The government has come out with a 3,884 crore rupees financial package for the handloom sector. This follows 18,000 job loses in the sector in four months up to March 2011.
The package includes one-time waiver of overdue loans and interest of handloom cooperative societies and individual weavers across the country.
Of this, 3,021 crore rupees will account for repeal of loan and recapitalisation of 15,000 handloom weaver cooperative societies and 500 crore rupees for loan waiver for individual weavers as on March last year.
Repeal of loan of individual weaver has been capped at 50,000 rupees.
Out of the 3,884 crore rupees package, 3,137 crore rupees will be provided by the Central government with states accounting for the remaining 747 crore rupees.
Government has attributed loss of employment to economic slow down which has adversely hit textile sector also with 1, 21,000 jobs having been lost in four months beginning December 2010.
