Linked Capital Subsidy Schemeunder the TUFS, especially in order tohelp the decentralized Powerloom Sector.The scheme was announced on 6.11.2003by the Government and is applicable toPowerlooms in SSI sector only. Under thescheme, Rs.189.48 crores has beendisbursed to 2583 cases since November2003 to 25th February, 2010. Progressunder 20% CLCS-TUFS for thedecentralised Powerloom Sector is givenat table 9.6.

ALL INDIA POWERLOOM BOARD

The All India Powerloom Board (AIPB)was first constituted as an Advisory body

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Table 9.6

S. Year No. of units Amount of subsidy releasesNo. (Rs. in crore)

1 2003-04 4 0.102 2004-05 150 6.003 2005-06 368 23.004 2006-07 827 59.865 2007-08 567 44.956 2008-09 404 32.487 2009-10 263 23.09

in November, 1981 and is reconstitutedfrom time to time.

POWERLOOM DEVELOPMENTEXPORT PROMOTION COUNCIL(PDEXCIL)

PDEXCIL was constituted on 8thSeptember, 1995 to give thrust to thedevelopment of the powerloom sector,and to promote export of fabrics madeon powerlooms. PDEXCIL makesrecommendations to the Government onmatters concerning the development ofthe Powerloom sector to increase itscompetitiveness in the internationalmarket.

POWERLOOM MEGA CLUSTERS

Pursuant to the Budget Announcement2008-09, the Government decided to scaleup infrastructure and production by takingup six centres for development as megaclusters in Varanasi and Sibsagar forhandlooms; Bhiwandi and Erode forpowerlooms; and Narsapur andMoradabad for handicrafts, on a PublicPrivate Partnership (PPP) model. Fivemore Mega Clusters, 2 each forHandicrafts at Srinagar (J&K) andMirzapur-Badohi (UP), Handlooms atVirudhnagar (TN) and Murshidabad (WB)and one for powerlooms at Bhilwara (Raj)were announced for 2009-10.

The scheme for mega cluster envisagesupport to weavers/artisans, both in andoutside the cooperative fold, includingthose in Self Help Groups (SHGs), NonGovernmental Organisations (NGOs) etc.The scheme provides for development ofall the facets of selected clusters like rawmaterial support, design inputs, up-gradation of technology, infrastructuredevelopment, marketing support, welfareof weavers etc. A convergence of theexisting development interventions of theMinistry of Textiles & other Ministries/Departments will be affected in theseclusters. The scheme will also raise livingstandards of the weavers/artisans byimproving the infrastructure facilities, withbetter storage facilities, technology up-gradation in pre-loom/on-loom/post-loomoperations, weaving shed, skill up-gradation, design inputs, health facilitiesetc.

The Scheme will be implemented over aperiod of 5 years. An amount of Rs.70crore has been earmarked for each mega-cluster.

The Agencies, which would be responsiblefor implementation of the projects (CMTAs)for all six mega clusters announced during2008-09 have been selected. The processof selection for CMTAs for the MegaClusters announced during 2009-10 isunder finalization.


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CHAPTER X

HANDLOOMS


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Handloom forms a precious part ofthe generational legacy andexemplifies the richness and

diversity of our country and the artistry ofthe weavers. Tradition of weaving byhand is a part of the country's culturalethos.

As an economic activity, handloom is the2nd largest employment provider nextonly to agriculture. The sector with 60.40%about 35 lakh handlooms providesemployment to 65 lakh persons. Of which,60.40% are women, and 35% belong toScheduled Castes and Scheduled Tribes.Production in the handloom sectorrecorded a figure of 6677 million sq.meters in the year 2008-09, which isabout 21.55% over the production figureof 5493 million sqr. meters recorded inthe year 2003-04. During 2009-10(Provisional) production in the handloom

CHAPTER X

HANDLOOMS

sector is reported to be 3942 million sqr.meters (April to October, 2009) ascompared to 3875 million sqr. metersduring the corresponding period of 2008-09 (Table 10.1). The sector accounts for15.9% of the total cloth produced in thecountry excluding hosiery, khadi, wooland silk during 2008-09. The sector,however, is beset with manifold problems,such as, obsolete technology, unorganizedproduction system, low productivity,inadequate working capital, conventionalproduct range, weak marketing links,overall stagnation of production and salesand above all, competition frompowerlooms and mill sector.

The Office of the DevelopmentCommissioner for Handlooms since itsinception in 1976 has been implementingvarious schemes for the promotion anddevelopment of handloom sector and

Table 10.1

Cloth Production by Handloom Sector

Year Cloth Share of Ratio of Total Production Handloom Handloom to Cloth

by Handloom in the total Powerloom Production*cloth (in terms of

production cloth)

2003-04 5493 16.2 1:4.91 33874

2004-05 5722 16.1 1:4.95 35573

2005-06 6108 15.9 1:5.01 38390

2006-07 6536 15.9 1:5.03 41161

2007-08 6943 16.0 1:4.97 43265

2008-09 6677 15.9 1:5.04 42121

2009-10 3942 14.7 1:5.55 26844(April-Oct)

* The total cloth production includes Handloom, Powerloom and Mill Sector excluding hosiery,khadi, wool and silk.


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welfare of handloom weavers. During11th Five Year Plan (2007-08 to 2011-12), five schemes are underimplementation, which are - (i) IntegratedHandloom Development Scheme; (ii)Handloom Weavers ComprehensiveWelfare Scheme; (iii) Marketing & ExportPromotion Scheme; (iv) Mill Gate PriceScheme; and (v) Diversified HandloomDevelopment Scheme.

INTEGRATED HANDLOOMSDEVELOPMENT SCHEME

The Integrated Handloom DevelopmentScheme (IHDS) envisages taking care ofall the needs of the weavers in a clusterin an integrated and coordinated manner.The scheme aims to focus on formation ofweavers group as a visible entity, developthe handlooms weavers groups to becomeself-sustainable, inclusive approach to coverweavers both within and outside thecooperative fold, skill up-gradation ofhandlooms weavers/workers to producediversified products with improved qualityto meet the market requirements, providesuitable workplace to weavers to enablethem to produce quality products withimproved productivity etc.

Under the scheme, clusters having about300 - 500 looms under each, are taken upfor development in a time frame of 3 yearsat an upper cost of Rs.60.00 lakh percluster. Handloom weavers, who are notcovered by the clusters, are supportedthrough a 'Group Approach", which will beimplemented in a project mode. A Group,consisting of 10 weavers or more, is providedfinancial assistance for (i) Basic inputs; (ii)Training in weaving, dyeing, designing andmanagerial disciplines; and (iii) Constructionof Work-sheds.

During the year 2008-09, a sum of Rs108.98 crore was utilized. Financialassistance was released to various StateGovernments/UTs, Weavers ServiceCentres (WSCs) etc. towards ClusterDevelopment, Group Approach, Marketing

Incentives, past liabilities under the DeenDayal Hathkargha Protsahan Yojana(DDHPY), Workshed-cum-HousingScheme, Integrated Handlooms TrainingProject (IHTP) and Integrated HandloomsCluster Development Scheme (IHCDS) etc.Against the target of 100 clusters for theyear, 131 clusters were sanctioned and asum of Rs.19.70 crore was released. UnderGroup Approach Project, 548 projects weresanctioned to various State Governments/UTs and a sum of Rs.26.08 crore wasreleased.

During the year 2009-10, there is abudgetary provision of Rs.125.00 crore(Rs.95.00 crore for General States andRs.30.00 crore for States falling under NorthEastern Region). Out of Rs.125.00 crore,a sum of Rs.90.26 crore has beensanctioned to various State Government(as on Feb. 2010). Against the target of 100clusters, so far 37 clusters have beensanctioned and a sum of Rs.5.95 crore hasbeen released. In addition to that, 351Group Approach Project have also beensanctioned and a sum of Rs.15.08 crorehas been released. The progress ofIntegrated Handloom Cluster Project is givenat table 10.2.

Table 10.2

Progress of Integrated HandloomCluster Project

Phase No. ofClusters

sanctioned

Phase-I (2005-06) 20

Phase-II & III (2007-08) 251

Phase-IV (2008-09) 131

Phase-V (2009-10) 37(up to Feb.2010)

Total 439

Statewise number of clusters sanctionedduring 2005-06 to 2009-10 is given attable 10.3.

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HANDLOOM WEAVERSCOMPREHENSIVE WELFARE SCHEME

During the 2005-06 and 2006-07 theGovernment of India was implementingtwo separate schemes namely the 'Health

Insurance Scheme' for providing healthcare facilities to the handlooms weavers inthe country and the 'Mahatma GandhiBunkar Bima Yojana' for providing LifeInsurance cover to the handloom weaversin case of natural/accidental death, total

Table 10.3

State-wise Number of Clusters Sanctioned durings 2005-06 to 2009-10

Sl. Name of the state Number of Cluster Sanctioned Grand

No. 2005-06 2007-08 2008-09 2009-10(upto TotalFeb. 2010)

A General Phase-I Phase-II Phase-III Phase-IV Phase-V

1 Andhra Pradesh 2 10 16 11 392 Bihar 1 4 5 5 153 Chhattisgarh 2 3 3 84 Delhi 0 0 0 1 15 Gujarat 4 1 4 96 Haryana 0 0 0 07 Himachal Pradesh 1 2 0 0 2 58 Jammu & Kashmir 0 0 8 89 Jharkhand 2 8 11 5 2610 Karnataka 1 5 8 5 1911 Kerala 1 4 15 5 2512 Madhaya Pradesh 1 3 7 1 4 1613 Maharashstra 0 014 Orissa 2 6 10 7 8 3315 Punjab 0 016 Rajasthan 2 0 1 317 Tamil Nadu 3 10 17 10 4018 Uttar Pradesh 4 10 11 14 8 4719 Uttarakhand 2 3 1 620 West Bengal 2 10 15 9 36

Total General 18 76 119 94 29 336

B NER

1 Arunachal Pradesh 1 7 4 122 Assam 1 5 5 5 163 Manipur 1 4 15 14 344 Nagaland 2 3 9 5 195 Meghalalya 1 3 1 2 76 Mizoram 0 1 17 Sikkim 0 08 Tripura 4 6 4 14

Total NER 2 17 39 37 8 103Grand Total 20 93 158 131 37 439Gen. NER


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and partial disability due to accident. Duringthe 11th Plan, both schemes have beenamalgamated into one scheme namelyHandloom Weavers' ComprehensiveWelfare Scheme. The details of the schemeare as under:

Health Insurance Scheme

The Health Insurance Scheme (HIS) isimplemented through the ICICI LombardGeneral Insurance Company Ltd. Thetotal premium under the scheme for 2009-10 is Rs.988.30/- including Service Taxas per the details given below:

i) Govt. of India's share - Rs.809.10per annum premium (Rs.716.80 +service tax Rs.92.30 @10.3% for theyear 2009-10.

ii) Weaver's share - Rs.179.20 perannum by the weavers / State Govt.(The minimum contribution by theweavers should be Rs.50 per familyeven in cases where State Govt. aremaking contribution on his behalf.

iii) Total premium - Rs. 988.30 perannum including service tax.

The scheme envisages covering (a) notonly the weaver but also his spouse andtwo children (b) all pre-existing diseasesas well as new diseases and (c) substantialprovision for OPD. The ancillaryhandlooms workers like those engaged inwarping, winding, dyeing, printing, finishing,sizing, jhala making, jacquard cutting etc.are also eligible to be covered. Theannual limit per family is Rs. 15,000/- outof which OPD cover is Rs. 7,500.

During 2007-08, a sum of Rs.102.60crore, as provided under the RevisedEstimates, was released to the ICICILombard as central share of premium.The coverage of weavers under thescheme during the year 2007-08 was17.74 lakh.

The Budget provision (as per R.E) for theyear 2008-09 under the HIS was Rs.120.82crore and it was released to the ICICILombard General Insurance Company Ltd.towards Central Government's share ofpremium 18.78 lakh weavers includingthose from the North Eastern Region werecovered during 2008-09.

The budget provision under the HIS for2009-10 is Rs.115.85 crore and a sum ofRs.102.60 crore has been released to theICICI Lombard General InsuranceCompany Ltd towards Central Govt. shareof premium. During 2009-10, 6.07 lakhweavers have been covered up toFebruary 2010. The progress of HealthInsurance Scheme is given at Table 10.4.

Table 10.4

Progress of Health Insurance Scheme

Year Enrollment(lakh)

2007-08 17.74

2008-09 18.78

2009-10 (February 2010) 6.07

Mahatma Gandhi Bunkar Bima Yojana

The Mahatma Gandhi Bunkar Bima Yojana(MGBBY) is being implemented throughthe Life Insurance Corporation of India.The annual premium is Rs. 330/- permember. The funding pattern under thescheme is given at Table 10.5.

Table 10.5

Funding Pattern under MahatmaGandhi Bunkar Bima Yojana

GOI contribution Rs.150/-

Weavers' contribution Rs. 80/-

LIC's share Rs.100/-

Total Rs. 330/-

During the 11th Plan, the benefits available

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under the MGBBY have been substantiallyincreased as compared to 10th Plan. Thedetails of comparative benefits are givenat Table 10.6.

In addition to the above, under theMGBBY, a scholarship of Rs. 300/- perquarter per child is given to the studentsstudying in standard IX to XII for amaximum period of four years or till theycomplete XII standard, whichever eventoccurs earlier. The benefit is restricted totwo children of the member covered.

During the year 2007-08, against theRevised Estimates of Rs.13.00 crore, anamount of Rs.12.98 crore was releasedand 4.66 lakh weavers were coveredduring 2007-08. The entire budget ofRs.3.10 crore provided for the schemeduring the year 2008-09 had been utilized.5.75 lakh weavers had been coveredduring the financial year 2008-09 underthe scheme.

For the year 2009-10 there is a budgetprovision of Rs.3.10 crore under MGBBY

Table 10.6

Benefits under Mahatma Gandhi Bunkar Bima Yojana

S. Benefits during the Benefits during 11thNo. 10th Plan Plan (from 1.10.07)

1. Natural Death Rs. 50,000 Rs. 60,000

2. Accidental Death Rs. 80,000 Rs. 1,50,000

3. Total Disability Rs. 50,000 Rs. 1,50,000

4. Partial Disability Rs. 25,000 Rs. 75,000

Distribution of Cheques to Cluster Artisans during Inauguration of "CLUSTER CREATION2010" by Union Minister of Textiles, Thiru Dayanidhi Maran


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and the entire amount of Rs.3.10 crorehas been released to the LIC towardsCentral Govt. share of premium. During2009-10, 4.10 lakh weavers have beencovered up to January 2010. The Progressof Mahatama Gandhi Bunkar Bima Yojanais given at table 10.7.

Table 10.7

Progress of Mahatama GandhiBunkar Bima Yojana

Year Enrollment(lakhs)

2007-08 4.66

2008-09 5.75

2009-10 (February 2010) 4.10

MARKETING & EXPORT PROMOTIONSCHEME

Marketing & Export Promotion Schemeconsists of two components - (i) Marketing,and (ii) Export Promotion. The MarketingPromotion Component envisages a widegamut of activities for the promotion andmarketing of handloom products. TheOffice of Development Commissioner forHandlooms assists the State Government/Implementing agencies in undertaking thefollowing activities:

● Organising of Exhibitions, Events andCraft Melas

● Setting up of Urban Haats

● Setting up of Marketing Complexes/Handloom Havelies.

● Geographical Indication Act

● Handloom House at Janpath

● Brand building through HandloomMark and Publicity

During the year 2008-09, 399 marketingevents were organized, which includes 17National Handloom Expos, 74 SpecialHandloom Expos, 301 District Level Events

and 7 Craft melas besides promotion ofHandloom Mark through publicity.Financial assistance to register 12handloom products were provided tovarious State Governments (Gujarat: 2,Karanata:2, UP:2, MP:1, Kerala:5). Asum of Rs.45.00 crore was utilized duringthe year 2008-09.

During the year 2009-10 (upto February2010) 560 events were sanctioned tovarious States which include 26 NationalHandloom Expos, 117 Special HandloomExpos, 410 District Level Events and 7Craft Melas. A sum of Rs. 33.43 crorehas been released out of the total budgetprovision of Rs.50.00 crore (B.E.)

Brand building through HandloomMark

Greater emphasis has been laid on BrandDevelopment through Handloom Markduring the XI Five Year Plan. TheHandloom Mark was launched by theHon'ble Prime Minister of India on 28thJune, 2006. The purpose of HandloomMark is to serve as a guarantee to thebuyer that the handloom product beingpurchased is a genuine handwovenproduct and not a powerloom or millmade product. Also, in the new ForeignTrade Policy, incentives to handloomproducts bearing Handloom Mark havebeen provided. Handloom Mark is beingpromoted and popularized throughadvertisements in newspapers andmagazines, electronic media, syndicatedarticles, fashion shows, films etc.

The Textiles Committee is theImplementing Agency for promotion ofHandloom Mark. As on 28/02/2010, 144.28lakh handloom mark labels have beensold to 6078 stakeholders. 728 retailsoutlets are selling handloom goods withhandloom mark label.

The new beneficiaries, now, included inthe Handloom Mark scheme to get the

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benefits are Self Help Groups, JointLiability Groups, Consortia, Producercompanies, Handloom Weavers Groupsor any other legal entity, organizationinvolved in Handloom activities andapproved by Office of the DevelopmentCommissioner for Handlooms with a onetime registration fee of Rs. 500.

Sale price of one label brought down fromRs. 1.25 at the time of launch to 60 paisein January, 2007. Application form aremade available free of cost. Theregistration fee for individual weavers isreduced to Rs.25 from Rs.100 and formaster weavers Rs.500 from Rs.2000.

Handloom Marketing Complex, Janpath,New Delhi

A world class Handloom MarketingComplex is under construction at Janpath,New Delhi to provide infrastructure supportto handloom agencies with a view toprovide permanent marketing outlets thatwill enable handloom agencies to augmenttheir sales. This handloom marketingcomplex will showcase the exquisitevarieties of handlooms produced all overthe country by the adept weavers and willalso act as a forum for the promotion ofhandloom products in the domestic as wellas international markets.

SANT KABIR AWARD

This award shall be conferred on suchoutstanding weavers, who have madevaluable contribution in keeping alive thehandloom heritage and also for theirdedication in building up linkages betweenthe past, present and the future throughdissemination of knowledge on traditionalskills and designs. SANT KABIR AWARDfor handloom weavers will be conferredevery year, beginning from the year2009.

Each award will consist of one mountedgold coin tamarapatra, one shawl and a

citation. In addition, financial assistance tothe extent of Rs. 6.00 lakh shall also begiven to each of the Sant Kabir Awardeeto innovate and create 10 new productsof high level of excellence, high aestheticvalue and high quality.

RELEASE OF POSTAGE STAMPS

H.E. Smt. Pratibha Devisingh Patil, thePresident of India has released 4 postagestamps of Rs.5/- each on Banarasi silk,Kanchipuram silk, Kalamkari and ApaTani weave on 10th Dec.2009 atRashtrapati Bhawan. The Union Ministerof Textiles, Shri Dayanidhi Maran, UnionMinister of Communication and InformationTechnology Shri A. Raja, Minister of Statefor Textiles Smt. Panabaaka Lakshmi,Minister of State for Social Justice andEmpowerment Shri D Napoleon and otherdignitaries were present. This is for thefirst time, stamps on Indian textiles wereissued in order to popularize the uniquetextiles both in India and abroad.

HANDLOOM WEEK

"Handloom Week" was celebrated for thefirst time from 21st December to 27thDecember throughout the country. Thisyear during the Handloom Week, a numberof promotional and awareness programmes,organization of domestic marketing throughhandloom expos, fashion shows in variouscities using the fabrics produced inHandloom clusters, organisation of healthcamps, publicity through newspapers,magazines, outdoor publicity, throughelectronic media were undertakensubstantially.

The Geographical Indications of Goods(Registration & Protection) Act 1999

The Geographical Indications of Goods(Registration & Protection) Act 1999provides legal protection to GeographicalIndications of goods etc., and preventsunauthorized use of these by others. The


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office of Development Commissioner forHandlooms under the Marketing and ExportPromotion Scheme provide financialassistance to register Handloom items inorder to give protection under the Actthrough the State Government / handloomagencies authorized by the StateGovernment. The programme has beentaken up by this office in the mid of 2007.This office provides Rs.1.50 lakh per itemor actual expenditure whichever is less toregister the handloom items. Financialassistance to register 32 items have beenprovided by this office so far to variousStates. The details are given at table 10.8.

In addition, three items have already beenregistered by the State Government ofTamil Nadu under the G I Act, which arei) Kacheepuram silk sarees ii) BhavaniJamukalam and iii) Madurai Sungudisarees. Moreover, Chanderi sarees andPochampally sarees, Kotpad Handloomfabric, Kota Doria, Solapur chaddar,Solapur Terry Towel have also alreadybeen registered under the said Act.

Action has already been initiated to register(1) Kovai cotton sarees (2) Salem Silkand (3) Arani silk sarees under the G IAct.

Table 10.8

Registration of Handloom Products under the Geographical Indications Act 1999

2007-08

Andhra Pradesh : 4 Items

1. Narayanpet2. Siddipet Gollabama3. Mangalagiri4. Venkatagiri sarees

Orissa : 8 items

1. Sambalpuri Tie & Dye

2. Nuapatna Tie & Dye

3. Habaspuri Design

4. Bomkai Design

5. Posapally design

6. Khandua Nuapatna

7. Berhampur Kumbha Sarees (silk)

8. Dhalapathar Temple Design fab

West Bengal : 8 items

1. Santipuri saree

2. Tangail saree

3. Tangail Jamdani saree

4. Dhaniakhali saree

5. Baluchari saree

6. Korial saree

7. Garad saree

8. Muslin

2008-09

Gujarat : 2 items

1. Silk Patola sarees - single Ikat

2. Woollen acrylic shawl -Kutch / Masharoo

Karnataka : 2 items

1. Guledgud Khana

2. Udupi saree.

Uttar Pradesh : 2 items

1. Banarasi Sarees

2. Banarasi Brocades.

Madhya Pradesh : 1 item

1. Maheshwari handloom items

Kerala : 5 items

1. Kasargod saree

2. Kuthampully saree

3. Chendamangalam saree

4. Balaramapuram saree

5. Kannur Handloom Furnishing

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Export Promotion Component

The objective of the Handloom ExportPromotion Component is to assist thehandloom cooperative societies &corporations in developing exportableproducts and assist handloom agencies ininternational marketing of their productsthrough publicity related activities andparticipation in International exhibitions,Buyer-Seller Meets etc., and to makeavailable to the exporters the latestinternational designs, colour forecasts,trends etc. Under this Component,assistance is given for the followingactivities:

1. Export Project

2. Participation in International fairs &exhibitions

3. Setting up of Design studios

4. Miscellaneous promotional events /activities.

During the year 2008-09, 14 ExportProjects were sanctioned and varioushandloom agencies participated in 9international fairs/exhibitions. During thecurrent year 2009-10, 15 Export Projectshave been sanctioned (as on 28/02/2010)and 13 international fairs have beenapproved for participation. A sum of Rs.320.68 lakh has been sanctioned so farfor export projects, fairs etc.

Hank Yarn Package Notification:

Handloom sector is largely dependent onthe organized mill sector for supply of itsprincipal raw material, i.e., yarn. Thissector uses the bulk of its yarn in the formof hanks. The Central Government ensuresregular supply of the yarn to the handloomsector by enforcing the order (Hank YarnPacking Notification) by making itobligatory on the spinning mills to pack aprescribed percentage of the yarnproduced by them in the hank form.

MILL GATE PRICE SCHEME (MGPS)

This scheme was introduced during 1992-93 with the objective of providing all typesof yarn to the handloom weavers'organizations at the price at which it isavailable at the Mill Gate. Under theScheme, the Government of Indiareimburses the transportation expensesinvolved in the supply of the yarn. NationalHandloom Development Corporation(NHDC), Government of India Undertaking,is the nodal agency for implementation ofthe scheme. The scheme has beencontinued during the 11th Five year Plan.The agencies, which shall be eligible toavail of the benefit of the scheme, are asunder:-

● All Handloom organizations ofNational/State/Regional/Primaryhandloom level.

● Handloom Development Centres.

● Handloom producers/exporters/manufacturers registered with HEPC/any other export promotion councilunder Ministry of Textiles/Director ofIndustries/Handloom of State/U.T.

● All approved export houses/tradinghouses/star trading houses forproducing handloom items.

● Members of recognized/approvedhandloom associations.

● NGOs fulfilling CAPART norms.

● Any other agency approved by theOffice of the DevelopmentCommissioner (Handlooms), Ministryof Textiles, Government of India.

All types of yarn required for productionof handloom items are covered under thescheme. The yarn is being arranged bythe NHDC from the mills as per therequirement of the user agencies/cooperative societies and transported tothe godown of the agency. There is also


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a provision for supply of the yarn to theindividual weavers through the yarn depotsapproved by the NHDC. 650 yarn depotsare in operation throughout the country ason 28th Feb, 2010. Under the Mill GatePrice Scheme, following assistance isbeing provided:-

(i) Freight reimbursement fortransportation of yarn.

(ii) Expenses of operating the yarn depot@ 2.5%.

(iii) Service Charges to the NHDC.

The expenses incurred towards freight fortransportation of yarn and on operatingthe yarn depot are initially paid by theNHDC to the eligible agencies and issubsequently reimbursed to the NHDC bythe Government of India. The maximumrate of freight reimbursement admissibleunder the MGPS for supply of yarn isgiven at table 10.9.

The scheme also provides assistance forsupply of yarn to the weavers in theremote areas through mobile vans for 20days in a month. Reimbursement onrunning the mobile vans is @Rs.1500/-per day or as per actual, whichever isless. Supply of yarn by the NHDC underthe MGP Scheme has gone up more thanthree times and registered a figure of855.12 lakh kgs. valued at Rs.793.77crore in the year 2008-09 as compared tothe figure of 220.86 lakh kgs valued atRs.228.16 crore registered during theyear 2005-06. During the year 2009-10

(upto Feb., 2010), 919.17 lakh kgs yarnvalued at Rs.837.29 crore has beensupplied by the NHDC under the scheme.The details of yarn supplied by the NHDCunder the scheme given at table 10.10.

Table 10.10

Yarn supplied by the NHDC under MillGate Price scheme

Year Yarn supply

Qty Value(In lakh kg.) (In lac Rs.)

