VIRUDHUNAGAR MEGA HANDLOOM CLUSTER
Untitled Document

About Virudhunagar Mega Handloom Cluster (VMHC):

The GOI have sanctioned the Scheme of Virudhunagar Mega Handloom cluster  under Comprehensive Handloom Cluster Development Scheme during the year 2009-10, at a total financial out lay of Rs.87.68 crores, to be implemented by Co-optex for a period of 5 years.  Of which, Central Assistance is Rs.70.00 Crores as grant-in-aid by GOI and the balance amount has to be shared by the State Government and the beneficiaries / IA.
 Broad objectives of the scheme:
a) To empower handloom weavers and build their capacity to enhance competitiveness of their products in the domestic as well as global market in a sustainable and reliant manner;
b) To facilitate collectivization of handloom weavers and service providers.
 c) To give a proper thrust to design development through creation of design studio and involvement of professional designers,
d) To involve professional marketing chains and marketers to meet the changing demands of the market,
e) To provide requisite support/linkages in terms of adequate core & technical infrastructure, technology, product diversification, design development, raw material banks, marketing & promotion, credit, social security and other components that are vital for sustainability of weavers engaged in the handloom sector;
g) To facilitate convergence of schematic assistance and support services from various schemes and programmes for betterment of the livelihood, quality of life of handloom wavers and increase income level of the weavers.

Cluster Coverage:

Around 29,000 Handloom Weavers in the sub clusters of Aruppukottai, Srivilliputthur, Sundarapandiam, Rajapalayam, Paramakudi, Emaneswaram, Karaikudi, Sellur, Nilaiyur, Sankarankoil, Veeravanallur, Kadaiyanallur, Ettayapuram and Sawyerpuram in 6 districts are benefited under this project.

Sl.No.

District

No. of Weavers

%

1

Virudhunagar

9,133

31%

2

Madurai

9,642

34%

3

Ramanathapuram

4,839

17%

4

Thirunelveli

3,855

13%

5

Tuticorin

903

3%

6

Sivagangai

678

2%

 

Total

29,050

 

Project Cost (As per original sanctioned DPR):

 (Rs. in Crores)
Sl.No.

Facilities

GOI Share

State Govt. / Beneficiary Share

Total Cost

1

Technological Upgradation

39.98

8.04

48.02

2

Common Facility Centres

10.55

3.61

14.16

3

Dye House with ETP facilities

7.14

3.81

10.95

4

Mkting/Training/Designing facilities

11.89

2.22

14.11

5

Fee to CMTA (Co-optex)

0.44

-

0.44

 

Total

70.00

17.68

87.68

           
Revision of DPR:

In the mean-while, Certain provisions of the Comprehensive Handloom Development Scheme (CHCDS) have been revised on the pattern of the revised norms of National Handloom Development Programme (NHDP) during the 12th Plan.
Accordingly, as approved in the Project Approval & Monitoring committee (PAMC) Meeting held on 21.09.2015 at New Delhi, the original DPR of VMHC is revised by disseminating the amended provisions of the CHCDS and introducing the new interventions like Market Dev. Interventions & Marketing Complexes.
The total project cost was reduced to Rs.79.21 Cr. while the GoI fund share remains same at Rs.70.00 Cr.  The CMTA role is allocated to the TNHDC Ltd., in order to avoid conflict of Interest.
The revised interventions wise project cost is as follows.:

Project Cost (As per revised DPR):

(Rs. in Lakhs)
Sl.No.

