INDEX

Page
S.No. Contents
No.

1 Introduction 1

2 Present status of various sectors of the

textile industry 3

3 The Department of Handlooms and

Textiles 27

4 Special Schemes implemented by the

Department 32

5 Development Schemes implemented by

the Department 51

6 Welfare Schemes implemented by the

Department 105

7 Programmes implemented by the

Department 143
 Page
S.No. Contents
No.

Institutions under the Administrative

8
Control of the Department

8.1 Co-operative Spinning Mills

162

8.2 Tamilnadu Handloom

Development Corporation 170
Limited, Chennai

8.3 Tamilnadu Textile Corporation

177
Limited, Coimbatore

8.4 Tamilnadu Zari Limited,

181
Kancheepuram

8.5 Tamilnadu Co-operative Textile

184
Processing Mills Limited, Erode,

8.6 Tamilnadu Co-operative

Spinning Mills Federation 188
Limited (TANSPIN), Chennai

8.7 Tamilnadu Handloom Weavers’

Co-operative Society Limited, 189
(Co-optex), Chennai

9 Budget Provision for the year 2018-19 216

 HANDLOOMS AND TEXTILES

1. INTRODUCTION

The Indian Textile Industry has inherent

linkage with agriculture, culture and traditions of
the country making its versatile spread of products
appropriate for both domestic and the overseas
markets. The Textile industry contributes to 10%
of manufacturing production, 2% of India’s GDP
and to 13% of the country’s export earnings. With
over 4.5 crore people employed directly, the
Textile industry is one of the largest sources of
employment generation in the country.

The vast sweep of Indian textiles extends

from the hand woven sector on one hand to the
capital intensive mill segment on the other. The
segments include the decentralized powerlooms,
hosiery and knitting sectors; the handloom and
handicrafts segments; as also the wide range of
fibres which include man-made fibre, cotton, silk,
jute and wool.
  
 
Tamil Nadu holds the pioneer position in the
Indian textile industry for decades by marking its
overwhelming presence in all the sub sectors of
the industry viz., spinning, handloom weaving,
powerloom weaving, processing, knitwear and
apparel garmenting.

The Government of Tamil Nadu is committed

to developing a strong and vibrant textile industry
which would contribute significantly to production,
employment and economic growth of textile
industry. In order to achieve sustainable growth,
the Department of Handlooms and Textiles is
implementing number of welfare schemes for the
handloom and powerloom weavers and a number
of promotional schemes for the development of all
the sub-sectors of the textile industry. The
Government’s endeavour is to ensure conducive
atmosphere and required infrastructural facilities
to all the sectors of the textile industry so as to
promote their holistic growth.

2
2. PRESENT STATUS OF VARIOUS SECTORS
OF THE TEXTILE INDUSTRY

(i) HANDLOOM SECTOR

Handlooms forms a precious part of the

generational legacy and exemplifies the richness
and diversity of our country and the artistry of the
weavers. Tradition of weaving by hand is a part of
the country’s multi cultural ethos. As an economic
activity, handloom is one of the largest
employment provider after agriculture. This sector
generates employment to 43.31 lakh persons
engaged on about 23.77 lakh handlooms. The
sector contributes nearly 15 % of the cloth
production in the country and besides contributes
to the export earnings of the country. It is noted
that 95% of the world’s hand woven fabric comes
from India.
(Source: Ministry of Textiles, Government of India, Annual Report
2016-17).

The Handloom sector has a significant

presence in our economy. It has been sustained

3
by transferring skills from one generation to
another. The strength of the sector lies in its
uniqueness, flexibility of production, openness to
innovations, adaptability to the buyer’s
requirement and the wealth of its tradition.

The adoption of modern techniques and

economic liberalization, however have made
serious inroads into the handloom sector. Stiff
competition from powerloom and mill sector,
availability of cheaper imported fabrics, frequent
changing of consumer’s preferences and
alternative employment opportunities have
threatened the vibrancy of this sector.

The Handloom fabric production had seen

very impressive growth at the rate of 6% to 7% in
the beginning of the 11th Plan. The subsequent
economic downturn has affected all the sectors in
India and Handloom sector was no exception.
Now, there is a positive sign and production has
shown upward growth.

4
 National Award winner weaving in her handloom
at Kancheepuram

The handloom sector of Tamil Nadu is of

heritage value and the history of outstanding
craftsmanship of handloom weaving in the State
dates back by thousands of years. In our State,
2.44 lakh handlooms are functioning in 1,139
Handloom Weavers Co-operative Societies. Out of
1,139 Handloom Weavers Co-operative Societies,
1,053 are Cotton Handloom Weavers Co-operative
Societies and the balance 86 are Silk Handloom
Weavers Co-operative Societies. These societies
mostly exist in rural and semi-urban areas, where
5
there is large concentration of handloom weavers.
The development programmes and welfare
schemes of the State and Central Governments
intended for the handloom weavers are being
implemented through the Handloom Weavers
Co-operative Societies.

During the year 2017-2018, the Handloom

Weavers Co-operative Societies have produced
790.35 lakh metres of Handloom cloth valued at
Rs.695.50 crore and sold handloom goods to the
extent of Rs.852.93 crore. There are 959 Weavers
Co-operative Societies working on profit.

The 3,580 handlooms in Handloom Weavers

Co-operative Societies have produced and supplied
3.50 lakh Handloom Sarees valued at Rs.8.57
crore and 5.21 lakh Handloom Dhoties valued at
Rs.9.72 crore for the implementation of Cost Free
Distribution of Sarees and Dhoties Scheme, Pongal
2018. Besides, 3.77 lakh metres of Drill cloth
valued at Rs.2.61 crore and 2.31 lakh metres of

6
 Casement cloth valued at Rs.1.22 crore were
produced and supplied by 436 handlooms under
Cost Free Supply of Uniform Scheme for the
Academic Year 2017-2018.

Performance of Handloom Weavers Cooperative Societies

as on 31.03.2018
Sales
Production
Total No.of Value
Districts No.of Value
Circle Handloom (Rs.in
Covered Members (Rs.in
Societies Crore)
Crore)

Coimbatore
Coimbatore 59 23040 50.95 57.10
Nilgiri

Cuddalore
32.54
Cuddalore 56 11606 28.00
Villupuram

Dindigul Dindigul 40 6597 18.97 22.81

Erode Erode 190 65942 184.00 225.27

Kanchee- Kanchee-
74 41552 73.92 105.69
puram puram
Karur Karur 55 11299 9.87 10.91

Thanjavur

Kumbakonam Ariyalur 48 13564 50.00 68.09

Perambalur

Madurai
Madurai 36 11737 12.76 14.96
Theni

Nagercoil Kanyakumari 40 6545 17.00 20.67

7
 Production Sales
Total No.of
Districts No.of Value Value
Circle Handloom
Covered Members (Rs.in (Rs.in
Societies
Crore) Crore)
Ramanatha-
puram
Paramakudi 86 11573 25.00 32.12
Sivagangai

Salem

Salem Dharmapuri 62 25243 45.83 58.79

Krishnagiri

Namakkal
Tiruchengode 75 17890 26.66 30.66
Salem

Tirunelveli
Tirunelveli 45 7372 11.06 13.14
Tuticorin

Thiruvallur
Thiruvallur 61 5903 11.04 12.68
Chennai

Tiruvarur
Tiruvarur 6 1053 1.03 1.31
Nagapattinam

Trichy
Trichy 21 4120 2.24 2.59
Pudukottai

Thiruvanna- Thiruvanna-
29 10481 15.24 17.51
malai malai

Tiruppur Tiruppur 46 16913 34.22 35.59

Vellore Vellore 54 9910 16.09 18.78

Virudhunagar Virudhunagar 56 17212 61.62 71.72

Total 1139 319552 695.50 852.93

8
 Performance of Handloom Weavers
Co-operative Societies for the past 3 years

9
Agency wise Sales details for the past 3 years

800

600
Rs in crore

Cotton
400
Silk
Home Decor
200

0
2015-16 2016-17 2017-18

Variety wise Sales details for the past 3 years

10
1000 Butta Paramakudi Cotton Saree

Aruppukottai Cotton Saree

11
PEDAL LOOM

Pedal loom is an improved type of Handloom

by which the entire weaving activities are carried
out by simply pressing the pedals up and down
which synchronizes all the basic mechanism of the
weaving. The weaving defects are less in Pedal
loom and the production is more than twice.
Hence, in order to reduce physical strain of
Handloom Weavers and to increase the production
by using upgraded technology thereby improve the
wage earning capacity of the Handloom Weavers,
the Government of Tamil Nadu have supplied 6000
Pedal looms to the Handloom Weavers of Weavers
Co-operative Societies during the year from
2013-2014 to 2015-2016.

In Tamil Nadu, around 14,000 Pedal looms

are functioning in the Handloom Weavers
Co-operative Societies out of which around 9,690
Pedal looms are engaged in the production of Cost
Free Distribution of Sarees and Dhoties during the

12
period from July to December and around 6,960
Pedal looms are engaged in Free Distribution of
Uniform scheme varieties during the period from
February to June in the Handloom Weavers
Co-operative Societies. The remaining number of
Pedal looms are involved in the production of
market varieties.

The Handloom Weavers Co-operative

Societies have produced 35.05 lakh Pedal loom
Sarees valued at Rs.68.05 crore and 11.30 lakh
Pedal loom Dhoties valued at Rs.16.16 crore under
Cost Free Distribution of Sarees and Dhoties
Scheme, Pongal 2018. Besides, 41.03 lakh meters
of Pedal loom Casement cloth valued at Rs.15.81
Crore and 69.15 lakh meters of Pedal loom
Duppatta cloth valued at Rs.18.66 crore were
produced under Cost Free Supply of Uniform
Scheme for the Academic Year 2017-2018.

13
(ii) POWERLOOM SECTOR

The decentralized powerloom sector is one of

the most crucial segments of the Textile industry
in terms of fabric production and employment
generation. It provides employment to 64.36 lakh
persons and contributes 60% of total cloth
production in the country. 60% of the fabrics
produced in the powerloom sector are man-made.
More than 60% of fabric meant for export is also
sourced from powerloom sector. The readymade
garments and home textile sectors are heavily
dependent on the powerloom sector to meet their
raw material requirement viz., fabric, etc.

There are approximately 25.74 lakh power

looms in India. The level of technology of this
sector varies from plain loom to high tech
shuttleless looms. There are approximately 1.50
lakh shuttleless looms in this sector. It is
estimated that more than 75% of the shuttle
looms are obsolete and out dated with a vintage of

14
more than 15 years and have virtually no process
or quality control devices / attachments.

The powerloom sector in Tamil Nadu has

been playing an important role in meeting the
clothing needs of the people. The powerloom
sector of our State is next to Maharashtra in terms
of number of powerlooms established. As against
25.74 lakh powerlooms in India, our State
accounts for around 5.67 lakh power looms.
46,229 powerlooms are functioning in 210
Powerloom Weavers Co-operative Societies in our
State.

The powerloom clusters are located mostly in

Namakkal, Salem, Erode, Coimbatore, Vellore,
Cuddalore, Kancheepuram, Thiruvannamalai,
Madurai, Karur, Tiruvallur, Tirunelveli and
Virdhunagar districts. Most of the powerlooms
located in Salem, Karur, Tiruppur, Thiruvallur,
Pallipalayam and Komarapalayam are engaged in
export oriented production. Major chunk of the

15
Power looms in Tamil Nadu are plain looms with
very few shuttleless looms.

The Powerloom Weavers Co-operative

Societies mainly produce the cloth required under
the Scheme of Free supply of Uniforms to School
Children and Cost Free Distribution of Sarees and
Dhoties Scheme. During the year 2017-2018, the
Powerloom Weavers Co-operative Societies
produced 1440.43 lakh metres of cloth valued at
Rs.399.22 crore for the Government Schemes and
42.19 lakh metres of cloth valued at Rs.23.08
crore for the open market and sold cloth valued at
Rs.386.90 crore for the Government Schemes and
Rs.38.00 crore in the open market.

16
 Performance of Powerloom Weavers Cooperative Societies
as on 31.03.2018

Production Sales
Name of the cirlce

Total No of PWCS

No. of Members

Schemes

Schemes
Market

Market
Open

Open
Govt

Govt
Sl.
No

In Lakh

In Lakh
meter

meter
Crore

Crore

Crore

Crore
Rs.in

Rs.in

Rs.in

Rs.in
1 Erode 48 6480 665.83 189.22 1.6 3.42 195.87 3.50

2 Coimbatore 20 1141 123.00 34.14 1.2 0.65 29.15 0.65

3 Salem 13 893 9.33 2.66 15.51 12.27 2.92 5.59

Tiruchen-
4 68 4225 521.58 139.62 23.42 6.68 141.31 28.20
gode

5 Tiruppur 21 932 118.00 32.66 0 0 16.76 0

6 Madurai 5 79 2.69 0.93 0 0 0.887 0

Virudhu-
7 1 23 0 0 0.46 0.06 0 0.06
nagar

8 Thiruvallur 34 1310 Nil

Total 210 15083 1440.43 399.22 42.19 23.08 386.90 38.00

17
 Powerloom, Erode

Rapier Shuttleloom, Tiruchengode

18
Shuttleless Loom, Erode

19
Auto Loom

Airjet Loom

20
(iii) SPINNING SECTOR

The organized textile sector in the country

has more than 3400 textile mills both in the Small
Scale and the Medium Scale units. The total
installed capacity of spindles is the second largest
in the world with more than 52.47 million spindles
and 8,42,000 rotors. The mill sector produces
nearly 2500 million square metres of cloth apart
from 2500 million kilograms of man-made fibre
and man-made filament yarn.

Tamil Nadu leads all the States in the

Country with 2,027 textile mills and 24 million
spindles, which includes 6 Co-operative Spinning
Mills and 7 National Textiles Corporation Mills.

21
 Spinning Unit

The State produces about 2,003 million

kilograms of spun yarn annually contributing to
35% of the total spun yarn produced in India.
Tamil Nadu ranks number one in the production of
cotton yarn and man-made fibre yarn and second
in blended yarn at the National level. Tamil Nadu
continues to be number one State in the country in
export of cotton yarn.

22
(iv) GARMENTS AND HOSIERY SECTOR

Garment sector is a highly labour-intensive

one that provides a gateway for the developing
countries to enter into the global trade.

Indian sub continent is the second largest

manufacturer of garments in the world. Majority of
the garment manufacturers in India belong to the
Small and Medium scale units. India’s garment
sector is a well-organized enterprise and is among
the best in the World. It comprises designers,
manufacturers, suppliers, stockists, wholesalers
and exporters. Indian Garment sector has carved
a niche in the global market and earned a
reputation for its texture, durability and quality.
The frequent changes witnessed in this sector by
consumer preferences; availability of various
branded apparel and fashion accessories, boom in
retail segment; affordability of the people shopping
at departmental and discount stores, shopping
malls, with rising disposable incomes; Government

23
policies being focused on fast-track textile exports,
have all created a conducive climate for inviting
huge investment opportunities in the Garment
sector in our country.

A Garment Stitching Unit at Tiruppur

Garment sector plays a vital role in the

economy of developing nations. In India, the
apparel and garment sector employs nearly 1.23
crore workforce and produces 36 lakh tonnes of
apparel and garments. The ready-made
garmenting segment contributes to 43% of the
Indian textile exports, which include cotton
garments and accessories, man made fibre

24
garments and other textile clothing. India’s
garment sector has witnessed rapid growth in the
recent past.
In our State, the garment sector is an
important growing segment of the Textile Industry.
Out of 13,000 garment units in India, 6,500 units
are located in Tamil Nadu of which, 3500 units are
in Tiruppur and about 3000 units are located in
Madurai, Karur, Salem, Erode, Coimbatore and
Chennai, providing employment to around 6 lakh
persons.
The total exports and domestic turnover in
Tiruppur during the year 2017-2018 was about
Rs.34,000 crore. Knitwear exports from Tiruppur
decreased by about 5.6% from previous year
2016-2017 due to competition and changes in the
duty and tax structures.

(v) PROCESSING SECTOR

The processing sector determines the core

product value, product quality and has tremendous
scope for innovations and control over the end
25
product. Processing is an important value added
segment in the textile value chain.

In Tamil Nadu, processing facility is mainly in

the unorganized hand dyeing/hand printing sector.
Pre-loom and post-loom facility has not grown
adequately to meet the demand of the textiles
industry.

The Processing of Textiles involves two

types:

1 The Bleaching and Dyeing of Yarn for the

production of yarn dyed dress materials
and home textiles

2 The Bleaching, Dyeing, Printing of grey

fabric into sarees, lungies and other home
textiles

The present availability of the processing

facilities is very insufficient and only the
installation of large-scale processing facilities will
help the industry grow systematically in the State.

26
 Processing Unit

There are about 10,397 hand processing

units and 2,510 power processing unit in India.
Out of which, 2,614 hand processing units and 985
power processing units are located in Tamil Nadu.

3. THE DEPARTMENT OF HANDLOOMS AND

TEXTILES
The Department of Handlooms and Textiles
has been functioning under the administrative
control of the Handlooms, Handicrafts, Textiles and
Khadi Department of Government of Tamil Nadu.

27
 The primary objective of the Department of
Handlooms and Textiles is to promote the
harmonious growth of Handloom, Powerloom and
Textile Sectors and to work for the welfare of the
weavers.

The Director of Handlooms and Textiles is

the Functional Registrar for the Textile related Co-
operatives in the State and is vested with powers
delegated as per the Tamil Nadu Co-operative Act
1983 and Rules 1988. The Director of Handlooms
and Textiles also functions as the “State Textile
Authority” and as such he has a general
responsibility to facilitate the smooth functioning
of the Spinning and Textile Mills, Hosiery Units,
Handlooms and Powerlooms in the State. The
Department has the overall responsibility for
ensuring the availability of raw materials to all
sectors of the industry, augmenting the production
of yarn and fabrics at reasonable prices, as well as
creating an environment to promote the sale of
end products. It has a special responsibility to the
28
Co-operative Sector – supply of yarn and other
raw materials to the Weavers Co-operative
Societies and also arranging for marketing of the
finished products through Co-optex, Loom World,
Society Showrooms and other selling outlets. To
ensure the availability of yarn, the production of
yarn was taken up by the Co-operative Spinning
Mills.

The Department of Handlooms and Textiles

also promotes the socio-economic well being of the
Weavers and is in-charge of implementing various
welfare and development schemes for their welfare
through 20 Circle Deputy Directors / Assistant
Directors of Handlooms and Textiles, located at
Kancheepuram, Salem, Vellore, Thiruvannamalai,
Cuddalore, Kumbakonam, Tiruvarur,
Tiruchirappalli, Karur, Tiruchengode, Thiruvallur,
Erode, Tiruppur, Coimbatore, Dindigul, Madurai,
Paramakudi, Virudhunagar, Tirunelveli and
Nagercoil.