2006-07 437.21 38783.47

2007-08 678.46 56305.00

2008-09 855.12 79377.57

2009-10 919.17 83728.62(upto Feb.,2010)

DIVERSIFIED HANDLOOMDEVELOPMENT SCHEME (DHDS)

The Central Sector Diversified HandloomDevelopment Scheme (DHDS) aims atupgrading the skills of the handloomweavers through organization ofworkshops and exhibitions, designdevelopment, documentation of traditionaldesigns and providing linkage and meetingthe market requirements. This schemeincludes components such asStrengthening of Weavers Service Centres(WSCs)/Indian Institutes of HandloomTechnology (IIHTs), Setting up of NewWSCs/IIHTs, National Centre for TextileDesign (NCTD), Research & Development

Table 10.9

Maximum Freight Rate Reimbursement under the MGPS

Item Plain area Hills/remote Area NE Region

Yarn Other than Silk/Jute 1.00% 1.75% 3.00%

Silk Yarn 1.00% 1.25% 1.50%

Jute/Jute blended yarn 7.00% 8.00% 8.50%

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(R&D) and Conducting Third HandloomCensus and issue of photo Identity cardsto Handloom Weavers. Against theapproved outlay of Rs.20.00 crore,including Rs.5.00 crore for the NER, asum of Rs.4.45 crore have been incurredtill 28.2.2010, during the year 2009-10.The component wise progress arereviewed in following paragraphs:

THIRD HANDLOOMS CENSUS ANDISSUE OF IDENTITY CARDS TOHANDLOOMS WEAVERS

The "Third National Census of Handloomsand issue of Photo identity cards (PIC) toall the eligible weavers" has beenentrusted to the National Council of AppliedEconomic Research (NCAER), New Delhion 19.3.08, through open competitivebidding process. The project wasscheduled to be completed within a periodof 18 months of award of work. However,approval of Competent authority forextension of three months has beenaccorded to cover all weavers households.The total revised approved cost of theproject is Rs.21.91 crore (Rs.20.36 plusRs.1.55 crore). The project involvescollection of information from about 25.5lakh weaver households over 70,000villages/urban blocks covering almost allthe districts in the country. This issue ofIdentity cards to the Handlooms weaverswill ensure that only genuine weavers getthe benefits of the various schemes beingimplemented by the Office of DevelopmentCommissioner for Handlooms for theirgrowth and sustained development, in ahassle free manner. An amount ofRs.15.27 crore has by now been releasedto the implementing agency. Census workin 13 States has already been completedand in rest of the States it is in progress.Total 24.45 lakh weaver households havealready been canvassed till 15.2.2010.

WEAVERS' SERVICE CENTRES (WSCS)

At present, twenty-five Weavers' ServiceCentres (WSCs) are located across the

country. They play a vital role in impartingtraining to weavers, upgrading the skilland productivity of weavers. They havedeveloped new designs and revivedtraditional ones. WSCs also renderextension services, which involve transferof design inputs, skills and technology toweavers. All the WSCs are functioningprimarily under Non-plan. During the year2008-09, a sum of Rs.2266.66 lakh (underNon-Plan) had been incurred against theRE Budget of Rs.2406.00 lakh. Duringthe current financial year 2009-10, anamount of Rs.2090.00 lakh has beenincurred upto November, 2009 againstthe budget provision of Rs.2295.10 lakh.

INDIAN INSTITUTES OF HANDLOOMTECHNOLOGY (IIHTS)

The Indian Institutes of HandloomTechnology (IIHTs) provide qualified andtrained manpower to the Handloom Sectorand undertake experimental and researchprogrammes on all aspects of thehandloom industry. There are five IIHTs,one each at Varanasi, Salem, Guwahati,Jodhpur and Bargarh in the CentralSector. In order to cater the needs of thehandloom sector for technically qualifiedmanpower, provision for opening newIIHTs in the Central Sector, whereverrequired, has been made in the 11th FiveYear Plan.

SETTING UP OF NEW IIHT ATBARGARH, ORISSA

In pursuance of Hon'ble Prime Minister'sannouncement in August 2006, the IndianInstitute of Handloom Technology (IIHT)at Bargarh (Orissa), has been set upw.e.f. 2.6.08 from the Panchayat CollegeCampus, Bargarh (Orissa). Thefoundation stone of its own building hasbeen laid by the Union Minister forTextiles on 17.11.08.

Every year, 270 students are offeredthree years Diploma Course in HandloomTechnology and 28 students in the Post


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Diploma Course in Textiles Chemistry byall the five IIHTs, set up under CentralSector. Apart from the above, threeIIHTs are also functioning at Venkatagiri(Andhra Pradesh), Gadag (Karnataka)and Champa (Chhatisgarh) under theState Sector.

During 2008-09, an amount of Rs.507.82lakh was incurred by IIHTs Guwahati,Varanasi, Salem and Jodhpur, againstthe budget provision of Rs.521.15 lakhunder Non-Plan and a sum of Rs.64.22lakh was incurred by IIHT, Bargarhagainst the budget provision of Rs.86.56lakh under the Plan Head.

NATIONAL CENTRE FOR TEXTILEDESIGN (NCTD)

National Centre for Textile Design wasset up in January 2001 at HandloomsPavilion, Pragati Maidan, New Delhi topromote traditional and contemporarydesigns to enable the textiles industry,particularly in the Handloom Sector, tobe responsive to the rapidly changingmarket demands. The activities of theNCTD are as follows:

● On-line Activities: Includedissemination of information relatedto textile designs through its websitewww.designdiary.nic.in. The siteprovides information relating tonational and international designtrends and colour forecast, designpool, and cyber yellow pages, panelof textiles designers and linkages toother textiles related sites.

● NCTD uploads various designs andlayouts developed by the professionalartists of the Weavers` ServiceCentres, based on the themes, andmake them available to users andsubscribers.

● Off-line Activities: Include holding ofspecial exhibitions on sustained basisfor increased product exposure and

awareness regarding handloomsproducts among the public.

The exhibitions of NCTD are held underthe title "TANTAVI", meaning " of theloom" in Sanskrit, which is also theregistered trademark of NCTD. NCTD isalso making available the developedfabric samples to the manufacturers andexporters for development in large scaleto cater local and export marketrequirement. NCTD converted full-lengththeme based fabric samples into three-dimensional forms, and displayed themin the exhibitions, which drew dueattention of the national levelmanufacturers and exporters. So far,Tantavi exhibitions on four themes -"Structured fabrics", "Patterned Fabrics"and "Coloured Structures & PatternsFabrics" and "Brocade Textile Fabrics"have been organized upto 2008-09. Thefifth in the series of "Tantavi" is based on"Silken" theme. Paper painted designsprepared by the Designers of WeaversService Centres, has been selected anddevelopment of prototype samples ofselected designs is under progress.

IMPLEMENTATION OF HANDLOOMSRESERVATION ACT, 1985.

The Handlooms (Reservation of Articlesfor Production) Act, 1985 aims atprotecting millions of handloom weaversand rich cultural heritage of India fromthe encroachment on their livelihood bythe powerlooms and mill sector. Atpresent, (as per latest amendment videNo. S.O. 2160 dated 3.9.2009) elevencategories of textile articles are reservedunder the Act. The physical progress ofpowerlooms inspections by variousimplementing agencies as on 31.10.2009,are at table 10.11.

It is expected that the EnforcementMachineries would achieve the target of2,29,040 powerlooms by March 2010.The Government of India has been

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providing Central Assistance to theStates/UTs for establishment ofEnforcement Machinery under the "Non-Plan" scheme of "Implementation of theHandlooms (Reservation of Articles forProduction) Act 1985". Details of theCentral Assistance released to theimplementing agencies under the schemeare at table 10.12.

Scheme for Reimbursement of onetime rebate @ 10%

The 10% Rebate Scheme was introduced

during the financial year, 2006-07 for aperiod of three years which has beendiscontinued on 01st April 2009. Thescheme was fully funded by theGovernment of India.

The main objective of the Scheme wasto provide marketing support to theNational level handloom organisations/agencies like (i) All India HandloomFabrics Marketing Cooperative Society(AIHFMCS), (ii) Handicrafts andHandloom Export Corporation (HHEC),along with State level organisations like

Table 10.11

The Physical progress of Powerloom Inspections under Handloom Reservation Act, 1985

Sl. Physical progress 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10No (upto 28.2.2010)

1. Targets for 1,82.280 1,91,387 2,00,949 2,09,290 2,15,575 229040PowerloomInspections

2. No. of Powerlooms 1,88,588 2,14,062 2,15,245 249462 237111 197210Inspected

3. No. of FIRs. Lodged 10 33 37 12 5 12

4. Convictions 7 10 9 11 3 52

5. Cases in pipeline — — — — — 62

Table 10.12

Central Assistance released to the implementing agenciesunder Handloom Reservation Act, 1985

Sl. Name of State 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10No. as on

28/2/2010

1. Andhra Pradesh - 14.58 11.09 71.90 17.72 –

2. West Bengal - 19.66 - 11.58 11.40 –

3. Gujarat 19.19 34.18 - - 56.70 57.82

4. Rajasthan 23.41 4.19 - - 28.74 26.06

5. Madhya Pradesh 7.20 6.23 - - 11.73 –

6. Haryana 5.60 - - 28.00 - 16.10

7 Tamil Nadu 64.60 41.16 78.91 38.53 23.71 132.78

Total Exp. 120.00 120.00 90.00 150.00 150.00 232.76


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(i) State Handloom Corporations/StateApex Cooperative Societies / HandloomFederations / Regional Handloomorganisations and (ii) Primary HandloomWeavers Cooperative societies etc. byway of reimbursement of 10% rebate onsale of handloom cloth generated bythem through their Emporia and othersales outlets and/or by organising/participating in special fairs, exhibitions,participating in National/Special HandloomExpos, District Level Events etc. Thiswould supplement their ongoing marketingefforts thereby creating scope for keepingthe production cycle alive and sustainthereby the existing employment ofhandloom weavers.

During the financial year 2008-09,assistance to the tune of Rs.53.32 Crorewas released under the scheme to 14States and one National level HandloomOrganization, which helped in liquidatinghandloom products worth more thanRs.500.00 crore. Hence in the 3 years ofimplementation, assistance to the tune ofRs.112.97 crore was released during 2006-07 to 2008-09 and helped the handloomsector to market handloom products worthmore than Rs.1000.00 crore.

ALL INDIA HANDLOOM FABRICSMARKETING COOPERATIVE SOCIETYLTD. (AIHFMCS)

The All India Handloom Fabrics MarketingCooperative Society Ltd., New Delhi wasestablished in 1955 with the twinobjectives of developing inter-State andInternational Trade for handloom fabricsproduced by the handloom weavers ofthe country. The Society is governedunder the Multi-State Co-operativeSocieties Act, 2002 and comes under thejurisdiction of Central Registrar ofCooperative Societies, New Delhi.

The membership of Fabrics Societyconsists of Registered State/RegionalLevel Apex Handloom Weavers

Cooperative Societies ('A' Class), Primary/Districts Level Handloom Weaver's Co-operative Societies ('B' Class) and StateGovernments, Government owned/controlled Corporation engaged inproduction and sale of handloom productsand such class or classes or associationof persons as permitted by CentralRegistrar under the provision of MultiCooperative Societies Act 2002 ('C'Class). During the year 2008-09, theSociety had a total of 1109 memberscomprising 23 ('A' Class), 1053 ('B" Class)and 33 ('C' Class) members. The Societyhad a paid-up share capital ofRs.7,67,11,500/- consisting of 141855shares as on Feb, 2010.

The main objective of the Society is toorganize and develop markets forhandloom goods both within the countryand abroad. To achieve this objective, theSociety has set up a chain of retailshowrooms known as "Handloom House"at various places in the country. Duringthe year under review, there were 21such Handloom Houses in Ahmedabad,Bangalore, Chandigarh, Chennai,Coimbatore, Ernakulam, Ghazipur,Gorakhpur, Gurgaon, Hyderabad, Kolkata,Lucknow, Salem, Madurai, New Delhi,Ranchi, Surat, Thiruvananthapuram,Thrissur, Varanasi and Visakhapatnam. TheSociety has its Export Houses at Chennai,Noida and Karur. The Society has also gotits branches at Singapore and Mauritiusgiving an impetus to marketing of IndianHandlooms in the foreign markets.

During the year 2009-10 (upto Feb,2010Provisional), the Society's sales turn-overwas Rs.3540.00 lakh, including domesticsale of Rs.3125.00 lakh. The Society'sexports during the year 2009-10 (uptoFeb, 2010 prov) were of the order ofRs.415.00 lakh as against the figure ofRs.667.33 lakh in the previous year. Thesociety reportedly has recorded a netprofit of Rs.30.00 lakh during the year2009-10 (upto Feb. 2010 prov.). The

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Society has been working in profitconsecutively for the last 49 years. Duringthe year 2009-10 (upto Feb. 2010), anamount of Rs.257.13 lakh was releasedas Marketing Incentives under IntegratedHandloom Development Scheme.

NATIONAL HANDICRAFTS &HANDLOOMS MUSEUM (NHHM)

The National Handicrafts and HandloomsMuseum popularly known as CraftsMuseum is located at Pragati Maidan,New Delhi. It is a sub-ordinate officeunder the Development Commissioner forHandlooms, Ministry of Textiles. Its mainobjectives are to increase publicawareness about the India's ancienttraditions of handicrafts and handlooms,provide an interactive forum for the craftspersons, designers, exporters, scholarsand public and help the crafts persons tofind a platform for marketing withoutmiddlemen and to serve as a resourcecenter for the Indian handicraft andhandloom traditions. Collection,conservation and preservation of craftsspecimen, revival, reproduction anddevelopment of Art and Craft are thebasic activities of the Museum.

The Museum has a collection of over32,000 artifacts consisting of Metal Icon,Lamps, Incense Burners, Ritualaccessories, items of everyday life, Woodcarvings, Painted wood and PaperMache, Dolls, Toys, Puppets, Masks,Folk and tribal paintings and sculptures,Terracotta, Folk & Tribal jewellery and anentire section of traditional Indian textiles.They are exhibited in Folk and tribal ArtGallery, Temple gallery, Courtly CraftsGallery and Textile Gallery and the restare kept in Museum Collection store.

ASSOCIATION OF CORPORATIONSAND APEX SOCIETIES (ACASH)

The Association of Corporation and ApexSocieties of Handlooms (ACASH) is a

National Level Apex Handloom Society,establishment in 1984 and was registeredwith the Registrar of CooperativeSocieties, Delhi under Society Act XXI1860.

The membership of the Society is for (a)State level Apex Cooperative HandloomSocieties (b) State HandloomDevelopment Corporation and (c) Nationalor inter-State Handloom Apex Societeisand Corporations to coordinate andpromote marketing in the Handloomsector. The ACASH is functioning as anodal agency for supply of handloomgoods to be purchased by the CentralGovernment Departments/Agencies/Public Sector Undertakings under SingleTender System (STS). The National andState level Handloom Corporations andApex Societies whose names werenotified by the Office of the DevelopmentCommissioner for Handlooms, Ministryof Textiles for production and supply ofhandloom goods through ACASH, arethe members of ACASH.

During the year 2008-09, ACASH hadreceived orders worth Rs.3,290.78 lakhand executed orders worth Rs.2,709.05lakh. During the year, 2009-10(upto Feb.2010), ACASH had received ordersworth Rs.30.58 crore and executedorders worth Rs.27.50 crore under STS.

HANDLOOM EXPOS/EXHIBITIONS

During the year, 2009-10, ACASH hadorganized 5 exhibitions, as at table 10.13.

During the Handloom Week 2009, ACASHhas organized 2 National Handloom Exposin Delhi and Chennai and 4 SpecialHandloom Expos at Mumbai, Jaipur,Kolkatta, Guwahati and Patna.

In addition to the above, exhibitionselaborated at table 10.14 are proposedto be conducted during the year,2009-10.


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Table 10.13

Sl.No. Name of Event Period Venue

1. Paridhaan 2009 30.07.2009 to 12.08.2009 August Kranti Bhavan,Bhikaji Cama Place,New Delhi.

2. Home Furnishing 2009 29.08.2009 to 13.09.2009 Handloom Pavilion,New Delhi.

3. India Weaves 2009 06.10.2009 to 15.10.2009 Dilli Haat, New Delhi.

4. Handloom 2009 14.11.2009 to 27.11.2009 Handloom Pavilion,New Delhi.

5. Shawl Show 2009 03.12.2009 to 18.12.2009 Handloom Pavilion.

Table 10.14

Sl.No. Name of Event Period Venue

1. Silks of India 2010 16.01.2010 to 31.01.2010 Handloom Pavilion.

2. Sarees of India 2010 06.02.2010 to 21.02.2010 Handloom Pavilion.

3. Cotton of India 2010 01.03.2010 to 14.03.2010 Handloom Pavilion.

4. Tie & Dye 2010 19.03.2010 to 02.04.2010 Handloom Pavilion.

HANDLOOM EXPORT PROMOTIONCOUNCIL (HEPC)

The Handloom Export Promotion Council(HEPC) was set up in the year 1965 withprime objective of promoting exports ofHand-woven products of cotton as wellas silk and readymade garments. Withthe increase in the quantum of exports,the Council at present caters only toexporters of cotton handloom fabrics andmade-ups, lungies and Real MadrasHandkerchiefs and other items madefrom cotton handloom fabrics. The Councilhas its head office at Chennai and itsRegional Office at New Delhi. ACommittee consisting of electedrepresentatives from the trade andGovernment governs the Council. TheCouncil, which started in 1965 with only96 members, has grown over the yearsto cover the entire country with amembership of about 1650 members.With the efforts of the Council, from a

mere Rs.11 crores in 1965-66, the exportsof Cotton handloom fabrics and made-ups had grown to 2633.26 crores in2002-2003. Nearly 7000 million meters ofcloth is produced annually by the industryof which 10% to 15% is exported to over100 countries. Two-thirds of our exportsare to the European Union and U.S.A.The following are the activities of theCouncil:

1. Dissemination of trade informationand intelligence to the memberexporters.

2. Publicity abroad for Indian Handloomproducts.

3. Facilitating product diversification andadaptation to meet modern marketrequirements.

4. Providing impetus to modernizationof handlooms for the export market.

5. Provision of design inputs to promoteexports of handloom products.

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6. Organizing business mission/buyerseller meet and participation in tradefairs abroad.

7. Consultancy and guidance servicesfor handloom exporters.

8. Liaison with the Government of Indiaon all procedural and policy mattersrelevant to the handloom export trade.

9. Dealing with trade complaintspertaining to handloom exports.

10. Liaison with import promotion andcommercial agencies abroad for thebenefit of handloom exporters.

25th Export Award Function

In its march towards its export promotionalactivities and to encourage the exporters,HEPC has been giving Export Awardsregularly to the exporters in recognitionof their outstanding export performance.Accordingly, the 25th Silver Jubilee ExportAward Function was held at Hotel TajConnemara, Chennai on 10th August,2009. In this Silver Jubilee Awardfunction, the meritorious exporters havebeen awarded for their excellent exportperformance for the years 2005-06, 2006-07, 2007-08 & 2008-09 Dr. M.K. Stalin,the Hon'ble Deputy Chief Minister ofTamil Nadu has distributed the exportawards to the award winners in thePresence of Shri Dayanidhi Maran,Hon'ble Union Minister of Textiles, Govt.of India. During the Function, the Hon'bleUnion Minister of Textiles also releaseda Special Souvenir brought out by HEPC.Further, 10 weavers were helped withHealth Insurance Cheques under theHealth Insurance Scheme of DCHandlooms.

Setting up of Design Studio

HEPC has prepared a project proposaland submitted to the Ministry ofCommerce & Industry for setting up ofDesign Studios at Kannur (Kerala), Erode

(Tamil Nadu) & Hyderabad (AndhraPradesh) under Market AssistanceInitiatives (MAI) Scheme and the proposalhas got the approval of the EmpoweredCommittee of MAI Scheme. The totalcost of the project at 3 centers isRs.1.98 crores, of which Rs.1.35 croresis grant from Ministry. Subsequently,HEPC has initiated the process ofinvolving local Exporters/ manufacturersassociation and availing Government ofIndia grant so as to enable the clusterto evolve designs suiting to the everchanging international marketrequirement. Subsequently, the DesignStudio at Kannur was commissioned on20-11-2008. The Design Studios at Erodeand Hyderabad are expected to becommissioned shortly.

Handloom Export Zone (HEZ)

In order to create a supply hub for themanufacture of identified export products,HEPC has conceived a novel project of itskind with a market linkage known as"Handloom Export Zone", which iscurrently under implementation at varioushandloom clusters at Nagercoil,Kancheepuram district, Thiruvannamalai,Virudhunagar and Thiruvalluvar district inTamilnadu to meet out the followingobjectives:

● Create a supply hub formanufacturing identified exportproducts (focus product)

● Provide quality products by impartingtraining on quality aspects and bysupplying accessories for qualitycontrol

● Increase the wage earning capacityof weavers by increasing productivityby way of loom, pre loom upgradation

● Improve the work environment byproviding basic amenities like toilet,water facilities etc.,


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Participation in Exhibitions organized by HEPC in India : 2009-10

Sl. Activity Date No. ofNo. participants

1 Heimtextil India, Mumbai 10th to 13th October 2009 10

2 IHGF (Autumn) - Greater Noida 10th to 13th October 2009 13

3 IHGF (Spring), Greater Noida 20-23rd Feb' 2010 16 (Approx.)

4 Tex-Styles India, New Delhi March 2010 40 (Approx.)

Table 10.15

Participation in Exhibitions organized by HEPC in abroad : 2009-10

S.No. Name of the fair Date No. of participants

1 Hong Kong Houseware 20th to 23rd April 2009 22fair, Hong Kong

2 EVTEKS fair, Istanbul, 21st -25th May 2008 10Turkey

3 Home Décor 2009, 3rd to 6th June 2009 8Poznan, Poland

4 20th India Home Furnishing 28th to 30th July 2009 10Fair, Osaka, Japan,

5 House & Gift Fair, Sao 15th to 18th Aug2009 5Paulo, Brazil

6 MACEF, Milano, Italy 4th to 7th September 2009 12

7 India Show, St. Pietersburg 30th sep to 3rd Oct'09 2

8 Heimtextil 2010, Frankfurt, 10 -13 January 2010 39Germany

9 Domotex 2010, Hannover, 16-19 January 2010 37Germany

10 Pret-a-porter, Paris, France 23-26th January 2010 8

11 IHF Fair, Chicago, USA March 2010 5

● Establishing market linkage withmerchant exporters

The HEZ project at Nagercoil will becommissioned during December, 2009

Export Promotion Activities

During the year 2009-10, the ExportPromotion activities undertaken by HEPCare given at table 10.15.

Workshops/Seminars organized byHEPC

In order to create awareness amongthe weaving/exporting community ofhandloom products about various aspectsinvolved in export trade, the Council hasorganized Workshops/Seminars in theplaces like i) Karur (Tamilnadu), ii)Chennai (Tamil Nadu), iii) Pochampalli

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(Andhra Pradesh), and iv) Srinagar(Jammu & Kashmir).

The Council is proposing to organizeWorkshops/Seminars in the remainingmonths in i) Madurai (Tamil Nadu), II)Cannnanore (Kerala), iii) Panipat(Haryana), iv) Bangalooru (Karnataka), v)Patna (Bihar), vi) Jaipur (Rajasthan), vii)Shillong (Meghalaya) and viii) Imphal(Manipur).

The following are the other promotionalactivities undertaken by HEPC:

1. The Council publishes a monthlyNewsletter titled "Handloom Export",which contains useful informationconnected with trade and policymatters, technical inputs, marketreports, fashion trends, tradeenquiries, statistical information etc.

2. The Council has brought out variousbooklets in connection with Buyer-Seller Meets, Trade Fairs Abroad forcirculation during the fair and also foruse as publicity material.

3. Council has been rendering its designservices through its CAD departmentfor the members as per theirrequirement. Besides, Council alsoprovides information on Colour trendhelping the members to develop theirproducts as per the colour trendprevailing in the market.

4. The Council is having an InternetEnquiry Club and about 20 productenquiries received directly fromvarious countries were forwardedto members registered for thispurpose.


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CHAPTER XI

HANDICRAFTS


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CHAPTER XI

HANDICRAFTS

The Handicrafts Sector plays asignificant & important role in thecountry's economy. It provides

employment to a vast segment ofcraftpersons in rural & semi urban areasand generates substantial foreignexchange for the country, while preservingits cultural heritage. Handicrafts havegreat potential, as they hold the key forsustaining not only the existing set ofmillions of artisans spread over lengthand breadth of the country, but also forthe increasingly large number of newentrants in the crafts activity. Presently,handicrafts contribute substantially toemployment generation and exports. TheHandicraft sector has, however, suffereddue to its being unorganized, with theadditional constraints of lack of education,low capital, poor exposure to newtechnologies, absence of marketintelligence, and a poor institutionalframework. In spite of these constraints,sector has witnessed a significant growthof 3% annually, and efforts are beingaugmented during the 11th Five Yearplan on the core issues for thedevelopment of the sector.

● Providing Infrastructural support forproduction & Exports

● Improve quality & productdiversification with more awarenessfor both stakeholders & consumer.

● A greater role for NGO asimplementing partners andparticipation of private resources -both human and financial.

In view of the 3% growth annually inHandicrafts sector, it is presumed that thetotal employment in the sector as at the

end of 10th plan is 67.70 lakhs, which atthe beginning of the 10th plan was 60.16lakhs, showing an annual growth rate ofabout 3%, on the basis of this growth inthe sector it is expected this employmentto reach 80 lakhs by the end of 11th Plan.

The plan expenditure during the periodalso witnessed a steady growth increasingfrom Rs.71.65 crores in 2002-03 toRs.220.00 crores in 2009-10. Theproduction during the period 2002-03 hasdecreased from Rs.19,564.52 crores toRs.19.375.88 crores during the year 2008-09 although in the intervening period ithad shown a rise in the graph of productionin view of increase in exports whichstarted decreasing from the year 2006-07due to rupee appreciation against US $ &recession in World Economy. The exportsduring the period decreased fromRs.12434.38 crores in the year 2002-03to Rs.10,891.85 crores at the end of theyear 2008-09 registering a cumulativedecline 12.40%, The budget outlay for theyear 2010-11 has been proposed for Rs.285 crores.

Handicrafts activity being a State subject,its development and promotion are theprimary responsibility of every StateGovernment. However, the CentralGovernment is supplementing their effortsby implementing various developmentalschemes.

Schemes for Development ofHandicrafts

During the XIth Plan the Government ofIndia has implemented six genericschemes in the central sector for holisticgrowth and development of handicrafts


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sector in the country. The schemesrecommended for implementation during11th five year plan are as under :

I. Baba Saheb Ambedkar HastshilpVikas Yojana

This scheme aims to promote Indianhandicrafts by developing artisans' clustersinto professionally managed and self-reliant community enterprise on theprinciples of effective member participationand mutual cooperation. The thrust of thescheme is on a project based, needbased integrated approach for sustainabledevelopment of handicrafts throughparticipation of craftspersons. This wouldlead to their empowerment. Thecomponents of the scheme are as under:

A. Social interventions

i. Diagnostic Survey and formulation ofProject Plan

ii. Community empowerment formobilization of artisans into Self HelpGroups

iii. Issuance of Identity cards to theartisans(Departmental activity)

B. Technological interventions

i. Development and supply of improvedmodern tools

ii. Design and Technical DevelopmentWorkshops

iii. Integrated Design and TechnicalDevelopment workshops.

iv. Training of artisans

v. Organizing Seminars & Symposiums.

vi. Technological status and need basedstudy and research provision.

C. Marketing interventions

i. Organizing Exhibitions

ii. Publicity through printing and

electronic mode and brand buildingcampaign

iii. Setting up of Handicrafts emporia inown/rented/outright purchase ofbuilding and renovation

iv. Market assessment, productassessment study and Study cumexposure tours for artisans and otherstake holders tour

v. Establishment of warehousing cumCommon work shed

vi. Entrepreneurship DevelopmentProgramme.

