INDEX

Content Page No.

1 Executive Summary i-xx

2 A macro perspective of Handloom Sector 3

3 Study of Handloom Sector in BiharContext and Approach 9

4 Socio-Economic Status of Weavers 12

5 Infrastructure and Raw Material 16

6 Production, Marketing and Credit 22

7 Cluster Mapping 26

8 State Govt. Training Centres 31

9 Processing Plants and Co-operative Mills 37

10 Proposed Business Plan for Revival of the Sector 42

11 Implementation Mechanism for Proposed Business Plan 50

12 Proposed Budget 53

Annexure Establishing A Model Integrated Handloom Park in 56

Bhagalpur

2
 Chapter-1 : A macro perspective of Handloom Sector

1.1 Textile Industry

Textile industry meets one of the basic needs of life and has therefore been one of the
first industries to develop worldwide. In India, too, industrialisation began with the textile
industry and the sector continues to play a significant role in the economy with
contribution of 14 % to industrial production, 16 % to export earnings and 18 % to
employment in the industrial sector. The industry is providing direct employment to
around 350 lakh persons and has high growth potential given its inherent strengths such
as abundant raw materials, low labour cost and a thriving domestic and global market.
With annual exports amounting to US$ 17 billion in 2005-06 and very low import
intensity (1.2 %), Indian textile industry is also the single largest foreign exchange earner
for the country.

1.2 Handloom Sector

In this age of rapid mechanization, Handloom evokes images of a bygone era. This
though, is far from true. Even as the sector has seen a gradual decline over the years, it
still provides employment to about 65 lakh persons. It also contributes to our foreign
exchange earnings with the sector exports amounting to around US $ 550 million. More
important, the sector remains a source of livelihood for the most marginalized of our
population. Also, the sector represents and preserves the legacy of our age old socio-
economic traditions and rich diversity like no other.

1.2.1 Stagnation and Decline

Often romanticized, the sector is today largely a story of impoverished weavers who are
fast migrating to large cities in search of alternative sources of livelihood and ending up
as unskilled labour for other sectors. The sector is passing through difficult days, as it has
largely failed to keep pace with the change in market conditions. Despite a slew of
schemes and programmes run by various government agencies for promoting the sector,
production in handloom sector has been continuously declining over the years.

3
 Production of cloth- mill. Sq. mtr.
30000
25000
20000
Mills
15000
Powerlooms
10000 Handlooms
5000 Hosiery
0
1996- 1999- 2002- 2004-
97 2000 03 05

While the total production of cloth has increased from 34,838 million sq mtr in 1996-97
to 45,378 million sq mtr in 2004-05, the production of handloom sector has declined from
7,456 million sq. mtr to 5,722 million sq. mtr during this period. Thus, while the total
production of cloth has increased by about 30 per cent during this period, the production
of handloom sector has actually declined by about 23 per cent. The data available from
the Second Handloom Census (1995-96)- the last such survey done nationwide - also
shows that the total number of handloom units in the country declined from 29.97 lakhs
in 1987-88 to 25.42 lakhs in 1995-96. The number of looms declined from 37.79 lakhs to
34.86 lakhs during this period.

This has resulted in the share of handlooms in the total production of cloth coming down
from 21.40 % in 1996-97 to a mere 12.61 % in 2004-05.

4
Share in Fabric Production -1996-97
Mills
6%
Hosie ry
16%

Handlooms
22%
Powerlooms
56%

Share in Fabric Production - 2004-05

Mills
3%
Hosie ry
20%

Handlooms
13%
Powe rlooms
64%

5
1.2.2 Regional Distribution

The Handloom sector has great regional variations and some of the states like Assam and
Manipur have rich handloom traditions and dominate the sector.

Bihar
2%
WB O the rs
9% 34%

Manipur
9%

Assam
46%

As per the Second Handloom Census, the states of Assam (10.97 lakhs), West Bengal
(2.22 lakhs) and Manipur (2.15 lakhs) together accounted for as much as 64 per cent of
the handloom units. Other states with major share were Tamil Nadu (2.02 lakhs) Andhra
Pradesh (1.45 lakhs) and Uttar Pradesh (1.42 lakhs).
Bihar (0.52 lakhs) though accounted for merely 2 % of handloom units.

1.2.3 Schemes and Programmes

The decline in the sector has happened even as the Govt. of India has been operating
various schemes and programmes aimed at promotion of this sector. The Development
Commissioner (Handlooms) is the apex agency for promotion of handloom sector at the
national level. Major Schemes/programmes being run are as follows:

Deen Dayal Hathkargha Protsahan Yojana (DDHPY)

The scheme, in effect since April 2000, has a comprehensive focus and provides
assistance for a range of components like margin money to avail credit, purchase of loom,
dobby, jacquard, accessories; infrastructure support; design input; publicity; marketing
incentive; transport subsidy and strengthening of handloom organisations. The sharing of
grant portion of this Centrally Sponsored Scheme, between the central government and
state governments, is in the ratio of 50:50 except in the case of North Eastern States,
Jammu & Kashmir, Uttarakhand and Himachal Pradesh where the funding pattern is in
the ratio of 90:10. Agencies where 100% members are from SC/ST/Minorities/Women,
the funding pattern is in the ratio of 75:25. The assistance for marketing incentives under
the scheme, however, is in the ratio of 50:50 between central and state government in
respect of all the States.

6
Prior to the introduction of the DDHPY, most of the schemes were aimed at benefiting
the weavers under the cooperative fold only. The DDHPY is covering weavers under
both cooperative and non-cooperative fold.

Handloom Export Scheme

The objective of this scheme is to promote marketing efforts of the handloom agencies
and individual exporters for the development of export-worthy handloom products and
their publicity & marketing. The assistance is thus given in the form of organization of
exhibitions and fairs, setting up of urban haats and publicity etc.

Mill Gate Price Scheme

In operation since 1992-93, the objective of the scheme is to provide yarns to handloom
weavers organizations at the mill gate price. The National Handloom Development
Corporation (NHDC) is the only agency authorized to implement the scheme. NHDC has
got 110 functioning Yarn Depots set up by associating State Handloom
Corporations/Apex Bodies/Weavers Cooperatives/Exporters/Master Weavers, etc. from
where yarn is being supplied to weavers at mill gate prices. Additional 273 yarn depots
have been opened this year.

Integrated Handloom Training Project

Introduced in Dec. 2003, the project envisages skill up-gradation of handloom

weavers/workers in Weaving Technology, Design Development, Dyeing Techniques &
Managerial disciplines, to enable them to produce and market a diversified range of
quality products in keeping with current trends in the domestic and international markets.

Workshed -cum-Housing Scheme

This scheme is aimed at providing a suitable work place to the weavers to enable them to
achieve better productivity. The scheme is being implemented by the respective State
Handloom Development Corporations, Primary Societies or any other specialized agency
set up by the concerned State Government for execution of such projects.

Design Development & Training Programme (DDTP)

The programme provides support for skill up-gradation of weavers through training
programmes, workshops and exhibitions for development of new designs, developing
linkages between various agencies etc. This is a 100 per cent Central Sector Programme,
except for one component for Central assistance to State Governments for setting up of
IIHTs and Workshed Centres (WSCs).

7
In addition, there are various Welfare Schemes for weavers like Thrift Fund Scheme,
Health Package Scheme, Group Insurance Scheme and New Insurance Scheme etc.

Major New Initiatives during the Tenth Plan

Integrated Handloom Cluster Development Scheme

The Scheme launched in Nov. 2005 is a significant initiative by Govt. of India for
handloom sector. Realising the significance of cluster approach, this Scheme is targeted
at major interventions in major handloom sectors across the country. This is presently
operational in 20 clusters across the country, viz. Chirala and Madhavaram (Andhra
Pradesh), Bijoynagar (Assam), Kullu (Himachal Pradesh), Gadag (Karnataka),
Trivandrum (Kerala), Chanderi/Gwalior (Madhya Pradesh), Imphal (Manipur), Sonepur
and Bargarh (Orissa), Triruvannamalai, Trichy and Kurinjipadi (Tamil Nadu), Varanasi,
Bijnore, Barabanki and Mubarkpur (Uttar Pradesh), Burdwan, Nadia (West Bengal) and
Bhagalpur (Bihar).

The Scheme provides for Rs. 2 crore for development of a cluster in an inclusive and
holistic manner, and to build up its capacity to meet the challenges of the market and
global competition in a sustainable and self-reliant manner.

Handloom Mark

Launched in June, 2006, Handloom Mark is another major initiative for the sector. The
Handloom Mark is aimed at serving as a guarantee for the buyers that the product being
purchased is genuinely hand woven. This is to address the increasing trend of power
loom fabrics being sold as those of handlooms. This has emerged as a significant threat to
the sector. The Handloom Mark helps distinguishing handloom products from power
looms and mill made products. It is likely to promote sales of handloom products and
improve price realization for handloom products in both domestic and international
markets.

Technology Upgradation Fund Scheme (TUFS) for the Handloom Sector

This Scheme, instrumental in giving a boost to the textile industry since 1999, has been
made operational for Handloom sector since July 2006. The Scheme provides for 25 %
capital subsidy for the purchase of new machinery and equipment for pre-loom & post-
loom operations, up-gradation of handlooms testing & Quality Control equipments for
exclusive use by the handloom production units. The capital ceiling per project is
Rs. 80.00 lakhs and the maximum capital subsidy is Rs. 20.00 lakh. The eligible agencies
for the assistance are both existing handloom units with a minimum of 10 handlooms
housed in a common work-shed and new units which are proposed to be set up with at
least 10 handlooms at one place in a common work-shed.

8
1.2.4 Major Support Institutions in the Sector

Weavers Service Centre/Indian Institutes of Handloom Technology

At present, 25 Weavers Service Centres are operational and they are primarily engaged in
research and development for new technology and designs and providing training to
weavers to upgrade their skill and increase productivity.

The Indian Institutes of Handloom Technology (IIHTs) have been set up to provide
qualified and trained manpower to the handloom Sector. IIHTs are further engaged in
undertaking experimental and research programmes aimed at increasing productivity.
Presently, there are four IIHTs at Varanasi, Salem, Guwahati and Jodhpur in the Central
Sector and two IIHTs at Venkatagiri (AP) and Gadag (Karnataka) in the State Sector.

National Handloom Development Corporation (NHDC)

NHDC was set up in 1983 to act as the apex agency to assist the speedy development of
the sector by coordinating activities relating to procurement and supply of inputs at
reasonable prices, augmenting the marketing efforts of the state handloom agencies and
initiating development activities for upgrading the technology in the handloom sector and
improving their productivity. Presently, the Mill Gate Price Scheme is being
implemented through the Corporation.

Handloom Export Promotion Council (HEPC)

HEPC was set up in 1965 as the nodal agency for export promotion efforts related to the
cotton handloom textiles sector. The council provides to its members services like trade
information & intelligence, business missions/buyer seller meets and participation in
trade fairs abroad etc.

Association of Corporations and Apex Societies of Handlooms (ACASH)

This is the apex body, created in 1984, for providing a common platform to various
handloom development corporations and apex weavers cooperative societies in the
country and to coordinate activities of various departmental agencies in the sector.

9
Chapter-2 : Study of Handloom Sector in BiharContext and
Approach

2.1 Background

The State of Bihar is today at the most crucial juncture. After a long hiatus, the process of
development is again acquiring the requisite momentum. However, the State faces a
daunting task of first catching up with rest of the country and then keeping pace with it.
Considering the potential of the state economy and its existing resources, the Govt. of
Bihar has decided to accord priority to sectors like food processing and handlooms.

It is in this context that IL&FS has been mandated by the Department of Industries, Govt.
of Bihar, for diagnostic survey and preparation of business plans for seven handloom
clusters (districts) in Bihar, viz., Gaya, Bhagalpur, Madhubani, Siwan, Biharsharief,
Darbhanga and Patna. These seven districts were identified by the Govt. of Bihar
considering their importance in the state handloom sector as also future potential for their
growth. The mandate was essentially aimed at coming out with a strategy for revival and
sustainable growth of the handloom sector in the state with a focus on increased income
opportunities for the weavers in the State.

The assignment was started with scanning of secondary data available about the
handloom sector in general and in particular about the status of the sector in the state.
Also, it was realized that a proper perspective of the sector in the state would necessitate
inputs from other prominent handloom clusters in the country. Thus, a visit was carried
out to Chanderi cluster in MP, which is one of the most prominent clusters in the country
and has also experienced UNIDOs three years project intervention.

