Yarn Bank Scheme

The Ministry of Textiles, Government of India had launched a Yarn Bank Scheme as one of the components of PowerTex India scheme with an aim to avoid fluctuation in yarn price.

Objectives of the Scheme

The objectives of the Yarn Bank Scheme are:

• To provide interest-free corpus fund to Special Purpose Vehicle (SPV) or Consortium to enable them to purchase yarn at a wholesale rate and give the yarn at a reasonable price to the small weavers.
• To avoid middleman and local supplier’s brokerage charge on sales of yarn.

Financial Assistance under the Scheme

Under the scheme, an interest-free corpus fund up to Rs.2.00 crore would be provided to the Special Purpose Vehicle (SPV)/Consortium formed by power loom weavers.

PowerTex India

PowerTex India is a comprehensive scheme for power loom sector development. The components of the scheme are:

• In-situ Upgradation of Plain Power looms.
• Group Workshed Scheme (GWS).
• Yarn Bank Scheme.
• Common Facility Centre (CFC).
• Pradhan Mantri Credit Scheme for Power loom Weavers.
• Solar Energy Scheme for Power looms.
• Facilitation, IT, Awareness, Market Development and Publicity for Power loom Schemes.
• Tex Venture Capital Fund.
• Grant-in-Aid and Modernisation & Upgradation of Power loom Service Centres (PSCs).

The PowerTex India is an integrated scheme for the development of the power loom sector. PowerTex India aims to boost common infrastructure and modernise the power loom sector in the country.

Month: Current Affairs - January, 2019