D. Financial interventions

i. Margin Money support

ii. Wage compensation to clustermanager

iii. Service charges for ImplementingAgencies

iv. Engagement of experts/ consultants/institutions, etc., for providing needbased assistance including guidingand monitoring.

v. Credit Guarantee (Departmentalactivity)

E. Cluster specific infrastructurerelated interventions

i. Establishment of Resource Centrefor major crafts

ii. Establishment of E-kiosks

iii. Creation of Raw Material Banks

iv. Setting up of Common Facility Centre.

v. Technological assistance by settingup of Facility Centres by Exporters/Entrepreneurs, etc.

During the year 2009-10 till December -09, an amount of Rs.42.76 crores hasbeen released for various interventionsand to implement 58 Nos. of new projectscovering about 17000 artisans consisting

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of 850 Self Help Groups, and during theyear 2009-10 for the period ended up toDecember 2009, One lakh artisans havebeen covered under Skill DevelopmentComponents. 57486 number of artisanscredit cards have been issued all overIndia representing Credit worth of Rs.108crores.

II. Design & Technical Up-gradation

The scheme aims to upgrade artisan'sskills through development of innovativedesigns and prototype products foroverseas market, revival of languishingcrafts and preservation of heritage etc.The scheme has the following components:

Skill up-gradation

● Departmental activities of RegionalDesign & Tec. Dev. Centres.

● Assistance for training the trainers.

● Assistance to Shilp Gurus.(heritagemasters)

Assistance for Design and TechnologyUpgradation

● Design & Technology DevelopmentWorkshop.

● Integrated Design and TechnologyDevelopment Project.

Documentation Preservation and revivalof rare and Languishing crafts

National Award for outstandingcontribution in Handicrafts Sector

Financial Assistance for Institutions tobe set up under State Initiatives

● State initiative Design Centres.

● Handicrafts Museum.

Inauguration of Cluster Creation, 2010 by Shri Dayanidhi Maran, Minister of Textiles in thepresence of Smt. Panabaaka Lakshmi, Minister of State for Textiles at Dilli Haat


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Setting up of Design Bank

Financial Assistance to Central Govt.sponsored Institutions

Product Development programme forexporters

During the year 2009-10 Rs. 14.00 croreshave been allocated under Plan schemeof Design Scheme including NER. Againstan allocationof Rs. 14.00 crores, anamount of Rs. 12.16 crores have beensanctioned till 31st December, 2009 forthe activities viz 425 Design Workshops(Fresh/reimbursement), 22 IntegratedProjects (Fresh/reimbursement). 04 StateInitiative Design Centre (Reimbursement),07 Shilp gurus (reimbursement), 02Museum (Fresh/reimbursement), 01Design Bank (Fresh), departmentalactivities undertaken by RD&TDCs andpublicity.

III. Marketing Support and Servicesschemes

The Marketing Support Scheme and theExport Promotion Scheme runningseparately in the Tenth Plan have beenclubbed in Eleventh Plan and the Clubbednew Scheme titled as "Marketing Support& Services Scheme". The scheme hasthree broad following components :

i) Domestic Marketing

● Marketing Events covering CraftsBazaar/Gandhi Shilp Bazar;Exhibitions; Sourcing Shows & Travel& transportation assistance.

● Marketing Infrastructure covering;Urban Haat; Emporia; Marketing Hubin Metros; Sourcing Hub in majorclusters & Ware-housing facilities.

● Marketing Services coveringWorkshops/Seminars & MarketingStudies within the country.

Note : The Gandhi Shilp Bazar is a novelconcept whereby it is ensured that atleast

one Bazar is always on every day in theyear somewhere in the country. Thecalendar of these bazaars is finalized andcirculated at the beginning of the year sothat the artisans desirous of participationget sufficient advance notice to plan fortheir production and participation in theevent.

ii) International Marketing

● Marketing Events covering CulturalExchange Programmes; Fairs &Exhibitions; Thematic Shows;Reverse Buyer Seller Meet &Participation of Entrepreneurs/ SHGsFederations/National Awardees.

● Social and Welfare Measurescovering Initiatives to counterproblems arising out of National/International laws.

During the year 2009-10, 52 eventsconducted in different places.

iii) Publicity

● Publicity through print and electronicmedia.

● Publicity through maps, folders,brochures catalogues and pamphlets,etc.

● Publicity through Website, CD ROMsetc.

● To create Brand image for IndianHandicrafts.

During the year 2009-10 Rs. 21.27 croreshave been released in respect of DomesticMarketing Section for 50 Gandhi ShilpBazaar, 43 Craft Bazaars, 101 Exhibitions,5 sourcing shows, 1 Marketing hub inMetros, 3 renovation of emporium, 86State/Local level Marketing workshopsand 74 Awareness Camp in Schools andHiring of Stalls by various regions.

IV. Human Resource DevelopmentScheme

The Human Resource Development

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Scheme has been formulated to providequalified and trained workforce forestablishing a strong production basecoupled with improvement in quality anduse of appropriate techniques, processesand innovative design to meet presentday market requirement.

(i) Training Through EstablishedInstitutions.

(ii) Training in Innovative Designs forthe persons involved in Patternmaking/Talim writing/Plaster/RubberMoulds/Block making etc.

(iii) Training of Artisans/SHG leaders/NGO in capacity building.

(iv) Conducting Seminars/Workshops

During the year 2009-10 Rs. 5.33 croreshave been released upto Dec. 2009 for 4Institutional Training programmes and 111Programmes under guru shishyaPrampara. A budget of Rs. 6.22 croreshas been approved for implementation ofdifferent projects under the scheme foryear 2009-10.

V. Research & Development

Research and Development scheme wasintroduced to conduct surveys and studiesof important crafts and make in-depthanalysis of specific aspects and problemsof Handicrafts in order to generate usefulinputs to aid policy Planning and fine tunethe ongoing initiatives; and to haveindependent evaluation of the schemesimplemented by this office. The schemehas been continued for implementationduring the Eleventh Five Year Plan.Following activities are being undertaken:

● Survey & Studies

● Conducting all India Census ofhandicraft artisans @ 20% districtsof the country every year.

● Registration of Crafts underGeographical Indication Act &

Financial support for certification ofraw materials and products.

● Setting up of new labs/strengtheningof existing labs for standardization/certification of raw materials.

● Assisting handicrafts exporters inadoption of GSI global identificationstandards and for bar coding,including handicrafts mark for genericproducts.

During the year 2009-10 Rs. 2.40 croreshave been released for 10 studies, 1Seminar-cum-workshop & appointment ofNodal agency for pre-check andcoordination of Census work of 40%districts in 6 regions of the country for theyears 2007-08 & 2008-09 which is alreadyunder way and at different stages ofcompletion. Census for remaining 60% ofthe districts is under finalization. A budgetof Rs. 09.13 crores has been approved forimplementation of different projects/studiesunder the scheme for year 2009-10.

VI. Handicrafts ArtisansComprehensive Welfare Scheme

The scheme has been included in the11th Five Year Plan as one of the majorschemes with the following two maincomponents, aimed at Insurance Coverand Health Care of Handicrafts Artisanand his family:

A. Rajiv Gandhi Shilpi Swasthya BimaYojana

Rajiv Gandhi Shilpi Swasthya Bima Yojanaaims at financially enabling the artisanscommunity to access to the best ofhealthcare facilities in the country. Thisscheme covers not only the artisans butalso any three members out of spouse,dependent parents and children.

B. Bima Yojana for HandicraftsArtisans

The objective of "Bima Yojana For


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Handicrafts Artisans" is to provide lifeinsurance protection to the HandicraftsArtisans, whether male or female, betweenthe age group of 18-60 years.

During the year 2009-10 Rs. 61.26 croreshave been released upto Dec. 2009 forcoverage of 4,43,000 artisans under(RGSSBY) & under (Bima Yojana). Abudget of Rs. 71.60 crores has beenapproved for bringing artisans underInsurance cover under the scheme foryear 2009-10.

Export of Handicrafts

The export target for 2009-10 has beenfixed at Rs. 32960 crores including carpets.During the month of Dec. 2009 registeringa decrease of (-) 2.07% in rupee termsand (-) 10.00% in dollar terms incomparison to the export during the year2008-09 both in Handicrafts andhandmade carpet & other floor coverings.

The reason for decrease in export is dueto the impact of rupee appreciation, lowrealization on export proceeds andrecession in world economy. Details ofexport of both Handicrafts & Carpet maybe seen on table 11.1.

Activities undertaken during 2009-10by Export Promotion Council forHandicrafts

During the year 2009-010, Export

Promotion Council for Handicraftsundertaken the following main activities:

● Providing commercially usefulinformation and assistance tomembers in developing andincreasing exports.

● Offering professional advice andservices to members in areas oftechnology upgradation, quality anddesign improvement, standards andspecifications, product development,innovation etc.

● Organizing visits of delegation of itsmembers abroad to explore overseasmarket opportunities.

● Organizing Indian handicrafts andGifts Fair at New Delhi.

● Interaction between exportingcommunity and Govt. both at theCentral and State level andrepresents in almost all thecommittees/panels of Central andState.

● To create an environment ofawareness through Workshops on"Export Marketing, Procedures andDocumentation", packaging, DesignDevelopment, Buyer Seller Meet,Open House etc. interaction withCentral and State Govt. and variousother similar programmes.

Table 11.1

Export of Handicrafts(Rs. in Crores)

Item 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10(April -

Dec.)

Carpet & otherfloor covering 2779.79 2583.62 3082.06 3674.86 3524.73 2708.73 1737.47

Other Handicrafts 13555.48 16984.14 16185.59 17288.14 14012.05 8183.12 5536.28

Grand Total (A+B) 16335.27 18567.76 19267.65 20963.00 17536.78 10891.85 7273.75

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● The activities of the EPCH, notificationof Govt. Orders, information on TradeFairs and other relevant informationis disseminated by quarterly journalCRAFTCIL.

Activities undertaken during 2008-09by Carpet Export Promotion Council

Carpet Export Promotion Council isregistered as a Company Limited byGuarantee U/s 25 of the Companies Act,1956 on 12th day of February, 1982.

The Main Objects of the Council is tosupport, protect, maintain, increase andpromote the export of Handknottedcarpets, woollen druggets and floorcoverings by such methods as may benecessary or expedient.

MEMBERSHIP

This Council has enrolled 1954 members.

ACTIVITIES OF THE COUNCIL FORTHE YEAR 2009-10

● Organized participation in EURASIAFLOOR-2009 where 10 member-exporters were participated andgenerated a good amount ofbusiness.

● Organized participation in DomotexMiddle East in Dubai from 17-19May, 2009 where 19 Member -Exporters participated and generateda good amount of business.

● Organized participation in 2009-Qinghai International Carpet Fair from20-23 June 2009 where 10 MemberExporters participated.

● Organized participation in Design &Decoration Show from 16-19 July2009 in Melbourne (Australia) where12 Member-Exporters participated.And obtained good number ofenquiries and business.

● Organized participation in 39th House& Gift Fair of Sao Paulo, Brazil from15-18 August, 2009 where 21member-exporters participated andgenerated good amount of business.

● Organized India Carpet Expo from 3to 6 October, 2009 at Varanasi (U.P.).The Expo was inaugurated by Hon'bleMinister of State for Textiles. 203Member-Exporters displayed theirwide range of products and 247overseas carpet buyers visited theExpo. Business worth Rs. 250.00crores has been generated duringthe Expo.

● Organized participation in Japantex2009 from 11-13 November, 2009 atTokyo (Japan) where 9 Memberexporters participated and obtainedbusiness and enquiries.

DETAILS OF SOCIETIES/INSTITUTES

INDIAN INSTITUTE OF CARPETTECHNOLOGY (IICT), BHADOHI

Indian Institute of Carpet Technology"Bhadohi (IICT) has been set up by Ministryof Textiles, Govt. of India in 1998 as aregisterd Society under the SocietyRegistration Act, 1860. IICT became trulyfunctional in 2001 by launching B.Tech.(Carpet & Textile Technology) programmewith 20 intake which has been raisedsubsequently. IICT was set up by Ministryof Textiles, Government of India to provideall possible technical support to the Carpet,Textile & other related sectors. Institutehas tried to fulfill long time pendingdemand of the sector for technical expertsthrough its two batches B.Tech.Technocrats. IICT is providing qualityeducation to its students by targeting tomeet the anticipated requirements of thestake holders through formal or informalfeedbacks from the various organizations.Other trainees of the institute have alsobeen doing well and holding a good


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position in the organizations. Institute hasbeen ISO-9000:2001 certified and itslaboratory is NABL (National AccreditationBoard for Laboratories) accredited.Testing reports given by IICT are validin many countries of the world B. Tech.programme of the institute is approved byAICTE, New Delhi & affiliated to U.P.Technical University, Lucknow, It is alsoapproved by the Textile Institute,Manchester (UK).

Present intake in B.Tech. programme is60 which are filled up through AIEEE &Central Counseling Board (CCB), NewDelhi. Besides B.Tech. Programmeinstitute is also conducting IDLP & Short-term industry driven programme. IDPLconsists of 7 different diplomas out of 30topics where as Short Term consists of 3programmes. The Institute is alsodeveloping the Modular Employable Skill(MES) for the carpet sector. The Instituteis also a member of I.S.T.E and CII.Institute is meeting the mandate throughcreated four portfolios over the last 8functional years.

The activities undertaken by the instituteduring the year 2009-10 are as under:

● Human Resource Development(HRD): As per CCBrecommendations, the admissions inB.Tech. 1st year & lateral entry inB.Tech 2nd year is completed for thesession 2009-10.

● International Distance LearningProgramme (IDP): The total fee forall 6 modules for a Diploma isRs.36000/-. DEC approval has beenobtained.

● Sort Term Training Programme:-The courses are running smoothly.

● NBA Accreditation: The NBAaccreditation is already obtained forthree years.

● Design Creation & Development

(DCD):- Under this 377 new designsdeveloped.

● Sample Testing:- 1122 SampleTesting.

● Project on "Study on survey anddocumentation on carpet dyeingunder R&D head has beencompleted.

● Project on "An Exploratory Studyfor Starting Training Centres forTraditional Skills Transfer in CarpetIndustry" has been completed.

ON GOING PROJECTS

● Setting up of Design Bank in Carpetdesign at Bhadohi.

● Skill development programme onapplication of computer & IT in carpetIndustry.

● Documentation pm "Integrated Designand Technical Development projectin Homotextile Fabrics".

● IICT Laboratory has beensuccessfully assessed & accreditedfor NABL.

● Snehabha backing, invented by IICT,has been accepted forcommercialization by MSME,Government of India & Govt. of U.P.in P.P.P. module.

● A book titled "Advances in CarpetManufacture" authored (2 chapters)and edited by Prof (Dr.) K.K.Goswamihas been published by WoodheadPublishing Ltd. U.K.

● Seminar titled "Colours and Designson Carpet & Textiles" organized withEUPEA on 27th May 2009.

● Awareness programme organized onREACH in association with APITCOon 27th Nov. 2009.

● Awareness programme on

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"Handicrafts with special referenceto Carpet" sponsored by DC(HC),Ministry of Textiles, Govt. of Indiawas organized on 14th and 15thDec. 2009.

● Two students from 2005-09 batchare being awarded for gold medaland Silver medal from UPTU inB.Tech.

Metal Handicrafts Service Centre(MHSC), Moradabad

MHSC meets the international requirementof art metal wares sector in areas of post-production finishing processes. It is underthe administrative control of office ofDC(Handicrafts) and is managed byGoverning Council consisting ofrepresentatives of Government of India,government of UP and representatives oftrade and crafts. The center has thefollowing division:

● Electroplating shop

● Training

● Lacquering

● Powder coating

● Polishing shop

● Research Testing and CalibrationLaboratory.

Activities

The MHSC is providing assistance in thefollowing areas for the development of thesector :

● Common facility services inlacquering, powder coating,Electroplating of Nickil, Silver, Gold,Copper, Brass, Chrome and Antiqueplating;

● Sand/shot Blasting to the Art metalware Industry of Moradabad.

● Training in Finishing technologiesand quality control for Artisans and

manufacturers of Moradabad andother Cluster of India and abroad.

● Research, Testing and Calibrationlaboratory is providing all facilities fortesting on metal, metal finishing andhandicrafts ware like metal coatingthickness, testing of toxic elementspresent e.g. lead cadmium, mercury,hexavalent chrome etc., corrosiontest, analysis on metal and its allaysand bursting strength test etc.

● Consultancy to implement project ofcommon facility entre on turnkeybasis.

● Research and Development work.

Under R&D programme an eco friendlyplasma polymerization system isdeveloped to coat brass articles by silicondioxide coating with the assistance ofInstitute of Plasma Research GandhiNagar (Gujarat).

A testing laboratory has been establishedat MHSC, Moradabad to cater to qualitycontrol services of the trade. Laboratoryis ISO & NABL certified.

MHSC is also implementing Mega Clusterproject where a Common Facility Centreat a total cost of Rs. 7 crore (approx)would be established in metal finishing.

National Centre for Design & ProductDevelopment (NCDPD), New Delhi.

NCDPD was set-up with the view to focusexclusively on design development,product development and development ofdesign sector for handicrafts industry forpromoting exports. An organization underSociety Act namely National Centre forDesign & Product Development (NCDPD)was set up at Okhla, New Delhi withbranch office at Moradabad in 1999 tofocus on:

● Development, adoption of newdesigns, pattern and product


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development ensuring effective andefficient utilization of existing skilledmanpower resources andassimilation/adoption of the same.

● Improvement of product design andquality and introduction of the samein the industry

● Improvement of the industry's wrongpractices with regards to internationalmarket

● Upgrading the skills of craft persons

● Create appropriate and broader jobopportunities

During the year 2009-10, the NationalCentre for Design and ProductDevelopment following activities weresanctioned:

● Ten Design and TechnicalDevelopment Workshops in differentcrafts.

● One Design Bank.

● Five Integrated Design Projects indifferent crafts.

Bamboo & Cane Development Institute(BCDI), Agartala

The BCDI, Agartala had been setup withan objective of spearheading the use oflocally grown natural materials bamboo &Cane, as a driver of economicdevelopment and change in the age ofenvironmental consciousness and globalcompetitiveness. The BCDI once fullycommissioned shall provide platform forhuman resource development andresearch to understand and mobilize thepotential for innovations that can hastenthe economic and social development ofsmall rural communities and individualcraftsmen particularly in the North Easternregion. Thus BCDI will be a platform forthe use of bamboo as a vehicle forsustainable development of North Easternregion and for India as a whole.

BCDI has been envisaged at a totalproject cost of Rs.14.61 crores out of thisbuilding has already been constructed ata total cost of Rs.6.57 crores. In order tooperationalise Bamboo and CaneDevelopment Institute (BCDI), an agencynamely i.e. NCDPD has been assignedthe task of undertaking day to daymanagement of BCDI, Agartala with theapproval of HMOT. A sum of Rs.2.02crore has been sanctioned in favour ofNCDPD which represents the payment ofrecurring and non-recurring expenditurefor operationalization of Institute, Agartala.

IMPORTANT PROJECTS

Mega clusters at Moradabad andNarsapur

Mega cluster approach is a drive to scaleup the infrastructural and production chainat Handicrafts clusters which haveremained unorganized and have not keptpace with the modernization anddevelopment that have been taking placeso far. Consequently, there has not beenany addition of fresh impetus ofdevelopment and optimum realization ofoutput in the handicrafts sector, which isnot only the backbone of long traditionalheritage and cultural linkages. Theprospects of this sector lie in infrastructuralUpgradation, modernization of themachinery and product diversification.Innovative manufacturing as well asdesigning know-how, furthered by brandbuilding of the native products hold thekey to creating a niche market for theproducts manufactured by the clusters.The proposed programme is expected tosupport the Upgradation of infrastructuralfacilities coupled with market linkages andproduct diversification.

The scheme envisages Government ofIndia support to the extent of seventycrores per Mega cluster. Theimplementation of the scheme is throughPPP mode where the Government of

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India share has been designed in such amanner that it tapers down over theproject implementation period.

At present both the Mega Cluster projectsare at different stages of implementation.In case of Mega cluster at MoradabadRs.25.75 crores have been sanctionedand Rs.10.29 crores released during theyear 2009-10 (upto December 2009.

Consequent upon the Hon'ble FinanceMinister's Budget announcement 2009-10, two new mega cluster projects forcarpet Sector at Mirzapur-Bhadohi (U.P.)and Srinagar (J&K) have been taken upfor implementation. The scheme envisagesGovernment of India support to the extentof seventy crores per Mega cluster.

INDIA EXPOSITION MART

India Exposition Mart set up at GreaterNoida provides permanent contact pointfor foreign buyers throughout the year fora continuous buyer seller interaction. Themart has 1800 outlets equipped withResource centre and latest informationtechnology facilities.

URBAN HAAT

So far setting up of 36 Urban haatsacross the country have been approved.18 Urban Haats at the following locationshave become operational :

● Jammu (J&K State)

● Sringar (J&K State)

● Uchana Karnal (Haryana State)

● Jodhpur (Rajasthan)

● Gohar Mahal (Bhopal M.P.)

● Ahmedabad (Gujarat State)

● Mysore (Karnataka)

● Tirupati (Andhra Pradesh)

● Bhubneshwar(Orissa)

● Konark (Orissa)

● Agra (UP)

● Bhuj (Gujarat)

● Pitampura (Delhi)

● Dimapur (Nagaland)

● Raipur (Chattisgarh)

● Jaipur (Rajasthan)

● Dilli Haat Part-II (Delhi)

Website Development

Office of the Development Commissioner(Handicrafts) is in process of developmentof two portals are as follows:

AHVY CLUSTER PORTAL

Office of the Development Commissioner(Handicrafts) is in the process ofDevelopment of AHVY Cluster Portal forpromotion of Handicrafts with the objectiveto provide marketing linkage to handicraftsclusters covered under AHVY scheme.

The portal will have all the informationof AHVY cluster such as Detail of AHVYscheme, AHVY Beneficiaries, Cluster map,Cluster Directory, Design Gallery, and 50products of each clusters shall beshowcased in the portal. Initially 500cluster shall be covered. The portal willact as a platform to showcase the productsand the buyer can directly interactwith the cluster group through e-mail/telephone.

STATUS

As of now the structure of website hasbeen finalized, around 12924 productsphotographs and data of 431 implementingagencies have been categorized anduploaded in the website. Further datacollection and development is in progress.It expected to launched the portal by next3 months.


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THEME BASED CLUSTER PORTAL

Office of the Development Commissioner(Handicrafts) is in the process ofdevelopment of a "Theme Based ClusterWebsite" in 8 foreign languages forpromotion of Handicrafts in respect ofidentified themes with an objective toprovide marketing platmform covering allstake holders such as Shilp Gurus,National/State Awardees, National MeritCertificate, Artisans under AHVY Clusters,Entrepreneurs, Exporters, Retailers andto facilitate foreign buyers to access thisportal. This website will also guide thetourists visiting 18 tourist places to reachthe desired handicrafts outlets (emporium/retailers) to make their purchases.

Themes identified are:

● Needle Craft

● Natural Fiber and Eco friendly.

● Tribal Craft

● Fashion Accessories

● Festival Decorations.

The portal is proposed to have cataloguewith photographs of 45000 products ofabove 9000 handicrafts entities, facility tosend email inquiry directly to entity, profile& contact information of entity, linkage towebsite of entity (if any) search options,News and Events, etc.

STATUS

As of now the structure of has beenfinalized, 13000 products photographshave been categorized and added to thewebsite.

Snaction of Training and Designinterventions to 1.00 Lakh artisans forskill enhancement

A comprehensive drive for skillenhancement of artisans was undertakenand Training and Design Development

programmes for more than 1.00 lakhartisans were sanctioned.

The details of Training & capacitydevelopment sanctioned for artisans are:-

1. Under Ambedkar - 85300Hastshilp Vikas Yojana

2. Under Human Resource - 8115Development

3. Under Design & Tech. - 11740Up-gradation

Total - 1,05,115

Creation of Marketing Platform forhandicraft products using network ofDelhi Metro Corporation

Delhi Metro Rail Corporation has agreedto establish 160 kiosks exclusively forhand crafted products at its differentstations of Metro network in NCR.Accordingly, a project at a total cost ofRs.41.00 crore has been sanctioned withthe share of Office of DC (Handicrafts) asRs. 10.00 crore and rest of the amountwill be invested by DMRC. 1st installmentof Rs.5.00 crore towards GoI's share hasalready been handed over by Secretary(Textiles) to Shri E. Shreedharan, MD,DMRC.

Census of handicrafts Artisans in thecountry

The Census of Handicrafts on the framedpolicy of covering 20% districts of thecountry every year was started in the year2007-08. Based on this policy the censusoperation was continued for further 20%/40% of the districts in the year 2008-09.The policy however was changed on therecommendation of ParliamentaryStanding Committee on Labour to haveone time census/survey conducted. Theprocess of awarding of census work toqualified organizations for the remaining60% districts in the country has beencompleted.

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Availability of free design forHandicrafts Artisans

M/s NCDPD has launched website toprovide free designs to different stakeholders. Around 1000 designs have beenkept in public domain through websitewith addresswww.handicraftdesignbank.com:

Camp approach for Artisan Credit Card

A cluster based approach in consultationwith different PSU Banks was undertaketo facilitate credit availability of artisansthrough Artisan Credit Cards. Camp wereorganized in major clusters likeMoradabad, Jodhpur, Saharanpur, Purietc. where artisans were mobilized forfilling the forms of Artisans Credit Card.All other documentation were also

completed in these camps. 1,00,000 formsof Artisans Credit Card from entire countryhave been targeted and forwarded todifferent PSUs for issuance of ArtisansCredit Card. 12000 cards have beenissued leading to credit facilitation of 35crore.

Celebration of Handicrafts Week

Handicrafts Week was celebrated allacross the country from 8-15 December2009. The curtain raiser for this week wasmaster creation programme in which artwork of 150 awardees were displayed atDilli Haat. The Handicrafts Week wasinaugurated by Shri Dayanidhi Maran,Hon'ble HMOT. Further events includingworkshops, health Camps. Awarenesscamps, Exhibitions etc. were held allacross the country to celebrate the week.


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CHAPTER XII

PUBLIC SECTORUNDERTAKINGS


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NATIONAL TEXTILE CORPORATIONLIMITED (NTC)

The National Textile CorporationLimited (NTC) was incorporated inApril 1968 to manage the affairs of

the private sector sick textiles mills, whichwere taken-over by the Government underthe three Nationalization Acts (first theSick Textile Undertakings (Nationalization)Act, 1974, thereafter the Swadeshi CottonMills Company Limited (Acquisition andTransfer of Undertakings) Act, 1986 andthen the Textile Undertakings(Nationalisation) Act, 1995).

It was also proposed to rehabilitate andmodernize these mills after the take overand expand them wherever necessarywith a view to make them economicallyviable. NTC(HC) Ltd., the HoldingCompany, having its registered office atNew Delhi, was managing its mills through9 Subsidiary Corporations, having 119mills initially.

CAPITAL STRUCTURE

Initially NTC Ltd. had an Authorized Capitalof Rs.10.00 crores which is now Rs.5000crores as on 31st March,2009 with thepaid up capital of Rs.3062.16 crores.

