Traditional weaving on hand looms is manual activity for which power is not required. To enable hand loom sector to compete with machine-produced items, Government of India is implementing Yarn Supply Scheme to provide yarn at mill gate price at the door step of weavers; the Government is also giving 10% subsidy on cotton hank yarn, domestic silk yarn and wool with quantity caps.
The Government is implementing a scheme to provide subsidised loan to hand loom weavers at the rate of 6% for a period of three years. The interest subsidy is borne by the Government of India. Provision of electricity at concessional rates comes within the jurisdiction of the State Governments.