POLICY NOTE 2010 – 2011 HANDLOOMS AND TEXTILES Index S. Contents P.No. No. 1 Introduction 1 – 2 2 Textile Industry in 2 – 6 Primary Objectives of Department of 3 HANDLOOMS, HANDICRAFTS, Handlooms and Textiles 6 – 9 Development and Welfare Scheme 9 - 40 TEXTILES AND KHADI DEPARTMENT 4 – Handloom Industry Other Initiatives taken by the 5 41 – 54 HANDLOOMS AND TEXTILES Department 6 Powerloom Sector 54 – 61 Part II Scheme for the year 7 61 – 62 2010 – 2011 POLICY NOTE 8 Co-operative Spinning Mills 62 – 63 The Tamil Nadu Handloom

9 Weavers’ Co-operative Society 2010 – 2011 Limited, (Co-optex) 64 – 71 Tamil Nadu zari Limited, 10 71 – 73 Kancheepuram Tamil Nadu Handloom Development 11 74 – 75 DEMAND No. 17 Corporation Limited Tamil Nadu Textiles Corporation 12 75 – 77 Limited, K.K.S.S.R.RAMACHANDRAN Tamil Nadu Co-operative Textile 13 77 – 79 MINISTER FOR BACKWARD CLASSES Processing Mills Limited, Tamil Nadu Co-operative Spinning 14 89 -80 Mills Federation Limited © Budget Provision for the year 2010 15 81 - 83 Government of Tamilnadu - 2011 2010

2 industries dependent on this sector such as those HANDLOOMS AND TEXTILES manufacturing machineries, accessories, stores, POLICY NOTE FOR THE YEAR 2010-2011 ancillaries, dyes and chemicals, etc.

1. INTRODUCTION 2. TEXTILE INDUSTRY IN TAMIL NADU

In the history of Indian Textile Industry, among the The Indian Textile Industry has an overwhelming majority of the sub-sectors, Tamilnadu occupies a presence in the economy of our country. Apart from prominent position. Tamilnadu contributes about one providing one of the basic necessities of life, the textile third of the total textile production in the country. The industry also plays a pivotal role through its contribution State Textile Industry is predominantly based. to industrial output, employment generation, and the Some of the textile products from Tamilnadu which are export earnings. The textile industry contributes around 4 universally recognized for the excellent craftsmanship percent to the Gross Domestic Product (GDP) and and their uniqueness are Kancheepuram Sarees, accounts for 12 percent to the country’s export earnings. Bhavani (Jamukalam), Madurai Sungadi Sarees, Further, the Textile Industry provides direct employment Coimbatore Kora Sarees, Paramakudi Sarees, Salem to over 3.50 crore people. Thus, the growth and all Silk Dhoties, Erode and Home Textiles, Tirupur round development of this industry has a bearing on the Knitwear Garments, etc. The State Textile Sector improvement of our economy. provides direct employment to around 40 lakh people.

The textile Industry comprises production units like 2.1 Spinning yarn, weaving, knitting and garment, distribution channels The spinning mills are the backbone of the for raw materials and finished goods and subsidiary Tamilnadu’s industrial development. The spinning

3 4 industry in Tamilnadu has been able to keep pace with sector in produces about 6677 million sq. metres of technological trends. Tamil Nadu enjoys the premier cloth, of which, the share of Tamilnadu is about 821 position in the country, both in terms of spindleage and million sq. metres accounting for 12.30 % of country’s production of yarn. Out of the 3102 spinning mills in production. India, 1931 are located in Tamilnadu. 2.58 lakh There are 1175 Weavers Co-operative Societies in workforce are employed in the Spinning Mills. In the Tamil Nadu having 2.32 lakh weavers as members. The year 2009-2010, Tamilnadu produced about 1660 million annual turnover of handlooms in Tamilnadu is kgs of spun yarn which is 40 percent of the national Rs.1650.00 crore, of which the share of Co-operatives is production of 4150 million kgs. around Rs.911.25 crore.

2.2 Handloom Weaving The Central and State Government, since

The State Handloom Industry, with its long independence, have been following a policy of promoting tradition of excellence in craftsmanship, occupies a place and encouraging the Handloom Sector through a number of eminence in preserving the state’s heritage and plays of programmes and schemes. Concerted efforts are an important role in the economy of the State. Tamilnadu being made through these programmes to increase the has the pride for its unique Handloom woven products production, productivity and efficiency of the Handloom like Silk Sarees, Cotton Sarees, Furnishing Materials, Sector and for the uplift of the handloom weavers. dhothies, lungies, towels, etc. There are 34.86 lakh 2.3 Powerloom Weaving handlooms in India, of which 4.13 lakh handlooms are located in the State. The handloom sector provides Powerloom sector is one of the most significant employment to around 6.08 lakh weavers. The handloom segments of the textile industry in Tamil Nadu.

5 6 Tamilnadu holds the second position in the country in action is being taken to confirm to the environment terms of number of powerlooms installed. There are standards prescribed by the Pollution Control Board by 22.24 lakh registered powerlooms in India, of which, inducting modern technology. Tamilnadu has 4.46 lakh registered powerlooms with 2.5 Knitting and Garmenting Sector 11.16 lakh workforce. The cloth production in the The knitting and garmenting sector is the final powerloom sector in India is about 54000 million sq. stage of the textile value chain and the maximum value- metre, of which, the State contributes about 10800 million addition takes place at this stage. This is an export sq. metre. The readymade garments and home textiles intensive sector, besides there is also significant growth sectors which are mainly focusing on international market in organized retailing / growing consumerism in the are heavily dependent on the Powerlooms sector to meet domestic market. Knitted and hosiery garment units are their fabric requirement. located in Tiruppur Cluster and woven garment units are

2.4 Processing Sector clustered around Chennai. This Industry provides employment to rural population especially to large The processing of yarn and fabrics at pre-loom as number of women. well as post-loom stages is significantly contributing to the essential customization of the product and also 3. PRIMARY OBJECTIVES OF DEPARTMENT OF HANDLOOMS AND TEXTILES aesthetic value addition. Out of the 10397 hand processing units in the country, 2614 hand processing (i) harmonious development of handloom, powerloom and textile sectors, units are located in Tamilnadu. Similarly, out of

2510 power processing units in India, 985 power and processing units are located in the State. At present,

7 8 (ii) Welfare of all concerned particularly the 2. 185 Powerloom Weavers Co-operative Societies weavers and textile workers 3. 18 Co-operative Spinning Mills (5 Co-operative

Spinning Mills viz., Anna (Theni), Bharathi This Department promotes socio-economic (Thoothukudi), Pudukottai, Kanyakumari and wellbeing of the weavers by implementing various Krishnagiri are now functioning) welfare and developmental schemes of the Government 4. Tamilnadu Handloom Weavers Co-operative intended to benefit the weavers. The overall responsibility Society Ltd., (Co-optex), Chennai lies with this Department for ensuring the availability of 5. Tamilnadu Zari Ltd., Kancheepuram raw materials to all sectors of the textile industry, 6. Tamilnadu Handloom Development Corporation production of yarn and fabrics at reasonable prices as Ltd., Chennai well as creating an environment to promote the sale of 7. Tamilnadu Co-operative Textile Processing Mills finished products. For the Weavers Co-operative Ltd., Erode Society, the Department ensures the supply of yarn and 8. Tamilnadu Textile Corporation Ltd., Coimbatore other raw materials and arranges marketing of the 9. Tamilnadu Co-operative Spinning Mills Federation finished products through the showrooms of Co-optex, Ltd., Chennai. Loom world and Societies as well as other sales outlets in and outside the State. The Director of Handlooms and Textiles is vested

The following are the institutions under the with powers delegated under the Tamil Nadu administrative control of the Department of Handlooms Co-operative Societies Act, 1983 and Rules 1988. and Textiles:- Therefore, the Director is the "Functional Registrar" for the Handloom and Powerloom Weavers Co-operative 1. 1175 Handloom Weavers Co-operative Societies Societies and other Co-operative Institutions functioning

9 10 under the Department of Handlooms and Textiles in the The sarees and dhothies required for this scheme State. The Director also functions as the "State Textile have been produced by the handloom and powerloom Authority" and as such, has a general responsibility to weavers Co-operative societies in the State. This facilitate the smooth functioning of the Spinning and scheme provides continuous employment to 13,000 Textile Mills, processing units, Hosiery units, Handlooms handloom weavers of 230 handloom weavers and Powerlooms. Various welfare schemes for the Co-operative societies and 35,000 powerloom workers of weavers are implemented by this Department at the field 133 powerloom weavers co-operative societies besides level by the 18 circle Deputy Directors/Assistant fulfilling the clothing need of nearly 3.18 crore rural and Directors. urban poor people in Tamil Nadu. The distribution of dhothies and sarees for Pongal 2010 was inaugurated by 4. DEVELOPMENT AND WELFARE SCHEMES the Hon’ble Chief Minister on 01.01.2010 in Chennai and the distribution was made throughout the State. For HANDLOOM INDUSTRY Pongal 2010, 158.64 lakh dhothies and 158.96 lakh

4.01 FREE SUPPLY OF DHOTHIES AND SAREES sarees were produced and supplied in time. SCHEME

The Free Supply of Dhothies and Sarees Scheme The scheme of Free Supply of Dhothies and will be continued during the year 2010-2011. Towards Sarees to the rural and urban poor is being implemented implementation of this Scheme, a provision of continuously. During the year 2009-2010, this scheme Rs.256.00 crore has been made in the Budget Estimate has been implemented at a cost of Rs.256.00 crore. for the year 2010-2011.