29
 The Department of Handlooms and Textiles
has been enforcing the Handlooms (Reservation of
Articles for Production) Act, 1985 to protect the
handloom weavers and handloom industry from
the onslaught of powerlooms through the Deputy
Director (Enforcement) and Assistant Enforcement
Officers, namely, Chennai, Salem, Tiruchengode,
Erode, Tiruppur and Madurai.

The various institutions functioning under

the administrative control of the Department are
as follows:-

 1,139 Handloom Weavers Co-operative

Societies
 45 Handloom Weavers Co-operative
Societies have 99 own Sales Showrooms and
134 Agency Sales Showrooms
 210 Powerloom Weavers Co-operative
Societies
 6 Co-operative Spinning Mills –
Anna (Theni), Bharathi (Ettayapuram),
Pudukkottai (Aranthangi), Kanyakumari
30
 (Aralvoymozhi), Krishnagiri (Uttangarai) and
Ramanathapuram (Achankulam)
 Tamil Nadu Handloom Weavers Co-operative
Society Limited (Co-optex), Chennai.
 Tamil Nadu Handloom Development
Corporation Limited (TNHDC), Chennai.
 Tamil Nadu Textile Corporation Limited
(TNTC), Coimbatore.
 Tamil Nadu Zari Limited (TNZL),
Kancheepuram.
 Tamil Nadu Co-operative Textile Processing
Mills Limited (TCTP), Erode
 Tamil Nadu Co-operative Spinning Mills
Federation Limited (TANSPIN), Chennai

31
4. SPECIAL SCHEMES IMPLEMENTED BY
THE DEPARTMENT

4.1 Cost Free Distribution of Sarees and

Dhoties Scheme

The Cost Free distribution of Sarees and

Dhoties Scheme has been introduced during the
year 1983 as one of the flagship scheme by the
Government of Tamil Nadu. This scheme is being
implemented for distribution of Sarees and Dhoties
to the poor people living in rural and urban areas
in Tamil Nadu on the eve of Pongal festival every
year. The entire quantity of Sarees and Dhoties
required for this scheme are being produced by
the Handloom and Powerloom Weavers
Co-operative Societies. This scheme ensures
continuous employment to 14,000 Handloom and
54,000 Powerloom Workers besides fulfilling the
clothing needs of 3.09 Crore poor people residing
in the rural and urban areas in Tamil Nadu.

32
 Cost Free Sarees and Dhoties

The Government has made a provision of

Rs.490.45 crore in the Budget Estimate 2017-2018
for the implementation of the above scheme for
Pongal 2018. The Department undertook the tasks
of procurement of yarn and production of Sarees
and Dhoties required for the scheme. In order to
carry out the tasks of procuring the Sarees and
Dhoties produced by the Weavers
Co-operative Societies and supplying the above
procured Sarees and Dhoties to the Revenue
Department under this scheme, Co-optex and
TNTC are appointed as nodal agencies. Around
154.72 lakh Sarees and 154.84 lakh Dhoties were
33
produced and supplied to the Revenue Department
as given below:-

Quantity Tentative Value

Sl.
Variety (in lakh) (Rs. in crore)
No.
Sarees Dhoties Sarees Dhoties
1 Handloom 3.51 5.21 8.60 9.72
2 Pedal loom 35.11 11.32 68.19 16.19
3 Powerloom 116.10 138.31 191.17 135.13
Total 154.72 154.84 267.96 161.04

A sum of Rs.490.45 crore has been allocated

in the Budget Estimate for the year 2018-2019 for
implementing the above scheme continuously for
Pongal 2019.

Cost Free Distribution of Sarees and Dhoties

to Old Age Pensioner

The Sarees and Dhoties required for Old Age

Pensioners on the eve of Deepavali 2017 and
Pongal 2018 have also been supplied through
Handloom and Powerloom Weavers Co-operative
Societies. During the year 2017-2018, 40.60 lakh
sarees and 15.82 lakh dhoties were produced and

34
supplied to the Revenue Department through
Co-optex.

4.2 Cost Free Supply of Uniform to School

Children

The Government is implementing the

scheme of Free Supply of Uniforms every year to
school children, who are the beneficiaries of
Dr.Puratchi Thalaivar MGR Nutritious Meal
Programme studying in standard 1st to 8th from the
year 1985-1986. As per the announcement made
by the Hon’ble Chief Minister, 4 sets of uniforms
are being provided from the academic year
2012-2013.

The uniform cloth varieties required for the

scheme namely Drill, Casement, Duppatta, and
shirting are produced by 10,000 Handloom
weavers and 25,600 Powerloom workers. The
Government have sanctioned and released
Rs.282.59 crore for the implementation of the
scheme for the Academic Year 2017-2018. About
35
498.81 lakh metres of uniform cloth varieties for a
value of Rs.282.59 Crore have been produced and
supplied under this scheme during the academic
year 2017-2018 as detailed below:-

Quantity of Value
Sl. Name of
Uniform Cloth (Rupees in
No. the loom
(in lakh Metres) Crore)
1 Handloom 6.88 6.42
2 Pedal loom 108.40 55.15
3 Powerloom 383.53 221.02
Total 498.81 282.59

The Government have accorded permission

to continue the Free supply of Uniform Scheme for
the Academic Year 2018-2019 and also approved
New Uniform Colours for students studying in I to
V standard. Accordingly, the students studying 1st
to 5th standard will be provided with uniform in
Aqua Green and Meadow Green shades and the
students studying 6th to 8th standard will be given
uniform in Light Brown and Maroon shades.

36
New Uniform Colours for students
studying in I to V standard

Uniform Colours for students

studying in VI to VIII standard

37
 Accordingly, production plan has been given
to Handloom and Powerloom Weavers’
Co-operative Societies for manufacturing the grey
cloth and production, processing works are being
undertaken. Supply of 1st set requirement of
130.00 lakh metre uniform cloth has been
completed. Supply of 2nd set will be completed by
June and the supply of third and fourth set will be
completed by September.

The Uniform cloth required by Adi Dravidar

and Tribal Welfare Department, Backward Classes
and Minorities Welfare Department and Most
Backward Classes and De-notified Communities
Welfare Department are also being supplied by the
Department.

The Uniform cloth requirement of various

Departments for the academic year 2018-2019 is
furnished below:-

38
 Total cloth
Number
requirement
Name of the Department of
(in lakh
Students
metres)
Social Welfare (including
Adi Dravidar Welfare) 494.57 40,21,426
(I to VIII Std)
Most Backward Classes and
De-notified Communities 3.54 19,003
Department (IV to X Std)
Backward Classes Hostel
3.71 20,298
Students from IV to X std.
Adi Dravidar Department
13.50 67,043
(IX to XII std. Students)
Total 515.32 41,27,770

4.3 Free Electricity to Handloom weavers

The Government of Tamil Nadu implemented

the scheme for supply of free electricity upto 100
units (bi-monthly) for handloom weavers till
22.05.2016. The Government have enhanced the
free supply of electricity to handloom weavers
from 100 units to 200 units bi-monthly with effect

39
from 23.05.2016. Under this scheme, 1,11,394
handloom households are being benefited.

The Government have sanctioned a sum of

Rs.2.88 crore in the Revised Estimate for the year
2017-2018.

This scheme will be continued in the year

2018-2019, for which, a provision of Rs.4.84 crore
has been allocated in Budget Estimate.

4.4 Free and Subsidised Electricity to

Powerloom weavers

The powerloom weavers were provided with

the supply of free electricity upto 500 units
(bi-monthly) by the Government of Tamil Nadu till
22.05.2016. The Government have enhanced the
supply of free electricity to powerloom weavers
from 500 units to 750 units including fixed charges
with effect from 23.05.2016. Under this scheme,
1,24,877 powerloom units/shed are being
benefited.

40
 The Powerlooms are also given rebate in the
tariff as mentioned below:-

Tariff per
Government unit
Tariff per
subsidy per payable by
Unit unit
unit the
weavers
(Amount in Rupees)
1 - 500 5.20 5.20 Free
501 - 750 5.75 5.75 Free
751 - 1000 5.75 3.45 2.30
1001 - 1500 5.75 2.30 3.45
1500 and
5.75 1.15 4.60
above

The Government have sanctioned and

released a sum of Rs.387.09 crore to the Tamil
Nadu Generation and Distribution Corporation
(TANGEDCO) for free electricity and for rebate in
tariff for powerloom weavers for the year
2017-2018.

This scheme will be continued in the year

2018-2019, for which, a provision of Rs.436.44
crore has been made in the Budget Estimate.
41
 450
388.43 391.70
400
Rs. in crore 350 313.43
300 245.61 277.43
250
200
150
100
2013-14 2014-15 2015-16 2016-17 2017-18
Year

Free supply of Electricity to Handloom /

Powerloom weavers

4.5 Rebate Subsidy Scheme

The Government of Tamil Nadu is providing

subsidy towards rebate to promote the sale of
handloom cloth. This scheme enables the Primary
Weavers’ Co-operative Societies and Co-optex to
improve marketing of handloom products in order
to ensure continuous employment to the
Handloom Weavers. This scheme not only enables
the Primary Weavers’ Co-operative Societies and
Co-optex to liquidate the stock but also aims at

42
protecting the handloom sector from cut throat
competition from the mill and powerloom sectors.

The State Government permit the Primary

Weavers’ Co-operative Societies and Co-optex to
allow rebate at the rate of 20% for the sale of
handloom cloth throughout the year for the retail
and wholesale, subject to the limitation of 20% or
Rs.100/- per unit for cotton varieties and 20% or
Rs.200/- per unit for silk varieties whichever is
less.

On the eve of birthday of Perarignar Anna,

an additional 10% special rebate over and above
the normal rebate of 20% i.e., 30% rebate is
allowed for a period of 139 days from 15th
September to 31st January every year. Under this
special rebate, 30% or Rs.150/- per unit
whichever is less for cotton varieties and 30% or
Rs.300/- whichever is less for silk varieties is
allowed.

43
 Rebate subsidy on sale of Handloom cloth

Under this scheme a sum of Rs.100.00 crore

has been provided in the Revised Estimate for the
year 2017-2018. This scheme will also be
continued during the year 2018-2019, for which, a
provision of Rs.150 crore has been made in the
Budget Estimate.

4.6 Interest Subsidy Scheme

The Primary Weavers Co-operative Societies

are getting working capital assistance from District
Central Co-operative Banks (DCCB) under National
Bank for Agriculture and Rural Development
44
(NABARD) refinance Scheme and also from District
Central Co-operative Bank’s (DCCB) own funds. In
order to reduce the interest burden of the Primary
Weavers’ Co-operative Societies and to ensure
continuous employment to handloom weavers,
“Interest Subsidy Scheme” is being implemented
by the Government of Tamil Nadu.

During the year 2017-2018, for 1,103

Primary Handloom Weavers Co-operative
Societies, Cash Credit of Rs.443.07 crore was
sanctioned by the District Central Co-operative
Banks.

The Primary Weavers Co-operative Societies

are being provided 4% interest Subsidy on the
rates charged by District Central Co-operative
Banks on Cash credit. In order to speed up the
process of payment, the power of sanction of
“interest subsidy” was delegated to Director of
Handlooms and Textiles from November 2012
onwards and the Interest subsidy is being

45
sanctioned on monthly basis, instead of quarterly
basis.
Interest Subsidy to the extent of Rs.17.02
crore has been released to the Primary Handloom
Weavers Co-operative Societies during the year
2017-2018.

Interest subsidy sanctioned to the Primary Handloom

Weavers Co-operative Societies

This scheme will be continued during

2018-2019 and a provision of Rs.10.50 crore has
been made in the Budget Estimate for the year
2018-2019.
4.7 The Best Exporters Award

To encourage the handloom exports and to

augment the sale of handloom products in the

46
international market, a scheme for awarding the
Best Exporters is being implemented by the
Government, since 1975.

This scheme covers both private exporters

and the Weavers Co-operative Societies and
Co-optex in Tamil Nadu. Every year, 3 best private
exporters are selected and awarded First, Second
and Third Prizes by distributing trophies and
certificates. Apart from the above three awards,
one more award is given to best
Co-operative institution for their export
performance.
The Government have allotted a sum of
Rs.1.00 lakh per annum for this purpose. During
the year 2017-2018, Trophies and Certificates
were distributed to the 3 best Handloom Exporters
of Tamil Nadu and Co-optex.

A provision of Rs.1.00 lakh has been made

in the Budget Estimate for the year 2018-2019.

47
4.8 Prize Award Scheme for the Best
Weavers for Designing

The Government of Tamil Nadu is

implementing the Prize Award Scheme for best
weavers to encourage them to weave new designs
in cotton and silk varieties, since 1993.

Under this scheme, the first prize of Rs.

5000/- second prize of Rs.3000/-and third prize of
Rs.2000/- are being distributed to the best
handloom weavers in each category who have
developed new and innovative designs in cotton
and silk varieties. During the year 2017-2018, a
sum of Rs.2 lakh was distributed to 60 best
handloom weavers for new designs.

The expenditure under this scheme is being

met out from the Co-operative Research and
Development Fund of Tamil Nadu Co-operative
Union.
This scheme will be continued during the
year 2018-2019.

48
Award winning handloom saree

Award winning handloom saree

49
 National Award winner sharing techniques with
a handloom weaver at Kancheepuram

4.9 State Level Best Weaver Award

The State Government have introduced a

scheme for “the State Level Best Weaver Award”
by giving cash prize of Rs.1,00,000/- with a
certificate from the year 2013-2014, to motivate
the handloom weavers who have significantly
contributed for the development of Handloom
Weavers Co-operative Societies in terms of
production and sales.

50
 For the year 2017-2018, the State Level
Best Weaver Award was awarded to
Thirubhuvanam Silk Handloom Weavers
Co-operative Society’s member.

This scheme will be continued during the

year 2018-2019 and a provision of Rs.1.00 lakh
has been made in the Budget Estimate for the year
2018-2019.

5. DEVELOPMENT SCHEMES IMPLEMENTED

BY THE DEPARTMENT

5.1 NATIONAL HANDLOOM DEVELOPMENT

PROGRAMME

The Government of India have formulated

the revised guidelines for the implementation of
National Handloom Development Programme
(NHDP) during the year 2017-2018 to 2019-2020.
The Government of India is implementing the
Cluster Development Programme under the newly
formulated National Handloom Development

51
Programme for the welfare of handloom weavers
both within and outside the Co-operative fold.

The Cluster Development Programme

focuses on formation of Weaver’s Groups, so that
the groups become self-sustainable. Clusters
would be set up in a place where there is a large
production of handloom fabrics in tune with the
market demands. A place where there is a
concentration of handlooms in a Block can be
identified for setting up of Block Level Handloom
Cluster (BLHC). The maximum permissible
financial assistance of Government of India per
Block Level Handloom Cluster Rs.200 lakh as
indicated Below:-

Financial
Sl. Component Assistance
No. (Rs. in
Lakh)
1 Technological upgradation 70.00
2 Common Facility Centre 50.00
including Common Service
Center
3 Skill Up-gradation Programme 35.00

52
 Financial
Sl. Component Assistance
No. (Rs. in
Lakh)
4 Engagement of Designer 15.00
5 Project Management Cost 15.00
6 Yarn Corpus Fund 5.00
7 Product Development / CATD 10.00
TOTAL 200.00

Apart from this, an amount of Rs.50.00 lakh

can be availed for setting up of dye-house with
ETP at district level.

Towards implementation of Block Level

Handloom Cluster, financial assistance is provided
for conduct of baseline survey, diagnostic study,
awareness programme, technology upgradation for
on-loom activities such as providing Motorised
Jacquard Lifting Machine on the existing handloom,
providing various accessories for handlooms,
product development / diversification, engagement
of Textile Designer-cum-Marketing Executive,
purchase of Computer Aided Textile Design
System (CATD), Card Punching System, corpus

53
fund for yarn depot, setting up of Common Facility
Centre including Common Service Centre (CSC)/
Dye House, assistance for construction of work
shed, etc.

Under "Hathkargha Samvardhan Sahayata",

financial assistance to the extent of 90% of cost of
technological Up-gradation shall be borne by
Government of India while remaining 10% shall
be borne by the beneficiary.

The details of admissible items with cost as

per guidelines of Government of India is as
mentioned below:-

Component Cost
a) Pneumatic jacquard system Rs.40,000/-
for a set of 4 handlooms
b) Motorized jacquard on the Rs.15,000/-
existing handloom
c) Take-up & let off motions on Rs.5,000/-
the existing handloom
(including fitting charges)
d) Multiple box motion Rs.3,000/-
e) Multiple buti weaving sley Rs.7,000/-

54
 Component Cost
f) Twin cloth weaving Rs.5,000/-
mechanism (including fitting
charges)
g) Jacquard with complete set Rs.15,000/-
including installation
h) Dobby Rs.5,000/-
i) Healds reeds, bobbins, Rs.4,000/-
shuttles etc. (set)
j) Frame Loom
a) Upto 60” Rs.25,000/-
b) above 60” Rs.40,000/-
K) Asu Machine (Mannual) Upto Rs.10,000/-
l) Asu Machine (Motorized) Upto Rs.30,000/-
m) Warp beam & fabric beam Upto Rs.5,000/-
n) Normal warping machine Upto Rs.25,000/-
o) Motorized warping machine Upto Rs.45,000/-
p) Motorized Pirn Winding Upto Rs.3,000/-
machine
Motorized Prin- cum bobbin/ Upto Rs.4,000/-
q) dubba Winding machine
Street Sizing Kit (brush, Upto Rs.10,000/-
sticks, spray gun etc.)
r) Any other item recommended
by the Expert Committee and
approved by the DC
(Handlooms)

55
 Workshed constructed at Watrap Block
under Virudhunagar Mega Handloom Cluster

The Government of India have sanctioned

and released funds during the year 2015-2016 to
2017-18 towards implementation of Block Level
Handloom Cluster (BLHC) and Mega Handloom
Clusters under National Handloom Development
Programme (NHDP)/ Comprehensive Handloom
Cluster Development Scheme (CHCDS) as
mentioned below:-

56
 Details of Cluster Programmes
(Rs.in Lakh)
Amount
Total
S. Name of the released Expenditure
Project
No. Scheme by GoI so far made
Cost
I. 10 BLHCs under 1579.14 1480.36 609.00
National
Handloom
Development
Programme

II. 22 BLHCs under 1678.78 1323.79 785.00

Trichy Mega
Handloom
Cluster

III. 16 BLHCs under 1755.00 546.91 306.00

Virudhunagar
Mega Handloom
Cluster

IV. 4 New BLHCs 513.09 240.69 54.71

under National
Handloom
Development
Programme

Common Interventions for Trichy Mega Handloom

Cluster (TMHC)
i) Souvenir Shop 130.00 117.00 92.00
at Thanjavur
ii) Marketing 600.00 48.00 0
Complex at
Thirubuvanam

57
 Amount
Total
S. Name of the released Expenditure
Project
No. Scheme by GoI so far made
Cost
iii) 3 District Level 150.00 75.00 28.77
Dye-House with
ETP
iv) Marketing 200.00 62.80 59.95
Intervention
components
Common Interventions for Virudhunagar Mega
Handloom Cluster (VMHC)
i) Souvenir Shop 183.00 73.20 14.50
at Karaikudi
ii) 2 Marketing 800.36 130.00 10.00
Complexes at
Madurai &
Tirunelveli
iii) 5 District Level 250.00 125.00 45.57
Dye-House with
ETP
iv) Marketing 734.54 584.89 533.00
Intervention
components
v) Design Studio at 25.00 18.00 18.00
Paramakudi
vi) Linking 140.00 0 0
Handloom with
Fashion utilizing
NIFT/NID
Total 8738.91 4825.64 2576.50

58
 As per the projects approved by the Government of
India, the following Block level cluster programmes are
being implemented by the Government of Tamil Nadu.

