HANDLOOMS AND TEXTILES

POLICY NOTE FOR THE YEAR 2009-10

Demand No. 17
1. INTRODUCTION
The Textile Industry of Tamil Nadu has its significant presence in the National and State economy.
It is the forerunner in Industrial development. Handloom, Powerloom, Spinning, Processing, Garment and
Hosiery are the various sectors of the Textile Industry in Tamil Nadu and known for the largest economic
activity next only to Agriculture in providing direct and indirect employment.

The primary objectives of the Department of Handlooms and Textiles are,

(i) to promote the harmonious growth of Handloom, Powerloom and other sectors of the Textile Industry;
and

(ii) to strive for the welfare of all connected with the industry, more particularly, the handloom weavers
and the textile workers.

This Department promotes socio-economic well-being of the weavers by implementing various

welfare and developmental schemes of the Government intended to benefit the weavers. The overall
responsibility lies with this department for ensuring the availability of raw materials to all sectors of the
textile industry, augmenting the production of yarn and fabrics at reasonable prices as well as creating an
environment to promote the sale of finished products, and especially for the supply of yarn and other raw
materials to the Weavers Co-operative Societies. This Department arranges marketing of the
finished products through the showrooms of Co-optex, Loom world and Society as well as other sales
outlets in and outside the State.

The following institutions are under the administrative control of the Department of Handlooms
and Textiles:

i. 1130 Handloom Weavers Co-operative Societies

ii. 164 Powerloom Weavers Co-operative Societies
iii. 18 Co-operative Spinning Mills (5 Co-operative Spinning Mills viz., Anna (Theni), Bharathi
(Thoothukudi), Pudukottai, Kanyakumari and Krishnagiri are functioning)
iv. Tamil Nadu Handloom Weavers Co-operative Society Limited (Co-optex), Chennai.
v. Tamil Nadu Zari Limited, Kancheepuram.
vi. Tamil Nadu Handloom Development Corporation Limited, Chennai.
vii. Tamil Nadu Co-operative Textile Processing Mills Limited, Erode.
viii. Tamil Nadu Textile Corporation Limited, Coimbatore.
ix. Tamil Nadu Co-operative Spinning Mills Federation Limited (TANSPIN), Chennai.

The Director of Handlooms and Textiles is vested with powers delegated under the Tamil Nadu
Co-operative Societies Act, 1983 and Rules 1988. The Director is the "Functional Registrar" for the
Handloom and Powerloom Weavers Co-operative Societies and other Co-operative Institutions
functioning under the Department of Handlooms and Textiles in the State. The Director also functions as
the "State Textile Authority" and as such has a general responsibility to facilitate the smooth functioning of
the Spinning and Textile Mills, processing units, Hosiery units, Handlooms and Powerlooms. Various
welfare schemes for the weavers are implemented by this Department at the field level by the 18 circle
Deputy Directors/Assistant Directors.

2. PRESENT STATUS OF VARIOUS SECTORS OF THE TEXTILE INDUSTRY

2.01 Handlooms
Handloom Sector constitutes a timeless facet of the rich cultural heritage of India and plays a vital
role in the economy of the Country. It has a long tradition par excellence in its craftsmanship. As an
economic activity, the handloom sector plays an important role, next only to agriculture, in providing
employment to a sizable segment of the rural masses in the State.

Tamil Nadu occupies a pride place in handloom sector with maximum number of handlooms in the
Country. Handloom weaving is one of the largest economic activities in Tamil Nadu. There are 4.13 lakh
handlooms located in the State in which 2.32 lakh handlooms are functioning with 1130 Handloom
Weavers Co-operative Societies and the remaining 1.81 lakh looms are outside the Co-operative fold,
thus providing employment to 6.08 lakh weavers.

All the developmental programmes and welfare schemes of both State and Central Government
intended for the handloom weavers are being implemented through the Handloom Weavers Co-
operative Societies functioning in the State.

During the year 2008-09, the Handloom Weavers Co-operative Societies produced 1296.47
lakh metres of handloom fabrics to a value of Rs.800.61 crore and sold them for Rs.914.95 crore.
The average annual production of handloom cloth in the State is around Rs.1700 crore and the average
turnover is around Rs.1800 crore, inclusive of export turnover of Rs.875 crore.

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 The approach of the Government, in the context of opening up of global textiles market, is to
‘sustain the handloom industry’ and ‘continue to provide livelihood to the several lakh of weavers who
depend on this activity.’ This requires constant skill upgradation to produce marketable products,
technology upgradation to increase the productivity and to maintain quality to compete in the world
market besides product diversification through continuous design interventions. All the above measures
will ensure sustenance of the industry.

2.02 Powerlooms

The Powerloom Sector in Tamil Nadu plays a pivotal role in meeting the clothing needs of the
people. The Powerloom Sector in Tamil Nadu is next only to Maharashtra in terms of number of
powerlooms. In the liberalized economic environment, the delicensed powerloom sector has been
steadily registering good progress. Production of cloth as well as generation of employment has been
rapidly increasing in this sector. It also contributes significantly in the export earnings of the country.

The Powerloom Sector in Tamil Nadu provides employment to around 9.14 lakh workers. As
against 19.03 lakh registered powerlooms in India, 3.66 lakh are located in Tamilnadu and of that 42,566
are covered under 164 Powerloom Weavers Co-operative Societies. During the year 2008–09, these
Societies have produced 1487.50 lakh metres of cloth worth around Rs. 246.09 crore and the turnover
was around Rs.253.50 crore.

2.03 Textile and Spinning Mills

The Textile Mills are the backbone of Tamil Nadu’s industrial development and are providing
massive employment in the State predominantly spinning-oriented. The State textile industry has a
significant presence in the national economy also. There are 3069 large, medium and small spinning mills
in India, of which, 1889 are located in Tamilnadu. The spinning mills in the State comprise 18 Co-
operative Spinning Mills (5 functioning), 17 National Textile Corporation Mills (7 functioning) and
1854 Private Mills (including 23 Composite Mills). Those spinning mills provide employment for around
2.40 lakh persons. The capacity of the spinning mills in the State is around 18.92 million spindles. The
State produces about 1612 million kg. of spun yarn per year and this is about 40% of the spun yarn
produced per year in the entire nation.

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2.04 Garment and Hosiery

The Garment Sector in Tamil Nadu is one of the fast growing sectors in the textile industry. It
is located substantially around Chennai City, with specialization in cotton fibre garments. The
Hosiery Units in Tamil Nadu are located at Tiruppur and are manufacturing Knitwear Garments to the
tune of Rs.11000 crore per annum. There are around 4000 knitwear and woven garment production units
in the State provide employment to around 5 lakh persons.

2.05 Processing

The processing sector determines the core product value, product quality and has tremendous
scope for innovations and control over the final output. Processing is an important value added segment
in the Textile Industry. There are about 10397 Hand Processing Units and 2510 Power Processing Units
in India, out of which 2614 Hand Processing Units and 985 Power Processing Units are located in Tamil
Nadu.

PROFILE OF TEXTILE INDUSTRY

All
Item Tamil Nadu
India
SPINNING SECTOR
No. of Spinning Mills 3069 1889
Workers (in lakh) 8.94 2.40
Spindles (in Million) 39.27 18.92
POWERLOOM SECTOR
Powerlooms (in 19.03 3.66
lakhs)
Workers (in lakhs) 47.57 9.14
HANDLOOM SECTOR
Handlooms 34.86 4.13
(in lakhs)
Weavers (in lakhs) 65.50 6.08
Handloom Cloth
Production 6.00 0.70
(Bn. Sq. Mt)
Value (Rs. in crore) 18000 1700

OTHER SECTORS
Power processing 2510 985

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 units
Hand processing
10397 2614
units
Knitwear and
8000 4000
Garment units

3. HANDLOOM DEVELOPMENT SCHEMES

3.01 Production of Dhoties and Sarees for

Free Distribution Schemes

(i) Free supply of Dhoties and Sarees to

the poor people during Pongal

The scheme of Free Supply of Dhoties and Sarees to the poor people as announced in the
Budget for the year 2008-09 was implemented at a cost Rs.256 crore. This scheme provided continuous
employment to 15,000 handloom weavers and 25,000 powerloom workers in the co-operative fold and
fulfilled the clothing needs of nearly 3.053 crore poor people. Under this scheme, 152.15 lakh dhoties and
153.15 lakh sarees were produced by the Handloom and Powerloom Weavers’ Co-operative Societies
and supplied towards distribution for Pongal 2009. The distribution of Dhoties and Sarees for Pongal
2009 was inaugurated on 01.01.2009 by the Hon’ble Chief Minister.

