GUIDELINES FOR IMPLEMENTATION

OF

CLUSTER DEVELOPMENT PROJECT

IN NER

A sub scheme of

NORTH EASTERN REGION TEXTILE PROMOTION SCHEME

(NERTPS)

January 2014

Office of the Development Commissioner for Handlooms,

Ministry of Textiles
Udyog Bhawan, New Delhi

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CLUSTER DEVELOPMENT PROJECT OF HANDLOOM IN NER UNDER NORTH
EAST TEXTILES PROMOTION SCHEME
Introduction :

The Government of India, since independence, has been following a policy

of promoting and encouraging the handloom sector through a number of
programmes and schemes. Due to various policy initiatives and scheme
interventions like cluster approach, marketing initiative and social welfare
measures, the handloom sector has shown positive growth and the income level of
weavers has improved. The handloom fabric production has been very impressive
and grown has been at the rate of 6% to 7% in the beginning of the 11th plan. The
subsequent economic downturn has affected all the sectors in India and
handloom sector was no exception. The production had declined nominally in
2008-09. Now, there has been a marginal improvement and production has
shown upward trend. The export of handloom products has also shown a positive
growth.

As per census report of 2009-10 in north eastern region (NER) States, 90% of
the handloom worker households are weaver households. In contrast to the
national trend, the NER recorded an increase in the number of weavers’
households from 14.6 lakh weavers’ households (in 1995) to 15.10 lakh weavers’
house holds (census 2009-10). A large number of looms in the NER are engaged in
domestic production (62%) and a relatively less proportion is into mixed production
(34%). This is primarily because handloom weaving is a part of the culture across all
social groups but rural households have a good part of domestic fabric
requirements produced within the house.

As per the census report of 2009-10, there are 23.77 lakh looms across the
country out of which 14.11 lakh are in NER. Similarly out of 43.32 lakh persons
engaged in weaving and allied activities, 21.56 lakh are in NER and out of 38.47
lakh adult weaver and allied workers, 9.44 lakh are in NER.

The main objective of the scheme is to develop handloom sector in NER by

providing the required government support to achieve increase in employment
and value of handloom products by means of improvement in design capability,
diversification of product lines and value addition, cluster development and
improvement in labour productivity through various interventions such as baseline
survey, diagnostic study, formation of self help groups (SHGs)/joint liability groups
(JLGs), formation of consortium, awareness programmes, engagement of
designer, computer aided textile design (CATD) etc. The scheme is expected to
have more impact and better outcomes than a strategy based on implementing
other plan schemes of the Ministry of Textiles (MoT). Implementation of the project
based strategy as envisaged in the NER Textile Promotion Scheme would not only
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 enhance utilisation of earmarked funds but also, substantially contribute to the
handloom sector development for the NE region.

S. Components of Cluster Financial assistance per cluster and sharing

No. Development Project pattern for NER under NERTPS
A. Size of the cluster, i) 51-200 handlooms per cluster, Rs. 20-50 lakh
maximum GoI funding and 3 years.
and duration ii) 201-500 handlooms per cluster, Rs. 50-80 lakh
and 4 years.
iii) 501-2000 handlooms per cluster, Rs. 80 -150
lakh and 4 years.

Note: a) Not more than Rs. 50 lakh will be

sanctioned to an individual village.
b) Not more than Rs. 3 crore will be sanctioned
to an individual Block.
i. Sub-components of the
Cluster Development
Programme
ii. Baseline survey, Upto Rs. 2.00 lakh
diagnostic study and (100% GoI)
formation of self help
groups (SHGs)/joint
liability groups (JLGs),
formation of
consortium, awareness
programmes
Iii Product development/ Rs. 2.00 lakh
diversification (100% GoI)
iv Engagement of
Rs. 15,000 p.m. per cluster per designer.
Designer-cum- Rs. 20,
If clusters are adjoining, then one designer will
Marketing Executive look after 2-3 clusters and will be paid Rs. 20,000
p.m.
(100% GoI)
Purcha
V Purchase of computer Rs. 5.00 lakh to be shared in the ratio of 90:10 by
aided textile design the GoI: State Govt/IA/beneficiary
system (CATD) system,
including purchase of
card punching machine
(if required). If only
single item is required,
total eligible amount is
Rs. 2.50 lakh
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 vi Corpus fund for setting Rs. 5.00 lakh
up of yarn depot (100% GoI)
vii Skill up-gradation As far as possible, it will be converted with
Integrated Skill Development Scheme (ISDS). As
per the pattern of ISDS.
viii Setting up of common
U Upto to Rs. 20 lakh to be shared in the ratio of
facility centre/dye 90:10 by the GoI: State Govt./IA/beneficiary
house

