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Group Workshed Scheme

Group Workshed Scheme

The Government of India has implemented the Group Workshed Scheme to simplify the establishment of worksheds in a new cluster or upgrade an existing cluster. The Ministry of Textiles approved the scheme during the discussion of the Standing Finance Committee under the directorship of the Secretary of Textiles.

Introduction to Group Workshed Scheme

The Scheme for Group Workshed for the Powerloom Sector was formulated by making the necessary modifications to the Group Workshed Scheme which was prominent back then. These changes were made in the decentralized powerloom sector in order to organise individual powerloom units as a cluster. Moreover, this would result in improved working conditions in terms of premises and work environment as well as enhanced Work Efficiency ratio and their competitiveness in the universal market.

Objective of Group Workshed Scheme

  • The primary objective of the Group Workshed Scheme is to simplify the establishment of worksheds in terms of modern looms in a new cluster or an existing one.
  • This measure is bound to provide the required scale of hike in the economy for Business Operations.
  • The Worksheds contributed under the Group Workshed Scheme is inclusive of the space required for setting up modern machine looms, weaving preparatory and sectional warping machines.
  • The space provided also includes the necessary functional area for the loom.
  • The Area of Modern looms set up under the Group Workshed Scheme is enlisted based on the following scale:
    • Automatic Loom: 200 Square Feet
    • Shuttleless Loom: 400 Square Feet
    • Wider width Shuttleless Loom: 600 Square Feet
    • Dormitory: 125 Square Feet/Person

Features of Group Workshed Scheme

  • According to Group Workshed Scheme, only 40% of the loomage would be accepted under weaving preparatory like Sectional warping machine, Sizing machine, etc.
  • This 40% loomage will also comprise of areas for common facilities such as sample display room, testing lab, office and worker’s Amenities.
  • The beneficiary is permitted to avail infrastructure benefits like:
    • Internal Road can be laid to the extent of upto 10% of the expenditure provided.
    • A total number of four sheds or more will be provided, and a minimum of one of these sheds will be proposed for the house of weavers with or without power looms.
  • The beneficiaries are not generally eligible for any infrastructure benefits under other schemes of Ministry of Textiles apart from the Group Workshed Scheme.

Eligibility Criterion

  • The beneficiaries eligible to apply for this Scheme includes Weavers and Entrepreneurs associated with powerlooms units, including master weavers, registered co-operative societies of powerloom weavers or any new entrepreneurs individually or in a group.
  • A group of individuals applying towards claiming benefits under Group Workshed Scheme should consist of a minimum of four weavers or entrepreneurs having a separate legal entity.
  • Inside the Workshed either 48 modern looms (automatic/ single width shuttleless looms) or 24 wider-width shuttleless looms with four persons in a group are to be installed.
  • Each beneficiary should have at least four looms.
  • Only machinaries which are TUFS (Technology Up-gradation Fund Scheme) compatible can be installed.

Eligibility

  • State Government and its affiliated agencies.
  • Any Company set-up under the Companies Act, 1956 amended under the Limited Liability Partnership Act, 2008 by a group of powerloom owners.
  • The local sector Powerloom Association.

Subsidy Chart for Group Workshed Scheme

The Group Workshed Scheme also provides its beneficiaries with land and construction cost at Subsidized prices. This is depicted in the table shown below:

S.NoCategoryEligible Subsidy on per unit cost of constructionCapital amount on Subsidy given per Sq.ft
1General40%INR 400
2SC75%INR 750
3ST90%INR 900

For further details or clarifications required regarding the Group Workshed Scheme, kindly visit the Official Page of ‘Ministry of Textiles’.

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