(Rs in Lakh)

Government of

Government of
Cost approved

Beneficiaries
Total Project

India Share
released

No. of
Name of the Block

India
S.

by
Level Handloom
No
Cluster

I 10 Block Level Handloom Cluster (BLHC)

1 West Arni 147.08 139.89 678
2 Palladam 181.50 169.20 844
3 Kancheepuram 162.33 153.16 810
4 Karamadai – I 181.40 169.39 910
5 Ayothiyappattinam 171.24 160.68 954
6 Chennimalai 170.74 159.44 877
7 Tiruppur Block 181.50 169.44 874
8 Paramakudi 123.25 115.59 1189
9 Kuruthancode 78.70 72.95 343
10 Pollachi North 181.40 170.62 912
II Trichy Mega Handloom Cluster (TMHC)
11 Thiruvidaimarudhur – I 130.53 57.24 407
12 Thiruvidaimarudhur– II 64.29 58.00 811
13 Thiruvidaimarudhur–III 94.73 85.41 1020
14 Thirupanandal 125.33 54.16 363

59
 Government of

Government of
Cost approved

Beneficiaries
Total Project

India Share
released

No. of
Name of the Block

India
S.

by
Level Handloom
No
Cluster

15 Ammapettai 116.35 50.12 292

16 Jayankondam 60.62 54.99 841
17 Andimadam 126.96 54.90 445
18 T.Palur 18.74 17.03 239
19 Sendurai 21.60 19.58 279
20 Thathaiyangarpettai 126.88 55.60 239
21 Musiri 12.79 11.45 71
22 Thottiyam 19.65 17.60 423
23 Karur – I 129.37 56.70 243
24 Karur – II 50.82 46.23 300
25 Thanthoni 45.28 40.77 272
26 Aravakurichi 36.81 33.14 246
27 Palani 33.49 30.15 661
28 Dindigul – I 89.99 79.99 2273
29 Dindigul – II 90.24 80.22 2129
30 Athoor 91.07 81.28 1673
31 Thoppampatti 123.07 53.25 357
32 Mannargudi 70.16 63.56 669
III Virudhunagar Mega Handloom Cluster (VMHC)
33 Aruppukottai Block – I 105.00 45.00 220
34 Aruppukottai Block – II 105.00 45.00 220

60
 Government of

Government of
Cost approved

Beneficiaries
Total Project

India Share
released

No. of
Name of the Block

India
S.

by
Level Handloom
No
Cluster

35 Aruppukottai Block–III 105.00 45.00 220

36 Aruppukottai Block– IV 105.00 45.00 220
37 Srivilliputhur Block 105.00 45.00 220
38 Rajapalayam Block – I 105.00 45.00 220
39 Rajapalayam Block – II 105.00 45.00 220
40 Watrap Block 105.00 45.00 220
41 Sankarankoil Block 105.00 45.00 220
42 Paramakudi Block 105.00 45.00 220
43 Karaikudi Block 105.00 45.00 220
44 Watrap – III Block 120.00 8.58 40
45 Aruppukottai-V Block 120.00 8.58 40
46 Watrap-II, Block 120.00 8.58 40
47 Paramakudi Block-III 120.00 8.58 40
48 Paramakudi Block – II 120.00 8.58 40
IV 4 New Block Level Handloom Cluster (BLHC)
49 Arni – I 167.84 80.47 703
50 Arni – II 117.84 55.47 410
51 Nangavalli 120.38 54.20 432
52 Kancheepuram – II 107.03 50.55 412
Total 5526.00 3360.32 27221

61
 Component-wise details for the above Block Level
Handloom Clusters are being implemented by the
Government of Tamil Nadu:-

Amount
S. sanctioned No. of
Component
No by G.O.I Beneficiaries
(Rs.in Lakh)
TECHNOLOGY UP-GRADATION
1 Motorized Jacquard 277.10 2070
2 Jacquard on Existing Loom 114.60 1864
3 Dobby on Existing Loom 20.20 449
4 Headls & Reeds 312.92 9091
5 Purchase of Frame Loom
a) Up to 60” 221.99 1001
b) Above 60” 232.41 574
6 Construction of Workshed 425.39 632
7 Lighting Units 153.44 4598
8 Take-Up & Let Off 11.70 260
9 Warp & Fabric Beam 64.95 1475
10 Multi Butti Weaving Sley 13.72 186
11 Any Other Intervention 12.02 615
12 Motorized Pirn Winding
Machine 12.15 270
Motorized Pirn Cum
13 Bobbin/Duba Winding
Machine 2.84 79
14 Motorized Warping
Machine 27.98 110
TOTAL 1903.41 23274

62
Setting up of 25 Common Service Centre
(CSC) in various Block Level Handloom
Cluster (BLHC)

As announced during the year 2017-2018,

the Government of India approved the setting up
of Common Service Centres (CSCs) at a cost of
Rs.3.78 lakh each in 25 locations of Block Level
Handloom Cluster (BLHC) at a total Central share
of Rs.94.50 lakh and released first installment of
Rs.35.50 lakh to M/s CSC e-Governance Service
India Ltd., an authorized agency of Government of
India. Accordingly, the Agency has started setting
up of Common Service Centre (CSC) in the
following locations approved by the Government of
India in the select Handloom Clusters as indicated
below:-

Name of the
S. Name of the
Common Service
No. District
Centres
1 Palladam Block Tiruppur

2 Kancheepuram Block Kancheepuram

3 Karamadai – I Block Coimbatore

63
 Name of the
S. Name of the
Common Service
No. District
Centres
4 Ayothiyopattinam Block Salem

5 Chennimalai Block Erode

6 Tiruppur Block Tiruppur

7 Pollachi North Block Coimbatore

8 Thiruvidaimarudhur-I

9 Tiruppanandal
Thanjavur
10 Ammapettai

11 Andimadam

12 Thoppampatty Dindigul

13 Karur Block – I Karur

14 Thathaiyangarpet Trichy

15 Aruppukottai Block – I

16 Aruppukottai Block – II

17 Aruppukottai Block–III

18 Aruppukottai Block – IV
Virudhunagar
19 Srivilliputhur Block

20 Rajapalayam Block – I

21 Rajapalayam Block – II

22 Watrap Block

64
 Name of the
S. Name of the
Common Service
No. District
Centres
23 Sankarankoil Block Tirunelveli

24 Paramakudi Block Ramanathapuram

25 Karaikudi Block Sivagangai

Marketing Complex at Madurai and Tirunelveli

As announced during the year 2017-2018,

the Government of India sanctioned for setting up
of Marketing Complex at Madurai, Tirunelveli in
Virudhunagar mega handloom cluster under
Comprehensive Handloom Cluster Development
Scheme (CHCDS) at a total project cost of
Rs.800.36 lakh consisting of Central share of
Rs.647.76 lakh and Promotor / SPV / Beneficiaries
share of Rs.152.58 lakh. Co-optex, Chennai is the
implementing agency. The preliminary work for
Construction of Marketing Complexes at Madurai
and Tirunelveli is in progress.

65
Setting up of “DESIGN STUDIO AT PARAMAKUDI”

As announced during the year 2017-18, the

Government of India have approved the project for
setting up of Design Studio at Paramakudi in
Virudhunagar Mega Handloom Cluster (VMHC)
under Comprehensive Handloom Cluster
Development Scheme (CHCDS) at a project cost of
Rs.25 lakh. Accordingly, Design Studio has been
set up at Paramakudi with required paraphernalia.

Design Studio at Paramakudi

66
 Inside view of Design Studio at Paramakudi

Towards implementation of Cluster

Development Programme, a provision of Rs.2 crore
has been allocated in the Budget Estimate for the
year 2018-2019.

5.2 Marketing Incentive (MI) under

National Handloom Development
Programme (NHDP)

Marketing Incentive is one among the

components of National Handloom Development
Programme. Under this scheme, financial
assistance is provided to the handloom agencies
(Primary Handloom Weavers Cooperative Societies
and Tamil Nadu Handloom Weavers Cooperative

67
Society Ltd.,) for preparing conditions which are
conducive for marketing of handloom products.
This scheme helps the primary weavers
co-operative societies to sustain themselves in the
open market. This scheme also helps them to
marginally reduce the price of the handloom
products and to improve the marketability.

The quantum of financial assistance provided

under this scheme is based on the 10% of the
average sales turnover of last 3 years. The funding
pattern will be shared between the Government of
India and State Government on 50:50 basis.

During the past 3 years, Marketing Incentive

has been released to Primary Handloom Weavers
Co-operative Societies and Co-optex as detailed
below:-

68
 (Rs.in crore)

Number of State share Central

Weavers of Share of
Sl.
Year Co- Marketing Marketing
No.
operative Incentive Incentive
societies Released Released
1 2014-2015 872 40.85 40.85
2 2015-2016 862 44.53 44.53
3 2016-2017 868 49.01 Yet to be
released by
4 2017-2018 282 2.35
Government
of India

The Government of India have revised the

guidelines for implementation of National
Handloom Development Programme (NHDP) for
the period from April 2017 to March 2020. As per
the revised guidelines, Marketing Incentive will be
given to those agencies, which really need
marketing support and it will be given maximum
for 3 years, so that the agencies sustain on their
own afterwards. As per the revised guidelines, an
upper cap of Rs.30 lakh of annual turnover is fixed
for eligibility for release of Marketing Incentive.

69
 A provision of Rs.30.00 crore has been
provided in the Budget Estimate for the year
2018-2019.

5.3 Handloom Marketing Assistance

National Handloom Development Programme

of Government of India is being implemented
from April 2017 to March 2020. The objective of
the Handloom Marketing Assistance is to develop
and promote the marketing channels in domestic
as well as export market and bring about linkage
between the two in a holistic and integrated
manner to increase the sale of handloom product.
The Handloom Marketing Assistance has the
following sub-components:
i. Domestic marketing promotion
ii. Marketing infrastructural development
iii. Market access initiative
iv. Handloom export promotion

70
 Under “Domestic marketing promotion”
component, the Government is implementing the
“Domestic Marketing Promotion Component;
National Handloom Exhibitions, Special Handloom
Exhibitions and district level events. The financial
assistance provided for conducting these
exhibitions are as follows:-

Financial
Sl.
Name of the event Assistance
No.
(Rs.in lakh)
1. National Handloom 45.00
Expo
2. Special Handloom Expo 12.00
3. District Level Events 3.50

Under this scheme, financial assistance is

provided for infrastructural support, Stall Rent,
Electricity charges, publicity, etc., and fully funded
by Government of India.
During the year 2017-2018, One National
Handloom Expo and 6 Special Handloom Expo
were conducted as detailed below:-

71
Sl. Nature of Event and Amount Sales
No. Place Sanctioned Generated
by GOI
Place of Type of (Rs.in lakh)
Event Expo
1. Chennai National 45.00 127.16
Handloom
Expo
2. Kumbakonam Special 12.00 48.70
Handloom
Expo
3. Dindigul Special 12.00 31.65
Handloom
Expo
4. Trichy Special 12.00 39.13
Handloom
Expo
5. Madurai Special 12.00 45.39
Handloom
Expo
6. Nagercoil Special 12.00 30.68
Handloom
Expo
7. Coimbatore Special 12.00 35.34
Handloom
Expo
Total 117.00 358.05

During the year 2018-2019, one National

Level Expo and six Special Handloom Exhibitions
are proposed to be conducted.

72
Special Handloom Expo at Coimbatore

Special Handloom Expo at Dindigul

73
5.4 Common Effluent Treatment Plants at
Tiruppur

Tiruppur textile cluster, being the prominent

knitwear manufacturing and export hub in the
country, is known as the Knitwear capital and it
caters to the needs of the leading textile brands in
the world. In order to cater to the processing
requirements of these garment units, there are
about 742 dyeing units, employing over one lakh
people and is a very important constituent of the
textile value chain.

The growth of the textile dyeing industry

resulted in polluting the River Noyyal which
adversely affected agriculture. The establishment
of few Common Effluent Treatment Plants (CETPs)
with conventional physical – chemical treatment
did not address the problem effectively. Therefore,
the industry had proposed to set up 18 CETPs with
Reverse Osmosis (R.O) systems by getting loans
to the tune of Rs.500.36 crore.

74
 As the Zero Liquid Discharge (ZLD) systems
in textiles were implemented for the first time in
India and as such there was lack of technical
know-how and experience, the Common Effluent
Treatment Plants could not achieve Zero Liquid
Discharge. Hence, the Hon’ble High Court ordered
for closure of all the CETPs in January 2011. Due
to the verdict of Hon’ble High Court, the CETPs
remained closed for about one and half years.

The Dyers Association of Tiruppur (DAT)

requested the Government to facilitate them to
reduce the financial burden and to restart the
CETPs. Based on the request, the Central and
State Governments had sanctioned a sum of
Rs.300 crore as subsidy to the 18 Common
Effluent Treatment Plants, of which the Central
Government share was Rs.187.50 crore and the
State Government share was Rs.112.50 crore. The
sanctioned subsidy has been released to banks and
adjusted against the principal loan outstanding of
the 18 Common Effluent Treatment Plants.
75
 In order to ensure Zero Liquid Discharge
(ZLD) by adopting Nano or Brine Reuse
Technology and to install additional machinery in
the existing CETPs, the State Government
sanctioned a sum of Rs.203.29 crore which is 75%
of the Zero Liquid Discharge (ZLD) project cost of
Rs.271.05 crore, as Interest Free Loan to all the
18 CETPs.

Subsequently, the industry utilized this

opportunity and installed and upgraded the
machines to their existing Zero Liquid Discharge
(ZLD) technology. The Government have so far
released a sum of Rs.203.29 crore and disbursed
Rs.168.34 crore to the 18 CETPs.

The details of Subsidy and Interest Free Loan

sanctioned:-

76
 Central & State Share State Govt.
Project Effluent
Subsidy Release Interest
No of cost Discharge
Sl. Name of the GOI GoTN Total Free Loan
Units (Rs. in Capacity
No. CETPs subsidy subsidy subsidy
crore) (MLD)
(Rs. in crore)
(1) (2) (3) (4) (5) (6) (7) (8) (9)
1 Veerapandi 72 74.86 12.00 20.04 12.02 32.06 23.14
2 Angeripalayam 77 60.72 10.00 15.42 9.25 24.67 18.10
3 Park 3 26.59 2.00 6.97 4.18 11.15 4.75
4 Mannarai 28 28.74 4.20 8.28 4.97 13.25 8.32
5 S.Periapalayam 7 14.15 1.50 3.94 2.36 6.30 7.52
6 Sirupooluvapatti 24 53.01 5.00 13.05 7.83 20.88 11.94
7 Karaipudur 25 33.00 4.50 7.64 4.59 12.23 12.84
8 Andipalayam 20 23.00 4.50 5.03 3.02 8.05 6.35
9 Vettuvapalayam 9 6.90 1.50 1.47 0.88 2.35 3.31

77
Noyyal (SPV) 50.89 30.54 81.43 0
10 Arulpuram 15 46.09 5.50 0 0 0 11.33
11 Kallikadu 12 22.08 3.00 0 0 0 4.87
12 Murugam palayam 67 89.22 11.00 0 0 0 22.65
13 Rayapuram 25 46.46 5.50 0 0 0 11.33
Mangalam Eastern (SPV) 22.43 13.46 35.89 0
14 Mangalam 17 35.49 4.00 0 0 0 8.90
15 Eastern 27 54.82 5.80 0 0 0 11.09

Tiruppur Industrial (SPV) 32.34 19.40 51.74 0

16 Chinnakarai 29 53.64 8.00 0 0 0 16.47
17 Kasipalayam 14 33.84 4.40 0 0 0 9.06
18 Kunnankal palayam 19 40.23 5.50 0 0 0 11.32

TOTAL 490 742.84 97.90 187.50 112.50 300.00 203.29

78
 Owing to the prolonged closure, the
Common Effluent Treatment Plants were unable to
remit the loan dues (both Principal & Interest) to
the Banks. The Dyers Association of Tiruppur again
requested the Government to sanction special
grant of Rs.200 crore to settle the bank loan
outstanding.