ix Credit support Convergence with RRR package.

x Documentation of Rs. 25,000/-

cluster activities (100% GoI)
xi Construction of Upto Rs. 40,000/- per workshed
workshed for individual (100% by GoI for BPL weavers,
(20 sq. mtrs.) 75% by the GoI for APL weavers.)
xii Project Management Rs. 15,000/- p.m. per CDE per cluster. If clusters are
Cost (engaging CDE) adjoining, then one CDE will look after 2-3 clusters.
(100% GoI)
Xiii Group workshed Upto Rs. 3.00 lakh per workshed to be shared in
the ratio of 90:10 by the GoI: State
Govt./IA/beneficiary
xiv Solar lighting in group Rs. 50,000 per workshed to be shared in the ratio of
workshed 90:10 by the GoI: State Govt./IA/beneficiary.
Any other component on need basis and
approved by the DC (Handlooms)/PAMC

(1) Cluster Development Project (Assistance for handloom clusters, having

handlooms in the range of 51- 200 ,201- 500 & 501-2000)

The cluster development approach focuses on formation of weavers’ groups

as a visible entity so that the groups become self-sustainable. Each cluster
covering about 51- 200, 201- 500 & 501-2000 handlooms would be taken up during
the XII Plan period.

(2) Definition of Cluster

The handloom cluster may be defined as a place where there is a large

concentration of handlooms, producing handloom fabrics that would be in tune
with the market demands. These handlooms could be located in close proximity in
two adjoining revenue sub-divisions/villages within an administrative district or
across two (mostly adjoining) districts. In smaller & hilly States, where the villages/

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sub-divisions are of smaller size, the number of villages/sub-divisions may be
increased to ensure the minimum critical size of the cluster. In many clusters across
the country, the number of handlooms are much higher but for the purpose of the
scheme, the size of cluster will be restricted to the part of cluster having handlooms
in the range of 51- 200 ,201- 500 & 501-2000.

(3) Quantum of financial assistance for new clusters

The quantum of assistance for each cluster would be need based,

depending on the requirement of the cluster, the scope of the activities envisaged
in the cluster development project, technical, financial and managerial capacity
of the Cluster Organization, level of maturity and past track record of the cluster
etc. Maximum permissible GoI financial assistance per cluster will be as follows:

Cluster having handlooms 51-200 upto Rs. 20-50 lakh per cluster
Cluster having handlooms 201-500 upto Rs. 50 to 80 lakh per cluster
Cluster having handlooms above 501-2000 upto Rs.80 to 150 lakh per cluster

(4) Baseline Survey, Diagnostic study, formation of Self Help Groups (SHGs)/Joint
Liability Groups (JLGs), Formation of Consortium, Awareness Programmes.

(4.1) Baseline Survey

The baseline survey would require visit to every weaver of the cluster for
preparing the profile of the cluster i.e. number of active handlooms, type of
handlooms, number of weavers (men/women – General/SC/ST/OBC/Minority etc.),
type of yarn used, product range, average weaver income etc. Cluster should not
fall in any of the already sanctioned handloom clusters. A proforma for profile of
the Organization undertaking the baseline survey and diagnostic study is at
Annexure-A. A proforma for Baseline survey and details of assistance required to
the individual weavers in the cluster is at Annexure-A.1.

