Last Updated on August 16, 2024 by Rojgar Buddy Team
The “40% Subsidy on Hank Yarn, Dyes & Chemicals Scheme” is a subsidy initiative by the Department of Handlooms & Textiles, Government of Andhra Pradesh. This scheme has been operational since April 29, 2011.
The assistance provided under this scheme is entirely in the form of a grant from the State Government. The subsidy is specifically available for purchases or procurements made from the National Handloom Development Corporation (NHDC) and the Andhra Pradesh State Handloom Weavers Cooperative Society (APCO).
The sanctioned subsidy amount will be directly credited to the bank accounts of the members of the concerned primary weavers’ cooperative societies.
40% Subsidy On Hank Yarn Dyes & Chemicals Scheme Andhra Pradesh: Benefits
Subsidy on Purchases/Procurements
40% subsidy on the purchases/procurements of Hank Yarn, Dyes, and Chemicals.
Purchases/procurements must be made from NHDC (National Handloom Development Corporation) and APCO.
Distribution of 75% Amount
75% of the subsidy amount will be credited directly to the members’ bank accounts.
The amount is credited as a production bonus.
The bonus is based on the wages earned by the members.
Utilization of Remaining 25% Amount
25% of the subsidy amount may be utilized by the societies.
Possible uses include giving rebates on sales.
It can also be used for any other production-related purposes.
40% Subsidy On Hank Yarn Dyes & Chemicals Scheme Andhra Pradesh: Eligibility
Subsidy Availability:
Only applicable for yarn purchased from:
National Handloom Development Corporation (NHDC)
NHDC-sanctioned yarn depots
APCO (Andhra Pradesh State Handloom Weavers Cooperative Society)
Yarn must be for self-consumption by Handloom Weaver Cooperative Societies.
Purpose: To provide work to weaver members.
Eligible Yarn:
Subsidy is allowed only on Hank yarn.
Hank yarn must be purchased from APCO, NHDC, or their depots.
Yarn must be used for production on the societies’ account during the quarter.
Subsidy Claims:
Claims must be submitted by Weavers Cooperative Societies.
Submission must be in the prescribed proforma.
Claims are to be submitted on a quarterly basis.
Submission Deadlines:
Claims must be submitted within 15 days from the end of the respective quarter.
Complete claims must reach the Head Office within 30 days from the end of the quarter.
- Note 1:
- The Weavers Cooperative Societies shall NOT claim any subsidy on yarn, dyes, and chemicals purchased from private yarn dealers, mills, etc.
- Note 2:
- The Weavers Cooperative Societies should NOT claim any subsidy on yarn, dyes, and chemicals even if purchased from APCO or NHDC.
- This rule applies when these materials are not utilized for the production of cloth, specifically when the yarn is issued and sold to non-members.
Exclusions
- Subsidy Claims on Private Purchases:
- Weavers Cooperative Societies are not allowed to claim any subsidy on yarn, dyes, and chemicals purchased from private yarn dealers, mills, etc.
- Subsidy Claims on Non-Utilized Purchases:
- Weavers Cooperative Societies should not claim any subsidy on yarn, dyes, and chemicals even if purchased from APCO or NHDC if these materials are not used for producing cloth.
- Specifically, no subsidy can be claimed if the yarn is issued and sold to non-members instead of being used for production.
40% Subsidy On Hank Yarn Dyes & Chemicals Scheme Andhra Pradesh: Offline Application Process
Submission of Claims:
- Weavers Cooperative Societies must submit subsidy claims to the Assistant Director (H&T).
- Use the prescribed proforma.
- Submit claims quarterly within 15 days after the end of each quarter.
Scrutiny and Recommendation:
- The Assistant Director (H&T) will review the claims.
- Recommendations will be made within the next 15 days.
Submission to Head Office:
- All complete claims should reach the Head Office within 30 days after the end of the quarter.
Note:
- Late claims will face an appropriate cut.
Disbursal of the Subsidy
- The remaining 25% can be used by the societies for rebates on sales or other production-related purposes, effective from December 1, 2016.
Sanctioned Amount:
- 40% Yarn subsidy will be sanctioned.
Distribution of Subsidy:
- 75% of the sanctioned amount will be credited directly to the bank accounts of the members of the concerned primary Weavers Cooperative Societies as a production bonus, based on their wages.
- The remaining 25% can be used by the societies for rebates on sales or other production-related purposes, effective from December 1, 2016.
40% Subsidy On Hank Yarn Dyes & Chemicals Scheme Andhra Pradesh: Required Documents
- Certification that subsidy has been claimed only on the Hank Yarn and Dyes & Chemicals supplied to members and used for society’s production from purchases made from NHDC and APCO.
- Photocopies of invoices/receipts of hank yarn and Dyes & Chemicals bought from NHDC, its depots, and APCO.
- Abstract attested by the concerned Assistant Director (H&T).
- Registers, Stock Register, Cash Book, and other relevant records as required by the Assistant Director (H&T).
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