11 12 Further, the dhothies and sarees for free societies. During the academic year 2009-2010, 124.46 distribution to old age pensioners during Diwali and lakh metres of uniform cloth valued at Rs.42.90 crore Pongal festivals are also produced annually through were produced and supplied to Social Welfare weavers Co-operatives in the State. During the year Department. Under this scheme, 53,63,597 students 2009-2010, 7.47 lakh dhothies and 26.14 lakh sarees have thus been benefited. valued at Rs.38.95 crore were produced and supplied by Besides, Rs.15.28 crore worth of uniform cloth the weavers Co-operative societies. The dhothies and materials such as Pant, stripped shirts, Churidar Pant, sarees required for free distribution for old age Churidar Thuppatta to the tune of 25.03 lakh metres pensioners for the year 2010-2011 will be produced and required for the Departments of Adi Dravidar and Tribal supplied by the societies. Welfare, Backward Classes and Minorities Welfare, Most Backward Classes and Denotified Communities have been produced during the year 2009-2010 by the 4.02 SCHEME OF FREE SUPPLY OF UNIFORMS TO Handloom and Powerloom Weavers Co-operative SCHOOL CHILDREN Societies and supplied for the benefit of 3,32,164

students. The scheme of Free Supply of Uniforms to School Children Studying in Std. I to Std. VIII covered under Under the Scheme of Free Supply Uniforms to Nutritious Noon Meal Programme is being implemented School Children, the cloth required for the Departments by the . The uniform cloth of Social Welfare, Adi Dravidar and Tribal Welfare, such as Khaki Drill, Blue casement, Blue Dhavani and Backward Classes and Minorities Welfare, Most white shirting required for this scheme are produced by Backward Classes and Denotified Communities for the the handloom and powerloom weavers Co-operative academic year 2010-2011 will be produced and supplied

13 14 by the handloom and powerloom weavers Co-operative The rebate subsidy scheme is being implemented societies. by the Government continuously in order to promote the

sale of handloom cloth. This scheme enables the primary weavers co-operative societies and Co-optex in 4.03 FREE POWER SUPPLY TO HANDLOOM liquidating their stock, and also safeguarding the WEAVERS handloom industry from the onslaught of the Mill and Powerloom Sector. During the budget speech for the year 2006-2007, it was announced that Free Power Supply upto 100 units The State Government provide 20% rebate for the bimonthly will be provided to those handloom weavers sale of handloom cloth to the primary weavers’ who are engaged in weaving activity and having own co-operative societies and Co-optex throughout the year workshed. Accordingly, the scheme of free power supply for the retail and wholesale. For cotton varieties 20% or to handloom weavers has been implemented by the Rs.100/- per unit whichever is less, for silk varieties 20% Government of Tamil Nadu with effect from 01.08.2006. or Rs.200/- whichever is less is being provided as rebate. At present 1,52,538 handloom weavers who are having Apart from this, on the eve of birth day of Perarignar own workshed are getting benefits under this scheme. Anna, an additional 10% special rebate over and above Towards implementation of this scheme for the year the normal rebate of 20% i.e., 30% rebate was allowed 2010-2011, a provision of Rs.11.20 crore has been made for a period of 139 days from 15.09.2009 to 31.01.2010. in the Budget Estimate for the year 2010-2011. Under this special rebate 30% or Rs.150/- per unit whichever is less for cotton varieties and 30% or Rs.300/-

4.04 REBATE SUBSIDY SCHEME whichever is less for silk varieties is allowed.

15 16 Besides, in order to increase the sale of silk record sale of handloom goods to the extent of Rs. sarees and to reduce the stock considerably, the 983.56 crore were effected during the year 2009-2010. Government have permitted the primary weavers co- operative societies and Co-optex to allow a special The rebate subsidy scheme, will be continued rebate of 10% without ceiling for a period from during the year 2010-2011. A provision of Rs.118.00 12.01.2010 to 31.01.2010 on the eve of pongal and crore has been made in the Budget Estimate for the year marriage seasons in the month of Thai. During this 2010-2011 for this purpose. special rebate period, silk weavers co-operative societies and co-optex have sold silk fabrics worth Rs.15.93 crore. 4.05 INTEREST SUBSIDY SCHEME

In order to promote the sale of handloom cloth in the market easily, the Government of India is also The Handloom Weavers Co-operative Societies contributing to the rebate subsidy scheme and provide are getting financial assistance in the form of loan as their share of assistance under Marketing Incentive working capital through District Central Co-operative Component of Integrated Handloom Development Banks. With a view to reduce the interest burden of the Scheme. During the year 2009-2010, the Government of Handloom Weavers Co-operative Societies inrespect of India have released Rs. 36.98 crore towards Marketing interest charged by the District Central Co-operative Incentive to the State Government. The State Banks for the working capital loan, the 3% interest Government have sanctioned rebate subsidy to the subsidy scheme had been implemented by the extent of Rs.118.00 crore during the year 2009-2010. Government. This Scheme was discontinued with effect With the help of these rebate schemes as never before a from 01.10.2002.

17 18 The Government of Tamil Nadu is implementing the Interest Subsidy Scheme to Handloom Weavers Co- To safeguard the interest of the handloom operative Societies with effect from 01.04.2008 and weavers and to develop the handloom industry, the provide 4% interest subsidy for the interest charged by Government of India have introduced Integrated the District Central Co-operative Banks on the working Handlooms Development Schemes during XI-th Five capital loan availed by them in order to reduce the Year Plan. Consequent on the introduction of the interest burden of the Handloom Weavers Co-operative scheme, the State Government is also contributing its Societies. share and implementing the scheme from 2007-2008.

During the year 2008-2009, a sum of Rs.4.70 The major 4 components of Integrated Handlooms crore has been sanctioned by the Government towards Development Scheme are as follows:- interest subsidy. During the year 2009-2010, a sum of (i) Cluster Development Programme Rs.12.66 crore has been released. (ii) Group Approach for Development of The Interest Subsidy Scheme will be continued Handlooms during the year 2010-2011. Towards implementation of (iii) Assistance for Handloom Organisations this scheme for the year 2010-2011, a provision of Rs.13.00 crore has been made in the Budget Estimate (iv) Assistance for Innovative Ideas and Publicity, for the year 2010-2011. Monitoring, Supervision, Training and Evaluation of Scheme

(i) Cluster Development Programme 4.06 INTEGRATED HANDLOOMS DEVELOPMENT SCHEME The cluster development scheme is being implemented with an objective of development of

19 20 handloom weavers by forming groups. Under this Groups scheme assistance is provided by both State and Central 2 Formation Rs.50,000/- of consortium one time Government for handloom clusters having 300 to 500 3 Corpus Fund for Rs.3.00 lakh looms. In Tamil Nadu 3 major clusters with the total Yarn Depot one time project cost of Rs.6.00 crore are being implemented at 4 Design Development & Rs.3.00 lakh for Rs.2.00 crore each at Tiruchirappalli, Tiruvannamalai and Product Diversification purchase of computer Aided Kurnchipadi. Further, 37 mini clusters are also being Textile Design implemented. Under this scheme, financial assistance to system (CATD), Colour forecast, the maximum of Rs.60.00 lakh is being provided for each market forecast cluster for three years period for various components one time. such as skill upgradation, purchase of new looms and Rs.6.00 lakh for accessories, setting up of dyeing units, common facility engaging designer for 3 years centers, opening of showrooms, conducting of exhibition / fairs, publicity, providing of design inputs etc., 5 Infrastructure Facilities/ Rs.30.00 lakh Common Facility one time The details about financial assistance provided Centre (Subject to the Ceiling of 50% of the under various components of Cluster Development total project cost) Programme are as follows:- 6 Advertisement and Rs.50,000/- towards Publicity (Subject to advertisement, Sl. Components Financial the Ceiling of 20% of brochure, catalogue No. Assistance per the total project cost) for 3 years cluster 1 Baseline survey, Rs.1.25 lakh diagnostic study one time formation of Self Help

21 22 Rs.6.00 lakh for 3 exhibitions / fairs Rs.3.00 lakh for 6 for 3 years buyer seller meet for 3 years

Rs.1.00 lakh towards market survey / intelligence one time.