(4.2) Diagnostic Study

Diagnosis of the cluster is the first step towards taking any implementable
action plan. It will help in identifying the strengths and weaknesses, environment
that the cluster operates in and what strategic steps need to be undertaken for
effective output. The diagnosis will provide strategic direction and likely outputs
that the clusters should aspire to reach over a period of time. The exact action
points will emerge largely out of the trust building and validation by the cluster
actors. The objective of a diagnosis is to a) understand and analyse the current
scenario under which the handlooms are operating in the cluster i.e. analysis of
business operations, nature of production activity, profiling of products, patterns of
production and existing market potential for it, b) Strengths, weaknesses,
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opportunities & threats (SWOT) analysis of the cluster, c) value chain analysis to
identify the gaps and constraints, d) social/institutional analysis of the local
organization serving handloom producers, e) understand the socio-economic
environment that the cluster operates in, f) recommendations in terms of action
plan required to harness the potential of the cluster and the market etc. Also, the
Self Help Groups/Joint Liability Groups will be formed and linked with the banks/
financial institutions for availing the credit. Proforma for submitting the details of
the Diagnostic Study conducted and Action Plan is at Annexure-A.2.

(4.3) Formation of Consortium

The consortium would involve stake-holders from the self help groups (SHGs),
co-operative societies, master weavers, private entrepreneurs, NGOs etc. who
would be required to interact with the weavers and tie up linkages with the
connected organizations like; banks/financial institutions, market
institutions/marketing experts, marketers, legal experts, Government machineries,
weavers etc. one time assistance of RS. 5000 will be provided for holding of
meetings, document activities, field visits, business and awareness training,
engaging legal experts for incorporating the consortium and other professionals for
business development. The consortium will ultimately takeover the activities of the
cluster in/after the 4thyear and run it, thereafter on a self sustainable basis.

(4.4) Awareness Programmes

In order to generate awareness among the weavers about the Scheme,

Weavers’ Credit Cards, Yarn Pass books and other handloom schemes etc.,
awareness programmes will be conducted in the cluster. In each cluster, not more
than five awareness programmes are permissible and will be held in the first three
months of sanctioning the cluster.

Total financial assistance for above purposes will be provided upto Rs.1.5
lakh per cluster (51-200 &201-500 handlooms) and Rs.2.00 lakh per cluster (501-
2000 handlooms).

(5) Product Development/Diversification

To innovate the handloom products with the time, there is a need to

develop/diversify the product so as to stand in the market. Cost towards purchase
of stationery for preparation of paper designs, purchase of raw material for
development of prototypes, cost of transfer of paper design on the fabric will be
met under this component.

For the above purpose, financial assistance upto Rs.1.5 lakh per cluster ( 51-
200 & 201-500 handlooms) and upto Rs.2 lakh per cluster (501-2000 handlooms) will
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be provided, which will be fully borne by GoI. Revenue generated from sale of the
products/samples developed will be ploughed back in the corpus for product
development/diversification.

(6) Engagement of Textile Designer-cum-Marketing Executive

To develop new designs, keeping in mind the design and colour forecast
for domestic and international markets, textile designer-cum-marketing executive
will be engaged who may be from Weavers’ Service Centre (WSC) concerned or
from open market. In case, the designer of WSC is engaged, he/she will only be
paid actual amount of TA/DA and lodging charges by the cluster. It may also be
possible that a pool of designer is set up centrally/state-wise, depending upon the
number of clusters sanctioned in a State, vicinity of these clusters, availability of the
designers etc. to provide design inputs to the clusters as per their requirements.

Designer will be responsible for developing new designs, product

development/diversification, preliminary training to the weavers on transferring
newly developed paper designs on the fabric, marketability of newly developed
handloom products of the cluster and also, for documentation of the
designs/products developed.

For small clusters (51-200 & 201-500 handlooms), one textile Designer-cum-
Marketing Executive will be engaged for atleast 2 clusters who will be provided
professional fee upto Rs. 15,000/- per month per designer. In case, two clusters are
very far and not approachable, designer will be assigned single cluster and will be
paid fee of Rs. 15,000/- p.m.