The diagnostic survey itself was carried out in two phases : qualitative and quantitative
surveys. The survey, in the identified seven districts of Bihar, was aimed at identifying
the constraints precluding the development of the handloom sector with a specific focus
on the weavers. The survey also evaluated the efficacy of the delivery platform put in
place by the Government of Bihar manifesting in varied policies and programmes to
improve the living conditions of the weavers. The ultimate purpose of the survey was to
come out with credible inputs and database for the formulation of a sustainable business
plan to economically empower the weavers who represent the weaker sections of the
society. An effort was made to get feedback from major stakeholders in the survey.

The survey attempted to understand the state environment for weaving sector by looking
at the socio-economic status of the weavers and matters like present production status,
demand and supply gaps, appropriateness of techniques and tools used, appropriateness
and relevance of designs in respect of market, present skill level and availability,

10
potential of the fabric produced for both domestic and export market, existing backward
and forward linkages, availability of credit for weavers in the clusters and finding out the
need for infrastructure requirement.

2.2 Data Collection

Data was collected both through primary and secondary sources and through quantitative
and qualitative methods. Primary data was collected from the weavers, the community
and the stakeholders, while the secondary data was collected from published sources,
through relevant websites etc. The quantitative data was mainly collected by interviewing
440 weavers and major stakeholders like traders (mahajans) and weavers cooperative
societies.

2.3 Sampling and Coverage

A two stage sampling technique was adopted to select the households engaged in
handloom activities. First stage was the selection of the villages and at the second stage
all the weavers working on the handlooms in these villages were interviewed (Table 2.3).
The sample in each district was spread over a number of villages.

Table 2.3 : Sample coverage under the survey

Number of weavers
District Villages and clusters visited
Interviewed

Patna Siguari and Fatua 77

Siwan Sultanpur, Lagghi, & Chowki 61

Gaya Manpur, Tikari, & Chakund 61

Biharsharif Nepura, Kadirgunj, Biswan Bigah, Lodipur & Madhavpur 61

Madhubani Madhepur, Paraul & Umari 60

Darbhanga Sirhauli, Vishambarpur & Wazirpur 60

Bhagalpur Champa Nagar,Nathnagar, Ambabag, Aligang & Puraini 60

Total 440

In addition to the above structured interviews, 4 Focus Group Discussions (FGDs) were
conducted among the community of weavers and several in-depth interviews among the
stakeholders. The stakeholders covered were government officials from the District
Industry Centre including General Managers among others, people from the banking
sector overseeing the execution of credit plan, representatives of the District Chamber of

11
Commerce, traders directly engaged in the production and marketing of the handloom
products, office-bearers of the Primary Weavers Cooperative Societies, technical experts
associated with government owned weavers training centres and processing units and
people in several apex bodies of the state responsible for coordinating the production and
marketing of the handloom products.

2.4 Study Tools

For this study, a structured questionnaire was developed for the handloom weavers
keeping in view the objectives of the study. Similarly, guides for FGDs and in-depth
interviews were developed and finalized to get optimum results.

2. 5 Field Operations
Deployment of field teams

In all, 12 field investigators and 3 supervisors were deployed for conducting the field
study. All of them were males and had experience in conducting large-scale surveys.
These field officials administered the quantitative questionnaire among the target
group. The gaps and inconsistencies found in the filled - in questionnaires were
rectified in the field itself.

Deployment of Handloom Experts

While the above survey was aimed at getting structured data from the field by a
market research team, handloom experts were deployed to get specific inputs relating
to the sector. In particular, handloom experts visited state government institutions,
mainly training centres and processing plants, and, co-operative spinning mills to
address the concerns of the state government on revival and developing a business
plan for such institutions.

2.6 Data Management and Preparation of Business Plan

All the completed questionnaires and information were analysed to arrive at findings
keeping in view the objectives of the study. Based on information gained from the
field and discussion with various stakeholders, including state government officials, a
detailed business plan has been suggested with an implementation mechanism. The
business plan has suggested interventions which meet the criteria of viability and
sustainability.

12
Chapter-3 : Socio-Economic Status of Weavers
3.1 Background
During the survey, information was collected from a sample of 440 weavers regarding
their work profile, work duration, family dependence on the handlooms, number of
family members engaged in the handloom activities, their main source of income and
monthly income, ownership of handlooms, working conditions etc. Findings and
observations have been analyzed and discussed briefly in this chapter.

3.2. Working Status

All the 440 handloom weavers cited handloom weaving as part of their family vocation.
It was found that other family members including women in the household were also
contributing to the work. Most of the weavers are in the age-group of 18 to 45 years.

3.3 Handlooms in working condition

The data shows that nearly two-thirds (63%) of the weavers have 1-2 sets of handlooms
in working condition, while about one-fourth (22%) have 3-4 sets in working condition
and the remaining one-sixth (15%) had more than four sets in working condition.

There was no marked variation by district (Table 3.3)

Table 3.3 : Total handlooms in working condition

No of
District Interviews 1-2 Set 3-4 Set 5-6 Set 7-8 Set 9-10 Set
Patna 77 52 14 6 3 2
Siwan 61 44 10 3 3 1
Gaya 61 41 12 6 2 0
Nalanda 61 35 19 7 0 0
Madhubani 60 38 13 6 2 1
Darbhanga 60 36 14 6 2 2
Bhagalpur 60 31 16 7 5 1
Total 440 277 98 41 17 7

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The above data indicates that most of the weavers are still operating on a very small scale
and do not have a commercially sustainable size of operation. This stresses the need of
federating the weavers and bringing their operations to a viable scale as previously
formed weavers co-operatives, aimed at the same purpose, have largely failed to deliver.

3.4 Workers engaged

Most of the weavers were being assisted by 2-3 workers each, in the operation. Typically,
there are three workers needed for two handlooms.

Table 3.4 : Total number of Handloom Weavers, Handlooms and Workers Engaged

No. of No. of Handloom

District No. of workers Engaged
Interviews Units
Patna 77 180 220
Siwan 61 135 160
Gaya 61 115 155
Biharsharif 61 138 141
Madhubani 60 142 172
Darbhanga 60 152 173
Bhagalpur 60 116 135
Total 440 978 1156

Thus, the sector not only provides sustenance to weavers but also generates employment
for others.

3.5 Ownership of Looms

Out of 440 weavers, only 239 (54%) were found to be owning the handlooms and the
remaining 201 (46%) were provided looms by traders. District-wise analysis shows that
Madhubani district has the highest concentration of weavers owning looms followed by
Siwan (Table 3.5)

14
Table 3.5 : Weavers by Ownership of Looms

District No. of Interviews Owning looms Looms provided by traders

Patna 77 25 52
Siwan 61 48 13
Gaya 61 19 42
Biharsharif 61 23 38
Madhubani 60 53 7
Darbhanga 60 41 19
Bhagalpur 60 30 30
Total 440 239 201

This clearly suggests a low level of income amongst weavers as more than 45 % of them
are not able to afford even basic looms which would cost around Rs. 5,000. This is
despite the fact that there are a number of schemes both by the central govt. and state
govt. for providing subsidy to weavers for purchase of handlooms.
.

3.6 Weavers by Gender

Out of 440 weavers, 411 were men and 29 were women. Weaving is thus a male
dominated occupation and role of women is limited. However, women in the family do
play a role in providing support services to the weavers, particularly in pre-weaving and
post-weaving operations.

3.7 Income Dependence

It was observed that weaving is the main source of income for 62 per cent of the
respondents, which highlights the economic importance of handloom sector in the area
under study. The situation was similar across all the seven districts covered under the
study (Table 3.7.)

15
Table 3.7 : Family dependence on handlooms

Partially
District No. of Interviews Totally Dependent
Dependent
Patna 77 22 55
Siwan 61 12 49
Gaya 61 26 35
Nalanda 61 20 41
Madhubani 60 26 34
Darbhanga 60 27 33
Bhagalpur 60 20 40
Total 440 153 287

3.8 Income level

On an average, 27 per cent of the weavers earned monthly income ranging between
Rs. 1,501/- and Rs. 2,000/-, 15 per cent of them earned between Rs. 1,001/- and Rs
1,500/- , about 14 per cent earned between Rs. 2,001/- and Rs. 3,000/- and 10 per cent
weavers earned a monthly income below Rs. 1,000/-. It may be mentioned that only 34
per cent of the weavers reported an income of over Rs. 3,000/- per month.

Table 3.8 : Monthly income of weavers

No. of
District Rs. 500-1000 Rs.1001-1500 Rs.1501-2000 Rs.2001-3000 Rs.3001+
Interviewers

Patna 77 8 27 20 6 16

Siwan 61 4 8 24 5 20

Gaya 61 5 9 17 9 21

Nalanda 61 6 5 17 9 24

Madhubani 60 8 7 11 12 22

Darbhanga 60 6 3 16 10 25

Bhagalpur 60 9 7 12 9 23

Total 440 46 66 117 60 151

16
Thus, more than 50 per cent of weavers presently earn less than Rs. 2,000 per month. The
major reason is that weavers are even now not fully engaged. Most of the weavers
reported non-availability of work for 10 to 12 days in a month. During Monsoon and its
attendant floods there is cessation of work for almost 45 to 60 days, as was found in the
case of Puraini in Bhagalpur following flooding of the weaving clusters.

Such a low level of earning has kept the weavers trapped in the vicious circle of poverty
with little disposable income to allow them to go for modern loom accessories or better
quality of raw materials. This has also acted as a barrier to skill upgradation and adoption
of new designs.

Most important, the low income level acts as a repellant for the younger generation which
perceive handlooms as a career that is not financially rewarding.

17
A Success Story against Odds
The downslide of handloom sector in Bihar has not deprived it of its success stories.
A combination of individual entrepreneurship and state intervention has created
many individuals who have demonstrated the strength and resilience of the
handloom sector. One can identify many such individuals who are material for case
studies. Following is an account of one such weaver from Gaya who has proved
what individual enterprise can achieve in the face of heaviest of odds

Tarkeshwar Nath- Revisiting Tradition

Tarkeshwar Nath, aged 40, is a successful weaver from Maanpur, Gaya. Born into
weavers family of Patwatoli, Maanpur, he was inspired by his father Dhaalchand
Prasad and grand-father Late Rooplal Ji to carry forward the family tradition. His
grandfather was a trainee weaver in the Gaya Cotton and Jute Mill and later sought
credit from a local mahajan to set up a handloom in his mud-built house. Since then
the family has been depending on weaving for livelihood.

Tarkeshwar Nath, after completing his education, has been engaged in weaving for
around 15 years. Realising the strength of number, the basic philosophy of cluster
approach, he founded a Self-Help Group (SHG) named Shrijan in 2005. The SHG
consists of 10 local weavers who have all come together to realise the gains of
unity. He was inspired and guided in this by local SBI officials. This SHG moved
from strength to strength and was able to have a corpus of Rs. 12 lakhs from 10 of
its members and SBI then sanctioned a loan of Rs. 36 lakhs to Shrijan.

All the members of Shrijan are now managing their business through this SHG. The
members have around 40 handlooms and 20 power looms and the SHG is taking
advantage of Mill Gate Price Scheme for providing yarn to its members as also
taking care of marketing. During FY ending March 07, Shrijan had a turnover of
around Rs. 40 lacs, of which around 35 lakhs came from handlooms. In addition to
the handlooms owned by members, SHG has been able to provide job work to
30-35 other weavers in the region.

Tarkeshwar Nath has been managing the marketing efforts of Shrijan and has been
able to have good marketing linkages for products like Tauliya and Gamcha in
Jharkhand and West Bengal. However, he understands that low value items, which
the local weavers are producing, may not be able to sustain them and bring them
prosperity. Thus, he, along with some of members of Shrijan, has decided to visit
other prominent handloom clusters in the country and thinking of setting up a
Handloom park in Gaya which would concentrate on high value items.

18
Chapter-4 : Infrastructure and Raw Material
4.1 Background
During the field work, data was collected about the investment in handlooms, skill
upgradation status, quality and availability of raw materials, processing facilities etc. The
findings and observations made in the field have been presented in the tables and
discussed briefly in this chapter.

4.2 Capital cost

Handloom sector by it nature is not a capital intensive business. Most of the basic looms
cost around Rs. 5000. Additional accessories like dobby and jacquard may cost further
Rs. 3000-4000. Thirty seven per cent of the respondents incurred an expenditure ranging
between Rs. 7001/- and Rs. 10,000/-, 20 per cent spent an amount between Rs. 5001/-
and Rs. 7000/-, about 22 per cent spent between Rs. 3001/- and Rs. 5000/- and the
remaining 18 per cent of the weavers spent an amount ranging between Rs. 1000/- and
Rs. 3000/- on handlooms.