Rs.3.00 lakh towards awareness & exposure visit @ Rs.3,000 per weaver for 3 years Rs.25,000/- towards development and hosting of website one time

7 Project management Rs.7.20 lakh @ cost Rs.2.40 lakh per year for 3 years.

Under Cluster development programme, 40 handloom clusters have been approved for implementation in Tamil Nadu at a project cost of Rs.27.66 crore. The details are as follows:-

23 24

HANDLOOM CLUSTERS APPROVED BY Project Sl. Name of the District cost GOVERNMENT OF INDIA UNDER INTEGRATED No Handloom Cluster (Rs.in lakh) HANDLOOMS DEVELOPMENT SCHEME. 18. Chennimalai Erode 58.30

19. Palliyadi Kanniyakumari 58.50 Project Sl. Name of the 20. Tiruppur Tiruppur 59.00 District cost No Handloom Cluster (Rs.in lakh) 21. Punalveli Virudhunagar 55.00 1. Tiruchirapalli Tiruchirapalli 200.00 22. Thirubuvanam Thanjavur 58.10 2. Tiruvannamalai Tiruvannamalai 200.00 23. Attayampatti Salem 59.99 3. Kurinjipadi Cuddalore 200.00 24. Vandiyur Madurai 60.00 4. Nilaiyur Madurai 59.70 25. Sayarpuram Thoothukudi 59.00 5. Veeravanallur Tirunelveli 59.70 26. Chinnalapatti Dindigul 59.00 6. Pathirivedu Thiruvallur 59.70 27. Gudiyatham Vellore 60.00 7. Jayankondam Perambalur 59.70 28. Pudupettai Cuddalore 58.25 8. Kandachipuram Villupuram 59.70 29. Pillayarpalayam Kancheepuram 56.00 9. Appakoodal Erode 59.70 30. Naduveerappattu Cuddalore 42.00 10. Sholingar Vellore 59.70 31. Ayyampettai Thanjavur 60.00 11. Sirumugai Coimbatore 59.70 32. Paramathi vellore Namakkal 60.00 12. Thandampalayam Erode 59.70 33. Pollachi Coimbatore 59.75 13. Palani Dindigul 59.70 34. Paramakudi Ramanathapuram 60.00 14. Emaneswaram Ramanathapuram 59.90 35. Sellur Madurai 54.59 15. Vengamedu Karur 60.00 36. Srivilliputhur Virudhunagar 60.00 16. Edappadi Salem 52.60 37. Doddampalayam Erode 60.00 17. Dasappa Erode 59.08 38. Esalem Villupuram 60.00 Goundanpudur 39. Thirumalpur Vellore 60.00 40. Dadagappatti Salem 60.00

Total 2766.06

25 26 up of dye house, financial assistance for advertisement, To continue to implement the Cluster basic infrastructural facilities of new loom and loom Development Programme during the year 2010-2011, a accessories so as to improve their socio economic provision of Rs.10.00 crore has been made in the conditions of the weavers in that area. This Mega Budget Estimate for the year 2010-2011. Cluster will be implemented by appointing Co-optex as nodal agency.

Mega Handloom Cluster at Virudhunagar

(ii) Group Approach for Development of The handloom sector has to face the increasing Handlooms competition in the market. Therefore, adequate infrastructural facilities, the latest technologies knowhow, Group approach scheme of Integrated Handloom etc. play a vital role in the production and marketing of Development Scheme is being implemented for the quality handloom products. Steps have been taken to benefit of Handloom weavers, who are not covered by implement a comprehensive scheme at Virudhunagar the Handloom Cluster Development Scheme. A group with central assistance at a project cost of Rs.70.00 should have preferably 10 to 100 weavers which could be crore, so as to upgrade the skill and talent of the in the form of a Self Help Group / a Primary Weavers Co- handloom weavers by forming a cluster with 25000 operative Society / or other independent / individual handloom weavers for their development and betterment. weavers.

The proposed Mega Cluster at Virudhunagar provide skill upgradation training, design development, conversion of varieties, establishment of common facility centre, setting

27 28 The pattern of financial assistance under the Group Approach Component of Integrated Handlooms Thus 119 Group Approach Projects at a project Development Scheme is as follows:- cost of Rs.11.61 crore are being implemented. In order Financial to continue to implement the group approach scheme in Sl. No Component Assistance the year 2010-2011, a provision of Rs.10.00 crore has Rs. been made in the Budget Estimate for the year 1 Basic Input 2010-2011. a) Margin Money 6,000 b) Purchase of New Looms 8,000 (iii) Financial Assistance to the Handloom c) Purchase of Dobby 4,000 Organisations d) Purchase of Jacquard 6,000 (a) Marketing incentive e) Purchase of Loom 2,000 Financial assistance is provided for encouraging Accessories 2 Skill Upgradation Training (20 Weavers) the sale of handloom fabrics. Marketing Incentive is a) Weaving 3,00,000 provided at 10 % of the average sales turnover of the last b) Dyeing 1,00,000 3 years. c) Designing 50,000 (b) Strengthening of handloom organisations d) Managerial Training 25,000 Under this Scheme, financial assistance is 3 Construction of Workshed 25,000 provided in the form of cash credit or working capital to (20 sq. metre area) National and State Level Handloom Organisations such

as Handloom Corporations, Apex Handloom Co-operative Societies etc.,

29 30

(iv) Assistance for Innovative Ideas and Publicity, Under this scheme, each Weaver contributes Monitoring, Supervision, Training 8 paise per rupee of wages earned. The State and Evaluation of Scheme Government contributes 4 paise per rupee of wages

earned by the weaver. The total subscription is being Under this component, upto 10% of the total deposited in the Government Account, for which the project cost may be utilized towards innovative ideas and State Government allows 9.5% interest. Out of this 2% of the project cost may be utilized towards Publicity, interest amount, 6.5% is being credited to the weaver Monitoring, Supervision, Training and Evaluation of member’s account and the remaining 3% is being utilized Schemes. for implementing the weavers welfare scheme such as

Old Age Pension Scheme and the Family Pension 4.07 THE CO-OPERATIVE HANDLOOM WEAVERS' Scheme for handloom weavers. Under the scheme, SAVINGS AND SECURITY SCHEME 78,937 weavers have been enrolled and are benefited by their savings habits being encouraged by the

Government. To encourage the savings habit among handloom weavers, the Government of Tamilnadu is implementing During the year 2009-2010, the Government have the "Co-operative Handloom Weavers' Savings and sanctioned a sum of Rs.488.90 lakh for this Scheme Security Scheme" from the year 1975. The Government towards State’s share and Rs.1618.99 lakh towards 9.5% of India have also participated in the Scheme from the interest on the deposit made under the Scheme fund year 1985-1986 to 2006-2007 and contributed their account. share.

31 32 4.08 TAMIL NADU CO-OPERATIVE HANDLOOM 4.09 TAMIL NADU CO-OPERATIVE HANDLOOM WEAVERS' OLD AGE PENSION SCHEME WEAVERS' FAMILY PENSION SCHEME

The Tamil Nadu Co-operative Handloom Weavers' The Government of Tamil Nadu is implementing Old Age Pension Scheme for handloom weavers in the Family Pension Scheme is being implemented by the co-operative fold with effect from 01.04.1997. The Government of Tamil Nadu with effect from 01.01.1992. handloom weavers who have been enrolled in Savings According to this scheme, in the event of death of a and Security Scheme and who have worked in the co-operative handloom weaver member before attaining profession upto the age of 60 years are eligible to get Old the age of 60 years, the nominee of the deceased Age Pension. The Old Age Pension amount has been weaver was paid family pension for a period of 10 years enhanced from Rs.200/- to Rs.400/- per month with effect from the date of death of the weaver. The Government from 01.06.2007. Under this scheme, 15,872 handloom have modified the scheme with effect from 30.03.2010 weavers are getting benefits as on 31.03.2010. and ordered that in the event of death of members of weavers co-operative societies before attaining the age

of 60 years, family pension will be extended to the The State Government have sanctioned a sum of nominee of deceased weaver for a period of 10 years or Rs.804.58 lakh towards implementation of the scheme upto the age of 60 years (if the deceased weaver would for the year 2009-2010. This scheme will be continued have been alive) whichever is beneficial to the weaver’s during the year 2010-2011. family. The family pension amount has been enhanced

from Rs.350/- to Rs.550/- with effect from 01.05.2007.

