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Financing of Tamil Nadu Handloom Weavers Coop. Society Ltd. (Co-optex)
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TNSC Bank sanctioned a credit limit of Rs.80.00 crores to Co-optex
for procurement and marketing of handloom cloth, Rs.7.00 crores
for procurement and marketing of powerloom cloth, and Rs.3.00 crores for
yarn Business during the year 2003-2004. TNSC Bank
correspondingly obtained credit limits from the NABARD for like
amounts for financing Co-optex.
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The Co-optex utilised the handloom cloth limit to the extent of
Rs.78.83 crores (98.54%) and powerloom cloth limit to the extent of
Rs.9.88 crores (141%).
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Yarn Account
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TNSC Bank sanctioned a limit of Rs.3.00 crores to Co-optex for yarn
business for the year 2003-2004, on similar refinance limit sanctioned
by NABARD. This limit was utilised by Co-optex to the maximum
extent of Rs.2.33 crores and utilisation was 77.66% under Yarn
Account.
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Policy changes in Weavers' Finance
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NABARD's policy for sanction of weavers credit limits to DCCBs / Co-optex
for the year 2003-2004 underwent a few changes, which are detailed
below.
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(i) Eligibility norms to Banks, based on the level of recovery and
NPAs for provision of refinance
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a) For Financing PWCS
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Recovery of at least 50% under all loans and advances as on
30.6.2003 or NPAs not more than 20% of total loans and advances as
on 31.3.2003, whichever is compiled with.
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b) For Financing Regional WCS
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Recovery of 65% under all loans and advances as on 30.6.2003 or NPAs
not more than 15% of total loans and advances as on 31.3.2003,
whichever is compiled with.
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(ii) Critical Refinance Support to DCCBs
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For the year 2003-2004, DCCBs which are unable to comply with either
of the Recovery / NPA norms would be extended critical refinance
support to the extent of the maximum outstanding borrowings from
NABARD during the previous year. However, no credit limit critical
refinance was sanctioned to 8 DCCBs during the year 2003-2004.
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(iii) Reduction in the rate of interest
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Rate of interest on refinance for financing the working capital requirements
of the DWCS and the apex level WCS had been reduced by half percent
three times during the year ie., with effect from 16.01.2003,
1.07.2003 and 13.02.2004.
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Revision of Per Loom Scale of Finance
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The unit Cost Committee revised the per loom scale of finance for
the year 2003-2004 as follows :
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(in Rupees)
|
| Variety |
Per Loom Scale of finance
for 2002-2003 |
| HANDLOOMS |
|
| Cotton |
21,300 |
| Special Cotton |
38,000 |
| Pure Silk |
55,000 |
| Polyester |
34,000 |
| POWERLOOMS |
|
| Cotton |
45,000 |
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