Initiatives by Ministry of Textiles, Government of India
The Government’s role extends to a range of activities such as price support to cotton and jute, incentives for investments in technology up-gradation and modernisation, setting up of world class Integrated Textile Parks, implementation of Technology Mission on Cotton, Jute and Technical Textiles, development of mega clusters for power looms, handlooms and handicrafts, development of handlooms, handicrafts, sericulture and wool sub-sectors by implementing a number of schemes, implementation of welfare schemes for handloom weavers and handicrafts artisans and promoting skill development of textile workers in collaboration with the industry. The Government is also providing a number of incentives for export of textile products. A large network of Government Offices, public sector enterprises, textile research associations, textile design and education institutions such as National Institute of Fashion Technology (NIFT), Sardar Vallabhai Patel International Institute of Textile Management, various textile industry associations, Export Promotion Councils etc. provide
TUFS Highlights
Introduction
The Indian Textiles Industry does not have the same technological edge as the textile industry in developed countries. This is mainly in the weaving and processing segments. The Technology Up gradation Fund Scheme (TUFS), which is the “flagship” Scheme of the Ministry of Textiles, is the scheme for modernisation and technology up gradation in the textile sector. The Scheme aims making available funds to the domestic textile industry for technology up gradation of existing units as well as to set up new units with state-of-the-art technology so that its viability and competitiveness in the domestic as well as international markets may enhance.
Salient Features of TUFS
Incentives available under the scheme
SITP (Scheme for Integrated Textile Parks)
Scope of the Scheme
Salient Features of SITP are given below:
Project Monitoring and Evaluation
State wise Number of SITP Approved Parks
| State wise Number of SITP Approved Parks | |
| State | Number of Parks |
| Andhra Pradesh | 7 |
| Gujarat | 8 |
| Karnataka | 2 |
| Maharashtra | 15 |
| Rajasthan | 9 |
| Tamil Nadu | 10 |
| West Bengal | 2 |
| Punjab | 3 |
| Madhya Pradesh | 1 |
| Himachal Pradesh | 1 |
| J&K | 1 |
| Tripura | 1 |
| Uttar Pradesh | 1 |
| Total | 61 |
Project Monitoring and Evaluation
The Ministry of Textiles (MoT) will periodically review the progress of the projects under the scheme and the Project Approval Committee (PAC) is empowered to put in place detailed operating procedures and supplementary rules for implementation of the scheme guidelines.
Integrated Skill Development Scheme (ISDS)
Keeping in view that Textiles Sector has the second largest share of employment after agriculture. With technological modernization being the key to high industrial growth, labour intensive industries like textiles require not only skilled workforce, but also massive vocational training for skill up gradation of the existing workers engaged in the organized as well as unorganized sectors, (including handlooms, power looms, sericulture, wool, khadi, etc.).
Objectives of the Scheme
To address the trained manpower needs of textiles and related segments including Handicrafts, Handlooms, Sericulture, Jute, Technical Textiles etc, by developing a cohesive and integrated framework of training based on the industry needs. Addressing this need is critical for enhancing the competitiveness of the industry in the globalized economy.
To increase the employability of residents of the target areas through imparting of skills in the above segments.
To ensure that the scheme is so designed as to cater to the wide range of skill sets required in various segments as listed above, while simultaneously ensuring sufficient flexibility to meet the dynamic needs of these segments over a period of the next five years.
Salient Features of the Proposed Scheme
The Scheme will work on the principle of leveraging on existing resources and infrastructure and participation of State Government agencies and private sector. The scheme would have three broad components:
Component I - Skill development by augmenting and strengthening the capacity of institutions and schemes under Ministry of Textiles. Through this component, the target would be to train an estimated additional 5 lakh persons in various skill sets covering all segments under the ambit of the Ministry of Textiles over a period of 5 years
Component II - Skill development in partnership with the private sector viz industry, NGOs, institutions, Government and potential employers etc. The target would be to train an estimated 5 lakh persons in all segments through a PPP model over a period of 5 years
Component III - Skill development in partnership with State Government Agencies for training 5 Lakh persons over a period of 5 years
It would cover all segments under the ambit of the Ministry, viz.