The Government of India sanctioned and

released a sum of Rs.200 crore as Interest Free
Loan to 18 CETPs at Tiruppur which will be
converted into grants in the succeeding years
based on the performance parameters. This
amount includes Rs.147.49 crore for One Time
Settlement (OTS) of loan over dues for 11 banks
and Rs.52.51 crore for completion of upgradation
works. The entire amount was utilized for
upgradation of machinery in all 18 Common
Effluent Treatment Plants. The details are given as
below:-

79
 SPECIAL FINANCIAL ASSISTANCE FROM
GOVERNMENT OF INDIA
(Rs. in crore)
Project Details of
Cost as ZLD Total
Sl. per DPR OTS to project Interest
Name of the CETP
No. Banks cost Free
apportion Loan
ed
(1) (2) (3) (4) (5) (6)
1 Arulpuram 15.10 5.95 2.93 8.88
2 Chinnakkarai 21.96 7.70 4.25 11.95
3 Rayapuram 15.10 5.95 2.92 8.88
4 Veerapandi 30.85 8.49 5.98 14.46
5 Kasipalayam 12.08 4.24 2.34 6.58
6 Kunnangalpalayam 15.10 5.30 2.93 8.23
7 Murugampalayam 30.20 11.91 5.85 17.76
8 Eastern 14.79 7.59 2.86 10.45
9 Sirupooluvapatti 15.92 20.54 3.08 23.62
10 Karaipudhur 17.12 22.46 3.32 25.77
11 Mangalam 11.87 5.06 2.30 7.36
12 Angeripalayam 24.14 10.55 4.67 15.23
13 Kallikkadu 6.50 3.25 1.26 4.51
14 Andipalayam 8.47 14.23 1.64 15.87
15 Mannarai 11.10 3.99 2.15 6.14
16 Park 6.33 3.94 1.23 5.17
17 Vettuvapalayam 4.40 1.47 0.86 2.33
18 S.Periyapalayam 10.02 4.87 1.94 6.81
TOTAL 271.05 147.49 52.51 200.00

80
 In all the 18 Common Effluent Treatment
Plants, the installation of additional machinery to
achieve Zero Liquid Discharge are in progress. As
many as 6 Common Effluent Treatment Plants
have fully completed successfully. In the remaining
CETPs, 5 CETPs have achieved more than 90%, 3
CETPs have completed 80% and 3 CETPs have
completed 70% and the remaining one CETP has
completed 50% physical achievement of Zero
Liquid Discharge of effluents.

81
Present Status of Progress of Zero Liquid Discharge (ZLD) in 18 CETPs and amount so far
released
Sl. Name of the Interest Free Interest Free Physical Member Financial Consent to
No. CETP Loan sanctioned Loan disbursed target contribution Completion operate
by GoTN to CETPs Completion (Rs. in Crore) permitted
(Rs. in Crore) (Rs. in Crore) by TNPCB
100% 4.12
1. Arulpuram 11.33 11.33 120% 90%
100% 2.36
2. Park 4.75 4.75 112% 90%
8.32 8.32 100% 5.95
3. Mannarai 137% 60%
Siru
4. 11.94 11.12 100% 8.16 113% 50%
pooluvapatti
5. Veerapandi 23.14 21.31 100% 10.21 108% 60%

6. Kallikadu 4.87 4.87 100% 1.31 93% 50%

7. Karaipudur 12.84 12.83 95% 5.23 92% 70%

8. Eastern 11.09 9.44 95% 4.85 113% 75%

Andi
9. 6.35 4.59 95% 2.58 104% 30%
palayam

82
Sl. Name of the Interest Free Interest Free Physical Member Financial Consent to
No. CETP Loan sanctioned Loan disbursed target contribution Completion operate
by GoTN to CETPs Completion (Rs. in Crore) permitted
(Rs. in Crore) (Rs. in Crore) by TNPCB
Kasi
10. 9.06 7.24 90% 1.76 62% 80%
palayam

11. Rayapuram 11.33 9.54 90% 2.72 68% 50%

12. Mangalam 8.90 7.06 85% 3.08 84% 30%

13. Chinnakarai 16.47 12.21 85% 2.42 65% 50%

Angeri
14. 18.10 15.24 80% 10.85 101% 40%
palayam
Vettuva
15. 3.31 1.74 75% 1.54 81% 15%
palayam
Murugam
16. 22.65 15.52 70% 4.32 63% 50%
palayam
Kunnangal
17. 11.32 9.05 70% 1.58 61% 50%
palayam
S.Periya
18. 7.52 2.18 50% 0.79 33% 15%
palayam

Total 203.29 168.34 73.83

83
 Filtration section at Arulpuram CETP

Ultra-Filtration section at Arulpuram CETP

84
5.5 Integrated Processing Development
Scheme

The Hon’ble Chief Minister of Tamil Nadu

announced a scheme in the floor of the Legislative
Assembly for the rehabilitation of micro, small,
medium scale textile bleaching, dyeing and its
allied units in the districts of Namakkal, Erode,
Salem and Karur on 11.08.2014. This scheme will
serve the needs of the textile units that have been
closed for a very long time or facing threat of
closure, due to discharge of effluents without
treatment into the rivers, other watercourses and
agricultural lands in the region and causing
pollution in water, soil and atmosphere.

The Tamil Nadu Water Investment Company

Limited (TWIC) was appointed as consultant to
prepare the Diagnostic Study and Feasibility
Reports (DSFR) and Detailed Project Reports
(DPR) for the above projects. The Director of
Handlooms and Textiles has been nominated as

85
Nodal Officer for implementation of the above
scheme.
In order to implement the project, The Tamil
Nadu Infrastructure Development Board has so far
released a sum of Rs.4.96 crore from the Project
Preparation Fund to carry out the Diagnostic Study
and Feasibility Report (Rs.92 lakh) and for Detailed
Project Report (Rs.4.04 crore) to Tamil Nadu
Water Investment Company Limited.

The Tamil Nadu Water Investment

Company Limited (TWIC) had identified 1900
Textile units which were engaged in dyeing and
bleaching activities in the following 12 clusters in
these four Districts.

S. No. of Dyeing
No. Name of the Cluster and Bleaching
Units
ERODE DISTRICT

1 Kadayampatti Cluster 59

2 Bhavani Cluster 82

3 Perundurai Cluster 44

86
S. No. of Dyeing
No. Name of the Cluster and Bleaching
Units
4 Erode Taluk Cluster 549

5 Chennimalai Cluster 33
NAMAKKAL DISTRICT

6 Kumarapalayam Cluster–I 158

7 Pallipalayam Cluster 150
8 Kumarapalayam Cluster-II 132
9 Rasipuram Cluster 22
KARUR DISTRICT

10 Existing CETPs – 8 Nos. 238

(under closure)
SALEM DISTRICT

11 Salem Cluster 283

12 Edappadi Cluster 150
Total 1,900

The Tamil Nadu Water Investment Company

Limited (TWIC) has undertaken door to door
survey of these 1900 units and submitted
Diagnostic Study and Feasibility Reports and

87
Detailed Project Reports of the Erode and
Namakkal Districts.

The Government of India have approved the

Detailed project report of Kadayampatti Common
Effluent Treatment Plant (CETP) in Erode District at
a Project cost of Rs.160 crore.

The detailed project reports for Sri Bhavani

Dyeing Cluster in Erode District, Green
Environmental Association in Namakkal District
and Southern District Textile Processing Cluster in
Virudhunagar District were submitted to the
Government of India at a Project cost of Rs.92.21
crore, Rs.157.39 crore and Rs.151.86 crore
respectively and in-principle approval for Sri
Bhavani Dyeing Cluster and Southern District
Textile Processing Cluster have been accorded by
the Government of India.

5.6 Scheme of Integrated Textile Parks

The Government of India have introduced
“Scheme for Integrated Textile Park (SITP)” in the
88
year 2005 by merging two existing schemes viz.,
Apparel Park for Export Scheme (APES) and Textile
Centre Infrastructure Development Scheme
(TCIDS) so as to provide the textile industry with
world-class infrastructural facilities at one place.
The scheme would create new Textile parks
of International standards at potential growth
centres. The scheme envisages Public Private
Partnership mode with Government of India
assistance of 40% of the project cost, subject to a
maximum of Rs.40.00 crore as grant. The
Government of Tamil Nadu also provides 9% of the
project cost subject to a maximum of Rs.9.00
crore, as grant. The Department also assists the
entrepreneur / Special Purpose Vehicle in getting
various clearances and providing 50% concession
on stamp duty in land registration.

The Government of India have approved 8

Textile Parks under the Scheme of Integrated
Textile Parks for Tamil Nadu. The details of Textile
Parks sanctioned in Tamil Nadu are given below:-
89
Sl . Name of the Year of Project Central State Direct /
No. Project Sanction Cost Govt Govt Indirect
Grant Grant Employment Remarks
(No. of
persons)
(Rs. In crore)
Project: Manufacturing of cotton cloth
on shuttleless looms, garmenting and
Hi-Tech Weaving madeups.
1 Park at Palladam, 2006 55.42 22.17 4.98 6,000
Status:
Tiruppur District
Construction fully completed and all 90
units are fully operational.
Hi-Tech Weaving Project: Spinning, Weaving Warping
Park at Kumara and Sizing.
2 palayam, 2006 34.82 13.93 3.13 3,000 Status:
Namakkal Out of the 56 units 52 units are
District operational.
Project: Composite park comprising of
Madurai Weaving, Processing & Garmenting.
3 integrated Textile 2007 78.76 31.50 7.08 8,500 Status:
Park Vadipatti Construction fully completed and all the
18 units are fully operational.
Project: Weaving madeup for Home
Integrated Textiles.
Textile Park at 7,000
4 2007 116.10 40.00 9.00 Status:
Karur, Karur
District Construction fully completed and all the
35 units are fully operational.

90
Sl . Name of the Year of Project Central State Direct /
No. Project Sanction Cost Govt Govt Indirect
Grant Grant Employment Remarks
(No. of
persons)
(Rs. In crore)
Project: Weaving, Processing, Dyeing
GILT Integrated and Automated bed linen
textile Park at
5 2006 149.45 40.00 9.00 12,500 Status:
Chengapalli,
Tiruppur District At present, out of the 20 units 5 units
are operational.
Project: Processing of Woven, Knitted
fabric and Yarn.
Status:
SIMA Processing  The infrastructure works such as site
Park at development, internal roads and
6 Cuddalore, 2007 111.60 40.00 9.00 15,000
 Marine Outfall pipeline laying work
drainage works are completed
Cuddalore
District
 Arrangements
completed.
being made for
temporary and permanent supply of
water.
Perarignar Anna Project: Silk Handloom Sarees
Handloom Silk Weaving, Silk Dyeing, Cotton Dyeing,
Park at
7 2010 83.83 33.53 7.54 10,000 Embroidery, Garmenting and Sizing.
Kilkathirpur,
Status:
Kancheepuram
District Construction will be commenced

91
Sl . Name of the Year of Project Central State Direct /
No. Project Sanction Cost Govt Govt Indirect
Grant Grant Employment Remarks
(No. of
persons)
(Rs. In crore)
shortly.

Project: Garmenting and Technical

Pallavada Textiles.
Technical Textile
5,300 Status:
 Government of India 1st installment
8 Park at 2011 106.27 40.00 9.00
Pallavada, Erode

 Construction work under progress.

District released.

736.25 261.13 58.73 67,300

TOTAL

92
5.7 Mini Textile Parks

Based on the Hon’ble Chief Minister’s

announcement under Rule 110 of Tamil Nadu
Legislative Assembly Rules on 01.09.2015,
Government orders have been issued approving
sanction of financial assistance to entrepreneurs
to set up Mini Textile Parks. Financial assistance
to the tune of 50% of project cost, subject to a
maximum ceiling of Rs.2.50 crore will be provided
to avail cost of infrastructural facilities. The
decision of Government has been disseminated to
the District Collectors and they have conducted
Meetings with the entrepreneurs for formation of
Mini Textile Park. Efforts are being taken to
identify the prospective entrepreneurs with
adequate facilities.

5.8 State Textile Advisory Committee

The Hon’ble Chief Minister under Rule 110

of the Tamil Nadu Legislative Assembly Rules
announced on the floor of the house on

93
01.09.2015 that to sustain and further strengthen
the prominent position of various sectors of
textile industry viz., Handloom, Powerloom,
Spinning, Knitting and Garment “State Textile
Advisory Committee” will be formed.

Accordingly, Government issued G.O.No.3

(Handlooms, Handicrafts, Textiles and Khadi
Department) dated: 05.01.2016 by constituting
State Textile Advisory Committee under the
Chairmanship of the Hon’ble Minister for
Handlooms and Textiles with various stakeholders
of Handloom, Powerloom, Spinning, Weaving,
Knitting and Garment sector as members.

The primary objective of the Committee is

to give suggestions to the Government for the
improvement of textile industry in the State. The
Committee is an advisory body for the textile
industry, will meet periodically once in 3 months
(or) as and when necessary to discuss and

94
address the issues of the textiles industry in the
State to enable its growth and development.

The second State Textile Advisory

Committee meeting has been conducted on
15.06.2017 under the chairmanship of Hon’ble
Minister for Handlooms and Textiles with various
Textile industry stakeholders such as Handlooms,
Powerlooms, Spinning, Knitting and Garment
sectors. Efforts are being taken to improve the
textile industry and its allied industries based on
their representations.

5.9 Technical Textiles

Technical Textile is a sunrise segment of

the Textile sector, offering a lot of opportunities
for domestic utilization of technical textiles as well
as exports.

Technical Textile focuses on 12 application

areas: viz., Agrotech, Buildtech, Clothtech,
Geotech, Hometech, Indutech, Meditech,

95
Mobiltech, Oekotech, Packtech, Protech, and
Sporttech.

As per the announcement made by the

Hon’ble Minister for Handlooms and Textiles on
the floor of the Assembly on 29.06.2017, an
amount of Rs.25.00 lakh has been sanctioned to
develop the Technical Textiles wing in Tamil Nadu
in association with Sardar Vallabhbhai Patel
International School of Textiles and Management,
Coimbatore in order to provide training to the
entrepreneurs on Technical Textiles. The
programme is planned to be carried out in three
phases. PHASE-I: Pilot Program on Technical
Textiles, PHASE-II: Development of Business Plan
and PHASE-III: Execution of Business Plan.

As part of Phase-I, a two-day Workshop on

“Technical Textiles” was inaugurated on
10.03.2018 by the Hon’ble Minister for
Handlooms and Textiles and presided by the
Hon’ble Minister for Municipal Administration,
Rural Development and Special Programme
96
Implementation at the Sardar Vallabhai Patel
International School of Textiles and Management
(SVPISTM), Coimbatore.

97
 The sectoral training planned in the Phase–I
programme aims to focus on 3 major areas such
as Medi-Tech, Indu-Tech and Pack-Tech owing to
their potential and growth opportunities.

Promotion of Technical Textiles will pave

the way for tapping the unexplored area in the
textile value chain.

Action Plan for 2018-2019

During the year 2018-2019, Industrial visit

to Technical Textile manufacturing unit, exposure
visits to other states Centre of Excellence (CoE),
Market study and analysis, Investors meet,
Buyer-seller meet, etc., would be organised to
promote Technical Textiles.

5.10 PowerTex India (Comprehensive

Scheme for Powerloom Sector
Development)

Taking into consideration of the various

socio-economic problems faced by the powerloom
weavers and the low technology levels in the

98
sector, the Government of India introduced the
Integrated Scheme for Powerloom Sector
Development (ISPSD) was launched during 11th
Five Year Plan and it was extended with additional
components in the name of PowerTex India
during 12th Five Year Plan. The scheme is highly
beneficial to the decentralized powerloom sector.
This scheme is being implemented for 3 years
from 01.04.2017 to 31.03.2020.

Under the “In-situ Upgradation of Plain

Powerlooms“ financial assistance of Rs.20,000/-
to Rs.81,000/- is being provided for upgrading
existing powerlooms to semi-automatic/
shuttleless Rapier loom. Under this Scheme, as
many as 4489 Powerlooms in Tamil Nadu have
been upgraded.

Interest free corpus fund of maximum

Rs.2 crore per Yarn bank is being provided under
Yarn Bank Scheme to Special Purpose Vehicle
(SPV) / Consortium to purchase yarn at
wholesale rate. Under this scheme, Erode
99
Powerloom Weavers Co-operative Society,
Veerappanchatram Powerloom Weavers
Co-operative Society and Siragirivelavan
Powerloom Weavers Co-operative Society in
Erode circle have set up Yarn Banks and issue
yarn to weavers through the Yarn Banks.
Under the Solar Energy Scheme for
Powerlooms, financial assistance/capital subsidy
in the range of Rs.2.25 lakh to 8.55 lakh is being
provided for installation of On Grid Solar Photo
Voltaic Plant (without Battery back up) and Off
Grid Solar Photo Voltaic Plant (with Battery back-
up) by small powerloom units.

Insurance coverage to the Powerloom

weavers/workers upto Rs.2 lakh in case of
natural death, Rs.2 lakh for accidental death and
upto Rs.2 lakh for partial/permanent disability
due to accident is being provided under
Converged group Insurance Scheme. As many as
57,100 powerloom weavers/workers in Tamil
Nadu have been enrolled under this scheme.
100
Tamil Nadu holds the No.1 position in the Country
by enrolling more number of beneficiaries under
this scheme.

5.11 Implementation of Handlooms

(Reservation of Articles for Production)
Act,1985

The Government of India have enacted the

Handlooms (Reservation of Articles for
Production) Act, 1985 and implemented by the
State Governments through the Director of
Handlooms of the respective State Government
and is aimed at establishing Enforcement
Machinery in the States to ensure that the
powerloom adhere to the Act and to protect the
handloom weavers and handloom industry from
the powerloom sector, and rich cultural heritage
attached with the handloom industry of the
country.
The Government of Tamil Nadu have been
enforcing the above Act by the Directorate of
Handlooms and Textiles and formed a separate
101
Enforcement machinery headed by the Deputy
Director/Enforcement Officer with Headquarters
at Chennai and 5 subsidiary offices at Salem,
Tiruchengode, Erode, Tiruppur and Madurai by
the Assistant Enforcement Officers as per the
powers given by the Government of India to
enforce this act.
While introducing the above Act in 1985 by
the Government of India, 22 varieties had been
reserved for Handlooms under this Act. Only from
3rd September 2008 onwards, 11 varieties were
exclusively reserved by the Government of India
for Handlooms.

(1) Saree (2) Dhoty

(3) Towel/Gamcha and (4) Lungi
Angavastram
(5) Chaddar Mekhala/ (6) Jamakkalam/Durry
Phanek or Durret
(7) Dress Material (8) Barrack Blanket,
Kambal or Kamblies
(9) Shawl, Loi, Muffler, (10) Woollen Tweed
Pankhi etc.
(11) Khes/Bedsheet/Bedcover/Counterpane/
Furnishing (including tapestry, upholstery)

102
 To propagate the provisions of Handlooms
(Reservation of Articles for Production) Act, 1985
among the powerloom weavers/workers in the
powerloom concentrated areas awareness
campaigns have been conducted. Inspections are
being carried out continuously in powerloom
concentrated areas and FIRs filed against the
violators.

The details of powerlooms inspected, FIRs

filed, No. of cases convicted and awareness
campaigns conducted under Handlooms
(Reservation of Articles for Production) Act, 1985
during 2017-2018 are as under.

