Handloom and Khadi Weavers Financial Benefit Scheme 2024: Support for One Time Settlement (OTS) of NPA Accounts of PWCS helps Primary Weavers Cooperative Societies (PWCS) clear their overdue debts with the help of the West Bengal government. The scheme covers 100% of the overdue principal and 25% of the overdue interest on NPA accounts as on 31/03/2024.
West Bengal government launched this scheme on 7th March 2024 under the Micro, Small & Medium Enterprise and Textiles Department. It will stay open for five years, so it is still available for eligible societies in 2026. The aim is to make PWCS debt free by settling Non Performing Asset (NPA) accounts held with the West Bengal State Cooperative Bank Ltd. or the District Central Cooperative Banks (DCCBs).
Handloom and Khadi Weavers Financial Benefit Scheme 2024: Support for One Time Settlement of NPA Accounts of PWCS - Introduction
This scheme works as a key support measure under the Micro, Small & Medium Enterprise and Textiles Department of West Bengal. It covers viable and potentially viable Primary Weavers Cooperative Societies (PWCS) that carry NPA accounts with the state cooperative bank or the district cooperative banks.
The scheme pays a fixed part of the overdue amount to the lending bank, and the bank writes off the remaining overdue interest. This way, a society does not have to carry the full burden of its old dues and can keep weaving without the weight of past liabilities.
Key Information
| Detail | Information |
|---|---|
| Scheme Name | Handloom and Khadi Weavers Financial Benefit Scheme 2024: Support for One Time Settlement (OTS) of NPA Accounts of PWCS |
| Level | State |
| Beneficiary State | West Bengal |
| Category | Business & Entrepreneurship |
| Target Beneficiaries | Registered Societies, Business Entities, Individuals, Joint Liability Groups (JLGS), NGOs, Self Help Groups (SHGS) |
| Benefit Type | Cash |
| DBT Scheme | No |
| Nodal Department | Micro, Small & Medium Enterprises and Textiles Department |
| Scheme Validity | Five years from 7th March 2024 |
Benefits
This scheme gives clear financial support to viable PWCS by covering a fixed share of their outstanding dues as on 31/03/2024. The support is simple and easy to understand.
| Benefit Component | Coverage Details |
|---|---|
| Overdue Principal | 100% covered by the scheme |
| Overdue Interest | 25% covered by the scheme |
| Remaining Interest | 75% of overdue interest and all penal interest are written off by the lending bank |
For example, if a weavers' society has an overdue principal of ₹1,00,000 and accrued interest of ₹20,000, the scheme will pay ₹1,00,000 (principal) plus ₹5,000 (25% of interest) to the bank. The bank will write off the remaining ₹15,000 interest.
Eligibility
To get this support, a society or individual should fall under one of these groups:
- Handloom Weavers: This includes Entrepreneur Weavers (Master Weavers), individual weavers, allied workers linked to handloom production, and those working within cooperative structures or handloom clusters.
- Khadi Weavers: Individuals engaged in legitimate khadi production activities.
- Registered bodies: PWCS and other societies registered under the Cooperative Societies Act, Societies Act, Partnership Firm Act, or Companies Act that are engaged in khadi or handloom work.
Application Process
Applications can be submitted online or in the offline format given by the Department of MSME and Textiles. Applications are to be addressed to the Director, Textiles.
STEP 1 - Go to the official portal of the Directorate of Textiles at textilesdirectorate.wb.gov.in and open the Handloom and Khadi Weavers Financial Benefit Scheme section to see the latest forms and rules.
STEP 2 - Fill in the application form for One Time Settlement (OTS) of NPA accounts with the correct details of the society and its bank account.
STEP 3 - Attach the required documents and submit the application to the Director, Textiles, either online or at the district helpdesk.
STEP 4 - Wait for the scrutiny committee to check the proposal. Field enquiries may be done if needed before the claim is approved.
Documents
Keep the following documents ready before applying:
- Recent passport size photo.
- Aadhaar card for identity verification.
- Valid proof confirming the status of the society or individual as a Handloom or Khadi Weaver.
- Any additional documents asked by the department during the review process.
References
Official Scheme Details - Directorate of Textiles, West Bengal
West Bengal Handloom and Khadi Weavers Financial Benefit Scheme 2024 Portal
FAQ's
What is the definition of PWCS?
PWCS refers to Primary Weavers Cooperative Societies that are officially registered under the West Bengal Cooperative Societies Act.
What is the financial support extent?
State government pays 100% of the overdue principal and 25% of the overdue interest for viable and potentially viable accounts as on 31/03/2024.
What does NPA mean?
NPA stands for Non Performing Assets, which are loans or advances that are in default or in arrears.
How is the remaining interest handled?
The lending bank (West Bengal State Cooperative Bank or District Central Cooperative Bank) writes off the remaining 75% of overdue interest and any applicable penal interest.
Who manages this scheme?
The Micro, Small & Medium Enterprise and Textiles Department is responsible for implementation and monitoring.
How are claims processed?
A designated committee scrutinizes all proposals, conducts field enquiries if necessary, and makes recommendations to the Director of Textiles or the CEO of KWBVIB.
What happens if information is falsified?
If false information is provided or facts are misrepresented, the department will revoke all claims and benefits linked to the application.
Can I apply if I used other schemes before?
Yes, societies that have earlier received incentives or subsidies under other government schemes remain eligible for this new support.
How do I file a grievance?
If there are concerns about decisions made by the Directorate of Textiles, write to the Principal Secretary, Department of MSME&T, Government of West Bengal.
Is the assistance provided more than once?
No, this is a one-time financial support measure.
What counts as a Khadi Society?
This includes entities registered under the Cooperative Societies Act, Official Trustees Act, Societies Act, Partnership Firm Act, or Companies Act that are engaged in khadi or handloom activities.