District-wise data did not show any marked variation. The variations depended on factors
such as the number of handlooms, type of handlooms, self-fabrication or purchase etc.
The table below suggests that the sector remains a low investment business and most of
the weavers are not in a position to make investment in accessories needed for value
addition.

Table 4.2: Expenditure incurred on handloom installation

No. of Rs. 1000- Rs. 3001- Rs. 5001- Rs.7001-
Distt. Above
Interviews 3000 5000 7000 10000
Patna 77 14 18 14 23 8
Siwan 61 10 15 10 24 2
Gaya 61 9 13 12 26 1
Nalanda 61 10 15 11 24 0
Madhubani 60 11 12 15 21 1
Darbhanga 60 12 13 11 24 0
Bhagalpur 60 13 9 15 23 0
Total 440 79 95 88 165 12

19
4.3 Raw Materials
4.3.1 Procurement

Majority of the weavers (69%) were procuring raw material from local traders. In most of
the cases, weavers do job work for the traders and thus raw material is supplied by local
traders to weavers and weavers get paid for job work.. (Table 4.3.1)

Table 4.3.1 : Source for Procurement of Raw Material

(Percentage)
District No. of Interviews Provided by traders Procured on their own
Patna 77 62.34 37.66
Siwan 61 67.21 32.79
Gaya 61 67.21 32.79
Biharsharif 61 72.13 27.87
Madhubani 60 81.67 18.33
Darbhanga 60 66.67 33.33
Bhagalpur 60 66.67 33.33
Total 440 69.13 30.87

This would clearly suggest that most of the weavers are dependent on local traders for
raw materials. Thus, the weavers are confined to doing job work and do not realise their
true share in product value. Weavers in the state have also not been able to take
advantage of schemes like Mill Gate Price Scheme or provision of raw material depots.
All this has adverse impacts on income levels of the weavers.

4.3.2 Quality

Nearly 57 per cent of the weavers reported raw material quality to be average, about 25
per cent reported this to be of poor quality and only 17 per cent reported raw material to
be of good or excellent quality.

20
Table 4.3.2 : Quality of Raw Material Procured by the Weavers
(Per centage)

No. of
Distt. Poor Average Good Excellent
Interviews

Patna 77 19.48 58.44 18.18 3.90

Siwan 61 26.23 68.85 4.92 0.0

Gaya 61 29.51 52.46 18.03 0.0

Biharsharif 61 24.59 57.38 13.11 4.92

Madhubani 60 30.00 51.67 16.67 1.67

Darbhanga 60 23.33 53.33 18.33 5.00

Bhagalpur 60 25.00 58.33 15.00 1.67

Total 440 25.45 57.21 14.89 2.45

4.3.3 Availability

Around 43 per cent of the weavers, procuring raw materials on their own, reported no
problems in getting raw material, while the remaining 57 per cent cited problems in
procuring the raw materials.

Table 4.3.3 : Availability of raw-material (Per centage)

District No. of Interviews Easily Available Not Easily Available

Patna 77 41.56 58.44

Siwan 61 34.43 65.57

Gaya 61 31.15 68.85

Biharsharif 61 47.54 52.46

Madhubani 60 30.00 70.00

Darbhanga 60 41.67 58.33

Bhagalpur 60 46.67 53.33

Total 440 43.45 56.55

21
4.3.4 Type and Volume

Silk is being used as raw material only in Bhagalpur and Gaya out of seven districts in
which survey was conducted. In Bhagalpur, 73 per cent of the weavers used silk as raw
material, while in Gaya only 3 per cent of the weavers purchased silk. The weavers in the
remaining districts were purchasing only cotton.

On an average, 27 per cent of the weavers purchased less than 50 kg. of material at a
time. 58 per cent of them purchased between 51and 100 kg. , 11 per cent purchased a
quantity ranging between 101 and 150 kg and 4 per cent 151 kg and above quantity at a
time. None of the weavers purchased 151 kg or more material in Gaya, while maximum
weavers in Patna and Darbhanga (6-7%) purchased 151 + kg of material at a time. (Table
4.3.4)

Table 4.3.4 : Volume of Raw-Material Purchased At a Time

No. of 1-50 51-100 101-150

District Cotton Silk 151 Kg. +
Interviews Kg. Kg. Kg.

Patna 77 100.00 0.00 19.48 58.44 15.58 6.49

Siwan 61 100.00 0.00 29.51 57.38 8.20 4.92

Gaya 61 97.00 3.00 36.07 62.30 1.64 0.00

Biharsharif 61 100.00 0.00 34.43 52.46 8.20 4.92

Madhubani 60 100.00 0.00 25.00 60.00 13.33 1.67

Darbhanga 60 100.00 0.00 20.00 63.33 13.33 3.33

Bhagalpur 60 27.00 73.00 25.00 51.67 16.67 6.67

Total 440 89.14 10.86 27.07 57.94 10.99 4.00

22
4.3.5 Periodicity of purchase

Nearly 17 per cent of the weavers were purchasing their raw material on a fortnightly
basis, 24 per cent on a monthly basis, and majority of nearly 60 per cent were buying raw
materials for over a month, together.

Table 4.3.5: Periodicity of Raw-Material Purchase (of those working for self)
(Per centage)
No. of Working
Distt. Fortnightly Monthly Over a Month
Interviews for self*
Patna 77 25 12.00 28.00 60.00
Siwan 61 48 12.50 20.83 66.67
Gaya 61 19 21.05 31.58 47.37
Biharsharif 61 23 17.39 13.04 69.57
Madhubani 60 53 18.87 28.30 52.83
Darbhanga 60 41 12.20 24.39 63.41
Bhagalpur 60 30 23.33 20.00 56.67
Total 440 239 16.76 23.74 59.50

An analysis of the above tables on raw material shows in addition to dependency of the
weavers on local traders for their raw material supply, average volume of purchase of raw
materials is also low and quality of raw materials for most of the weavers is low which
would result in low value realization. Thus, there needs to be interventions in the sector
aimed at facilitating easy access of weavers to yarns and dyeing materials of good quality
at reasonable prices.

4.4 Skill Upgradation

Among the sample weavers, only one-third of the weavers had gone through a process of
upgrading their skills, while majority admitted to not going through any skill upgradation
programme. District-wise variation shows that minimum skill upgradation was reported
among weavers of Darbhanga district (25%) and maximum among weavers of Bhagalpur
district (33%) closely followed by Patna (district 32%). Further, only 15-20 % of weavers
talked about upgrading their skills in tune with the trade.

23
Table 4.4 : Upgradation of Skills of Handloom weavers
(Per centage)
No of Training as per
District Upgraded Not upgraded
Interviews market trend
Patna 77 32.47 51.95 15.58
Siwan 61 24.59 50.82 24.59
Gaya 61 29.51 52.46 18.03
Nalanda 61 34.43 49.18 16.39
Madhubani 60 31.67 60.00 8.33
Darbhanga 60 25.00 53.33 21.67
Bhagalpur 60 33.33 46.67 20.00
Total 440

All those who upgraded the skills had done it through state agencies. However, an
environment of ignorance with regard to government schemes and programmes for the
betterment of their lot pervaded the clusters. In spite of various state govt. training
institutions for the weavers, most of weavers have not been able to take advantage of
them. It was clear that state govt. institutions, supposed to work for the purpose, have
been mostly at disconnect with the status of the sector and weavers. However, this has
also happened largely because of a severe lack of resources with state govt.
organizations, both in terms of physical and financial resources. Any effort at revival of
the sector in the state would therefore have to necessarily involve complete revamping of
such state government institutions.

4.5 In-House Dyeing and Finishing Facilities

Out of the total of 440 weavers, 33 to 39 per cent had in-house facilities for dyeing the
products, in various districts. Similarly, between 38 and 43 per cent had in-house
facilities for finishing the products. In all, 34 per cent of the weavers had in-house dyeing
facilities and 40 per cent had in-house facilities for finishing the products.

24
Table 4.5 : In-House Facilities
(Per centage)
No. of
District Dyeing Facility Available Finishing Facility Available
Interviews
In-House In-House

Not
Available Available Not Available
Available
Patna 77 38.96 61.04 38.96 61.04
Siwan 61 32.79 67.21 42.62 57.38
Gaya 61 32.79 67.21 40.98 59.02
Biharsharif 61 32.79 67.21 37.70 62.30
Madhubani 60 35.00 65.00 40.00 60.00
Darbhanga 60 33.33 66.67 40.00 60.00
Bhagalpur 60 33.33 66.67 38.33 61.67
Total 440 34.14 65.86 39.80 60.20

However, the present in-house facilities for dyeing and finishing are very primitive and
not suitable for high value products. This has been cited as a major constraint by most of
the weavers in catering to high-end consumers. Most of the weavers thus realise the
significance of post-weaving operations in getting right market price and have shown
their eagerness for interventions to address this issue.

25
Chapter-5 : Production, Marketing and Credit

5.1 Background
During the fieldwork, data was also collected relating to the production techniques,
application of designs, items produced, availability of market for selling the produce etc.
The findings and observations made in the field have been presented in the tables and
discussed briefly in this chapter.

5.2 Production Technology

Among the 440 weavers, 93 per cent were still operating on pit looms and only 7 per cent
were working on frame looms. District-wise variation shows that only in districts of Gaya
and Bhagalpur, more than 10 % of weavers were using frame looms.

Table 5.2 : Handloom weavers by use of production technology

(Per centage)
No. of
Intervie Frame
Dist. ws Pitloom Pitloom Frame loom
loom

1. 2. 3. 4. 5. 6.
Jacquard Dobby Normal Jacquard Dobby Normal

Patna 77 94.81 5.19 62.34 24.68 7.79 2.60 1.30 1.30

Siwan 61 95.08 4.92 59.01 27.87 8.20 1.64 3.28 0
Gaya 61 86.89 11.48 55.74 26.23 4.92 6.56 3.28 1.64
Biharsharif 61 95.08 4.92 49.18 36.06 9.84 1.64 3.28 0
Madhubani 60 95.00 5.00 45.00 31.67 18.33 1.67 3.33 0
Darbhanga 60 96.67 3.33 43.33 38.33 15.00 1.67 1.67 0
Bhagalpur 60 88.33 11.67 63.33 16.67 8.33 8.34 1.67 1.67
Total 440 93.12 6.64 54.23 28.79 10.34 3.44 2.54 0.66

26
Around 45 per cent of the looms did not have basic jacquard as an attachment and only
29 per cent of looms had dobby attachment. This clearly has an adverse impact on the
productivity of looms. While the weavers feel the need for upgradation of their pit looms
to frame looms or with other technical attachments to enhance productivity, financial
resources remain a constraint.

5.3 Design

In majority of cases (87 %), the designs were provided by the traders, while about one-
tenth (9%) of them claimed to have developed designs on their own. Others (4%) were
following traditional designs (Table 5.3).

Table 5.3 : Handloom Weavers By Application of Designs

(Per centage)

No. of Provided by Traders /

District Self Innovation Traditional
Interviews Buyers

Patna 77 84.42 11.69 3.90

Siwan 61 85.25 9.84 4.92

Gaya 61 83.61 11.48 4.92

Biharsharif 61 90.16 8.20 1.64

Madhubani 60 86.67 6.67 6.67

Darbhanga 60 91.67 5.00 3.33

Bhagalpur 60 90.00 6.67 3.33

Total 440 87.40 8.50 4.10

Design, the unique selling point of handloom products, remains an ignored area in the
state. Barring some sporadic attempts by the traders, based on feedback from the major
buyers, there is no organised effort in the state to help weavers adapt to new designs. Any
revival effort for the sector has to have a major focus on this matter.

27
5.4 Items Produced
The weavers produce various handloom articles. The major products are saris, bed sheets,
towels, curtains, stoles, plain fabrics and items such as gamcha, dusters etc. Various
items produced by different households are given below (Table 5.4)

Table 5.4 : Different Items Produced Per Year Per Household

(Pieces)
Others
No. of Bed- Fabric
District Towel Stole Sari Curtain (Gamcha,
Interviews Sheet (Mtr.)
Duster etc.)
Patna 77 11.69 - 25.78 0.70 10.39 47.66 21.06
Siwan 61 11.48 2.05 27.87 3.44 13.11 19.67 27.87
Gaya 61 9.84 1.72 21.31 1.23 13.11 29.51 26.23
Biharsharif 61 19.48 - 19.67 - 13.11 24.59 36.07
Madhubani 60 6.67 2.25 20.00 4.33 13.33 51.67 13.33
Darbhanga 60 11.67 5.00 6.67 23.33 30.00 26.67 10.00
Bhagalpur 60 23.33 11.67 16.67 6.67 15.00 26.67 25.00
Total 62.85 13.45 3.24 19.71 5.67 15.44 32.34 22.79

While Siwan and Patna are producing mainly saris and yardage, Bhagalpur has the largest
range of items. The handloom clusters in the state are thus mainly engaged in traditional
items like towels, bed sheets, saris and plain fabric. There is no effort to reorient
production to modern dress materials and such other value added items which have a
lions share in todays handloom market. A business plan would therefore have to look at
this aspect closely.

