CCEA reintroduces rebate scheme on sale of handloom products

New Delhi, Aug 10 (UNI) The Cabinet Committee on Economic Affairs (CCEA) today gave its approval for re-introduction of 'Scheme for reimbursemnt' of one time rebate at ten per cent given by the handloom agencies on sale of handloom cloth.

The rebate is for a period of three years beginning from the year 2006-07 with a budget provision of Rs 100 crore. The provision of Rs 20 crores is for the period of 2006-07, Rs 40 crores each for the years 2007-08 and 2008-09.

Briefing newspersons on the outcome of the CCEA meeting, Finance Minister P Chidambaram said the scheme will be 100 per cent funded by the Central Government.

After the introduction of Scheme the National Handloom Organisations, National Handloon Development Corporation, Handicrafts and Handloom Export Corporation, State Handloom Corporations, State Handloom Apex Co-operative Societies and Primary Handloom Weavers Cooperative Societes will be eligible to get assistance for a period of three years. This will be way of sales generated during fairs, festivals, exhibitions, meals, expos and events approved by the Office of the Development Commissioner (Handloom).

Mr Chidambaram said with assistance under the Scheme, the handloom agencies will be in a position to sell their unsold handloom cloth faster by giving rebate to the consumers.

The Scheme will be implemented through the State Governments.

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