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2235-02-104.2-02 : Rs.300.00 lakhs

An amount of Rs.300.00 lakhs has been budgeted for the current year. The State Government have introduced the scheme a decade ago with the twin objective of providing continuous employment to the handloom weavers and to provide basic clothing to the weaker sections at affordable prices.

Saree Dhothies produced under the Scheme by Karnataka Handloom Development Corporation and Cauvery Handlooms are distributed to the weaker section in rural areas and urban slums through public distribution system.


        2851-00-103-0-61: Budgeted amount Rs.35.00 lakhs

Under the above scheme assistance will be provided for the development of Handloom Co-operatives Weavers and Institution and the scheme comprises the following 9 sub-schemes as under:

a) State Level Exhibition

In order to provide Marketing support to the Handloom Products produced by the Handloom Weavers Co-operatives: KHDC and Cauvery Handlooms, State Government is providing funds to organize State level Exhibitions, During .the exhibitions, the products produced by the Handloom weavers will be exhibited and sales will be conducted. Infrastructure facility and publicity will be given by the implementing agency.

    b) Awards to Weavers

To encourage the Handloom weaver and to produce best-designed products awards will be         given     to the Handloom Weavers every year. The talent, design and motivation of the weaver in producing the products will be considered for the awards. The fabrics produced by using Silk, Cotton and Woolen Yarn are considered for award facilitating.

c) Establishment of Handloom Technology Institute at Gadag-Betageri

The Handloom Technology Institute has been established at Gadag-Betageri in the year 1994-95 ion the lines of Indian Institute of Handloom Technology, Salem. The objective of the Institute is to impart intensive training in Handloom sector. The duration of the training is 3 years leading to an award of Diploma certificates. The assistances will be provided towards recurring costs and training expenditure.

d) Subsidy towards Interest on Handloom Weavers Co-operative Societies (NABARD)

The scheme envisages reimbursement of a portion of the interest, at present 3%, on CC1imit borrowed by Primary Weavers Co-operative Societies from the District Central Banks through the NABARD Refinance scheme.

e) Handloom Weavers Welfare Fund (Nekarara Kalyana Yojane)

Under the scheme .the assistance will be provided to the weavers or children of weavers for the following components.

(1) Health Scheme

(a) Reimbursement of the medical expenditure for treatment of Cancer: the financial assistance of Rs.500 per annum during the treatment Period.

     (b) Reimbursement of the medical expenditure for treatment of Heart operation and      transplantation of Kidney maximum limit Rs.50.000/- and financial assistance of  Rs.500/- per annum during the treatment period. Financial assistance to mentally retarded and leprosy patients Rs.500/- per annum.Rs.1000/- will be paid to the family members for the cremation of deceased weaver.

    (2) Education Scheme

    Scholarship to the weavers children studying after SSLC are provided and the details as under.

                                                                (Amount in Rs.)



Scholarship per annum towards fees

Towards purchase of books

Additional stipend to the distinction holders (70% and above)


PUC and Diploma courses





ITI student





Science degree standards





Degree students (other than Science) B.A./B.Com





Professional courses




    f) Advance Training Institute Of Hand loom Weavers At Jamakhandi (Bagalkote District)

         It is a State Government scheme with an objective of skill upgradation of the handloom weavers and expose them to modern designs and techniques. The training will be of residential nature and the duration of the course is 3 months. During the training period, the trainee weavers will be paid stipend.  

    g) New Designs And Trends

        Under this scheme assistance will be provided to the Primary Societies for adoption and implementation of latest designs as per the market trends and demands. Practical training will be imparted to the weavers of the Primary Societies in Weavers Service Centre, run by Government of India, Indian Institute of Handloom Technology, Salem, Varanasi and Venkatagiri Weavers Societies. During the training period, weavers will be provided with stipend; accommodation and traveling allowance. Also, study tours can be organized to weavers under the scheme.  

    h) Management & Training

        The Secretaries of the Primary Co-operative Societies and Officers/officials of the Department will be given training in the Co-operative Training College at Bangalore and other Institutions inside and outside the state for a period ranging 1 to 6 weeks on all aspects of the Management. During the training period, free boarding and lodging will be provided for the participants.  

    i) Training For Hand loom Weavers

        This is a State Government scheme contemplated to impart Advance Training and skills in Handloom Technology. State Government is sponsoring 18 candidates to the Indian Institute of Handloom Technology, Salem and 3 candidates to Venkatagiri Institute every year respectively to undergo the course for a period of 3 years. The scheme provides for the payment of stipend to the students so deputed and also to provide other inputs like books, grants, project allowance, etc.  

