North East Region Textile Promotion Scheme (NERTPS)

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 ProgrammeFinancial Assistance per clusterFinancial Sharing PatternNER Relaxation, if required
ACluster 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
1Baseline survey and formation of self-help groups (SHGs)/joint liability groups (JLGs), formation of consortium, awareness programmesUp to Rs.3 lakh100% GoIUp to Rs.1.50 lakh (100% GoI)
2Technology Upgradation for on-loom activities (up to 80% of the total GoI contribution for the Cluster)Up to Rs.60 lakh70:20:10 by the GoI:State:IA or beneficiary for general States. For the Special category States and NER, funding the ratio is 90:5:5Up to 70% of the total GoI contribution for the Cluster in the ratio of 90:10 by the GoI:State Govt/IA/beneficiary
3Product development/diversificationRs.2 lakh100% GoIRs.2 lakh (100% GoI)
4Engagement of Designer-cum Marketing ExecutiveRs.20,000 p.m. for atleast two clusters100% GoI

Rs.15,000 per month (for per cluster per designer)

Rs.20000, If one designer look after 2-3 clusters (100% GoI)

5Purchase 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 lakhRs.5 lakh50% 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
6Corpus fund for setting up of yarn depotRs.3 lakh100% GoIRs.5 lakh (100% GoI)
7Skill up-gradationConvergence with Integrated Skill Development Scheme (ISDS)As per the pattern of ISDSUp to Rs.6 lakh as per the pattern of ISDS
8Setting up of common facility centre/dye houseUp to 50% of the total GoI contribution for the clusterGoI 80:20 State Govt./IA/entrepreneurs /consortiumUp to Rs.20 lakh to be shared in the ratio of 90:10 by the GoI: State Govt./IA/beneficiary
9Credit supportConvergence with concessional credit or from Revival, Reform and Re-structuring (RRR) Package for the handloom sectorAs per the pattern of the scheme concernedConvergence with RRR package
10Documentation of cluster activitiesRs.25,000100% GoIRs.25,000 (100% GoI)
11Construction of workshed for individual (20 sq. mtrs.)Rs.35,000100% by GoI for BPL weavers, 75% by the GoI for APL weaversUp to Rs.30,000 per workshed (100% by GoI for BPL weavers, 75% by the GoI for APL weavers.)
12Project Management Cost (engaging CDE)Rs.20,000 per month per cluster100% GoIRs.15,000 p.m. per CDE per cluster. If clusters are adjoining, one CDE will look after 2-3 clusters. (100% GoI)
13Group 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
14Solar 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

To know more on GST rate for textile and apparel clothing, click here.

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.

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