Scheme Name: Technology up-gradation fund scheme for handloom sector

State: Odisha

Description of the Scheme:

Objectives are as follows:

• Encourage beneficiaries to set up all the facilities at one place, which would ease inter-linking of all the production activities.
• Establish production base with up-graded technology in pre-loom/on-loom/postloom/quality control, etc., as the case may be, under one roof, thus, strengthening capacity to undertake bulk production for domestic and export markets, with improved productivity & quality.
• Reduce production cycle time, thus ensuring delivery of goods in time.
• Achieve product and quality standards and ensure price and quality competitiveness in the domestic and export market

Target group :

Sector of the Scheme:

Eligibility Criteria:

Nature & Mode of Assistance:

1. 5% interest reimbursement of normal interest charged by lending agency on Rupee Term Loan (RTL);
2. 25% capital subsidy on basic value of new machineries and equipments;

Following investments are also eligible to handloom units to the extent necessary for plant and equipment to be installed for Technology Up-gradation and total of such investments will not normally exceed 50% of the total investment in such plant and machinery:

1. Land and factory building including renovation of factory building and electrical installations;
2. Preliminary and pre-operative expenses;
3. Margin      money      required      for     working      capital, specifically required for technology up-gradation;

Investments in installation of following facilities, including necessary equipments will be eligible only upto 25% of basic cost of machinery:

1. Energy saving devices;
2. Effluent Treatment Plant (ETP);
3. Water treatment plant for captive industrial use;
4. In-house R & D including design studio;
5. Information technology including Enterprise Resource Planning (ERP);
6. Total Quality Management (TQM) including adoption of appropriate ISO/BIS standards. (Lab versions of machinery approved for commercial production purposes under TUFS are eligible).
7. Captive power plant (including non-conventional sources) of units availing of TUFS loan Husk Fired Boiler accompanying textile modernisation/expansion.

"Financial Information (Subsidy, low interest rate, etc.)":

"Other Assistance (Procurement of machinery, Technology /Marketing, International Cooperation, etc.)":

How to apply: Department of Handlooms, Textile & Handicrafts, Government of Odisha

Whom to Contact:

Directorate of Textiles and Handlooms, Satya Nagar, Bhubaneswar, Odisha

E-mail: textsec@ori.nic.in Phone / Fax: 0674-2501383