28
5.5 Availability of Market
A vast majority of weavers (68%) during the survey reported selling their products in
local markets. Around 18 per cent were selling to govt. institutions and only 14 per cent
were selling in the regional markets.

Table 5.5 : Availability of market for selling the produce

(Per centage)

No. of Institutional Regional Local

District Interviews Market Market Market
Patna 77 8.00 24.00 68.00
Siwan 61 4.17 8.33 87.50
Gaya 61 0.00 10.53 89.47
Biharsharif 61 4.35 26.09 69.57
Madhubani 60 5.66 9.43 84.91
Darbhanga 60 92.68 0.00 7.32
Bhagalpur 60 13.33 16.67 70.00
Total 440 18.31 13.58 68.11

The problem of market linkage thus remains acute. Selling in local markets, essentially to
traders, brings little value to weavers. However, absence of new and innovative designs
and inadequate processing facilities come in the way of market linkages. Lack of efforts
in brand creation has been a major bane of the sector in the state. Thus, a business plan
needs to have major focus on brand creation and market linkages.

5.6 Availability of Credit

A large percentage of the weavers reported non-availability of credit. The most important
source of credit reported was money lenders (34%), followed by family/relative/friends
(25%) and banks (19%). District-wise variation shows more utilization of credit from the
banks by weavers of Darbhanga (25%), followed by Siwan (21%) compared to their
counterparts in other districts.

29
Table 5.6 Availability of credit
(Per centage)
Credit Credit from Credit from
No. of Credit not
Distt. from Money Family/ Relatives/
Interviews Available
Banks Lenders Friends
Patna 77 15.58 37.66 27.27 19.48
Siwan 61 21.31 34.43 24.59 19.67
Gaya 61 16.39 36.07 21.31 26.23
Biharsharif 61 19.67 37.70 22.95 19.67
Madhubani 60 15.00 36.67 26.67 21.67
Darbhanga 60 25.00 21.67 26.67 26.67
Bhagalpur 60 16.67 33.33 26.67 23.33
Total 440 18.52 33.93 25.16 22.39

The above data clearly shows the failure of public sector banks in catering to this sector
even while there are so many schemes and programmes, launched from time to time, to
address credit needs of the poor, including weavers.

It has been observed that the banking institutions normally shy away from lending to this
sector. District Credit Plans of the seven districts reveal little credit flow to the weavers.
Outlay of funds to SSI & NFS sector is abysmally low and hence availability of credit
emerges as one of the major challenges towards growth of handloom sector in Bihar. Out
of total priority sector advances, SSI and NFS advances vary from 4 to 15 per cent across
the districts. .

Majority of the weavers were ignorant of the existence of any special credit programme
for them by the banks. Though, almost all the districts have branches of most of the
leading nationalized banks, there seemed to be an indifference to the handloom sector.
One probable reason could be the bad track record of the weavers in terms of debt
servicing and periodical loan waivers being granted to the sector by government.
However, the weavers have to be provided adequate access to credit facilities for making
a turn around of this sector.

30
Chapter-6 : Cluster Mapping
This chapter gives district-wise information on major production clusters, raw material
being used, major products, estimated no. of weavers and handlooms and turnover etc.

6.1 Biharsharief
The number of handloom weavers in the district of Biharsharif is just around 225. A
large number of weavers have moved to other livelihood opportunities.

The number of handlooms in the district is estimated to be around 200. A much larger
number of handlooms has become junk over years.

Major Clusters: The major handloom clusters in the district of Biharsharif are Nepura,
Alinagar, Baswanbigah, Lodipur, Amber and Imaadpur.

Major Products: The major handloom products of Biharsharif are Cotton Bed sheets and
Silk fabric.

Raw Material: The raw materials used by the weavers are cotton and silk yarn. There is
no common facility centre like raw material depot in the district which would enable the
weavers to procure the raw materials at reasonable rates. This remains a problem area for
them..

State Institutions/Weavers Societies : Weavers Training Centre, Jhinganagar, is

catering to training needs of weavers of the district. In addition, a Central Processing
Plant is located in Biharsharief which is though closed for around a decade. Out of 36,
only around six PWCSs are functional in the district.

Suggestions of the Stakeholders: The stakeholders in Biharsharif suggested that

regulations in regard to the products which are to be produced by the handloom sector
should be enforced seriously. Arrangements for a raw material depot, upgradation of
existing training facilities, credit and market linkages were other demands raised by the
weavers.

6.2 Bhagalpur
The number of weavers in the district is approximately 15,000.

Total number of handlooms in the district is approximately 12,000.

Major Clusters: Major clusters in the district are Nathnagar, Champa Nagar, Aliganj,
Puraini, Dariapur, Shekpura, and Mirzafari.

31
Major Products: The weavers in the handloom clusters of Bhagalpur show great
versatility in production. These clusters produce silk-based yardage (Tasar, Muga, Katia,
Eri, Gicha, and Mulberry), bed-sheets, scarves, stoles, furnishing material and dress
material.

Raw-Material: The raw material used in these clusters are silk-yarn, cotton-viscose,
which is not easily available. The raw material depot closed down more than 15 years ago
and weavers are dependent on local shops for their supplies.

State Institutions/Weavers Societies : Being the most prominent textile cluster of the
state, many central government and state government institutions are located in the
district. Polyster & Silk Vastra Training cum Production Centre, Barari, Bhagalpur,
Weavers Training Centre, Puraini, Bhagalpur are major institutions for handloom sector.
Central Silk Board office is also located in the district. There is also a co-operative
spinning mill in the district which is not presently operational. The number of PWCSs in
the district is around 110 but most of them are defunct.

Suggestions of Stakeholders: Availability of silk yarn and lack of processing facilities

for value addition were cited as major concerns by stakeholders. Inadequate marketing
linkages were another concern. It was pointed out by weavers and entrepreneurs that
handlooms are facing a steep decline and losing market share to the powerloom sector.
The weavers highlighted the need for a cocoon yarn depot and arrangements for regular
buyer and seller meets. The need for a design development centre also came out clearly
during discussions.

6.3 Darbhanga
The number of weavers in the district of Darbhanga is estimated at around 575.

The number of handlooms in the district would be around 500.

Major Clusters: Major weaving clusters in the district are Sirhauli, Vishambharpur,
Tahtaar, Madhpur and Wazidpur.

Major Products: Major products of the district are towels and bed sheets.

Raw Materials : The raw material used by the weavers in Darbhanga is raw cotton
which is supplied by State Khadi Board. The supply though is uncertain and therefore
weavers have to often depend on the local market.

State Institutions/Weavers Societies : There is no training centre in the district of

Darbhanga. There are 75 PWCS in Darbhanga but none of them is functional. There is a
Dying & Finishing Plant located in the district which has been closed for more than a
decade.

32
Suggestions of the Stakeholders: The revival of khadi outlets along with the processing
plant was a major concern in the district. Lack of capital was also cited as a growth
obstacle.

6.4 Gaya

Total number of weavers in the district of Gaya is estimated to be around 675.

Total number of handlooms in the district would be in the neighborhood of 500.

Major Clusters: Major handloom clusters in the district of Gaya are Maanpur, Chakund,
Karmoni, Barachitti and Tikari.

Major Products: The major products of the handloom clusters in the district of Gaya are
towels, bed sheets, silk fabric, saris and blankets.

Raw Material: The raw material used in the handloom-weaving clusters of Gaya is
cotton yarn, silk yarn and threads. Despite the existence of two yarn depots in the district,
sourcing of raw materials in the district remains problematic. The capacity and
management of yarn depots remain problems.

State Institutions/Weavers Societies: There is a Weavers Training Centre in Chakand,

Gaya . Silk Service Centre, Maanpur is another institution to provide training to the
weavers. There are around 61 Primary Weavers Co-operative Society (PWCSs) in the
district of Gaya. .Most of such societies are though not really active and are starved of
funds. Twenty societies have already been liquidated.

Suggestions of the Stakeholders: The need to have better training facilities was
highlighted by the weavers. This would help in value addition, efficiency and enhanced
production. Availability of raw materials like natural yarns and natural colors at
reasonable rates was also a felt need of the cluster. Problems relating to credit and market
were further cited as issues to be addressed.

6.5 Madhubani
The number of weavers in the district is around 500.

The number of handlooms in the district would be around 400.

Major Clusters: Major handloom clusters in Madhubani district are Madhepur,

Mauwara, Rahika, Pandaul, Navtauliya and Amri.

Major Products: Major handloom products are Thaan (cloth), Dhoti, Towels and Dasuti
(rug).

33
Raw Material: The raw material used in the handloom sector of Madhubani is cotton
yarn. The weavers in the district are dependent on the local market yarn. There is a Yarn
Centre in the village of Hari Nagar wherein some weavers have formed a group to avail
of NHDCs mill gate supply scheme.

State Institutions/Weavers Societies : There is no weaver training centre in Madhubani.

There are no PWCSs in the district of Madhubani. The co-operative spinning mill in the
district remains closed.

Suggestions of the Stakeholders: The stakeholders concern centreed on non-

availability of credit and market. Revival of co-operative mill was another major concern.

6.6 Patna
The number of weavers in the district is around 850.

The number of handlooms in the district is around 700.

Major Clusters: Major handloom clusters in the district are Sigauri and Fatua.
Handloom clusters such as Masaudhi, Punpun, Bahadurganj, Makdunchak and Navinagar
have ceased to exist.

Major Products: Major products in Sigauri are bed sheets and furnishing items. Fatua
produces Dastars and bandages.

Raw Material: The raw material used in the handloom clusters of Patna are mainly
cotton yarn. There is no raw material depot for the weavers.

State Institutions/Weavers Societies : Bihar State Training Institute in Rajendranagar is

the only institution imparting training to the weavers in the district. There are 89 PWCSs
in the district, out of which only 25 are functional. Bu even the functional societies
remain largely on paper.

Suggestions of the Stakeholders : The discussion with stakeholders brought out usual
issues relating to availability of credit, market linkage, training facilities etc.

6.7 Siwan
Total strength of weavers in Siwan is estimated around 1850.

Total number of handlooms in the district is around 1,550.

Major Clusters: Major clusters in the district are Sultanpur, Lagghi Chowki, and
Ghanauti .

Major Products: The major handloom products of district are bed sheet, towel, waist-leg
wrap (lungi), and shirting.

34
Raw Material: The raw material used in the weaving clusters of Siwan is cotton and
polyester. There is no common facility centre like raw material depot for sourcing of the
raw material.

State Institutions/Weavers Societies: There is no training centre in the district, either

belonging to state government or central government, to impart training to the weavers.
There is a co-operative spinning mill in the district which lies closed. The number of
PWCSs in the district is 35, most of which remain inactive.

Suggestions of Stakeholders: Most of the suggestions centered around improvement in

credit and marketing facilities along with revival of the co-operative spinning mill.

A Summary of seven handloom clusters (Districts) :

Districts Estimated Estimated no. Major products Estimated
no. of of Handlooms Turnover
weavers (Rs. in Lakh)
Biharsharief 225 200 Cotton Bed sheets and Silk 90
fabric.
Bhagalpur 15,000 12,000 Silk-based cloth-length 35,000
(Tasar, Muga, Katia, Eri,
Gicha, and Mulberry), bed-
sheets, scarves, stoles,
furnishing material and
dress material
Darbhanga 575 500 Towels and bed sheets 250
Gaya 675 500 Towels, bed sheets, silk 415
fabric, saris and blankets
Madhubani 500 400 Thaan (cloth), Dhoti, 180
Towels and Dasuti (rug).
Patna 850 700 Bed sheet and furnishing 340
items, Dastars and
bandages.
Siwan 1,850 1,550 Bed sheet, towel, waist-leg 730
wrap (lungi), and shirting.
Total 19,675 15,850 46,959

35
Chapter-7 : State Govt. Training Centres

There are eight state government institutions for training and capacity building of
handloom weavers in the state these are:

1) Weavers Training Centre, Chakand, Gaya

2) Weavers Training Centre, Amarpur, Banka
3) Weavers Training Centre, Obra, Aurangabad
4) Central Design Centre, Rajendra Nagar, Patna
5) Polyster & Silk Vastra Training cum Production Centre, Barari, Bhagalpur
6) Weavers Training Centre, Kako, Jahanabad
7) Weavers Training Centre, Puraini, Bhagalpur
8) Weavers Training Centre, Jhinganagar, Nalanda
In addition, there is Bihar Institute of Silk & Textiles, which provides long term training
in silk and textile technology. A brief profile of five of weaves training centre located in
the identified clusters along with Bihar Institute of Silk & Textiles is given below.

