In-Situ Upgradation Scheme for Plain Power Looms

The economically weaker power loom units in India are largely characterised by the technological obsolescence, being unable to invest in brand new modern looms and have been seeking the In-Situ modernisation plan for upgrading their existing plain power looms. By considering this, the Ministry of Textiles, Government of India has introduced the In-Situ Upgradation Scheme for Plain Powerlooms for SSI power loom sector. As part of this scheme, the Government is providing financial assistance to economically weaker power looms units for up-gradation of their existing units. In this article, we will look at In-Situ Upgradation Scheme for Plain Powerlooms in detail. Know more about the Handloom Weavers - Loan Waiver Scheme

Objectives of the Scheme

The primary objective of the In-Situ Upgradation Scheme is to provide financial assistance to economically weaker power-loom units:

For upgrading the existing plain looms to semi-automatic units
To improve the productivity and quality of the fabric being produced by way of fixing specific additional attachments/kits
Enable economically weaker power loom units to face the competition in domestic and international markets.

Eligibility Criteria

The eligibility criteria to obtain the financial assistance under the In-Situ Upgradation Scheme for Plain Powerlooms is listed as follows:

Unit with power loom permit or Acknowledgement against the Information Memorandum issued by the Regional Office of the Textile Commissioner for installation of the Powerloom is eligible for assistance under the scheme.
Unit having a maximum eight existing plain power looms, as per Powerloom Permit or Acknowledgement are only eligible for availing the benefit under the scheme.
- Note: Priority will be given to units having less than four looms
Unit should have an electricity bill in its name or the name of the owner of the power-sharing agreement between lessee and lessor if the premises is on rent basis.

Nature of Attachments/Kits allowed for Upgradation

The existing plain loom will be upgraded with the following attachments as additional features: In-situ up-gradation of plain looms into semi-automatic shuttle looms:

Weft stop motion (Optical Weft Feeler)
Warp stop motion (Electromechanical warp stop motion for spun yarn or photocell type for filament yarn with loom stopping mechanism).
Semi-positive let off motion
Efficient braking device (electro-mechanical).
AntiCrack device
Replacement of metallic part by self-lubricating nylon parts like picking cams, shedding roller, picking a bowl, crank bushes having life more than two years
Mechanical Dobby (cast iron)
Jacquard (cast iron)
Pirn winding machine

In-situ Up-gradation of semi-automatic shuttle looms to shuttleless Rapier looms:

Rapier kit

Quantum and Scheme of Subsidy

The subsidy under the In-Situ Upgradation Scheme for Plain Powerlooms is provided for following up-gradation.

The existing plain power looms to Semi-automatic shuttle looms
The existing upgraded semi-automatic shuttle looms to shuttleless rapier looms
The existing plain power looms directly into shuttleless rapier looms

Category	Percentage of subsidy	Maximum subsidy Amount per loom
Category	Percentage of subsidy	Plain power loom to semiautomatic shuttle loom	Semi-automatic shuttle loom to shuttleless rapier loom (Attachment of only Rapier Kit	Plain power loom to shuttleless rapier loom
General	50 %	15,000	25,000	40,000
SC	75 %	22,500	37,500	60,000
ST	90 %	27,000	45,000	72,000

The maximum ceiling of subsidy per power loom is worked out for attachment or specified kits including the pirn winding machines and rapier kits. The detailed bifurcation of the subsidy given in the table below:

For In-situ Upgradation	Attachments	Category	Maximum GOI subsidy/loom
From existing plain power looms to Semi-automatic shuttle looms	Warp stop motion, Weft stop motion, Efficient breaking device, Semi-positive let-off motion, Dobby, Jacquard, Self-lubricating nylon parts, Anti-crack device & pirn winding machine.	General	Rs.15,000
		SC	Rs.22,500
		ST	Rs.27,000
From existing upgraded semi-automatic shuttle looms already upgraded under In-Situ to shuttleless rapier looms	Attachment of rapier kit for power looms	General	Rs.25,000
		SC	Rs.37,500
		ST	Rs.45,000
From existing plain power looms directly into shuttleless rapier looms	Warp stop motion, Weft stop motion, The efficient breaking device, Semi positive let-off motion, Dobby, Jacquard, Self-lubricating nylon parts, anti-crack device & pirn winding machine Rapier kit	General	Rs.40,000
		SC	Rs.60,000
		ST	Rs.72,000

Prescribed Authority

The Textile Commissioner will implement the In-Situ Upgradation Scheme for Plain Powerlooms via the Regional Offices and Powerloom Service Centers under Textile Commissioner PSCs and TRA-PSCs/State Government Agencies.

Documents Required

The documents required for In-Situ Upgradation Scheme for Plain Powerlooms are explained in detail below:

Electricity bill of the unit
Final Invoice
Quotation/Proforma Invoice

Application Procedure

The application for In-Situ Upgradation Scheme for Plain Powerlooms is explained in detail below: Step 1: Access the concerned Powerloom Service Center or the nearest Regional Office of the Textile Commissioner (RO).

Get In-principle approval

Step 2: The applicant/unit will have to submit an application for in-principal approval in the prescribed format. Provide the details of the attachments/kits to be installed. [pdf-embedder url="https://www.indiafilings.com/learn/wp-content/uploads/2019/04/Guidelines-Powerloom_SSI_Units-6-7.pdf"] Step 3: In-principle, approval will be granted by prescribed Regional Office of the Textile Commissioner within twenty-one days of the receipt of the in-situ up-gradation application and will be intimated to the unit. Step 4: In-principle, approval will be valid for six months within which weavers are required to install kits or attachments and submit the claims to RO of Textile Commissioner.

Extension of Validity of in-principle approval

Step 5: In-principle approval granted by the prescribed Regional Office of the Textile Commissioner can be extended for three months if the units fail to install the kits specified within the six months due to non-availability of kits or other reasons beyond the control of the applicant. [pdf-embedder url="https://www.indiafilings.com/learn/wp-content/uploads/2019/04/Guidelines-Powerloom_SSI_Units-8-9.pdf"] Step 6: The applicant needs to apply for an extension of the validity of in-principle approval to the Regional Office of Textile Commissioner within twenty-one day's expiry of the validity. Step 7: The applicant will acquire the kits and install the same on the existing power looms.

Claim for Release of Financial Assistance

Step 8: After that, the applicant has to submit the claim for release of financial assistance or subsidy to the respective Powerloom Service Centre or Regional Office of the Textile Commissioner supported with details in a prescribed format after the kits are installed and up-gradation of looms are completed.

Field Verification

Step 9: The concerned Regional offices of the Textile Commissioner will depute Joint Inspection Team (JIT) for physical verification of the installation and commissioning of the attachment/kits. [pdf-embedder url="https://www.indiafilings.com/learn/wp-content/uploads/2019/04/Guidelines-Powerloom_SSI_Units-11-13.pdf"] Step 10: The JIT will carry out the physical inspection to confirm satisfactory installation of the attachments and submit a JIT report duly filled and signed along with all the related documents to the prescribed Regional Office of the Textile Commissioner.

Releasing of the subsidy

Step 11: The Regional Office of the Textile Commissioner after examining the JIT reports, will forward the consolidated proposal to Powerloom Development Cell of Office of the Textile Commissioner for approval of the Competent Authority for releasing of the subsidy. The subsidy will be issued on the basic value of kits/attachments excluding tax components.