The Government of Tamil Nadu issued orders to continue the scheme of Free Supply of Dhoties
and Sarees to the poor people for the year 2009-10

and also sanctioned an amount of Rs.256 crore for the production and distribution of 159 lakh Dhoties
and 159 lakh sarees during Pongal 2010.

(ii) Free Dhoties and Sarees to Old Age Pensioners during the festivals of Deepavali and
Pongal

Dhoties and Sarees required for free distribution to Old Age Pensioners during the festivals of
Deepavali and Pongal are also being produced annually through weavers Cooperatives in the State.
During the year 2008-09, 5.71 lakh Dhoties and 23.50 lakh sarees to the value of Rs.33.04 crore were
produced by the Societies and supplied. For production and distribution of Dhoties and Sarees required
for Old Age Pensioners for the year 2009-10 about 6 lakh dhoties and 24 lakh sarees are being produced
by the Societies.

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 3.02 Free Distribution of Uniforms to School Children

During the academic year 2008-2009, the Scheme of Free Supply of Uniforms to School Children
has been implemented covering 56.95 lakh school children at the cost of Rs.56.09 crore.

Handlooms and Textiles Department produces the cloth material through Weavers Co-operative
Societies and supply to the Departments of Social Welfare, Adi-Dravidar and Tribal Welfare, Backward
Classes and Minorities Welfare, Most Backward Classes and Denotified Communities Welfare for
distribution to the students.

This scheme has been continued for the academic year 2009-10 also. The entire requirement of
Uniform cloth is being produced by the Handloom and Powerloom Weavers Co-operative Societies in the
State. The details are:-

Total No. of
quantity beneficiary
Name of the
in lakh students
Department
mtrs. (tentative)
Social Welfare 124.62 5363597
Adi-Dravidar and Tribal
20.80 291542
Welfare
Backward Classes and
1.53 23624
Minorities Welfare
Most Backward
Classes and Denotified 3.38 16998
Communities Welfare
Total 150.33 5695761

3.03 Free Power Supply to Handloom and Powerloom Weavers

The Government of Tamil Nadu is implementing the scheme of providing free power supply upto
100 units bimonthly to handloom weavers and 500 units bimonthly to powerloom weavers with effect from
01.08.2006. As on 31.03.2009, service connections are provided to 1,45,393 handloom weavers and to
1,05,224 powerloom weavers (who run their own powerlooms).

This scheme will be continued for the year 2009-10.

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3.04 Rebate Subsidy Scheme

The Government of Tamil Nadu is providing financial assistance to compensate Rebate extended
to customers so as to promote the sale of handloom cloth by reducing the price considerably so as to
compete with powerloom and mill made cloths in the market. This scheme not only enables the primary
weavers co-operative societies and Co-optex in liquidating their stock, but also aims at protecting
the Handloom Industry from severe competition to safeguard the handloom weavers from the onslaught
of the Mill and Powerloom Sector.

The primary weavers co-operative societies and Co-optex allow rebate for the sale of handloom
cloth throughout the year for the retail and wholesale subject to a ceiling of 20% or Rs.100/- per unit
whichever is less for cotton varieties and 20% or Rs.200/- per unit whichever is less for silk varieties.

During the year 2008–2009, a special rebate of 10% without ceiling in respect of sale of silk
fabrics (cost exceeding Rs.2001/-) during selective festivals was granted. As a result of this special rebate
at silk goods worth Rs.140.16 crore were sold.

Apart from this, on the eve of birthday of Perarignar Anna, an additional 10% Special rebate was
allowed along with normal rebate of 20% on the sale of cotton and silk varieties with ceiling of Rs.150/- for
cotton and Rs.300/- for silk. By availing this additional 10% special rebate, handloom goods worth
Rs.324.25 crore were sold.

The Government of India also contributes to the Rebate Scheme and provides assistance under
Marketing Incentive Component of Integrated Handloom Development Scheme. As per the guidelines,
primary weavers co-operative societies are eligible to avail financial assistance under Marketing Incentive
at 10% of the average sales turnover of previous 3 years. As per the policy of the State Government, the
excess expenditure over and above the Government of India’s contribution under Marketing Incentive
component of the Integrated Handloom Development Scheme will be borne by the State Government.

During the year 2008-09, Rebate Subsidy to the extent of Rs.118 crore were sanctioned to the
Primary Weavers Co-operative Societies and Co-optex, of which, the Government of India have
reimbursed a sum of Rs.35,85,32,101/- as Central assistance under Marketing Incentive Component of
Integrated Handloom Development Scheme.

This apart, the Government of India, during the year 2008–2009, have also reimbursed a sum of
Rs.4,05,75,828/- under the “Scheme for reimbursement of one time rebate @ 10% given on sale of
handloom products” .

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 The Rebate Subsidy Scheme will be continued for the year 2009-10.

3.05 Integrated Handloom Development Scheme

The Centrally Sponsored Scheme, namely, “Integrated Handloom Development Scheme”, which
aims at facilitating sustainable development of handloom weavers located in identified handloom clusters
into a cohesive, self managing and competitive socio-economic unit is being implemented in this State by
the Government of Tamil Nadu.

The major components of Scheme are,

(i) Cluster Development Programme;

(ii) group approach for development of Handlooms;

(iii) assistance for Handloom Organisations; and

(iv) assistance for Innovative ideas and Publicity, Monitoring, Supervision, Training and Evaluation of
Scheme

(i) Cluster Development Programme

The cluster development approach focuses on formation of weavers’ groups as a visible entity so
that the groups become self-sustainable. Under this programme, handlooms in the range of 300 to 500
looms grouped as handloom clusters and financial assistance to the tune of Rs.60.00 lakh is being
provided for each cluster over a period of three years, for various components, such as, skill upgradation,
purchase of new looms and accessories, setting up of dyeing units, common facility centers, opening of
showrooms, conducting exhibition/fairs, publicity, providing of design inputs etc.

The financial assistance provided under various components of Cluster Development Programme
is as below:-

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 Financial
Sharing
Sl. No Components Assistance per
GOI: State
cluster
1 Baseline Rs.1.25 lakh one 100% GOI
survey, time
diagnostic
study
formation of
Self Help
Groups
2 Formation of Rs.50,000/- one 100% GOI
consortium time

3 Corpus Fund Rs.3.00 lakh – 100% GOI

for yarn Depot one time
4 Design Rs.3.00 lakh for 50:50
Development purchase of
& Product Computer Aided
Diversification Textile Design
system (CATD),
colour forecast,
trend forecast –
one time.
Rs.6.00 lakh for 100% GOI
engaging
designer – for 3
years
5 Common Rs.30.00 lakh Common
Facility one time Facility
Centre / Dye Centre –
House 100% GOI
(Ceiling of Dye
50% of the house:
total project GOI 80% :
cost) State 20%

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 Sharing
Sl. Financial Assistance
Components GOI:
No per cluster
State
6 Publicity & Rs.50,000/- towards
Marketing advertisement, 75:25
(Ceiling of 20% brochure, catalogue –
of the total over a period of three
project cost) years
Rs.6.00 lakh for three
exhibitions / fairs – 75:25
over a period of three
years
Rs.3.00 lakh for six
buyer seller meet – 75:25
over a period of three
years
Rs.1.00 lakh towards
market survey 75:25
/intelligence – one
time
Rs.3.00 lakh towards
awareness & exposure 100%
visit @ Rs.3,000 per GOI
weaver – over a period
of three years
Rs.25,000/- towards
development and 100%
hosting of website – GOI
one time
7 Project Rs.7.20 lakh @
management Rs.2.40 lakh per year 100%
cost over a period of three GOI
years.

