Scheme For Waiver Of Loans To Handloom And Powerloom Sector

Scheme for Waiver of Loans to Handloom and Powerloom Sector

The Scheme for Waiver of Loans to Handloom and Powerloom Sector is an initiative launched by the Government of Andhra Pradesh aimed at alleviating the debt burden of farmers, self-help groups, weavers, and others engaged in the handloom and powerloom industry. This scheme specifically targets loans taken from various banking institutions and aims to enhance the financial stability of individuals involved in weaving activities.

Overview of the Scheme

This loan waiver program, administered by the Industries and Commerce Department of Andhra Pradesh, aims to redeem debts incurred by weavers, farmers, and self-help groups. The support extends to loans obtained from Scheduled Commercial Banks, Cooperative Banks, Urban Cooperative Banks, and Regional Rural Banks (RRBs). The initiative underscores a commitment to improving livelihood opportunities and economic prosperity within the state.

Key Focus Areas

• Individual Loans for Weavers
• Group Loans for Weavers
• Loans for Powerloom Units with a capacity of less than 5 HP availing a 50% power subsidy scheme

Benefits of the Scheme

Participants in the scheme can expect significant financial relief and support:

• The maximum loan waiver for individual weavers is capped at ₹ 1,00,000.
• For weaver groups, the total waiver can reach up to ₹ 5,00,000, with individual members eligible for a maximum of ₹ 1,00,000 each.
• Weavers benefiting from this scheme will be eligible for fresh financing from lending institutions, provided the amount waived corresponds to the outstanding loan.

Eligibility Criteria

To qualify for this scheme, certain criteria must be met:

• The loans must have been disbursed to individual weavers and weaver groups for weaving-related purposes and must have been outstanding as of 31.03.2014.
• The cumulative loan amount from all banks must not exceed the established ceiling for individuals.
• Eligible categories include:
• Individual weavers who have taken loans specifically for weaving.
• Weaver groups that have borrowed funds on a pro-rata basis based on each member’s drawn amount, subject to the overall loan ceiling.
• Credit beneficiaries holding Weaver Credit Cards.
• Weavers operating Power Loom Units below 5 HP capacity who are accessing the existing 50% power subsidy scheme.

Exclusions

It is important to note that members of weaver groups who have already availed of debt redemption benefits through other government schemes, such as DWACRA or MEPMA, will not be eligible for this scheme. This rule is in place to prevent the possibility of receiving dual benefits from multiple schemes.

Application Process

To apply for the scheme, follow these steps:

Step 1: Identification of Beneficiaries

• The Assistant Director (H&T) will compile a list of potential beneficiaries from the banks.
• A meeting of the District Level Committee (DLC) will be organized after obtaining prior approval from the District Collector, in coordination with the Lead District Manager (LDM).
• Timeframe: This process should be completed within 7 days after the scrutiny by bankers and officers from the Handlooms & Textiles Department.

Step 2: Disbursal of Benefits

• The DLC will review the list to verify the authenticity of claims. If approved, the committee will recommend the redemption of debts.
• Based on these recommendations, the Commissioner of Handlooms and Textiles will facilitate the direct release of funds to the concerned banks from a central account.
• Timeframe: This should be finalized within 7 days following the DLC’s scrutiny.

Step 3: Documentation

Details of the benefits availed will be documented in the Loan Pass Books or Weaver Credit Cards on the same day that benefits are disbursed to the individual weavers.

Grievance Redressal

In case of any discrepancies, weavers can file a complaint if their names are not included in the list of eligible beneficiaries or if there are issues with the calculation of the waiver. Such representations can be made through the lending institution or directly to the Grievance Redressal Officer of the relevant bank.

• Timeframe: All representations will be addressed within 30 days of receipt.

For more information, visit the official site: myScheme.gov.in.