REHABILITATION OF NTC

Eight out of nine Subsidiaries of NTCwere referred to BIFR under the provisionsof the Sick Industrial Companies Act(Special Provisions) during 1992-94 onaccount of continuous loss. The BIFRapproved the Rehabilitation Scheme forthese Subsidiaries in February / July,2002 and the 9th Subsidiary was also

CHAPTER XII

PUBLIC SECTOR UNDERTAKINGS

referred to BIFR in October, 2002. TheBIFR sanctioned Revival Scheme for NTC,which has been revised in 2006 & 2008.In accordance with the scheme, out oftotal 119 mills, 77 mills have been closedand 2 have been transferred to the StateGovt. of Puducherry. 24 mills are to bemodernized by NTC itself of which 17mills have been modernized. 16 are beingmodernized through Joint Venture route.All the 9 Subsidiaries were merged withthe Holding Company and NTC is todaya single Company as against 10companies in the past.

The cost and means of finance for theModified Rehabilitation Scheme 2008 (MS-08) is given at table 12.1.

SUBSEQUENT DEVELOPMENTS

The above MS-08 was approved by theBIFR on 4.9.2008. As envisaged in thetable 12.1, the Modified Scheme (MS-08)takes into account the variousmodifications due to changed economicscenario particularly in textile industry,advanced technology and cost escalation.The total cost of the scheme is Rs.9102.72 crores. It has various relief andconcessions as envisaged in the earlierschemes of erstwhile subsidiaries. Actionis in process to obtain approval of theCabinet on MS-08.

INAUGURATION

On 22.8.2009, Minister of Textiles, ShriDayanidhi Maran inaugurated fourmodernized mills namely (1) SriRangavilas Mills (2) Pankaja Mills (3)Cambodia Mills and (4) CoimbatoreMurugan Mills.


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Table 12.1

New Scheme "MS-08"

Amount (Rs. in Crores)

A) COST OF SCHEME Rs. in Crores

Modernization of Plant & Machinery in 22 mills 1155.96

Margin Money for working capital 54.02

MVRS amount 2490.87

Pressing Creditors (balance) 328.13

Wage support during implementation period 1668.94

Interest and related expenses on bonds 858.56

Bonds redemption 2028.04

Statutory dues 224.55

Payment of secured creditors (OTS) 293.65

Total 9102.72

B) MEANS OF FINANCE

Interest free loan from GOI against shortfall in wages 1643.84

Funds from sale of Land & other assets 7033.22

Bonds issued 2028.04

Interest earning 234.89

VRS grant received 55.47

Rent Received 7.21

Total 11002.67

MILESTONES ACHIEVED UNDER THEREVIVAL SCHEME

● The entire workers of the millsidentified for closure and the surplusemployees in the viable mills inaddition to those employees whowere desirous to go under MVRS inthe various offices, were given MVRSat a cost of Rs. 2205 crores. So far,60859 employees have goneaccepting MVRS.

● Out of the 119 mills, 77 mills havebeen closed and 2 have beentransferred to the State Govt. ofPuducherry. 24 mills are to bemodernized by NTC itself and 16 tobe modernized through Joint Ventureroute.

● 17 of the mills have completedmodernization. The 18th mill, viz.,Cannanore Spg. & Wvg. Mills,Cannanore is in advanced stage ofcompletion. The 3 mills are compositemills which are new projects and thespinning segment of the project isexpected to be commissioned byMarch/April, 2010.

● The Company has so far spent Rs.662 crores for the modernization of22 mills, out of a total of Rs. 1155crores.

● Relocation of mills for modernization- BIFR approved relocation of 4 mills- one each at Achalpur (Maharashtra);Hassan (Karnataka); Ahmedabad(Gujarat); and Udaipur (Rajasthan).

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Setting up of these projects willtransform the Company into anintegrated textile company.

● NTC has completed the process ofrevival of 5 joint venture companies.Two of the mills have started theactivities - one in the AurangabadTextile Mills for garmenting and work-wear and the other New City ofBombay Mfg. Mills Ltd. has set up adesign studio and setting up samplingand garmenting unit.

● There is no budgetary support fromthe Govt. for the wages in the year2009-10. NTC is generatingresources for wages payment.

● The Company has sold surplusassets worth Rs. 4048 crores underthe Revival Scheme.

● NTC has already paid Rs. 1910crores on redemption of bonds andRs. 777 crores as interest on these

bonds. The last installment of Rs.126 crores is payable in January,2010.

Financial Results

The net profit/cash loss for the 2008-09(aduted) 2009-09 April-Sept.09 andexpected for the year 2009-10 is given attable 12.2.

Production

The production of Yarn & Cloth in NTCmills during 2008-09. April-Sept.09 andexpected for the year 2009-10 is given attable 12.3.

Turnover

The sales of Yarn and Cloth in NTC millsduring 2008-09, 2009-10 (upto Sept.09)and 2009-10 (Projected upto March, 2010)has been Rs. 405.43 Crs. Rs. 238.33 Crs.and Rs. 480 Crs. respectively. Details aregiven at table 12.4.

Table 12.2

Financial Results

(Rs. in Crores)

S. Particulars 2008-09 2009-10 ProjectedNo. (Upto Sept. for F.Y.

2009) 2009-10

A. Net Profit (+)/Loss (-) 4179.43 (52.81) (150.00)

B. Non-Operative expenses

i) (+) Gratuity, leave provision etc. 42.54 20.00 40.00

ii) (+) Other provision etc. 3.06 - -

iii) (+) Depreciations 22.91 15.82 35.00

iv) (+) Interest on Govt. of India loan 19.62 15.00 39.80

v) (-)Provisions for taxes for prior period 202.91 - -

vi) (-) Other provisions written back 13.71 - -

vii) Interest waived by GOI 2727.13 - -

viii) Interest written off 1205.80 - -

C. Sub Total=(i) to (viii) 4061.42 50.82 114.80

D. Cash Surplus/deficit (A+C) 118.01 (1.99) (35.20)


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Table 12.4(Rs. in Crores)

S.No. Particulars Yarn Cloth TOTAL

1. Actual for 2008-09 338.22 67.21 405.43

2. 2008-09 (Actual for April-Sept. 2009) 187.52 50.81 238.33

3. 2009-10 (Expected) 375.00 105.00 480.00

Employment

At the end of Oct.09 there were 10370employees on roll in NTC Group. SinceApril 1, 2002 to Oct. 2009, 60859employees have availed VRS and anamount of Rs. 2205 Crores has beenpaid to them.

Employment of Women

At the closing of year 2008-09, in NTCGroup there were 28 women employeesof the rank of Assistant Manager andabove against a total of 718 officers.Similarly, there were 549 womenemployees of the rank of Senior Assistantand below, against a total 10750employees in the category. Thepercentage representation of womenemployees in the above two categoriescomes to 3.90% and 5.11% respectively.

Vigilance Activities

As a preventive step, guidelines issued bythe Vigilance Commission from time totime, are being circulated to all theconcerned officials for information and

strict compliance. The complaints receivedfrom various sources are being lookedinto and processed promptly as per theguidelines issued by the CVC. Further,regular/surprise visits are being made bythe vigilance officials in different units/offices of the Corporation. The rotationaltransfers/posting on sensitive areas arebeing monitored from time to time. TheAnnual Property Return etc. of the officials/officers are being scrutinized. Agreed listand Officials of doubtful integrity ( ODI )list are being prepared regularly.

THE BRITISH INDIA CORPORATIONLIMITED (BIC)

The British India Corporation Limited wasincorporated as a Public Limited Companyon February 24, 1920. It was taken overby the Government of India on 11th June,1981 under the British India CorporationLtd. (acquisition of shares) Act. The BICLimited, Kanpur owns and manages twowoollen mills viz (1) Cawnpore WoollenMills Branch, Kanpur (2) New EgertonWoollen Mills Branch, Dhariwal. Theproducts of these two mills are popularlyknown by the Brand names of "Lalimli" &

Table 12.3

S. Particulars Yarn ClothNo. Lakh Kgs. Lakh Mtrs.

1. Actual for 2008-09 281.45 140.19

2. 2009-10 (Actual for April-Sept.2009) 155.33 69.40

3. 2009-10 (Expected) 315.00 140.00

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"Dhariwal" respectively. These unitsmanufacture the woollen/blended suitings,Tweeds, Uniform Cloth, Lohis, Shawls,Rugs, Blankets etc.

The British India Corporation Limited hasthree subsidiary companies (1) Elgin MillsCo. Limited (2) Cawnpore Textiles Limited,Kanpur & (3) Brush Ware Limited.

MODERNIZATION / REHABILITATIONOF BIC LIMITED AND ITSSUBSIDIARIES

The B.I.C. Limited was declared as sickcompany in 1992 and was referred toBIFR. The Government proposed aRehabilitation Scheme for the company in2000 and BIFR approved the revival ofthe two Woollen Mills - Cawnpore WoollenMills Branch (Lalimli), Kanpur & NewEgerton Woollen Mills Branch (Dariwahl),Punjab in its meeting held on 18.12.2002.The cost of the Scheme, which wasapproved by BIFR, was Rs. 210.51 crores.Some of the obligations from GOI werefulfilled like as providing funds Rs. 86.00crores as envisaged in the scheme byGOI etc. The major factor of the schemewas sale of surplus land situated atKanpur and Dhariwal which could not becompleted as no permission was grantedby U.P. State Government for conversionof leasehold property into freeholdproperty, hence, the scheme sanctionedby BIFR could not be implemented in full.The BIFR reviewed the matter in itshearing 29.11.2005 and issued directionthat the company should prepare modifiedDraft Rehabilitation Scheme in closeconsultation with the MOT. Accordingly,MRS was prepared and has beenapproved by BIFR in its hearing dated14.02.2008. MRS was sent for obtainingCabinet Approval wherein cabinet directedthat MRS be examined by BRPSE, whichis under process.

CAPITAL STRUCTURE

The BIC Limited started with authorised

share capital of and Rs. 55.00 crores. Itstands as on date Rs. 31.71 crores afterconverting Government loan of Rs.249.62crores into equity derated it to 10% as perdirection of BIFR.

CAPACITY

The capacity of the two Woollen Mills ofBIC after modernization as sanctioned byBIFR is 20680 Worsted Spindles, 1920Woollen Spindles, 79 Power Looms and62 Handlooms.

Performance during, 2007-08(AUDITED), 2008-09 (UNAUDITED) 2009-10 (upto NOV. 30, 2009) (PROJECTED)

FINANCIAL RESULTS

The net profit/cash loss for the year,2007-08 (AUDITED), 2008-09 (UN-AUDITED 2009-10 (upto Nov. 30, 2009)2009-10 (PROJECTED) of BIC Limitedare given at table 12.5.

Production

Production of cloth in BIC Mills during2007-08, 2008-09, (UNAUDITED ) 2009-10 (PROVISIONAL) & 2009-10(PROJECTED) is given at table 12.6.

TURNOVER

The sale of cloth in BIC Mills during theyear 2007-08, 2008-09, (UNAUDITED )2009-10 (PROVISIONAL) & 2009-10(PROJECTED) is given at table 12.7.

EMPLOYMENT

As on November 30, 2009, employees inCWM Branch were 1298, 1054 in NEWMBranch and 90 in the Corporate Office.

Highlights of Rehabilitation Schemeapproved by BIFR/GOI in the year 2002

The above scheme, approved by BIFR inthe year 2002, was to be implemented in


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Table 12.6

Sl. No. Particulars Cloth Lacs Meters

1. Actual for 2007-08 (Audited) 0.70

2. Actual for 2008-09 (Unaudited) 0.15

3. Provisional for 2009-10 (upto-to-Nov-30) 0.14

4 Provisional 2009-10 (Projected) 0.54

Table 12.5(Rs. in lacs)

Sl. Particulars Audited Unaudited Unaudited ProjectedNo. For the year For the year (upto Nov-30) for F.Y.

2007-08 2008-09 2009-10 2009-10

1. Net Profit (+)/Loss (-) 3127 -3740 -2451 -4287

2. Non-operative expenses

i) Govt. interest &guarantee fee 449.00 592 618 1195

ii) Depreciation 58.00 61 39 40

iii) VRS 0.00 0 0 0

iv) Provisions/Taxes -5.00 0 0 0

v) Prior period expenses 53.00 0 0 0

SUB TOTAL: 555.00 653 657 1235

3. Total (=1+2) 3682 -3087 -1794 -3052

4. Non-operative Income

i) Interest waived byCreditors Nil 0 0 0

ii) Profit on sale of Assets 4051 0 0 0

iii) Provisions written back Nil 0 0 0

iv) Grant/Loan from GOI 1800 2500 1755 2500

SUB TOTAL: 5851 2500 1755 2500

5. Cash profit (+)/-loss (-) (-) 3-4 (-)-2169 -5587 -3549 -5552

Table 12.7

Sl.No. Particulars (Rs. in lakhs)

1. Actual for 2007-08 (Audited) 631

2. Actual for 2008-09 (Unaudited) 370

3. Provisional for 2009-10 (upto-to-Nov-30) 119

4. Provisional for 2009-10 (Projected) 310

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2 years i.e. by the end of March 2005 forboth the Units of BIC Limited.

SALIENT FEATURE OF THE SCHEME

The Company had to get the financialsupport from GOI Rs. 86.00 crores out ofwhich Rs. 37.00 crores as interest freeloan Rs. 49.00 crores as grant. Rs. 125crores was to be generated from sale ofsurplus assets. Both the units had to bemodernized by an investment of Rs.46.00 crores by purchase of new machinesand renovation of old existing machines,which were of workable condition.

REASON FOR DELAY INIMPLEMENTATION OF SANCTIONEDSCHEME

The company had to repay the OTSamount of financial institutions/banksamount to Rs. 4.52 crores/Rs.87.75 croresfrom sale proceeds of surplus land. Thesale of surplus land started at Kanpur andDhariwal. Some properties were sold;whereas in case other properties 25%advance money was received and 75%was to be received on handing overpossession on execution of sale. U.P.State Government did not permit to convertleasehold property into freehold property.In such circumstances BIC Limited couldnot make the payment of SBI OTS amountin full in time nor could generate the fundsfor working capital. Presently, full amountof OTS of Bank & FIs has been paidexcept interest of SBI levelled on delayedpayment as stipulated in the SS-02 i.e.Rs. 11.54 crore.

ACTION TAKEN BY THE COMPANY SOFAR

The company has allowed VRS to theemployees 535 nos. identified as surplusand the expenditure of Rs. 17.50 croresincurred thereon.

a. BIC Limited has invested in the

modernization/renovation Rs. 17.50crores in purchase of new renovationof old machines.

b. BIC Limited realised Rs. 92.25 crorefrom sale of assets upto March 2009.

c. BIC Limited made the payment ofSBI amounting to Rs.87.75 againstOTS amount Rs. 87.75 crores uptoMarch, 2009.

d. BIC Limited made full payment ofFinancial Institutions (OTS amount)Rs. 4.52 crores.

e. BIC Limited prepared and gotapproved a Modified DraftRehabilitation Scheme from BIFRthe means of finance, cost of schemeis at table 12.8.

ACTION TAKEN AS PER SANCTIONEDSCHEME 2008

● Scheme approved by BIFR wassubmitted for Cabinet approval.

● Revival Scheme of BIC Ltd. wasdiscussed in Cabinet Meeting heldon 08.08.2009.

● In the compliance of directions ofCabinet dated 08.08.2008, BIC hasarranged an other bridge loan of Rs.10.00 crores (in addition to bridgeloan of Rs. 5.00 crores earlier) fromNTC. A non plan budgetary provisionof Rs. 25.00 crores as loan to BICLtd. has been made in the RE 2008-09. Out of Rs. 25.00 crores. Rs,15.00 crores has been released asa loan for meting out its salaryrequirement during 2008-09

● Revival Scheme detailed working hasbeen circulated for Inter - Ministerialconsultation.

● As per direction of Cabinet actionwas taken regarding inter ministerialconsultation and scheme alongwith


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Table 12.8

(Rs. in Crores)

Means of Finance Cost of Scheme

1. Conversion charges to be 47.35 1. Modernization/Renovation. 26.90recd. from GOI.

2. VRS amount for 60.00 2. Working capital and 36.20772 employees. Contingency

3. Receipt from sale of 115.93 3. Payment to U.P. 47.35surplus assets. Government (conversion

charges

4. Grant for salary & wages 50.00 4. Payment of SBI 16.17Rs.50 crores for two years.

5. Payment of arrears of 22.00rationalized PayScale employees

6. Payment to Jal Sansthan, 6.66Nagar Nigam andsubsidiary companyPayment of VRS

7. Expenditure on Marketing 60.00

8. Development 8.00

9. Expenditure for salary & 50.00wages Rs.50 crores fortwo years.

Total 273.28 Total 273.28

their recommendations was sent toCabinet for its approval wherein itwas reverted back to get it examinedby BRPSE.

● MOT suggested the company beforesending scheme to BRPSE a freshtechno economic viability report beprepared. The report is underpreparation WRA.

Subsidiaries of BIC Limited i.e. ElginMills Company Limited, CawnporeTextile Mills Ltd. and Brushware Limited

ELGIN MILLS LIMITED

The Elgin Mills Company Limited was

established in the year 1864 and it wasregistered as Registered Company in theyear 1911, comprising of the Elgin Mills 2Units as Elgin No. 1 & Elgin No. 2. Byan ordinance called the British IndiaCorporation Limited (Acquisition of shares)Act 1981 the GOI acquired all shares ofBIC Limited and thus became aGovernment company from 11th June1981. The Elgin Mills Co. being subsidiaryof Govt. Co. acquired the status of Govt.Company.

Due to continuous losses suffered by thecompany, a reference under the provisionof SICA was made to BIFR on May 15,1992. The BIFR declared the company assick industrial company on November 3,

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1992, and appointed IndustrialDevelopment Bank of India as an operatingagency. The BIFR recommended windingup of the company vide its order-dated29.03.1994. The said order was confirmedby AAIFR on 09.05.1997 and accordinglyHon'ble High Court Allahabad passedwinding up order on 29.09.1999 andappointed Official Liquidator.

Against the aforesaid order the TextileLabour Union filed a special appeal beforeDivision Bench of Hon'ble High Court ofAllahabad who granted stay on furtheraction pursuant to winding up order. Thesaid order was in operation upto August18, 2000. Thereafter salary/ wages of theemployees of Elgin Mills was stopped bythe GOI. On humanitarian ground GOIpronounced voluntary separation scheme(VSS) on June 2, 2001. Except 46employees all have opted VSS.

On July 6, 2001, an application was filedby the Government for revival of mill andfor seeking directions for the OfficialLiquidator to defer the taking over theassets of the mill until further order. TheHon'ble High Court vide order datedAugust 30, 2001, directed the OfficialLiquidator not to take possession ofthe Company. The Technical viabilityreport prepared by NITRA was submittedto.

BIFR in June, 2003 the Govt. approved aRehabilitation Package by identifying asuitable private party willing to becomemajority shareholder. The Rehabilitationpackage envisaged.

The Revival of Elgin Mill No. 2 (closure ofElgin Mills No. 1) as a total cost of Rs.225.00 crores (approx.) including capitalcost Rs. 56 crores.

● Raising of resources for implementingthe scheme through sale of surplusland and assets valued approx. at216.70 crores (approx.).

● One Time Settlement (OTS) with thesecured Creditors through budgetarysupport of Rs. 80.01 crores.

● Writing of interest on Govt. loan (Rs.432.04 crore) and conversion of loaninto equity (Rs. 298.31 crore)alongwith de-rating of equity by 10%.

Accordingly, a draft rehabilitation schemewas filed before BIFR BIFR vide orderdated August 10, 2006, rejected theproposal ex-parte and issued directionsfor change of management. A petition/appeal requesting BIFR to review itsorder dated August, 10, 2006 was filedbefore BIFR. The matter was heard onMarch 13, 2007 and BIFR observed thatthe company had been lying closed since1994 and employed only 36 `employees.The long period of closure indicated thatthe same was in the nature of a permanentclosure. As such, the undertaking underthe relevant provision of act. The bench,therefore, de-registered that reference filedby the Company.

In view of the above observation of theBIFR, the Govt. has decided to revive thecompany. As per directions of BRPSE,NTC has prepared the revival plan ofElgin Mills no. 2, which has been approvedby BRPSE and the scheme is underconsideration of Government.

CAWNPORE TEXTILES LIMITED,KANPUR

Cawnpore Textile Mills Ltd. wasincorporated in the 1920. The companywas declared as sick company in 1992and was referred to BIFR. On January 19,1995, BIFR recommended winding up ofthe company and AAIFR confirmedwinding up order on September 29, 1999.Hon'ble High Court of Allahabad passedorder for winding up and appointed anOfficial Liquidator. The Govt. stopped thepayment of salaries and wages to theemployees from August, 2000. On


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humanitarian ground the Govt.implemented voluntary separation schemeon March 31, 2001. Except 4, all theemployees opted VSS. The company islying closed and the Official Liquidatorhas not taken possession of the Mills.

BRUSHWARE LIMITED

Brushware Ltd. was incorporated as PublicLimited Company in the year 1893. Thecompany engaged in manufacture of alltypes of brushes like Industrial, Domestic,Personal and pint brushes catering to theneeds of the Defence, Railway, HAL,Sugar Mills, Textile Mills, and Roadways.Due to persistent loses, production wasstopped w.e.f. March 1994 and presentlythe company is lying closed. To seek thepermission for closure of the Company,the BIC Ltd. has approached the Ministryof Labour. The case was last heard in theMinistry of Labour on March 22, 2007.The Ministry of Labour vide order datedApril 12, 2007 have granted permissionfor closure of the company. The companyis under liquidation.

NATIONAL HANDLOOMDEVELOPMENT CORPORATION

National Handloom DevelopmentCorporation (NHDC) Ltd., Lucknow wasset up in February, 1983 by theGovernment of India as an autonomousbody under the Companies Act, 1956.The Authorized Capital of NHDC Ltd., isRs.2000 lakh and its Paid up Capital isRs.1900 lakh. The main objectives of the

Corporation are to :

● carry on the business of all types ofyarn for the benefit of the handloomsector.

● organize supply of quality dyes andrelated materials needed by thehandloom sector.

● promote marketing of handloomfabrics.

● aid, assist and implement the projectsconnected with the production ofhandloom fabrics including taking upmodernization programme,technology for the handloom sector.

In pursuance of the above objectives, theCorporation is undertaking the followingactivities:

1. Mill Gate Price Scheme (MGPS) isan important scheme of theGovernment of India under whichyarn is supplied to the handloomweavers all over the country at theMill Gate Price by the NHDC. Thedetails of yarn supplied under thescheme during the last three years isgiven at table 12.9.

Under MGPS, NHDC is operating"Depot Scheme" of the Governmentof India, wherein, 650 depots havebeen made operational till 28thFebruary, 2010.

2. The corporation is also supplyingquality dyes and chemicals to the

Table 12.9

Year Quantity Value(in lac kg.) (Rs. in lakh)

2006-07 437.210 38,810.05

2007-08 678.210 56,305.17

2008-09 855.12 79,377.57

2009-10 (upto Feb., 2010) 919.17 83,728.62

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handloom sector at competitive pricesunder the scheme. The details ofsupplies made during last 4 years bythe NHDC are given at table 12.10.

3. In order to promote marketing ofhandloom fabrics, the corporationorganizes special exhibitions like SilkFabs & Wool Fabs. The Governmentof India reimburses the expensesincurred by the corporation inmounting these exhibitions. Thedetails like number of exhibitions,participating agencies and total salesgenerated at these exhibitions duringthe last 4 years are given at table12.11.

Besides corporation has set up 8marketing complexes at Jaipur,Kolkata, Ahmedabad, Hyderabad,Kanpur, Indore, Navi Mumbai andNew Delhi, where the handloomagencies from different parts of thecountry display and sell their

handloom products to the discernedcustomers.

4. Corporation also undertakes thefollowing programmes to disseminateto the weavers about the latesttechnologies in the handloom sectorand also about the schemes beingimplemented by the Government ofIndia for the development of thehandloom sector and for the welfareof the weavers:

a) Appropriate TechnologyExhibitions (ATEs)

b) Quality Dyeing TrainingProgramme.

c) Sensitization programme onscheme of Office of DC(Handlooms).

The details like turnover, profitdividend issued rating etc of theCorporation during the last threeyears are given at table 12.12.

Table 12.11

Year No. of events No. of participating Total saleagencies (Rs. in crore)

2006-07 6 303 10.12

2007-08 9 665 25.23

2008-09 12 994 34.43

2009-10 (P)till Jan. 2010 11 861 30.48

Table 12.10

Year Dyes & Chemicals

Quantity Value(in lakh kg.) (Rs. in lakh)

2006-07 20.70 1,729.61

2007-08 21.48 1,897.78

2008-09 39.13 2,796.56

2009-10 (Prov.) (upto Feb. 2010) 45.37 2,692.20


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NATIONAL JUTE MANUFACTURESCORPORATION LIMITED

The National Jute ManufacturesCorporation Limited (NJMC) wasincorporated in 1980. Constituted by sixnationalized jute mills viz. National,Kinnison, Khardah, Alexandra, Union &RBHM of which the first five are locatedin and around Kolkata and RBHM atKatihar, Bihar. NJMC is the only PublicSector Undertaking engaged in Jute goodsmanufacture. The Mills produce traditionaljute goods like Hessian, Sacking, JuteTwine and also Carpet Backing Cloth(CBC).

Production, Productivity & performance

At the time of nationalization production ofthe mills under NJMC was around 1.10Lakh tonnes per annum, which went up to1.33 Lakh tons in 1985-86. However,there has been continuous decline inproduction thereafter. Since 2004-05,allthe six units of NJMC are non operationaldue to disconnection of power supply byCESC / BSEB for non-payment of theirdues. The trend of production, productivity& performance is given at table 12.13.

NJMC had been suffering cash loss sinceinception. In view of continuous cash lossand complete erosion of net worth, NJMCwas referred to the Board for Industrialand Financial Reconstruction (BIFR) on

August 11, 1992. Thereupon, BIFRdeclared the Company as sick under theprovisions of Sick Industrial Companies(Special Provision) Act, 1985 (SICA).

BIFR in an order dated July 8, 2004,confirmed winding up of the NJMC Ltd. interms of Sec.20(1) of Sick IndustrialCompanies (Special Provision) Act, 1985(SICA). and forwarded the case to theCalcutta High Court for winding up of thecompany and appointment of officialLiquidator.

On January 6, 2005, a Single JudgeBench passed the order for winding up ofNJMC Ltd. and directed the officialliquidator to take possession of assets ofthe company. Subsequently NJMCmanagement preferred an appeal beforethe Division Bench of the Hon'ble HighCourt, Kolkata against the said orderWhereupon the matter was heard by theDivision Bench on February 7, 2005, andstay was granted which is presentlyoperational. Meanwhile, NJMC Officer'sguild filed an appeal before the AppellateAuthority for Industrial and FinancialReconstruction (AAIFR) against thewinding up order of BIFR.

The Cabinet in its meeting of March 24,2005 approved the following guidelines asa Plan of Action for the NJMC Ltd.

(i) To reduce the manpower of the

Table 12.12

Turnover, Profit and Dividend: National Handloom Development Corporation

(Rs. in lakh)

Year Turnover Net Profit Dividend MOU rating

2006-07 41,716.25 103.90 21.00 Very Good

2007-08 58,867.17 104.52 22.00 Very Good

2008-09 82,948.34 393.84 80.00 Excellent

2009-10(upto Feb.,2010 87,308.82 325.51 — —

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NJMC Ltd. by offering VRS to all theemployees (13,942) of theorganization, including the employeesof the Head Office.

(ii) To extend budgetary support to theextent of R. 978 crore for providingVRS, liquidating statutory arrears,gratuity, and secured liabilities ofNJMC Ltd.