7.1 Polyester & Silk Cotton Training Cum Production Centre,

Barari, Bhagalpur

36
 Polyester & silk cotton Training Cum Production Centre was established around 30
years back in Berari to impart training to handloom weavers. Every year 24 candidates in
the age group of 18-45 are trained for a period of 6 months. A stipend of Rs. 300 per
month is paid to the candidates after successful completion of the course.

The centre lacks basic infrastructure, equipment and quality trainers and hence it is not
able to evince interest among weaving community. The centre is still using 4 frame
looms of 1987-88 model and 3 frame looms of 2001-02 model. There is also an old
washing machine. Lack of working capital is coming in the way of adequate training
arrangements.

7.2 Weaver Training Centre, Jhing Nagar, Biharsharif.

Weaver Training Centre was established in 1967 to impart training in cotton weaving
and dyeing. Every year 24 candidates are trained for duration of one year and Rs 300 is
paid every month by way of stipend to each candidate. At present, the centre is run from
a rented building and training is provided on 6 frame looms of 1988-89 model. The centre
is functioning with inadequate manpower and lack of raw material for trainees. There is
no proper equipment for training in dyeing. Lack of basic infrastructure remains a big
concern.

37
7.3 Weaver Training Centre, Chakand, Gaya
This WTC was established in 1992 to impart training to weavers in weaving, colour
designing and technical details of the weaving looms. This centre is situated in weavers
dominated area and enjoys good reputation in the weaving community. The Centre has 6
looms from state government and further 10 looms have been granted by Govt. of India.
There are also accessories like dobby and jacquard available in the centre.

Every year 24 people are trained in the centre for duration of one year and Rs 300 is paid
every month by way of stipend to each candidate. The facility for training in dyeing and
finishing remains a point of concern.

7.4 Weaver Training Centre, Puraini, Bhagalpur

38
This centre was previously located at Jagdishpur but was relocated in Puraini in 1996.
The Centre is being run from a rented and ill maintained house. There are two frame-
looms of 1977 model in the training centre. Training is being given for making of bed
sheets, towels and shirting and also in coloring of the yarn. There is also training
available in stitching of the clothes. Each year, 24 persons are trained in stitching and
coloring for a period of one year.

There are problems related to lack of space, non-availability of modern looms and quality
trainers. The centre gets flooded with water in the rainy season. Relocation of centre is a
need. Inadequate budget support is another concern.

7.5 Central Design Centre, Patna

The centre, around 20 years old, provides training in weaving and designing. It has 12
looms- 9 flying shuttle frame-looms and three pedal looms- for training facilities. The
centre has targeted to train 36 candidates every year for a period of six months. During
2006-07, 14 persons were trained in the first batch, 19 more persons are being trained in
the second batch. The old looms, inadequate stipend amount, lack of raw materials,
absence of quality trainers are major concerns.

39
7.6 Bihar Institute of Silk & Textiles
Bihar Institute of Silk & Textiles is a textile engineering college located in Bhagalpur.
This is the largest such Institute in the state and was established in 1978. The Institute
was initially offering 4-year B.Tech. in Silk Technology and Textile Technology. The
institute was thus not merely dedicated to handlooms, but was aimed at the entire textile
sector in the state. Due to insufficient infrastructure, the Institute had to be closed down
for long. The last full-fledged course was conducted during 1994-97. Revived in 2005,
the Institute is presently offering a two years vocational course in silk and textile
technology. The major course of concern in the institute is lack of teaching staff. Out of
present employee strength of 40, there are only 7 lecturers and interestingly none of them
has a degree in textile technology. All the teachers are of applied sciences viz., Botany,
Zoology, Physics, Chemistry etc. Thus, teaching is being carried out by 2 lab assistants
and 2 production managers who have diplomas in textile technology. The present
strength of candidates is only 20. The labs and requisite equipment are not available even
as the syllabus has been updated and modeled on IIHT Diplomas.

7.7 Major concerns relating to Weaver Training Centres :

Major issues having an adverse impact on functioning of these training centres are given
below:

7.7.1 Lack of basic infrastructure

Most of the training institutes do not have adequate basic infrastructure. These centres are
being run from dilapidated buildings which have no proper access to power and water
supply. Typically, training hall is dark with no proper ventilation. While these centres are
supposed to be operated as production centres, too, there is no space for raw material
storage. There are poor arrangements for trainees to operate looms. For example, at
Puraini, while the centre has got 12 looms and some dyeing equipment, only 2 looms are
being used for training. Rest 10 looms and dyeing equipment are dumped in two rooms as
the centre doesnt have space to install 10 looms and dyeing unit.

7.7.2 Lack of Training equipment

In almost all the cases, except to an extent in Chakand, Gaya, training equipment is old
and ill maintained. Most of the looms are not in good condition and do not have
accessories to give proper training. Unless the training centres are provided with modern
looms with dobby and jacquard, weaving skills would remain a concern.

7.7.3 Outdated Syllabus/No quality trainers

The teaching staff and content of teaching in all these centres need complete revamping.
The syllabus is out dated, there is no coverage of new weaving techniques, product
diversification, design development and processing of products. Consequently, the
training centres have no attraction for the weavers. Most of the trainees are thus women,

40
even as it is a well known phenomenon that weaving remains largely a male dominated
activity. The trainers themselves are either absent or lack requisite skills for training.

7.7.4 No industry/market linkage

A key component of any successful training institute/centre has to be its linkage to

industry. The trainees have to be linked to market through a training programme, only
then a training programme would attract good candidates. This linkage need not be
through a regular job. In handloom sector, a training programme should equip the
trainees with requisite skills which would help them in meeting the present market
demand and thus training inputs have to be decided in close consultation with
exporters/traders.

41
Chapter-8 : Processing Plants and Co-operative Mills
The State govt. had established Dying & Finishing Plant, Darbhanga and Central
Processing Plant, Biharsharief for ensuring value addition in the sector. However, these
two Centres are lying closed for more than a decade now. In addition, there are three co-
operative spinning mills in the state which used to provide yarn to the handloom sector in
the state. They have also been not in operation for long. This chapter gives a diagnostic
status of these processing plants and co-operative mills.

8.1 Dyeing & Finishing Plant, Darbhanga

Dyeing and Finishing Plant in Darbhanga was established in 1958. It started operation in
1963 and was closed down in 1995. The major reason of establishing the Plant was to
provide pre-weaving and post-weaving linkages to the weavers of North Bihar. Thus, the
plant had facilities for preparing beams for weaving by handloom weavers along with
washing, dyeing and printing facilities for yarn and fabric. However, the pre-weaving
processing plant, cone winding, warping and sizing plant could not be started in
Darbhanga,

In 2002-03, the state government provided a grant of Rs. 5,95,000 to revive the plant but
the attempt was not successful and the plant remains closed. The machines in the plant
have become largely useless due to pilferage and lack of maintenance for over a decade.

The main reason for closure of the plant was decline of khadi sector as it was the major
client for the plant. As the khadi sector was not in a position to provide job work, the
plant was not able to compete in the market due to its technical and management
limitations.

42
Presently, there are only 9 employees on the rolls against a sanctioned strength of 22
employees. Even while the plant remains closed, an amount of around Rs. 2.50 lakhs per
month is being spent by the state government towards salaries and establishment charges
on the plant.

Inside Dyeing & Finishing Plant, Darbhanga

8.2 Central Processing Plant, Biharsharief

The processing plant at Biharsharif was set up in 1961-62 and was operational till 1995.
Planned on the lines of plant at Drabhanga, the processing plant at Biharsharief has the
facilities of sizing, dyeing, printing, washing and finishing. The plant was catering to the
region of central and southern regions of the state.

The plant at Biharsharief was dependent on job work for State Khadi Board, State
Handloom Corporation and powerloom industry in Gaya. Once the khadi sector faced
decline, the plant was not able to sustain.

43
 Dilapided building of Central Processing Plant, Biharsharief

Presently, there are around 40 employees on the rolls against sanctioned strength of 58.
Thus, the state govt. has to incur an expenditure of Rs. 3.50 lakhs per month despite the
plant remaining closed for over a decade. The plant and machinery inside the plant have
been reduced largely to junk over the years.

Another picture of Central Processing Plant, Biharsharief

44
 Machinery inside the plant

8.3 Co-operative Spinning Mills at Bhagalpur, Pandaul and Siwan

Out of these three spinning mills, two mills located at Bhagalpur and Siwan were visited
for diagnostic study.

Bhagalpur Co. op Spinning Mill was started in 1989-90. The mill has been built on 25
acres of plot in the city. The installed capacity of the mill is 25,000 spindles. However, it
was reported that the plant could never operate more than 12,500 spindles. Gradually, the
capacity utilization got further reduced and the mill was closed in year 2000. The normal
count produced in the mill was 34s.

A visit to the unit shows following status of plant and machinery :

Machine Type No. of Machines

Blow 4
Carding 30
Drawing 6
Simplex 10

Spindles 25000

45
 Rolling 52
Pressing 1
Bundle Press 2
Dubling 5
Cheese winding 3
Generator 2

There are reported to be around 325 employees on the rolls who have not received their
salaries for a long time. On the other hand, employees of processing plants which are
owned by state government get paid even as these plants remain closed.

Spinning Mills at Pandaul and Siwan also have capacity of 25,000 spindles. All three
spinning mills were modeled on similar lines and have therefore similar kind of plant and
machinery. But the mills were never utilised to full capacity. All the mills closed down
around the year 2000. Thus, they have been occupying large tracts of prime land in their
respective cities with restive labour that has not been paid their salaries for years.

The plant and machinery of these mills have not been in use for over six years. In some
cases, machinery has not been used right from the day of installation. Parts of plant and
machinery have also faced theft. The utility and value of machinery in these mills thus
remain uncertain though it is safe to conclude that they may not be very productive.

It is disappointing that there is no spinning mill functioning in the state at present even
though the state handloom sector, particularly in Bhagalpur, has got good demand for
cotton yarn. Presently, Bhagalpur has got a demand for 80 to 100 tonnes of cotton yarn
per month. In absence of any production in Bihar, the weavers get their supplies from
other states like Tamil Nadu, Madhya Pradesh, Uttar Pradesh etc.

46
Chapter-9 : Proposed Business Plan for Revival of the Sector
The findings of the survey indicate that the handloom sector in the state is facing an
uncertain future, and there is need for immediate and innovative measures to revive it.
There is no gainsaying that this sector has to be revived as it not only continues to
provide employment opportunities to large number of population but also has potential to
provide gainful job opportunities to a much larger population.

However, traditional approach of piecemeal and inadequate grant subsidies at individual

levels would not really work. The need of the hour is to adopt an integrated approach
with adequate stress on institutional reforms. The approach has to be cluster driven with
interventions across the value chain. Also, such efforts need to adopt a Public Private
Partnership (PPP) approach with ownership and management in the hands of weavers
bodies/entrepreneurs.

Clusters, defined as sectoral and geographical concentration of enterprises, typically :

9 give rise to external economies (e.g. specialised suppliers of raw materials,
components and machinery; sector specific skills etc.)
9 favour the emergence of specialized technical, administrative and financial services;
9 create a conducive ground for the development of inter-firm cooperation and
specialization as well as of cooperation among public and private local institutions to
promote local production, innovation and collective learning.

9.1 Cluster Approach to Bihar Handloom sector

What the handloom sector in the state should look for then is not merely continuation of
financial subsidies, but institutional support for collective interventions for modernization
of production, steady and regular supply of inputs like yarn, dyes and chemicals at
reasonable prices, training in design and innovative patterns of weaving and finally
common marketing platforms.

Even while suffering in terms of production volume, the handloom sector has an edge
over the power loom and mill sector in its ability to commercially produce the goods in
small volumes, its openness to innovation, adaptability to suppliers requirements and
creation of exquisite designs.