Facilities

GOI Share

State Govt. / Beneficiary Share

Total Cost

1

Technological Upgradation

2182.186

493.454

2675.640

2

Market Dev. Interventions

1536.250

275.000

1811.250

3

Block Level CFC

2340.000

 

 

4

Block Level Dye houses with ETP

250.000

 

 

5

Marketing Complexes

647.770

152.590

800.360

6

Fee to CMTA (Co-optex)

43.620

-

43.620

 

Total

6999.826

921.044

7920.870

Implementing Agencies (As per revised DPR):

            In the revised DPR, the implementation of some of the interventions especially Block Level Infrastructures were assigned  to other Implementing Agencies like Primary WCS & TNHDC.  The detailed intervention wise Implementing Agency details are as follows.
Detailed Project Cost with respective IA:
(Rs. in lakh)


Intervention

Total Cost Revised

GoI Share

SPV/State/
bene. Share

Implementing Agency

Technology Up-gradation

2675.640

2182.186

493.454

Co-optex

Design Development (2)

50.000

40.000

10.000

Design Development (1) At Paramakudi

25.000

20.000

5.000

PWCS

Market Development

1070.000

856.000

214.00

Co-optex

Exports

75.000

60.000

15.00

Advt. & Publicity

155.000

124.000

31.00

Linking Handloom with Fashion

140.000

140.000

-

Handloom Village

183.000

183.000

-

PWCS

Handloom Census

27.000

27.000

 -

TNHDC

Admin. Fee

86.25

86.25

-

18 Block Level CFCs
@1.30 Cr each

2340.00

2340.00

 -

PWCS

05 Dye house with ETP Facility (Dist. Level)

250.00

250.00

 

TCTP Mill

2 Marketing Complexes

800.360

647.770

152.59

Co-optex

Fee to CMTA

43.620

43.620

 

Grand Total

7920.87

6999.826

921.044

Interventions to be implemented by Co-optex as per revised DPR:

The details of the revised Interventions to be implemented by Co-optex as IA as per revised DPR are as follows:

 

Intervention

Total Cost Revised

GoI

IA / State

A

Technology Up-gradation (completed)

2675.640

2182.186

493.454

B1

Setting up of Design Studio (2)

50.00

40.000

10.00

B2

Modernisation of Co-optex Showrooms, Exhibitions, Exposure Visit and Dev. of Organic Cotton  

1070.000

856.000

214.00

B3

Exports

75.000

60.000

15.00

B4

Advertisement & Publicity

155.000

124.000

31.00

B5

Linking Handlooms with Fashion utilizing
NIFT / NID.

140.000

140.000

 -

B1 to B5

Total (B1 to B5)

1490.00

1220.00

270.00

 

Admin Fee for implementing B1 to B5

74.50

74.50

-

C

Marketing Complex (2)

800.360

647.770

152.59

 

Grand Total

5040.500

4124.456

916.044

  1. Implementation of Tech. Upgradation Intervention:

Sanction of funds for Tech. Upgradation:

            The fund for implementation of Technological Upgradation Interventions was released in 3 phases as detailed below:

Phase

Sanction letter

GoI

State

1

DCH Lr. 5/8/2010/DCH/MHCDS/Virudhunagar (Cooptex) Dt. 25.02.11

599.720

HHTK GO(Ms) No.85 Dt. 22.07.11

73.220

2

DCH Lr. 5/8/2010/DCH/MHCDS/Virudhunagar (Cooptex) Dt. 28.03.12 & 31.03.12

999.540

HHTK GO(Ms) No.206 Dt. 01.10.12

123.70

3

DCH Lr. 5/8/2010-DCH/MHCDS/Virudhunagar (Cooptex) Dt. 27.03.13

1199.460

HHTK GO(Ms) No.65 Dt. 28.03.14

111.245

Total

2798.720

308.165

Utilisation of TU Fund:

Eventhough GoI & GoTN have released the sum of Rs.2798.720 Lakhs & Rs.308.165 Lakhs respectively in 3 phases for implementation of Tech. Upgradation interventions as per original DPR, an amount of Rs.2182.186 Lakhs & 246.727 Lakhs respectively only utilized for the Tech. Upgradation intervention and balance was kept unutilized due to the project cost revision in the Revised DPR approved.

SI.No

Details of Fund

GOI

State

Beneficiary

Total

1

Sanctioned (a)

3,998.190

401.765

401.765

4,801.740

2

Released (b)

2,798.720

308.165

**246.728 (collected)

3,353.621

3

Utilised (c)

2,182.186

246.727

246.728

2,675.640

4

Unspent balance (b-c)     

616.534

61.438

677.972

The above unspent balance of Rs.677.972 is being  utilized for Market Dev. Interventions, as per DCH office sanction orders issued then and there.