103
 Target for inspection of

No. of FIRs filed 2017-

No. of cases convicted

powerlooms 2017-18

campaigns conducted
Proportionate target

(including last year

No. of powerlooms

No .of participants
No.of awareness
pending cases)
inspected
Sl. Name of the

18
No Region

1. Chennai 744 744 782 1 1 1 25

2. Erode 16,272 16,272 16,849 12 15 22 979

3. Madurai 8,400 8,400 9,789 31 22 14 458

4. Salem 12,720 12,720 13,005 7 15 24 870

5. Tiruchengode 16,032 16,032 16,640 14 22 25 730

6. Tiruppur 14,940 14,940 15,208 9 9 24 542

TOTAL 69,108 69,108 72,273 74 84 110 3604

104
6 WELFARE SCHEMES IMPLEMENTED BY
THE DEPARTMENT

6.1 Tamil Nadu Co-operative Handloom

Weavers Savings and Security Scheme

In order to encourage the savings habit

among the weavers thereby ensuring the security
of their future, the Government is implementing
the Tamil Nadu Co-operative Handloom Weavers’
Savings and Security Scheme (SSS) from the
year 1975. The weaver members in the Handloom
Weavers Co-operative Societies are enrolled as
members in the Savings and Security Scheme.
The enrolled members of this scheme contribute
8 paise per rupee of wages earned by them
through the Society to the Scheme fund and the
State Government also contributes a matching
share of 8 paise per rupee of wages earned by
the weaver.

The contribution of the weavers and the

matching contribution of the Government are
deposited in the Tamil Nadu Co-operative
Handloom Weavers Savings and Security Scheme
Fund Account with the Government.

105
 The Government of Tamil Nadu provides
9.50% interest on the deposits in this scheme
account. Out of which, 6.50% of interest is
deposited in the scheme fund account and
credited against the weavers’ scheme fund
account concerned and the balance 3% of interest
is utilized for the implementation of Tamil Nadu
Co-operative Handloom Weavers’ Old Age Pension
Scheme and Tamil Nadu Co-operative Handloom
Weavers’ Family Pension Scheme.

Number of weavers at the end of the year under

Savings and Security Scheme

106
 As many as 62,519 weavers are enrolled as
members under the Savings and Security Scheme
and contributing to the scheme fund. The State
Government have sanctioned an amount of
Rs.11.74 crore in the year 2017-2018 towards
State contribution against the weavers’
contribution remitted in the year 2016-2017. As
on 31.03.2018, a corpus of Rs.344.76 crore is
available in the Savings and Security Scheme
fund deposit account with the Government.

The State Government have also sanctioned

an amount of Rs.30.68 crore in the year
2017-2018 towards 9.50% interest on the
deposits in the Tamil Nadu Co-operative
Handloom Weavers Savings and Security Scheme
Fund Account.

Further, as announced by the Hon’ble

Minister for Handlooms and Textiles, on the floor
of Assembly on 29.06.2017, while moving the
demands of Handlooms and Textiles Department,
the Government have amended the Savings and
107
Security Scheme Rules by relaxing the condition
for partial withdrawal from the scheme fund from
minimum 10 years to 5 years. This would benefit
the 62,519 members in the Scheme.

This scheme will be continued during the

year 2018-2019, for which, a sum of Rs.12 crore
has been allotted in the Budget Estimate towards
State contribution and an amount of Rs.28 crore
has been allocated towards 9.5% interest
provided under the scheme.

6.2 Tamil Nadu Co-operative Handloom

Weavers’ Old Age Pension Scheme

The Government of Tamil Nadu introduced

the Tamil Nadu Co-operative Handloom Weavers’
Old Age Pension Scheme in the year 1997 with a
view to assist the handloom weavers in their old
age. Old Age Pension is sanctioned to the weaver
members of the Handloom Weavers Co-operative
Societies who are enrolled under Savings and
Security Scheme, on attaining the age of 60

108
years. The Government have enhanced the Old
Age Pension of handloom weavers from Rs.400/-
per month to Rs.1,000/- per month with effect
from 01.01.2012. Out of which, Rs.800/- is paid
from the Government account and the balance
amount of Rs.200/- is paid from the 3% interest
amount provided by the Government for the
Savings and Security Scheme.

The Government have sanctioned a sum of

Rs.29.08 crore in the year 2017-2018 towards
payment of Old Age Pension to 23,718 Handloom
Weavers. Out of which, an amount of Rs.23.19
crore has been sanctioned from the Government
account and the balance amount of Rs.5.89 crore
is sanctioned from the 3% interest account of the
Savings and Security Scheme Fund.

109
 Number of beneficiaries under Old Age Pension
Scheme

This scheme will be continued during the

year 2018-2019. Under the Old Age Pension
Scheme and Family Pension Scheme, a sum of
Rs.25 crore has been allotted in the Budget
Estimate for the year 2018-2019.

6.3 Tamil Nadu Co-operative Handloom

Weavers’ Family Pension Scheme

The Government of Tamil Nadu introduced

the Tamil Nadu Co-operative Handloom Weavers’
Family Pension Scheme in the year 1992, so as to
110
alleviate the hardships faced by the family of the
handloom weavers in the event of demise of the
weaver who is the breadwinner of the family.
Accordingly, Family Pension is being sanctioned to
the nominee of the Co-operative handloom
weaver, enrolled under Savings and Security
Scheme, in the event of death of the weaver
before attaining the age of 60 years. The Family
Pension is provided for a period of 10 years or
upto the age of 60 years of the deceased weaver
(if he would have been alive), whichever is
beneficial to the weaver’s family. The Government
have enhanced the Family Pension of handloom
weavers from Rs.550/- per month to Rs.1,000/-
per month with effect from 01.01.2012. Out of
which, Rs.650/- is paid from the Government
account and the balance amount of Rs.350/- is
paid from the 3% interest amount sanctioned by
the Government for the Savings and Security
Scheme.

111
 The Government have sanctioned a sum of
Rs.1.79 crore in the year 2017-2018 towards
payment of Family Pension to the families of
1,477 handloom weavers. Out of which, an
amount of Rs.1.15 crore has been sanctioned
from the Government account and the balance
amount of Rs.0.64 crore is sanctioned from the
3% interest account of the Savings and Security
Scheme Fund. This scheme will be continued
during the year 2018-2019.

Number of beneficiaries under Family Pension

Scheme

112
6.4 Health Insurance Scheme for
Handloom Weavers under Rashtriya
Swasthiya Bima Yojana (RSBY)
Platform

In order to ensure enhanced health

insurance coverage to handloom weavers and
their families, so as to meet out their medical
expenses and to improve their health conditions,
the Health Insurance Scheme for Handloom
Weavers on Rashtriya Swasthya Bima Yojana
(RSBY) platform has been implemented in Tamil
Nadu, with effect from 01.10.2014 through United
India Insurance Co. Ltd. Under this scheme, 5
family members of an enrolled weaver shall avail
medical benefits upto Rs.37,500/- per annum. Of
which, in-patient treatment facilities shall be
availed upto Rs.30,000/- and out-patient
treatment facilities upto Rs.7500/-.

In Tamil Nadu, as many as 1,44,294

weavers’ families have been enrolled as
beneficiaries under the scheme and 221 hospitals

113
in the State have been empanelled to avail
medical benefits. Bio-metric smart cards with
family details have been issued to the enrolled
beneficiaries and using this card they are availing
cashless treatment facilities from the empanelled
hospitals.

The premium payable to the Insurer under

this scheme is Rs.179/- per family per annum. Of
which, Rs.107.40 (60%) is borne by the
Government of India and the balance amount of
Rs.71.60 (40%) is borne by the State
Government. In addition, the registration /
renewal fee of Rs.30/- to be paid by the
beneficiary is also paid by the Government of
Tamil Nadu on behalf of the weavers.

The Health Insurance Scheme for Handloom

Weavers on RSBY platform has been implemented
in the State upto 31.03.2017 and subsequently,

114
the Government of India have been requested for
extension of the scheme.

Meanwhile, the Hon’ble Union Finance

Minister in his Budget 2018-19 Speech delivered
on 01.02.2018 announced that the Government
of India would launch a flagship “National Health
Protection Scheme” to cover over 10 crore the
poor and vulnerable families (approximately 50
crore beneficiaries) providing coverage upto 5
lakh rupees per family per year for secondary and
tertiary care hospitalization. The proposed
National Health Protection Scheme is likely to be
launched by the Government of India on 15th
August, 2018 or by 2nd October, 2018, in view of
Independence Day or Gandhi Jayanti,
respectively.

The Government of India and the

Government of Tamil Nadu are working on
bringing in the handloom weavers under the
proposed National Health Protection Scheme, so
115
as to provide health protection to weavers’
families with enhanced coverage. Upon release of
guidelines of the National Health Protection
Scheme by the Government of India, appropriate
decision will be taken by the Government and
health insurance coverage will be continued to the
handloom weavers in the State.

A provision of Rs.1.50 crore has been made

in the Budget Estimate for the year 2018-2019
for this scheme.

6.5 Pradhan Mantri Jeevan Jyoti Bima

Yojana, Pradhan Mantri Suraksha Bima
Yojana and Mahatma Gandhi Bunkar
Bima Yojana

6.5.1 Insurance Scheme for Handloom Weavers

Life insurance coverage and disability

coverage for handloom weavers and ancillary
workers have been provided by the Government
of Tamil Nadu from the year 2004-2005 under
“Mahatma Gandhi Bunkar Bima Yojana (MGBBY)”,
with assistance from the Government of India,
116
through Life Insurance Corporation of India. The
handloom weavers under co-operative and
outside co-operative fold and ancillary workers in
the age group of 18 to 59 years are enrolled as
beneficiaries under the scheme. The annual
premium of Rs.330/- per beneficiary per annum
payable to LIC of India is shared by the
Government of India and the Government of
Tamil Nadu. This scheme has been implemented
upto 31.05.2017.

The MGBBY is now converged with Pradhan

Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and
Pradhan Mantri Suraksha Bima Yojana (PMSBY),
with effect from 01.06.2017, so as to provide
enhanced insurance coverage to the handloom
weavers. The above three schemes are
implemented through LIC of India.

a) Weavers in the Age Group of 18 to 50

Years

The handloom weavers under co-operative

fold and outside co-operative fold and ancillary
117
workers in the age group of 18 to 50 years are
enrolled under both PMJJBY and PMSBY. The
premium structure and benefits provided under
these two schemes are as follows:-
Premium Structure

Annual Premium (in

Details Rupees)
PMJJBY PMSBY TOTAL
Government of India’s
150 12 162
contribution
Government of Tamil
Nadu’s contribution of 80 -- 80
behalf of weavers
LIC of India-
100 -- 100
contribution
TOTAL 330 12 342

The weaver’s contribution of Rs.80/- per

weaver per annum under PMJJBY is paid to LIC of
India by the Government of Tamil Nadu on behalf
of the weavers.

Benefits Offered
(i) PMJJBY
On death due to any reason:
Rs.2,00,000/-
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 (ii) PMSBY
Benefits
Details
(in Rupees)
On death due to accident 2,00,000
On permanent total
2,00,000
disability due to accident
On partial permanent
1,00,000
disability due to accident

The weavers / nominee of weavers are

provided with enhanced life insurance coverage
upto Rs.2,00,000/- and accidental disability
coverage upto Rs.2,00,000/-, under the PMJJBY
and PMSBY.

b) Weavers in the Age Group of 51 to 59

Years
The handloom weavers and ancillary
workers in the age group of 51 to 59 years who
are not eligible to enrol under PMJJBY and PMSBY
are enrolled under MGBBY for the insurance
coverage. The premium structure and benefits
offered to this group of weavers under MGBBY are
as follows:-

119
Premium Structure

MGBBY – Annual
Details Premium
(Rupees)
Government of India contribution 290
Government of Tamil Nadu
80
contribution of behalf of weaver
LIC of India contribution 100
TOTAL 470

Similar to PMJJBY, the weaver’s contribution

of Rs.80/- per weaver per annum under MGBBY is
also borne by the Government of Tamil Nadu on
behalf of the weavers.
Benefits Offered

MGBBY – Benefits
Details
(in Rupees)
Accidental Death 1,50,000
Natural Death 60,000
Total Disability 1,50,000
Partial Disability 75,000

The weavers / nominee of weavers covered

under MGBBY are provided life insurance
coverage and accidental disability coverage upto
Rs.1,50,000/-.
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 The policy period of all the three schemes
namely, PMJJBY, PMSBY and MGBBY is from 01st
June of every year to 31st May of succeeding year
and is renewable every year.
In Tamil Nadu, during the policy year
2017-2018, as many as 77,944 weavers in the
age group of 18 to 50 years are enrolled under
PMJJBY and PMSBY and 47,520 weavers in the
age group of 51 to 59 years are enrolled under
MGBBY. Accordingly, a total of 1,25,464
handloom weavers and ancillary workers in Tamil
Nadu are provided with enhanced life insurance
coverage and accidental disability coverage.

The Government of Tamil Nadu have

sanctioned Rs.1,00,37,120/- towards State share
of premium for the policy year 2017-2018 on
behalf of 1,25,464 beneficiaries. During the year
2017-2018, as many as 315 death claims have
been settled and insurance amount to the tune of

121
Rs.2.01 crore has been paid to the beneficiaries
by LIC of India.

In addition to the above, Co-optex is

providing a Weaver’s Welfare Scheme amount of
Rs.25,000/- to the family of deceased weavers
under co-operative fold. During the year
2017-2018, Co-optex have released a sum of
Rs.71.75 lakh to 287 families of deceased
weavers under this scheme.
These schemes will be continued during the
year 2018-2019, for which, a sum of Rs.1.50
crore has been allotted to pay the State share of
premium on behalf of weavers.

6.5.2. Scholarship under Shiksha Sahyog

Yojana

Scholarship under Shiksha Sahyog Yojana

(SSY) is being provided to two children of
weavers who are enrolled under MGBBY, at the
rate of Rs.1200/- per child per annum (Rs.600/-
in two installments) studying from 9th standard to

122
12th standard for a maximum period of four years
or till they complete 12th standard.

During the year 2017-2018, as many as

20,824 students have been benefitted under
Shiksha Sahyog Yojana and scholarship amount
of Rs.1.25 crore have been disbursed to the
beneficiaries.

6.6 Weaver MUDRA Scheme

In order to provide concessional credit to
handloom sector towards working capital and cost
of tools and equipment required for carrying out
weaving / allied activity, the Weaver MUDRA
Scheme of the Government of India is being
implemented in Tamil Nadu from June 2016
onwards, in place of erstwhile Weavers Credit
Card Scheme.
Under this scheme, a minimum loan of
Rs.50,000 for cotton loom with the maximum of
Rs.5,00,000 and for silk loom, a minimum of
Rs.1,00,000 to a maximum of Rs.5,00,000 are

123
provided to handloom weavers through banks at
an interest rate of 6% per annum. The
Government of India also provides margin money
assistance at 20% of loan amount, with a
maximum of Rs.10,000. The difference between
the actual rate of interest charged by the banks
and 6% borne by the weavers is provided by the
Government of India as interest subvention,
limiting to 7%. In addition, Credit Guarantee for
all loan accounts will be provided by the
Government of India under Credit Guarantee
Trust fund for Micro and Small Enterprises
(CGTMSE).
During the year 2017-2018, it was
proposed to cover 15,000 handloom weavers in
Tamil Nadu under Weaver MUDRA Scheme. With
the concerted efforts and continuous follow-up by
the Department, the State have achieved
disbursing 18,488 MUDRA loans to the tune of
Rs.90.12 crore in the year 2017-2018, which is

124
higher than the disbursement of 17,031 loans to
the tune of Rs.82.38 crore in the year 2016-2017.

Distribution of MUDRA loans by the Hon’ble Minister

for Handlooms and Textiles at Coimbatore

The circle-wise performance of Weaver

MUDRA Scheme during the year 2017-2018 is as
follows:-
Loan amount
Sl. No. of MUDRA disbursed
Circle
No. loans disbursed (Rs. In lakh)

1 Coimbatore 1,109 554.50

2 Tirunelveli 500 241.05
3 Thiruvannamalai 1,323 661.50
4 Dindigul 1,201 590.50

125
 Loan amount
Sl. No. of MUDRA disbursed
Circle
No. loans disbursed (Rs. In lakh)

5 Madurai 466 233.00

6 Vellore 633 316.50
7 Tiruvarur 108 54.00
8 Salem 1,172 399.11
9 Paramakudi 1,013 506.50
10 Tiruppur 1,013 506.50
11 Virudhunagar 1,734 867.00
12 Kancheepuram 1,607 803.50
13 Erode 2,141 1070.50
14 Kumbakonam 1,404 702.00
15 Cuddalore 512 256.00
16 Trichirappalli 401 200.50
17 Nagercoil 530 265.00
18 Tiruchengode 915 456.00
19 Karur 625 287.75
20 Thiruvallur 81 40.50
TOTAL 18,488 9011.91

126
 100
82.38
80
90.12
Rs. in crore
70.28
60 56.54
40 42.32

20

0
2013-14 2014-15 2015-16 2016-17 2017-18

Disbursement of Weavers Credit /

Weavers MUDRA Loans in 5 years

Tamil Nadu holds the first place in the

country in the implementation of Weaver MUDRA
Scheme during the years 2016-2017 as well as in
2017-2018.

6.7 Web-based Common Accounting

System for Primary Handloom Weavers
Co-operative Societies
The Government of India and the
Government of Tamil Nadu have jointly
implemented the “Revival, Reforms and
Restructuring (RRR) Package for Handloom
Sector” in Tamil Nadu from the year 2012-2013.
Under this scheme, recapitalization assistance of
127
Rs.147.71 crore has been released to 718
Primary Handloom Weavers’ Co-operative
Societies, Co-optex and 520 Individual Weavers.
Of which, Rs.116.31 crore is provided by the
Government of India and Rs.31.40 crore is
provided by the Government of Tamil Nadu.
Apart from the recapitalization assistance,
the Government of India also provided an amount
of Rs.430.80 lakh to 718 Primary Handloom
Weavers’ Co-operative Societies towards
purchase of computers and accessories and
Common Accounting Software at the rate of
Rs.60,000/- per Society. Accordingly, 718
computers and accessories have been purchased
and supplied to the Primary Handloom Weavers’
Co-operative Societies concerned. Further, 166
Computers and accessories were also purchased
by availing Interest Free Loan from Tamil Nadu
Co-operative Union, for 166 Handloom Weavers
Co-operative Societies which were not covered
under RRR Package.

