New Delhi February 14, 2014:- The Cabinet Committee on Economic Affairs has approved the extension of two months that is up to 28.02.2014 in the implementation period of the Revival, Reform and Restructuring (RRR) package for the handloom sector. Earlier the last date of implementation period of this scheme was 31.12.2013.
There is no financial implication of the proposal as the RRR package would be implemented according to the approved financial outlay of Rs.3130 crore out of which Rs.1100 crore is for waiver of overdue loan and recapitalization assistance and Rs.2030 crore for concessional credit component.
The initiative is expected to benefit about 1500 additional apex and primary weavers cooperative societies in addition to 4739 societies covered till 31.12.2013 under modified RRR package. The approved interventions will help in re-opening choked credit lines for handloom weavers’ cooperative societies and the individual weaver, and fresh credit will be provided at cheaper rate of interest with credit guarantee resulting in bringing them back into positive networth after financial support. NABARD is the implementing agency of the package.
Background:
In pursuance of the budget announcement of 2011-12, a scheme – ‘Revival, Reform and Restructuring (RRR) Package’ was approved by the Government in November, 2011 and only viable and potentially viable apex and Primary Weavers Cooperative societies (PWCs) based on the audit of 2009-10 were eligible to avail benefit. Till 31.10.2013, besides 50403 individual weavers and 5462 Self Help Groups (SHGs), out of 44 apex and 15,926 PWC societies, which are functional, only 24 apex and 4073 PWCs were found eligible as per the eligibility norms under the scheme.
On requests from various States and handloom organizations to relax eligibility norms, the Government of India approved modifications on 23.09.2013 in the RRR package by relaxing certain eligibility norms and extension of the scheme upto 31.12.2013. The revised scheme also facilitates cheaper credit at the rate of six percent interest rate to the handloom sector in line with the budget announcement of 2013-14.
As per modified guidelines, States had to first carry out statutory audit of all their apex and PWC societies up to 2011-12 and also make budgetary provision of the required State share. Till 31.12.13, around 4739 cooperatives have been covered. Due to the State Assembly Elections in five states, the statutory audit of apex and PWC societies and subsequently special audit by NABARD has been delayed. These states need additional time for completion of the audit. Some other states also could not complete the statutory audit of cooperative societies within 31.12.13 and demanded one more month to complete the work. Therefore, the Ministry proposed to extend the last date of implementation of the RRR package by another 2 months.
