New Delhi, Mar 12 (KNN)The government is implementing a Revival, Reform and Restructuring (RRR) package for handloom sector for loan waiver of handloom cooperatives and individual weavers eligible for waiver under the scheme. 
Under the scheme, interest subvention for loan to the handloom sector at an interest rate of 6 per cent would be applicable as per the Budget 2013 announcement, an official statement said recently. 
The RRR package aims at waiving overdue loans and interest of eligible handloom cooperative societies as well as individual weavers and provides fresh credit with an interest subsidy of 3 per cent for 3 years.  It also provides credit guarantee to societies and weavers which are covered under the package.
Currently, there are 43.31 lakh handloom weavers and allied workers in the sector as per the all India Handloom census of 2009-10.
Government provides financial support to the state governments and other eligible organizations to organize trade fairs and exhibitions all over the country including metro cities to provide marketing platform to the handloom weavers and their cooperative societies, according to Ministry of Textiles.
The government, according to the official statement provides loans to handloom weavers at concessional rates.  In addition, under institutional credit component of Integrated Handlooms Development Scheme (IHDS), individual weavers are eligible for margin money of Rs 4, 200 per weaver; interest subvention at 3 per centfor three years and credit guarantee cover of loan under Credit Guarantee Fund Trust for Micro and Small Enterprise (CGTMSE) scheme. 
Also, for the overall development of the handloom sector including employment generation, the government has taken up various policy initiatives through schemes such as cluster approach, technological up-gradation, marketing assistance, revival of viable and potentially viable societies and availability of subsidized yarn and credit.  Health and life insurance cover are also provided to handloom weavers. 
A new Integrated Skill Development Scheme (ISDS) has been introduced to upgrade the skills and employability of the handloom weavers during 2011-12.   Besides, to address the issue of yarn supply at mill gate price, the government has been implementing the Mill Gate Price Scheme through the National Handloom Development Corporation (NHDC) to eligible handloom weavers.
With effect from January 6, 2012, a new component of 10 per cent price subsidy on hank yarn has been incorporated in the Mill Gate Price Scheme to enable them to compete with power loom and mill sectors. 
Notably, cotton and domestic silk required for production of handloom items are also covered under the 10 per cent price subsidy scheme. (KNN/Gunj)