Physical & Financial progress for TU interventions:

            The fund sanctioned for Tech. Upgradation as per revised DPR was 100% utilized and necessary UC has been given to the Govt.  The interventions wise Physical & Financial progress w.r.t. the implementation of Tech. Upgradation intervention is as follows:

SI.No

Items approved

Physical (Units)

Financial (Rs. In lakh)

Target

Achievement

Target

Achievement

1

Pedal Loom

5,250

5,250

1,805.71

1,805.71

2

Electrical Pirn Wdg M/c

5,638

5,638

73.72

73.72

3

120  HK Jacquard Box

5,229

5,229

129.74

129.74

4

Motorised Jacquard Lifting M/c

72

72

10.20

10.20

5

Healds and Reeds (Sets)

7,156

7,156

134.10

134.10

6

Dobby

70

70

1.38

1.37

7

Battery Linked Inverter Lighting Unit

11,081

11,081

270.22

270.22

Sub Total

34,496

34,496

2,425.07

2,425.06

8

Interest subvention

 

168.37

168.37

9

Admin Expenses

 

40.00

40.00

10

Technical Fee

 

42.20

42.20

Total

34,496

34,496

2,675.64

2,675.63

District Wise Looms & Accessories Issue Details:

SI.No

Name of the Component

District

Total

Virudhu Nagar

Madurai

Tirunel Veli

Ramnad

Tuti korin

Siva gangai

Qty.

Value in Lakhs

1

Pedal Loom  

4253

39

875

 

83

 

5250

1805.71

2

Pirn Winding M/c.**

2921

681

262

1697

77

 

5637

73.70

3

Jacquard Box

275

431

155

4368

 

 

5229

129.74

4

Dobby

20

 

 

 

 

50

70

1.37

5

Jacq. Lifting M/c

 

 

 

72

 

 

72

10.20

6

Healds & Reeds

5057

597

915

473

106

8

7156

134.10

7

Inverter Lighting Unit

5405

1024

1256

3204

192

 

11081

270.22

 

Total

17931

2772

3463

9814

458

58

34495

 

 

 Beneficiaries

6225

1276

1885

3656

257

57

13356

 

 

 TU Value in Rs.Lakhs

1728.19

64.65

350.99

244.60

35.47

1.14

 

2425.04

 

Add: Interest Subvention issued

63.48

6.14

7.62

85.79

4.08

1.25

 

168.36

 

 Total

1791.67

70.79

358.61

330.39

39.55

2.39

 

2593.40

** One Elec. Pirn Winding M/c purchased is lying as stock at VMHC office.

Adjustment of Unutilized Balance TU fund:

The unspent TU Surplus fund was adjusted for the implementation of the Market Dev. Interventions & Marketing complex interventions  as per the sanction orders issued by the O/o DCH , New Delhi as detailed below:

SI.No.

Sanction order

Details of sanction

GoI Fund

GoTN Fund

1

DCH sanction order No. 5/28/2016-DCH/CHCDS /Cluster Dt. 05.10.16

First spell fund for Market Dev. Interventions

294.912

36.864

2

DCH sanction order No. 5/28/2016-DCH/CHCDS /Cluster Dt. 22.02.17

Modernisation of 9 Showrooms

61.270

12.254

3

DCH sanction order No. 5/28/2016-DCH/CHCDS /Cluster Dt. 23.06.16

1st  Spell fund for Marketing Complex at Tirunelveli

65.000

 

4

DCH sanction order No. 5/29/2016-DCH/CHCDS /Cluster Dt. 27.02.17

Transfer of fund for TMHC ‚Äď Setting of Souvenir shop

52.000

 

5

DCH sanction order No. 5/36/2016-DCH/CHCDS /Cluster Dt. 10.03.17

1st  Spell fund for Marketing Complex at Madurai

65.000

 

 

 

Total

538.182

49.118

SI.No.

