The government has formulated a Rs 3,000 crore package for debt waiver of handloom cooperatives and for providing loans at concessional rates, Minister of State for Textiles Panabaaka Lakshmi said in a written reply to question in Lok Sabha today.
"The Government of India has formulated a financial package of Rs 3,000 crore for waiver of overdues of loans of the handloom cooperatives of the country and also, to provide loans at concessional rates of 7 per cent per annum," an official statement said.
"The package has been sent to the Ministry of Finance," it added.
The minister further said the governments of Assam, Uttar Pradesh, Rajasthan, Maharashtra and Orissa have informed that handloom units are facing threat of closure on account competition from mechanised sector and non-availability of credit besides other reasons.
For the development of the handloom sector and welfare of weavers the government has started five schemes including Mill Gate Price Scheme.
The government has approved Rs 340 crore for 2009-10 for the handloom sector while the revised estimates for the previous fiscal was about Rs 326 crore.