128
 In order to ensure more transparency,
uniformity and accuracy in all the Primary
Handloom Weavers’ Co-operative Societies in the
State, a Web-based Common Accounting
Software has been developed in consultation with
Tamil Nadu e-Governance Agency (TNeGA). The
Common Accounting Software will be a complete
package as an end-to-end solution for the entire
functioning of the Society covering society details,
member details with bio-metric fingerprints, raw
material purchase, dyeing, issue of raw materials
and receipt of finished goods with bio-metric
authentication, raw material stock, appraiser
ticket, pricing, sales management with bar-coding
systems for billing, finished goods stock
inventory, sales linked schemes, welfare
schemes, accounts, MIS, etc. The Web-based
Common Accounting Software is also an online
application for real time functioning and
monitoring.

129
 The pilot run of the software has been
initially rolled out in five Handloom Weaver’s Co-
operative Societies in the categories of silk,
cotton, cotton-cum-silk and an Industrial Society.
The third party Security Audit of the Common
Accounting Software has been completed by an
empanelled organisation through Tamil Nadu e-
Governance Agency.

The domain name of the Web Based

Common Accounting Software has been
registered through NIC, Chennai and SSL
Certification for the same has been obtained
through ELCOT for secure access. The secured
domain address of the Common Accounting
Software is “https://handtexcas.tn.gov.in”.
Theoretical and hands-on-training on using CAS
have been given to the Departmental Staff and
Society Staff. Further, user manual in English and
Tamil have been prepared and provided to all the
users for ready reference.

130
 As advised by ELCOT, the software has
been initially hosted on the CLOUD Environment
of Tamil Nadu State Data Centre (TNSDC) and
rolled out in 1048 Handloom Weavers Co-
operative Societies. So far, 58 societies have
updated their accounts. Remaining societies will
update by September 2018.

As a whole, the Common Accounting

Software will act as a catalyst in efficient and
effective functioning of Handloom Weavers Co-
operative Societies in the State and for better
analysis, implementation, monitoring and control
of Government schemes.

6.8 Tamil Nadu Handloom and Handloom

Silk Weaving Workers’ Board

To ensure the welfare of weaving

community, Tamil Nadu Manual Workers’ Board
and 9 other Welfare Boards including Tamil Nadu
Handloom and Handloom Silk Weaving Workers’
Welfare Board were established in the year

131
2000-01. The Tamil Nadu Handloom and
Handloom Silk Weaving Workers’ Welfare Board
was merged with the Manual Workers’ Board with
effect from 21.07.2004. Subsequently, this board
has been functioning separately under the control
of the Labour Department since 01.09.2006
based on the orders issued by the Government.

The Hon’ble Minister for Handlooms and

Textiles is the Chairman of the Board. Seven
Government representatives, seven employers’
representatives and six workers’ representatives
were appointed as members of the Board.
Financial assistance, educational assistance,
Insurance coverage for natural and accidental
death and disability are being provided by this
Board. The details are as follows:-

132
 Financial
assistance
Sl. provided per
Details
No. weaver
members
(Rs.)
1. Accident Insurance Scheme
i Accidental Death 1,00,000
ii Accidental Disability Upto 1,00,000
(Based on extent of disability)
iii Artificial limbs and Wheel chair
2. Natural Death Assistance 15,000
3. Funeral Expenses Assistance 2,000
4. Educational Assistance
i Girl Children studying 10th 1,000
th
ii 10 Passed 1,000
th
iii Girl Children studying 11 1,000
iv Girl Children studying 12th 1,500
th
v 12 Passed 1,500
vi Regular degree course 1,500
vii Regular degree course with 1,750
hostel facility
viii Regular Post Graduate course 4,000
ix Regular Post Graduate course 5,000
with hostel facility
x Professional Degree course 4,000
xi Professional Degree course with 6,000
hostel facility
xii Professional P.G. course 6,000
xiii Professional P.G. course with 8,000

133
 Financial
assistance
Sl. provided per
Details
No. weaver
members
(Rs.)
hostel facility
xiv I.T.I. or polytechnic course 1,000
xv I.T.I. or Polytechnic course with 1,200
hostel facility
5. Marriage Assistance
(i) Male 3,000
(ii) Female 5,000
6. Medical Assistance
i) Maternity Assistance 6,000
ii) Abortion 3,000
iii) Reimbursement of cost of Upto 500
spectacles
7. Pension 1,000
(per month)

So far, 2,81,843 weavers are enrolled in

this Board. Financial assistance to the tune of
Rs.75.56 crore has been disbursed to 2,84,572
weavers through this Board. During the year
2017-2018, financial assistance to the extent of

134
Rs.8.46 crore has been released to 17,430
beneficiaries.

6.9 Tamil Nadu Powerloom Weaving

Workers’ Welfare Board

In order to implement various welfare

schemes for the powerloom weaving workers,
the Government of Tamil Nadu have established
the “Tamil Nadu Powerloom Weaving Workers’
Welfare Board” under the Tamil Nadu Manual
Workers’ (Regulation of Employment and
Condition of Work) Act 1982. The Welfare Board
provides financial assistance such as accident
insurance benefit, insurance benefit for natural
death, assistance for funeral expenses,
assistance for education, marriage, maternity,
purchase of spectacles and pension benefit are
being provided to powerloom weaving workers.
So far, 1,60,918 powerloom weaving workers
have been enrolled in this board and financial
assistance to the tune of Rs.34.09 crore was

135
released for 1,35,847 beneficiaries upto
31.03.2018.

During the year 2017-2018, 2,353

powerloom weaving workers are newly enrolled
and financial assistance to the tune of Rs.4.71
crore has been disbursed to 13,184 beneficiaries.

6.10 Chief Minister’s Solar Powered Green

House Scheme for Weavers

As announced by the Hon’ble Chief Minister

of Tamil Nadu on the floor of Assembly on
08.05.2013 under Rule 110 of Tamil Nadu
Legislative Assembly, 10,000 Green Houses have
been constructed for weavers under the Chief
Minister’s Solar Powered Green Houses Scheme at
the total cost of Rs.260 crore. The Green Houses
of Handloom Weavers are constructed at a unit
cost of Rs.2.60 lakh (Rs.2.30 lakh for construction
and Rs.0.30 lakh for solar power) in an area of
365 Sq.ft. with living cum weaving hall,
accommodating the “handlooms” in their house,
so that weavers can weave at their home itself.
136
 The construction of all the 10,000 Green
Houses have been completed in co-ordination
with the Rural Development and Panchayat Raj
Department. The provision of Solar Home Lighting
System (SHLS) is the important component of the
Green House.

6.11 Awarding Scholarships under Dr. MGR

Handloom Weavers Welfare Trust

To encourage the wards of the weavers for

pursuing higher studies, Dr.MGR Handloom
Weavers Welfare Trust was constituted in the
year 1986. The scholarships are being provided to
two male and two female students every year,
who have secured first and second highest mark
in the state level of 10th and 12th Standard
Examinations.
Based on the marks secured in 10th and
12th Standard , scholarships are awarded to two
male and two female students in 33 disciplines,
till they complete the course. A total of 132

137
 students (66 male and 66 female) are getting
scholarship under this scheme every year.
The details of scholarship given under 33
disciplines are as indicated below:-
Sl. Discipline Educational Years Stipend for Stipend for
No. Qualification Candidate Candidate
who scored who scored
Highest second
Mark Highest
(in Rs.) Mark
(in Rs.)
1 M.B.B.S. +2 5 7,500 5,000
2 B.D.S. +2 5 7,500 5,000
3 B.V.Sc. +2 5 7,500 5,000
4 M.S. +2 5 7,500 5,000
(Information
Technology)
5 B.E. +2 4 7,500 5,000
6 B. Tech +2 4 7,500 5,000
7 B.Sc., +2 4 4,000 2,500
Agriculture/
Horticulture
8 B.Pharm. +2 4 4,000 2,500

9 B.Sc. +2 4 4,000 2,500

(Nursing)
10 M.E. B.E. 2 5,000 3,500
11 M.Tech. B.E./ B.Tech. 2 5,000 3,500
12 M.D. M.B.B.S 2 5,000 3,500
/B.D.S.
13 M.S. M.B.B.S/ 2 5,000 3,500
B.D.S.
14 M.Com. Graduate 2 5,000 3,500
15. M.A. Graduate 2 5,000 3,500
16. M.Sc. Graduate 2 5,000 3,500
17. M.B.A. Graduate 2 5,000 3,500

138
 Sl. Discipline Educational Years Stipend for Stipend for
No. Qualification Candidate Candidate
who scored who scored
Highest second
Mark Highest
(in Rs.) Mark
(in Rs.)
18. M.C.A. Graduate 2 5,000 3,500
19. B.A. +2 3 4,000 2,500
20. B.Sc. +2 3 4,000 2,500
21. B.Com. +2 3 4,000 2,500
22. B.B.A. +2 3 4,000 2,500
23. B.B.M. +2 3 4,000 2,500
24. B.C.A. +2 3 4,000 2,500
25. B.Sc. +2 3 4,000 2,500
(Computer
Science)
26. Polytechnic 10th 3 4,000 2,500
Standard
27. I.A.S./ I.P.S. Graduate 1 4,000 2,500
Bank Office
Exam
28. Hotel +2 3 4,000 2,500
Management
and Catering
Technology
29. Cost Graduate 3 4,000 2,500
Accounting
30. Diploma in +2 3 4,000 2,500
Handloom
Technology
31. Diploma in +2 2 4,000 2,500
Physiotherap
y
32. +2 Highest +2 1 4,000 2,500
Mark
33. 10th Highest 10th 1 4,000 2,500
Mark Standard

The scheme will be continued during the year

2018-2019.
139
6.12 Scholarships to the Wards of Workers
of Co-operative Spinning Mills and
Tamil Nadu Co-operative Textile
Processing Mills

This scheme provides scholarships to the

wards of workers of Co-operative Spinning Mills
and Tamil Nadu Co-operative Textile Processing
Mills and is being implemented from 2013-2014.
Under this scheme, the wards of the workers who
have secured first 3 places in 10th and 12th
standard are given scholarships of Rs.5,000/-,
Rs.3,000/-, Rs.2,000/- and Rs.10,000/-,
Rs.7,500/- Rs.5,000/- respectively at the Mill’s
level.
6.13 Stipend to Students of Indian Institute
of Handloom Technology, Salem

The wards of handloom weavers are being

encouraged to study Handloom and Textile
Technology in the Indian Institute of Handloom
Technology, Salem and priority is being given
while selecting candidates to the 3 year diploma
course. The Government of Tamil Nadu are also

140
providing stipend from the year 1977 to the
students admitted in the three years diploma
course in “Handloom and Textile Technology” in
the Indian Institute of Handloom Technology
detailed below:-

Stipend per 50% of 50% of TN

month / GOI Govt.
students share share
Year (per (per
month) month)
(Amount in Rupees)
I Year 1,000 500 500

II Year 1,100 550 550

III Year 1,200 600 600

The students are provided stipend and

contingency amount of Rs.1,000/- each per
annum for purchase of books. Apart from this,
educational tour allowance of Rs.1,000/- per
annum for the 2nd year students, and assistance
of Rs.500/- for project work for the 3rd year
students, are also being paid. This financial
assistance is provided by the Government of
141
Tamil Nadu from Co-operative Education Fund of
Tamil Nadu Co-operative Union.

The students studying in Indian Institute of

Handloom Technology in Gadag (Karnataka),
Venkatagiri (Andhra Pradesh) and Kannur
(Kerala) under Tamil Nadu Government quota are
also being paid stipend from Co-operative
Education Fund of Tamil Nadu Co-operative
Union.

During year 2017-2018, stipend to the tune

of Rs.8,48,000/- was provided to 107 students
studying 3 year Handloom and Textile Technology
diploma course at various Indian Institute of
Handloom Technology under Tamil Nadu
Government quota.

142
7 PROGRAMMES IMPLEMENTED BY THE
DEPARTMENT

7.1 National Award and National Merit

Certificate to Handloom Weavers and
Handloom Co-operative Societies

The Government of India is implementing a

scheme to provide “Handloom Weavers Award”
under National Handloom Development
Programme. Under this scheme the Government
of India has been conferring National Award and
National Merit Certificate to the Handloom
Weavers for their excellence in the field of
handloom sector as detailed below:-

(A) NATIONAL AWARD – National Award is

given to the extraordinary skilled
handloom weavers for their
craftsmanship in handloom weaving. This
award consist of a cash prize of
Rs.1,50,000/-, one tamrapatra, one
shawl and a certificate.

143
 (B) NATIONAL MERIT CERTIFICATE –
National Merit Certificate is given to
outstanding handloom weavers. This
award is given to an extraordinary skilled
weaver who has contributed significantly
in development of the handloom product.
National Merit Certificate consist of a
cash prize of Rs.75,000/- and a
certificate.

Apart from the above 2 Awards, the

Government of India conferring National Award
and National Merit Certificate for the following
fields in handloom:-

(i) Design Development for promotion of

handloom products

(ii) Marketing of handloom products.

The Government of India have selected

candidates for National Award, National Merit
Certificate for outstanding weaver and National

144
Merit Certificate for Marketing of handloom
products for the year 2016 announced in
February 2018 as indicated below:-

(i) The National Award for best

craftsmanship-2016 has been awarded to
Tmt.K.Maheswari (Member No.966) of
Murugan Silk Weavers Co-operative
Society, Kancheepuram for the product
“Kancheepuram Korvai Silk Saree”

(ii) The National Merit Certificate for

outstanding weaver 2016 has been
awarded to Tmt.P.Parvathi (Member
No.1992) of Murugan Silk Weavers
Co-operative Society, Kancheepuram for
“Kancheepuram Silk Saree”
(iii) National Award for marketing of handloom
products for the year 2016 has been
awarded to Kancheepuram Arignar Anna
Silk Weavers Co-operative Society,
Kancheepuram.

145
 (iv) National Merit Certificate for Marketing of
Handloom products – 2016 has been awarded to
Murugan Silk Weavers Cooperative Socieity,
Kancheepuram.

7.2 National Handloom Day

To commemorate the 110 years old

Swadeshi Movement which began on August 7,
1905 and with an objective to create awareness
on the importance of handloom sector as a part of
our traditional rich heritage and culture, promote
handloom products and their contribution to the
socio economic development, the Government of
India declared August 7 to be observed as
“National Handloom Day”.

In consonance with Government of India’s

announcement, the First National Handloom Day
was conducted on 07.08.2015 at Chennai and
India Handloom’ Brand was also launched. In
recognizing the paramount importance of
handlooms and recognizing contribution and

146
boosting morale of the handloom weavers, and
with a commitment to promote and safeguard the
interests of handloom weavers of Tamil Nadu, the
Government of Tamil Nadu celebrated the 3rd
National Handloom Day in a grand manner from
01.08.2017 to 07.08.2017.

With an objective to popularise the

importance of Handloom industry and its
contribution to the socio-economic development
of the State, the following initiatives have been
undertaken during the 3rd National Handloom
Day.

 Hon’ble Chief Minister of Tamil Nadu

participated in the National Handloom
Day function on 07.08.2017 and
distributed prizes and awards to the
handloom weavers.
 On the eve of National Handloom Day
2017, series of sales campaign to promote
the handloom products were conducted at

147
 all district headquarters of the State and
handloom products worth Rs.11.43
crore were sold of which highest sales
was effected in Erode circle i.e.,
Rs.106.68 lakh.
 National Handloom Expo – “Hand-Tex
2017” was organized through Co-optex
from 01.08.2017 to 07.08.2017 in
Kalaivanar Arangam, Chennai and
handloom products worth Rs.1.62 crore
was sold in the Expo.
 A fashion show to promote the handloom
industry was also organised by National
Institute of Fashion Technology on the
occasion of National Handloom Day
celebration.

148
Hon’ble Chief Minister distributing the Best Weaver Award for
the year 2017-18 during the National Handloom Day function
on 07.08.2017 at Chennai

Hon’ble Chief Minister along with Hon’ble Ministers for

Handlooms and Textiles, Fisheries and Co-operation viewing
the exquisite craftsmanship of the Kancheepuram Silk Saree
displayed at Hand-Tex 2017 Expo

149
7.3 Implementation of Tamil Nadu Innovation
Initiatives Scheme

The Government have introduced “Tamil

Nadu Innovation Initiatives (TANII) Scheme”
during the year 2015-2016. The Government had
issued administrative approval for sanction of
Rs.9 crore towards purchase of 6000 Motorized
Jacquard Machines for Handlooms over a period
of 3 years from 2015-2016 to 2017-2018, for
which, financial assistance to the extent of Rs.675
lakh as Government share was also sanctioned
under “State Innovation Fund”. Accordingly,
during the years from 2015-2016 to 2017-2018,
6000 Motorised Jacquard Lifting Machines have
been supplied at a cost of Rs.675 lakh to
Handloom Weavers of the following Circles:-

150
 Sl. Circle Year
No.
2015-2016 2016-2017 2017-2018

1 Coimbatore 200 715 160

2 Dindugul 100 - 80
3 Erode 400 - 350
4 Kanchipuram 400 445 -
5 Kumbakonam 300 365 80
6 Paramakudi 100 - 80
7 Salem 100 380 200
8 Tiruppur 200 220 230
9 Tiruvannamalai 100 350 100
10 Virudhunagar 100 - 80
11 Madurai - 5 40
12 Tiruchengode 20 100
TOTAL 2000 2500 1500

The Government have approved two

innovative projects for the year 2017-2018. A
sum of Rs.33 lakh has been sanctioned as
follows:-

151
 Sl. Amount
No. Name of the Scheme sanctioned
(Rs. in lakh)
1 Purchase of Handloom 30.00
Mobile Express

2 Installation of Washing 3.00

and Hydro extractor
machine

Total 33.00

7.4 Registration of Handloom Products under

Geographical Indication of Goods Act,
1999

Kancheepuram silk sarees, Bhavani

jamakkalam, Madurai sungudi sarees, Salem silk
(Venpattu), Arni silk and Kovai kora cotton sarees
have been registered by the Department of
Handlooms and Textiles under the Geographical
Indications of Goods (Registration & Protection)
Act, 1999 so as to provide legal protection to
these specialized goods produced in a particular
region by the handloom weavers co-operative
societies. The Act protects the producers and

152
consumers from unauthorized and misuse of the
geographical indications.
The registration of goods under the
Geographical Indications Act not only promotes
exports of such goods but also protects their
usage and sale in other countries, which comes
under the Trade Intellectual Property Rights
(TRIPS) Agreement of World Trade Organisation
(WTO).
So far, 21 Silk Weavers’ Co-operative
Societies, 10 private manufacturers, who are
producing Kancheepuram silk sarees, 60 Kora
cotton sarees producing societies, 30 Bhavani
Jamakalam producing societies and 8 Salem
Venpattu producing societies have been
registered as authorized users under
Geographical Indication of Goods Act.
The Department has planned to register
Thirubhuvanam Silk Sarees and Koorainadu Silk
Sarees under Geographical Indications of Goods
Act during the year 2018-2019.

