North East Region Textile Promotion Scheme (NERTPS)

Government of India (GoI) has implemented North East Region Textile Promotion Scheme (NERTPS) to promote and enhance the textile sector, horticulture, handlooms, small-scale powerloom and handicrafts among the North Eastern states. The implementation of the scheme helps to contribute towards the textile industry for state-of-the-art production at large scale, contribution to India’s GDP, domestic and international exportation and preserving cultural heritage.

Overview of NERTPS Scheme

GoI introduced NERTPS, an umbrella scheme to increase and modernise the textile production to develop the garment sector as it directly contributes to India’s economic and employment sector. The scheme provides financial, infrastructure and technical support to support all types of materials for production such as jute, silk, cotton, wool and technical textiles to increase the value of the production. The scheme also helps the textile industry to address production and infrastructure constraints to propel to compete against global standards. NERTPS are implemented in Assam, Manipur, Tripura, Sikkim, Nagaland, Meghalaya and Arunachal Pradesh with a total allotment of Rs.3094 crore. In addition to the allotted investment by the GoI, the Ministry of Finance (MoF) has proposed that the expenditure of this scheme will be met from 10% budget of North Eastern states. NERTPS is supported by several financial assistance from the Ministry of Textiles.

Objectives of the Scheme

To increase and modernise the textile sector to meet the requirements of the government
To provide support to procure raw material, seed banks, machinery and technical assistance
To provide support for skill development, infrastructure and technology upgradation
To provide support to increase design capability, diversification of product lines and value addition
To provide support for better access to domestic and global markets
To provide support for design and marketing support
To provide support for clusters, improved labour productivity and to create common facility centres and
To increase employment opportunities

Strategies and Interventions

MoF framed the following strategies and interventions to achieve the objectives of the scheme. They are: Create new Clusters and Parks: To develop separate textile parks and clusters with relevance to this scheme and for other regular schemes. Marketing and Promotion: Encourage marketing and promotion of textile products and visits to the new cluster or parks to expand the production. Design Studies: To promote design studies with hands-on experience with CFCs or tool sheds. The design will be promoted and periodically reviewed by design consultants to add new designs or methods. Upgradation of Powerloom: Increase the production by upgrading the powerloom units with modern shuttleless looms on the line of the scheme for TUFs and in situ upgradation of powerlooms. Skill Development: To equip the textile sector by providing skill development projects and projects for developments of handicrafts, sericulture, technology upgradation of handlooms and other textile activities. The list of projects that can be implemented under this scheme:

Special project for upgradation of Handloom sector in NER
Integrated Cluster Development Project for the NER
Manipur Sericulture Development Project
Integrated Sericulture Development Project for the NER
Integrated Handicraft Development Project for the NER
Comprehensive Powerloom Development project for the NER
Technology Upgradation of Textile units in the NER (Interest subsidy or Capital subsidy for specified technology upgradation)
Integrated Textiles Parks in the NER
Textile sector Skill Development Project for the NER
Marketing Infrastructure Development Project for the Textile Sector in the NER
Market Promotion of North East Textile & Handloom Products in India and abroad
Integrated Jute Development Projects for the North East

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Components of the Scheme

MoF segregated the components of this scheme for the textile sector for flexible financial assistance.