33 34 Under this scheme, family pension is being paid to

1,244 families of handloom weavers. This scheme will Sl. Scholarship be continued during the year 2010-2011. Discipline (per year) No. Rs. 4.10 AWARDING SCHOLARSHIPS UNDER DR. M.G.R. 6 B.Sc. (Agri) / Horticulture 3000 HANDLOOM WEAVERS' WELFARE TRUST 7 B. Pharm 8 B.Sc., (Nursing) With a view to encourage the wards of the 2500 9 Hotel Management and Catering weavers to pursue higher studies, Dr. M.G.R. Handloom 10 M.E. Weavers' Welfare Trust was formed in the year 1986. 11 M. Tech. Every year scholarships for the following 32 disciplines 3500 12 MD are provided to one male and one female student who 13 MS have secured first marks, till they complete their studies 14 M.A. in each discipline:- 15 M. Com Sl. Scholarship 16 M. Sc. Discipline (per year) 3500 No. Rs. 17 M.B.A. 1 M.B.B.S. 18 M.C.A. 2 B.D.S. 19 C.A. 3 B.E. 3500 4 B. Tech. 5 B.V. Sc.

35 36

4.11 SCHOLARSHIP TO STUDENTS OF INDIAN

INSTITUTE OF HANDLOOM TECHNOLOGY Sl. Scholarship Discipline (per year) No. Rs. The wards of weavers are given priority in 26 B.A. selection to the 3-year Diploma in Handloom Technology 21 B.Sc. courses conducted by the Indian Institute of Handloom 22 B.Com. Technology, Salem. These Students are paid 23 B.B.A. 2500 Scholarship by the Government of Tamil Nadu as 24 B.B.M. detailed below:- 25 B.C.A. First year : Rs.400/- per month 26 B.Sc. (Computer Science) Second year : Rs.450/- per month 27 Polytechnic 2500 Third year : Rs.500/- per month 28 I.A.S./I.P.S./Bank Officers Exam 2500

29 +2 Highest Mark 2500 Similarly, the Students of Tamil Nadu who are 30 10th Highest Mark 2000 studying three year diploma in the Indian Institute of 31 Diploma in Physiotherapy Handloom Technology at Gadag (Karnataka) and 32 Handloom Technology 3000 Venkatagiri (Andhra Pradesh) are also paid stipend from

This scheme will be continued for the year the Co-operative Education Fund of Tamil Nadu 2010-2011. Co-operative Union. At present, 92 students are awarded scholarships under this scheme. This scheme will be continued during the year 2010-2011.

37 38 Under this scheme, the weavers’ share of 4.12 HEALTH INSURANCE SCHEME FOR HANDLOOM premium is being paid by the State Government on WEAVERS behalf of weavers. 4 members of weaver’s family are eligible to get medical assistance for out patient The Government of India have introduced a new treatment to the maximum of Rs.15,000/- annually. The Health Insurance Scheme for Handloom Weavers from ICICI Lombard shall also pay the expenses incurred by the year 2005-2006 with an objective to protect and the weavers for the medical treatment availed in any one improve the health condition of handloom weavers. The of the empanelled hospitals within the Country. Health Insurance Scheme is being implemented by the Handloom Weavers of the Primary Handloom Weaver’s Government of Tamil Nadu from 2005-2006 through Co-operative Societies and Weavers outside the ICICI Lombard General Insurance Company Ltd. The co-operative fold are covered under the scheme. For the details of number of weavers enrolled under the scheme ancillary handloom workers engaged in warping, sizing, are as follows:- dyeing, printing etc. to avail the benefits of the Scheme, the Government have extended the scheme to them also Sl. No of Year No. weavers from the year 2007-2008. Under this scheme, 3,19,023 1 2005-2006 1,30,000 weavers are enrolled and are being benefited.

2 2006-2007 2,00,000 A provision of Rs. 417.39 lakh has been made in 3 2007-2008 2,84,646 the Budget Estimate for the year 2010-2011 towards 4 2008-2009 2,89,023 5 2009-2010 3,19,023 payment of State Government share.

39 40 The insurance amount payable to the handloom weavers enrolled under the scheme is as detailed below:- 4.13 MAHATMA GANDHI BUNKAR BIMA YOJANA (a) Insurance Scheme for Handloom Weavers 1. For Natural Death Rs.60,000/- The Insurance Scheme called “Mahatma Gandhi 2. For Accidental Death Rs.1,50,000/- Bunkar Bima Yojana" was introduced by the Government 3. For Total Disability due to Rs.1,50,000/- of India for handloom weavers. Under this scheme, the accident 4. For Partial Disability due to Rs.75,000/- weavers who are in the age of 18 to 59 are eligible to accident enroll. The premium to be paid to Life Insurance Corporation per weaver per annum is Rs.330/-. The Handloom Weavers both in Primary Weavers details are as follows:- Co-operative Societies and outside the co-operative fold are covered under the scheme. In the past four years, an insurance amount to the tune of Rs.1126.20 lakh has Government of India’s contribution Rs.150/- been paid to 2082 families of deceased handloom Life Insurance Corporation’s contribution Rs.100/- weavers so far. Apart from this, the deceased weaver’s Tamilnadu Government’s contribution on Rs.80/- family of the weavers Co-operative society is paid a sum behalf of weavers of Rs.15,000/- additionally by the Co-optex. Total Rs.330/- A provision of Rs. 201.78 lakh has been made in

the Budget Estimate for the year 2010–2011 towards the payment of premium on behalf of weavers under this scheme.

41 42 (b) Scholarship under Shiksha Sahayog Yojana 5. OTHER INITIATIVES TAKEN BY THE DEPARTMENT “Shiksha Sahayog Yojana” is one of the 5.01 HANDLOOMS (RESERVATION OF ARTICLES components of “Mahatma Gandhi Bunkar Bima Yojana”. FOR PRODUCTION) ACT, 1985 Under this scheme, Scholarship is extended to the To safeguard the interest of handloom weavers children (restricted to 2 children of each family) of and the handloom industry from the onslaught of handloom weavers who are members of the Mahatma powerlooms, the Government of India have enacted the Gandhi Bunkar Bima Yojana. The scholarship is provided Handlooms (Reservation of Articles for Production) Act, for the children studying in Std. IX to XII at Rs.1,200/- per 1985 and have reserved the following 11 items (subject annum per child for a maximum period of 4 years or till to certain conditions) exclusively for production in they complete XII std. The details of scholarship already handlooms :- paid under the Scheme are as follows:- (1) Saree (2) Dhoty (3) Towel / No. of Amount paid Gamcha and Year Students (Rs.in Lakh) Angavastram 4) Lungi (5) Chaddar (6) Jamakkalam / 2004-2005 9473 85.26 Mekhala / Phanek Durry or Durret 2005-2006 14424 148.58 (7)Dress (8) Barrack (9) Shawl, Loi, Material Blanket, Kambal Muffler, Pankhi 2006-2007 23555 250.37 or Kamblies etc. (10) Woollen (11) Khes / Bedsheet / Bedcover/ 2007-2008 25970 216.80 Tweed Counterpane / Furnishing (including tapestry, upholstry) 2008-2009 29545 284.68 To enforce the Handlooms Reservation Act, 1985 2009-2010 34558 387.55 effectively, a separate Enforcement Machinery has been established in Tamil Nadu, with Deputy Director

43 44 (Enforcement) Office at Chennai as Headquarters and 5 approval for conducting of 40 District Level Exhibitions, 2 Assistant Enforcement Offices in Salem, Tiruchengode, Special Handloom Expo and 1 National Handloom Expo. Erode, Tiruppur and Madurai at circle level. Based on the approval the District Level Exhibitions and

With a view to propagate the Handloom Special Expo were conducted at various districts both by Reservation Act among the public and also to safeguard Handloom Department and Co-optex during the year the Handloom Industry, awareness campaigns are being 2009-2010. Handloom goods worth Rs.11.03 crore were conducted periodically in areas with Powerloom sold in these exhibitions. Besides, National Handloom concentration. To implement the Handloom Reservation Expo-2010 was organized by Co-optex in Chennai and Act 1985 intensively, inspections are being carried out handloom goods worth Rs.4.11 crore were sold. continuously in these areas. During the year 2009-2010, 43,702 Powerlooms were inspected. These inspections Such exhibitions will be continued during the year 2010-2011 also. will be continued during the year 2010-2011 also.