However, textiles designer with graduate degree in designing fashion

technology or having good experienced alongwith diploma in fashion designing
may be paid Rs. 20,000/- after due approval of DC (Handlooms).

Financial assistance for engaging full-time textile designer-cum-Marketing

Executive will be fully borne by the GoI.

Above professional fee includes all expenses including travel, boarding

and lodging etc. The textile Designer-cum-Marketing Executive should have
atleast two years experience and preferably, he/she should be graduate from
NIFT/NID with atleast one year experience. The textile Designer-cum-Marketing

Executive from open market should be appointed in consultation with the

State Govt. and WSC concerned. In case, textile Designer-cum-Marketing
Executive of other Institutions are to be engaged, he/she should be appointed
with the prior approval DC (Handlooms), for which his/her bio-data should be sent
to this office along with the proposal.
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(7) Purchase of Computer Aided Textile Design System (CATD) System and Card
Punching Machine

One time assistance upto Rs.5 lakh towards purchase of requisite hardware
and software for Computer Aided Textile Design (CATD) System, colour forecast,
trend forecast and other allied requirement, including card punching machine (if
required). In case, only one item i.e. Computer Aided Textile Design System (CATD)
System or Card Punching Machine is required, financial assistance is restricted to
Rs.2.50 lakh per item. Financial assistance for purchase of CATD system and Card
Punching Machine will be shared equally between the Central Government and
the State Government/Implementing Agency.

(8) Corpus fund for setting up of Yarn Depot

Presently, weaver/agency is required to pay National Handloom

Development Corporation (NHDC) an advance amount for purchase of yarn and
the delivery of yarn is made by NHDC in a time frame of about 3-4 weeks. This
delays the production process. Thus, in order to ensure regular availability of yarn
of requisite counts, one-time financial assistance upto Rs.2.00 lakh per cluster (51-
200 handlooms) 3 lakh per cluster (201-500 handlooms) and upto Rs. 5 lakh per
cluster (501-200 handlooms) will be provided as a Corpus Fund to the NHDC to
enable it to ensure supply of yarn to the weavers through the yarn depot at the
cluster. Yarn will be supplied to the weavers by the yarn depots against payment.

(9) Skill up-gradation

Training and re-training are critical inputs for handlooms/workers to adapt

to produce diversified products with improved quality to meet the changing
marketing trends. Financial assistance for skill up-gradation in technical areas like
weaving, designing, dyeing, other pre-loom and post loom activities will be
dovetailed from Integrated Skill Development Scheme (ISDS) as far as possible.
Detailed guidelines of ISDS for handloom sector are available on the website of the
DC (Handlooms) at http://handlooms.nic.in. However, funding for specialized
trainings like value addition, product diversification etc. will be provided under this
component.

(10) Setting up of Common Facility Centre/Dye House

Financial assistance would be available for setting up of Common Facility

Centre, which may include pre-loom, on-loom and post-loom operations, quality
control lab, value addition facility etc. Dye-house as a part of CFC or separately, if
required, may also be set up, preferably with Water Treatment Plant and Effluent
Treatment Plant (ETP).
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 Setting up of Common Facility Centre/Dye House will be set up, after
considering the demand of the stakeholders, their capacity to form legal entity
and run the CFC/Dye House. It should be ensured that Common Facility
Centre/Dye House is set up at a centrally located place so that it caters to the
requirement of weavers, in and around the cluster on user charge basis.

Financial assistance for setting up of these facilities will be shared between

GoI and the State Govt./Entrepreneur/Implementing agency/ Consortium in the
ratio of 90:10. The land cost will not include in the project cost and land will be
provided by State Government/Entrepreneur/ Implementing agency/Consortium
and land cost will be borne by them.

For setting up Common Facility Centre/Dye House, a project report will be

submitted by the Implementing Agency through the State Government and the
same will be approved by a Committee set up in the office of the DC (Handlooms)
after considering its viability and the existing facilities available in the nearby area.
However, experience shows that response for setting up of the CFCs in XI Plan has
not been encouraging.