The Government of India had sanctioned 9 clusters during 2008-09 at a project cost of Rs.512.34
lakh and released Rs.146.50 lakh towards first instalment. Besides, 3 more clusters at Esalem,
Thirumalpur and Dadagapatti were also sanctioned by Government of India during the same year and the
Cluster Programme is being implemented by Weavers Service Centre. Altogether, cluster development
programme is being implemented in 40 handloom clusters in Tamil Nadu. The details are as below:-

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 Project
Name of the
Sl. Year of cost
Handloom District
No Sanction (Rs.in
Cluster
lakhs)
1. Tiruchirapalli Tiruchira Phase-I 200.00
palli (2006-07)
2. Tiruvanna Tiruvanna (Imple- 200.00
malai malai menting
3. Kurinjipadi Cuddalore Agency : 200.00
Co-optex /
Textile
Committee)

Name of the Project cost

Sl. Year of
Handloom District (Rs.in lakhs)
No Sanction
Cluster
4. Nilaiyur Madurai 59.70
5. Veeravanallur Tirunelveli 59.70
6. Pathirivedu Thiruvallur 59.70
7. Jayankondam Perambalur 59.70
8. Kandachi Villupuram Phase-II 59.70
puram (2007-08)
9. Appakoodal Erode 59.70
10. Sholingar Vellore (Implementing 59.70
11. Sirumugai Coimbatore Agency : 59.70
12. Thandam Erode Co-optex) 59.70
palayam
13. Palani Dindigul 59.70
14. Emanes Ramanatha 59.90
waram puram
15. Vengamedu Karur 60.00
16. Edappadi Salem 52.60
17. Dasappa Erode 59.08
Goundan Phase-III
pudur (2007-08)
18. Chennimalai Erode 58.30
19. Palliyadi Kanniya (Implementing 58.50
kumari Agency :
20. Tiruppur Tiruppur Department of 59.00
21. Punalveli Virudhunagar Handlooms 55.00
22. Thirubuvanam Thanjavur and Textiles) 58.10
23. Attayampatti Salem 59.99
24. Vandiyur Madurai 60.00
25. Sayarpuram Tirunelveli 59.00
26. Chinnalapatti Dindigul 59.00
27. Gudiyatham Vellore 60.00
28. Pudupettai Cuddalore 58.25

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 Project
Sl. Name of the cost
Year of
No Handloom District (Rs.in
Sanction
Cluster
lakhs)
29. Pillayar Kanchee 56.00
palayam puram Phase-IV
30. Nadu Cuddalore (2008-09) 42.00
veerappattu (Implement-
31. Ayyampettai Thanjavur ing Agency : 60.00
32. Paramathi Namakkal Tamilnadu 60.00
vellore Handloom
33. Pollachi Coimbatore Development 59.75
34. Paramakudi Ramanatha Corporation) 60.00
puram
35. Sellur Madurai 54.59
36. Srivilliputhur Virudhu 60.00
nagar
37. Doddam Erode 60.00
palayam
38. Esalem Villupuram (2008-09) 60.00
39. Thirumalpur Vellore (Implement- 60.00
40. Dadagappatti Salem ing Agency : 60.00
Weavers
Service
Centre)

The Cluster Development Programme will be continued during the year 2009-10.

(ii) Group Approach for development of handlooms

Handloom Weavers, who are not covered by clusters, will be benefited under ‘Group Approach’
component of Integrated Handloom Development Scheme. A Group should have preferably 10
weavers or more which can be in the form of Self Help Group / Primary Weavers Co-operative Society /
other independent / individual weavers.

The pattern of financial assistance under the Group Approach of Integrated Handloom
Development Scheme is as below:-

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 Financial
Funding Pattern
Sl. Assistance
Component GO Benefi-
No Rs. GOI
TN ciary
1 Basic input
a) Margin 6000 70% 20% 10%
Money
b) Purchase of 8000 70% 20% 10%
New Looms
c) Purchase of 4000 70% 20% 10%
Dobby
d) Purchase of 6000 70% 20% 10%
Jacquard
e) Purchase of 2000 70% 20% 10%
Loom
Accessories

Financial
Funding Pattern
Sl. Assistance
Component GO Benefi-
No Rs. GOI
TN ciary
2 Skill Upgradation Training (20 Weavers)
a) Weaving 3,00,000 100% - -
b) Dyeing 1,00,000 100% - -
c) Designing 50,000 100% - -
d) Managerial 25,000 100% - -
Training
3 Workshed ( 20 sq. mts area)
a) Below the 25000 Rs. -- -
Poverty line 25000
(100%)
b) Above the 25000 Rs. 6250 (25%)
Poverty line 18750 to be borne by
(75%) State
Government/
Beneficiary

The Government of India have sanctioned Rs.6,58,01,225/- for implementation of 74 Group

Approach Projects for the year 2008-09 and have released Rs.3,30,70,897/- towards first instalment. The
Government of Tamil Nadu have released a sum of Rs.79,41,205/- towards the project. The project is in
progress. The Group Approach Scheme will be continued during the year 2009-10.

(iii) Financial Assistance to the Handloom Organisations

a) Marketing incentive

Marketing Incentive is granted on the sale of handloom products to maintain price competitiveness
in the market. It is extended to the State Handloom Corporations, Apex Co-operative Societies, Primary

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Weavers Co-operative Societies and National Handloom Organisations. Handloom agencies are utilizing
this amount towards activities to attract the consumers to improve sale of handloom goods. The quantum
of financial assistance shall be 10% of the average sales turnover of the previous 3 years.

b) Strengthening of Handloom Organisations

Under the component of Strengthening of Handloom Organisations, financial assistance is

provided towards restructuring of National and State Level Handloom Organisations such as
Handloom Corporations, Apex Handloom Co-operative Societies etc., with a view to make them viable
by enhancing their credit limit / working capital. The funding pattern under this component shall be on
50:50 sharing basis between the Government of India and the State Government.

(iv) Assistance for Innovative Ideas and Publicity, Monitoring, Supervision, Training and
Evaluation of Scheme

Under this component, upto 10% of the project cost may be utilized towards innovative ideas and
2% of the project cost may be utilized towards Publicity, Monitoring, Supervision, Training and Evaluation
of Scheme.

3.06 Interest Subsidy Scheme

The Handloom Weavers Co-operative Societies avail financial assistance for working capital
through District Central Co-operative Bank under National Bank for Rural Development (NABARD)
refinance scheme. With a view to enable the Handloom Weavers Co-operative Societies to compete with
mills and other sectors, “Interest Subsidy Scheme” was implemented by the Government of Tamil Nadu
for providing working capital at normal rate of interest and the interest subsidy of 3% was paid by the
Government. However, the interest subsidy scheme was discontinued with effect from 01.10.2002.

The Government of Tamil Nadu have now re-introduced the interest subsidy scheme to
Handloom Weavers Co-operative Societies and provide 4% subsidy from the year 2008-09 (with effect
from 01.04.2008), thereby reducing the interest rate for the working capital. As per this system, the
Handloom Weavers Co-operative Societies, after availing cash credit loan from District Central Co-
operative Banks at the rate of interest charged by them will send interest subsidy claims to the Director of
Handlooms and Textiles, which will be sanctioned on quarterly basis.

During the year 2008-09, Rs.7.17 crore was sanctioned towards interest subsidy for the quarter
ended 30.6.2008, 30.9.2008 and 31.12.2008. Further, a sum of Rs.2.53 crore will be sanctioned for the
quarter ended 31.03.2009. This scheme will be continued during the year 2009-10.

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 3.07 Special Project for Handloom Weavers under Swarna Jayanthi Gram
Swarozgar Yojana (SGSY)

To motivate the handloom weavers, hitherto engaged in the production of products for Free
Supply of Dhoties and Sarees Scheme, to enter into design development and product diversification for
producing marketable varieties and ensure higher income, a special project for handloom weavers under
‘Swarna Jayanthi Gram Swarozgar Yojana’ has been implemented by the Handlooms and Textiles
Department of the State at a total cost of Rs.2530.36 lakh. The various components covered under this
project are as below:
Sl. Project cost
Component
No (Rs in lakh)
1. Training and capacity building 110.02
2. Design Development 163.15
3. Skill upgradation 519.75
4. Creation of additional employment
107.44
and value addition
5. Infrastructure Development and
220.00
Asset Creation
6. Technology Upgradation 980.00
7. Marketing 430.00
Total 2530.36

The Government of India have released Rs.1085.94 lakh and the State Government have
released Rs.361.98 lakh for the above scheme towards first phase.

The achievements made under the above scheme are as below:-

(i) Training has been imparted to12,506 handloom weavers in producing dress materials, furnishing,
table cloth, floor mat, stole, shirting, sarees, kitchen linen, towels etc.