5.03 SILK MARK 5.02 CONDUCT OF EXHIBITIONS To increase the marketability of silk materials in To promote the marketing of handloom goods domestic and international market, the Government of Government of India is providing financial assistance to India have introduced the “Silk Mark”. The silk mark is the tune of Rs.2.00 lakh for each District level exhibition, affixed only on pure and natural silk products of either Rs.8.00 lakh for Special exhibitions and Rs.36.50 lakh for mulberry, Tasar, Eri or Muga Silk, so as to ensure the National Handloom Expo under Marketing and Export quality and used as a symbol of quality silk products. Promotion Scheme. The Government of India had given Only Authorized users can use this Silk Mark labels. The

45 46 silk Mark scheme is being implemented by the Silk Mark 5.04 HANDLOOM MARK Organization of India (SMOI), a society registered under the Karnataka Societies Registration Act 1960, The Handloom Mark Scheme was launched by sponsored by the Central Silk Board, Ministry of Textiles, Hon’ble Prime Minister of India on 28.06.2006 with an Government of India. objective to increase the sale of handloom fabrics by creating a brand name. The Textile Committee being the Any Individual Firm, Institution, Central statutory body under the Control of Ministry of Textiles is Government and State Government institutions, Apex the Implementing Agency for this scheme. society, private and corporate body can become a member of Silk Mark Organization of India. Only after So far, 861 Weavers Co-operative Societies becoming a registered member of this organization, the including Co-optex and 3,357 individuals/Master Silk Mark Label can be used in their silk products. Weavers / Exporters have been registered under In Tamil Nadu there are 88 Silk Weavers Co- Handloom Mark Scheme. operative Societies in Kancheepuram, Salem, Kumbakonam, Vellore, Cuddalore, Tiruchengode and 5.05 REGISTRATION OF HANDLOOM PRODUCTS Tiruvarur, of which 32 Silk Weavers Co-operative UNDER GEOGRAPHICAL INDICATION ACT Societies and 17 Cotton-cum-Silk Weavers Co-operative Societies have registered themselves as authorized Specialized goods produced in a particular region users of Silk Mark with the Silk Mark Organisation of can be registered under the Geographical Indication of India. Goods Act 1999. By this Act, producers and customers are protected against misuse of these geographical

indications. The registration of goods under the

47 48 Geographical Indication Act not only promotes exports of 21 Silk Weavers Co-operative societies and 10 such goods but also protects their usage and sales in other private manufacturers who are producing Kancheepuram countries who come under the Trade Related Aspects of Silk Saress have been registered as authorized users Intellectual Property Rights (TRIPS) Agreement of World under Geographical Indication Act. Trade Organisation (WTO). 5.06 SETTING UP OF TRAINING INSTITUTE FOR To protect the traditional Indian handloom varieties, WEAVERS AT Kancheepuram Silk Sarees, Bhavani Jamakkalam, Madurai Sungudi Sarees, Salem Silk (Ven Pattu), Arni Silk and Kovai Cora Cotton have been registered under The Handloom Industry has to face competition Geographical Indication Act. The details are as follows:- from the onslaught of Powerloom and other sub sectors of the Textile Industry in the wake of Globalization. To Sl.No Name of the Handloom Certificate Number and prepare the Handloom Weavers to face the competition, Variety Registered Date 1. Kancheepuram Silk Certificate No.6, Dated it is essential to train the weavers in upgraded Saree 07.10.2004 technologies of weaving. Considering the above aspects, 2. Bhavani Jamakkalam Certificate No.9, Dated 25.10.2004 Handloom Weavers Training Institute has been 3. Madurai Sungudi Certificate No.16, Dated established at Erode for imparting training to the Sarees 24.01.2005 Handloom Weavers enrolled in the Weavers Co- 4. Kovai Cora Cotton Certificate No.57, Dated Sarees 25.04.2007 operative Societies. 5. Salem Silk (Ven Pattu) Certificate No.56, Dated 16.05.2007 In this training institute a batch of 50 weavers are 6. Arni Silk Sarees Certificate No.58, Dated being imparted training for a period of one month. 25.07.2007 Annually 600 weavers will be trained.

49 50 5.07 TAMIL NADU HANDLOOM AND HANDLOOM for Natural and Accidental death and disability are being SILK WEAVING WORKERS WELFARE BOARD provided through this Board. The details are as follows:-

Sl. Item Financial The Tamil Nadu Manual Workers Board and 9 No. Assistance other welfare Boards including Tamil Nadu Handloom provided per member and Handloom Silk Weaving Workers Welfare Board Rs. were established during the year 2000-2001. The Tamil 1. Accident Insurance Nadu Handloom and Handloom Silk Weaving Workers Scheme Welfare Board was merged with the manual workers i Accidental Death 1,00,000 Board w.e.f. 21.07.2004. Subsequently, this board is ii Accidental Disability Based on extent of disability functioning separately with effect from 01.09.2006 based 2. Natural Death 15,000 on the orders issued by the Government. Assistance 3. Funeral Expenses 2,000 The Hon’ble Minister for Handlooms and Textiles Assistance is the Chairman of the Board and 7 Government 4. Educational Assistance representatives, 6 Employers representatives and 7 i Girl Children studying 1,000 representatives of the Workers were included as 10th members of the Board. At present, 1,62,082 weavers ii 10th Passed 1,000 have been enrolled as members of this Board. Financial iii Girl Children studying 1,000 assistance such as Old Age Pension, Medical 11th Assistance, Educational Assistance, Insurance coverage

51 52 iv Girl Children studying 1,500 5. Marriage Assistance 2,000 12th 6. Maternity Assistance 6,000 v 12th Passed 1,500 7. Reimbursement of cost Upto 500 of spectacles vi Regular degree course 1,500 8. Pension 400 vii Regular degree course 1,750 (per month) with hostel facility viii Regular Post Graduate 2,000 Financial Assistance to the tune of Rs.17.49 crore Course ix Regular Post Graduate 3,000 have been provided for the benefit of 82,360 weavers course with hostel through this Board. facility x Professional Degree 2,000 course xi Professional Degree 4,000 5.08 RIZE AWARD SCHEME FOR THE BEST course with hostel EXPORTERS facility Xii Professional P.G. 4,000 course With a view to encourage the export of handloom xiii Professional P.G. 6,000 course with hostel cloth and to widen their market in foreign countries, the facility Government of Tamil Nadu is implementing a scheme to xiv I.T.I. or Polytechnic 1,000 course award prizes to the Best Exporters in Tamil Nadu from xv I.T.I. or Polytechnic 1,200 the year 1975. Under this scheme, Trophies and course with hostel facility Certificates to the best exporters including primary weavers co-operative societies had been distributed at a cost of Rs.50,000/-. From the financial year 2009-2010,

53 54 the expenditure under this scheme has been enhanced Expenditure under this scheme is being met from from Rs.50,000/- to Rs.1,00,000/-. the Co-operative Research and Development Fund

of the Tamil Nadu Co-operative Union (TNCU). This This will be continued during the year 2010-2011 scheme will be continued during the year 2010-2011 and a provision of Rs.1,00,000/- has been made in the also. Budget Estimate for the year 2010-2011. 5.10 WAIVER OF WEAVERS HOUSING LOAN 5.09 PRIZE AWARD SCHEME FOR THE BEST AVAILED FROM HOUSING AND URBAN TALENTED WEAVERS DEVELOPMENT CORPORATION (HUDCO)

The Government of Tamil Nadu is implementing the Prize Award Scheme every year for best weavers To implement the House-cum-Workshed Scheme who have developed new designs in cotton and silk meant for Co-operative Handloom Weavers, HUDCO had varieties. Under this scheme, the prizes for the best sanctioned loan to the handloom weavers. Since the designs are distributed as below:- financial position of the weavers was weak and they

could not repay the loan, the Government of Tamil Nadu agreed in principle to waive a sum of Rs.11.70 crore of First Prize : Rs.5,000/- Housing Loan of weavers as on 31.03.2008 and decided Second Prize : Rs.3,000/- to make the payment due to HUDCO on behalf of Third Prize : Rs.2,000/- weavers from the year 2008 to 2015. Accordingly, a sum

of Rs.3.07 crore for the year 2008-2009 and Rs.3.00 crore for the year 2009-2010 due to HUDCO have been

55 56 sanctioned by the Government towards repayment of Powerloom weaving workers have been enrolled in this HUDCO Loan on behalf of weavers. board. 12,384 powerloom workers have been assisted with various benefits for a sum of Rs.2.56 crore. Towards repayment of Loan to HUDCO on behalf of weavers, a provision of Rs.3.00 crore has been made 6.02 Upgradation of Powerlooms in the Budget Estimate for the year 2010-2011. To upgrade the ordinary powerlooms for producing quality cloth and also to increase the productivity, 1000 6. POWERLOOM SECTOR powerlooms have been identified during the year 2009- 2010 in Powerloom clusters such as Tiruchengode, 6.01 Tamilnadu Powerloom Weaving Workers Salem, Coimbatore, Erode and Madurai. Under this scheme, a subsidy of Rs.5000/- per loom at a total cost Welfare Board of Rs. 50.00 lakh.

