Government Assistance to Handloom Weavers

Government to Handloom Weaver_indianbureaucrcacy
Government to Handloom Weaver_indianbureaucrcacy

The Government of India is implementing following schemes/programmes for development of handloom sector and welfare of handloom weavers throughout the country:

  1. National Handloom Development Programme.
  2. Handloom Weavers’ Comprehensive Welfare Scheme.
  3. Yarn Supply Scheme
  4. Comprehensive Handloom Cluster Development Scheme.

National Handloom Development Programme (NHDP) implemented during the                  12th Planperiod provides for comprehensive interventions for cluster development, marketing assistance, concessional credit etc. The guidelines of National Handloom Development Programme (NHDP)/ Comprehensive Handloom Cluster Development Scheme (CHCDS) was amended in June/August, 2015 to include Block level cluster approach, which provides more flexibility with higher funding by Government of India, discontinuation of the State financial contribution, direct release of funds to Implementing Agency, direct transfer of funds in the block with a maximum assistance of upto Rs.2.00 crore for various interventions such as setting up of Common Facility Centre (CFC) including Common Service Centre (CSC), engagement of textile designer-cum-marketing executive, construction of workshed,  appointment of Cluster Development Executive (CDE), technological up-gradation, lighting units, skill up-gradation, better looms and accessories, etc.  Besides, financial assistance of upto Rs.50.00 lakh is available for setting up of dye house at district level.


Yarn Supply Scheme is implemented throughout the country to make available all types of yarn at Mill Gate Price to the eligible handloom weavers so as to facilitate regular supply of basic raw materials to the handloom sector and help utilize the full employment potential of the sector.  Under the scheme the freight is reimbursed and depot operating charges @2% is given to depot operating agencies.  At present 932 such yarn depots are functioning throughout the country.  The funds released during last two years (2014-15 & 2015-16) are as under:

(Rs. In Crore)

Sr. No. Year Amount released
1. 2014-15 127.81
2. 2015-16 321.96

In order to enable handloom weavers to avail social security benefits, the Government of India has been implementing Handloom Weavers Comprehensive Welfare Scheme (HWCWS) with two components; namely Mahatma Gandhi Bunkar Bima Yojana(MGBBY) and Health Insurance Scheme (HIS).  The MGBBY aims to provide insurance cover to handloom weavers in the case of natural or accidental death and in case of total or partial disability.  The HIS aims at enabling the weaver community to access healthcare facilities. Under Handloom Weavers Comprehensive Welfare Scheme(HWCWS) funds are not released state-wise, instead, they are released to the implementing agency as a whole country.  The funds released during last two years (2014-15 & 2015-16) are as under:

                                                                              (Rs. In Crore)

Sr. No. Year HIS

(Fund released)MGBBY

(Fund released)1.2014-1525.8716.392.2015-1601.9416.67


The Comprehensive Handloom Cluster Development Scheme (CHCDS) was introduced in 2008-09 for development of Mega Handloom Clusters.  Under the scheme, there was provision for each cluster to cover atleast 25,000 handlooms with upper GoI share of Rs.70.00 crore in a period of 5 years.  The Comprehensive Handloom Cluster Development Scheme (CHCDS) is under implementation during the XII Plan for development of Mega Handloom Clusters.  As per the scheme, Mega Handloom Cluster should have atleast 15,000 handlooms and funding upto Rs.40.00 crore as GoI share is eligible per cluster.  The guidelines of Comprehensive Handloom Cluster Development Scheme (CHCDS) was amended in August 2015 to include Block level cluster in the line of NHDP Scheme.  Eight Mega Handloom Clusters have been taken up. The funds released during last two years (2014-15 & 2015-16) are as under:

(Rs. In lakh)

Sr. No. Comprehensive Handloom Cluster Development Scheme (CHCDS) 2014-15 2015-16
1. Varanasi (Uttar Pradesh) 776.53 841.91
2. Sivasagar (Assam) 54.51 12.61
3. Mushidabad (West Bengal) 515.09 318.92
4. Virudhunagar (Tamilnadu)
5. Prakasam& Guntur Districts (Andhra Pardesh) 3.81 1429.18
6. Godda & neighbouring districts  (Jharkhand) 251.85 317.45
7. Bhagalpur (Bihar) 5.62
8. Trichy (Tamilnadu) 231.65 745.22

The main aim of these Programmes and schemes is to reduce drudgery of handloom weavers, improve productivity & quality of handloom products by providing technologically upgraded looms & accessories and also provide marketing infrastructure support which helped the handloom sector & the weavers to with stand competition from modern looms.

1 Comment

  1. It is nice to read when people value and respect the textiles behind making a fabric and understand how big the textile industry in India is. Chanderi is one of the best known handloom clusters in India where they produce textured fabrics of silk. It is nice to acknowledge these clusters and textiles that take us back in time and to work with such fabrics in todays fashion industry. For this years Amazon India Fashion Week SS17, FDCI decided to pay their tributes to this cluster by opening the fashion week with a show where 16 indian designers produced clothes in chanderi fabric.

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