(i) Textiles and Apparel
(ii) Handicrafts
(iii) Handlooms
(iv) Jute
(v) Sericulture
(vi) Technical Textiles
Special focus is being given to skill development in knitting and knitwear technology by making a special provision of Rs. 55.00 crore during 12th Plan.
Target: The Scheme has targeted to train 15 lakh persons over a period of 5 years
Technology Mission on Cotton
With the objective of improving the productivity and quality of cotton, Government of India has been implementing Technology Mission on Cotton (TMC) over the past five years. The Mission has four mini components as follows:
Mini Mission I – Cotton research & Technology Generation
Mini Mission II – Transfer of Technology & Development
Mini Mission III – Development of Market Infrastructure
Mini Mission IV – Modernization / Upgradation of Ginning & Pressing Factories
Whereas the Mission I & II above is being implemented through the Ministry of Agriculture, the Mission III & IV are being implemented by Ministry of Textiles
De-reservation from SSI
One of the reasons for lack of mega investments in Indian textile industry was the reservation of most of the sub sectors under SSI. Over the last five years, the Government of India has deserved all the sectors of textile industry from the purview of SSI with the objective of consolidation of fragmented capacities and infusion of fresh mega investments. Recently, the Government has dereserved hosiery and knitwear from SSI sector.
National Handloom Development Program
National Handloom Development Program (NHDP) to be implemented during the XII Plan has been formulated as a centrally sponsored plan scheme approved by the Planning commission merging, with or without modifications, Revival, Reform and Restructuring (RRR) package, Institutional Credit component of Integrated Handlooms Development Scheme (IHDS) as Concessional Credit and Comprehensive Handlooms Development Scheme (CHDS). CHDS, a component of NHDP, has been formulated by merging three plan schemes i.e. Integrated Handlooms Development Scheme, Marketing & Export Promotion Scheme, and Diversified Handlooms Development Scheme implemented during 11th Plan.
Mega Clusters
Comprehensive Handloom Cluster Development Scheme (CHCDS) – Mega Handloom Cluster
The handloom sector is the second largest employer in India, providing employment to about 65 lakh persons. The sector represents the continuity of the age-old Indian heritage of hand weaving and reflects the socio-cultural tradition of the weaving communities. The Government of India has been following a policy of promoting and encouraging the handloom sector through a number of policies and program. Most of the schematic interventions of the Government of India in earlier Plan periods have been through the State Agencies and Co-operatives in the Handloom sector. However, in the face of growing competitiveness in the textile industry both in the national and international markets and the free trade opportunities emerging in the post MFA environment, a growing need has been felt for adopting a focused yet flexible and holistic approach in the sector to facilitate handloom weavers to meet the challenges of a globalized environment. A need has also been felt to empower weavers to chart out a sustainable path for growth and diversification in line with the emerging market trends.
Comprehensive Handicrafts Cluster Development Scheme (CHCDS)
Mega cluster approach is a Drive to scale up the infrastructural and production chain at Handicrafts clusters which have remained unorganized and have not kept pace with the modernization and development that have been taking place so far. Consequently, there has not been any addition of fresh impetus of development and optimum realization of output in the handicrafts sector, which is not only the backbone of long traditional heritage and cultural linkages. The prospects of this sector lie in infrastructural Upgradation, modernization of the machinery and product diversification. Innovative manufacturing as well as designing know-how, furthered by brand building of the native products hold the key to creating a niche market for the products manufactured by the clusters. The proposed programme is expected to support the Upgradation of infrastructural facilities coupled with market linkages and product diversification.
Modified Comprehensive Power loom Cluster Development Scheme (CPCDS)-Development of Power loom Mega Cluster)
Objectives
Development of clusters that have a concentration of about 5000 decentralized Powerlooms or more by assistance for infrastructure, common facilities, other need based innovations, technology upgradation and skill development.
The scheme basically aims at improving the existing brownfield clusters for which a gap filling exercise for each cluster would identify the need based infrastructure that is to be funded.
It is expected that the project would ordinarily be implemented within a period of 4 years from the date of formal approval conveyed by the Ministry of Textiles.
Technology Mission on Technical Textiles
Technical textiles are textile materials and products used for their technical performance and functional properties. Technical textiles are critical for the thrust areas of Government of India in terms of infrastructure development, social responsibility, security of nation and food security. Govt. has taken many initiatives like implementing Scheme for Growth and Development of Technical Textiles (SGDTT), inclusion of major machinery for technical textiles under modified TUFS for 10% capital subsidy etc.
