Financing of Tamil Nadu Handloom Weavers Coop. Society Ltd. (Co-optex)
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.
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%).
Yarn Account
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.
Policy changes in Weavers' Finance
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.
(i) Eligibility norms to Banks, based on the level of recovery and NPAs for provision of refinance
a) For Financing PWCS
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.
b)  For Financing Regional WCS
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.
(ii) Critical Refinance Support to DCCBs
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.
(iii) Reduction in the rate of interest
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. 
Revision of Per Loom Scale of Finance
The unit Cost Committee revised the per loom scale of finance for the year 2003-2004 as follows :

                                                           (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