(ii) 26,237 new designs have been developed.

(iii) 2,096 new looms have been provided.

(iv) 12,506 looms were upgraded with requisite accessories.

(v) A separate brand name “IZHAI” for the products of this scheme had been created.

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 (vi) Brochures have been designed and developed.

(vii) Portal Design for this project has been designed and uploaded in Tamil Nadu Government
website, in the address of www.izhai.tn.gov.in and launched by the then Hon’ble Minister for Local
Administration and presently the Hon’ble Deputy Chief Minister on 19.03.2008 during Expo’2008.

(viii) A Documentary film titled “Oru Izhayin payanam” produced at a cost of Rs.30.00 lakh, by
National Film Development Corporation was released on 19.03.2008 by the then Hon’ble Minister
for Local Administration and presently the Hon’ble Deputy Chief Minister.

(ix) The fabrics produced out of this project are being converted into value added products. It is being
done through surface ornamentation such as embroidery, different kinds of embellishments etc.

(x) The Fabrics are marketed through CO-OPTEX.

(xi) An exclusive air-conditioned showroom for “IZHAI” products has been inaugurated in Co-
optex complex by the then Hon’ble Minister for Local Administration and presently the Hon’ble
Deputy Chief Minister on 19.03.2008. Goods worth Rs.12.00 lakh have been sold through this
outlet.

3.08 Handlooms (Reservation of Articles for Production) Act, 1985

To safeguard the interest of the handloom weavers and the handloom industry, the Government of
India have enacted the Handlooms (Reservation of Articles for Production) Act, 1985 and by that 11
items are exclusively earmarked for the production in handlooms. They are as below:-

1. Saree 2. Dhoty
3. Towel/Gamcha and 4.
Lungi
Angavastram
5. Chaddar 6. Jamakkalam /
Mekhala / Phanek Durry or Durret
7. 8. Barrack Blanket,
Dress Material Kambal or
Kamblies
9. Shawl, Loi, Muffler, 10.
Woollen Tweed
Pankhi etc.
11. Khes / Bedsheet / Bedcover/ Counterpane /
Furnishing (including tapestry, upholstery)

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 The strict and effective implementation of the Handlooms Reservation Act, 1985 is monitored by
an Enforcement Machinery in the State of Tamil Nadu consisting of Deputy Director (Enforcement) at
Chennai and 5 Assistant Enforcement Officers at Tiruppur, Erode, Salem, Tiruchengode and Madurai.
During the year 2008-09 about 41854 powerlooms were inspected by the enforcement.

Besides, to propagate the provisions of the Handlooms Reservation Act and safeguard the
Handloom Industry, vigorous awareness campaigns organized periodically in powerloom concentrated
areas.

The strict implementation and effective monitoring of the Handlooms Reservation Act, 1985 will be
continued for 2009-10.

3.09 Prize Award Scheme for the Best Exporters

With a view to encourage the export trade of handloom cloth and to widen their market in foreign
countries, the Government of Tamilnadu is implementing the scheme to award prizes to the Best
Exporters in Tamilnadu. This scheme has been implemented from 1975. Under this scheme, Trophies
and Certificates to the best exporters including primary weavers co-operative societies are distributed.

4. WELFARE SCHEMES FOR HANDLOOM WEAVERS

4.01 The Co-operative Handloom Weavers Savings and Security Scheme

The "Co-operative Handloom Weavers' Savings and Security Scheme" has been implemented in
the State from the year 1975, to encourage the saving habits among handloom weavers. The
Government of India had participated in the Scheme from the year 1985-86 to 2006-07 and contributed its
share under the Central Thrift Fund Scheme.

Under this scheme, each Weaver of the Weavers’ Co-operative Society contributes 8 paise per
rupee of wages earned; the State Government is contributing 4 paise per rupee of wages. Accordingly,
the total subscription of 12 paise is being deposited in the Government Account for which the State
Government allows 9.5% interest. Out of this, 6.5% is being credited to the weaver member’s account
and the remaining 3% is being utilized for implementing the Old Age Pension Scheme and the Family
Pension Scheme for handloom weavers. About 80,031 weavers as on 31.03.2009 are enrolled in this
scheme.

17
 The State Government of Tamil Nadu have sanctioned an amount of Rs.4,48,84,147/- for this
scheme towards State’s share and Rs.14,75,95,584/- towards interest on the deposits of Tamil Nadu
Co-operative Handloom Weavers Savings and Security Scheme Fund Account for the year 2008-09.

4.02 Tamil Nadu Co-operative Handloom Weavers Old Age Pension Scheme

The Government of Tamil Nadu have been implementing Old Age Pension Scheme for handloom
weavers coming under the co-operative fold with effect from 01.04.1997. The members enrolled in the
Savings and Security Scheme on attaining the age of 60 years become eligible to avail Old Age
Pension of Rs.400/- per month. Old Age Pension as on 31.03.2009 has been sanctioned to 15,338
handloom weavers. During the year 2008–2009, the Government of Tamil Nadu sanctioned Rs.669.81
lakh towards implementation of the Scheme. The scheme will be continued during the year 2009-10.

4.03 Tamil Nadu Co-operative Handloom Weavers Family Pension Scheme

The Tamil Nadu Co-operative Handloom Weavers Family Pension Scheme has been
implemented by the Government of Tamil Nadu with effect from 01.01.1992. According to this scheme, in
the event of death of a co-operative handloom weaver / member, before attaining the age of
60 years, the nominee of the deceased weaver will be paid Family Pension of Rs.550/- per month for
10 years from the date of death of the weaver. The Family Pension has been sanctioned to 1153 families
of the deceased handloom weavers as on 31.03.2009. During the year 2008–2009, the Government
have sanctioned an amount of Rs.74.16 lakh for this scheme and this scheme will be continued during
2009-10.

4.04 Health Insurance Scheme for handloom weavers

The Government of India have introduced a new Health Insurance Scheme for Handloom
Weavers from the year 2005-06 with an objective to protect and improve their health condition. This
Scheme has been implemented through ICICI Lombard General Insurance Company Limited.

Under this scheme, the total premium to be paid to ICICI Lombard General Insurance Company
Limited would be Rs.781.60 per weaver per annum, of which, the Government of India's contribution is
Rs.642.47, State Government’s contribution is Rs.89.13 and the weaver's contribution is Rs.50/-. Apart
from the State’s contribution of Rs.89.13, the Government of Tamil Nadu is the first State to have shown
the way by contributing the annual premium of Rs.50/- payable by the weaver on his behalf.

18
 All handloom weavers are eligible under the scheme. From the year 2007-08, the scheme was
also extended to ancillary handloom workers engaged in warping, sizing, dyeing, printing etc., Under this
scheme, 2,89,023 weavers are enrolled as on 31.03.2009.

Under this scheme, 4 members of weaver’s family are eligible to avail medical assistance upto
Rs.15,000/- annually. The ICICI Lombard shall pay / reimburse expenses incurred by the weavers in
course of medical treatment availed of in any of the empanelled hospital or nursing homes within the
Country.

During the year 2008-09, the Government of Tamil Nadu have incurred an expenditure of
Rs.4,02,11,770/- towards payment of premium to 2,89,023 handloom weavers / ancillary handloom
workers.

The details of medical claims sanctioned and the amount settled by ICICI Lombard General
Insurance Company Limited during the previous three years are as below:-
Amount
No. of Medical
Sl. paid
Year claims
No. (Rs. in
sanctioned
lakh)
1. 2006-07 88377 964.58
2. 2007-08 137264 1287.95
3. 2008-09 525257 1523.17

This scheme will be continued during the year 2009-10.

4.05 Mahatma Gandhi Bunkar Bima Yojana (Insurance Scheme for Handloom Weavers)

The Insurance Scheme known as “Mahatma Gandhi Bunkar Bima Yojana" has been launched by
the Government of India in collaboration with Life Insurance Corporation of India has been implemented
by the Government of Tamil Nadu from 2004-05. The total premium payable to Life Insurance
Corporation would be Rs.330/- per weaver/ per annum, of which Rs.150/- will be contributed by
Government of India, Rs.100/- will be contributed by Life Insurance Corporation of India and the premium
of Rs.80/- payable by the weaver would be contributed by the Government of Tamil Nadu on behalf of the
insurer. All handloom weavers are eligible under the Scheme. As on 31.03.2009, 2,39,120 handloom
weavers have been enrolled under this scheme.