In spite of government taking such initiatives, the technical textiles industry still suffers from a number of problems like lack of basic infrastructure in terms of testing facilities, lack of market development support, skilled manpower, lack of R & D, absence of regulatory measures, absence of specifications and standards for technical textiles etc.
To address the above issues Govt. has launched Technology Mission on Technical Textiles (TMTT) with two mini- missions for a period of five years (from 2010-11 to 2014-15) with a fund outlay of Rs. 200 crore.
Jute Technology Mission
The Government, on June 2, 2006, approved the Jute Technology Mission (JTM). The Department of Agricultural Research & Education, Ministry of Agriculture, launched the Mini Mission I of the JTM on November 9, 2006. The Department of Agriculture & Cooperation, Ministry of Agriculture, launched the Mini-Mission II of JTM on December 21, 2006. The Mini Mission III & IV of JTM were launched by the Ministry of Textiles on February 6, 2007. The Jute Technology Mission (JTM) will be executed during the XIth Plan with an overall outlay of Rs.355.55 crores.
The objectives of JTM are:
To improve yield and quality of jute fibre
To strengthen existing infrastructure for development and supply of quality seeds
Improvement of quality of fibre through better methods of retting and extraction technologies
To increase the supply of quality raw material to the jute industry at reasonable prices and to develop efficient market linkage for raw jute
To modernize, technologically upgrade, improve productivity, diversify and develop human resource for the jute industry
To develop and commercialise innovative technology for diversified use of jute and allied fibres.
Various Schemes to Upgrade the Wool Sector
Social Security Scheme:
The Central Wool Development Board, Ministry of Textiles introduced Social Security Scheme during 11th Five Year Plan to benefit the sheep breeders. This scheme supports the sheep breeders by providing insurance coverage to them and their sheep flock by implementing two plans.
Sheep Breeders Insurance Scheme and
Sheep Insurance Scheme-Both insurance plans are based on Jan Shree Bima Yojana of L.I.C. and Mahatma Gandhi Bunker Bima Yojana (MGBBY) of Ministry of Textiles and Livestock Insurance Scheme of States Animal Husbandry Departments. CWDB intends to continue both these schemes during 12th plan.
Integrated Wool Improvement & Development Scheme (IWIDP)
It has been felt that human resources development aspects have rather been neglected in the wool sector. The woollen industry employs 1.7 million people with 30,000 supervisory level personnel. With the spurt of the Textile activities and the projected target growth, 5 million direct jobs are likely to be created in the Textile industry with another 7 million jobs in allied sectors during 12th Plan and it can safely be assumed that nearly 0.20 million skilled and semi-skilled workforce will be required
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in Woollen sector. This scheme has been introduced to provide skilled manpower to woollen industry by starting some new skill development Training Centre at major Woollen Industry Centre.
Quality Processing of Wool Scheme (Q & P)
The Woollen industry suffers from inadequate and outdated processing facilities. The pre-loom and post-loom facilities are required to be modernized for ensuring quality finished product. Quality finishing of the woollen products will not only increase use of indigenous wool but will also make the product more competitive in the international market. It will also assist in procuring better price for wool growers and will make quality raw material available to the Khadi and Handloom sector.
Owing to overall size of the woollen industry and specialized nature of equipment’s required for processing, the industry has been dependent on imported plant and machinery except for few complimentary equipment’s from local sources. Machinery required for processing from raw wool fibre to fabrics followed by knitting and garmenting, is mostly imported from European countries, USA and Japan.
With this view setting up of Common Facility Centre for all kind of wool and woollen processing facilities like-wool scouring, drying, carding dyeing, knitting, weaving, felting\non-woven, and finishing are proposed to be taken up by the CWDB for the integrated processing of raw wool and woolens in wool producing and wool trading areas. This new separate programme would provide a comprehensive service package of all kind of wool and woollen processing facilities including Machine Sheep shearing, quality parameters testing equipments, computer aided designing software etc.,. Establishing such plants/centers will increase wool processing capacity and will bring more fruits of value addition to Indian wool industry and will create more employment generation and income augmentation in the country.