153
7.5 Handloom Mark

The “Handloom Mark” is a symbol of rich

legacy and tradition of Indian Handloom Textiles
which was launched by the Government of India
on 28.06.2006. The basic objective of the
scheme is to ensure a brand for handloom
products and secure a premium position for them
in domestic as well as International Market. This
scheme helps not only in creating uniqueness for
handloom products but also to ensure the
availability of the genuine handloom products to
the buyers, thereby improving the marketability
of handloom products.

154
 The Primary Weavers’ Co-operative
Societies, Tamil Nadu Handloom Weavers’
Co-operative Society Ltd. (Co-optex), individuals
weavers, master weavers and exporters have
been registered under Handloom Mark Scheme
for using the Handloom Mark Labels.

Till 2017-2018, 8,650 organisations/

individuals have been registered under the
Handloom Mark Scheme and 3.85 crore labels
have been purchased.

7.6 Silk Mark

The Government of India have introduced

“Silk Mark” to promote the sale of silk products in
domestic and international market, with effect

155
from 17.04.2004. Silk Mark is an identity label,
which is affixed on pure and natural silk products
to ensure their fine quality.

The Silk Mark scheme is being implemented

by the Silk Mark Organization of India (SMOI), a
society registered under the Karnataka Societies
Registrations Act, 1960 and it is sponsored by the
Central Silk Board, Ministry of Textiles,
Government of India.

Any Individual Firm/Institution, Central

and State Government Institutions, Apex and
Private Corporate body can become a member of
Silk Mark Organization of India. The registered
members of this organization are only authorized
to use these labels.

So far, 77 Silk Handloom Weavers’

Co-operative Societies have registered
themselves as authorized users.

156
7.7 India Handloom Brand

“India Handloom” Brand was launched by

the Government of India on 7th August 2015,
during the celebration of first National Handloom
Day, to endorse the quality of handloom products
in terms of raw material, processing,
establishment, weaving, design and other
parameters besides social and environment
compliance for earning the trust of customers in
order to promote handloom industry on a
sustainable basis

The main objective of launching the brand

is to ensure the production of quality products
with new designs for winning the trust and
157
confidence of customers by giving particular
attention to the defect free, hand woven,
authentic niche products with zero defect and
zero impact on environment.

The “India Handloom” brand initiative is

being implemented by the Development
Commissioner for Handlooms with the help of
Textiles Committee in the Ministry of Textiles,
Government of India. The Development
Commissioner for Handlooms has constituted a
Special Cell for this purpose and 28 Weavers’
Service Centres all over the country are receiving
applications from various parties for registration
process under India Handloom Brand.

The Weavers Service Centre at

Kancheepuram receives applications for
registration of handloom products under India
Handloom Brand in Tamil Nadu.

158
 As many as 104 handloom producing
agencies / enterprises have been registered under
the brand in 28 product categories.

Under this brand, the Handloom Weavers

Co-operative Societies, which are producing the
varieties viz., Salem Silk Dhothi, Chettinad Cotton
Sarees, Kancheepuram Silk Sarees, Arni Silk
Sarees, Silk Angavastharam, Cotton Lungi,
Garments, Organic Fabric, Place Mat, Furnishing
Fabric, Kora Cotton Sarees, Dindigul Cotton
Sarees, etc., have been registered.

7.8 Elections to Weavers Co-operative

Societies – 2018

As per the Constitution’s (97th Amendment

Act) 2011, every Co-operative Society should be
managed by an elected Board of Directors.
Earlier, during 2013, Elections were conducted in
three phases (Primary level Societies, Central
level Societies and Apex Societies) from March
2013 to July 2013 for 1368 Weavers

159
Co-operative Societies in Tamil Nadu. The Five
years tenure of these elected Board has been
completed in April 2018.

The Tamil Nadu State Co-operative

Societies Election Commission has announced the
Election Programme to Weavers Co-operative
Societies. The total No. of Weavers Co-operative
Societies under the Department of Handlooms
and Textiles, for which election is to be conducted
in 3-Phases during 2018 is as follows:-

Phase 1 Phase 2 Phase 3 Total

1243 20 3 1266
(Primary (Central (Apex
Weavers Weavers Societies)
Co-operative Co-operative
Societies) Societies)

As per the Election schedule announced by

Tamil Nadu State Co-operative Societies Election
Commission , the 1st Phase of Elections to 1243
Primary Weavers Co-operative Societies have

160
been conducted in 4 Stages from 12.03.2018 to
07.05.2018 as indicated below:-
No. of
Primary
Stages in Date of
Weavers
Phase 1 Election
Co-operative
Societies
Stage-I 298 02.04.2018
Stage-II 315 07.04.2018
Stage-III 322 27.04.2018
Stage-IV 308 07.05.2018
Total 1243
The new Board of Directors elected for the
Primary Weavers Co-operative Societies under
Stage-I of Phase-I have assumed office on
09.04.2018. Regarding Primary Weavers
Co-operative Societies covered under Stage-II, III
& IV of Phase-I, Elections to Board of Directors
have been completed and results have been
withheld as per the orders of Hon’ble Supreme
Court.
7.9 Handloom Support Programme
The Hon’ble Deputy Chief Minister of Tamil
Nadu has announced on the floor of the Assembly

161
during the Budget Speech for the year 2018-2019
that this Government would launch a new
“Handloom Support Programme” to provide
financial assistance for innovation and
diversification of products in the handloom sector,
for which the Government have provided a sum of
Rs.40.00 crore in the Budget Estimate for the
year 2018-19.

Accordingly, the Department is taking

necessary steps to evolve suitable schemes so as
to provide financial assistance for innovation and
diversification of products in the handloom sector.

8. INSTITUTIONS UNDER THE

ADMINISTRATIVE CONTROL OF THE
DEPARTMENT

8.1 Co-operative Spinning Mills

With an object of providing employment to

rural folk, supply quality yarn at reasonable rate
to Handloom Weavers in our State and to take
care of the needs of hank yarn 18 Co-operative

162
Spinning Mills were established in our state
between 1958 and 1985 with an installed spindle
capacity of 4.70 lakh.

Out of this 13 Co-operative Spinning Mills

became defunct owing to obsolete machinery,
shortage of working capital and adverse market
conditions.

The Ramanathapuram District Co-operative

Spinning Mills alone was re-opened by installing
State of the art machinery in order to provide
employment to Adi-Dravida workers in the
drought prone Ramanathapuram District. Apart
from this, the five Co-operative Spinning Mills
namely Anna Co-operative Spinning Mills,
Aundipatti; Bharathi Co-operative Spinning Mills,
Ettayapuram; Kanyakumari District Co-operative
Spinning Mills, Aralvoymozhi; Pudukottai District
Co-operative Spinning Mills, Aranthangi and
Krishnagiri District Co-operative Spinning Mills,
Uthangarai have been modernised and running
continuously.
163
8.1.1 Modernisation of Co-operative Spinning
Mills

The Government of Tamil Nadu with the

financial assistance of National Co-operative
Development Corporation, New Delhi have
provided Rs. 147.21 crore for the modernisation
of these functional Co-operative Spinning Mills.

A sum of Rs.28.02 crore was earmarked

for Ramnathapuram District Co-operative
Spinning Mills for total modernisation.
Consequently the present spindle capacity of
Co-operative Spinning Mills has been enhanced to
1,18,368 spindles. The production has increased
from 5,975 M.T. to 13,140 M.T. At present,
quality yarn is being manufactured and supplied
to cost free Sarees and Dhoties Scheme and cost
free Uniform Scheme.

Apart from this as per the announcement

made by the former Hon’ble Chief Minister on
20.9.2016 a sum of Rs.19.29 Crore has been

164
sanctioned for the 6 functional Co-operative
Spinning Mills for purchase of additional
machinery by availing financial assistance from
National Co-operative Development Corporation.
The details of which are given below:-
S. Name of the Co-operative Approved
No. Spinning Mills Project cost
(Rs. in lakh)
1. Anna 570.39
2. Bharathi 482.11
3. Kanyakumari 86.00
4. Pudukottai 417.00
5. Krishnagiri 100.00
6. Ramanathapuram 265.00
Total 1929.50

The machinery have been purchased and

are being commissioned in stages.
The phase II of modernisation equips the
Co-operative Spinning Mills with the state-of-the
art components viz., auto coner, combers,
lapformers and doubling machines which will
enhance the performance of the mills and quality
of yarn to be supplied to the Handloom and Power

165
loom Weavers producing cloth under the Cost
Free Sarees and Dhoties Scheme and Cost Free
Uniform Scheme. Also ground mounted solar
panels 135 KWp are being installed at Bharathy
Co-operative Spinning Mills, Ettayapuram to
bear the lighting load and would contribute to
saving in power.
Performance of Co-operative Spinning Mill
before and after modernization
Sl. Details Before After
No. modernization modernization
1 No. of Spindles 1,13,000 1,18,368

2 Average Hank: 1,188 Hank: 2,613

production per Cone: 4,787 Cone: 10,527
annum (in M.T.) -------- ----------
Total: 5,975 Total: 13,140
--------- ----------
3 Production value 90.68 220.61
(Rs. in crore)
4 Average spindle 85% 110.00
point production
(SPP) (in grams)
5 Count strength 2,000 2,500
product (CSP)

166
 Assembly Winder at
Anna Co-operative Spinning Mills, Theni

Carding section at
Ramanathapuram Co-operative Spinning Mills

167
8.1.2 Achievements during 2017-18

 The 6 Co-operative Spinning Mills have

supplied 3980.88 M.T. of yarn valuing
Rs.96.02 crore to the Weavers’
Co-operative Societies for production of
cloth under Cost Free Distribution of Sarees
and Dhoties Scheme for Pongal 2018.
 The 6 Co-operative Spinning Mills had
supplied 3,764.46 M.T. of yarn valuing
Rs.87.28 crore to the Weavers’ Co-
operative Societies for production of cloth
under Free supply of Uniform Scheme for
the year 2017-2018.

 The Co-operative Spinning Mills are

producing and supplying entire hank yarn
requirement of Weavers Co-operative
Societies in respect of counts like 20s, 26s
and 2/17nf. The Co-operative Spinning Mills
have supplied 11,399 bales (2175.97 M.T.)
valued at Rs.41.62 crore to Handloom

168
 Weavers’ Co-operative Societies during the
year 2017-2018.

 In respect of Government Schemes, which

are going to be implemented in future, the
Co-operative Spinning Mills have planned to
produce and supply the entire requirement
of 60s Combed yarn for various cloth
production.

Sl. Count Total Production

No. per annum (in
M.T.)
1 20s hank 340
2 26s hank 65
3 40s hank 1,300
4 60s hank 4
5 2/17s hank 2,160
6 2/30s hank 650
7 2/40s hank 650
8 2/60s hank 4
9 40s cone 8,760
10 60s cone 720
11 2/30s cone 1,200
12 2/40s cone 800

Count wise production capacity of modernized

Co-operative Spinning Mills

169
8.2 Tamil Nadu Handloom Development
Corporation Limited (TNHDC), Chennai

The Tamil Nadu Handloom Development

Corporation Limited is a State Public Sector
Undertaking, commenced its operation in the year
1964 when major banking institutions were not
nationalized. The Corporation has been serving
the weavers outside the co-operative fold by
extending working capital assistance at
reasonable rate of interest and to liberate them
from the clutches of the local money lenders. In
order to achieve the cause, it mobilized resources
by way of share capital from Government and
members and loan from Government of Tamil
Nadu as detailed below:-

170
 (Rs. in lakh)

A) Share Capital

(i) Government 267.00

162.24
(ii) Members

Total Share Capital 429.24

B) Loan from Government of Tamil
547.00
Nadu
976.24
Grand Total (A + B)

The Corporation is having 11,841 members

on it’s roll. Due to waiver of loan extended to
other sectors, the members are reluctant to settle
the dues thereby Corporation is in paucity of
working capital. Since the primary objective of
the Corporation to sanction loan to weavers
outside co-operative fold is affected due to the
poor recovery of loan, the Corporation manages
to continue its existence by handling various
Government Schemes.
The Government have appointed Tamil
Nadu Handloom Development Corporation Ltd. as

171
nodal agency / implementing agency in respect of
following schemes / activities:-

Sl. Name of the Scheme / Activities

No.
1 Trichy Mega Handloom Cluster

2 Virudunagar Mega Handloom Cluster

3 Marketing handloom products through

e-shopping under the brand name
Loomworld

4 Conducting National Level Handloom

Exhibitions

5 Marketing Incentive Scheme

During the year 2017-2018, the Corporation has

recovered a sum of Rs.8.80 lakh towards Principal and
Rs.8.65 lakh towards interest.

The tentative net profit of the Corporation for the

year 2017-2018 is Rs.14.02 lakh.

8.2.1 Loomworld Sales Showroom

In order to create a unique identity and to
promote the marketing of handloom products, the
Department has established a chain of stores
172
under the brand name called Loomworld during
the year 2000. The Loomworld facilitates
marketing of handloom products produced by the
Primary Weavers Co-operative Societies to some
extent. There are eight ‘Loomworld’ outlets
functioning in Tamil Nadu viz., Chennai Anna
Nagar, Chennai Egmore, Coimbatore, Madurai,
Tiruchirapalli, Dharmapuri, Kancheepuram and
Erode. Loomworld showrooms have registered a
sales turnover of Rs.12.91 crore during the year
2017-2018.

20
16.92

15 12.91
11.96
Rs in crore

10

0
2015-16 2016-17 2017-18

Sales performance of Loomworld Showrooms

for the past three years

173
 The Government have sanctioned a sum of
Rs.25 lakh for Modernisation of the Loomworld
showrooms at Anna Nagar, Chennai and Rs.50
lakh for Coimbatore Loomworld. In addition, a
sum of Rs.100 lakh has also been permitted from
Marketing Incentive Scheme for the year
2017-2018. Accordingly, the modernization of
these Loomworld showrooms is under process.

8.2.2 e-Commerce Website under the Brand

name Loomworld

In order to popularize the Loomworld

concept for the convenience of the customers and
to utilize the advantages of e-commerce facility in
the domain of www.loomworld.in was launched
on 30.12.2015.

174
 During the year 2017-2018, 1046 products to
the value of Rs.16.64 lakh have been sold
through the e-shopping portal of Loomworld. To
further increase the sales through online, a tie-up
arrangement has been made with private
e-commerce agency namely “Gocoop Solutions
Services Private Ltd.,” and business tie-up
arrangement has also been made with Amazon
Seller Services Pvt. Ltd., (www.amazon.in) which
was launched on 28.12.2017.

175
 Loomworld online sales through Amazon launched
by Hon’ble Minister for Handlooms and Textiles

The Tamil Nadu Handloom Development

Corporation Limited is the Implementing Agency
for coordinating the e-commerce activities of
Loomworld.

8.2.3 Action Plan for 2018-2019

 This Corporation will continue to act as

Nodal Agency / Implementing Agency in
respect of above schemes / Programmes of
Government of India.

 The Corporation has planned to achieve a

sale of Rs.25 crore through Loomworld.

176
  The Corporation proposed to collect Rs.75
lakh towards principal and Rs.100 lakh
towards interest.

 The Corporation has planned to sell Rs.50

lakh worth handloom products through
e-shopping platform under the brand name
“Loomworld”.
8.3 Tamil Nadu Textile Corporation Limited
(TNTC), Coimbatore

The Tamil Nadu Textile Corporation Ltd. is a

wholly owned Government Company established
during 1969 under the Companies Act 1956.

The Corporation had gone in for

modernisation and installed 10 Airjet looms at
Kurichi, Coimbatore to improve the quality of
cloth and its productivity and provide continuous
employment to its workers.

The existing 3 Powerloom complexes at

Aruppukottai (Virudhunagar District), Sivagiri

177
(Erode District) and Kurichi, Coimbatore are
functioning with 36 looms each.

The Corporation is engaged in the

production and supply of Polyester Cotton Suiting
and Shirting varieties to various Government
Institutions. Apart from engaging in the
production of Shirting, Casement and Drill cloth
under Cost Free supply of School Uniform Scheme
and Dhothies under Cost Free Distribution of
Sarees and Dhoties Scheme.
The Corporation received orders for
production and supply of 25.65 lakh mtrs. of
Uniform cloth to the value of Rs. 10.88 crore
under Cost Free Supply of School Uniform
Scheme (AY 2017-2018) and one lakh units of
Dhoties to the value of Rs. 97.67 lakh under the
Cost Free Distribution of Sarees Dhothies
Scheme, Pongal 2018.

178
 Kurichi Unit Auto Looms Shed
at Tamil Nadu Textile Corporation Limited

The Tamil Nadu Textile Corporation also

acts as a “Nodal Agency” for procurement and
supply of uniform cloth under Cost Free Supply of
School Uniform Scheme and Sarees and Dhothies
under Cost Free Distribution of Sarees and
Dhothies Scheme. The Corporation procured and
supplied 256.59 lakh metres worth about
Rs.119.80 Crore under the Uniform Scheme
(academic year 2017-2018), and also supplied
78.72 lakh Sarees and 73.13 lakh Dhothies worth
about Rs.196.43 crore under Cost Free

179
Distribution of Sarees Dhothies Scheme, Pongal
2018 from the Powerloom Weavers Co-operative
Societies.

During the year 2017-2018 the Corporation

had secured orders worth Rs.573.58 lakh for the
supply of 6.38 lakh metres of Polyester cotton
uniform cloth to the State Transport Corporation,
Tamil Nadu Generation and Distribution
Corporation (TANGEDCO), Tamil Nadu Police
Department, TEXCO, ICDS, Municipal
Corporations and other Public Sector
Undertakings.
The details of financial performance of the
Corporation for the year 2017-2018 are as
follows:-

Year Total Value Total Sales Net Profit /

produc (Rs. in sales (in Value loss
tion (In lakh) lakh (Rs. in (Rs. in
lakh metres) lakh) lakh)
metres)

2017-2018 35.73 1551.08 36.92 1801.90 (+)66.84

180
8.3.1 Action Plan for 2018-19

The Corporation aims to produce 25.16 lakh

metres of uniform cloth varieties valuing Rs.10.84
crore towards supplies under Government
schemes and Institutions.

Further, the Corporation is expected to

procure and supply 255 lakh metres of Uniform
cloth worth Rs. 131.26 crore and 80 lakh sarees
and 80 lakh Dhothies worth Rs. 227 crore
manufactured through Power loom Weavers’
Co-operative Societies. Hence, the Corporation
has planned to achieve a turnover of Rs. 34.15
crore and a net profit of Rs. 1.50 crore during the
year 2018-2019.