Details of Fund

GOI

State

Total

1

Unspent TU surplus fund

616.534

61.438

677.972

2

Adjusted so far

538.182

49.118

587.300

Balance TU surplus fund     

78.352

12.320

90.672

  1. Implementation of Market Dev.  Interventions:

  1. 1st spell fund Sanction & Release:

 (Rs. in Lakh)


Sl.No.

Interventions

Total Project sanction

Fund Release

GoI share

GoTn & IA share

1

Design Development

 

 

 

 

Setting  of Design Studio [ 2 ]

50.000

20.000

16.000

4.000

Sub total

50.000

20.000

16.000

4.000

2

Market Development

 

 

 

 

a. BSM  and Exhibitions  (@ Rs.4.00 lakh each)  [ 40 ]

160.000

 

 

 

b. Exposure visit (@ Rs.0.10 Lakhs/ Weaver) [200 wvrs]

20.000

 

 

 

c. Modernization of  Sales Show rooms  [ 6 ]

300.000

 

 

 

d. Development of Organic Cotton, Azo free Products.

140.000

 

 

 

Sub total

620.000

248.000

198.400

49.600

3

Exports

 

 

 

 

Particiate in Intl.Exhibitions [ 5]

75.000

  30.000

24.000

6.000

Sub total

75.000

30.000

24.000

6.000

4

Advt & Publicity

 

 

 

 

a. Cluster Video Documentary  Film        [ 2 ]

25.000

 

 

 

b. Printing of  leaflets, brochures & Documentation

40.000

 

 

 

c. Publicity through print / Electronic Media

50.000

 

 

 

d. Hoardings & Banners for VMHC  Handloom Product Promotion

40.000

 

 

 

Sub Total

155.000

62.000

49.600

12.400

Total (B1 to B4)

 

360.000

 

 

Admin. Fee @ 2.4%

21.600

8.640

6.912

1.728

Grand Total

921.600

368.640

294.912

73.728

Show Rooms to the  Modernized under 1st spell:

SI.No.

Name of the showroom

Sanction

Release

1

Madurai Angayarkanni

58.00

 

2

Tuticorin Muthunagar

30.00

 

3

Ramanathapuram

16.65

 

4

Tenkasi

12.00

 

5

Thiruppathur

12.00

 

6

Srivilliputhur

15.00

 

 

 

143.65

120.00

 

  1. 2nd  spell fund Sanction & Release: ( for modernization of 9 showrooms)

 (Rs. in Lakh)

Sl.No.

Name of the showroom

Sanction

Release
Total /GoI

1

Trichy Pothigai

43.35

17.34  /  8.67

2

Thanjavur Kundhavai

23.00

9.20  /  4.60

3

Nagapattinam

25.00

10.00  /  5.00

4

Kodaikanal

25.00

10.00  /  5.00

5

Salem Tangam Pattu

50.00

20.00 / 10.00

6

Coimbatore Marutham

50.00

20.00 / 10.00

7

Vellore Deepam

20.00

8.00  /  4.00

8

Chennai sir PT

35.00

14.00  /  7.00

9

Tambaram

35.00

14.00  /  7.00

 

Total

306.350

122.54 / 61.27

 

Revision of 1st spell Mar. Dev. Intervention sanction:

            In the meantime, O/o DCH, vide their sanction order  No. 5 /28 / 2016-DCH / CHCDS / Cluster Dt. 16.04.2017, have once again revised the first spell fund sanction with changes in the fund sharing pattern as detailed below.


Sl.No.

Interventions

Project Cost

GoI Share

GoTN / IA share

1st spell 1st Instal ment adjust

1st spell 2nd  installment

adjust

release

1

Design Development

 

 

 

 

 

 

a. Setting up of Design Studio  [ 2 ]

50.000

20.000

30.000

 

 

 

Sub total

50.000

20.000

30.000

11.000

4.000

3.000

2

Market Development

 

 

 

 

 

 

a. BSM  and Exhibitions  (@ Rs.4.00 lakh each)  [ 40 ]

160.000

94.780

 

 

 

 

b. Exposure visit (@ Rs.0.10 Lakhs/ Weaver) [200 wvrs]

20.000

16.000

 

 

 

 

c. Modernization of  Sales Show rooms  [ 6 ]

300.000

209.960

 

 

 

 

d. Development of Organic Cotton, Azo free Products.