To implement various welfare schemes for the 6.03 Free Power Supply to Powerloom Weavers Powerloom Weaving Workers, the Government of Tamil Nadu have established the “Tamilnadu Powerloom The Scheme for providing Free Power supply upto Weaving Workers Welfare Board” during July-2009 under 500 units bi-monthly to Powerloom Weavers is being Tamil Nadu Manual Workers (Regulation of Employment implemented with effect from 01.08.2006. 1,16,049 and Condition of Work) Act 1982. Financial assistance Powerloom weavers work-sheds are getting the benefits such as Accident insurance benefit, Insurance benefit for of the scheme. A provision of Rs.66.84 crore has been natural death, Assistance for Funeral expenses, made in the Budget Estimate for the year 2010-2011 for Educational assistance, Marriage assistance, Maternity this purpose. assistance, Assistance for purchase of Spectacles and Pension benefit are being provided to the Powerloom weaving workers through this Board. At present, 64,837

57 58 implemented under this scheme. A textile weaving park 6.04 Integrated Textile Parks has been established at a cost of Rs.33.32 crore at

Komarapalayam in Namakkal District and at (i) Apparel Park for Exports Scheme (APES) Kancheepuram a project for Infrastructure facilities such

The Apparel Park for Export Scheme (APES) was as road, water and electricity had been implemented at a implemented by Government of India from the Year 2002 project cost of Rs.21.81 crore. All works have been to 2005. Under this scheme, two apparel manufacturing completed except Common Effluent Treatment Plant. units on par with international standards have been (iii) Scheme for Integrated Textile Parks (SITP) established in Tamilnadu. These Apparel Parks at

Tiruppur and Irungattukottai have been established and The Scheme for Integrated Textile Parks (SITP) are functioning. has been introduced by the Government of India during

2005-2006 by merging the above 2 schemes namely “ (ii) Textile Centre Infrastructure Development Apparel Park for Export Scheme” and “Textile Centre Scheme (TCIDS) Infrastructure Development Scheme”. The schemes are

aimed to provide the industry with world-class Textile Centre Infrastructure Development infrastructure facilities to meet international standards, to Scheme (TCIDS) was implemented by Government of augment exports and generate employment. Under this India from the year 2002 to 2005 in Tamil Nadu. This scheme, Government of India have approved a total scheme was implemented in Kancheepuram, project cost of Rs.591.28 crore for setting up of Komarapalayam and at Tirupur. In Tirupur with an 7 Integrated Textile Parks in Tamil Nadu. The details of objective to provide uninterrupted power supply at a these Parks are as follows:- lower rate, a project at a cost of Rs.25.00 crore has been

59 60

ve i

) Sl. No No Sl. entat crores) Project

T Name of the Present Stage Stage Present (Rs. In Crores) (Rs. Sl. No No Sl. (No.of persons) persons) (No.of crores Project Year of Sanction Year of Sanction State Government Government State Tentative Tentative Name of the Present Stage Present (Rs. In Crores) (Rs. Employment generation generation Employment Subsidy (Rs. In Crores) (Rs. Subsidy (No.of persons) persons) (No.of Annaual Turnover (Rs. In (Rs. Turnover Annaual Year of Sanction Year of Sanction State Government Government State Project Cost (Rs. In Crores) In Crores) (Rs. Project Cost Central Government Subsidy Subsidy Government Central Employment generation generation Employment Subsidy (Rs. In Crores) Subsidy (Rs. Annaual Turnover (Rs. In (Rs. Turnover Annaual Project Cost (Rs. In Crores)

Central Government Subsidy Subsidy Government Central 5 Integrated 87.30 2007 34.92 - 900 7000 Commenc- Textile ed 1 Hi-tech 55.42 2005 22.17 3.90 300 6000 Commenc- Park at production Weaving ed Madurai from park, production Oct -2009. Palladam from April 2008. 6 Integrated 90.68 2007 36.27 - 623 7000 Expected to Textile commence 2 Hi-tech 34.82 2006 13.93 - 350 3000 Commenc- Park at production Weaving ed Karur from Park at production May 2010 Komara from Vaigai 61.01 2009 24.40 4.37 360 6000 Expected to palayam Feb. 2009. 7 Hi-Tech commence 3 Integrated 149.45 2006 40.00 - 520 1250 Expected to Weaving production Textile Park 0 commence Park, from at production Andipatti Sep. 2011 Chengapalli from Erode May 2010 District. 4 SIMA 112.60 2007 40.00 - 500 1500 Expected to The Hon’ble Chief Minister of Tamil Nadu have Processing 0 commence Park at production Cuddallore from announced that the “Kancheepuram Arignar Anna Mar. 2011 Centenary Handloom Silk Park” would be established at

a cost of Rs.40.00 crore. This park would provide not only employment to about 10000 weavers continuously but also to improve the silk industry in that area. It has been proposed to establish handloom weaving units, dyeing units, common effluent treatment plant, design

61 62 and training centre, exhibition hall etc. in this silk park. 7. PART II SCHEMES FOR THE YEAR 2010-2011 Necessary steps are being initiated for establishing this 7.01 Replacement of one New Jeep for Nagercoil park at Keelkathirpur in Kancheepuram District. circle

6.05 GRANTS TO KNITTING INDUSTRY IN TIRUPPUR One New Jeep will be provided to the Office of the Assistant Director of Handlooms and Textiles, Nagercoil Knitwear industry in Tiruppur area is functioning at a cost of Rs.5.00 lakh in the year 2010-2011. successfully for a long period and plays predominant position in the Country in export of cotton hosiery goods and providing employment to lakhs of people. As per the 7.02 Purchase of 10 Photo Copier Machines for the directions of the Hon’ble Court, 20 Common Effluent Circle offices Treatment Plants were established with a view to discharge treated effluent as per standards prescribed to To implement various Development and Welfare control pollution. To encourage the knitting industry in Schemes effectively and for speedier office Tiruppur, and to promote the importance of Tiruppur in communication, 10 photocopier machines will be installed the world trade and to safeguard the environment, the in 10 circle offices for Rs.5.50 lakhs at the rate of Government have allocated Rs.320.00 crore as provision Rs.55,000/- each during the year 2010-2011. in the current year, as grant for the investment made for the Common Effluent Treatment Plants. Out of this, the Central share will be Rs.200.00 crore and the State share Rs.120.00 crore.

63 64 7.03 Assistance for Design Development spindle capacity of 94,640 are functioning, since

In order to cope up with the fast changing fashion 2004-2005:- scenario and to produce easily marketable domestic and 1. Bharathy Co-operative Spinning Mills, Ettayapuram, Thoothukudi District export varieties in weavers Co-operative societies, it is proposed to develop 500 new designs at a cost of 2. Anna Co-operative Spinning Mills, Andipatti, Theni District Rs.15.00 lakh through Co-optex. 3. Krishnagiri District Co-operative Spinning Mills, 8. CO-OPERATIVE SPINNING MILLS Uthangarai, Krishnagiri District

4. Pudukottai District Co-operative Spinning Mills, Co-operative Spinning Mills, numbering 18 with Aranthangi, Pudukottai District 4.70 lakhs spindle capacity were established in 5. Kanyakumari District Co-operative Spinning Mills, Tamilnadu, during different phases from 1958 to 1985, Aralvoymozhi, Kanyakumari District with the objectives of providing employment to the rural These Co-operative Spinning Mills are engaged in masses in the backward districts and supplying quality the production and supply of various counts of yarn yarn in cone and hank forms to the Weavers required under the Government Schemes such as Free Co-operative Societies. Distribution of Sarees and Dhothies, Uniforms to the These Co-operative Spinning Mills owing to school children and also in respect of the market varieties various reasons became sick and four among them of cloth produced by the Primary Weavers became defunct in 1998 - 1999. Thereafter, seven Co-operative Societies and Co-optex. Co-operative Spinning Mills, during 2003 and two more The financial performance of these five Co-operative Spinning Mills during 2004 became defunct. Co-operative Spinning Mills during the year 2009-2010 Only the following five Co-operative Spinning Mills with a has so far been the best in the last 6 years.