It has been accepted that the Handloom sector has to find its own niche in the market and
that would need encouraging and assisting excellence in craftsmanship. This has to be
complemented by common facilities at the cluster for skill upgradation, technological
improvement, pre-weaving and post weaving operations, product development and
marketing.

The proposed cluster approach at the state level would also enable the handloom sector in
the state to take maximum benefits of the cluster development schemes being
implemented by DC (Handlooms), Govt. of India and other such agencies.

47
 A Model Handloom cluster intervention in Phalodi, Rajasthan

Phalodi, in district Jaisalmer, has been home to traditional weavers for centuries. They
traditionally produce Pattu. These are local pieces of cloth traditionally woven in local wool, in
two pieces and then stitched together laterally. There is extra weft ornamentation in the work
known as Kashida. This is unique to the craft in the state.

Traditionally, as elsewhere, these artisans were disorganized and depended on intermediaries and
fairs/exhibitions to sell their produce. This brought little gains to the weavers. In 1991, with the
help of Urmul Trust, the weavers organized themselves into a registered NGO by the name of
Urmul Marusthali Bunkar Vikas Samiti (UMBVS). Out of 300 weavers in the cluster, around 175
weavers from 11 villages have joined the Samiti. This has brought significant financial gains for
their products. UMBVS is also taking care of procuring raw materials and marketing.

Weaving operations are managed from the offices at Phalodi and Pokhran. Among the weavers, a
Vyavasthapak (manager) is nominated for a group of 8-15 weavers who coordinates between
weavers and UMBVS. His responsibilities include delivery of raw material and designs to the
weavers, monitoring the design and quality during weaving, weighing, checking and delivery of
products to UMBVS and payments to weavers. Vyavasthapak earns a commission of 12% on
total wages of the group. A new member may be inducted by paying the membership fees of Rs
1000 payable in installments. At the time of registration, a compulsory training in weaving for a
period of 3 months is imparted.

UMBVS has taken responsibility of providing both backward and forward linkages to the
weavers and provides raw materials as well as market. The cotton yarn is procured from Delhi
while the wool is sourced locally. The yarn is then dyed at a Facility Centre in Pokhran by people
trained in both chemical and natural dyeing methods. The yarn is then sent to the weavers through
the Vyavasthapaks. The woven products are collected at Phalodi centre and undergo stringent
quality checks by the production and marketing managers. The products are then stitched and
finished at the in-house tailoring unit

The cluster is now making a variety of handloom textiles like kurtas, female tops, shirts, jackets,
salwar-kameez, dupatta, yardage, pillow covers, cushion covers, dari, tablemats, shawls, stoles,
bags and other accessories. Thus, the cluster now produces a range of new products even as
traditionally the cluster was making mainly Pattu.

The clusters products have a good demand in the local as well as the national market. UMBVS
actively participates in handloom fairs and exhibitions all over the country. It is also using
internet to market the products. UMBVS has its own showroom called Kashida near Pokharan
on Jodhpur - Jaisalmer highway. A major source of marketing support has been from
organisations like Dastkar and OXFAM who also extend their design assistance from time to
time. UMBVS arranges training programmes for the weavers in its training and sales centre
located at Pokharan. The Samiti has also been able to get financial support from banks, initially
mainly from SIDBI. UMBVS has been getting new designs for its products from leading
institutions like NIFT, NID etc. It is also trying to initiate product innovation by the weavers
themselves

48
9.2 Action Plan for Handloom Sector in Bihar
Any action plan for handloom sector should necessarily involve an attempt to utilise the
large existing resources already deployed by the state government. The preceding
chapters clearly portray a picture of utter neglect and decay of various such
institutions/facilities in the state. The starting point of the action plan is thus a major
programme to revive/revamp the existing state govt. institutions/facilities in the sector

9.2.1 Revival of the Weavers Training Centres

Most of the training centres for weavers in the state are facing a crunch for both physical
and financial resources. The looms on which training is to imparted are either not
functional or are in a bad shape. The rooms are ill maintained and often dark and damp
which are not conducive for conducting training programmes. Most important, these
centres have suffered from management neglect and staff apathy. The trainers at most of
these centres appear to be demotivated and clearly needed capacity building. The syllabus
is outdated and there is no industry linkage.

It is proposed therefore that state government comes out with a scheme to upgrade and
modernize these state weavers training centres. The scheme can provide for a grant
assistance of Rs. 10 lakhs for each training centre. While Rs. 5 lakhs would be provided
for need-based construction and upgradation of existing building, a further Rs. 5 lakhs
could be available for buying frame looms along with dobby, jacquard, other accessories
and also equipment required, for training in dyeing and finishing .

It is also proposed that select training centres are converted into vibrant training-cum-
production centres so as to make them commercially sustainable in the longer run. While
these training centres are supposed to sell the products manufactured during production,
in reality this is not being done. The conversion to training-cum-production centres
would require additional raw materials and marketing linkages and this may be left to the
initiative of the managements of these training centres. Initially, such training centres
may be provided with interest free working capital loan depending on their needs, which
may have to be submitted as part of a business plan.

Further, there is an urgent need to prepare an updated syllabus and this may be done in
consultation with the industry. This would not only make trainees employable, if not self
employed, in the proposed handloom parks, but also make their products acceptable in
the market. The updated syllabus needs to be structured to have significant inputs on
design and market trends.

A capable faculty in such training centres would be key to their revival and for this
purpose, a structured Training of Trainers programme may be launched. Such a
training programme of the duration of 2-3 weeks may be conducted in Patna to help them
update on the design, technology and market trends in the handloom sector in the
country.

49
Finally, such training centres need complete revamping of management and it is
preferable that training centres should have a decentralized management structure.
Presently, in many cases, training centres are being looked after by Deputy Development
Officer (Textiles) as an additional assignment. In some cases, these centres are being
looked after by General Managers of District Industries Centres. This leads to lack of
focus in management and consequent mismanagement.

It is being proposed that Training Centres should have an autonomous management and
headed by an Officer of Assistant Director (Textiles) or of similar rank. The persons in-
charge should preferably have a technical qualification in industry or management. The
state government may also hire professional manpower from the market for heading these
training centres and their compensation structure could have a performance link in the
form of incentives.

It is also being proposed that the state government may propose having a modern Indian
Institute of Handloom Technology (IIHT) in the state. Bihar Institute of Silk & Textiles,
located in Bhagalpur, could have a dedicated handloom technology wing which may be
given the status of an IIHT and which would run a three years Diploma Course in
Handloom Technology, conducted by the IIHTs. This Institute has already got the basic
infrastructure but would require induction of qualified faculty and facility of computer
aided designing along with improvements in laboratories etc. A budget of Rs. 20 lakhs is
proposed for equipping the Institute with laboratory equipment and other facilities which
would enable it to offer full fledged B.Tech. course again (as it did earlier). For IIHT, a
separate seed budget of Rs. 5 lakhs is being proposed which may be supplemented by
funds from DC (Handlooms).

9.2.2 Revival of Central Processing Plant, Biharsharief and Dying and Finishing
Plant, Darbhanga

The Central Processing Plant, Biharsharief and Dying and Finishing Plant, Darbhanga
were two major state government interventions for promoting the textile sector in the
state, with stress on handlooms. The closure of these plants for more than a decade now is
a clear reflection of the decline of the textile sector in the state.

To be sure, these plants were not dedicated for handlooms but were equipped for printing,
dying and finishing jobs for a range of fabrics in addition to preparation of beams for
handloom weavers. Any effort to revive these plants would be therefore linked to the
textile sector as a whole. This would also be required because the present size of the
handloom sector in the state would not justify the costs involved in revival of these
plants.
There is a strong case of revival of Central Processing Plant at Biharsharief as it is close
to a vibrant powerloom centre like Maanpur in Gaya. Till now this cluster, which has
around 8000 power looms in operation, is producing low value grey fabric which leaves
little margin for the weavers/entrepreneurs. It has been found that the entrepreneurs in
Gaya often come across opportunities for supplying of finished fabric to the market, but
they are unable to avail of such opportunities due to lack of processing facilities.

50
It is clear that any revival plan for the Plant at Biharsharief has to be linked to the
neighbouring production centres and so the matter was discussed with some powerloom
entrepreneurs of Maanpur. While the distance of Biharsharief from Maanpur of around
100 kms is being considered as an obstacle, this can be addressed as the overall
infrastructure of the region gets upgraded and road linkages improve.

As for the plant at Darbhanga, while presently there does not seem to have requisite
demand for such facilities in the surrounding region, a revival plan for Khadi sector may
make its operations commercially feasible.

It is proposed that revival of these plants should be done through inviting private
entrepreneurs/groups of entrepreneurs. To start the process, a detailed valuation work has
to be carried out which would have details of liabilities and assets of the plants. Once
such details are known, including the liabilities relating to employees, if any, the private
entrepreneurs can be invited through a bidding route. A budget of Rs. 25 lakhs is being
proposed for the detailed valuation exercise.

9.2.3 Revival of Co-operative Spinning Mills

The state of Bihar needs to have at least one operational spinning mill. This would not
only supply yarn to handloom weavers but also facilitate growth of power loom sector in
the state and may give a fillip to the textile sector as a whole. However, the present size
of textile industry in the state may not support operation of three spinning mills (currently
defunct). The revival of the spinning mill at Bhagalpur though can be a commercially
sustainable proposition.

Any revival of these mills may be through private investment as state government
investment in these mills would not be advisable. The operation and sustenance of these
mills would require professional management and business orientation. As indicated in
the case of processing plants, the revival plan has to begin through a valuation exercise
which would have details of assets and liabilities of mills. It would, in particular, have
liabilities relating to wage arrears. The state government may have to come out with a
package to offset the liabilities of the mills and then invite expression of interest from
private investors for purchase of mills. Some entrepreneurs have already expressed
interest in purchasing Bhagalpur spinning mill. Its revival along with the proposed textile
park and handloom park in Bhagalpur may give a big boost to the textile sector in the
area. Such initiatives may then be further replicated in Gaya and other parts of the state.
A budget of Rs. 25 lakhs is also being proposed for the detailed valuation exercise for
these spinning mills, which will help identify strategies for their future use.

51
9.2.4 Handloom Parks
As indicated above, major problems confronting the essentially unorganized handloom
sector of Bihar are:
1. Scarcity of raw materials
2. Lack of training in new products/designs
3. Insufficient production base to supply timely and quality products
4. Lack of pricing methodology
5. Non-availability of credit facilities
6. Inadequate marketing linkages

Most of these issues are proposed to be addressed by developing model Handloom Parks
in the State based on a PPP approach which may be implemented through establishment
of Special Purpose Vehicles (SPVs). The Parks would be designed to meet the
requirement of sustainable livelihood for the highly skilled artisans and weavers of the
state by providing them both forward and backward linkages.

In addition, these handloom parks would act as a support to the artisans for enhancing
their skills, increasing their business turnover and provide remunerative share of
increased returns to the artisans. The major objectives would then be to:
a. Create a common platform to ensure economies of scale
b. Improve the market visibility of the cluster
c. To provide a permanent marketing network
d. Bring the cluster to international level in terms of infrastructure, services and
regulatory mechanism

9.2.4.1 Rationale for the Park

Providing full time employment and remunerative work to weavers would remain the
prime objective of the Handloom Parks. The objective of such Parks would also be to
safeguard the interest of both weavers and customers by reducing the hold of middlemen.
One way of achieving this would be optimum utilization of skill sets of weavers. It is
observed that, at present around 50% of their time is spent on unskilled/semi-skilled
work, such as procurement of raw material, pre & post processing etc. The pre & post
processing facilities are increasingly getting mechanical elsewhere. However, at present
in the state handloom clusters, including in Bhagalpur, weavers are operating at a scale
where mechanization is not economical. In the proposed Parks, these mechanized
services can be provided through common facility centres.

52
Handloom Parks would also provide for modern packaging facilities. Packaging and
Presentation remain important aspects in the market. In most of the clusters, poor
presentation and packaging of the products was observed. Even silk saris /suits are folded
and kept in the low quality polythene bags and packed in low quality boxes. This would
not be acceptable in the modern market. The Parks, by providing such facilities would
reduce dependence of weavers on the middle man. With good packaging, products can
reach higher-end retail chain markets.

