NABARD is expected to
get auditors from State Governments and if they are not available, then
NABARD is required to identify Chartered Accountants (CAs) for conducting
special audit.
to train the auditors selected.
to conduct special audit (as per the relaxed norms of viability of cooperative
societies) in order to assess amount for loan waiver for each society.
The assessed recapitalization amount is required to be approved/recommended by
SIMRC.
Then NABARD is expected to transfer funds accordingly which will amount to loan
waiver of the society.
Chairman, NABARD stated that Financial Package for Handloom Sector is very
important package for the Handloom Sector, which is very important in terms of employment
generation next only to agriculture. He emphasized that scheme is not an open ended one.
He expressed the concern that many States have not signed MoU inspite of the fact that there
is clear provision in the Package. He outlined the roadmap for the speedy implementation of
the Package which include, (i) in SLBC meeting review of Loan Waiver scheme should form
one of the agenda; (ii) Chief Secretarys representative must attend SLBC meetings. He
wondered, if banks can issue Kisan Credit Cards (KCCs), then why Weaver Credit Cards
(WCCs) had not been issued.
Secretary (Textiles) directed
- States must sign the MoU and make the budget provision latest by 31.8.2012.
- States must send Special audit reports to NABARD by 30.9.2012
Secretary stressed that failing the above, it will be presumed that State is not
interested in availing benefits of the package and accordingly GoI will strike that state
off the beneficiary list and work out its financials accordingly.
Sh.P.V. S. SuryaKumar, CGM, NABARD, Delhi anchored the agenda. The agendawise decisions taken are indicated below:
Agenda
Decisions taken
th
Confirmation of the The minutes of the 4 NIMRC were confirmed after deleting
minutes of the last
points 3(b) and 3(c) i.e.
meeting
3(b) Release of recapitalization amounts including waiver of
loans to societies.
3(c) Release of individual waiver amounts.
Signing of Memorandum of Understanding (MoU) is a must for
the release of funds under the package
Action Taken Report
The ATR was approved and Secretary, Textiles
reiterated that the special audit should be undertaken based
on the relaxed guidelines of potentially viable societies issued
by GoI vide their order No. 6/2/99/DCH/2011-12/DHDS dated
11 June 2012 as decided in 4th meeting of NIMRC and as
approved by Department of Expenditure. It was clarified that the
condition for rotation of the working capital has been relaxed
to the extent that the society may not have been sanctioned
cash credit limit by the bank for the past two years. If the
society has not been sanctioned such credit limit by the bank
for past two years and it is operating from their own funds and
production and sales are routed through some other bank,
then that society will also be covered under the package.
It is desirable that all the functional societies be considered.
The States must provide the audited accounts of all functional
societies to NABARD. Then, NABARD should identify viable
and potential viable societies out of them, on the basis of their
records and documents and as per the definition of viable and
2
2.
Insistence
fresh loans
on
3.
Inclusion
private banks
of
4.
Grievance
Redressal
Mechanism
Societies
for
5.
Treatment of loan
accounts where
amounts
have
been
repaid
subsequently
6.
Prior
commitment of
Govt. of India
and State Govt.
1. Relaxation in norm
for positive net
worth.
2. Negative networth
of societies and
NPA provisioning
by bank
3. Chairing of DMRC
and
4. Inclusion of Apex
Society merged to
State
Handloom
Dev. Corporation
after cutoff dateTripura.
NIMRC observed that progress is slow and only a sum of Rs.19.14 crore has been vetted
by various SIMRCs benefiting 10520 individual weavers.
ANNEXURE-I
State wise Claims
Rs. in lakh
State
Society recapitalization
Individual
waiver
Total
Apex
Primary
Uttarakhand
19.12
3.71
22.83
UP
640.54
640.54
Karnataka
50.22
50.22
Kerala
782.00
0.54
782.54
Odisha
787.00
787.00
Gujarat
211.00
211.00
Tamil Nadu
2607.00
2607.00
Assam
262.48
262.48
Andhra
Pradesh
Grand total
7800.00
7800.00
1744.49
13163.61
10618.00 801.12
ANNEXURE-II
Progress under the Package
1
No. of states given letter of
Commitment
2
No. of states issued
Administrative order
3
10
S.
N
Name of
State
Andhra
1 Pradesh
Nos. of
viable/
Potentially
viable
societies
identified
Ape
x
PWC
S
519
NA
Special Audit
complete as on
30.07.12
Apex
PWCS
in
progress
218
in
progre
ss
Assam
2
1
48
4 Chhattisgarh
16
Himachal
5 Pradesh
125
By
31.07.12
By
15.8.12
By
31.8.12
218
318
519
257
1
Apex,20
PWCS
Bihar
3
-
125
2
272
125
yet to start
Madhya
8 Pradesh
9 Maharashtra
234
under
liquid
ation
123
in
progress
46
46
78
16
11 Mizoram
69
69
70
77
in
progre
ss
10
12
14 Tripura
25
272
150
200
234
16
Orissa
690
2
Apex,10
0 PWCS
50
PWCS
123
10 Meghalaya
13 Tamil Nadu
1 Apex
,48
PWCS
16
Karnataka
7 Kerala
By
30.9.12
485
yet to
start
40
77
575
690
25
11
Uttar
15 Pradesh
16 West Bengal
415
in
progre
ss
255
yet to
start
202
unde
r
liqui
dati
on
318
150
16
22 Manipur
1377
23 Nagaland
NA
NA
Haryana
19
20 J & K
100, 9
Apex
300
415
100
150
255
150
202
yet to
start
17 Delhi
18 Gujarat
22
50
50
yet to
start
1 Apex ,
16
PWCS
Jharkhand
21
24 Pondicherry
25 Punjab
0
248
1
195
Rajasthan
100
100
677
1377
Yet to
start
in
progress
26
in
progre
ss
95
8
27 Sikkim
28 Uttarakhand
100
Type of Handloom
Weaver Borrowers
(*)
No.