(11) Credit Support

Credit support to the handloom weavers of the Cluster in terms of margin
money, interest subvention and guarantee cover will be provided under
concessional credit from “Revival, Reform and Re-structuring Package for the
Handloom Sector”. Detailed guidelines are available on the website:
handlooms.nic.in

(12) Documentation of cluster activities

After the cluster development programme is over, it is necessary to
document the activities undertaken so that a record is built up. For this purpose,
financial assistance upto Rs. 25,000 per cluster will be provided by the GoI for
preparing 10 copies of the document.

(13) Construction of worksheds

Financial assistance will be provided to those weavers who do not have a
work place of their own to house the handloom and are working on the handloom
of the Master Weaver/Co-operative Society etc. at some other place. Details of
the financial assistance to be provided are as follows:

Construction of Rs. 40,000/- 100% by GoI for BPL weavers,

workshed 75% by the GoI and 25% by the
(20 sq. mtrs.) State Govt. for APL weavers.

Title of the land should be in the name of the weaver.

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 While the Central assistance will be limited to the level mentioned above,
the State Governments/UTs/Implementing Agencies/Beneficiaries will be free to
meet the additional cost, if any, by means of their own contribution or loans from
financial institutions.

Under this component, preference will be given to the weavers Below the
Poverty Line (BPL). For construction of houses, the weavers may avail assistance
under Indira Awas Yojana of the Ministry of Rural Development while assistance
towards Workshed can be availed by them under this Scheme. Weavers other
than BPL will be considered only after the weavers falling under BPL are covered as
far as possible. The entire assistance of Rs 40,000 will be met by the Central
Government in the case of weavers falling under BPL, while the weavers other than
those falling under BPL will be assisted by the Central Govt. to the extent of 75% i.e.
26,250/- and the remaining to be borne by the State Govt./beneficiary. A
certificate to the effect that the title of land is in the weaver’s name has to be
furnished.

(14) Project Management Cost

To implement, co-ordinate and manage the activities of the Cluster, Cluster

Development Executive (CDE) will be engaged by the Implementing Agency in
consultation with the State Government and the Weavers’ Service Centre
concerned. The CDE should be qualified technical personnel, preferably from
Indian Institute of Handloom Technology (IIHT)/State Government Polytechnic/ITI
etc. with a field experience of atleast 2 years in Textile Unit/Cluster etc. CDE shall
be located in the cluster and responsible for implementation of the scheme in the
assigned cluster. Responsibilities of the CDE will include conducting the baseline
survey, diagnostic study, preparation of a detailed project report (DPR) and
implementation of the project within the time frame as per the cluster action plan,
formation of self help groups (SHGs) of weavers and linking these with
banks/financial institutions, building the local governance framework, linking the
weavers of the clusters with the National Handloom Development Corporation
Ltd., Lucknow for ensuring availability of quality yarn, dyes & chemicals in requisite
quantity etc. With the objective of involving the cluster level stakeholders in the
process of cluster development, supporting and monitoring the activities of the
CDE, a Cluster Development Coordination Group (CDCG), headed by the State
Assistant Director of Handlooms concerned or any other officer (dealing with the
handloom work) designated by the State Director of Handlooms & Textiles will be
formed at the cluster level comprising of the representatives of the weavers, self
help groups, Primary Weavers’ Cooperative Societies, Handloom
entrepreneurs/enterprises, exporters and support service Institutions, National Bank
for Agriculture and Rural Development (NABARD), Banks, State Government
Agencies.
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 Rs.15,000/- p.m. per CDE will be paid. This includes the fee/salary of the CDE,
travel, internet & telephone rent and other office/miscellaneous expenses. If
clusters are adjoining, then one CDE will look after 2-3 clusters.

(15) Any other component

Financial assistance for any other component not covered under the Cluster
Development Programme for new Clusters will be provided with the approval of
the Empowered Committee.