19
 The Compensation to the insurer is as below:

Rs.60000/- along with

Natural
a. Co-optex contribution of
Death
Rs.15,000/-
b. Accidental Rs.150000/- along with
Death Co-optex contribution of
Rs.15,000/-
c. Total Rs.150000/-
Disability due
to accident
d. Partial Rs.75000/-
Disability due
to accident

In the past four years, Compensation of Rs.611.80 lakh has been paid to 1382 families of deceased
handloom weavers.

The Government of Tamil Nadu on behalf of the weavers, during the year 2008-09, have paid
Rs.1,91,29,600/- to the Life Insurance Corporation of India towards premium.

This scheme will be continued during the year 2009-10.

4.06 Awarding Scholarships under Dr. M.G.R. Handloom Weavers' Welfare Trust

The wards of the weavers are encouraged to pursue higher studies by the award of scholarships
by Dr. M.G.R. Handloom Weavers' Welfare Trust established in 1986, to one male and one female
student in 29 disciplines and for undergoing coaching classes for Civil Services examinations. The
students scoring highest marks in 10th and 12th Standard are also felicitated with cash awards.

The details of scholarship to the wards of weavers under Dr. M.G.R. Handloom Weavers’ Welfare
Trust are as below:-

20
 Sl. Scholarship
Discipline Amount
No. Rs.
1 M.B.B.S./BDS/BE/B.Tech./BVSC. 3500

2 B.Sc.,Agri/Horticulture/B.Pharm 3000
B.Sc.,Nursing/Hotel Management and 2500
3
Catering
4 M.E./M.Tech./MD/MS 3500
5 M.Com./MA/MSc./MBA/MCA/CA 3500
B.A./B.Sc.,/B.Com./BBA/BBM/BCA/B.Sc., 2500
6
(CS)
7 Polytechnic 2500
8 I.A.S./I.P.S./Bank Officers Exam 2500
9 +2 Highest Mark 2500
th
10 10 Highest Mark 2000
Diploma in Physiotherapy / Handloom 3000
11
Technology

At present, 87 students are awarded with scholarship under this scheme. This scheme will be
continued during the year 2009-10.

4.07 Scholarship to Students of Indian Institute of Handloom Technology

The wards of weavers are given priority in selection to the 3-year Diploma in Handloom
Technology courses conducted by the Indian Institute of Handloom Technology, Salem and also awarded
with scholarships as detailed below:

First year : Rs.400/- per month

Second year : Rs.450/- per month
Third year : Rs.500/- per month

The students are also paid Rs.60/- per month to purchase books. A tour allowance of Rs.200/-
per annum is also being given to the second year students. The scholarship amount is met from out of the
Education Fund of the Tamil Nadu Co-operative Union.

The wards of weavers of Tamil Nadu studying in the Indian Institute of Handloom Technology at
Gadag (Karnataka) and Venkatagiri (Andhra Pradesh) are also paid stipend from the Education Fund of
Tamil Nadu Co-operative Union. Now, 97 students are awarded scholarships under this scheme. This
scheme will be continued during the year 2009-10.

21
 4.08 Scholarship under Shiksha Sahayog Yojana

The Shiksha Sahayog Yojana is one of the components of Mahatma Gandhi Bunkar Bima Yojana.
Under this scheme, scholarship is extended to the children (restricted to 2 children of each family) of
handloom weavers who are members of the Mahatma Gandhi Bunkar Bima Yojana. The scholarship is
provided for the children studying in Std. IX to XII at Rs.1,200/- per annum per child for a maximum period
of 4 years or till they complete XII std.

The details of scholarship paid to the children of weavers for the past 5 years are as below:

No. of Amount paid

Year
Students (Rs.in Lakh)
2004-05 9473 85.26
2005-06 14424 148.58
2006-07 23555 250.37
2007-08 25970 216.80
284.68
2008-09 29545
(to be disbursed)

4.09 Prize Award Scheme for Best Talented Weavers

The Government of Tamil Nadu is implementing Prize Award Scheme every year for best weavers
who have developed new designs in cotton and silk varieties etc., The prizes for the best designs are as
below:

First Prize : Rs.5,000/-

Second Prize : Rs.3,000/-
Third Prize : Rs.2,000/-

The expenditure under this scheme is being met from the Co-operative Research and Development
Fund of the Tamilnadu Co-operative Union (TNCU). This scheme will be continued during the year 2009-
10.

22
 5. OTHER INITIATIVES TAKEN BY THE DEPARTMENT

5.01 Encouragement to weavers in export activities

i) Deemed Exports

The Department of Handlooms and Textiles has given a thrust to Handloom Exports by
encouraging the weavers to bring out export oriented production. At present, 24,357 looms in 394
weavers’ co-operative societies are engaged in export oriented production through Deemed Exports. By
engaging in the export business, the weavers are getting higher wages, apart from getting continuous
employment. During the year 2008-09, export varieties such as bed linen, bedspreads, table linen,
aprons, curtains, terri-towels, kitchen linen, napkins, floor mats etc., to the tune of Rs.291.81 crore have
been exported.
During the year 2009-10, it has been proposed to engage more number of weavers in the export
oriented production for increasing the export turnover to around Rs.325 crore.

ii) Handloom Export Zone

The Department of Handlooms and Textiles jointly with Handloom Export Promotion Council
(HEPC) is implementing a Special Project to develop “Handloom Export Zones” in Nagercoil at a project
cost of Rs.151.92 lakh for the benefit of 550 weavers.

The 1st phase of implementation was over and a sum of Rs.45.06 lakh was incurred. The Second
phase is under implementation at an outlay of Rs.106.86 lakh.

Under the above project, emphasis is laid on skill upgradation and design development for the
weavers for producing export varieties by having a link with the leading exporters, to help the weavers to
earn more wages.

5.02 Conduct of Exhibitions

To promote marketing of handloom goods and to improve the level of awareness among the
handloom weavers and general public in the interest of overall handloom sector, the Handlooms and
Textiles Department has conducted 28 District Level Exhibitions at various places viz. Kancheepuram,
Salem, Madurai, Dindigul, Tiruchirapalli, Thanjavur, Coimbatore, Tirunelveli, Nagercoil, Theni, Cuddalore,

23
Villupuram, Erode, Tiruvannamalai, Vellore, Virudhunagar, Ramanathapuram and Karur. Special
Handloom Exhibition at Nagercoil and Coimbatore were conducted during the year 2008-09 with the
financial assistance of Government of India. The total sales effected during the above Exhibitions was
Rs.11.18 crore. Besides, National Handloom Expo was organized by Co-optex in Chennai during 2009
and sales to the tune of Rs.4.45 crore was generated therein. This apart, the Handlooms and Textiles
Department has conducted 3 more exhibitions at Chennai and generated sales to the tune of Rs.0.85
crore.

This activity will be continued during the year 2009-10.

5.03 Waiver of Weavers Housing Loan availed from Housing and Urban Development
Corporation (HUDCO)

To implement the House-cum-Workshed Scheme meant for Co-operative Handloom Weavers,

HUDCO sanctioned loan to the handloom weavers. When the financial position of the weavers was not
conducive to repay the loan, the Government of Tamil Nadu had agreed in principle to waive the Housing
Loan of weavers as on 31.03.2008 and decided to make the payment to HUDCO as and when instalment
of repayment falls due from the year 2008 – 2015 as per loan schedule. With regard to reimbursement
of repayment already made to HUDCO by Co-optex, the Government have decided to settle the amount
of Rs.2,71,16,934/- in three annual instalments. Accordingly, a sum of Rs.2,16,27,549/- due to HUDCO
for the year 2008-09 and first instalment amount of Rs.90,38,978/- due to Co-optex have been
sanctioned by the Government.

5.04 Powerloom Weavers Welfare Board

As announced in the Budget 2008-09, a welfare board for powerloom weavers has been
constituted under the “Tamil Nadu Manual Workers (Regulation of Employment and Conditions of work)
Act, 1982”. A sum of Rs. 1 crore has been allocated and the welfare measures would be implemented
through this Board.

