IndiaFilings » Learn » Integrated Wool Development Programme

Integrated Wool Development Programme

Integrated Wool Development Programme

Integrated Wool Development Programme

Integrated Wool Development Programme (IWDP) is an umbrella programme, implemented in all wool-producing states to support small, medium and large scale wool-producing units. The scheme was also implemented to boost the economic status of the wool-producing manufacturers in the rural regions of the country.

Goal of the Scheme

The primary goal of the scheme is to stop the decline of the wool production in India and uplift the manufacturing process by offering various components in this scheme and to enable a steady growth in the production of wool among all rural wool-producing sectors.

Objective of the Scheme

  • To increase the annual wool production in India
  • To improve the quality of wool fibre and quality of processing the wool
  • To establish service and research centres to improve the quantity and quality of import and export production
  • To increase marketing and branding promotion for export production of wool

Components of the Scheme

GoI has created several components under the IWDP programme to boost wool production. The components are as follows:

S.No. Components Budget allotted (Rs. In crore)
1 Wool Marketing Scheme (WMS) 10.00
2 Wool Processing Scheme (WPS) 8.00
3 HRD and Promotional Activities 4.00
4 Social Security Scheme (SSS) 12.00
5 Angora Wool Development Scheme (AWDS) 2.00
6 Wool Development Scheme (WDS) 14.00
7 Reconstruction Plan for J&K State (Pashmina Promotion Programme) 50.00
8 Establishment Expenses (CWDB) 12.00
Total allocation for 3 years (2017-18 to 2019-20) 112.00

To know about GST rates on wool, click here.

How to Avail this Scheme

Implementing Agencies (IA)

To avail any of the components in this scheme, individuals, clusters or SMEs can approach through Implementing Agencies (IA) by providing project proposal. The nodal technical agency for implementing the programme shall be Central Wool Development Board (CWDB) and the programme will be implemented through:

  • Central or State Animal Husbandry Departments
  • Wool Boards, Corporations or Federations of Wool producers
  • Wool Research Institutions set up by Central or State Governments as indicated in the Appendix

Funding for IA

The funds (except for Pashmina Promotion Programme) for IA are released through Textile Commissioner as per the progress and norms of the scheme.

The funds for Pashmina Promotion Programme shall be released by CWDB

Utilization Certificate: The IAs should submit the Utilization Certificate along with a statement of component-wise physical and financial progress, accounting for the funds released by Textile Commissioner or CWDB as per the guidelines of GPR 2017.

Project Proposals

After seeking assistance from the IAs with the project proposal, the IAs prepares Detail Project Proposal (DPR) as per the required norms.

To create DPR, IA examines the following contents in the project:

  • Project Area
  • Methodology for implementation of the project
  • Location of the unit (for transportation and ease of access)
  • Expected outcome in quantifiable terms
  • Year-wise physical and financial action plan
  • Specification of items

Timelines of the Project

After creating the data, IA submits the proposal to CWDB in the prescribed format of Annexure-I.

Project Approval

The IAs creates the DPR, furnishes the following details and submits to CWDB for approval of the project. The details are:

  • Name and address of the beneficiaries
  • Number of sheep, angora rabbits or pashmina goats
  • Details of Bank Account
  • Aadhaar Card
  • PAN Card

To monitor and approve the proposed project by the IA, Ministry of Textiles (MoT) has formed a technical committee to assess, verify, approve the project and release funds for the project under the chair of the Textile Commissioner.

Funding Pattern of the Scheme

Up to one crore: For project proposals up to one crore, the Technical Committee (TC) organised by the (MoT) shall approve the release of funds through Textile Commissioner (TXC) or CWDB.

Above one crore: For project proposals above one crore, the Technical Committee recommends the project to the Executive Committee (EC). The EC includes the governing body of the CWDB, chaired by Joint Secretary (wool) (MoT). The EC verifies the project and recommends to Secretary (MoT) for approval of the project.

Evaluation for release of funds: The funds are released in instalments as per the reports submitted by the monitoring and evaluation committee and IAs according to the GFR and guidelines of the scheme.

