How to go about it: Implementing Agency

   The Centers would be run and managed preferably by existing Primary Handloom Weavers Cooperative Societies. Such Societies should have made profit in the previous three years or profit in most of the previous years with accumulated profit. Such society should should have an elected management . A new society may be considered only if it is backed by a good Non-Governmental Organization (NGO) which is eligible for assistance from Council for Advancement of People's Action and Rural Technology (CAPART). Each society must have at least 250 looms and its area of operation should be ordinarily in a radius of 5 Kms. However, for hilly and other sparsely populated areas , the stipulation of 5 Kms radius may be relaxed.

Credit

   Primary societies would prepare loan proposals as per the guidelines of NABARD. For the purpose of assessing anticipated sales, the production should be estimated on the basis of 300 working days and 200 looms. State Governments will provide guarantee for availing re-finance from NABARD. Loan requirement for each Handloom Development Center would be about Rs.17 lakhs and for Quality Dyeing Unit Rs.3.565 lakhs. 

Supply of Inputs

   The Primary Societies will procure inputs with the help of margin money and the loan. Besides they will be given 5% subsidy for one year as a grant on the value of yarn, dyes and chemicals procured by them. Such inputs must be bought only from spinning mills, manufacturers of dyes and chemicals, State Handloom Apex Societies and State Handloom Development Corporations