(iii) the mills at Kinnison and Khardahwill be referred to the Board forReconstruction of Public SectorEnterprises and VRS offered to theiremployees; and

(iv) VRS will be given to employees ofother mills but these will be dealtunder BIFR proceedings.

Accordingly, the scheme for revival of twomills (Kinnison & Khardah) was submittedto BRPSE. In addition, submissions weremade to AAIFR / High Court conveyingthe government's decision to revive thesaid two mills.

Based upon the proposal of revivalprepared by the Ministry/NJMC inconsultation with IDBI, the BRPSE hasapproved the revival plan of the NJMC

Table 12.13

Physical & Financial Performances of NJMC

(Rs. in crore)

Particulars 2007-2008 2008-2009 2009-2010[Estimated]

Production (M.T.) — — —

Sales — — —

Processing Income — — —

Other Income 11.53 17.93 2.00

Accretion / Decretion of stock — — —

Total 11.53 17.93 2.00

VRS Expenditure — 54.15 155.00

Wages & Salaries (including Gratuity) 30.39 23.90 20.00

Other Expenses 12.76 6.00 6.00

Fringe Benefit Tax 0.08 0.11 —

Interest on GOI Loan 439.36 479.23 560.00

Interest - Others 55.60 6.13 2.00

Depreciation 0.20 0.18 0.16

Extra ordinary Income 9.02 24.98 —

Prior Period Adjustment (20.70) 6.92 —

Total 516.71 601.60 743.16

Net Loss (after charging interest on Govt.Loan) 505.18 583.57 741.16

Net Loss (Before charging interest on GOI Loan) 75.82 104.44 181.16

Cash Loss for the year (before charging intereston Govt.loan and extra ordinary items) 87.30 72.36 181.00


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with the following observations:-

(a) The board approved the revivalproposal (in respect) to the RBHMMill in Katihar, with association ofprivate partner as proposed byMinistry of Textiles.

(b) The Board also approved theproposal for revival of the Kinnisonand Khardah Jute Mills as proposedby Ministry of Textiles. The Boardalso suggested that along with therevival of Kinnison and Khardah Millsin the public sector, the possibility ofone or more appropriate privatepartner with their revival as in thescheme for revival of Katihar Millshould also be explored.

AAIFR vide order dated March 3, 2008has set aside the orders of BIFR andremanded the case to BIFR to considerthe revival plan to be submitted by theGovernment.

As per the decision of the Cabinet, VRSwas notified in all the mills. All theworkmen barring a handful have opted forVRS and have been released. TheSecured liabilities of NJMC have alsobeen liquidated, and most of the Statutorydues of NJMC have been settled as well.A revised revival plan for NJMC Ltd. isunder consideration of Government.

BIRDS JUTE & EXPORTS LTD. (BJEL)

The Birds Jute & Exports Ltd., a subsidiaryof the National Jute ManufacturesCorporation (NJMC) Ltd. is a processingunit in Jute/Cotton/Viscose & BlendedDecorative Fabrics. The Companyresumed production from April'1988 aftera virtual closure for 8 years during whichperiod the condition of plant and machinerydeteriorated resulting in higher/cost ofproduction and low productivity.

Due to frequent break down of old andoutdated machinery, production of the

company was suspended again with effectfrom Oct'1998. The production of thecompany was resumed in the month ofAugust 2001 after an interval of about 3years and after repairing major machineryand payment of electricity bills. However,the production in BJEL was againdiscontinued from October'2002.

The performance of BJEL during 2009-2010 in comparison to previous year is asgiven at table 12.14.

Huge interest burden of unsecured loanfrom holding company and Govt. of Indiais a significant part of loss of the currentyear. Moreover, nothing could be realizedfrom production activity.

Reference to BIFR

The Company , being sick, was registeredwith Board for Industrial & FinancialReconstruction (BIFR). The BIFR in anorder dated 08.07.2004 had confirmedwinding up order of BJEL and referred thematter to Hon'ble High Court of Kolkata.The Hon'ble High Court in an order dated06.01.2005 directed that an OfficialLiquidator take possession of the assetsof the company. Against the above order,BJEL Staff Association has filed an appealin Division Bench of Hon'ble High Court,Kolkata. The orders of the single Benchdated 06.01.2005 have been stayed bythe Division Bench on 17.02.2005 andcontinue to this day.

Against the order of BIFR, BJEL StaffAssociation filed an appeal before theAAIFR. The AAIFR vide order dated3.3.08 set aside the winding up orderpassed by BIFR and remitted the caseback to BIFR.A revival plan for BJELprepared by IDBI was approved by BRPSEin principle on 14.04.2008. In the hearingheld on 7.8.2008, BIFR appointed IDBI asthe Operating Agency and directed tosubmit its report within 2 months. Arevival plan for BJEL is under consideration

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of the Government.

HANDICRAFTS & HANDLOOMSEXPORTS CORPORATION OF INDIALTD.

The Handicrafts and Handlooms ExportsCorporation of India Limited (HHEC) wasset up in June 1962 with the twin objectivesof (i) export promotion and (ii) tradedevelopment of handicraft and handloomproducts. HHEC is a two star exporthouse engaged in exports of handicraftand handloom products (including handknotted woolen carpets and readymadegarments) besides undertaking export ofgold and silver jewellery/articles. HHEC,alongwith ten other agencies, was

nominated in the year 1997-98 for importof bullion and sale in the domestic market.The paid up capital of the HHEC isRs.13.82 Crore, which is fully subscribedby President of India.

During the year2008-09, the Corporationachieved a turnover of Rs. 1592.18 Croreas against Rs. 703.40 Crore in 2007-08.The main reason for increase in turnoveris due to higher bullion imports whichincreased from Rs. 673.04 Crore in 2007-08 to Rs. 1545.44 Crore during the year2008-09. The increase in exports fromRs. 26.01 Crore in 2007-08 to Rs. 43.14Crore during the year 2008-09 is due tore-export of Bullion and increase in saleof jewellery through exhibitions.

Table 12.14

(Rs. in lakh)

Physical 2007-08 2008-09 2009-10 2009-10Production (upto (Upto

dec.09) March-10)

Own Fabrics (Mtrs) 0 0 0 0

Contract(Mtrs) 0 0 0 0

Financial Result (Rs.in lac) (Rs.in lac) (Rs.in lac) (Rs.in lac)

Sales value of Production 0 0 0 0

Rent & other Income 42.79 10.31 5.40 7.20

Total 42.79 10.31 5.40 7.20

Raw Material 0 0 0 0

Stores 00.15 0.22 00.9 0.12

Salary & Wages 24.06 25.44 13.75 18.35

Other expenses 35.77 98.65 41.16 54.88

Interest 478.37 666.70 450.00 600.00

Depreciation 7.70 7.57 5.55 7.40

Total 546.05 798.58 511.35 680.75

Net Loss9before adjustment) 503.26 788.27 505.96 673.55

Adhustment 0.77 4.63 - -

Net Loss(After adjustment) 504.33 783.64 505.96 673.55

Cash Loss 496.33 776.07 500.41 666.15

Cumulative Net Loss 6388.95 7172.59 7678.55 7846.14


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Signing of MoU for the year 2009-10between the Handicrafts & HandloomsExports Corporation of India Ltd. andMinistry of Textiles Smt. Rita Menon,Secretary (Textiles) and Shri K. K. Sinha,CMD, HHEC.

E-Sale Website

The E-sale website of HHECWWW.hheconline.in, was launched bythe Hon'ble Minister of Textiles ThiruDayanidhi Maran on 20th August, 2009.The website was designed under the 100days agenda of Ministry of Textiles. E-Marketing of more than 1000 differentiatedproducts of handicraft, handlooms, carpets,jewellery etc. has been done through thewebsite on international panel and furthervarious steps are being taken to increasethe number of items on the web-portal ofHHEC.

STATISTICS

During the year 2008-09, the Corporationhas ended with a loss of Rs. 0.47 Croreas against a loss of Rs. 7.09 Crore lastyear. The reduction in net loss is possibledue to increased earnings from Bullionimports, optimal utilization of idle assets,improvement of profit margin in core areaand reduction in overheads. Theperformance of the Corporation in 2008-09 in relation to major indicators is givenbelow:-

Turnover - Rs.1592.18 Crore

Profit/(Loss) before - Rs. (0.43) CroreTax

Profit/(Loss) after - Rs. (0.47) CroreTax

For the financial year 2009-10, theprovisional figures indicate an

Union Minister of Textiles, Thiru Dayanidhi Maran launching the e-commerce website ofHHEC & CCIC. Also seen are the Minister of State for Textiles, Smt. Panabaaka Lakshmi

(centre) and Smt. Rita Menon, Secretary (Textiles)

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improvement in the financial position ofthe Corporation and the Company mayturn up with profit.

EXPORT AND EXPORT PROMOTION

1. During the year 2008-09, the directexport of the Corporation amountedto Rs. 14.82 Crore as against Rs.22.92 Crore in 2007-08. The declinewas mainly due to the globalrecession due to which Indian textilesand crafts sector was hit badlyresulting in loss of turnover from themain markets of the Corporation inUSA, Japan and Europe.

2. The Corporation participated in anumber of International fairs, viz.,Heim-Textile (Frankfurt-Germany),India Home Furnishing Fair (Osaka,Japan), Dubai Shopping Festival(Dubai) and SAARC Trade Fair(Colombo, Sri Lanka) etc.

CENTRAL COTTAGE INDUSTRIESCORPORATION OF INDIA LTD. NEWDELHI (CCIC)

The Central Cottage Industries Emporiumwas established in Delhi in the year 1952under the management of IndianCooperative Union and was later on takenover by Central Cottage IndustriesAssociation in 1964 and was incorporatedas Central Cottage Industries Corporationof India Ltd.(CCIC) on February 4, 1976.CCIC is under the administrative controlof Ministry of Textiles.

The main objective of CCIC is to be adealer, exporter, manufacturer and agentof quality Indian handicrafts andhandlooms and to develop markets forthese products in India and abroad. TheCorporation has five-showrooms viz. atDelhi, Kolkata, Mumbai, Bangalore, andChennai. Besides, CCIC has two franchiseoutlets in Gurgaon and Patna and anoverseas franchise showroom atCopenhagen, Denmark.

Capital

The authorized capital of the Corporationis Rs.1200 lakhs and the paid-up capitalis Rs.1085 lakhs.

Working Results

a) Turnover

The turnover of the Corporation for theyear 2008-09 was Rs.6859.02 lakhs asagainst Rs.8493.34 lakhs in the previousyear i.e. 2007-08.

b) Exports

The total exports of the Corporation during2008-09 were Rs.313.37 lakhs ascompared to Rs.342.48 lakhs in theprevious year.

c) Profitability

The Gross Profit during the year 2008-09decreased from Rs.3836.75 lakhs in theprevious year to Rs.3454.31 Lakhs. Thedecrease in gross profit is due to decreasein turnover resulting from economicslowdown across the world and decline intourism to India following terror attacks inMumbai on 26.11.2008. The overheads ofthe Corporation increased by 8.11% fromRs.3138.50 lakhs in the previous year toRs.3393.18 lakhs in the current year. Theyear 2008-09 ended with a pre-tax profitof Rs.61.13 lakhs as against correspondingprofit of Rs.698.25 lakhs during theprevious year.

Statistics

Summarized working results for the lastthree years are given at table 12.15.

Development of Designs

The Corporation laid special emphasis onthe development of new designs in Carvedand Inlaid furniture, Traditional handembroidery, Marble & Soapstone Craftsetc. through grant-in-aid projects from theOffice of Development Commissioner


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(Handicrafts) New Delhi. Apart from theseprojects, CCIC is also working on newdesigns for Men's Wear, Women's Wearand Children's Wear for Summer andWinter collection. Theme based exhibitionfor handloom and handicraft departments.This helped the Corporation to promotesales and also enabled it to maintain itsimage in the field of handicrafts andhandlooms.

Exhibitions

During the year 2008-09, CCIC organizedvarious in-house and outside thematicexhibitions, wherein newly designedproducts were displayed by theCorporation to expand the patronage ofCorporation.

On-line Shopping

CCIC launched its enhanced onlineshopping website i.e. www.thecottage.infor its valued customers. The websitedisplays about 1000 Handloom andHandicraft products with description foronline shopping. The products can be

purchased through Secured paymentgateway by credit card which is verisigncertified. The products purchased can beshipped to any country all over the world.It has order tracking mechanism and linksto various Govt. websites, Incredible Indiaetc.

The website was inaugurated by Hon'bleUnion Minister of Textiles Thiru DayanidhiMaran on 21st August, 2009 in thepresence of Minister of States for TextilesSmt. Panabaaka Lakshmi, Smt. RitaMenon, Secretary, Ministry of Textilesand media persons by online purchase ofitems displayed on the website.

Manpower Strength & Training

As on 31st January, 2010 the Corporationhad strength of 344 employees ascompared to 361in the previous year.

THE COTTON CORPORATION OF INDIALTD. (CCI), NAVI MUMBAI

The CCI was set up in 1970. with anobjective of acting as (i) the canalising

Table 12.15

(Rs. in lakhs)

2006-07 2007-08 2008-09 2009-10(Prov.)

Turnover* -Retail 8106.27 7493.81 6859.02 6675.00

- Bulk Orders 2413.32 999.53 Nil Nil

Total 10519.59 8493.34 6859.02 6675.00

Exports 511.09 342.48 313.37 300.00

Net Profit (+) / Loss (-) Before tax 22.18 698.25 61.13 Can beascertained

afterfinalization

of accounts

Net Profit (+) / Loss (-) after tax 191.76 421.57 20.61

Dividend 38.35 217.00 4.13

*includes exports also.

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agency for import of cotton andundertaking purchase of raw cotton, (ii)for giving necessary price support toenterprising cultivators growing newvarieties of cotton developed as asubstitute for imported Long & Extra LongStaple cotton (iii) and also for procuringraw cotton for textile mills both in publicand private sectors. Over the years, itsoperations have undergone significantchanges in keeping with the developments,which have taken place in the Indiancotton economy during the past twodecades. Subsequent to the Textile Policyof 1985, CCI's role was expanded to carryout commercial operations for meetingthe cotton requirements of institutionalbuyers and to fulfill the export quotaallotted to it by the Government. However,with the liberalisation of cotton exportsthrough Open General Licence (OGL)from 2nd July 2001, the system ofallocation of export quota in favour ofdifferent agencies has been dispensedwith.

With the launching of the TechnologyMission on Cotton (TMC) the CCI hasbeen made the implementing agency forMini Missions III and IV which pertains toimprovement of marketing infrastructureand modernization/technologicalupgradation of the existing ginning andpressing factories.

Due to substantial increase in MSP ratesfixed by the Government of India in thecotton season 2008-09, kapas prices hadtouched the MSP level in all the cottongrowing States in the beginning of theseason itself. Thus, the massive MSPoperations of the CCI continued throughoutthe season in almost all the cotton growingStates. As a result, CCI had made recordMSP operation and procured 449.66 lakhquintals of kapas equivalent to 89.33 lakhbales as compared to 11.88 lakhequivalent to 2.22 lakh bales during theprevious year through a network of 314procurement centers and under

commercial operation purchased 25000quintals of kapas equivalent to 4,930bales as against 37.14 lakh quintals ofkapas equivalent to 7.65 lakh ablesthrough all the cotton growing states inthe country.

The prevailing market price of cottonsince October-November, 2008 startedshowing a downward patternconsequential to stagnating demand fortextile products on account of globalrecessionary trend in major markets andalso due to sluggish demand for cotton,the domestic mills had reduced theconsumption of cotton. This has affectedthe overall sales of the CCI leading tohigher level of inventory thereby creatingstorage problem of cotton bales at mostof the procurement centres besides otherrisks of fire etc. Under thesecircumstances, with a view to achievequick and larger sales, the CCI underdirective from Government of India, hasadopted and introduced aggressivemarketing policies by revising the salesterms to domestic mill buyers by increasingthe staggered free delivery period, periodof deposit and bulk discount scheme onlarger quantities effective from 25thFebruary, 2009. The revised sales termsof the CCI got encouraging response fromthe mill buyers.

With the higher production in the countryfor the fifth consecutive year, there wasabundant availability of cotton, facilitatingcotton exports from the country. With aview to increase prospects of surpluscotton the incentive scheme in the form ofduty credit scrip equivalent to 5% of FOBvalue of exports under Vishesh Krishi andGram Udyog Yojna (VKGUJ) was invogue from 1st April, 2008 to 30the June,2009. However the cotton exports fromIndia had not pricked up in significantmanner due to disparity in domestic pricesas compared to international prices. Still,during the cotton season 2008-09, theCCI succeeded in selling around 43,000


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bales in export as against 1.73 lakh balesduring the previous year.

The sale turnover for the year 2008-09was Rs.4972.20 crore comparing withRs. 1636.83 crore for 2007-08. The netprofit of Rs.107.74 crore (before tax) asagainst of Rs. 35.25 during the previousyear. The net profit, after tax, was Rs.66.78crore as against Rs. 22.55 crore duringthe previous year. CCI paid a dividend @20%, amounting to Rs. 1340.92 lakh forthe year 2008-09.

The developmental activities of theCorporation having been covered underMini Missions I and II of TMC, theCorporation has been undertakingIntegrated Cotton Cultivation (ContractFarming) project for dissemination oftechnology to the farmers to increase theyield per hectare and improvement inquality, distribution of genetically purecertified seeds and pesticides, etc. During2008-09 cotton season, the Corporationhad extended Integrated Cotton Cultivation(Contract Farming) in cotton growingStates, bringing an area of 46,837 hectaresunder contract farming. In order tosupplement the efforts of the Ministry ofAgriculture to increase the income ofcotton growers and also to improve thequality of cotton, Best ManagementPractices (BMPs) literature is displayed inmarket yards/G&P units taken up under

the TMC project. This was also distributedthrough awareness meetings organized atState level / APMC level.

JUTE CORPORATION OF INDIA (JCI)LTD., KOLKATA

The Jute Corporation of India Ltd. (JCI) isthe Official Agency of the Government ofIndia for implementing the policy ofproviding the Minimum Support Price tothe jute growers and to serve as astabilizing agency in the raw jute sector.The Corporation also undertakescommercial operation to generate profitfrom time to time. The Corporation hasstarted marketing of non-traditional juteproducts in collaboration with the JuteManufacturers Development Council(JMDC) through a Sales Emporium'SONALI' at Kolkata. The Corporationalso provides marketing research andacts as a decision-support-system in thefield of agriculture marketing.

JCI has 171 Department PurchaseCentres (DPCs) located in seven majorjute growing States viz., West Bengal,Assam, Meghalaya, Bihar, Orissa, AndhraPradesh and Tripura. The table belowshows the amount of raw jute procuredby the JCI from 2005-06 onwards. Theprocurement of jute by JCI under MSPoperations from 2005-06 onwards is attable 12.16.

Table 12.16

Year Quantity Production(April-March) (In lakh Bales of 180 kg each) (In lakh Bales of 180 kg each)

MSP Commercial

2005-06 — 1.40 85

2006-07 0.02 4.81 100

2007-08 7.66 97

2008-09 1.02 80

2009-10 * 85

*Due to prices ruling above MSP no MSP operations have been carried out by JCI so far.

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The subsidy provided by the Governmentto JCI to maintain its infrastructure forMSP operations during the last four yearsis as under:

(Rs. in crore)

Year Amount

2006-07 28.00

2007-08 30.00

2008-09 36.59

2009-10 36.59*

*Rs. 30 crore released till February 2010.

Jute Technology Mission (JTM)

The Government on June 2, 2006,approved the implementation of the JuteTechnology Mission (JTM) at an estimatedcost of Rs.355.55 crores, of which theoutlay for mini missions III and IV will beRs.38.60 and Rs.260.00 croresrespectively. The Department ofAgricultural Research & Education,Ministry of Agriculture, launched the MiniMission I of the Jute Technology Mission(JTM) on November 9, 2006. TheDepartment of Agriculture & Cooperative,Ministry of Agriculture, launched MiniMission II of JTM on December 21, 2006.Mini Mission III and IV were launched bythe Ministry of Textiles on February 6,2007. JTM comprise four Mini-missions:

1) Mini-mission I - Strengthening ofResearch & Development

2) Mini-mission II - Transfer ofTechnology

3) Mini-mission III - Development ofMarketing Infrastructure

4) Mini-mission IV - Modernisation/Upgradation of Technology of Jute

Sector, and initiation of activities forpromotion of Jute Diversified Products.

MINI MISSION-III

The JCI is implementing the Mini MissionIII of the JTM. The Mini Mission-III involves,interalia, development of 12 market yards,construction of 35 departmental purchasecentres and 50 retting tanks at anestimated cost of Rs 55.70 crore by theJute Corporation of India (JCI) to benefitfarmers. Of the 12 market yards, 6 will bedeveloped in West Bengal in collaborationwith West Bengal State Marketing Board.The Market yards are being set up atChampadanga, Bethuadahari, Karimpur,Toofanganj, Tulshihata and Dhupguri. TheMarket yards at Champadanga (WestBengal) and Bethuadahari (Assam) havebeen inaugurated.

Twelve Departmental Purchase Centres(DPC), 12 Centres are planned in WestBengal, 3 each in Assam, and Bihar andone each in Andhra Pradesh and Orissa.In West Bengal they are planned atPandua, Kalna, Katwa, Harirampur,Karnojora, Panjipara, Islampur, Talmahat(Belakoba), Dinhata, Alipurduar andMathabhanga. Ten DPCs have beencompleted and the work in ten otherDPCs is under progress. The landidentification for other DPCs is in progress.

The construction of 12 retting tankscompleted in West Bengal with the helpof NGOs. The construction of 10 rettingtanks is under progress in newlyconstructed DPCs of JCI.


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CHAPTER XIII

TEXTILE RESEARCHASSOCIATION (TRAs)


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CHAPTER XIII

TEXTILE RESEARCH ASSOCIATION (TRAs)

COTTON TEXTILE RESEARCHASSOCIATION (TRAS)

There are eight Textile ResearchAssociations (TRAs) receiving financialsupport from the Ministry of Textiles, ofthese the following are the Cotton TextileResearch Associations (CTRAs):-

● Ahmedabad Textile Industry'sResearch Association (ATIRA),Ahmedabad

● Bombay Textile Research Association(BTRA), Mumbai.

● South India Textile ResearchAssociation (SITRA), Coimbatore

● Northern India Textile ResearchAssociation (NITRA), Ghaziabad.

Like other TRAs, these TRAs are textileindustry promoted private bodies, set upand promoted by the textile industry of therespective region for carrying out researchand providing them various servicesincluding consultancy, testing, training andresearch etc. Their main sources ofearnings include government grants,subscriptions from member-mills, fees fromthe services etc. Since these haverenowned industrialists as their electedChairmen in overall in-charge of theirfunctions, Government provides fullautonomy in their functioning.

Ahmedabad Textile Industry's ResearchAssociation (ATIRA)

During the year, ATIRA provided guidanceto more than 20 units for theimplementation of upgraded ginning

technology under TMC scheme. Moreover,training programmes for gin owners/managers, fitters and electricians wereconducted at ATIRA in which around 300members of 75 ginning units participated.

In the spinning area, more than 225 freshspinning operators were trained in oneof the well known textile units. Theknowledge and skills were imparted bycarrying out theory as well as on-jobpractical classes.

In the weaving area, skill developmenttraining programme was provided in twoareas of Computer Aided Designing forTextiles covering 122 participants fromthe industry. Three months certificatecourse of fresh powerloom weavers fornon-auto, auto and shuttleless looms wasconducted to fill up the gap in availabilityof workers for the powerloom industry. 67training programmes were conducted forrefreshing technical and other skills ofworkforce and generating awarenessabout the technology for powerloomindustry covering a total of 1537 weavers,jobbers and owners. Services of fabricdefect analysis and material analysis wereprovided to eighty seven clients oforganized sectors of the textile industry.Technical training to fresh operatives wasprovided in all weaving preparatoryprocesses and weaving departments.Total 89 operators in weaving preparatoryand 190 operators in weaving were trainedto operate most modern machines in themills. 14 in-house training programmeswere conducted for different categories ofskilled workforce.

In Machinery Development, nine major


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consultancy and shop floor trainingassignments in reputed mills on increasingring frame productivity, reducing combernoil and machinery audit were taken 44lots of 280 pieces of rings, travelers,spindles etc. were tested in the machinecomponent testing laboratory.

In electronic and information technology,a prototype of an automatic garmentcutting machine having 36"X36" vacuumchamber to hold multilayer of fabric (2"compressed height) was successfullydeveloped and ready forcommercialization.

Consultancy service was provided to 7clients including shop floor friendlysuggestions in 8 consultancy assignments.

Testing services provided to 20 clients.90 samples of water (Bore, Boiler, Boilerfeed) and 40 waste water sampleswere analyzed. Environment audit for28 schedule - industrial units wereconducted.

During 2008-09, laboratory received 743service requests from the clients including30 from the new clients and 4035instruments/artifacts were calibrated/validated, totaling to 25,525 instruments/artifacts. 87 fabric samples were testedfor total KES evaluation.

The library continued to provide servicesto the scientific and professionalcommunity. The library had a collectionof more than 43, 350 books and boundvolumes containing needs of textileindustry. About 250 Books/bound volumesof periodicals were added during theyear. The library subscribed about 150national and international journals in thefield of textile related the subjects. Thelibrary subscribed electronic versions ofseven journals. The income from externallibrary members is about Rs. 0.40 lakhper annum. About Rs. 0.25 lakh worthof publications/books and other information

products including ITCTI Books/Monographs were marketed throughlibrary during the year.

During the year, 200 articles were procuredfrom national and international sources ondemand. About 50 articles/patents weretranslated through translator's panel fromnon-English languages to Englishlanguage. Three issues of TEXINCON2008 and one issue of January 2009 werepublished.

THE BOMBAY TEXTILE RESEARCHASSOCIATION (BTRA)

During the year, research anddevelopment activities at BTRA weredirected towards developing cost effectivetechniques, product innovation, improvingproduct (yarn/fabric)quality, ensuringutilities (energy and water) conservation,improving productivity and machinemaintenance. BTRA engaged in thefollowing research projects:-

1. Eco-friendly and user friendlymachines

2. Eco-friendly chemical processes forfunctional finishing of textile fabrics

3. Effect of microwave radiation onpolyester fabric

4. Studies on eco-friendly wash andwear finishing of cotton fabrics

5. Studies in finishing process toenhance the antistatic properties oftextile materials.

6. Surface Modification of High strengthfibres/fabrics using plasmatechnology.

BTRA conducted and imparted thefollowing training programmes:-

(i) ISO-9001 Quality ManagementSystems

(ii) Maintenance of Weaving Mahinces

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(iii) Fibre to Fabric

(iv) Four Point Fabric Inspection

(v) Fabric Inspection & Fabric Testing

Following three research papers werepresented in the 50th Joint Technologicalconference in Ahmdabad on March 4-5,2009:

1. Durable antimicrobial finish for cottonfabric from plant materials

2. Modification of antistatic propertiesof industrial textiles

3. System Effectiveness in CottonGinning Process.

BTRA organized a workshop on'Nonwoven Technical Textiles' at Mumbaion April 21-22, 2008.

BTRA conducted a half-day awarenessprogramme on 'Registration EvaluationAuthoristation of Chemicals'(REACH) onNovember 21, 2008.