(16) Implementing agency for new clusters

Agencies eligible to implement new clusters are as follows:

1. State Directorate of Handlooms & Textiles/Industries (where handlooms

are under their control)
2. National Level Handloom Organizations
3. State Handloom Development Corporations
4. State Apex Handloom Weavers’ Co-operative Societies
5. Central Government Organizations
6. Non Government Organizations, engaged in the handlooms
{(recommended by the State Govt. and approved by the DC
(Handlooms)}
7. Any other Organization, engaged in the handlooms {(recommended by
the State Govt. and approved by the DC (Handlooms)}

A format for grading the NGOs is at Annexure A.3. NGOs securing at least 60
marks, out of total 100 marks shall only be considered.

(17) Duration of the Cluster Development Project

Duration of the cluster is maximum 4 years from the date sanction of

1stinstalment.

(18) Submission of the proposal of new clusters and release of financial

assistance

Development of each Cluster will be done by the Implementing Agency

through the State Government concerned as a Centrally Sponsored Scheme in a
project mode. State Government will invite proposals/projects from Implementing
Agencies. The Project Report will comprise Baseline Survey, Diagnostic Study report
and a concrete Action Plan for the first year and tentative action plan for the

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second, third and fourth years. The Project Report will be considered by a State
Level Project Committee (SLPC), headed by State Commissioner/Director of
Handlooms concerned for scrutiny, verification etc.

Only proposals that are found viable and beneficial for the socio-
economic development of the weavers in the cluster will be recommended by the
SLPC. The State Government will forward such project proposals to the
Development Commissioner for Handlooms for approval. After due scrutiny &
approval of such proposals by the Office of the Development Commissioner for
Handlooms, financial assistance shall be released in three instalments i.e. upto 30%
of the total GoI share as 1st instalment, upto 40% as 2ndinstalment and balance as
3rdinstalment. 1st installment will be released as advance, 2ndinstalment will be
released on utilization of 70% of the 1stinstalment and 3rdinstalment will be released
on full utilisation 1stinstalment and 70% of the 2ndinstalment. Release of Central
assistance will be made to the IA through the State Government based on
submission of utilization certificates, audited accounts, physical progress as per
action plan etc. as specified in the project. IA will maintain the records as per the
relevant General Financial Rules (GFR).

(19) A committee, headed by Principal Secretary/Secretary (in-charge)

Handlooms will review the progress on quarterly basis and submit the report to DC
(Handlooms) Office. DC Handlooms will arrange to develop a web enabled
application for seeking report on progress of handloom development in north
eastern region. State Governments will be required to submit the report on this
application on quarterly basis.

(20) State Government will arrange to carry out social audit of the weavers
engaged in cluster and submit report with regard to their social upliftment etc. on
yearly basis.

(21) The concurrent audit of the progress will be carried out by the O/o DC
Handlooms through an independent agency.

(22) 5% of the project cost will be earmarked for IEC activities in NER. The funds
of IEC activities would be kept with the Ministry of Textiles for centralised publicity of
the scheme and popularisation of north eastern handlooms of the clusters in India
and abroad.

(23) Efforts should be made to open extension centres at block level and
improvised loom, accessories should be displayed there for demonstration and
awareness of weavers.

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PROFORMA FOR SELECTION OF ORGANISTIONS FOR CONDUCTING DIAGNOSTIC STUDY &
BASELINE SURVEY AND PROFILE OF SELECTED HANDLOOM CLUSTERS

ANNEXURE-A

A. Profile of the Organisation/Implementing Agency (IA):

1. Name of the Organisation
(With full address)
2. Registration Number and date of
Registration.
3. Name & Designation of Office bearers
with Phone No., FAX No. and E.mail etc.
4. Total number of regular manpower with
the Organisation.
5. Balance sheet and profit/ loss account for
the last three years (enclosed)
6. Experience if any in Textiles/Handloom
Sector
7. Bye laws/Resolution of the Organisation.
8. Previous experience in Cluster
development.
9. Scoring of the IA (NGO) as per the pattern
for grading.