5.05 Modernisation of Warping and Sizing Unit

To fulfill the warping and sizing requirement of Weavers Co-operative Societies in Southern
Districts, the Warping and Sizing Unit at Nagercoil has been modernised in March 2009 at a cost of Rs.30
lakh.

24
 5.06 Setting up of Training Institute for weavers at Erode

The Handloom Industry has been exposed to severe competition from the onslaught of
Powerloom and other sub sectors of the Textile Industry in the wake of Globalization. To equip the
Handloom Weavers to face the competition and related challenges, they have to be trained in
upgraded technologies of weaving. The training should be a continuous process for the weavers to
upgrade their knowledge constantly.

On this basis, a Training Institute at Erode has been established at a cost of Rs.25.71 lakh to
impart training to the Handloom Weavers enrolled in the Weavers Co-operative Societies.

The training will be imparted in batches of 50 weavers in a batch for a duration of one month.
The institute will commence its function shortly.

5.07 Upgradation of Handlooms

Mechanization of pre-loom and post-loom activities was carried out in 25 handloom weavers’
clusters at a cost of Rs.1.61 crore.

The Handlooms and Textiles Department is also taking steps to provide improved looms to the
handloom weavers for production of Korvai varieties. To reduce the drudgery in weaving, technology
upgradation in handlooms has also been undertaken

by the Department, so as to increase the productivity of the handloom weavers.

5.08 Training to Designers

To improve the marketing of handloom products 100 designers of handloom weavers co-operative
societies have been given training on Computer Aided Textile Designs (CAD) in co-ordination with
National Institute of Fashion Technology at a cost of Rs.5 lakh.

5.09 Setting up of Common Facility Centre

The Handlooms and Textiles Department would construct 50 Common Facility Centres in the
weavers concentrated areas at a total cost of Rs.1.50 crore at the rate of Rs.3 lakh each. Construction

25
work in respect of 28 Common Facility Centres were completed and it is in progress in remaining 22
Centres.
5.10 Upgradation of Powerlooms

The Handlooms and Textiles Department has identified 1000 weavers in the powerloom
concentrated areas, such as, Tiruchengode, Salem, Coimbatore, Erode and Madurai towards upgradation
of powerlooms by providing a subsidy of Rs.5000/- each at a total cost of Rs.50 lakh during the year
2008-09. This is to upgrade the ordinary powerlooms into sophisticated powerlooms to improve the
quality of products to match international standard.

5.11 Scheme for Integrated Textile Parks (SITP)

Two textile parks under the “Apparel Park for Exports Scheme (APES)” ; Four projects under the
“Textile Centre Infrastructure Development Scheme (TCIDS)” and seven textile parks under the Scheme
for Integrated Textile Parks (SITP) to upgrade the Handloom industry with world-class infrastructure
facilities to meet international standards to augment export and generate employment, have been
established in the State of Tamil Nadu by the Government of India at a total project cost of Rs.774.41
crore.
These Textile Parks generate direct and indirect employment. The details are as below:-
Indirect Employment
Name of the Project

Date of Completion
ment Generation
Year of Sanction

(No. of persons)

(No. of persons)
Direct Employ-
(Rs. in Crore)
Project Cost
No.
Sl.

Apparel Park for Exports Scheme (APES)

Netaji
Apparel
1. 17.62 2002 7000 9000 Completed
Park,
Tiruppur
Apparel
Park at Commenced
2. 26.70 2004 10000 10000 Production
Irungattu
kottai
Textile Centre Infrastructure Development Scheme (TCIDS)
Completed
Kanchee Infrastructure
3. 21.81 2004 (Except
puram Development CETP)
Windmill
Project for Wind Power
4. 25.00 2003 Completed
TEKIC, Generation
Tiruppur
Cauvery Hi-
Tech
Weaving Commenced
5. 33.32 2005 1200 15000 Production
Park,
Kumara
palayam

26
 Indirect Employment
Name of the Project

Date of Completion
ment Generation
Year of Sanction

(No. of persons)

(No. of persons)
Direct Employ-
(Rs. in Crore)
Project Cost
No.
Sl.

Scheme for Integrated Textile Parks

Hi-Tech

Completed and
Commenced
6. Weaving Park 55.42 2005 2500 3500

Production
at Palladam
Hi-Tech
Weaving Park
7 34.82 2006 1500 1500
at Kumara
palayam
Integrated
Textile Park at October
8. 149.45 2006 5000 7500
Chengapalli, 2009
Erode District
SIMA
Processing October
9. 112.60 2007 5000 15000
Park at 2009
Cuddalore
Integrated
October
10. Textile Park at 87.86 2007 3000 4000
2009
Madurai
Integrated
October
11. Textile Park at 90.68 2007 3000 4000
2009
Karur
Hi-Tech Revised
12. Weaving Park 63.02 - 2300 4000 proposal
at Erode sent to
Govern-
Vaigai Hi-Tech
ment of
13. Weaving Park, 56.11 - 2580 15000
India for
Andipatti
approval
TOTAL 774.41 43080 88500

All these Special Projects help generate employment in the Rural and Semi Urban areas.

5 .12 Increase of Basic Wages of Co-operative Handloom Weavers

The longstanding grievance of the Co-operative Handloom weavers that their wages have not
been revised for more than a decade has been redressed by increasing their wages by 10% with effect
from 01.06.2008.

5 .13 Revision of Pay Structure of Employees of Weavers Co-operative Societies

The Pay Structure of Employees of Weavers Co-operative Societies was lastly revised on
01.07.1997. The Government, based on the request received from the Staff, revised the pay of the staff of

27
the Weavers Co-operative Societies based on the recommendation of Committee constituted to
streamline pay structure. By revised pay structure, the Employees are getting 27% increase on their
basic pay as on 31.12.2007. Around 4000 employees have been benefited.
6. PART II SCHEMES 2009-10

The following 6 schemes have been approved under Part II Scheme for the year 2009-10.

Amount
S.No. Name of the Scheme (Rs. in
lakh)
Assistance for Marketing
1. 4.00
Promotion Activities
Computerisation of the
2. 20.00
Directorate
Purchase of 5 Air-conditioners
for the conference hall of the
3. 2.00
Directorate of Handlooms and
Textiles
Purchase of 2 Digital Photo
4. Copier Machines for the 2.00
Directorate
Documenting the traditional
5. products of handloom clusters 5.00
in Tamilnadu (Co-optex)
Market Research Study of
6. Handloom Industry (Co- 7.00
optex)
Total 40.00

7. THE TAMIL NADU HANDLOOM WEAVERS' CO-OPERATIVE SOCIETY

LIMITED (CO-OPTEX)

General
The Tamil Nadu Handloom Weavers’ Co-operative Society Limited, popularly known as ‘CO-
OPTEX’ was established in the year 1935 with the main objective to organize and promote the handloom
industry in the co-operative sector. The organization thereby becomes the first Apex Handloom Weavers
Co-operative Society to celebrate its Platinum jubilee. The main function of Co-optex is to supply yarn to
Weavers Co-operative Societies and to market their products. Co-optex reaches the public with quality

28
handloom products through its 211 showrooms, of which 140 are within Tamil Nadu State and 71 are
outside the State.

Co-optex is the nodal agency for the following Government schemes:-

i. Free Distribution of Saree and Dhoti Scheme.

ii. Free Distribution of Saree and Dhoti Scheme to Old Age Pensioners; and
iii. Free supply of uniform to school children through Adi-Dravidar Tribal Welfare, Backward Classes,
Most Backward Classes and Social Welfare Departments.

Performance during 2008-2009

During the year 2008-2009, Co-optex procured handloom and powerloom products worth
Rs.375.52 crore from the weavers co-operative societies of the State. Co-optex has achieved a retail
sales of Rs.153.78 crore including an export sales of Rs.3.49 crore during 2008-09, marking an
improvement compared to the retail sales of Rs.131.02 crore achieved during the year 2007-08.

Co-optex ensures continuous employment to the weavers by introducing a policy change from
seasonal procurement to monthly procurement for its retail sales. The retail sales procurement has
improved to Rs.95.46 crore during the year 2008-09, compared to Rs.77.83 crore during the year 2007-
08.

The introduction and adoption of various market friendly strategies by Co-optex has resulted in
earning a record profit of Rs.12.35 crore during the year 2007-08. It is estimated that tentative net
profit to be earned for 2008-09 will be Rs.12.50 crore after the completion of audit.