140.000

56.000

 

 

 

 

Sub total

620.000

376.740

243.260

150.69

92.301

97.069

3

Exports

 

 

 

 

 

 

Particiate in Intl.Exhibitions [ 5]

¬† 75.000 

47.000

28.000

 

 

 

Sub total

75.000

47.000

28.000

18.800

11.515

12.256

4

Advt & Publicity

 

 

 

 

 

 

a. Cluster Video Documentary  Film        [ 2 ]

25.000

20.000

5.000

 

 

 

b. Printing of  leaflets, brochures & Documentation

40.000

32.000

8.000

 

 

 

c. Publicity through print / Electronic Media

50.000

40.000

10.000

 

 

 

d. Hoardings & Banners

40.000

32.000

8.000

 

 

 

Sub Total

155.000

124.000

31.000

48.050

30.380

34.170

Total (B1 to B4)

900.000

567.740

332.260

228.540

138.196

146.495

Admin. Fee @ 2.4%

21.600

13.630

7.970

4.000

2.528

3.461

Grand Total

921.600

581.370

340.230

232.540

140.724

149.956

           
Since this revised fund  sanction  along with changes in fund sharing pattern would result in heavy financial burden to the IA w.r.t. the implementation of  most of the Market Dev. Interventions, the same has been represented to the O/o DCH, New Delhi.

    Setting up of Marketing Complex  Fund: 

  1. Under the scheme, It is proposed to construct two Marketing Complexes each one at Madurai & Tirunelveli at the below designated places at a estimated cost of Rs.400.16 Lakhs for each.

  2. Land acquired on lease for 33 years at Sellur, Madurai

  3. Own land at  Cooptex RO, S.N. High Road, Tirunelveli.

 


Sl.No.

Interventions

Qty.

Total

GOI

State

Ben./
SPV

1.

Marketing Complex

2

800.360

647.770

76.295

76.295

 

Total

2

800.360

647.770

76.295

76.295

Sanction of funds for Marketing Complex:


Sl.No.

Sanction order

Details of sanction

GoI Fund**

GoTN Fund

1

DCH sanction order No. 5/36/2016-DCH/CHCDS /Cluster Dt. 23.12.16

1st spell for Tirunelveli Marketing complex

65.000

 

2

HHTK GO(Ms) No.7 Dt. 22.03.17

 

 

7.656

3

DCH sanction order No. 5/36/2016-DCH/CHCDS /Cluster Dt. 10.03.17

1st spell for Madurai Marketing complex

65.000

 

4

HHTK GO(Ms) No.77Dt.28.03.17

 

 

7.656

 

 

Total

130.000

15.312

** By Adjustment from TU Surplus fund.

CLUSTER MANAGEMENT & TECHNICAL AGENCY (CMTA)

The nature of the cluster project warrants proactive capabilities in terms of  technical, managerial, financial, infrastructure and capacity building expertise that are required to design and execute cluster oriented interventions. 

To  proactively work with the cluster stakeholders and the SPVs in implementation of the interventions, The Tamilnadu Handloom Weavers Cooperative Society Ltd., (Cooptex) has been appointed as CLUSTER MANAGEMENT & TECHNICAL AGENCY (CMTA) by the Government of India on 18.02.2010 by competitive bidding. In this regard, a Memorandum of Understanding has been entered between Co-optex and the Development Commissioner (Handlooms), Government of India on 17.03.2010. 

While revising the DPR   on the revision of  certain provisions of the Comprehensive Handloom Development Scheme (CHCDS), on request of Cooptex,  TNHDC ( Tamilnadu Handloom Development Corporation) have been  appointed as CMTA  for the implementation of Virudhunagar Mega Handloom Cluster w.e.f  21.09.2015  as per the decisions taken during meeting at the Office of Development Commissioner for Handlooms, New Delhi on    21.09.2015