BTRA organized a seminar on 'EngineeredTextiles for Geotextile Applications' onMarch 20, 2009.

BTRA provided extensive liaison andconsultancy services to solve problems ofquality, maintenance and productivity atvarious levels for the textiles as per thedetails given at table 13.1.

Table 13.1

Technical investigations(Carried out) 58

Technical enquires attended 48

Local mill visits made(man-days) 340

Outstation mill visits made(man-visits) 176

BTRA provided the Testing Services duringthe year as given at table 13.2.

Table 13.2

Testing Details SampleTested

Fibre properties 5152

Yarn Properties 1226

Fabric Properties andFabric analysis 4873

Technical Textiles testing 1152

Microbiology/Biotechnologytesting 538

Special Testing 2095

Total 16,168

BTRA ran three Powerloom ServiceCentres (PSCs) at Ichalkaranji, Solapurand Madhavnagar-Vita to improve thequality, operating efficiency andproductivity of powerloom clusters.

BTRA participated in the followingexhibitions:

1. 'Fibres & Yarns 2008' exhibition,organized by Tecoya Infotech atMumbai from 12th to 14th April 2008.

2. International Exhibitionof TextileMachinery (India - ITME) held atBangalore, on 15-22nd November2008

3. Mini -exhibition organized during 50thJoint Technological Conference,Ahmedabad on 4-5 March 2009.

THE SOUTH INDIA TEXTILE RESEARCHASSOCIATION (SITRA)

During the year under review, SITRAcarried out 27 research projects, 16 ofwhich were completed. SITRA attendedmore than 125 consultancy assignments.

The physical and chemical laboratorieshave been accredited by NABL for ISO/IEC-17025 for the various fibre, yarn andfabric samples. More than 65420 samplesof fibre, yarn and fabric being tested for


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their physical and chemical properties. Atotal of 351 calibration certificates, inaddition to 28 performance certificates,for testing quality control instruments wereissued during the year for the 120 mills.859 samples covering various accessorieslike spinning rings, spindles, ring travelersand carton boxes were tested.

A total of 21500 samples comprising ofyarn and fabrics was tested and 895persons were trained in the area of loommaintenance, operation of shuttlelesslooms, calculation of fabric production,etc. The Powerloom Service Centre hadalso attended to about 523 consultancyassignments and created around 682designs.

During the year , SITRA conducted trainingprogramme on 'Cost control in spinningmills'. Around 660 personnel in thesupervisory and managerial cadres weretrained during the year under 11 differentprogrammes. 11500 operatives had alsoundergone training during the year onwork methods for effective performance.

SITRA brought out 17 publications, whichincluded 9 research reports, 6 focus, 1monogram and 1 Trends. SITRA scientistsalso contributed 23 research papers totechnical journals.

Membership of SITRA showed a marginaldrop due to adverse condition whichprevailed during the year. It stood at 248comprising of 292 units.

SITRA conducted 32nd productivity surveyin spinning mills for which data from 120spinning mills was used.

SITRA in collaboration with The SouthernIndia Mills' Association (SIMA), CoimbatoreDevelopment Council for Growth andExport Promotion of Technical Textilesand O/o Textile Commissioner, Mumbaiconducted a two day seminar during 4-5July 2008. Three areas of technical textiles

viz., protech, meditech and agrotech weregiven emphasis.

A programme focusing on interpretationof the information provided by the presentgeneration machinery/equipment andtaking appropriate decisions towardprocess and quality control, was heldduring 1-2 August 2008.

A Memorandum of Understanding wassigned between, SITRA and NationalResearch Development Corportion, NewDelhi for licensing and commercialexploitation of specified inventory,processes and knowhow, whetherpatentable or not, developed by SITRAand its associate laboratories.

One hundred and fourteen books havebeen added in the SITRA library. It hasalso received 215 journals on variedaspects of textiles.

During the year, SITRA participated in`INDIA-ITME 2008' conducted by India-ITME Society held at BangaloreInternational Exhibition Centre (BIEC),Bangalore during November 2008.

NORTHERN INDIA TEXTILE RESEARCHASSOCIATION (NITRA)

During the year, NITRA worked on elevenresearch projects. Out of which threehave been successfully completed whilstwork is in progress for rest of the eightprojects. NITRA provided assistance tothe industry in the form of quality and costeffective technical consultancy for resolvingtheir operational problems. Basic areas ofexpertise where NITRA offeredconsultancy solutions were audit, feasibilitystudy, system certification, infrastructureset up, valuation, inspection and product/process & design development. Technicalconsultancy was another important aspectof NITRA's multifarious activities.

NITRA offered a wide range of testing

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facilities for fibre, yarn, fabrics, dyes,chemicals and effluent in its well equippedNABL accredited five laboratories. Thedetails of the activities carried out duringthe year are given at table 13.3.

NITRA undertook the following training foroverseas participant:-

1. Training program for Almeida Textiles,Ethiopia on Apparel ProductionManagement (Batch-I) from20.8.2008 to 30.09.2008.

2. Training program for Almeida Textiles,

Ethopia (Batch-II) from 20.8.2008 to30.09.2008.

3. Training program for Engineers fromTextile & Apparel Institute (TAI) atAddis Ababa, Ethiopia in October2008.

4. Training program for Almeida Textiles,Ethopia (Batch-III) from 13.10.2008to 8.11.2008.

NITRA conducted the Job-orientedProfessional Programs during 2008-09 asat table 13.4.

Table 13.3

S. Name of Laboratory No. of samplesNo. analyzed

1. Environmental laboratory 105

2. Eco laboratory 92

3. Chemical Quality Evaluation laboratory 1680

4. Polymer & Technical Textiles laboratory 825

5. Physical Quality Evaluation laboratory 3625

Table 13.4

S. Programme Title No. ofNo. Trainees

1. Textile Technology & Management (TTM) 29

2. Garment Technology & Management (GTM) 40

3. Apparel Design & Quality Control (ADQC) 30

4. Textile Design & Quality Control (TDQC) 16

5. Apparel Merchandising & Export-Import Management (AMEIM) 20

6. Garment Dyeing, Drycleaning & Finishing Technology (GDDFT) 16

7. Apparel Machine Engineering & Maintenance (AMEM) 15

8. Sewing Machine Operation (SMO) 25

9. Textile Technology & Management (TTM-DLP) 25

10. Garment Technology & Management (GTM-DLP) 37

11. Apparel Merchandising & Export-Import Management (AMEIM-DLP) 17

12. Quality Evaluation of Textiles & Garments (QETG) 09

13. Industrial Environment Technology & Management (IETM) 06

14. Textile Technology & Management(TTM-DLP) 25


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NITRA introduced an optional programmeIndustrial Environment Technology &Management (IETM) for candidates whowere admitted in TTM, GTM or TDQCregular programmes.

NITRA launched the following twoprogramme during the year:-

1. Textile Technology & Management(TTM-DLP)

2. DOEACC "O" Level ComputerProgram (Part Time)

NITRA participated in Garment TechnologyExpo - 09 (14-17 January 2009) at NewDelhi in order to create awareness aboutNITRA's R&D activities, technicalconsultancy, quality evaluation, manpowertraining services, and technical publicationsfor the textile and apparel industry.

During the year, NITRA added 57 booksand 32 complementary books in its library.NITRA subscribed 21 foreign periodicalsand 38 Indian periodicals in addition to 41complementary Indian periodicals. Thelibrary generated revenue of Rs. 2.81 lakhby sale of NITRA publications. The libraryremained open on 2nd and 4th Sundaysto provide extended services to itsmembers and the students of DLPCourses.

Out of 44 Power Loom Service Centres(PLSCs) established by Ministry ofTextiles, the following 7 PLSCs wereunder the administrative control of NITRA:-

1. In Uttar Pradeshi. Meerutii. Kanpuriii. Tandaiv. Gorakhpur

2. In Haryana - Panipat

3. In Punjab - Ludhiana

4. In Rajasthan - Bhilwara

All seven centres were having testing

facilities capable to meet basicrequirements of the decentralized powerloom sector in normal course. There arethree Computer Aided Design (CAD)centres at Panipat, Bhilwara andGhaziabad. In addition to the above, onemore CAD centre was functioning atPLSC, Tanda with financial support ofGovernment of Uttar Pradesh. PLSCswere also involved in insuring power loomworkers under Group Insurance Scheme(previously known as Janshree BimaYojana) towards their social security.During the year 2008-09 a total of 6805powerloom workers were insured throughPLSCs.

MAN-MADE TEXTILES RESEARCHASSOCIATION (MANTRA), SURAT

The Man-Made Textiles ResearchAssociation (MANTRA), Surat is the onlyTextiles Research Association serving theman-made textiles industry (decentralizedsmall scale) and is registered under theSocieties Act of Gujarat. MANTRA hasbeen in the fore-front in the R&D activitiesrelated to man-made fibre textiles.

The main objectives of the Association isto carry out research and developmentand to render other consultancy servicesto the local, decentralized textiles weaving,texturing and processing industry onvarious aspects of the textiles technologywith a view to improving the quality offabrics, reducing cost and bringing aboutbetter utilization of raw materials. Theprojects undertaken were of considerableimportance and the studies made by theAssociation have substantially helped toimprove the quality and productivity of thetextiles industry.

During the period 2009-10, MANTRA wasengaged in carrying out R&D work on thefollowing sponsored projects:-

(i) Development of a commercial qualitygreenhouse shade cloth for low cost

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poly-house for controlled cropproduction (Sanctioned in 2008);

(ii) Application of suitable cost effectivetechnology for reuse of water jeteffluent (Sanctioned in 2008);

(iii) Smart fabric/garment products withsmart colours for security labelling.

During the current financial year 2009-10,the following new projects were alsosanctioned by the Ministry of Textiles,Government of India.

(i) Polyactic Acid Fibres in technicaltextiles applications for packagingand disposable food containerproducts;

(ii) Development of cost effective filterfabrics suitable for bag filters;

(iii) Development of enzymatic techniquefor weight reduction of polyester;

(iv) Development of fabrics made fromPTT yarn and to optimize processingparameters to use in apparel sectorincluding cost effectiveness;

(v) Development of eco-friendly re-cyclable/bio-degradable value addedtechnical textiles from banana yarns;

(vi) Development of multi-layer fabricsfor sportswear.

(vii) Application of nano technology fordelustering of bright polyester fabricvarieties.

During the Financial Year 2009-10, 34samples from industry were tested in EcoLaboratory till 30.11.09. MANTRAcontinued to perform as EnvironmentalAuditor for Schedule-I industries andconducted Environmental Audit of 20 unitsand generated income to the extent ofRs.19.00 lakhs. In the AnalyticalInstruments laboratory, which has anumber of sophisticated instruments, 72

samples were tested till 30.11.09, majorityof which included colour assessmentparameters on Computer Colour Matching(CCM), Thermal analyzer and Hydrostatichead tester. Total number of samplestested in the Physical & ChemicalLaboratory of MANTRA during F.Y.2009-10 were 3,452 (excluding audits).MANTRA is enlisted consultant by GujaratEnergy Development Agency (GEDA). Itis authorized as Energy Auditor by ChiefElectrical Inspector, Gujarat to conductmandatory energy audit of all industrialunits having contract demand more than200 KVA. During F.Y.2009-10, MANTRAconducted Energy Audit of 20 mandatoryunits till 30.11.09.

MANTRA's dissemination of informationactivities are quite useful to the industry.It participated in Vyapar 2009 exhibitionconducted by South Gujarat Chamber ofCommerce and Industry at Surat and alsotook part in `Vibrant Gujarat MegaExhibition 2009' organized by Governmentof Gujarat at Science City, Ahmedabad,MANTRA and Confederation of IndianIndustries New Delhi (CII) jointly organised`Tech-Tex India 1: Opportunities in IndianTechnical Textiles, Potential & Challengesfor the field of Agrotech and Geotech', aconference on technical textiles at HotelTaj Gateway, Surat. About 195 delegatesparticipated. MANTRA organised aseminar on `PTT fibres' in collaborationwith DuPont on 14.12.09. It also organized`Water Conservation AwarenessProgramme' for dyeing machine operatorsin three process houses. In eachprogramme, about 300 workersparticipated.

Pilot plant facilities for the production ofcontinuous synthetic filament yarn,available at MANTRA, is unique. Itsexisting extrusion, draw texturing and airjet texturing facilities are being availed notonly by the nearby industry, but also bythe industries as far as from Bangalore,Chennai, etc.


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MANTRA has been designated as Centreof Excellence in Technical Textiles by theGovernment of Gujarat and Centre ofExcellence in Agrotech by Government ofIndia along with Navsari AgriculturalUniversity (NAU), Navsari, and IIT Delhias knowledge partner. These Centres ofExcellences will be providing state-of-the-art facilities for testing, R&D, qualityappraisal, product development (pilotplant) & HRD and one window informationcentre in technical textiles in non-woven,knitted and coated/laminating andagrotech products development. This willhelp parallel growth of textiles as wellas technical textiles industry in Indiain general and South Gujarat inparticular.

THE SYNTHETIC AND ART SILK MILL'SRESEARCH ASSOCIATION

The Synthetic & Art Silk Mills' ResearchAssociation (SASMIRA) is a co-operativeventure set up by the man-made textilesindustry of India after independence as amulti-functional institute to serve itsscientific and technological needs.SASMIRA is engaged in multifariousactivities with the prime objective ofrendering scientific & technical assistanceto the textiles industry, thereby assistingits growth and development.

CENTRE OF EXCELLENCE (COE)

SASMIRA has been designated as aCentre of Excellence (COE) forAgrotextiles. The centre is being set - upin alliance with Man-Made TextilesResearch Association (MANTRA), Surat,Navsari Agriculture University (NAU),Navsari as associate partners andDepartment of Textiles Technology, IndianInstitute of Technology (IIT), Delhi asknowledge partner. The vision andmission is being accomplished throughthe creation of new facilities andinfrastructure, viz., state-of-the-art testinglaboratory, Testing and Demonstration

pilot plant facility for Agrotextiles,Accreditation of Testing and evaluationfacility for Agrotextiles from Internationalbodies, Information centre for Agrotextilesand Training Centre for Agrotextiles.Besides equipments, latest TestStandards from different bodies like IS,BS, EN, ISO, JS have been procured,along with books and periodicals relatedto technical textiles. The process forsetting up the Information Centre hasbeen initiated for SASMIRA (lead partner)along with satellite links with MANTRAand NAU. Demonstration plants arebeing worked out.

TESTING SERVICES

An important activity of SASMIRA istesting and technical services. SASMIRAhas fully equipped laboratories to carryout testing, evaluation and investigationof a variety of textiles and allied materials,with specialised services for technicaltextiles. SASMIRA laboratory areAccredited by National Accreditation Boardfor Testing and Calibration Laboratory(NABL) as per ISO/IEC 17025 - 2005specifications. The laboratory also givestechnical service and consultancy to theindustry to overcome problems arisingduring production and usage of variousproducts.

EDUCATIONAL ACTIVITIES

SASMIRA's education programmeconducts regular Diploma and Certificatecourses in many disciplines, e.g. ApparelMerchandising, Man-made TextilesTechnology, Textiles Chemistry, KnittingTechnology, Fashion and Apparel DesignTechnology, weaving, wet-processing,Merchandizing & Retail Management. Inaddition to the regular courses on textilestechnology, wet processing, knittingtechnology etc. Tailor-made trainingcourses are also undertaken as per needsof particular segments of industry incollaboration with them.

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SEMINARS AND CONFERENCES

SASMIRA has been continuously servingthe textiles industry and entrepreneurs tocreate awareness in technical textiles byway of conducting seminars andworkshops at the national and internationallevels. The seminars conducted duringthe 2009-10 are as follows:

● SASMIRA participated in the Fibresand Yarns 2008 exhibition held inWorld Trade Centre during 24th to26th April 2008.

● SASMIRA organised a One-DaySeminar on Agrotextiles - Emergingopportunities, jointly by Office ofTextiles Commissioner, Ministry ofTextiles, Govt. of India in associationwith FICCI-WRC on 1st October 2008at Hotel Intercontinental- The Grand,Mumbai. This seminar was the firstin the series of the awarenessprogramme being planned underCOE Agrotextiles.

● "A Seminar on Protective Agrotextiles:Advantages & Future Prospects" wasjointly organised by the Office of theTextiles Commissioner and SASMIRAin association with Department ofAgriculture, Govt. of Maharashtra,National Horticulture Board & KrishiArogya and Vigyan Sanstha atVanamati Hall, Nagpur on 6thFebruary 2009. This seminar wasaimed as creating awarenessamongst the farmer level. This wasalso a seminar in the series ofawareness programme held underCOE Agrotextiles.

RESEARCH & DEVELOPMENT

SASMIRA is engaged in various researchand development projects in man-madetextiles for apparel, industrial and defenceapplications to meet the changing needsof the man-made textiles industry.Currently, SASMIRA is engaged in the

implementation of six projects sponsoredby the Ministry of Textiles.

(i) Development of Durable, Breathableand Barrier Work wear Fabrics forAgrotextile Applications;

(ii) Development of Speciality Fabric forWater conservation and Soil ErosionControl used in HorticultureApplication;

(iii) Indigenous Development of UltrasonicDevice(S) for Maintenance ofWeaving Accessories;

(iv) Manufacturing of woven geotextilesfor ground improvement using verticaldrain technique;

(v) Low cost Upgradation of firstgeneration imported shuttless loomsand indigenous shuttles looms fordecentralised sector;

(vi) Developing fabrics withthermoregulatory properties usingphase change materials (PCM) forspecialty application.

WOOL RESEARCH ASSOCIATION,THANE

The Wool Research Association (WRA),Thane has been set up under the SocietiesRegistration Act, 1860 in October 1963. Itsupports Indian Woollen Industry throughResearch and Development, SpecialTraining Programmes, EducationalActivities, hosting of Foreign Delegations,Workshops and preparation andpresentations of technical papers at theInternational forums.

Wool Research Association at present isorganised under the following fivedepartments namely:-

i) Physical Test House

ii) Chemical Test House

iii) Textile Technology Department andPilot Plant.


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iv) Computer Aided Textile Designingand Colour Research Laboratory

v) Eco-testing Laboratory

Activities

(1) Mechanical processing of wool andwoollen blends on woollen spinningsystem.

(2) Processing of Jute, Wool andSynthetic Fibres on Friction Spinning(DREF-II).

(3) Development of elastomeric frictionspun yarn and fancy yarn on DREF-II friction spinning machine.

(4) Development of Economic FrictionSpun Multi-component yarn for high-tech (Industrial Fabric) Textiles.

(5) Computer Aided Designing &manufacturing of knitwears.

(6) Computer Applications in ColourMatching and Quality Control, wovenprinted designs, grading and blending.

(7) Carpet designing, weaving andfinishing.

(8) Natural and synthetic dyeing andfinishing of wool and woollen blends.

(9) Physical and chemical testing fromfibre to fabric.

(10) Eco-testing of textiles

(11) Project Proposals, Feasibility reportsrelated to above activities.

Sponsored Projects by Ministry ofTextiles

1. On-going projects

Project I : To synthesize wool dyeswith moth proofing properties.

Synthesis of wool dyes with moth proofingproperties involves three step preparationand is being carried out by the following

scheme of work.

i. Synthesis of toxic component of dyeunder preparation.

ii. Synthesis of colouring component ofthe dye under preparation.

iii. Coupling of the above two to yielddye.

The various reactive potential insecticidespertaining to pyrethroid and organochlorineskeleton have been synthesized. Theyhave been reduced to amino form formaking them suitable for coupling with thecolouring component is under progress.Compounds based on eyanuric acidderivatives have been under preparation.

Project II : To improve processingperformance of finer Indian wools andtheir product range with incorporationof Enzyme technology for better valueaddition (with special reference to earlystage processing).

The results of application ofbiotechnological solutions to woolprocessing is being experimented on thefiner variety of wool being produced in thecountry, and to improve the end usesuitability, both in apparel and non-apparelsector.

Project III : To develop itch-freewoollens to be worn next to the skinby improvement of surface topographyof wool fibres with the mechanical /chemical processing and plasmatechnology.

It is a common experience that even thefinest wool like merino, pashmina,cashmere, etc suffer from inadequacies ofcreating uncomfortable itching to thewearer when worn next to skin. Thisdecades old problem has not been solvedinspite of great advancement in wooltechnology. The problem can be tackledeither genetically or by mechanical

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processing, chemical treatment andsurface modification with plasma treatment.Earlier work on the Angora wool carriedout by NID showed that keratin fibresurface could be modified by plasmatreatment leading to etching at micro levelmorphologically to enhance theirspinnability. Similarly, wool fibres likemerino variety can be modified by bluntingthe scales of the fibres and grafting /polymer deposition treatments by usingPlasma Technology. The mechanicalprocessing and chemical processing likesiliconisation also reduce the frictional co-efficient of the scaly fibres, reduce theprotruding hairiness leading to the itchingsensation of the human body when wornnext to the skin. It is pertinent to observethat the itching sensation is generallycaused by collective frictional behaviourof the scales in wool fibres and thepricking of the micro-tips of the surfacehairiness of the protruding fibres in theyarn/fabric surface.

Project IV : Ultra sound assistedscouring and smooth finishing of wool& other speciality animal fibres andtheir products.

Ultrasound waves with frequencies above16 - 20 KHz is known to acceleratechemical processes. Raw wool scouringin combing mills with detergent produces75% of the total BOD load of the effluentof a mill containing grease and otherimpurities. A method of scouring with verylittle or no detergent but inorganic catalystsin aqueous system is expected to removeall impurities. Similarly a modified aqueousbath treatment can be oriented towardsfinishing of products of wool and otherfibres for scale modification, shrink proofingand smoothness.

Project V : Design and Development ofInterior Textiles with special emphasison heat resistance and flame retardancy

The proposed project is aimed to design

and develop heat resistant and flameretardant interior textiles specially forindustries whic utilize and need thesekind of technical textiles with specialemphasis on automobiles. Interior textilescan be categorized as upholsteries likecurtains, fire curtains and furnishing suchas for seat covers, hood liners and forbrake-liners. Through this project, it isproposed to design and developupholsteries and furnishings with a majorcomposition of wool (Indian /merino) andwith a varied composition of special fibreslike Trevira, Kynol, Basofil, F.R.Viscose.For the development of heat resistantfabrics it is proposed to go for non-asbestos fibres such as glass, ceramic,graphite/carbon in blends with polyester,nylon, viscose and to develop non-asbestos brake-liners. It is proposed toutilize metal yarns, like copper, brass, andaluminum in combination with fibres likeglass, polyester, nylon, cotton and wool.The yarns for developing fabrics for abovementioned applications will range from0.5 Nm to 60 Nm and the yarns will beboth homogenous, heterogeneous andwill be developed using cotton/worsted/friction spinning technologies.

Project VI : To develop ecologicalfriendly moth repellent and mothroofing agent for woollen textiles foreasy care.

Considering the fact that Indian industry,both decentralised and organised, needsmore suitable product for protecting woolin storage, transportation and while inuse, needs a technically improved versionand an import substitution, this R&D workwas considered in the national interest.

While there have been good amount ofsynthesis work carried out in the field oforgano-chlorine, organo phosphorous andcarbamate insecticides, the use of thesecompounds for insect proofing of woolwas not promising because of their lowexhaustion, retention properties and the


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deleterious effects, these compounds hadon human health in terms of dermaltoxicity and also because of their harmfuleffects on the effluent treatment anddisposal procedures. The permetrinformulations based on racemic mixtureswere effective and have been practised inthe industry today more effectiveinsecticides from the synthetic chemistrywould be interesting to counter theproblems faced with the biodegradabilityand environmental pollution. In the presentproject it is planned to work on thesynthesis of non chlorine basedinsecticides containing organic toxic groupswhich are less harmful to mammals andmore environment friendly.

2. Projects completed:

Project I : Optimise processingparameters for Eri silk / wool yarns onworsted system to develop value addedproducts.

Degummed eri silk cocoon was processed(carding to final yarn on worsted andother systems. After analysis the resultsof the yarn parameters, bulk trials wereconducted for yarn preparation. Theproducts like tweeds, shawls, knitwears,lohies and suitings were developed atWRA with promising results.

Project II : Develop suitable machineryfor spinning of Eri silk and its blendsfor cottage industry

After studying the results of initial andbulk trials, miniature computer controlledflexible spinning system was developed.The trials were conducted using variousblends of wool silk on this machine to getthe final product.

The various products have been assessedfor performance with promising results.

Project III : R & D on value addition toDeccani wool

WRA has done the R& D component

work relating to making blends fromDecanni wool, after making a survey ofdifferent types of wool being grown inthe state of Karnataka with non-componentfibres like PET, Nylon etc. so that productsof better quality with value addition canbe made. After making necessary trialsat WRA, we have come to a conclusionthat design and fabrication of a 6 spindleRing Spinning Frame with 4 over 4 draftingsystem would help to spin the blendedfibres in the form of sliver to at least 6 -8 Nm (count). This is to take up thequality of Decanni wool from Kambal yarnto Lohi and shawl type fabrics andfurnishing. The designs and drawings areready with WRA and most likely to besubmitted to CWDB shortly for financialsupport to go ahead in the matteralongwith the implementation ofmechanical processing facility at KSWDCfor Decanni wool.

WRA is a Consulting member on theProject Committee of CWDB to examineproposals and recommend forestablishment of common facility centre inmajor wool growing/processing clustersin different States of the country. Underthe said scheme, the proposals given attable 13.5 have been cleared forimplementation with financial Grant-in-Aidof 50% of the total cost of project in eachcase, to the extent of a maximum amountof Rs. 50.00 lakhs for purchase andinstallation of requisite processingmachinery.

3. EDUCATIONAL / TRAININGACTIVITIES

The transfer of R&D findings and thetransfer of adopted technology to thevarious entrepreneurs and the relatedindustries are covered under HRDProgramme / Training Programme. Weoffer the training programme at WRA andalso at the required site.

WRA conducts certificate level courses as

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Table 13.5

Sr. Name of the Participating ActivityNo. Entrepreneurs

1. Shikhar HL & HC Weavers Welfare To establish Common Facility Centres (CFC)Roduction-cum-Sale Co-Operative for Woollen Yarn Spinning and HandloomSociety Ltd., Brow, P.O. - Rampur Processing unit (45 kg./shift)Bushar, Distt.Kullu

2. H.P. State Co-operative Wool & Loose Wool CarbonizingMarketing Federation Ltd., Shimla (1,000 kg./day)

3. Maha Dev Woollen Mills, Processing of scoured wool into wool topsVPO Mahadev, Distt. Mandi and spinning yarn (Combing 140 kg/day

spinning - 2,500/month)

4. The Monika Handloom Workshop Wool Processing & Yarn spinning unitCo-Operative Ind. Society Ltd., (100 kg./day)Ludhiana

5. Bhawani Wool Tex Pvt. Ltd. Bikaner Wool processing and production of carpetwool yarn (25,000 kg/month)

6. Bikaner Vishudh Khadi Gramodyog Wool Scouring plant & yarn Dyeing unitSansthan, Bikaner (Scouring-6,000 kg. Dyeing-350 kg)

7. Mahila Mandal Barmer Agora, Wool scouring, combing & spinning unit forIndira Colony, Barner processing of wool into wool tops and

spinning of yarn. (1,000 kg./day)

follows :

1. Computer Aided Textile Designing(Part time/Full Time).

2. Ecological & Instrumental ChemicalAnalysis (Part time/Full Time).

3. Textile Testing & Quality Control(Part time/Full Time).

The infrastructure for the educationalactivities like classrooms, furniture,presentation aids, availability of expertsand guest lecturers were developed andnearly 20 students were benefited underthe above said courses.