Design Intervention

Co-optex has been continuously engaged in introducing new designs with attractive colour
combinations for its product range aiming at improving the overall sales. Some of the notable
developments through improved design interventions are as below:

(i) ‘Thirukkural Silk Saree’ with the image of Thiruvalluvar, legendary poet woven in the pallu and 1330
Kurals woven on the saree.

(ii) ‘Vanavil Silk Saree’ woven with 5 different colours both in the warp and the weft to present variant
colour combinations from every angle.

29
(iii) A portrait of Mahatma the Father of the Nation woven in ahimsa silk using superior quality zari in
which Dhandi Yathra and meeting with important National Leaders in the border.

(iv) ‘Chemmozhi Saree’ woven by using the Tamil alphabets of cæ® vG¤J, bkŒ vG¤J, cæ®bkŒ
vG¤J as motif in pallu, border and body of the saree.

(v) ‘Deepam Collection’, silk and cotton sarees with different kind of Deepams as motif was introduced
during Deepavali 2008.

(vi) ‘Oliyum Oliyum’ Silk Saree and Pavadai, with embroidery work having sound and light effect.

(vii)‘Puthinam Silk Saree Collection’ by recreating traditional designs of Kancheepuram Silk Sarees
using the traditional motif and colour combinations.

(viii) With an accent on the traditional value of the Silk and Cotton Sarees produced in traditional
handloom centres of Tamil Nadu, during Deepavali 2008, they were named as Mangani Saree
(Salem area), Renga Saree (Trichy and Jayankondam area), Parameswari Saree (Paramakudi
area), Thanigai Saree (Ponnai and Sholingar area), Sirumugai Saree

(Coimbatore area), Vannamayil Saree (Half Fine Zari Silk Saree Salem and Coimbatore area) Kothai
Saree (Aruppukottai area), Deepam Saree (Coimbatore area) Angaiyarkanni Saree (Madurai and
Dindigul area). This was with a view to attract niche customers.

(ix) Design intervention, in addition to sarees, was also extended to home textile products such as
Bedsheet, Bedcover, Bed spread, Table textiles, Kitchen textiles, Furnishing, Floor covering, etc. To
popularize home textile products, an exhibition in the name of ‘INIYA ILLAM’ was conducted during
December 2008 in Chennai.

(x) Co-optex also introduced new design in men’s wear highlighting the special features of each
product. Some of them are,

a) ‘Platinum Shirt’ produced out of super fine quality cotton

b) ‘Geo Shirt’ produced in 2 ply cotton yarn using dobby design
c) ‘Eco Linen Shirt’ produced in blend of cotton and natural linen yarn
d) ‘Cotton Suiting’ cloth produced in 100% cotton with special finish to provide soft feel in the
material.

30
(xi) ‘Kurtha material’ using fancy yarn in polyester viscose mix to attract the youngsters, Co-optex
launched Yuva Collection Chudidhar material in woven, printed and embroidery ranges.

(xii) During 2008-09, Co-optex has introduced 2055 new designs in its entire product range against the
target of 2000.

Training for Weavers in Designing

Under weaver-cum-designer project programme, Co-optex has appointed 11 Freelance Designers

and placed them at traditional handloom centres such as Kancheepuram, Arni, Coimbatore, Chennimalai,
Bhavani, Kumbakonam, Paramakudi, Madurai, Dindigul, Aruppukottai, Jayankondam etc for imparting
training to the weavers in designing. These Designers are providing necessary guidance in designing to
the weavers for design development in addition to creating their own new designs. This step is to help
the handloom weavers to adopt the modern trend in designing and produce customer friendly products.
This programme has been implemented during 2008-09 with a project cost of Rs.15 lakh.

Market Intervention
(i) To achieve increase in the Retail Sales, Co-optex has been conducting monthly exhibition at all
important showrooms by displaying products suitable for a particular season, like winter and
summer.

(ii) Co-optex is also organizing Exhibition at a greater magnitude in important cities to attract and cater
to the new customers.

(iii) During the year 2008-09, about 154 Exhibitions were conducted and a sale of Rs.8.76 crore had
been generated.

(iv) To achieve effective inventory control and to improve the information system, 125 showrooms of
Co-optex were computerized.

(v) 50 showrooms of Co-optex have been modernized and air-conditioned at a cost of Rs.39.20 lakh;
another 50 showrooms have been identified for air-conditioning.

(vi) National Handloom Expo 2008 was organized in 2008-09 in which Handloom Weavers’ Co-
operative Societies all over the country participated and the sale was Rs.4.31 crore.

(vii)National Handloom Expo was also organized during February - March 2009 in Chennai and sale to
the tune of Rs.4.45 crore was effected.

31
Encouragement to Self Help Groups
Co-optex has entrusted the production of value added materials like bags, kids wear, readymade
garments etc to the Self Help Groups and marketed their products such as Mattresses, Pillows, Children’s
bed, Children’s cotton / wollen garments, Baby cradle Diapers, Napipads, Ladies handbags, Cell phone
covers etc.

Administration
Co-optex has been keen on the welfare of its staff and has taken the following initiatives:

(i) 15 days leave encashment.

(ii) Award to the showroom that has achieved targeted sales. This has encouraged, 160 showrooms
to register profit.

(iii) Merger of 50% Dearness Allowance with basic pay with effect from 01.01.2009.

Programmes for 2009-2010

Co-optex proposed to achieve a retail sale of Rs.170 crore during the year 2009-2010 with the
following interventions:

(i) showroom wise product planning will be made with focus for each season well in advance;

(ii) to evolve annual production plan which then will be converted into society wise production plan. This
plan will be given to the societies in the beginning of the year enabling the societies to produce the
required goods and make them available in time for retail sales at Co-optex showrooms;

(iii) to programme monthly procurement on the basis of production plan to make payment to societies
within 30 days time for the retail sales procurement;

(iv) to improve the ambience of the showrooms, 10 showrooms will be taken up for modernization;

(v) to improve the information system, computer system will be provided to Warehouses, Regional
Offices and Head Office with local area network facilities to ensure day-to-day monitoring;

(vi) to interact with IT companies to develop web based reporting system; and

(vii) to create 2500 new designs utilizing the services of the freelance designers working at Co-optex.

32
8. CO-OPERATIVE SPINNING MILLS

During the period from 1958 to 1985, 18 Co-operative Spinning Mills were established in Tamil
Nadu with spindle capacity of 4.70 lakh with the twin objective of providing employment to the rural
masses and supplying quality yarn at reasonable rates to meet the requirement of hank yarn to Handloom
Weavers Co-operative Societies and cone yarn to the Powerloom Weavers Co-operative Societies. Five
Co-operative Spinning Mills are only functioning now. They are:-

I, Bharathi Co-operative Spinning Mills,

Ettayapuram (Thoothukudi District)

ii, Anna Co-operative Spinning Mills, Andipatti

(Theni District)

iii, Krishnagiri District Co-operative Spinning Mills,

Uthangarai (Krishnagiri District)

iv, Pudukottai District Co-operative Spinning Mills,

Aranthangi (Pudukottai District)

v, Kanniyakumari District Co-operative Spinning

Mills, Aralvaimozhi (Kanniyakumari District)

The above 5 Co-operative Spinning Mills are taking care of the hank yarn requirement of
handloom weavers to certain extent.

9. TAMILNADU ZARI LIMITED

The Tamil Nadu Zari Limited, Kancheepuram, is an ISO 9001 certified State Public Sector
Undertaking engaged in the manufacture of zari gold lace and supply to Silk Weavers’ Co-operative
Societies. The Tamilnadu Zari Ltd., is also undertaking the centralized quality checking of zari parcels
received from out- sourcing as per the allotment order of the Centralized Purchase Committee for Zari.
The company also undertakes testing the quality of zari and zari made fabric by Non-Destructive Testing
method through X-Ray Fluorescence Analysers installed at the testing centres in Kancheepuram, Salem
and Chennai. To cater to the zari requirement of Kumbakonam area, the Tamil Nadu Zari Limited has
established a branch unit in Kumbakonam in 1999.

Performance for the year 2008-09

(i) the company has produced 34429 zari marcs and sold to a value of Rs.22.32 crore;

(ii) 2044 samples of zari have been tested by charging a nominal fee.