65 66 The Co-optex acts as a Co-ordinating Nodal 9. THE TAMIL NADU HANDLOOM WEAVERS’ Agency for the implementation of following Government CO-OPERATIVE SOCIETY LIMITED (CO-OPTEX) Schemes:- The Tamil Nadu Handloom Weavers’ Co-operative

Society Limited, under the trade name CO-OPTEX was (i) Free Distribution of Saree and Dhothy registered as a State Level Co-operative Organisation in Scheme and Free Distribution of Sarees and the year 1935. Co-optex is acting as a Marketing Agency Dhothies to Old Age Pensioners for the Primary Weavers’ Co-operative Societies (ii) Free Supply of Uniform scheme to School in the State and extends marketing support to weavers’ children. co-operative societies in the State. The main function of Performance during 2009-2010 the Co-optex is to supply yarn to weavers’ co-operative societies and to procure quality products and market Co-optex effects retail sales through its them through its 211 showrooms, of which 140 are showrooms and supply the cloth required under various within the Tamil Nadu State and 71 are outside the State. Government schemes through its Institutional Sales THE ORGANIZATION HAS COMPLETED 75 YEARS OF Showrooms. DEDICATED SERVICE TO THE HANDLOOM

WEAVERS AND EARNED A HIGH REPUTATION Co-optex has effected a retail sale of Rs.150.29 AMONG THE PUBLIC AND HAS THE DISTINCTION OF crore during the year 2008-2009. It increased to BEING THE FIRST APEX HANDLOOM WEAVERS’ Rs.180.67 crores during the year 2009-2010. It is CO-OPERATIVE SOCIETY IN INDIA TO CELEBRATE Rs.30.38 crores more than the retails sales of the ITS PLATINUM JUBILEE. previous year. Likewise during the year 2009-2010

Co-optex procured goods worth Rs.108.38 crores which

67 68 is Rs.12.95 crores more than the last year’s procurement varieties and new designs with attractive colour of goods from Weavers Co-operative Societies. combinations for its product range. Some of the notable achievement of Co-optex In the Export sales also, goods worth Rs.4.12 in design interventions are as below:- crore was exported during the year 2009-2010 against (i) “Sangamam Silk Saree” is designed and the total Export sales of Rs.3.49 crore during the year woven in traditional Kancheepuram Silk by 2008-2009. synchronizing simple and enriched traditional appearance in Jacquard weave.

During the year 2009-2010, Co-optex has achieved a sales turnover of Rs.520.93 crores which is (ii) “Rudhra Silk Saree Collections” is created using Kalakshetra motifs such as Rs.59.47 crores more than the sales turnover of the year Rudhraksham, Mayilkannu, Kuilkannu, 2008-2009. Annam, Mayil, etc., using lesser zari.

(iii) “Minnum Pookkal” silk saree is designed Co-optex has earned a Net Profit of Rs.16.52 and woven in traditional motifs and colour crore during 2008-2009 by adopting various business combinations of Moghul arts. promotion techniques and it is expected that the Net (iv) “Sarva Mangala Silk Saree” is woven in Profit of Rs.20.00 crore would be earned during 2009- with 108 ancient Traditional motifs of Pallava Kingdom. 2010.

(v) “Thanga Gopuram Silk Saree” with Design Intervention traditional motifs and Pallu covered with motif of golden fishes and real pearl Co-optex, with the intention of thriving in the embeded using new net weaving technique competitive market is engaged in introducing new is unique.

69 70 (vi) With an accent on the traditional value of design development in addition to creating their own new the silk and cotton sarees produced in designs. This helps the handloom weavers to know the traditional handloom centres of Tamil Nadu, Co-optex introduced Mutharu silk saree, modern trend in designing and also to produce based on Bhavani Kora silk saree, Thirumani cotton customer taste. This programme has been implemented saree, Trichy cotton saree, Vaigai cotton saree, Archana cotton saree, Ponnai Tie & during 2009-2010 with a project cost of Rs.15.00 lakh.It is Dye cotton saree to attract customers. planned to continue, the training programme during the

(vii) In addition to sarees, design intervention year 2010-2011 also at a cost of Rs.15.00 lakhs. has also been extended to Home Textile

products such as Bed sheet, Bedcover, Bed

spread, Table textiles, Kitchen textiles, Market Intervention furnishing, floor covering etc.,

(viii) During 2009-2010, Co-optex has introduced (i) To promote the retail sales, Co-optex 1200 new designs in its product range. has been conducting monthly exhibitions

at important showrooms suitable for a Training for Weavers in Designing particular season.

Under Weaver-cum-Designer Project Programme, (ii) During the year 2009-2010, Co-optex has appointed 11 Freelance Designers and 206 Exhibitions were conducted and a placed them at Traditional Handloom Centres such as sale of Rs.12.02 crore had been Kancheepuram, Arni, Coimbatore, Chennimalai, Bhavani, effected. Kumbakonam, Paramakudi, Madurai, Dindigul, (iii) To have better Inventory management Aruppukottai, Jayankondam etc., for imparting training to and sales information instantly the weavers in designing. These designers are providing 125 showrooms of Co-optex have been necessary guidance in designing to the weavers for computerized.

71 72

(iv) 50 showrooms of Co-optex have been (b) To increase the retail sales of Co-optex, new modernized with Air-conditioning designs will be created in Sarees, Home facilities. Textile products, Readymade Shirts, Kurtha (v) National Handloom Expo was conducted materials, Churidars etc. during the year 2010 in Chennai and sold goods to the extent of (c) To improve the information and communication Rs.4.11 crore. system, computer systems will be provided to the Showrooms of Co-optex, Warehouses,

Regional Offices and Head office and action Action Plan for 2010-2011 will be taken to provide Net Working facilities

so as to get information, online and up to date. Co-optex has planned to take the following action, so as to achieve a retail sales of Rs.200.00 crore during 10. TAMIL NADU ZARI LIMITED, KANCHEEPURAM the year 2010-2011:-

(a) The requirements for each season will be The Tamil Nadu Zari Limited is a Public Sector identified and production plan will be evolved Undertaking started in the year 1974, at Kancheepuram. accordingly, so as to procure goods in time. Government invested Rs.34.40 lakh in the Share Capital This production plan will be given to the of the Company. The primary objective of the Tamilnadu societies in the beginning of the year and this Zari Ltd is to produce quality zari and sell them to the Silk will make required goods available in time for weavers Co-operative Societies at reasonable price. The retail sales at Co-optex showrooms.

73 74 company has a production capacity to produce 81,000 (iii) To improve the production process of Silver zari marcs per annum. To cater to the zari requirements thread making process, the company obtained of Kumbakonam area, the Tamil Nadu Zari Limited has technical assistance of the Kumaraguru College of established a branch unit at Kumbakonam in the year Technology and this is being implemented. 1999 and it is functioning well. The company undertakes Likewise, to improve the production process of production and sale of zari and testing the quality of zari silver-wire making process, the company obtained by X-Ray Fluorescence Analyzers. XRF Analyzer are the technical assistance of Non-ferrous Material used to test the quality of Zari in the Zari made fabrics. Technology Development Centre. Two X-Ray Fluorescence Analyzers, one at Action Plan for the year 2010-2011 Kancheepuram and another at Salem are installed and they are functioning. (i) The Company has planned to produce and supply

Performance for the year 2009-2010 60,000 zari marcs to Silk Weavers Co-operative Societies during the year 2010-2011. (i) The company has produced 42,884 zari marcs

and sold 41,773 marcs of zari for a value of (ii) To attain self-sufficiency in zari production, the Rs.29.89 crore and earned a profit of Rs.22.82 company in Co-ordination with Non-ferrous lakh (tentative) during the year 2009-2010. Material Technology Development Centre plan to

(ii) The quality of zari used in Silk Sarees, Pavadais implement the new technology called ‘End to End and dhoties were tested through X-Ray Technology’ during the year 2010-2011. Fluorescence Analyzers and a sum of Rs.2,14,935/- was collected as testing fees.

