The National Bank for Agriculture and Rural Development (Nabard) has released Rs 10 crore to APCOB (Andhra Pradesh Cooperative Bank) for revival of handloom sectors.
This amount would go to recapitalising Andhra Pradesh State Handloom Weavers Cooperative Society (APCO).
This is a follow-up to the recent signing of an agreement by Nabard with Andhra Pradesh Government and the Union Government to revive the ailing handloom sector which provides livelihood for three lakh weavers in the State.
“Andhra Pradesh has become the first State in the country to sign an agreement under the Union Government's Weaver Package,” the bank said here in a statement on Thursday.
The Central assistances to the handloom sector is in addition to the State Government's package announced some time ago.
The sector, which is the second largest employer in the State after agriculture, is starved of funds.
‘Win-win situation'
Mr S.K. Mitra, Executive Director of Nabard, said the package contained interest subsidy component, provided margin money to weavers and offered credit guarantee for banks. “It is a win-win situation for all stakeholders. The Centre has designated Nabard as the Project Implementing Agency to implement the package,” he said.
The total outlay of the package was put at Rs 3,884 crore for the country. “Of this, we are expecting to get Rs 300 crore for the State,” Mr P. Mohanaiah, Chief General Manager (Nabard — AP), said in the Statement.
“Due to weak co-operative structure, high prices of hank yarn and other inputs and marketing bottlenecks, the sector witnessed a decline over a period of time in the State,” he said.
kurmanath@thehindu.co.in