The objectives of the scheme are:-
Silk
Central Silk Board is statutory Body for the development of sericulture and silk industry in the country. Various Schemes for development of Silk sector have been mentioned below:
Research & Development, Training, Transfer of Technology, and I.T Initiatives
Silk Industry is a combination of agriculture, animal husbandry and pure industrial activities. There are innumerable activities unique to the sector ranging from host plant cultivation, seed production, cocoon production, reeling, spinning, twisting, throwing, wet processing, dyeing, weaving, designing, etc. Because of this inherent diverse nature of the industry, the research requirements of the sector are also diverse & complex and accordingly exclusive facilities for undertaking diversified research in the four areas of the sector (mulberry, tasar, muga and eri) have been established by CSB in different locations of the country. These R&D institutes undertake exclusive research on agronomy, soil science, host plant breeding & genetics, pathology, tissue culture, arboriculture, silkworm breeding & genetics, silkworm seed technology, entomology, microbiology, biotechnology, physiology & bio-chemistry, mulberry & silkworm pest management, cell & molecular biology, rearing technology & innovation, sericulture engineering (mechanization), bye-product utilization, extension research, research on post cocoon activities like; cocoon cooking, silk reeling, weaving, designing, processing, finishing, post cocoon machinery development, dyeing, and product development.
To take up the above diverse research activities, there are altogether 140 Research and Research Extension Units located in different parts of the country.
Seed Organization, Coordination and Market Development (HRD)
Healthy seed is the backbone of sericulture industry. Poor seed health is the primary reason for poor productivity. Seed, at the same time, may act as one of the main vehicles for dissemination of diseases. Seed-borne pathogens, such as protozoa, fungi, bacteria and viruses are serious constraints to sericulture industry. Hence, healthy seed material, free from diseases and having high viability is essential for establishing the crop. And also availability of quality silkworm seed in adequate quantities is the prerequisite in achieving the targeted silk production besides improving the productivity parameters. To produce quality seed, it is very important to adopt scientific methods of egg production right from seed crop rearing to egg incubation
Central Silk Board, over the Plan periods, had invested much of its material and manpower to develop well organized and systematic “Seed Organizations”, separately for Mulberry, Tasar, Muga & Eri. Each of these organizations have been provided with necessary functional freedom supported by adequate facilities to maintain a three tier multiplication system for retaining the inherent genetical characters like, hybrid vigour and disease freeness and above all maintain and regulate high quality standards among all the stakeholders in the seed production scenario
The Regional Offices (RO) of CSB work in various States for effective liaison of the activities of CSB especially for the implementation and monitoring of the CDP. The activities of the States are also to be monitored through State Level Monitoring Committees, wherein the technical support and inputs from ROs are essential for organizing the meetings and to follow-up the decisions taken thereof. In order to eliminate the presence of middlemen who were exploiting the primary producers, 3 Raw
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Material Banks (RMBs) for Tasar, Eri and Muga with a network of 8 sub-depots in different States would stabilize the prices of Vanya silk cocoons in the open market by procuring and offloading at critical period of time.
Decentralized Power loom Sector
In Situ Up gradation of Plain Power looms SSI Power loom Sector
Technology Up gradation Fund Scheme (TUFS), which was introduced on 01.04.1999 has helped overcome technological obsolescence and created economies of scale in the Textile Sector. The decentralized power loom sector has also derived substantial benefits under TUFS by installing shuttle less looms and automatic looms. However, some of the economically weaker power loom units in India are still in their original shape and desire to go for In-situ modernization for their existing plain power looms.
Objective
The prime objective of the scheme is to provide financial assistance to economically weaker low-end power loom units where the benefits of the TUFS has not reached, to improve quality and productivity of the fabric being produced by upgrading existing plain loom with certain additional attachments and enable them to face the competition in domestic and international markets.
Group Work shed Scheme for Powerloom Sector
The “Scheme for Group Workshed” for Powerloom sector is formulated by suitably modifying the existing Group Workshed Scheme for decentralised powerloom sector to organise powerloom units in a cluster and to provide improved working condition in terms of more space, work environment, improve the work efficiency to enhance their competitiveness in the global market.