75 76 11. TAMIL NADU HANDLOOM DEVELOPMENT Performance for the year 2009-2010 CORPORATION LIMITED. (i) The corporation has sanctioned loan to the The Tamil Nadu Handloom Development extent of Rs. 83.25 lakh to 224 members. Corporation Ltd was established in Chennai in the year (ii) It collected Rs.113.20 lakh towards loan 1964 with the objective of providing financial assistance and Rs. 33.59 lakh towards interest to the non co-operative fold weavers, engaging receivables. themselves in manufacturing, trading and marketing of Action Plan for the Year 2010-2011 handloom, powerloom and hosiery cloth. At present, the Corporation has 11,841 members. The paid-up share (i) The Corporation has planned to sanction capital of the Corporation is Rs. 429.23 lakh, of which loan to 250 members to the extent of 267.00 lakh has been subscribed by the Government of Rs. 180.00 lakh and proposed to collect Tamilnadu. Rs. 200.00 lakh against dues receivables.

The Corporation, as a part of diversifying its (ii) The Corporation under Mill Gate Price activities, is engaged in the cotton yarn sales under the scheme proposed to achieve yarn sales Mill Gate Price Scheme in co-ordination with National turn over of about Rs.110.00 lakh. Handloom Development Corporation (NHDC). The 12. TAMIL NADU TEXTILE CORPORATION Corporation is the Marketing Co-ordinator for the LIMITED, COIMBATORE. Loomworld chain of stores and implementing agency for

Cluster Development Programme for 9 Handloom The Tamil Nadu Textile Corporation Ltd is a Public Clusters in Tamilnadu. sector Undertaking established in the year 1969. The

object of the Corporation is to provide employment to the

77 78 workers of the closed textile units and to provide Performance for the year 2009-2010 rehabilitation measures to the textile industry. The The Corporation has sold 76.50 lakh metres of Corporation has 2 powerloom complexes with a capacity cloth to an approximate value of Rs.21.00 crore during of 96 looms one each at Aruppukottai and Sivagiri. the year 2009-2010. Further, the Corporation is having one auto-loom shed Action Plan for the Year 2010-2011 with 12 auto-looms and 24 plain looms at Kurichi in Coimbatore. The Tamil Nadu Textile Corporation The Corporation has planned to produce 79.23 lakh produces polyester suiting and shirting cloth varieties in meters of cloth for an approximate value of Rs.23.13 Kurichi auto-loom Shed, Sivagiri and Aruppukottai crore and is expected to earn a profit of Rs.18.65 lakh Powerloom complexes. during the year 2010-2011.

The Corporation undertakes production of white 13. TAMIL NADU CO-OPERATIVE TEXTILE PROCESSING MILLS LIMITED, ERODE. shirting cloth, blue dhavani cloth and pavadai cloth required for the Free Supply of Uniform Scheme. The The Tamil Nadu Co-operative Textile Processing Corporation also undertakes the supply of polyester Mills Ltd was started in the year 1973 at Erode. Its total uniform cloth to the State Transport Corporation, paid up Share Capital is Rs. 106.57 lakh, out of which the Tamilnadu Electricity Board, Co-operative Sugar Mills, Government of Tamilnadu have subscribed Tamilnadu Cements, Police Department and other public Rs. 77.79 lakh. It undertakes various processing activities sector undertakings. such as Cloth Bleaching, Dyeing, Mercerizing, Printing and Finishing of cotton / synthetic fabrics. The mill has the capacity to process about 18 lakh meters of cloth per month. Apart from processing of cloth required for

79 80 uniform schemes of the Government, the Mill undertakes Mills at a cost of Rs.1.70 crore for Treating process and supply to Tamilnadu Khadi and Village the effluent, the Mills is able to re-cycle the Industries Board, Powerloom Weavers Co-operative water used in Dyeing Process. Because of Societies, Handloom Weavers Co-operative Societies, this, the Mills is able to maintain Zero Sarvodaya Sangam, Central Prison and Handloom discharge of Effluent and has become Development Corporations of Kerala and Karnataka for environmental friendly. processing and printing of fabrics. Action Plan for the Year 2010-2011

Achievements for the year 2009-2010 (i) To improve the production, the mill has planned to modernize the machinery at a (i) The Business turn over of Tamil Nadu cost of Rs.80.00 lakh. Co-operative Textiles Proceeding Mills was Rs.10.98 crore and it earned a net profit of (ii) The Institution has also planned to obtain Rs.11.75 Lakh (tentatively). ISO 14001 Certification.

(ii) To improve the production, new 14. TAMIL NADU CO-OPERATIVE SPINNING machineries have been installed at a cost of MILLS FEDERATION LIMITED. Rs.50.00 lakh getting financial assistance from Integrated Co-operative Development The Tamil Nadu Co-operative Spinning Mills Project. Federation Ltd (TANSPIN) was established in Chennai in the year 1994. The main objective of the Federation is to (iii) By installing the Reverse Osmosis Plant procure and supply good quality of cotton at reasonable and Reject Management System in the price to members of the Tamil Nadu Co-operative

81 82 Spinning Mills Federation Ltd. For this purpose, the 15. BUDGET PROVISION FOR THE YEAR 2010-2011 Government of Tamilnadu have sanctioned a sum of Rs.

25.00 crore as share capital and Rs.2.07 crore as Cotton A provision of Rs. 85518.77 lakh has been Revolving Fund to TANSPIN for the purchase of cotton made in the Budget Estimate for the year 2010-2011 on ‘cash and carry’ basis. under Demand No.17 Handlooms and Textiles as detailed below:-

Performance of the year 2009-2010 Budget Sl. Estimate Name of the Scheme No. 2010-2011 During the year 2009-2010 Tamil Nadu Spinning (Rs. in lakh) Mills Federation has purchased 13,700 cotton bales to 1 Free Distribution of Dhoties and Sarees Scheme 25600.00 the value of Rs.14.94 crore and supplied to the 5 Co- 2 Handling charges under Free operative Spinning Mills. TANSPIN has thus earned a net Distribution of Dhoties and Sarees 1280.00 profit of Rs.7.60 lakh (tentatively) for the year 2009-2010. Scheme 3 Free Electricity to Handloom 1120.00 Weavers 4 Free Electricity to Powerloom 6684.00 Weavers 5 Rebate on sale of handloom cloth 4000.00 6 Marketing Incentive / Rebate under Integrated Handloom Development 7800.00 Scheme 7 Cluster Development Programme under Integrated Handloom 1000.00 Development Scheme

83 84 Budget Budget Sl. Estimate Sl. Estimate Name of the Scheme Name of the Scheme No. 2010-2011 No. 2010-2011 (Rs. in lakh) (Rs. in lakh) 8 Group Approach for Development 19 Ways and Means Advance to 0.01 of Handlooms under Integrated 1000.00 Co-operative Spinning Mills due to Handloom Development Scheme TEXCO 9 Co-operative Handloom Weavers 500.00 20 Weavers-cum-Designer Project 15.00 Savings and Security Scheme 21 Assistance for Design 15.00 10 Health Insurance Scheme for 417.39 Development handloom weavers 22 Replacement of Jeep for 5.00 Nagercoil Circle 11 Payment of premium under 201.78 23 Purchase of Xerox Machines for 5.50 Mahatma Gandhi Bunkar Bima Circle Offices Yojana 24 Deendayal Hathkargha Protsahan 0.04 12 Old Age Pension and Family Yojana Scheme 25 Powerloom Census (Rent for 0.25 Pension Schemes for co-operative 500.00 Powerloom Service Centre, Erode) handloom weavers 26 Establishment of Enforcement 93.85 13 Interest Subsidy to Primary 1300.00 Machinery Weavers Co-operative Societies 27 Administrative expenses 1380.96 (Including Pay and Allowances of 14 Zero Liquid Discharge System at 32000.00 staff) Tirupur 28. Secretariat Economic Services 179.34 15 Marine Discharge Project 0.01 (Salaries of Staff and other 16 Assistance to Powerloom 100.00 Administrative expenses) Weavers’ Welfare Board TOTAL 85518.77 17 Waiver of HUDCO Loan 300.00

18 Establishment expenses of 20.64 Handloom Weavers Training K.K.S.S.R.RAMACHANDRAN Centre at Erode MINISTER FOR BACKWARD CLASSES

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