To resuscitate the ailing handloom sector in India is going to get a major boost with the revival, reform and restructuring package from NABARD with an outlay of around Rs 3,900 crore that would take off in the next few weeks, according to a BL report.
Under this scheme, Andhra Pradesh will complete the audit of handloom weaver societies in June this year that will pave way for cleansing of balance-sheets, clearing the road for fresh flow of bank loans into the sector, noted the report.
As on March 31, 2011 22 states have given Letter of Commitment (LoC) to sign the MoU with NABARD and the Government of India for implementing the scheme in the respective states. Besides Andhra Pradesh, Kerala and Uttrakhand too signed the agreement. The share of the Union Government was initially put at Rs 3,137 crore and that of the State Governments will be Rs 747 crore. The package was intended to be implemented by December 31, 2012 the report said. A special committee has been formed in Andhra Pradesh with the Principal Secretary (Industries) as its head, the report stated.
P Mohanaiah, Chief General Manager of NABARD (AP region) told the daily: “Auditors have been identified to take up the special audit. NABARD will give them adequate training, who in turn will equip the auditors at district level. We expect the audit to be completed by June-end. Flow of funds would begin in the following month. Therefore, Andhra Pradesh can hope for Rs 300 crore".
There are about 590 weavers’ societies that are eligible for the scheme in the state. 'Outstanding loans up to Rs 50,000 will be waived, making them eligible for bank loans again. What is more, we are also planning to form joint liability groups (JLGs) to help them get access to funds,'Mohanaiah added.