WRA Institute is also recognised byMaharashtra State Board of TechnicalEducation to conduct P.G. Diploma Course(1 year) in Wool Textile Technology &Ecological & Instrumental ChemicalAnalysis.

The laboratories of WRA are alsorecognised by University of Mumbai forResearch Studies leading to M.Sc & Ph.Ddegree.

4. ACHIEVEMENTS/ACCREDITATION

NABL

The Quality Test House has successfullycompleted the Surveillance Audit and isaccredited by NABL for Mechanical &Chemical testing as per 17025 videcertification numbers are T - 1225 & T -1224. The Laboratory was alreadyaccredited for ISO 9001 - 2000 since2000.

INDIAN JUTE INDUSTRIES RESEARCHASSOCIATION (IJIRA), KOLKATA

The Indian Jute Industries ResearchAssociation (IJIRA), Kolkata, registeredunder West Bengal Societies Registration


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Act, 1961 is an autonomous Co-operativeResearch Organization promoted by IndianJute Mills Association (IJMA). The Ministryof Textiles supports IJIRA throughprovision of grants and projects.

OBJECTIVES

(i) To promote Research and otherscientific work concerned with thejute trade and industries allied withor accessory thereto;

(ii) To establish and maintainlaboratories and faster education ofpersons engaged in or likely to beengaged in the said trade andindustry;

(iii) To examine and publish informationregarding the nature and merits ofinventions, improvements materialsand designs connected with the saidtraders of industries.

The R&D activities and technology transferprogramme of IJIRA have helped toimprove the productivity, product qualityand cost viability of the organized jutemills and also the SMEs in the jute sector.IJIRA has been maintaining RegionalCentres at Shantipur (West Bengal),Guwahati (Assam) and Vizianagram(Andhra Pradesh) for strengthening thejute related activities in the region.

TEXTILES COMMITTEE

The Textiles Committee, established bythe Textiles Committee Act, 1963, has theprimary objective of ensuring quality oftextiles both for internal marketing andexports. Its functions include promotion ofquality of textiles and textile exports,research in the technical and economicfields, establishing standards for textilesand textile machinery, setting up oflaboratories, data collection etc. TheCommittee has its Head quarters atMumbai with 30 Regional Offices, 17 of

them with laboratories, including 9 havingeco testing facilities. The Committee is amulti-member body, constituted by theGovernment of India, under Section 3 ofthe Act. It comprises a Chairman from thetextiles industry, a Vice-chairman (theTextiles Commissioner, Ex-officio),Member Secretary appointed by theCentral Government under Section 9 ofthe Act and 26 other members fromdifferent sectors.

PERFORMANCE DURING 2009-10

Textiles Testing Services: 17 laboratoriesof Textiles Committee spread across majortextiles clusters of India. They serve textilestrade and industry by way of textilestesting, technical services andtroubleshooting. These laboratories testtextile samples from trade and industries,government agencies and regulatorybodies like Indian Customs. Theyregistered revenue of Rs.601.24 lakh tillNovember 2009. The anticipated revenueduring December 1, 2009 to March 31st2010 is 311 lakh.

Training to Industry Personnel: Thenumber of training programmes conductedby the Textile Committee during April2009 to November 2009 is as at table13.6.

Accreditation of Laboratories: 14 of theTextiles Committee's laboratories areaccredited by National Accreditation Boardfor Testing and Calibration Laboratories(NABL) as per the requirement of ISOIEC 17025 standard. These laboratoriesare also aspiring to get accreditation forconducting Inter Laboratory ProficiencyTesting (ILPT) Programmes. One of themajor testing activities include is thetesting of banned dyes (amines). Thelaboratories of Textiles Committee areworking in the direction of including thetesting of banned chemicals (amines) intothe scope of accreditation during the nextaudit.

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Table 13.6

Sr. Type of Training Number Number ofNo. of units personnel

trained

1. Awareness on ISO 9000 10 155

2. Statistical Process Control 06 68

3. Internal Quality Audit 08 116

4. Training on ISO 14000 03 50

5. Awareness & other related programmes on SA-8000 05 57

6. Awareness & other related programmes on OHSAS 02 37

TOTAL 34 483

TQM Services: As industry friendlyorganization, Textiles Committeereoriented its role from that of regulatoryto developmental and initiated renderingconsultancy on ISO-9000 qualitymanagement systems, ISO-14000Environmental Management systems,SA-8000 (Social AccountabilityManagement Systems), OHSAS 18000(Occupational Health and SafetyAssessment Series) to the aspiring textileunits on chargeable basis. During theyear 2009-10, a total of 14 units cameforward to avail the consultancy servicesunder ISO 9000 / ISO 14000 / SA 8000/ OHSAS 18000. The total number ofunits under consultancy has gone upto457 units so far. The Textiles Committeeis the only organization in the country torender consultancy services to so manytextiles units.

Post Certification Activities: In order todemonstrate the continued relevance of

Textiles Committee in the development ofSmall & Medium Entrepreneurs (SMEs),the Committee has introduced the postcertification activities. During the yearunder report as on 30/11/2009, 19companies have availed post certificationsupport services from the TextilesCommittee. For this service, a sum ofRs.3, 84,208/- has been collected as fee.

Handloom Mark: The Handloom MarkScheme was launched on 28.06.2006.Textiles Committee has been appointedas implementing agency (IA) by the Officeof the Development Commissioner(Handlooms), New Delhi. The performancereport in the Handloom Mark Scheme ason 30/11/2009 is given at table 13.7.

Popularization of the Mark throughDomestic and International Publicity:The success of the Handloom MarkScheme depends upon the action takentowards its popularization. This has been

Table 13.7

Sr. Name of the activities Achievements AnticipatedNo. (April 2009 to figures up

November 2009) to 31.03.2010

1. No. of Registration allotted 961 1200

2. No. of label sold 23,58,465 35,00,000


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achieved not only through the sensitizationseminars but also through other publicitymeasures. The publicity measures arebroadly classified into two categories suchas ATL (Above the Line) activities andBTL (Below the Lines) activities. The ATLactivities consist of publishing throughPrint and Electronic Media tools whereasthe BTL activities consist of participatingin Exhibitions, Fairs, Seminars, etc. Thebudget provisions for advertisementsthrough Magazines is Rs. 4.50 crores andRs. 1.70 crores for Electronics Media,which are part of the ATL activities.Further, the Office of DevelopmentCommissioner for Handlooms hasallocated Rs. 50.00 lacs for advertisementin Newspapers through DAVP during thecurrent year. As a part of the BTL activities,Textiles Committee has participated inNational and International Exhibitions &Trade Fairs for publicity of HandloomMark. During the year, the Committeeparticipated in 1 (one) Domestic and 2(two) International Exhibitions.

Cluster Level Seminars are conducted inorder to create awareness of HandloomMark Scheme amongst the users such asIndividual Weavers, Master Weavers,Primary Cooperative Societies, ApexSocieties, Retailers/Traders, ManufacturerExporters, etc. There is a budget provisionof Rs. 23.0 lacs for Cluster Level Seminarsin the current year. Textiles Committeehas already started the necessary actiontowards conducting these seminars in allparts of the country.

The Cluster Development Cell

The Cell is implementing ClusterDevelopment Programme for the CapacityBuilding of Textiles SMEs in the identifiedclusters since the year 2002. Threehandloom clusters had been assigned bythe Office of the DevelopmentCommissioner (Handlooms), New Delhifor implementation of the Programmeunder the Integrated Handloom Cluster

Development Scheme (IHCDS) in theyear 2005 - 06. Based on the diagnosticstudy, action plans for the year 2008 - 09and 2009 - 10 have been devised andapproved by the Apex Committee, IHCDS.The brief details of the clusters and thehighlights of achievements are as under:-

BIJNORE (Uttar Pradesh)

● 4 consortiums have been formedcovering 33 master weavers and1316 weavers.

● SPV named 'Bijnore HandloomWeavers Services Public Limited' hasbeen registered as a public limitedcompany for managing the CFC andDye House Shares of Rs.10 eachworth Rs 25 lakhs floated in themarket.

● 10 Quality up-gradation trainingconducted for 218 weavers.

● Dobby designs development training-55 weavers. Export procedure training- 45 master weavers.

● 65 weavers were benefited underthe training on Dyeing.

● Total sales generated - Rs 171.63lakhs, which includes Exhibition -&BSM - Rs 55.44 lakhs and ordersRs.91.54 Lakhs through differentbuyers and Rs 24.65 lakhs throughhandloom house.

● Sales & order generated through:Handloom House : 24.65, CCIC :NIL, Other Agencies/Buyers: 86.54,Exhibition & BSM: 44.59 lakhs

● 25% production increased due toFive Wheel take-up motionestablishments. Order placed for 20set of take-up motion.

● 82 designs (12 co-ordinate setdeveloped), New Products developed- 200. Order generated worthRs.143.57 lakhs.

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● Yarn worth Rs 45 lakhs supplied - 9cycles completed - 1000 weaverswere benefited.

● Establishment of Common FacilityCentre and Dye House at villageSahaspur is in progress.

TRICHY (Tamil Nadu)

● 140 weavers trained in Pure SilkWeaving, 15 weavers changedvariety. Earn up to Rs. 5000 permonth from Rs. 2000 per month.

● 30 weavers trained in Designdevelopments.

● 130 SHG women trained in powermachine sewing, 140 SHG womentrained in Hand embroidery.

● 24 Master weavers / textilemanufacturer trained in Exportprocedures.

● 10 dyers trained in Dyeing Workshop& improved quality of dyeing and useof natural dyes.

● 2 dyers undergone 5 days practicaltraining in Natural dyeing.

● 14 SHGs covering 200 weaversformed. 1 Consortium formed with E-commerce facilities covering 1010members. Name - ManmeduHandloom Tex Consortium.

● warps / sizes: improved the length ofwarp by about 20%.

● 4 Bankers Meetings organized. 2SHGs have got credit of Rs.1.2Lakhs.

● Sales Generated Rs. 34.00 lakh.Through Handloom House - Rs. 1.50lakh, CCIC - NIL, Exhibition & BSM-Rs. 4.09 Lakh & others 28.50 lakh.

● Total 83 designs developed bypresent designer and Sales

generated Rs.1.15 lakh. 50 productsdeveloped. 90 designs developed &displayed in 6 International Fairs.Total 233 designs developed.

● Yarn Bank: Rs.148.00 lakh suppliedto 2000 weaver. 30 cycles completed.

● Common Facility Centre (CFC) workis under process.

SHANTIPUR (Nadia, West Bengal)

● 14 consortiums formed for welfare ofweavers & better co-ordinationcovering 107 members.

● 158 SHGs formed & capacity buildingprogramme for all. Total 1896weavers covered.

● 300 weavers have got credit ofRs.11.11 Lakhs.

● 6 exposure visits done to Alleppey,Kannur, Kaladi, Pochampally,Bargarh & Nuapatna for 55 weavers.

● Two consortiums linked with thebanks through Mutual CreditGuarantee Fund Scheme.

● Seven designers training programmeswere conducted. 70 local designersare trained through Internationaldesigners.

● 6 dyeing programmes wereconducted, 65 local Dyers in 3batches were trained in the Vat &reactive dyeing techniques&Vegetable dyes.

● Shantipur Handloom Weaversconsortium covered 40 weaversunder MGBBY Scheme for lifeinsurance cover.

● A training on colour forecastconducted with the help ofInternational Designer, Mrs HettyOom. Total 30 stakeholders werebenefited.


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● Visual Merchandising training withthe help of 5 International Designers,PUM held. Total 30 stakeholders ofcluster anticipated.

● persons were trained in Exportprocedure training.

● Total 73 designs developed. Salesgenerated by designer Rs.0.00. 86Prototypes & 5 motives aredeveloped.

● Another 415 stakeholders weretrained in MDP, EDP, Bar coding,Packaging, Visual merchandising,Fabric defects & QA, colour forecast,basic computer & English trainingprogramme, GI & Handloom Mark

● Total Sales & Orders generated Rs167.50 lakhs. Through Exhibition &BSM- Rs. 124.20 lakhs, HandloomHouse - 17.50 lakhs, CCIC - 0.30Lakh, Other buyers - 25.50 lakh.

● Yarn Bank: Four Yarn Banks havebeen established. Rs. 15.00 yarnsupplied to 275 weavers. 3 cyclescompleted.

● CFC and Dye house is underprogress.

Finances of the Committee

The Committee generates internal revenueby way of user charges such as testingand certification charges, consultation fees,etc. The details of the revenue collectionduring the year 2009-10 are given at table13.8.

Market Research Wing

The collection of statistics as stipulated bythe Textiles Committee Act frommanufacturers, dealers and consumers,under section 4(2) (b) of the Act is themajor responsibility of this wing. Indispensing with the above functions,economic and market related research

studies are carried out covering the entiregamut of the textiles production,consumption and distribution. Dependingupon the requirements of the governmentas well as the industry, various surveys/studies have been carried out . In additionto the research, surveys/studies plannedby the Textiles Committee, MarketResearch Wing undertakes clientsponsored studies/surveys also. Theresearch projects/studies activities ofmarket research during the period 1stApril 2009 to 31st March 2010 are asunder:

(i) Market for Textile Clothing - ANational Household Survey: Thereport, "Market for Textiles andClothing" for the year 2009 based onthe National Household Survey hasbeen prepared. The report presentsinformation on the textile purchasesmade by the households in thecountry during January 2008 toDecember 2008. The data processingfor the 2009 data has been initiated.

(ii) Census of Textile EngineeringIndustry Units: Final report anddirectory of units on the basis of1446 textile machinery units in Indiahas been prepared.

(iii) Market potential study for ChikanCraft at South Africa: The report onmarket potential studies for Chikancrafts at South Africa is in the finallap of completion.

(iv) G.I. Facilitation with StateGovernment Sponsorship: G.I.study of following textile products arein progress.

a) Kerala - Balarampuram finecotton sarees and fabrics,Kasargod sarees, Kuthampallysarees and Chenamangalamhandloom product,

b) Uttar Pradesh: Agra Durry,

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Lucknow Jhardosi, MaunathBhanjan sarees, Farrukhabadcotton prints

c) Karnataka: Udupi sarees,Gollelguda fabrics

Studies on Impact of Tariffs andnon tariffs Measures (NTM's) onexports competitiveness: The NTMsstudies on the basis of response fromexporters based at Bangalore, Chennai,Coimbatore, Ludhiana New Delhi, Tirupurand Mumbai are in the final lap ofcompletion.

Under the UNCTAD sponsored project"Strategies and Preparedness for Tradeand Globalisation in Textile and ClothingSector", the activities taken up are:

a) MoU signed with 146 Tier-II partnersincluding state governments.

b) 3500 stakeholders included in thevirtual sector network (VSN) andResearch on Globalisation andWTO.

c) Resource centre has beenaugmented by adding several studies,

Sr. Head of Accounts 2009-2010No. (upto October,

2009

A SERVICE CHARGES

1 Certification to Exporters 185.41

2 Laboratory Testing 527.87

3 Total Quality Management 14.28

4 Market Research Studies/surveys 15.00

5 Sale of publications 15.29

6 Human resource Development (Training) 0.65

7 Quality Inspection 16.59

8 Sale of forms 44.34

Total (A) 819.43

B OTHER RECEIPTS

1 Interest on short term deposit with SBI 202.97

2 Recoverable Advances & deposits including interest 11.66

3 Misc. Receipts (Includes settlement of Insurance claim &sale proceeds of capital assets) 43.76

4 Rent on Auditorium & Board Room of the Committee's Bldg.at Mumbai 3.82

5 Handloom Marks Scheme 18.08

6 Rating fees of Ginning & Pressing Factories 9.03

Total (B) 289.32

Total (A+B) 1108.75

Table 13.8

(in Rs. Lakh)


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documentation reports, periodicalsand books.

d) 7 inceptions, 26 sectoral, 2 regionaland 1 trade linkage workshopsorganised across the country.

e) A total of 14500 stakeholders havebeen benefited.

f) A total of 14 unique textiles andclothing products have been identifiedfor IPR protection through GIs. Studyand documentation, consultativecommittee is in progress. The GIregistered certificates received forLucknow Chikan Craft, Pipli AppliquéUpda Jamdhani, Banaras Sarees andBrocades.

Quality Appraisal & Export CertificationServices: Apart from carrying out qualityinspection of Textile Yarn, Fabrics, Made-Ups and Ready-Made Garments, theWing also issues the following specialcertificates to the exporters as requiredunder various bilateral agreements /schemes.

a) Certificate of Origin underGeneralised System of Preferences(GSP): Under the scheme ofGeneralised System of Preferences(GSP), the Committee issues GSPCertificate in Form-A for textiles andtextile machinery to the exporters.This certificate enables the importersto claim duty preferences at theimporting end.

b) Certificate of Origin (Non-Preferential): From July 2005, theTextiles Committee is also authorizedto issue Certificate of Origin (Non-Preferential) to enable the exportersto establish the country of origin ofthe material exported.

c) Handloom Certificate: Under the

various bilateral agreements withdeveloped countries, the Committeeis issuing Handloom & CottageIndustry Certificates after conductinglimited inspection for ensuringhandloom origin of eligible textileitems to enable the importers toclaim duty concessions.

d) Tariff Rate Quota Certificate(TRQC): Endorsement on TRQC isdone for monitoring import quota forspecific textiles items under 3 FTASas below:

i) For ready made garments fromSri Lanka under ISFTA

ii) For apparels from Bangladeshunder SAFTA

iii) For acrylic yarn from Nepalunder Indo-Nepal Trade Treaty.

The quantum of work carried out by thisWing during 2009-2010 up to November2009 and anticipated figures fromDecember 2009 to March 2010 are givenat table 13.10.

Scheme on Grading of Ginning &Pressing Factories

To propagate the scheme among theGinning Sector, 10 awarenessprogrammes have been conducted fromApril 2009 to November 2009 at Adilabad,Hyderabad, Ludhiana, Jaipur, Solapur,Jalgaon, Guntur, Panipat, Aurangabadand Madurai. As a result 288 applicationshave been received so far for assessment.47 units have been assessed tillNovember 2009 and remaining units willbe completed by March 2010. To providebrand image and marketing support tothe graded units, logo is being developedby National Institute of Design (NID),Ahmedabad.

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Table 13.10

S. Particulars 2009-2010 2009-2010No. (Apr-Nov.09) (Dec.09-

Mar 10)

1. No. of lots Inspected for Quality 552 280

2. No. of GSP Certificates issued 254340 127200

3. No. of Certificates of Origin (Non-Preferential) issued 68281 34140

4. No. of lots examined under limited inspection forloom origin for issue of Handloom certificates 600 300

5. No. of handloom and other specialcertificates issued 755 380

6. No. of samples classified for HS code,description, etc. 2067 1030

7. No. of new exporters registered 750 370

8. No. of registrations renewed 2617 1310

9. Sale of Blank GSP Forms 187536 93770

10. Sale of Blank Certificate of Origin(Non-Preferential) Forms 85727 42860

11. Sale of Blank Certificates under Bilateral Agreement 796 400

12. No of endorsement on TRQC for monitoring importquota of RMG under ISFTA 173 90

13. Endorsement on TRQC for monitoring import quotaof Acrylic yarn under Indo-Nepal Trade treaty(in Metric Ton) 4379 2190

14 No. of endorsement on TRQC for apparel Articlesfrom Bangladesh under SAFTA 116 60

15 No. of units assessed for rating of Ginning &Pressing Factories. 47 240

16 Total revenue generated from activities atS.N. 1 to 15 above. (Rs. in Lakhs) 567.92 284.00


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CHAPTER XIV

CITIZEN CHARTER


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CHAPTER XIV

CITIZEN CHARTER

The main objective of the exercise toissue the Citizen's Charter of anorganisation is to improve the quality

of public service. This is done by lettingpeople know the mandate of the concernedMinistry/Deptt./Organisation, how one canget in touch with its officials, what toexpect by way of services and how toseek a remedy, if something goes wrong.The Citizen's Charter does not by itselfcreate new legal rights, but it surely helpsin enforcing existing rights.

POLICIES AND PROGRAMMES

● Promote and facilitate the growth ofthe textile industry.

● Enable the Indian textile industry tocompete with confidence for anincreasing share of the global textilemarket.

● Ensure a harmonious balancebetween different segments andsectors of the industry, and differentregions.

VALUES

● Remembering at all times that weare employed to be of service to thecountry and its citizens.

● Citing with integrity and judiciousnesswith transparency and accountability,with courtesy and understanding.

● Judiciously managing resources anddoing so with the best use of moderntechnology and managementpractices.

COMMITMENT

● To maintain a constant dialogue with

industry while framing and reviewingpolicies and programmes of thesector.

● To uphold confidentiality of personaland business information disclosedto us.

● To constantly endeavour to keep ouractions and decisions transparentand open.

● To work towards making ourprocedures and transactions assimple as possible.

● To set up sensitive and responsivemachineries for redressing publicgrievances and for sharinginformation with the public on ourplans and decisions.

● To share our national performancewith you over the media and theInternet.

● To provide a system of monitoringthat will ensure that responsesexpected or required from us aresent within the time specified, and allpapers, applications or queries thatare delayed are tracked till they aresatisfactorily dealt with;

● To ensure prompt and sustainedfollow up action on decisions till theexpected output is reached or totheir logical conclusion.

ACTIVITIES

● To frame policies, plans andprogrammes in furtherance of ouraims.

● To provide support, assistance,advice and facilitation to the industry


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within the framework of these policiesand programmes.

● To encourage Research andDevelopment in the sector.

● To encourage and to createconditions that enable an expansionof the human resources skills requiredfor technological advancement of thesector.

● To facilitate and promote exports oftextiles and clothing.

● To ensure the welfare of the weaversand the artisan.

● To coordinate the activities of stategovernments, financial institutions,non-government organizations andall stakeholders for a concerted effortto achieve our aims.

REACH OUT

● To Farmers, weavers, artisans,workers, entrepreneurs, industrialistswho are engaged in the production,processing, weaving, crafting anddesigning of textiles and clothing inthe organized and unorganizedsectors in urban and rural areas.

THROUGH

● Weavers' Service Centres

● The Development Commissioner forHandlooms

● Powerloom Service Centers

● Textile Commissioner's Office

● Jute Commissioner's Office

● Central Silk Board

● The Development Commissioner forHandicrafts

Each of our field organistions have theirown Citizens' and Service Charters inwhich they commit to serve you and setdown standards of performance by whichyou can assess the quality of the servicesand their dedication to perform it well.

STANDARDS OF PERFORMANCE

● Your intimations or applications shallcontinue to be received with on thespot written acknowledgements.

● We will endeavour to respond to allwritten inquiries within 15 workingdays.

● In case of a likely or inevitable delayin decision making, or when an issueis disputed, we will promptlycommunicate the reasons on ourown initiative.

● We will keep our website upto date,and use it to share information onour activities, policies andprogrammes with you.

GUIDANCE & HELP

Our Information and Facilitation Counter(IFC) is situated near Gate No. 5, UdyogBhavan, New Delhi. Publications of theMinistry and general information on itsservices are available at the counter.

WORKSHOP FOR SENIOR OFFICERSTO ATTAIN RESULT BASEDPERFORMANCE MANAGEMENT

With a view to enhance efficiency in theworking of the Ministry and ensure timebound implementation of all theprogrammes and policies, the Ministry ofTextiles in coordination with Secretary(Performance Management), CabinetSecretariat organized a Workshop on ResultBased Performance Management for allthe Senior Officers of the Ministry on 29thJune, 2009. The workshop was attendedby 42 officers including all Joint Secretariesand Directors from Ministry of Textiles andits PSUs. The work imparted the participantswith tools and techniques for implementingvarious schemes and objectives with anoutcome based workshop performanceframework, enhanced the image of theGovernment by ensuring transparency inworking and mapping of all achievementsin order to ensure timely completion of allthe identified activities of the Ministry.

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CHAPTER XV

WELFARE OF SCHEDULEDCASTES, SCHEDULED TRIBES

AND WOMEN


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CHAPTER XV

WELFARE OF SCHEDULED CASTES,SCHEDULED TRIBES AND WOMEN

Schemes & Human ResourceDevelopment. All these schemes play avital role in the empowerment andupliftment of women artisans and artisansbelonging to Scheduled Castes andScheduled Tribes.

Of total workforce engaged in handicrafts,47.42% are women, of which 37.11%belong to SC/ST category (Source :NCAER Survey, 1995-96). There arecertain crafts, which are practicedpredominantly by women like embroidery,mat weaving, etc. Special attention isbeing paid to ensure that a large numberof women artisans get benefit of all thedevelopmental schemes, such as training,marketing related programmes, NationalAwards, exhibitions, etc.

SERICULTURE

In India about 6 million people are involvedin sericulture and its allied industriesmostly in the rural area for their livelihood.Women constitute over 53% of thoseemployed in downstream activities insericulture. Under the Centrally sponsoredCatalytic Development Programme (CDP),the Ministry through Central Silk Boardhad implemented a number ofprogrammes in collaboration with StateGovernments during X Plan. Financialand Technical assistance was providedfor on-farm and post-farm activities likereeling, dyeing, twisting, printing, finishingetc., Benefits accrued inter-alia, to SC/STand women workers. Under the CatalyticDevelopment Programme, the followingprogrammes have been implemented by

HANDLOOMS

The Handloom Sector employs over65 lakh persons in weaving andallied activities with 35 lakh looms.

This sector is weaver- specific/occupationalin nature, with the majority of weaversbelonging to the poorest and themarginalized sections of the society. Ofthe total workforce of 65 lakh persons,women constitute 60.6% and SC constitute9.91%, ST constitute 26.54% and 43.62%weavers belong to the OBC as perHandloom Census, 1995-96.

The various handloom Schemes operatedby this office are weaver's professionoriented and not category related. Forassisting the Handloom Weavers, includingSC/ST and women, the Government ofIndia is implementing variousdevelopmental Schemes through StateGovernments with the objectives of (i)Employment Generation, (ii) Modernizationand upgradation of technology, (iii) Inputsupport, (iv) marketing support, (v)Publicity & Exhibition, (vi) Infrastructuralsupport, (vii) Welfare measures, (viii)Development of Exportable Products (ix)Research & Development.

HANDICRAFTS

Office of the Development Commissioner(Handicrafts) six generic schemes viz.Baba Saheb Ambedkar hastshilp VikasYojana; Design and Technology Up-gradation Scheme; Marketing Support andServices Schemes; Export PromotionSchemes; Research & Development


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CSB for the benefit of SC/ST and womenworkers:

● Promotion of women friendlytechnology packages, developed bythe research institutes of CSB.

● Supply of improved reeling cumtwisting devices and spinning wheelsto the NGOs, women groups,individual women reelers / spinnersat 50% subsidy(CSB & State)

● Training programmes were organizedto impart training to women reelers /spinners on the operation of improveddevices; and

● Implementation of ClusterDevelopment Projects by theintegration of CDP schemes, whereinsupport is provided to Women SelfHelp Groups.

There are no separate programmes/Schemes for SCs/STs under Sericultureimplemented by the Ministry of Textiles.

