[pib] Yarn Bank Scheme

Note4students

Mains Paper 3: Economy | Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth

From UPSC perspective, the following things are important:

Prelims level: Yarn Bank Scheme

Mains level: The importance of textiles and apparels industry and issues related to it.

News

Yarn Bank Scheme

1. To avoid fluctuation in yarn price, government has launched a Yarn Bank Scheme as one of the component of PowerTex India with effect from 01.04.2017 to 31.03.2020.
2. The Scheme provides interest free corpus fund up to Rs.2.00 crore to the Special Purpose Vehicle (SPV)/Consortium formed by powerloom weavers to enable them to purchase yarn at wholesale rate and give the yarn at reasonable price to the small weavers
3. It aims to avoid middleman and local supplier’s brokerage charge on sales of yarn.

Objectives

1. To provide interest free corpus fund to Special Purpose Vehicle (SPV) / Consortium to enable them to purchase yarn at wholesale rate and give the yarn at reasonable price to the small weavers.
2. To avoid middle man/ local supplier’s brokerage charge on sales of yarn.

Eligibility Beneficiaries

1. Registered Co-operative Society.
2. Trusts
3. Company set-up under the Companies Act, 1956 as amended.
4. Firm set-up under the Limited Liability Partnership Act, 2008 as amended.