The EC also verifies the quarterly progress of the project report by IAs furnished in Annexure-II and physically verifies the implementation of the project for the release of funds.

Duration of the Project

The TC, EC or MoT approves the duration of the project as per the requirement of the project as per the guideline of the scheme.

Monitoring and Evaluation

To assess the quality and process of the projects, Project Monitoring Committee (PMC) has been set up the MoT. PMC consists of members from MoT, IAs, TXC and CWDB.

TXC shall monitor and evaluate the progress of production and financial targets, utilization of funds and may provide suggestions for improvement. Projects implemented by IAs shall be monitored by regional offices of the state.

Procedural Conditions for Implementing the Scheme

The following procedural conditions should be adopted for the implementation of the schemes in the project:

For IAs:

  1. The IAs has to submit an Undertaking stating that it will follow the conditions as prescribed in the Sanction Order
  2. All IAs should maintain separate accounts for the funds received for implementation of different schemes of wool Sector. The IA shall submit its accounts for audit promptly whenever required by TXC/CWDB
  3. The assistance or grant for IAs shall be released based only on the progress of the project
  4. IAs availing support under schemes will be responsible for implementing the project components, timeline and targets of the project as per the guidelines
  5. The IAs shall submit to the TXC/CWDB such reports, statements etc. as required by the TXC/CWDB
  6. The IAs shall maintain a register in the prescribed form, acquired wholly or partly out of the grants and a copy thereof shall be furnished to the Board. The register of assets should be available and open to scrutiny by audit
  7. Utilization Certificate must be furnished by the IAs in the prescribed format under the General Financial Rules and submitted to CWDB immediately after the close of the financial year or before the request of the release of next instalment
  8. IAs should ensure that duplication is avoided and are not getting the benefit of identical nature other than the selected animals and beneficiaries from other schemes/programme of State/Central Government
  9. AADHAR Card will be used for identification of beneficiaries and release funds through the Direct Benefit Transfer (DBT) mode, following the prescribed DBT guidelines regarding the protection of privacy rights of an individual
  10. The IAs should maintain a record of beneficiaries along with their category such as SC & ST/BPL/women etc.
  11. The IAs will keep evidence (photographs\video) of major activities implemented under the scheme
  12. IA will bear the cost of maintenance of equipment or machinery brought for CFC & giving service to the wool sector. IAs should bear the responsibilities for the proper function of all the equipment and it may levy appropriate user charges
  13. The IAs shall acquire the machinery or plant installed under the scheme after ten years of sanction from CFC
  14. The IAs is bound to follow the Right to Information Act

For Funds and Maintenance of Accounts/property:

  1. The expenditure of the project shall be incurred by principles or guidelines of General Financial Rules (GFR) 2017 of Government of India/scheme guidelines
  2. Unspent amount shall be refunded to the Office of the Textile Commissioner or CWDB after the completion of the project
  3. The funds released for the projects shall be utilized for the developmental cause of the projects only.
  4. If the grantee could not utilize the grant, the grantee must refund the amount with interest (if any). However, if re-adjustment of the fund is required, IAs shall provide details in a written form to Textile Commissioner/CWDB with justification.
  5. The Scheme will be inspected and evaluated by TXC/CWDB or by any other persons authorized by the Ministry of Textiles to assess the impact of the respective scheme in the project areas as per need

If a building has been constructed by the grant provided for the project, the owner of the building will be responsible for the maintenance of building.

For verification and GST procedures, click here.

Process of the Scheme

Step 1: The individual, cluster units or SMEs approach IAs with the project proposal

Step 2: IAs collects DPR for the project as per the norms and conditions, furnishes as per Annexure I and submits it to CWDB

Step 3: CWDB verifies the data and forwards to the technical committee

Step 4: The technical committee assess the value of the project and approves the project if it is up to one crore

If it exceeds more than one crore, the technical committee forwards to EC

Step 5: Upon verification, TxC or EC release funds in instalments to IAs

Step 6: Funds are further released by TxC or EC by the reports submitted by IAs and monitoring committee