3) ASSISTANCE to Power loom Sectors

     2851-00-108-0-19 Budgeted amount Rs.25.00 lakhs.

        Under the above scheme assistance fill be provided to Power loom sector  component wise details are as follows.  

a)    Establishment of Functional Industrial Estate Textile Town

Under the above scheme, the amount budgeted for the current year has been released to KSPDC for establishing garment complex in Bellary.

Financial Assistance To The Power loom Service Centre

The Powerloom Service Centers have been established by Government of India in various parts of the State for the benefit of Powerloom weavers to provide training in design development to improve their skills. The weavers are paid a stipend of Rs.500/- p.m. and the trainer Rs.10001- p.m. The rent of .the building is also met under this scheme. In Karnataka State, the Centers have been started in the following places;

1)     Rajajinagar Industrial Estate, Bangalore

2)     Udyambagh lndustrial Estate, Belgaum

3)     Doddaballapura

4)     Gadag-Betageri, Dharwad.  

The above 4 Centers have been taken over by KSPDC, 

    b) Power Loom Complex

In order to have a systematic, high tech powerloom units and orderly growth of Powerlooms in unorganized sector, it is propose to provide infrastructural facilities such as sheds, electricity, roads, water common facility centre etc., in Doddaballapur, Belgaum, Rabakavi, Ilkal, Banahatti, Ranebennur etc.

c) Modernization of Powerlooms

Most of the power looms are ordinary power looms of conventional type which require modernization to increase the productivity and quality Under this programme the subsidy at 50% of the total amount of Rs.20,000/- required for each loom i.e., 10,000/- per loom will be provided.

4) N.C.D.C. Scheme for Handloom Societies

    4851-00-103-1-03 Budgeted amount Rs.5.00 lakhs

A sum of Rs.5.00 lakhs is budgeted for the current year. Under the scheme, the weavers co-operative societies are assisted in the form of share capital investment.The scheme is financed by the State Government through the re-imbursement from NCDC to the weavers co-operative societies.

5) Share Capital Assistance to Power Loom Co-Operatives

    4851-00-108-0-01 Budgeted amount Rs.5.00 lakhs

A sum of Rs.5.00 lakhs is budgeted for the current year.The scheme is intended to encourage rural artisans to organize power loom co-operatives, so that assistance in the form of purchase of raw-materials and marketing could be rendered to the artisans through the societies.For this purpose, societies will be assisted in the form of share capital to meet the margin requirement and also to increase borrowing capacity of the societies. The societies will borrow from the financial institutions, to run their activities.

6) Establishment of Power loom Development Corporation  


        A sum of Rs.1.00 lakhs has been provided for the current year. The State Government have incorporated a separate Corporation for the development of Powerloom sector in the State. The Corporation has started functioning with an authorised share capital of Rs.5 crores.  

7) N.C.D.C. Scheme for Power loom Co-Ops

    4851-00-108-0-05       Budgetted amount Rs.15.00 lakhs

    6851-00-108-0-04 Budgeted amount Rs.0.00 lakhs

NCDC has introduced this scheme with a view to finance Powerloom projects taken up by the cooperatives. The assistance will be in the form of share capital, as well as loan so that the society could meet their capital requirement to arrange preloom and postloom facilities and to provide infrastructure facilities like common workshed, modern looms, godowns, showrooms, marketing assistance etc.  

8) Establishment of Product Development Center  (By  KSPDC)

4851-00-108-0-07     Budgetted amount Rs.5.00 lakhs

        Under this scheme new designs required for the production of various types of fabrics both for domestic as well as export purposes are provided to develop new designs by employing CAD/CAM facilities.  The total cost of the project is Rs.150.00 lakhs.  Out of which 25% from KSPDC Rs.37.50 lakhs and balance 75% from Government Of Karnataka/Government Of India.

9) Special Component Plan for Handlooms & Textiles

       2851-00-103-0-44     Budgetted amount  Rs.442.26 lakhs  (POOLED)

        Under this programme, beneficiaries belonging to SC s will be imparted  training in weaving for a period of 3-6 months. During training a stipend of Rs.500/- will be paid to each beneficiary per month.  After successful training, the beneficiaries will be provided with looms at 60% grant.  In case of houseless weavers, living-cum-worksheds will be provided at unit cost of Rs.30,000/- with  60% grant and 40% as loan.  