Cluster Development Programme

S. No.	Components of the Cluster Development Programme	Financial Assistance per cluster	Financial Sharing Pattern	NER Relaxation, if required
A	Cluster Size, maximum GoI funding and duration	Rs.75 lakh for 4 years For 200-500 handlooms		i) Rs.20-50 lakh and 3 years (for 51-200 handlooms per cluster ii) Rs.50-80 lakh and 4 years (201-500 handlooms per cluster) iii) Rs.80-150 lakh and 4 years (501-2000 handlooms per cluster) Note: a) Maximum of Rs.50 lakh will be sanctioned to a village. b) Maximum of Rs.3 crore will be sanctioned to a Block.
Sub-components of the Cluster Development Programme
1	Baseline survey and formation of self-help groups (SHGs)/joint liability groups (JLGs), formation of consortium, awareness programmes	Up to Rs.3 lakh	100% GoI	Up to Rs.1.50 lakh (100% GoI)
2	Technology Upgradation for on-loom activities (up to 80% of the total GoI contribution for the Cluster)	Up to Rs.60 lakh	70:20:10 by the GoI:State:IA or beneficiary for general States. For the Special category States and NER, funding the ratio is 90:5:5	Up to 70% of the total GoI contribution for the Cluster in the ratio of 90:10 by the GoI:State Govt/IA/beneficiary
3	Product development/diversification	Rs.2 lakh	100% GoI	Rs.2 lakh (100% GoI)
4	Engagement of Designer-cum Marketing Executive	Rs.20,000 p.m. for atleast two clusters	100% GoI	Rs.15,000 per month (for per cluster per designer) Rs.20000, If one designer look after 2-3 clusters (100% GoI)
5	Purchase of computer-aided textile design system (CATD) system, including purchase of card punching machine (if required). On the requirement of only a single item, total eligible amount is Rs.2.50 lakh	Rs.5 lakh	50% equal share between GoI and the State Govt./Implementing Agency (IA)	Rs.5 lakh to be shared in the ratio of 90:10 by the GoI: State Govt/IA/beneficiary
6	Corpus fund for setting up of yarn depot	Rs.3 lakh	100% GoI	Rs.5 lakh (100% GoI)
7	Skill up-gradation	Convergence with Integrated Skill Development Scheme (ISDS)	As per the pattern of ISDS	Up to Rs.6 lakh as per the pattern of ISDS
8	Setting up of common facility centre/dye house	Up to 50% of the total GoI contribution for the cluster	GoI 80:20 State Govt./IA/entrepreneurs /consortium	Up to Rs.20 lakh to be shared in the ratio of 90:10 by the GoI: State Govt./IA/beneficiary
9	Credit support	Convergence with concessional credit or from Revival, Reform and Re-structuring (RRR) Package for the handloom sector	As per the pattern of the scheme concerned	Convergence with RRR package
10	Documentation of cluster activities	Rs.25,000	100% GoI	Rs.25,000 (100% GoI)
11	Construction of workshed for individual (20 sq. mtrs.)	Rs.35,000	100% by GoI for BPL weavers, 75% by the GoI for APL weavers	Up to Rs.30,000 per workshed (100% by GoI for BPL weavers, 75% by the GoI for APL weavers.)
12	Project Management Cost (engaging CDE)	Rs.20,000 per month per cluster	100% GoI	Rs.15,000 p.m. per CDE per cluster. If clusters are adjoining, one CDE will look after 2-3 clusters. (100% GoI)
13	Group workshed	-	-	Up to Rs.3 lakh per workshed to be shared in the ratio of 90:10 by the GoI: 14 State Govt./IA/beneficiary
14	Solar lighting in group workshed	-	-	Rs.50,000 per workshed to be shared in the ratio of 90:10 between the GoI: State Govt./IA/beneficiary

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Project Management and Technical Consultants (PMTC)

To provide assistance to prepare projects, implementation and monitor the production, the Ministry of Textiles may select and appoint the Project Management and Technical Consultants (PMTCs) at Project level and Ministry Level. The primary responsibilities would be:

To conduct studies to establish and structuralise the projects and prepare DPRs
To mobilise funds, stakeholders, identifying Implementing Agencies (IA)
Assisting SPVs in developmental and providing interfacing support
Presenting projects before PAMC for approval

PMTCs will be selected by open advertisement and approved by Project Approval and Monitoring Committee (PAMC).

Project Approval and Monitoring Committee (PAMC)

To monitor and approve the projects provided by PMTC, Ministry of Textiles has created Project Approval and Monitoring Committee (PAMC). PAMC shall verify the guidelines, relax the norms and scale of the assistance of the components, review the monitoring progress of the sanctioned projects and revise or reallocate the project cost/components.

Eligibility Criteria

Traditional VSE sectors of Handlooms, Handicrafts, Sericulture and Jute
All Textile sub-sectors
All Allied Fibres sectors
Powerloom Sector
Garmenting and Make-up Sector

Funding Pattern

Sharing Pattern

The expenditure of the project shall be shared between the Ministry of Textiles and IA in the ratio 90:10. The expenditure shall be modified to 100% contribution by the Ministry on certain cases such as, Centre of Excellence

Quantum of Financial Assistance and Release of Funds

The financial assistance for the projects are approved by the PAMC and funds are released in three equal instalments First Instalment: At sanction of the project Second Instalment: Physical progress and utilisation of the project Third Instalment: Physical progress and utilisation of the project Expenses: The Ministry of Textiles shall deduct 5% of the project cost for administration and monitoring the projects.

Process of the Scheme

Step 1: The cluster, park or industry checks if it has adopted the guidelines and meets the required criteria of the scheme Step 2: Submits the project to PMTCs, State Governments or IA Step 3: PMTCs, State Governments or IA verifies with concluded studies and DPRs Step 4: If the project is cleared by the agencies, it sends to the PAMC (Ministry of Textiles) for approval. The project should have 10 copies, Detailed Project report (DPR) along with Annexure I. For more assistance on subsidies for machinery and Workshed, click here.