8.4 Tamil Nadu Zari Limited (TNZL),

Kancheepuram

Tamil Nadu Zari Ltd was registered in the

year 1971, under the Companies Act 1956, as a
State Public Sector Undertaking to manufacture
pure zari which is a critical input used in silk
181
saree production. The Company commenced it’s
commercial production in the year 1974. The
Company is an ISO 9001:2008 certified State
Public Sector Undertaking and manufacture the
pure zari to supply to Silk Handloom Weavers
Co-operative Societies at reasonable rates. The
Tamil Nadu Zari Ltd is also undertaking the
quality checking of Zari and Zari made fabrics
within minutes by Non Destructive Testing (NDT)
method through X-ray fluorescence analyser
installed at the testing centre at Kancheepuram.
At present, 6 staff and 76 workers are working in
the Company.

The authorised Share capital of the

Company is Rs.50 lakh and paid up share capital
is Rs.34.40 lakh subscribed by the Government of
Tamil Nadu. Tamil Nadu Zari Ltd has paid
Rs.132.88 lakh as Dividend so far to the
Government of Tamil Nadu from the profit earned
by the Company.

182
 To improve the quality of zari, one new
vertical type gilding machine from Surat has been
installed which eliminates the process of reeling
and gives better colour and lustre of zari.

Vertical type gilding machine, Kancheepuram

Gold thread flattening

183
 During the year 2017-2018, Tamil Nadu
Zari Ltd produced 30,501 marcs of zari and sold
29,863 marcs to the value of Rs.3198.77 lakh and
earned a net profit of Rs.22.39 lakh (tentative).

8.4.1 Action Plan for 2018-2019

Tamil Nadu Zari Ltd has planned to produce

and sell 36,000 zari marcs during the year
2018-2019 and achieve a sales turnover of
Rs.3,888 lakh and net profit of Rs.15 lakh.

8.5 Tamil Nadu Co-operative Textile

Processing Mills Limited (TCTP), Erode

The Tamil Nadu Co-operative Textile

Processing Mills (TCTP) was registered on
06.07.1973 and started its functioning on
05.09.1973. The mill is undertaking various
processing activities like Bleaching, Dyeing,
Mercerizing, Printing and Finishing. The Mill is
having ISO 9001-2008 Certification for its
Operations and Quality Management. The Mills

184
production capacity per month is 21 lakh meters
of cloth.
The main production activities of the mill is
to process the uniform cloth supplied by
Government of Tamil Nadu under cost Free
Distribution of uniform scheme. Moreover the mill
is processing cloths of various institutions like
Co-optex, National Textile Corporation, Tamil
Nadu Textile Corporation, Coimbatore Central
Prison, Tamil Nadu Khadi and Village Industries
Board, Kerala State Handloom Weavers
Co-operative Society, Kerala State Handloom
Development Corporation and Primary Weavers
Co-operative Societies.
In order to achieve ZLD status in effluent
discharge the mills is equipped with Effluent
Treatment Plant, Reverse Osmosis System and
Reject Management System. As a result, the
cloths are processed with quality by adopting
Zero Liquid Discharge System and fulfilling the
norms of Tamil Nadu Pollution Control Board.

185
 In the mills, 129.62 lakh meters of cloth
were processed and turnover of the mills was
Rs.24.59 crore during the year 2017-2018. The
mill has earned a tentative profit of Rs.2 lakh
during this period.

8.5.1 Modernisation Programme

During the year 2008-2009 and

2013-2014 the mills had implemented the
Modernisation Programme under Integrated
Co-operative Development Programme Scheme to
the tune of Rs.7.67 crore. By the impact of
modernization, the production capacity of the mill
was increased from 50,000 meters per day to
70,000 meters per day.

186
 Vertical Drying Range Machine

Continuous Chainless Mercerising Machine

187
8.5.2 Action Plan for 2018-2019

The Mill has proposed to process 173 lakh

metres of cloth and thereby expected earnings
will be Rs.29.82 crore. Expected net profit will be
Rs.1.70 crore.

8.6 Tamil Nadu Co-operative Spinning Mills

Federation Limited (TANSPIN), Chennai
Tamil Nadu Co-operative Spinning Mills
Federation (TANSPIN) was established in
December 1994, in order to regulate the purchase
of cotton for Co-operative Spinning Mills. The
primary objective of this Federation is to ensure
supply of quality cotton at reasonable price to
Co-operative Spinning Mills by procuring cotton
from various Co-operative Institutions,
Federations and Cotton Corporation of India. To
accomplish this, State Government had
sanctioned a share capital assistance of Rs.25
crore and a Cotton Revolving Fund of
Rs.2.07 crore.

188
 90
80
70 79.00
75.42
Rs.in lakh 60
66.00
50
40
30 41.55
20
25.02
10
0
2013-14 2014-15 2015-16 2016-17 2017-18

Profit earned by TANSPIN over the years

TANSPIN has extended loan assistance of

Rs.7.55 crore to 6 running Co-operative Spinning
Mills for purchase of cotton. It collected service
charges of Rs.135 lakh and earned tentative
profit of Rs.79 lakh during the year 2017-2018.

8.7 The Tamil Nadu Handloom Weavers’

Co-operative Society Limited
(Co-optex), Chennai

The Tamil Nadu Handloom Weavers

Co-operative Society popularly known as
“Co-optex” is the largest apex Handloom
Co-operative Society in India. The multihued

189
Butterfly is synonymous with quality and fair
trade in Handlooms to its customers, all over the
country. This has been possible because of its
large base of highly skilled weavers producing
handlooms representing a historic weaving
tradition of Tamil Nadu with unmatched aesthetic
quality. Today Co-optex not only represents the
highest tradition of handlooms but also a great
social cause by providing sustained employment
to the weavers of the State.
The Organization is continuously striving to
achieve the main objectives of

1) Extending market support to

Weavers’ Co-operative Societies and
popularizing handloom products,

2) Implementing various innovative

schemes

3) Creating continuous employment

opportunities for handloom weavers.

190
 4) To develop products that combine
tradition and fashion to meet the
changing demand of customers.

Co-optex was established in 1935 and is

able to reach its customers through its 192
Showrooms spread across the country. Co-optex
has the distinction of being geographically, the
most spread Apex society with outstanding
contribution to Handlooms in the country.

Due to its dedicated work force and

experience in handling the Government schemes,
Co-optex has been appointed as one of the nodal
agencies for Cost Free Distribution of Sarees and
Dhothies Scheme, Free supply of School Uniform
Scheme to school students and exclusively for Old
Age Pension Scheme.

Co-optex Export Division – Co-optex

International is exporting Home textiles products
to the countries like Germany, Belgium, Spain,
United Kingdom, Italy and France.
191
Retail Sales during 2017-2018

During the year 2017-2018, Co-optex has

achieved a sales of Rs.316.15 crore. This sales
was a result of many initiatives including
continuous procurement throughout the year,
modernization of a large number of showrooms to
improve the ambience of the showrooms,
increased design interventions, introduction of
new products, as well as recruitment motivation
and training to the new staff.

The effective marketing through Social

Media Campaigning has improved the customer
base and resulted in large number of first time
buyers patronising Co-optex products.

192
 Retail Sales during 2017-2018

7%
2%

SAREES
DHOTIES / LUNGIES
25%
TOWELS
HOME DECOR
56%
READY MADES
OTHERS
5%
5%

Product wise Sales during 2017 – 2018

193
Co-optex Online Sales

Co-optex has launched online sales through

its own portal to reach more number of
customers and tech savvy generation across the
country. As the customers support is
encouraging, Co-optex has increased its products
range to include products like Linen Shirts,
Kurthis, Organic Sarees, Quilt & Home Furnishing
on its Online portal. Co-optex today Stands No.1
in online sales amongst all handloom Apex
Societies in the country.

The online sales is showing an impressive

growth since inception.

194
Value in Lakh

International Portal

In order to facilitate online purchase and

delivery to customers across the globe, Co-optex
has inaugurated International shipment facility
from 31.01.2018 on its online portal.

During the year 2017-18, Co-optex has

doubled its sale to Rs.1.02 crore through Online
Portal as compared to last year.

195
 First International shipment handed over
by the Hon’ble Minister

First customer from Malaysia ordering a saree

on the launching Day

196
Marketing strategies during 2017-2018

Modernisation of Showrooms

During 2017-2018, Co-optex has

modernized the following 5 Showrooms:-

1.Deepam, Vellore
2.Tiruvannamalai
3.Tenkasi
4.Muthunagar, Tuticorin
5.Srivilliputhur

As a result of the success of the Home Tex

at T.Nagar, Chennai, an exclusive showroom for
home furnishing, another Home Tex showroom
has been opened at Co-optex Marudham
Showroom at Coimbatore.

197
Co-optex Showroom, Vellore

Co-optex Showroom ,Tuticorin

198
Co-optex Showroom ,Srivilliputhur

Co-optex Showroom, Tenkasi

199
 Co-optex Showroom, Tiruvannamalai

Design Innovations

Realizing the changing demands and

preference of its customers, Co-optex has
introduced a large number of new designs
through its own Design Studio. In the year
2017-2018, 2000 new designs in various products
were introduced.

200
Introduction of New Products

Co-optex introduced new products keeping

in mind the taste of urban customers in the year
2017-2018.

AHIMSA silk sarees

The silk yarn used for the production of

these sarees is spun from silk cocoons without
killing the silk worms and hence the name -
Ahimsa Silk Sarees. Ahimsa silk sarees are woven
by the Handloom Weavers in Kancheepuram and
Arani area.

201
Natural Dyed Cotton Sarees

The cotton yarn used in the Production of

these sarees is dyed with Natural colours
extracted from flowers, herbs, petals, leaves,
seeds etc. These saree are made out of high
quality combed cotton yarn and woven by the
weavers of Vadambachery in Pollachi, Dindigul
and Manamedu area in Tiruchirappalli district.

202
New Kanchi Cotton Sarees

The specially designed New Kanchi Cotton

Sarees incorporating traditional designs in pure
thread work has been revived and produced by
the skilled weavers of Vadambachery, Dindigul
and Paramakudi Weaving Cluster. These
meticulously woven sarees using 80s fine quality
yarn are incorporated with traditional motifs in
contemporary style.

These sarees with rich thread work pallu

exhibit grand look of the Kanchee cotton sarees.

203
204
Mens’ Combo Pack/ Velcro Dhothy
Keeping in mind its male customers
Co-optex has introduced Men’s Combo Pack, a set
consisting of one dhothy and one matching cotton
shirting piece for sales across Co-optex
showrooms.
Co-optex has developed Velcro Dhothy
specially for Dhothy lovers and for people not
adept in wearing the dhothy..
These are provided with Velcro tape and a
pocket to keep wallet and mobiles. These
Dhothies are available in different sizes.

Combo pack

205
 Velcro Dhothy

National Handloom Expo–Hand Tex 2017

With an objective to create awareness on

the importance of handlooms, the Government of
Tamil Nadu decided to celebrate Handloom Day
on 7th August. Co-optex, in co-ordination with
Department of Handlooms and Textiles, Chennai,
conducted, a National Handloom Expo – named
“HAND TEX 2017” at Kalaivanar Arangam,
Chennai. In all, 44 Stalls were put up by Co-optex
and other Handloom organizations from across
the country.
206
 This event became major driving force to
promote the sales of Handloom products and
achieved a sale of Rs.1.62 Crore within a span of
7 days.

S. Details Value
No. (Rs. in lakh)
1 Value of Sales by Co-optex 96.13
2 Value of Sales other State 65.43
apex Societies
TOTAL 161.56

Fashion Show

To emphasize the importance of handloom

to younger generation and fashion conscious
elite, a fashion show was organised in
co-ordination with NIFT Chennai.

The Fashion show titled “Symphony of

Weaves” had region specific sequences, showing
handlooms produced across various regions of
Tamil Nadu and highlighted versatility of products
like Organic Cotton Sarees, Kurthies, Linen Shirts
and Dhothies.
207
208
Weaver’s Identity Card

Hand weaving, as a craft is passed on from

one generation to another and requires immense
patience and skill to master it. A weaver has to
move his hands and legs at least 15000 times to
weave a saree. Co-optex provides traceability for
all its handloom sarees by attaching Weaver
Cards. These weaver’s Identity Cards provides a
connect between the weaver and the customer.

Weaver’s Identity Card

209
Sales Promotion Schemes

Buy 2 Get 1 Free

As per the suggestion of the then Hon’ble

Chief Minister, in the year 2011-2012 an
innovative scheme Buy 2 Get 1 Free scheme
was launched. The scheme is continued due to
encouraging response. During 2017-2018,
Co-optex has achieved a sales of Rs. 35 Crore
through this scheme.

Co-optex launched a special sale promotion

offer “Aadiyil Athirstam”, during the Tamil
month of Aadi i.e., from 14.07.2017 to
13.08.2017 to compete with the special discounts
offered by private retail stores and achieved a
sales of Rs.20.13 crore.

Kanavu Nanavu Thittam

Co-optex offers a popular monthly savings

scheme named as “Kanavu Nanavu Thittam”.
Customer can invest through monthly
installments starting from Rs.300/- and multiples
210
of Rs.100/-. Customer pays 9 monthly
installments and Co-optex pays the 10th
installment. In this scheme, the customer reaps
58% cash benefit on their 9 month savings.
36,000 customers have been enrolled under this
scheme. During the year 2017-2018 a sales of
Rs.13.62 crore has been achieved under this
scheme. A sale of around Rs.24 crore is
anticipated during the year 2018-2019.

Thanga Mazhai Thittam

To promote cash sale during festival

seasons (15.09.2017 to 31.01.2018) covering
Deepavali, Christmas and Pongal, Co-optex
introduced “Thanga Mazhai Thittam”. Each
customer, who buys products for Rs.2000/- and
in multiples in cash or by credit / debit card,
contest coupons are issued. Under this scheme a
total of 1.10 Kg Gold coins were distributed to
220 customers.

211
Staff Recruitment & Training

Co-optex has recruited 50 Nos Assistant

Sales Man / Assistant Sales Women during
2017-2018. The new marketing staff with
computer skill were given appointment and
posted in Showrooms all over India.
The staff were given training in
Salesmanship, Customer reception and product
awareness.
International Fairs

Co-optex International has participated in

the Who’s Next Fair 2017 Paris, France during
September 2017 and Heimtextil Fair at Frankfurt,
Germany during January 2018 which resulted in
an overall / exports sales to the tune of Rs.1.02
crore during the year 2017-2018.

212
Co-optex Stall at Who’s Next Fair at Paris, France

Co-optex Stall at HEIMTEXTIL Fair at Frankfurt,

Germany

213
Implementation of Government Schemes

Cost Free Distribution of Sarees and Dhoties

Pongal 2018

Under the Cost Free Distribution of Sarees

and Dhoties Scheme for Pongal 2018, Co-optex
was one of the Nodal Agencies for supply of
sarees and dhoties. Co-optex has supplied 76.11
lakh sarees and 81.71 lakh dhoties to the Taluk
offices.

Cost Free Supply of Uniform Scheme

Under Cost Free Supply of Uniform Scheme,

Co-optex was one of the Nodal Agencies for
supply of free uniform cloth to School Students.
Co-optex has supplied Drill 71.71 lakh meters,
Casement 119.66 lakh meters and Dupatta 69.42
lakh meters to Social welfare Department for the
year 2017-2018.

214
Cost Free Distribution of Sarees and Dhoties
to Old Age Pensioners

Co-optex is the nodal agency for supply of

Cost Free Distribution of Sarees and Dhoties to
Old Age Pensioners. During Deepavali 2017
Co-optex has supplied 20.24 lakh Sarees and
7.91 lakh Dhoties to Old Age Pensioners.
Similarly, during Pongal 2018, 20.45 lakh Sarees
and 7.91 lakh Dhoties were supplied. The total
value of supply was around Rs.84.83 Crore.

Action Plan for 2018-19

Sales Target

Co-optex aims to achieve a target sale of

Rs.340 Crore during 2018–2019 by developing
new designs, introducing new products, further
modernization of the showrooms, wide publicity
and by canvassing more orders from the
Government Departments.

215
9. BUDGET PROVISION FOR THE YEAR
2018-2019
The State Government has made allocation of
Rs. 1240.72 crore in the Budget Estimate for the year
2018-19 for the Department of Handlooms and Textiles
as detailed below:-
Budget
Estimate
S.
Name of the Scheme 2018-19
No
(Rs. in
lakh)
1 Free Distribution of Dhoties
49045.00
and Sarees Scheme
2 Free Electricity to Handloom
484.05
Weavers
3 Free Electricity to Powerloom
43644.45
Weavers
4 Handloom Support
4000.00
Programme
5 Payment of Interest Subsidy
1050.00
Scheme
6 Rebate on Sale of Handloom
15000.00
Cloth
7 Payment of Premium for Tamil
Nadu Co-operative
Handloom Weavers under 150.00
Mahatma Gandhi Bunkar Bima
Yojana Scheme
8 The Co-operative Handloom
Weavers Savings and Security 1200.00
Scheme

216
 Budget
Estimate
S.
Name of the Scheme 2018-19
No
(Rs. in
lakh)
9 Health Insurance Scheme for
150.00
Handloom Weavers
10 Old Age Pension and Family
2500.00
Pension Scheme
11 Prize Award to Best Weaver 1.00
12 State Textile Advisory
Committee – Office Expenses
10.00
and TA/DA to Non-Official
Members
13 Cluster Development
Programme under
200.00
Comprehensive Handloom
Development Scheme
14 Marketing Incentive under
Comprehensive Handloom 3000.00
Development Scheme
15 Rent subsidy for Powerloom
3.12
Service Centre at Erode
16 Construction of new Buildings
for the Office of the
50.00
Department of Handlooms and
Textiles
17 Ways and Means Advances to
Non-Functional Co-operative
Spinning Mills controlled by 100.00
the Commissioner/Director of
Handlooms and Textiles
18 Salaries and Administrative
2847.20
Expenses

217
 Budget
Estimate
S.
Name of the Scheme 2018-19
No
(Rs. in
lakh)
19 Salaries and Administrative
Expenses for Enforcement 240.72
Wing
20 Salaries and Administrative
Expenses for Secretariat –
Handlooms, Handicrafts, 396.77
Textiles and Khadi
Department
21 Other items 0.18
TOTAL 124072.49

O.S.MANIAN
MINISTER FOR
HANDLOOMS AND TEXTILES

218