Co-operative Spinning Mills / Co-operative societies Section

There are 905 handlooms/powerlooms weavers Co-operative societies working in the State. 11 Co-operative Spinning mills are also working for the socio economic development of weavers. These co-operative societies are extending all facilities to weavers for undertaking weaving activities.

There are 11 Co-operative spinning mills in the State out of which 2 co-operative woollen spinning mills are working. Apart from this Karnataka State Co-operative spinning mills federation Ltd., Bangalore and Karnataka State Woollen handloom weavers non-khadi co-operative societies federation Ltd., Challakere, Chitradurga Dist., are also functioning in the State.

This spinning mills federation is entrusted with preparation of project reports for establishing new spinning mills, modernization of existing co-operative spinning mills as well as re-vitalization of sick spinning mills. It also prepares necessary statistics and estimates required for obtaining share capital assistance as well as term loans from the Govt./financial institution.

State Govt. has been implementing various developmental programs for weavers in the State. Details are as follows:

1. State Govt. has issued orders for waiver of Rs.50,000/- outstanding loans as on 30th June 2017, borrowed by the weavers for weaving purpose from various weavers Co-operative societies, Dist., Central Co-operative Banks, Urban Co-operative Banks and Non-agricultural Credit co-operative societies in State.

2. State Govt. is extending interest subsidy on the loans borrowed up to Rs.2.00 lakhs at 1% interest and Rs.2 to 5 lakhs at 3% interest, borrowed by weavers from weavers Co-operative societies, Dist., Central Co-operative Banks, Urban Co-operative Banks and Non-agricultural Credit co-operative societies and other Co-operative Banks in the State.

3. Loans provided to Co-operative spinning mills in the State were converted into equity by waiving of interest and penal interest on the loans borrowed by the mills.

4. As per the Hon�ble Chief MInister�s Budget announcement para 409 (7), for 2017-18 State Govt. vide its order No. Vakai 30 Jakai yo 2017, Bangalore Dated:03.06.2017, issued order for providing power subsidy @ Rs.2/- per unit on utilization of power by the Co-operative spinning mills in the State.

5. State Govt. has issued order vide Vakai 31 Jakai yo 2017, Bangalore Dated:24.05.2017 for grant of subsidy @ 5% on purchase of cotton from cotton corporation of India by the Co-operative spinning mills in the State, as per budget announcement para No.409(8).

Co-operative Societies Schemes