The Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Manmohan Singh, has approved the Revival, Reform and Restructuring (RRR) package for the handloom sector to benefit about 1,500 additional apex and primary weavers cooperative societies. The implementation period of the Revival, Reform and Restructuring (RRR) package for the handloom sector has been given extension of two months (up to February 28,2014), informed the Ministry of Textiles in a press release on Wednesday. Earlier the last date of implementation period of this scheme was December 31, 2013.

Apart from benefiting about 1,500 additional apex and primary weavers cooperative societies, the initiative is expected to benefit in addition to 4,739 societies covered till December 31, 2013 under modified RRR package, the government said in a statement.

The RRR package would be implemented according to the approved financial outlay of Rs 3,130 crore out of which Rs1,100 crore is for waiver of overdue loan and recapitalisation assistance and Rs 2,030 crore for concessional credit component. Hence, there will be no financial implication of the proposal.

The approved interventions will help in re-opening choked credit lines for handloom weavers' cooperative societies and the individual weaver, and fresh credit will be provided at cheaper rate of interest with credit guarantee resulting in bringing them back into positive networth after financial support. NABARD is the implementing agency of the package.

Revival, Reform and Restructuring (RRR) Package scheme was approved by the Government in November, 2011, in pursuance of the budget announcement of 2011-12, and only viable and potentially viable apex and Primary Weavers Cooperative societies (PWCs) based on the audit of 2009-10 were eligible to avail benefit.

Till 31.10.2013, besides 50403 individual weavers and 5462 Self Help Groups (SHGs), out of 44 apex and 15,926 PWC societies, which are functional, only 24 apex and 4073 PWCs were found eligible as per the eligibility norms under the scheme.

The Government of India approved modifications on 23.09.2013 in the RRR package by relaxing certain eligibility norms and extension of the scheme upto 31.12.2013, on requests from various States and handloom organizations to relax eligibility norms.

The revised scheme also facilitates cheaper credit at the rate of six percent interest rate to the handloom sector in line with the budget announcement of 2013-14.

As per modified guidelines, States had to first carry out statutory audit of all their apex and PWC societies up to 2011-12 and also make budgetary provision of the required State share. Till 31.12.13, around 4739 cooperatives have been covered. These states need additional time for completion of the audit. Due to which the Ministry proposed to extend the last date of implementation of the RRR package by another 2 months.