Objective
The prime objective of the scheme is to facilitate the establishment of Worksheds for modern looms in an existing or new cluster, which will provide required scale of economy for business operations.
Group Insurance Scheme
The Government of India had introduced the Group Insurance Scheme for Powerloom Weavers from 1st July, 2003 which is a combination of Janshree Bima Yojana (JBY) and Add-on Group Insurance Scheme (AGIS). The Scheme was revised w.e.f. 1st January, 2008 and the revised Scheme was known as Group Insurance Scheme for Powerloom Weavers. This Scheme is implemented in collaboration with the Life Insurance Corporation of India. It is proposed to continue the said insurance scheme during 12th Plan period with certain modifications with effect from 1st September, 2012. The scheme will continue to be known as Group Insurance Scheme for Powerloom Weavers.
Objective
The basic objective of this scheme is to provide insurance cover to the powerloom weavers in the case of natural death, accidental death as well as partial and permanent disability due to accident.
Integrated Scheme for Power loom Sector Development
To augment the domestic production and marketing as well as export by the powerloom weavers, there is a need of Integrated Scheme which can take care of such activities viz. Modernisation of Powerloom Sector, Exposure visits, Buyer seller meet, Cluster Development Activities, Periodic survey of the Powerloom sector, Development and upgradation of skills (HRD), which can directly benefit the powerloom weavers in a remunerative way as well as to put them on the trajectory of growth. Govt. of India has envisaged after deliberation with stakeholders of powerloom sector and the recommendation of working group for XI Plan to formulate an Integrated Development Scheme for the powerloom sector.
Objectives of the Scheme
Modernisation of Powerloom Sector to achieve 12% growth per annum.
To assist powerloom weavers, powerloom industry associations and other organizations for marketing their products through organising of exhibitions for the benefit of garment industry and organized sector or general public at regional and cluster level as well as while promoting awareness among the consumers about the latest designs, products and product diversification.
To provide infrastructural support for marketing by having permanent outlets to eliminate the middlemen for direct marketing by the powerloom weavers.
To empower powerloom industry and build their capacity to meet the challenges of the market and global competition in a sustainable and self-reliant manner.
30% Margin Money Subsidy Scheme for Powerloom Sector under TUFS
Weaving is a thrust area and occupies a special place under the Technology Upgradation Fund Scheme. The scheme is applicable to powerlooms in Micro & Small & Medium Enterprises only i.e., the units having investment in plant & machinery as per Micro, Small & Medium enterprises Development Act 2006. However, filing of Entrepreneurs Memorandum with concerned District Industries Centre is a pre-requisite for availing of assistance under the scheme.
The eligibility of the powerloom unit is subject to a capital ceiling of Rs. 500 lakh and ceiling on margin money subsidy of Rs. 150 lakh. MSME units exceeding capital ceiling of Rs. 500 lakh would not be eligible for assistance under 30% MMS – TUFS. Such units are advised to avail of 6% interest reimbursement and 15% capital subsidy in lieu of 30% MMS under TUFS.
Health Insurance Scheme for Powerloom Weavers/Workers
The aim of the scheme is to provide comprehensive (IPD and OPD) healthcare assistance to powerloom weavers for a wide range of ailments including all pre-existing/new diseases. In addition to OPD, substantial provision of outpatient department (OPD) services would be provided. The ancillary Powerloom workers like those engaged in pre-weaving such as winding, warping, sizing, drawing in, beaming etc. are also proposed to be included.
Support Services
With the objective of assisting the textile industry in terms of increased availability of qualified manpower, quality improvement and exposure to new technologies, the Government of India has undertaken several initiatives. Some of these key initiatives are given below:
Establishment and expansion of educational and vocational training centres like National Institute of Fashion Technology (NIFT) and Apparel Training and Design Centres (ATDC) to meet the manpower requirements of garment industry.
Establishment of Power loom Service Centres (PSCs) and testing laboratories to assist the industry in quality improvement, training and technology adaptation.
Revamping the curriculum in textile educational institutions through National Centre for Up gradation of Textile Education (NCUTE) to match the requirements of the industry.
Establishment of an exclusive national level institute for textile management education in order to provide competent managerial manpower to the industry.
Assisting the industry, through Export Promotion Councils (EPCs), in undertaking the export market research and promotion.