Certified that:
• The Implementing Agency has been recommended by the State Level Project
Committee in its meeting held on _________for Baseline Survey and Diagnostic
Study. The minutes of the meeting are enclosed.
• There is no reason to believe that these organizations are involved in corrupt
practice.
• Certified that no UC is pending for rendition in respect of the above grantee
organisation towards any grant(s) received by it under any scheme of the office of
Development Commissioner for Handlooms or Ministry of Textiles or any Department
in the Ministry of Textiles.
• It is certified that the Implementing Agency is in existence and functioning.
• Certified that the above particulars are correct.
• Certified that no complaint(s) in respect of the above mentioned agency have
been received in the State in respect of disbursement of assistance released by the
GOI and State Govt. in the past.

Signature of the President/Secretary/Chief Executives

(Name & Designation)

Countersigned

Director In-charge of Handlooms

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 ANNEXURE-A-1

CLUSTER PROJECT
PROFORMA FOR BASELINE SURVEY OF A CLUSTER

Name of the Implementing agency

Registration No.
Village & P.O.
District
State
No. of Weavers proposed to be covered
Total assistance required.
Name Whether
Sl.
of the Mal Femal Ag Whether the
No
Weav e e e
Covered by
weaver is
the
. loom is
er
Master With Witho
Cooperativ SHG NGO Independe Othe Activ Idl
Weave loo ut
es s s
rs
nt rs
m loom e e
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Family Religion Caste No. of Type No. of Type Products Remarks,

income days of looms of manufactured if any
engaged looms yarn
in a year used
16 17 18 19 20 21 22 23 24

Details of assistance required

Credit
Workshed Skill up-gradation
(Margin money)
Whether Whether BPL/ Whether Discipline of training and No. of beneficiaries
workshed General Workshed discipline – wise number
exists (Yes/No) required? of trainees

25 26 27 28 29

Signature of the Director of Handlooms & Textiles

14
 Annexure –A. 2

CLUSTER PROJECT

PROFORMA FOR SUBMITTING THE DIAGNOSTIC STUDY CONDUCTED AND THE ACTION
PLAN FOR CLUSTER DEVELOPMENT

Sl. Parameters
No
1. Name of the Cluster/Ward
Village
Profile of the Cluster
2. Geographical location of
the cluster (enclose a
map of the cluster)
3. Total number of
handlooms in the cluster
4. Type of handlooms in the
cluster
5. Infrastructure available
6. Present skills of the
weavers
7. Number of handloom Category Men Women Total
weavers SC
ST
OBC
Minority
General
Total
8. Status of the weavers. Existing Proposed to be
covered
A) Number of Primary
Weavers Cooperative
Societies
B) Number of weavers in
Co-operative fold.
C) Number of Master
Weavers
D) Number of weavers
with Master Weavers
E) Number of NGOs
working in handlooms.
F) Number of weavers

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 with NGOs.
G) Number of SHGs
working in handlooms
H) Number of weavers
with SHGs.
I) Number of traders
9. Turnover of the pocket Present turn over Anticipated turn
(Rs. in crore) over
a) Domestic
b) Exports
Total
10. Average earning of the Present Anticipated
weaver per day (In Rs.)
11. Av. no. of working days in Present Anticipated
a year
12. Main handloom products Present Anticipated
of the pocket.
13. Number of Powerlooms in
the pocket.
14. Whether handlooms of
the pocket face
competition with
Powerlooms?

Status of Pocket 5 years back

15. Economic condition of
the pocket in relation to
the position 5 years back
from now.
SWOT Analysis
16. a) Strengths
b) Weakness
c)Opportunities
d) Threats
Justification for recommending the cluster
17. Justification for
recommending the
cluster for development
Strategy
18. a) Cluster
b) Objectives of the
development strategy.
Action Plan

16
19. Interventions required for
development over a
period of 4 years, with
financial outlay for each
intervention. (Paragraph
B.9.2)
20. Total Project Cost. S. Name of the Amount Number
No. component (Rs. in lakh) of
weavers
GOI State Total to be
Govt./ covered.
IA
1. Baseline
Survey,
diagnostic
study and
formation of
SHGs.
2. Product
Development/
diversification
3. Engagement of
Designer-cum-
Marketing
Executive