10) Tribal Sub-Plan    2851-00-103-0-45 (POOLED)

A sum of Rs.115.02 lakhs is allocated. Under the Tribal Sub-Plan the beneficiaries belonging to Scheduled Tribes will be imparted training in weaving for a period of 3-6 months. During training a stipend of Rs.500/- will be paid to each beneficiary per month. After successful training, the beneficiaries will be provided with looms at 60% grant. In case of houseless weavers, living-cum- worksheds will be provided at unit cost of Rs.30,000/- with 60% grant.

11) Investment in Spinning Mills

    4860-01-190-5-01     Budgetted amount Rs,6.00 lakhs

A sum of Rs.6.00 lakhs has been allotted for the current year for making investment in Spinning Mills.

Since the Spinning Mills are running under loss, the financial assistance are provided for rehabilitating them. In the form of share capita! investment to strengthen the activities of the mills.

12) Weavers Package 

     2851-00-1 03-0-62     Budgetted amount Rs.2000.00 lakhs

    The Government has sanctioned a Special Package for the development of Handloom and power loom weavers.

The following schemes were sanctioned by the Government in its order No.Vakai/110/Jakaie/2003 dated:26.2.2004.

(1) Distribution of free sites to the weavers.

(2) To provide drinking water supply facilities at a cost of Rs.1.50  lakhs per each

     colony for the existing 100 weavers colonies.

(3) To waive-off the interest on loan secured by the weavers Co-operative societies.

(4) To provide subsidy for payment of Max. of 3.5% of interest on working capital

     loan, secured by the Handloom Weaver, KHDC & Co-operation higher than 7%.

(5) Facilities to KHDC weaver:

a) KHDC to waive off Development charges in respect of 1942 houses.

b)  KHDC to meet the interest on the working capital raised by the Corporation

in the name of the weavers,

        c) Government to Waive-off registration fee and stamp duty for the houses of

        3576  weavers under the jurisdiction of the Corporation.

    (6) Technology Upgradation and Skill Development

    a) Technology upgradation of Handlooms

    b) Technology upgradation of Powerlooms

    c) Training programs.

    (7) To transfer the work sheds constructed by KHDC, KSPDC under Vishwa

schemes to Woolen weavers and utilizing them for establishing common facility centre.

    (8) To provide recurring expenditure to Handloom Training Centres at Gadag and Jamakhandi.

    (9) To give incentive of 20% on clearing old Handlooms stock in KHDC, Cauvery

Handloom and Co-operative Institution.

    (10) Establishment of Powerloom parks at Doddaballapur, Belgaum, Davangere and Gadag

    (11) Government to provide 50% power subsidy or Rs,200 per loom per months

    whichever is less to the Electricity used for the power drives looms with not more

    than 5 HP of power arid not more than 4 powerlooms.

    (12) To form a High level committee with Additional Chief Secretary and

    Development Commissioner as Chairman to decide about the purchase of cloth

    required for Public Sectors and different department of the Government.

    (13) Financial reconstructuring   and rehabilitation of KHDC (VRS, Margin Money

    Conversion of Share Capital).

    During 2004-05 Weavers Special Package was revised and the following schemes have been     sanctioned.

    Power Tariff subsidy to powerloom weavers at subsidised rate of Rs.1.25 per unit upto 10 HP and  less than 10 looms (includes preloom facility also)

        Yashaswini Health Scheme extended to weavers.

    Grants has been provided to Karnataka Handloom Technology Institute, Gadag and Advanced Handloom Training Centre, Jamakhandi, Bagalkote District towards recurring expenditure.

    Support to KHDC

    Establishment of Powerloom park at Anekal.

    Modernisation of Powerlooms with additional attachment of warpstop, weft stop motion, positive let – off motion / drop box, Dobby / jacquard / Mini jacquard at the rate of Rs.20,000/- per Unit.

    To impart basic training and skill upgradation.

13) Implementation of Textile Policy

        2851-00-103-0-65   Budgetted amount Rs.80.00 lakhs

A comprehensive Textile Policy of Karnataka (2004-09) has been approved by Government to invest an Rs.341.00 crores over a period of 5 years.The following schemes have been implemented under the Textile Policy implementation programme.

Computerisation, MIS etc.,  to the State Handloom Corporations.

Modernisation of Powerloom Service Centres.

Powerloom modernisation

Skill upgradation

Establishment of New powerloom centre

Establishment of powerloom complexes

Investment subsidy in automatic and semi-automatic powerloom units

To conduct study reports


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