However, It is estimated that about 30%of the SCs / STs are engaged in mulberrysericulture while 30-90% of SCs / STs areengaged in vanya sericulture. The PlanProgrammes for the target groups areusually implemented by the States. TheState Department of Sericulture have toidentify the existing as well as new farmersand offer the components accordingly totheir requirements from out of the basketof components. The packages under CDPcover three major areas viz., Seed Sector,Cocoon Sector and Post Cocoon Sectorand will be supplemented by othercomponents of support services.

During 2008-09, an amount of Rs.90.74crores has been released / spent by CSBtowards the implementation of CDP. Forthe current year 2009-10, Rs.75.57 croreshas been approved for implementation ofCDP, of which 20% is proposed for SC/ST components. Action will be taken toearmark outlay under SCSP / TSP for2010-11.

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CHAPTER XVI

TEXTILES IN NORTHEASTERN REGION


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CHAPTER XVI

TEXTILES IN NORTH EASTERN REGION

HANDLOOM

North Eastern Region has thehighest concentration ofHandlooms in the country. Out of

25.4 lakh units engaged in handloomactivities, 14.6 lakh units (household andnon-house hold) are concentrated in fiveStates only, i.e., Arunachal Pradesh,Assam, Manipur, Nagaland and Tripura asper the Handloom Census 1995-96. Over53% of looms in the country and more than50% of weavers belong to North EasternStates. The share of these five States ofNorth Eastern Region in the domesticlooms is 82%. However, only 13.4% of thecommercial looms of the country are inthese States and the contribution of theseStates to the total production of handloomfabrics is only 20%.

The Weavers' Service Centres, set up atGuwahati, Agartala and Imphal functionas the Nodal Centre for development ofdesigns and dissemination of informationto the weavers in the region about thebreakthrough made in the handloomtechnology. The IIHT set up at Guwahati,caters to the requirements of the handloomsector for technically qualified manpower.

A special dispensation has been made forthe North Eastern States under theIntegrated Handlooms DevelopmentScheme. In respect of these States, thegrant portion towards Basic Inputs of thescheme is shared between Centre, StateGovernments and the implementingagencies in the ratio of 90:5:5 respectivelywhereas for General States, it is in theratio of 70:20:10 respectively.

Out of the 20 handloom clusters, each

covering over 5000 handlooms, taken upfor development in the first phase duringthe year 2005-06 under the IntegratedHandlooms Cluster Development Scheme(IHDS), 2 clusters are at the North EasternRegion viz one each at Bijoynagar (Assam)and at Imphal (Manipur). Out of 251clusters sanctioned during the year 2007-08 under the IHDS, 56 clusters have beensanctioned to the states falling under theNorth Eastern region and a sum of Rs.8.46crore has been released. During 2009-10,37 clusters have been sanctioned to theStates falling under the NER and a sumof Rs.5.63 crore was released. The detailsare given at table 16.1.

Under Group Approach, 73 projects weresanctioned to the States falling under theNER at a total cost of Rs.4.59 crore.

During 2009-10 (upto February, 2010), 8Clusters have been sanctioned in theNER and a sum of Rs.2.66 crore hasbeen released, which includes 2ndinstalment for the clusters alreadysanctioned previously. 25 Group ApproachProjects have also been sanctioned anda sum of Rs.3.36 crore has been releasedwhich also includes 2nd instalment.Physical and Financial progress: Scheme-wise in NER during 2008-09 is given atTable 16.2.

SERICULTURE

Sericulture is the most important cottageindustry in North East. The famous non-mulberry silks like tasar, Eri and Muga areproduced traditionally in this region. Inorder to promote sericulture in North Eastduring 2009-10, an amount of Rs.47.90


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Table 16.1

State-wise progress of Cluster under IHDS in NER

2008-09 2009-10(upto 28-2-2010)

Name of the State Clusters Amount Clusters Amountsanctioned released sanctioned released(Phase-IV) (Rs. lakhs) (Rs. lakhs)

Arunachal Pradesh 4 69.73 — —Assam 5 75.95 — —Manipur 14 182.98 — —Meghalaya 1 18.00 2 34.14Nagaland 9 162.00 5 90.00Mizoram — — 1 15.65Sikkim — — — —Tripura 4 54.25 — —Total (NER) 37 562.91 8 139.75

Total (All India) 131 1970.29 37 595.00

Table 16.2

Financial & Physical Progress : Total & NER for 2009-10 (upto 28-02-2010)

Name of the Scheme Total of NER

Financial Physical Financial PhysicalAchievements Achievements Achievements Achievements(Rs. crores) (Rs. crores)

1 Integrated Handloom 108.09 37 clusters 17.17 8 clustersDevelopment Scheme

2 Handloom Weavers 102.10 8.76 lakh 22.20 1.41 lakhComprehensive Enrolments EnrolmentsWelfare Scheme

a) Health Insurance 5.10 lakh 0.97 lakhScheme Enrolments Enrolments

b) Mahatama Gandhi 3.66 lakh 0.44 lakhBunkar Bima Enrolments EnrolmentsYojana

3 Marketing & Exports 33.43 560 Events 7.22 168 Events(410 DLEs) (114 DLEs)

4 Mill Gate Price 29.22 919.17 lakh kgs 2.58 lakh kgsScheme Rs. 837.29 Rs. 6.24

crores crores

5 Diversified Handloom 4.45 50.00 lakh — 25.00 lakhDevelopment Scheme Cards will Cards will

be issued be issued

Total 277.29 46.59(16.80% of

total)

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crores was sanctioned and released tothe States of NER.

JUTE

10% of the Jute Technology Mission

budget has been reserved for executingthe JTM schemes in the North EastRegion covering Assam, ArunachalPradesh, Meghalaya, Manipur, Mizoram,Nagaland, Sikkim and Tripura.


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CHAPTER XVII

GENDER JUSTICE


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CHAPTER XVII

GENDER JUSTICE

It is estimated that out of the totalnumber of persons employed in thedecentralized sectors of the Textiles

industry, especially Handlooms,Handicrafts, and Sericulture, 50% arewomen. There are more women in thehousehold industry than in the registeredsmall scale or cottage units. Within theregistered units, there are more womenin unskilled and low paid jobs than inthe skilled or trained category. However,in the organized sector the percentageof women workers is extremely low. Inthe Government and Public sector, inaccordance with the guidelines of theNational Commission for Women,Committees have been set up in thisMinistry and its offices/organizations todeal with complaints relating to thesexual harassment of women in theworkplace. The presence of senior womenin these committees as chairperson oras members has been mandated, anddetailed guidelines on handling suchwork with firmness and tact have beenissued. Emphasis is being laid onsensitizing departmental staff on genderissues. In compliance with the guidelinesand norms given by the Supreme Courtto prevent and deal with cases of sexualharassment of women in the work place,this Ministry has also constituted aComplaints Committee.

SERICULTURE

In India about 6 million people areinvolved in sericulture and its alliedindustries mostly in the rural area fortheir livelihood. Women constitute over53% of those employed in downstreamactivities in sericulture. Under the Catalytic

Development Programme, the followingprogrammes are being implemented byCSB for the benefit of women workers:

● Promotion of women friendlytechnology packages, developed bythe research institutes of CSB.

● Supply of improved reeling cumtwisting devices and spinning wheelsto the NGOs, women groups,individual women reelers / spinnersat 50% subsidy (CSB & State).

● Training programmes were organizedto impart training to women reelers/spinners on the operation ofimproved devices; and

● Implementation of ClusterDevelopment Projects by theintegration of CDP schemes, whereinsupport is provided to Women SelfHelp Groups.

While the above programmes/schemesare continued during the XI Plan withcertain modifications, two more specificschemes/components for womendevelopment namely, (i) Health Insurancefor women workers and (ii) creatingToilets, Rest rooms and Crèches facilitiesfor women in cocoon markets are beingimplemented at a total cost of Rs.3.125crores, of which CSB share is Rs.2.33crores. During the year 2009-10, 4 unitsof Toilets, Rest Rooms and Crechefacilities in 4 cocoon markets of Tamilnaduat a total cost of Rs.10.00 lakhs hadbeen completed. Further an amount ofRs. 15.00 lakh has been released duringthe year 2009-10 for creating 8 suchunits in 8 cocoon markets of Karnataka.Under the Health Insurance scheme for


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women, till October, 2009, 47,620 policieswere covered in 10 States with the CSB'sshare of Rs. 3.02 crores. Further, it hasbeen decided to covere another 94,220women beneficiaries with the CSB'sshare of Rs. 5.92 crores for the currentyear of 2009-10, taking up the totalnumber of policies to 1,41,840 with thetotal cost of Rs. 8.94 cores. It is expectedto create a social security cover forwomen beneficiaries working in thehazardous areas of silk industry and

increase the access of women inmarketing operations.

WOOL

The Central Wool Development Board,Jodhpur administers verious schemes/programmes for the development of wooland woolens in the country. Most ofthese schemes help the handloomssector and provide employment to alarge number of women weavers/workers.

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CHAPTER XVIII

INFORMATION ANDCOMMUNICATION

TECHNOLOGY IN TEXTILES


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CHAPTER XVIII

INFORMATION AND COMMUNICATIONTECHNOLOGY IN TEXTILES

The Textiles sector plays a vital rolein both Trade and employmentopportunity of Indian continent after

agriculture. In order to face the challengingphase, a strategic plan has been executedunder the banner of 'Flagship program'with a tag '100 days agenda'. Vision of theprogram is to construct a globallycompetitive industry with strong brandequity of it products and maintains itsconsistency. Mission of the program is toempower the Ministry and Industry withmodern management techniques appliedthrough the latest available technologyand motivate them to achieve highergrowth rates in delivering services,production and trade. Due to technologicaldevelopments, expectations of trade andindustry from the Ministry are also atmuch higher level especially in gettingonline services and support. To accomplishtheir expectations, various IT initiativeswere achieved by the Ministry likeproviding on-line services like e-marketing,design pool for traditional andcontemporary crafts with regionallanguages interface, strengthening theinformation dissemination through websiteswith more interactive features.

National Informatics Centre (NIC),Department of Information Technology,Ministry of Communications & InformationTechnology participated to implement theIT initiatives of the Flagship programsuccessfully within the time frame. It isproviding full-fledged technical support indeveloping and maintaining the ICTinfrastructure and net work servicesalong with implementing variousinformation systems/analytical tools for

usage at various levels of theManagement.

Enhancing websites

The web technology has been well provenin establishing an enhanced and enrichedelectronic platform for providing moreeffective and efficient e-governanceservices. Ministry and its variousorganizations had made integrated andcoordinated efforts to deliver the informationservices as per the requirements of theindustry. All major textiles organizations (twenty three in number) including attached/subordinate offices, public sectorundertakings, export promotion councilsand educational institutes like NIFT etcworked together to implement the program.

Being it is a channel for an efficient andeffective way of information disseminationwith the Industry, websites werereorganized and strengthened with usercentric content pages, interactive channelswith industry penetration and awarenessprograms. More utilities like Multi languagesupport, online-feed back, FAQs areincorporated. Moreover, features likeFeedback and comments and Web linkageshave been integrated on various websitesto enhance their interactiveness. Formsrequired to be submitted and theapplications under various schemes ofMinistry & its organizations are madeavailable online for users in their websites.Apart from this, statistical data & analysisrelating to various sectors of cotton, jute,silk, manmade fiber and their magazines/journals are also made available onrespective websites for free of cost. Regular


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updations Events, Photo gallery, Mediafeedback are incorporated. Ministry's newwebsite at http://ministryoftextiles.gov.inwas launched by the Minister, equippedwith the above features.

E-marketing Portals

Due to technological advancement, e-Marketing has caught the imagination ofconsumers world over and is havingpotential transaction. This also strengthensthe Country's participation andcompetitiveness in global trade. Ministryof Textiles has taken the initiative tocapture a sizable part of this growingmarket under the strategic leadership ofTextiles Minister. With a view to providee-Marketing facilities for Indian Handicraftsand Handlooms products, Minister ofTextiles launched the e-Marketing portalsdeveloped by the Central CottageIndustries Corporation of India Ltd. (CCIC),http://www.cottageemporium.in and theHandicraft and Handlooms ExportCorporation of India Ltd. (HHEC) http://www.hheconline.in in Aug, 2009 underthe guidelines of the Ministry.

These portals display with more than1,000 wide ranging handicrafts andhandlooms products with specifications,including origin and place of production,high quality graphical display, a singlewindow gateway for procurement, interfacefor customization along with e-payment.These portals are equipped with propersecured transaction environment, user-friendly navigation, customer supportservices like online tracking of theshipment, transparent redressalmechanism for any disputes arisingthereof, grievances etc. Impact studiesconfirm the progress growth positively.

Design pool portal

In order to benefit the Weavers of theHandlooms Sector, near about 1,500 freecontemporary designs are madeavailable in the websites of Office of

Development Commissioner (Handlooms)in http://www.designdiary.nic.in/designpool.asp and National Institute ofFashion Technology (NIFT). These areimages in easily downloadable format,tagged with technical details in regionallanguages to reuse or reproduce. Thedesigns have an important bearing on themarketing of handcrafted and handloomsproducts as well as motivate the weaversand artisans to innovate new contemporaryproducts. It extends its support insustaining and capturing both domesticand export markets.

ICT Infrastructure up gradations

Additional Hardware/Software, Networkequipments and visual aids are installed atvarious sections / conference room as perrequirement. Moreover, an integrated planfor enhancing the LAN services coveringVideo Conferencing, Video Phone, etc. forthe Ministry is under progress.

Implementation of E-Governance

As per the recommendations of 11threport by the Second Administrativereforms Commission of India to create'Simple, Moral, Accountable, Responsiveand Transparent' (SMART) governance,ministry has already taken significantsteps. Economic Research and Marketintelligence Unit (ERMIU) is providing anintegrated interface for collection anddissemination of Information to Trade andIndustry through a dedicated web site(http://ministryoftextiles.gov.in/ermiudel/).Various analytical reports on Prices ofTextiles items, Production of Yarn/Clothetc, Sectroral information of Cotton,Silk,Man Made Fibre, Jute, and Import/Exportof Indian Textiles are available on theERMIU web site along with Indianeconomy indicators. Latest information onthe Policies, Plans, Budget, Schemes,Acts, Notifications and initiatives taken bythe Ministry are made available on theweb site of the Ministry (http://ministryoftextiles.gov.in). Various office

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automation applications like File TrackingSystem, Court Case Monitoring System,Monitoring of VIP references etc. arebeing maintained. Moreover existingservices on intranet has been upgradedby linking various in-house applications.

Development of web based e-governanceapplication for Handicrafts sector ' e-shilp'is initiated with the deployment of Systemfor registration of Implementing Agenciesand Eligibility Grading Module which willevaluate the eligibility criteria for enjoyingthe more scheme benefits through the O/o Handicrafts website.

ICT implementation in otherorganization

Attached and subordinate offices under

the Ministry have also upgraded their ICTinfrastructure as per the requirement withsophisticated LAN. These offices hadenhanced their respective web sites tobecome more users centric under theflagship program. Various applicationforms required by the public or Tradecommunity for submitting the proposalunder different schemes are also providedon the site for downloading. Variousstatistical reports on the Industrialdatabase are also being published for thereference to the industry. To disseminatethe information at the grass root level,field offices are equipped with Internetand Email facility. Awareness courses forthe purpose are organized for officials tooperate and deliver the services moreeffectively.


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CHAPTER XIX

VIGILANCE ACTIVITIES


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The Vigilance Unit of the Ministry isheaded by a Chief Vigilance Officer(CVO) who is also Joint Secretary

of the Ministry. The CVO is appointed onthe advice of the Central VigilanceCommission. The CVO is the nodal pointin the vigilance set up of the departmentand is entrusted with the following:-

● Identification of sensitive areas proneto malpractices/temptation and takingpreventive measure to ensureintegrity/efficiency in governmentfunctions;

● Taking suitable action to achieve thetargets fixed by the Department ofPersonnel and Training on anti-corruption measures;

● Security of complaints and initiationof appropriate investigation measures;

● Inspections and follow up action onthe same;

● Furnishing of comments of theMinistry to the Central VigilanceCommission on the investigationreports of the Central Bureau ofInvestigation;

● Taking appropriate action in respectof departmental proceedings on theadvice of Central VigilanceCommission or otherwise;

● Obtaining second stage advice of theCentral Vigilance Commission,wherever necessary; and

● Obtaining the advice of Union PublicService Commission in regard to the

CHAPTER XIX

VIGILANCE ACTIVITIES

nature and quantum of penalty to theimposed, wherever necessary.

There are also part time Vigilance Officersin the Attached and Sub-ordinate officesof the Ministry of Textiles. However, theoverall responsibility of vigilance activitiesof these offices rests with the ChiefVigilance Officer of the Ministry of Textiles.

Preventive Vigilance continues to receivepriority attention with emphasis primarilyon identification of areas sensitive orprone to malpractices and temptation.The guidelines/instructions issued fromtime to time by the Department ofPersonnel and Training and the CentralVigilance Commission in this regard arefollowed. Action taken includes thefollowing:-

i) The areas of sensitive nature areidentified in the Ministry andSurveillance is kept thereon.

ii) Regular and Surprise Vigilanceinspections are being carried out inthe Ministry and the offices under itscontrol, throughout the year.

iii) Security measures have beenstrengthened appropriately.

iv) The Agreed List and List of PublicServant of Doubtful Integrity isprepared.

Vigilance Awareness Week - 2009 wasobserved in the Ministry of Textiles fromNovember 3-7, 2009. During the week,the Essay and Debate competitions wereheld. Discussions were held on issuesarising out of corruption. The mainemphasis was on Preventive Vigilance


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and to create Awareness amongst Officersand staff of Ministry of Textiles. The Weekwas also observed in the attached and

sub-ordinate Offices of the Ministry andalso by the Central PSUs and StatutoryBoards.

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CHAPTER XX

OBSERVATIONS OF THECOMPTROLLER AND

AUDITOR GENERAL OF INDIA


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CHAPTER XX

OBSERVATIONS OF THE COMPTROLLER ANDAUDITOR GENERAL OF INDIA

MINISTRY OF TEXTILES

I. AUDIT Report No. PA 27 of 2009-10 (Performance Audit)

National Textile Corporation Limited

National Textile Corporation Limited(Company) incorporated in April 1968was managing 119 textile mills taken overby the Government of India, through itsnine subsidiaries. All these subsidiarieswere declared sick under the sick IndustrialCompanies (Special Provisions) Act 1985.Revival schemes (2002) and a modifiedrevival scheme (2006) were approved bythe Board for Industrial and FinancialReconstruction/Government of India whichhad envisaged closure of unviable millsand revival of viable mills. According tothese schemes, 77 unviable mills were tobe closed, 40 viable mills were to berevived (22 through modernization and 18through public private partnership) andtwo mills in Pondicherry were to betransferred to the State Government. Thescheme was self-financing, the fundsrealized from sale of surplus assets wereto be utilized for revival/modernisation.After analyzing the whole process of saleand disposal of land and buildings, it wasobserved that:

● The Board for Industrial and FinancialReconstruction/Government of Indiaguidelines for determination ofreserve price were not followed incertain cases.

● Reports of consultants were notevaluated resulting in under fixationof reserve price by Rs.493.46 crore

in five cases.

● Tender documents had certainirregularities resulting in loss orRs.185.10 crore in three cases.

● Properties were sold belowregistration/circle rates resulting inloss of opportunity to earn Rs.1043crore in six cases.

● Properties were sold below reserveprice and without following the tenderprocess in contravention of BIFR/GOI guidelines.

● No prescribed procedure for valuationof building structures was inexistence.

● There were inconsistencies amongthe guidelines issued by BIFR/GOIand the procedure laid down by theCompany.

Pending

II. Report no. 9 of 2008 (Commercial)

2.5 Internal control over financialreporting

Internal control is the process designedand implemented by those charged withgovernance, and the management toprovide reasonable assurance about theachievement of the entity's objective withregard to reliability of financial reporting,effectiveness and efficiency of operations,compliance with applicable laws andregulations, and to check fraud andmisappropriation, Internal controlmeasures ensure that the financial


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statements prepared give a true and fairview and the degree of reliance that astatutory auditor can place on the financialstatements for the purpose of reporting. Inaccordance with the directions issued bythe C&AG under Section 619(3) (a) of theCompanies Act, 1956, the statutoryauditors are required to submit a reporton the adequacy or otherwise, of internalcontrol measures followed by of thecompany and to suggest improvement, ifany, in the areas of management,safeguarding and verification of fixed andcurrent assets including debtors, cashand bank balances.

The deficiencies reported by the statutoryauditors with regard to non-maintenanceof fixed assets register, lack of physicalverification of fixed assets, non-fixation ofinventory stock holding norms, lack ofmonitoring the recovery of outstandingdues, and absence of policies for preventionand detection of frauds in the governmentcompanies including deemed governmentcompanies are given at table 20.1.

The particulars of the companies indicatinglack of internal controls in the abovementioned areas are given below:-

45. Jute Corporation of India Limited:

(i) The Company did not have any

formal Investment Policy.

(ii) The internal control procedure inrespect of the issue of Challan /Delivery Instructions had to bestrengthened.

(iii) The scope of internal auditProgramme needed to be extendedto include risk- based area.

(iv) The Company did not have adelineated fraud policy.

66. The Handicrafts and HandloomsExports Corporation of India Limited.

(i) The Company did not have adelineated fraud policy.

(ii) The physical verification inventoriesneeded to be increased in case ofhigh value items.

(iii) The system of disposal of non-movingand slow-moving items was notadequate.

Pending

9 Report no. 9 of 2008 (Commercial)

2.6 Compliance with AccountingStandards.

With an objective to harmonise the diverse

Table 20.1

S.No. Area of Deficiency Number of companies

1. Fixed Assets 14

2. Investments 5

3. Internal Procedures and Operational Efficiency 15

4. Debtors 11

5. Inventory 21

6. Cash Verification 3

7. Internal Audit 39

8. Delineated Fraud Policy 15

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accounting practices, adherence to theAccounting Standards (AS) is imperativefor preparation of financial statements inaccordance with the generally acceptedaccounting principles. Section 211(3A) ofthe Companies Act, 1956 read with Section211(3C) of the Act requires that everyprofit and loss amount and balance sheetof the company shall comply with theaccording standards recommended bythe Institute of Chartered Accountants of

India (ICAI) or as may be prescribed bythe Central Government in consultationwith the National Advisory Committee onAccounting Standards. However, duringcourse of audit, statutory auditors and theC&AG observed departures from themandatory Accounting Standards by thefive listed government companies, 35unlisted government companies and twostatutory corporations (42 PSUs). Thedetails are given below:

S. Name of the Category Government company No. of theNo. company (GC), deemed Accounting

Government company Standard(DGC) and statutorycorporation (SC)

1. Handicrafts and Handlooms Unlisted GC 9 and 15Exports Corporation ofIndia Limited.

Pending


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Table 20.2

COMMERCIAL PARAS

S. Report No. Audit Subject Current StatusNo. Para No.

1. 2 of 2005 2.1.54 (v) The title deed in respect of Pending with auditproperties at New Delhi andChennai, were not registeredin the name of company.

2. 3 of 2005 21.1.1 Irregular payment of ex-gratia Pending with audit(Commercial)

3. 21.1.2 Avoidable expenditure on Pending with auditregularization of contact labour

4. 4 of 2005 14.5.1 Sale of surplus land and Pending with audit(Commercial) building

5. 14.5.2

6. 14.6.1

7. 14.6.2

8. 14.6.3

9. 14.7.1

10. 11 of 2006 1.5.31 (2) Overstatement of sales and Pending with audit(Commercial) purchases by The Handicrafts

& Handlooms ExportsCorporation of India Limited

11. 1.5.32 Non deposit of PF, ESI etc by Pending with auditNational Textile Corporation(APKK&M) Limited

12. 2.1.9 (1) The Handicrafts and Handlooms Pending with auditExports Corporation of IndiaLimited, delegation of financialpowers needs to be reviewedand timely recovery ofoutstanding dues needsto be improved.

13. 9 of 2007 1.1.5 Accounts in arrears Pending with audit(Commercial)

14. 2.4.4.4 Financial Reporting by PSUs Pending with audit

15. 2.6.1.8 Financial Reporting by PSUs Pending with audit

16. 11 of 2007 19.2.1 Irregularity in implementation of Pending with audit(Commercial) Modified Voluntary Retirement

Scheme

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S. Report No. Audit Subject Current StatusNo. Para No.

17. 4.2.2 In active particulars as per PendingGlobal Compact integritymeasures

18 9 of 2008 3.7.1 Non official Directors on the Pending(Commercial) board of unlisted Government

companies

19 2.4.4.6 Observation on quality of Pendingfinancial statements

20 2.4.4.4 Qualifications on the accounts Pendingof unlisted Governmentcompanies including deemedgovernment companies by thestatutory auditors

21 2.5 Internal control over financial Pendingreporting

22. 2.6 Compliance with Accounting PendingStandards

CIVIL

S. Report No. Para No. Subject Current StatusNo.

1. 1 of 2001 11.12 (8) Unspent provision Pending

2. 2 of 2004 10.1 Recovery at the instance of Pendingaudit (Special JuteDevelopment Fund)

3. 1 of 2008 15.1 Non-completioin of Urban Haats Pending

4. 1 of 2008 15.2 Deficient Property management Pending(NCJD)

5. 1 of 2008 15.3 Outstanding contingent Pendingadvances

6. 2 of 2008 9.1 Unnecessary expenditure Pending(NCJD)


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CHAPTER XXI

PERSONS WITH DISABILITIES


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The number of persons with various disabilities in various posts in Group 'A','B','C' and'D' against the 3% vacancies to be reserved for them under Section 33 of PWD Actis given at table 21 (as on 31.03.2009).

Table 21

CHAPTER XXI

PERSONS WITH DISABILITIES

S. Office/Organisation Group A Group B Group C Group D

No. SS PWD SS PWD SS PWD SS PWD

1. Jute ManufacturesDevelopment council(JMDC) - - - - - - - -

2. National HandloomDevelopment CorporationLimited (NHDC) 49 - 64 - 55 - 20 2

3. The Jute Corporation ofIndia Ltd. (JCI) 70 2 114 1 709 8 227 3

4. Central WoolDevelopment Board(CWDB) 2 - 4 - 22 - 9 -

5. Textiles Committee 80 - 173 1 222 2 88 -

6. O/o the DevelopmentCommissioner(Handlooms) 101 - 105 - 687 12 377 3

7. Sardar VallabhbhaiPatel Institute ofTextile Management(SVPITM) - - - - - - - -

8 National Institute ofFashion Technology(NIFT) 328 - 168 - 263 1 97 -

9. Central Silk Board (CSB) 968 6 393 3 1994 35 1007 14

10. O/o the TextileCommissioner 61 - 176 2 296 3 160 3

11. O/o the Commissionerof Payments 1 - 1 - 3 - 4 -

12 O/o DevelopmentCommissioner(Handicrafts) 34 - 312 - 1510 2 628 3


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S. Office/Organisation Group A Group B Group C Group D

No. SS PWD SS PWD SS PWD SS PWD

13. O/o the JuteCommissioner 11 - 13 - 58 - 29 -

14. Handicrafts andHandlooms ExportsCorporation of IndiaLtd. (HHEC) 24 - 33 - 79 2 19 -

15. The Cotton Corporationof India Ltd. (CCI) 72 - 65 2 915 8 145 4

SS- Sanctioned StrengthNo. of PWD- Number of persons with disabilities employed.

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Documents

annual report textile industry