Thus, it is suggested that the Handloom Parks consist of the following interventions.
Technological: Increasing productivity by induction of modern looms, product and
design development, standardization of product, quality control measures with well
defined specifications.
Marketing: Assimilation of market intelligence, product identification as per market
segmentation, appropriate market linkages, attractive packaging, networking
through IT, test marketing through exhibitions/fairs, effective publicity through
appropriate media mix.
Financial: Pooling of financial resources through PPP approach

It is proposed to facilitate setting up of 5 handloom parks in the state. For the purpose, it
is proposed that state government may provide an Infrastructure subsidy of 20 % of the
cost of the project to each handloom park project, subject to a maximum of Rs. 2 crore
per park. This would be in addition to the grant facility available under Scheme for
Integrated Textile Parks or any other schemes of the central govt.

9.2.5 Modernisation/Upgradation of Looms

A major initiative would be modernization of looms. This is necessary for increasing
production efficiency and value addition to the products. In this context, induction of
modern frame looms and jacquard/dobby attachments may be supported. It is proposed to
provide a grant subsidy of 50 % of the cost of modern looms/loom upgradation to the
weavers in the state, subject to a maximum of Rs. 12500 per loom. This facility may be
available to both individual weavers or a group of weavers. This would be in addition to
any such incentives available to the weavers from Central govt.

53
9.2.6 Raw Material Banks
The weavers are facing difficulties in procurement of raw materials. This has led to
increased dependence of the weavers for work on local mahajans. The Proposed Business
Plan for the sector is therefore trying to address this issue by way of introducing raw
material depots. To address the issue of availability of quality yarns to weavers at
reasonable rates, it is proposed to have 10 raw material banks/yarn depots in various
handloom clusters of the state. While there are some yarn depots functioning, they suffer
on account of inadequate storage arrangements and lack of working capital. It is
proposed, therefore, to provide a subsidy of 50 % for civil construction needed to set up
raw material banks in the state along with a one time grant of Rs. 5 lakh as initial
working capital for each raw material bank. Such raw material depots may be set up
inside a handloom park or outside and a group of at least 25 weavers/entrepreneurs would
be eligible for grant under the scheme.

9.2.7 Dyeing Centres

None of the clusters has organized dyeing centres with modern facilities like water
softening plants or dyeing chambers. Dyeing in most of the clusters is unorganized and
marked with low end applications. All this has significant bearing on quality of final
products and resultant poor value realisation by the weavers. Therefore, the proposed
business plan for the sector has to have focus on such common infrastructure facilities
like dyeing and finishing plants etc. To ensure value addition and increased income for
the weavers, all major handloom clusters may be provided with dyeing centres including
water softening plant, dyeing chamber, ETP etc. It is proposed to provide 75 % subsidy
on civil construction and plant and machinery for all such centres in the state.

9.2.8 Post weaving/Finishing/Packing Centres

The finishing and packing centres would be facilitated for effective marketing of the
handloom products in the state. Such post weaving centres/finishing and packing centres
in major handloom clusters may have facilities of screen/block printing, surface
beautification/embroidery etc. Two such finishing centres may be initially supported with
75 % subsidy on civil construction and plant and machinery .

9.2.9 Design and product development

Lack of innovative designs, poor understanding of the market needs and consequently
non availability of market remains the biggest obstacle in the way of the handloom sector
in the state. It has to be understood that viability of the handloom sector is dependent on
it catering to niche and high value market, both in India and abroad. Low value products,
which can also be produced with power looms, can never sustain the sector and weavers.
This would therefore necessitate modern design, requisite skill upgradation and market
linkages with stress on brand promotion.

54
Thus, it is proposed to have a series of training programmes/workshops focusing on
design inputs largely based on local motifs. Leading designers of the country may be
invited to the state for a close interaction with weavers. In this connection, the proposed
centre of National Institute of Fashion Technology (NIFT) in the state may be very
useful. The process of setting up the centre in the state may therefore be followed up as a
priority.

9.2.10 Brand-building & Market Promotion

A major brand building exercise would be required for adequate marketing linkages to
the handloom sector in the state. It is proposed to have brands using names like Nalanda,
Vaishali and Mithila which would make the state products have a brand recall not only in
the national but also export market. The effort would also be to link the weavers in the
state to the national and international market though exposure visits, buyers-sellers meets,
participation in exhibitions etc.

Leading retail chains which also are major buyers of textiles and handlooms products
may be invited to the state and persuaded to have long term buying arrangements with
major handloom clusters in the state. Of course, it would necessitate strengthening of
capacity of clusters to ensure reliable supply and consistent quality.

An effort would be made to have dedicated handloom retail centres in major cities of the
state which may be owned and managed by weavers bodies alone or in partnership with
entrepreneurs/traders. Registration under GI may be one way to create and preserve local
unique products of handloom clusters.

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Geographical Indication (GI) for Handloom products

The Act:
Agreement on Trade related Aspects of Intellectual Property Rights
(TRIPS) is an important Agreement under WTO, for protecting
intellectual property rights and to reward creativity and inventiveness. In
line with the TRIPS Agreement, Government of India has enacted the
Geographical Indications of Goods (Registration & Protection) Act, 1999
which seeks to provide for the registration and better protection of
geographical indications relating to goods in India
The GI Act came into force on 15th September 2003. GI is an indication
on origin and is used to identify agricultural, natural or manufactured
goods originating in a particular region. It originates from a definite
territory and always has a special quality or characteristics or reputation
based upon the climatic or production characteristics unique to the
geographical location.
This Act seeks to provide for the registration and better protection of
geographical indications relating to goods in India. The Act is
administered by the Controller General of Patents, Designs and Trade
Marks- who is the Registrar of Geographical Indications. The
Geographical Indications Registry is located at Chennai

Registered Proprietor:

Any association of persons, producers, organization or authority

established by or under the law can be a registered proprietor.
Their name should be entered in the Register of Geographical Indication
as registered proprietor for the Geographical Indication applied for.

Benefits of GI Protection:

It confers legal protection to GI of products in India

Prevents unauthorized use of registered GI by others
It provides legal protection to products which in turn has a potential to
boost exports
It promotes economic prosperity of producers of goods produced in a
geographical territory. Clearly, GIs are not limited to any particular
enterprise and thus enjoyed by all enterprises within the demarcated
geographical area that qualify for use of the indication.
Form an economic standpoint, GI is seen as a form of collective
monopoly right that erects entry barriers on producers outside the
relevant geographical area. In sum, GIs define who can make a particular
product, where the product is to be made, and what ingredients and
techniques are to be used so as to ensure authenticity and origin.

56
Geographical Indication for Handloom products

A Successful example in Pochampally

Pochampally, a small town in Nalgonda district of Andhra Pradesh, is a handloom

cluster known for its unique Ikat design. About 50% of the population of
Pochampally depends on handlooms. There are about 100 master weavers in
Pochampally, once dominated by co-operatives.

Cluster development initiative aimed to commercialize this unique skill and product.
Consequently, it was decided to get a registration for Pochampally as Geographical
Indication which was achieved in December, 2003. The GI has been granted for
goods covered under classes 24, 25 and 27 ie. for saris, furnishing, textiles and textile
goods. It is the first traditional Indian craft to receive this status of geographical
branding. Pochampally Weavers Co.op Society & Pochampally Tie & Dye
Manufacturers Association have been granted the exclusive right to use the said GI.
Consequently, registration of the GI Pochampally Ikat confers legal protection in
case of unauthorized use of infringement. It also vests in the Registered Proprietor
and the Authorized Users a legal right to initiate infringement action.

Case of Infringement :

In May, 2005 it came to the knowledge of proprietors of GI that one of the retailers in
Hyderabad, was selling saris under the false GI of pochampally. The copy of the
impugned product was purchased form the Retailer. On further investigation, it was
found that one of the Mumbai based manufacturers was manufacturing and selling
the saris in wholesale market.

Thus, a case was filed by the proprietors of GI against the said manufacturer for
selling the product with the label Pochampally, which is visually and phonetically
similar to the GI product of Pochampally Ikat. Later, both retailer and manufacturer
accepted the case of infringement and agreed for out of court settlement. They also
gave an undertaking not to sell any products in the name of pochampally.

57
9.2.11 Credit linkage and Micro finance
Credit remains the lifeline of any enterprise. Non-availability of credit from institutional
sources has been cited as one of the reasons for the absence of independent enterprises in
the handloom sector. This is despite schemes and programmes of various public sector
banks targeted at poor, including weavers. In most cases, weavers were not familiar with
various schemes run by the banking institutions for promoting credit to the weavers. The
bankers were also found hesitant, if not indifferent, to credit needs of the weavers. Most
of the bankers also seemed worried about ability or even willingness of weavers to pay
back the loans.

Thus, it is proposed to have a programme designed to sensitise the bankers about the
sector. A series of workshops may be conducted in major handloom clusters of the state
which would be aimed at making bankers understand the sector better and thus enable
them to take informed credit decisions. Lead Banks of the identified clusters may also be
persuaded to have a special component for weavers in respective District Credit Plans.

Further, realizing the limitations of formal banking sector in addressing the needs of the
weavers, it is proposed to develop a Micro finance plan for the sector which would
involve bringing in Micro Finance Institutions (MFI) in the state. It has been observed
that the state lacks presence of micro credit network which has made such an impact in
the southern states. Thus, a strong micro finance network in the state may be created with
focus on handloom sector.

However, it is to be understood that supply side approach to credit has its limitations. The
demand side has to be strengthened and the proposed comprehensive business plan is
aimed at making the sector attractive for bankers. The proposed handloom park projects,
to be positioned as commercially sustainable projects to bankers, may also be able to
address the gaps in credit linkages to the sector.

9.2.12 Group/Federation/SPV formation and Micro finance

The Primary Weavers Cooperative Societies, generally speaking, have been unable to
galvanize themselves for establishing viable delivery platforms. They have failed to
distribute work to a large section of the weavers. In some cases, the PWCSs have formed
vested interests and functioned more as a caucus to promote interest of a handful of
people instead of making the co-operative units more broad based and representative.
Thus, while the state has a large number of PWCSs, most of them are not functional.
Thus, as an alternative to the co-operative sector, it is proposed to facilitate formation of
SHGs/Federation and Special Purpose Vehicles (SPV) to implement the proposed
interventions. An intensive campaign may be launched to create SHGs amongst weavers
and further federate them into viable business units.

58
Coming together in the Chanderi Way

Chanderi Bunkar Vikas Samiti(BVS) is a Federation of 13 Self- Help Group (SHGs)

comprising of weavers from weaving cluster of Chanderi, Madhya Pradesh. BVS is
managed professionally to provide weaving opportunity to weavers throughout the
year and thereby make the handloom sustainable. There is a weekly meeting wherein
every group is supposed to make a presentation about the progress of the work
assigned to them, problems confronted by them. Then, there is deliberation on various
issues raised by group representatives. Issue of quality control is emphasized and a
mechanism has been created to reject products that do not conform to the
specifications. There is a production manager to oversee quality production of fabrics.
It is to be noted that these groups affiliated to the samiti are heavily represented by
women. The USP of this samiti is its market linkage. In this case, the Samiti is linked
to Fab India, the renowned retail chain for traditional Indian outfits.

The Samiti has gradually expanded its operations and has tried to become self-reliant
in its operations by developing a common facility centre of dyeing which cuts their
cost of production.

The Samiti has also set up a raw-material depot to make yarns available to the weavers
at reasonable rates. This saves the weavers from exploitation at the hands of local
traders who normally sell their wares with a high margin of profit. This raw material
depot is a self-sustaining unit. It takes advantage of the Mill Gate Price Scheme of
the National Handloom Development Corporation (NHDC) that facilitates
sourcing/procurement of raw material at reasonable rates. The raw material depot sells
the wares with a 3% mark-up on the procurement price to the members of the Samiti
and with 5% mark-up to non members.

This innovative effort in Chanderi handloom sector has paid dividends. Weavers have
regular work and they can sell their products to the Samiti, which in turn makes them
timely payments. With continued market linkage, the Samiti makes profits and shares
the same with member weaver-groups by way of annual bonuses. The turnover of the
Samiti last year amounted to Rs. 70 lakhs (Rs. 20 lakhs through self-marketing and Rs.
50 lakhs from Fab India) and it has set the target of 1 crore this year. One can safely
conclude that this Chanderi Model can provide useful lessons for handloom sector in
Bihar.

59
10. Impact of Business Plan
The proposed interventions are aimed at turning around the handloom sector in the state
with a focus on providing sustainable employment opportunities to the weavers. The
proposed five handloom parks, each having around 2,000 handlooms, will lead to
installation of 10,000 handlooms. In addition it is proposed to provide support for 4,000
additional handlooms weavers in other clusters. A total of 14,000 handloom units would
provid employment to 35,000 people (Assuming one handloom provides employment to
one weaver and 1.5 workers). Revival of three co-operative spinning mills and two
processing plants, is likely to generate employment for a further 2,500 persons. In all, the
proposed interventions are likely to generate employment for around 40,000 people in the
state.