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 (iii) 12853 samples of zari of silk sarees, pavadais and dhothies were tested through the X-Ray
Fluorescence Analyser and a sum of Rs.2,59,084/- was collected as testing fees.; and

(iv) The company has a technical partnership with the Kumaraguru College of Technology and
Technology Information Forecasting Assessment Council for assistance to upgrade the Technology
for the silver thread making process.

Action Plan of Tamil Nadu Zari Limited for 2009-10

The Company has planned to produce and supply 81000 zari marcs during the year 2009-10.

10. TAMILNADU HANDLOOM DEVELOPMENT CORPORATION LIMITED

The Tamil Nadu Handloom Development Corporation Limited was established in Chennai during
1964 with the objectives of providing financial assistance to the non-cooperative fold weavers, engaging
themselves in manufacturing, trading and marketing of handloom, powerloom and hosiery cloth. The
paid-up share capital of the Corporation is Rs.429.23 lakh, of which, Rs.267.00 lakh has been
subscribed by the Government of Tamil Nadu and the balance of Rs.162.23 lakh has been subscribed by
the members. At present, the Corporation has 11841 members and during 2008-09, it has sanctioned
loan to 375 members to the extent of Rs.125.83 lakh.

The Corporation, as a part of diversifying its activities, is engaged in the cotton yarn sales under
the Mill Gate Price Scheme in coordination with National Handloom Development Corporation (NHDC).
The Corporation is the Marketing Co-ordinator for the Loom world chain of stores and implementing
agency for Cluster Development Programme for 9 Handloom Clusters in Tamil Nadu.

11. TAMILNADU TEXTILE CORPORATION LIMITED (TNTC)

Tamil Nadu Textile Corporation Limited was established in Coimbatore in the year 1969 to provide
employment to the workers of the closed textile units and to provide rehabilitation measures to the textile
industry. The Corporation has 2 Powerloom Complexes with a capacity of 96 looms one each at
Aruppukottai and Sivagiri. Further, the Corporation is having one autoloom shed with 12 autolooms and
24 plain looms at Kurichi in Coimbatore. The Corporation produces polyester suiting and shirting cloth
varieties in Kurichi Autoloom Shed, Sivagiri and Aruppukottai Powerloom complexes.

The Corporation undertakes production of white shirting cloth, blue dhavani cloth and casement
cloth required for the Free Supply of Uniform Scheme for school children. The Corporation also

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undertakes the supply of polyester uniform cloth to the State Transport Corporation, Tamil Nadu
Electricity Board, Cooperative Sugar Mills, Tamil Nadu Cements, Police Department and other public
sector undertakings. Thus, the corporation has significant hold on the institutional market of the State.

The sales turnover of the Corporation during the year 2008-09 was Rs.13.26 crore and the profit
would be Rs.8.21 lakh (tentative).

Action plan for 2009-10

The Corporation has planned to produce more than 15 lakh metres of cloth under Free
Supply of Uniforms to School Children Scheme and Free Distribution Scheme of Sarees and Dhoties
during Pongal and to meet out the cloth requirements of Government Institutions to the approximate value
of Rs.9 crore from its own production.

(i) The Corporation has planned to procure approximately 50 lakh metres of white shirting cloth,
dhavani cloth from powerloom weavers’ co-operative societies for supply intended for Government
schemes to an approximate value of Rs.13 crore.

12. TAMIL NADU CO-OPERATIVE TEXTILE PROCESSING MILLS LIMITED

The Tamil Nadu Co-operative Textile Processing Mills Limited in Erode undertakes various
processing activities such as Bleaching, Dyeing, Mercerizing, Printing and finishing of cotton/ synthetic
fabrics. The mill has the capacity to process about 18 lakh metres of cloth per month. The mill mainly
undertakes processing of cloth required for uniform scheme of the Government, Tamil Nadu Khadi
and Village Industries Board, Powerloom Weavers' Co-operative Societies, Handloom Weavers' Co-
operative Societies, Sarvodaya Sangam, Central Prison and Handloom Development Corporations of
Kerala and Karnataka and also of Private Exporters and Institutions for processing and printing of fabrics.

Achievements for 2008-09

(i) the business turnover was Rs.9.30 crore with a net profit of Rs.5.21 lakh (tentative);

(ii) the Reverse Osmosis Plant and Reject Management System at a cost of Rs.1.70 crore were
installed in the mills; and

(iii) the quality management system has been effectively maintained as per ISO 9001 : 2000 norms in
production department.

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Action plan for 2009-10

(i) to modernize the existing unit by replacing the old machineries and equipments at a cost of Rs.80
lakh to enhance productivity and quality ;
(ii) to create a web-site; and
(iii) to obtain ISO 14001 certification .

13. TAMILNADU CO-OPERATIVE SPINNING MILLS FEDERATION LIMITED (TANSPIN)

The Tamilnadu Co-operative Spinning Mills Federation Limited (TANSPIN) was established in
Chennai in the year 1994 to streamline the procurement and supply of cotton to the Co-operative
Spinning Mills in Tamil Nadu. The main objective of the federation is to procure and supply good quality
cotton at reasonable prices to member Co--operative Spinning Mills in the State and also to co-operative
institutions and Federations all over India. For this purpose, the Government of Tamil Nadu have
sanctioned a sum of Rs.25.00 crore as share capital and Rs.2.07 crore as Cotton Revolving Fund to
TANSPIN for the purchase of cotton on ‘cash and carry’ basis.

During the year 2008-09, the TANSPIN has purchased and supplied 7300 bales of cotton to the
member Co-operative Spinning Mills. The turnover of TANSPIN for 2008-09 was Rs.9.75 crore and the
profit will be Rs.4.32 lakh (tentative).

14. BUDGET PROVISION FOR THE YEAR 2009-10

A provision of Rs. 533.93 crore has been made in the Budget Estimate for the year 2009-
10 under Demand No.17 Handlooms and Textiles as detailed below:-

Budget
Sl. Estimate
No Name of the Scheme 2009-10
(Rs. in
lakh)
1 Free Distribution of
Dhoties and Sarees 26880.00
Scheme (including
handling charges of
Co-optex)
2 Free Electricity to 1120.00
Handloom Weavers

36
 Budget
Sl. Estimate
No Name of the Scheme 2009-10
(Rs. in
lakh)
3 Free Electricity to 6684.00
Powerloom Weavers
4 Rebate on sale of 4000.00
handloom cloth
5 Marketing Incentive / 7800.00
Rebate under Integrated
Handloom Development
Scheme
6 Cluster Development
Programme under 1000.00
Integrated Handloom
Development Scheme
7 Group Approach for 1000.00
Development of
Handlooms under
Integrated Handloom
Development Scheme
8 Co-operative Handloom 448.85
Weavers Savings and
Security Scheme
9 Health Insurance Scheme 417.39
for handloom weavers
10 Payment of premium 201.78
under Mahatma Gandhi
Bunkar Bima Yojana
11 Old Age Pension and 395.00
Family Pension Schemes
for co-operative
handloom weavers
12 Interest Subsidy to 1200.00
Primary Weavers Co-
operative Societies
13 Establishment of 168.02
Enforcement Machinery
14 Powerloom Census (Rent 0.25
f P l S i

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 Budget
Sl. Estimate
No Name of the Scheme 2009-10
(Rs. in
lakh)
for Powerloom Service
Centre, Erode)
15. Deendayal Hathkargha 0.04
Protsahan Yojana
Scheme
16. Assistance to Powerloom 100.00
Weavers’ Welfare Board
17. Assistance for Market 4.00
Promotion Activities
18. Documenting the 5.00
traditional products of
handloom clusters in
Tamil Nadu
19. Market Research Study 7.00
of Handloom Industry
20. Secretariat Economic 223.08
Services (Salaries of Staff
and other Administrative
expenses)
21. Administrative expenses 1403.28
(Including Pay and
Allowances of staff)
22. Waiver of HUDCO Loan 300.00
23. Establishment expenses 20.64
of Handloom Weavers
Training Centre at Erode
Loans to Co-operative 0.01
24. Spinning Mills
25. Ways and Means 0.01
Advance to Co-operative
Spinning Mills due to
TEXCO
26. Weavers-cum-Designer 15.00
Project
TOTAL 53393.35

K.K.S.S.R.RAMACHANDRAN
MINISTER FOR BACKWARD CLASSES

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