4. Computer
Aided Textile
Design System
(CATD)
including Card
Punching
machine
5. Skill up-
gradation
programme-
convergence
with Skill
Development
Scheme (IHDS)
6. Common
Facility
Centre/Dye
House
7. Credit (margin
money)-
Convergence
with
concessional
credit of

17
 Revival, Reform
and Re-
structuring
Package (RRRs)
8. Documentation
of cluster
activities
9. Construction of
group wokshed
10. Project
Management
Cost (engaging
of CDE)
11. Solar Lighting in
group work
shed
12 Any other
component on
need basis
and approved
by the
DC(handloom)
Total
21. Proposed Action Plan for Year-wise action plan highlighting the physical
the cluster. and financial targets for 4 years alongwith a
brief project report should be enclosed. The
Action Plan should clearly bring out the
deliverables of the project in terms of increase
in production, productivity, employment and
income of the handloom weavers of the
selected cluster.

1. The beneficiary has not availed of similar assistance under any other scheme
of the State or the Central Government.
2. It is certified that the Implementing Agency is in existence and functioning.
3. Certified that the assets created out of the assistance under the scheme will
not be disposed off without the prior approval of Office of the Development
Commissioner for Handlooms.
4. There is no reason to believe that these organizations are involved in corrupt
practice.
5. Certified that no UC is pending for rendition in respect of the above grantee
organisation towards any grant(s) received by it under any scheme of the
office of Development Commissioner for Handlooms or Ministry of Textiles or
any Department in the Ministry of Textiles.
6. Certified that the above particulars are correct and are verifiable from
Books of accounts of the grantee agency.

18
7. Certified that no complaint(s) in respect of the above mentioned agency
have been received in the State in respect of disbursement of assistance
released by the GOI and State Govt. in the past.
8. Certified that the Implementing agency (s) has obtained necessary
approval from the Banks/financial institutions for credit linkages, wherever
required.
9. Certified that the Implementing Agency has furnished the requisite details in
the proforma A-2 (Baseline Survey of Cluster), enumerating, inter-alia, the
names of the individual weavers, components required and the assistance
required thereof etc. and is verifiable from records.
10. The State Level Project Committee in its meeting held on_____________ has
recommended the proposal. A copy of the minutes of the meeting is
enclosed.
11. Certified that the land of the title is in the name of the weaver.
12. Certified that the proposed cluster does not fall in any of the already
sanctioned/approved/taken up handloom clusters (300-500 handlooms,
5000 handlooms, more than 25,000 handlooms)

(Signature)
President/Secretary of Organisation

Countersigned

(Signature)
Director In-charge of Handlooms & Textiles

19
 Annexure-A.3

CLUSTER PROJECT
SCORE PATTERN FOR GRADING OF NGOs

NAME OF THE ORGANISATION

WITH COMPLETE ADDRESS:
S.No. Score Parameters Maximum Points Remarks
score scored
1. Formal Registration -
2. NGO in existence for more than 3 (three) years -
3. Registration with any other Government 3
Organisation/Department
4. Profile of the President/Executive Officer and 10
experience & qualification of field staff
5. Experience of baseline survey, community 10
mobilization and monitoring & Evaluation
method
6. Experience of Cluster development in 15
handlooms or any other related Sector
7. Experience of Marketing, Networking 13
8. Experience of Technical & Technological 5
guidance
9. Achievements in Handloom Sector/rural 20
development
10. Last three years audited accounts & filing IT 5
returns regularly & obtained PAN
11. Funding by Government 2
12. Experience of direct international 5
collaboration
13. Participation of women, SCs/STs/ Minorities on 7
their Board/staff
14. Training of staff 5
Total 100
Total Marks awarded
Eligible/Ineligible

Signature of
Director In-charge of Handloom & Textiles

Note: Requisite documents must be submitted in support of the above parameters,

else it will not be given weightage.

20