Compared to only 34 per cent of weavers getting income of over Rs. 3,000 per month
presently, the proposed business plan is likely to ensure a minimum income level of Rs.
3,000 per month for all the weavers who would be part of proposed handloom parks and
other proposed initiatives.

Finally, the proposed business plan, when implemented successfully, can make significant
contribution to the textile sector in the state as a whole and, in particular, can help revive
the khadi sector, which would have huge positive spin off for the state economy.

60
Chapter-10 : Implementation Mechanism for Proposed
Business Plan
It is being acknowledged today that the schemes/programmes being run both by central
and state governments have suffered in delivery due to lack of professional management.
Also, project development has a crucial role to play in execution of any programme. The
project development component involves identification of right stakeholders/beneficiaries
and structure projects in keeping with the guidelines of the schemes/programmes. Thus, it
is proposed to bring in an innovative effort to engage professional agencies for project
development and implementation of various proposed interventions for handloom sector.

10.1 Project Approval and Monitoring Committee

The state govt. may constitute a Project Approval and Monitoring Committee (PAMC)
headed by Industrial Development Commissioner (IDC) which may have Director of
Industries, Director (Handlooms), Director (Technical Development) and other state
government officials as members. PAMC would be responsible for approval of projects
relating to proposed interventions including handloom parks. PAMC would also have a
mechanism for regular review of progress of the projects.

10.2 Programme Management Agency

The Programme Management Agency (PMA) would be an independent professional
agency with multi disciplinary skill sets and would be positioned for developing the
projects under the scheme and hand-holding them through the entire life cycle (from
concept to commissioning).

The primary role of PMA would be to assist the Project Approval and Monitoring
Committee in effective implementation of the proposed interventions. Thus, PMA will be
providing need based technical support to the PAMC and Office of Director (Handlooms)
to ensure that the projects are identified and implemented in keeping with the guidelines.

10.2.1 Roles and Responsibilities of PMA

1. Information dissemination and creation of awareness about the state govt.

programmes

PMA would begin the exercise by an intensive sensitization programme aimed mainly at
the weavers and state govt. officials. The attempt would be to not only make the
stakeholders aware about the state govt. initiatives but also create an atmosphere of trust
amongst the stakeholders.

61
2. Project identification

Based on interaction at the field level, the potential projects in terms of users / stake
holders / partners / linkages, the locations and the broad business plan of the proposed
projects would be identified.

3. Preparation of Detailed Project Reports

Once the potential projects are identified, Detailed Project Report (DPR) will be prepared
for each of the project. Such DPR would provide technical, financial, commercial,
institutional and operation and maintenance (O&M) details of each of the project
elements. The DPR would also be appraised / evaluated by the PMA with respect to its
financial viability, commercial sustainability and socio economic impacts.

4. Structuring the SPVs

Since each of the identified project needs to be owned, executed and managed by the
concerned stake holders, PMA shall assist such stake holders in developing / structuring
appropriate institutional mechanism / framework in the form of project specific SPVs.
This would include assistance in incorporation of the SPV, execution of shareholder
agreements and other project related agreements. PMA will also advise the SPVs in
meeting the legal and secretarial compliances in accordance with company laws and other
relevant acts.

5. Approval of the projects

PMA shall present the DPRs of the identified projects to PAMC and facilitate the
decision making process for approvals.

6. Financial closure

Once the projects are approved by PAMC, PMA shall assist the project specific SPVs in
achieving financial closure. This would be done by helping SPVs in tapping various
sources of funds, like grant, loan and equity so that projects financial needs are tied up.

7. Assistance to SPVs in Project Execution and Management

Once the financial closure is achieved, the concerned SPVs would take up the execution /
implementation of the approved projects by way of engaging need based consultants /
service providers for various components of the projects.

PMA would provide advisory / oversight to the SPVs in execution of the projects. Such
assistance to SPVs would include: procurement of project specific consultancy services,
need based engineering activities, technology sourcing, market linkages etc.

62
8. Release and utilisation of State govt. grant

PMA shall assist / advise PAMC in release of grant support to SPVs and also oversight
proper utilization of such released funds. A suitable framework in the form of a dedicated
project account maintained by SPVs with designated banks for the Government grant will
also be developed for this purpose.

9. Coordination with Central Government and other Agencies/ Institutions

PMA shall also be interacting with Central Govt. and other Agencies /Institutions and
help SPVS in availing eligible grants/facilities from the central govt. and other
Institutions. PMA would also liaison with expert Institutions / Agencies that are relevant
to the projects.

10. O&M of the projects

Post execution, PMA would assist the SPVs in development and implementation of
suitable O&M plan for the projects.

11. Monitoring and reporting

PMA would assist PAMC in effective monitoring of the programmes/projects by way of

providing periodical progress reports on various aspects of each of the approved projects.
Suitable MIS would be developed for this purpose.

63
Chapter-11 : Proposed Budget
The proposed interventions along with budget outlay are given below:

Estimated Proposed
Sr. Project Cost Budget
Proposed Interventions
No.
(Rs. lakh) (Rs. lakh)

1 Upgradation of State training Institutes Any 105 105

intervention in the handloom sector in the state has
to begin from upgradation of existing state
resources. This would be necessary for equipping
weavers with requisite skills. It is proposed to
provide a grant subsidy of Rs. 10 lakhs for each
training centre and additional Rs. 25 lakhs for
Bihar Institute of Silk and Textiles.

2 Revival of processing plants and co-operative 50 50

spinning mills-
This would be another important step in the
direction of revival of handloom sector in the state
as these plants would be required for effective
backward and forward linkages. The revival
exercise has to begin with valuation exercise which
would be required for inviting private investors

3 Modernisation/Upgradation of Looms A major 1000 500

initiative would be modernization of looms. This is
necessary for increasing production efficiency and
value addition to the products. In this context, (For 4000 (50 % grant
induction of TARA looms or other such looms and looms @ Rs. for each
Jacquard/dobby attachment would be encouraged. 25000 ) modern loom/
It is proposed to provide a grant subsidy of 50 % of upgradation of
the cost of modern looms/loom upgradation to the loom subject to
weavers in the state. a maximum of
Rs. 12,500 per
loom)

4 Handloom parks Provision of infrastructure to 5000 1000

handloom units would be a priority. This may be
done in form of development of handloom parks
which would have modern enabling infrastructure (200 lakh each
for weavers. An infrastructure subsidy of 20 % of for five
the cost of the project would be provided for handloom
handloom parks, not exceeding Rs 200 lakh per parks)
park. This would be in addition to the SITP grant
to improve the viability of handloom park.

64
 Estimated Proposed
Sr. Project Cost Budget
Proposed Interventions
No.
(Rs. lakh) (Rs. lakh)
5 Raw Material Bank Procurement of quality 100 75
yarns and making them available to weavers at (50 % grant for
reasonable rates would be significant for increasing (For 10 civil
income level of weavers. It is proposed to provide depots @ Rs. construction ,
subsidy of 50 % for civil construction needed to set 5 lakh for with a
up raw material banks in the state. Also, a one time civil maximum of Rs.
grant of Rs. 5 lakh would be given as initial construction, 5 lakh for each
working capital for each raw material bank. 5 lakh for depot, and
working working capital
capital) of Rs. 5 lakh for
each depot)
6 Dyeing Centres Major handloom clusters would 60 45
also require dyeing centres (water softening plant, (For 5
dyeing chamber, ETP etc.) to make the product dyeing
marketable in the national market. Such centres centres @ Rs.
would be provided 75 % subsidy on civil 12 lakh )
construction and plant and machinery.

7 Post weaving/Finishing/Packing Centres There 100 75

would be post weaving centres/finishing and
packing centres in major handloom clusters which (For two
would have facilities of screen/block printing, centres @Rs.
surface beautification/embroidery etc. Two such 50 lakh)
finishing centres would be initially supported with
75 % subsidy on civil construction and plant and
machinery.

8 Design and product development Handlooms 50 50

would have to bring in innovative designs for
attracting the modern consumers. This may be
done through a series of training
programmes/workshops focusing on design inputs
largely based on local motifs. Leading designers of
the country would be invited to the state for a close
interaction with weavers
9 Brand-building & Market Promotion This 300 300
would be the most significant initiative for
handloom sector in the state. A major brand
building exercise would be undertaken (which may
use names such as Nalanda and Vaishali) to make
the state products have a brand recall not only in
the national but also export market.

65
 Estimated Proposed
Sr. Project Cost Budget
Proposed Interventions
No.
(Rs. lakh) (Rs. lakh)
There would also be an effort to link the weavers
here to the national and international market
though exposure visits, buyers-sellers meets,
participation in exhibitions etc.

10 Group/Federation formation and related 100 100

capacity building
The weavers in the state would need to be brought
together in major clusters of the state in form of
SHGs and Federations. This would be required to
undertake collective activities like setting up of
yarn depots/common facilities centres, micro credit
linkages and also in general take advantage of
economies of scale. This would then require
intensive capacity building exercise in the state.

11 Project Development, Implementation and 100

Management The success of all the above
(Project
initiatives would require engagement of
development
professional agencies for on project development
and
and implementation. In particular, project
Implementation
management agencies would be required for
charges)
setting up of handloom parks, raw material banks,
dyeing centres etc.

Total 6865 2400

66
Annexure
ESTABLISHING A MODEL INTEGRATED HANDLOOM PARK IN
BHAGALPUR

On the basis of feedback received through Focus Group Discussion and other
interactions, following facilities may be proposed in the Bhagalpur Handloom Park :

Raw Material Bank

Ensuring quality raw material with a steady supply through out the year is the one of the
main requirements of the industry. Bhagalpur is known for its Tussar silk/fancy yarn
products. It has been observed that indigenous Tussar Silk is not available adequately in
the market. So, weavers are depending on the imported silk, mostly from China, which is
made available by the local traders. In case of man-made yarns, they are depending on
Panipat, with little control on price. So, Raw Material Bank in the Park would be aimed
at ensuring regular supply of yarns at reasonable prices.

Pre & Post processing facility

Bhagalpur handloom cluster is known for its multi-fiber base. However, required
processes of doubling, twisting etc. are being carried out manually. These processes and
other processes like: warp/weft preparations would be carried out mechanically in the
proposed Park, which would be cost effective and also ensure adherence to quality
parameters.

Artisan village

Bhagalpur products are well known but unable to increase or even retain their market
share because of poor production base. The cluster needs to expand the production base
with the capacity of minimum 1000 looms at one place (Weavers Village), to ensure the
timely and quality supply. The proposal to have looms under one roof in the Park would
address this issue as also enable the cluster to go for the modern looms with requisite
accessories.

R&D Centre

Innovation, creativity, diversification, fiber mix/blends etc. are important aspects of the
handloom industry. There are good number of Master weavers in the industry but their
expertise remain underutilized. An R&D centre with these weavers will help the younger
generation to get the right kind of inspiration and guidance. Further, it would also be
linked to technical institutes for greater effectiveness.

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Testing Laboratory

Quality is the one of the main constraints of the Bhagalpur products. Quality needs to be
ensured along the entire supply chain. Testing facility in the park would help in adhering
to requisite standards.

Information and Training Centre

Information and Training Centre in the Park would have design bank, information on
present market trends as well as facilities for training in mechanization at pre & post
processing stages. There would be need assessment of industry and proper linkages with
the industry would be ensured. Small duration training programmes for weavers in areas
like skill upgradation, product diversification, packaging, export procedures etc. would be
taken up in the centre. The Centre will also ensure up-gradation and refinement of design
skills, development of handloom products based on market requirements with proper
exposure to the national and international market.

Marketing Centre

It is required to maintain a constant interface in a structured manner between the

producers and buyers. Some major components to be focused through proposed Park
would be:

Promotion of a unique Brand

Display/Exhibition Centre
Export facility Centre
Buyers Sellers Meets

It has been observed that weavers themselves going for the exhibitions to market
products reduce their productive time. So, Park can provide facility to showcase and
market the cluster products. Handloom items need to have exclusive display cum
exhibition centre operated by trained sales personnel, so that buyers will be educated and
assured about getting value for money. Also, the Park would promote a unique brand to
ensure a sustainable market.

Basic Infrastructure

Finally, the Park needs to be well connected and have all necessary basic infrastructure
like good road linkages, uninterrupted power supply, continuous water supply, effluent
treatment plant etc.

A detailed project report for Handloom Park would be the next step for making this
vision a reality.

68