of
A/c
Overdues as on
Out of Colmn 6,
Remaining Ove
31-03-2010 (*)
PL
Intt.
Total
Govt. of India
Overdue borne by
the Bank
Overdue borne by
the Borrowers
PL
12
Intt.
Total
PL.
Intt.
Total
PL
Intt.
Total
10
11
12
13
14
a Individual weavers
b Handloom who are
member of Self Help
Group
c
d Master Weaver
Total
Note: Share of GoI and the State Govt is 80: 20 ( 90:10 in respect of Spl. Category states viz Jharkhand, Chhatisgarh,
Uttarakhand, Himachal
Pradesh, J&K and states in NER ) and the aggregate in Colmn 15 & 18 should not exceed Rs 50,000/- per a/c.
$ In respect of Sch. Commercial Banks, the state wise break up of claim is enclosed for seeking
claims separately from the respective State Government.
CERTIFICATE
1. We undertake that the claim has been made in accordance of the scheme notified by the
Government of India vide notificated No 6/2/99-DCH/FP/DHDS dated 28.11 2011. Further, we have
obtained necessary undertaking from the existing borrowers that they will undertake handloom as an
economic activity by availing fresh credit from us once their overdue amount is written off.
2. We also certify that the record of each borrower covered under the scheme has been maintained by
the Bank and the amount has been arrived at by aggregation of the above data received from branches/
constituents and the bank will refund any amount to the GoI or the State Government, if found at a
later stage that it has been wrongly claimed due any reason whatsoever.
Signature with date & Seal of the Competent Authority of the Bank
CERTIFICATE FROM AUDITORS
Certified that the claims lodged by the Bank are in conformity with the scheme notified by the Govt.
of India vide their notification No. dated and are true to the best of my knowledge and belief
based on the records made available to me by the Bank. The records made available to me were also
found to be satisfactory.
15
Annexure V
Model Operating Instructions- Cooperative Banks
Operational Instructions for Settlement of Claims from Lending Institutions under the
Handloom Package of the Govt. of India (GoI)
The operational instructions for the banks for seeking claims under the Revival, Reform and
Restructuring Package for the Handloom Sector of the Ministry of Textiles, Govt. Of India in
terms of its Office Memorandum No 6/2/99 -DCH/FP/DHDS dated 28.November 2011 are as
under:
A. Settlement of the recapitalisation claims of the weavers society
The branch Manager is expected to undertake the following activities:
a. Make a list of all societies which have been given loans (Term loan, CC Limit and
other loans) from the Branch.
b. Prepare a docket sheet indicating the current position of Share Money invested by
Weaver Society in DCCB, Saving Bank Accounts ,Fixed Deposit/term deposit
Account and Loan Accounts (docket sheet is indicated in annexure I).
c. Indicate Society wise amount receivable by bank as per the conditions of the Package
d. Branch manager must indicate and confirm that the 75% of interest as on the date of
loan becoming NPA,penal int.inspection charges etc.has been waived by the bank and
has been credited to the loan account of the society (written off)
e. Issue Balance confirmation certificate and assist in the special audit of the Weavers
Societies attached to the branch.
f. Indicate the status of fresh loans issued to the Society as it is mandatory as per the
instructions contained in the GoI Package guidelines.
g. Once the recapitalisation assistance is received , the branch must indicate/confirm that
the balance amount of recapitalisation assistance after adjusting the bank dues have
been duly credited in the current/saving Bank accounts of the Society.
B. Individual Waiver Scheme
1.
2.
3.
4.
5.
The ultimate responsibility of implementing the scheme successfully rests with the
lending institutions.
Consolidated claims may be submitted by the Banks to NABARD strictly in Proforma I
(encl) within 120 days of notification of the scheme. They will be settled by NABARD
on a one time basis subject to fulfilment of terms & condition prescribed in terms of the
Scheme Annexure III of the GoI Office Memorandum No 6/2/99 -DCH/FP/DHDS dated
28.November 2011 .
Claims once settled will not be reopened under normal circumstances. However, it may
be reexamined as a very special case and the right to re-examine will rest with NABARD.
It is envisaged that the share of waiver assistance of the GoI and the State Government
will be released only upon the receipt of an undertaking from the concerned lending
institutions that the identified handloom weaver intends to carry out the handloom activity
in future by availing fresh credit support from the lending institutions. Lending
institutions may devise their own suitable proforma for the same.
Lending Institutions are expected to assess the claims in their branches strictly in terms of
the GoI Scheme. They are suggested to get the same audited by the branch auditors/
internal/ concurrent auditors before being forwarded to NABARD. Measures like
14
6.
7.
8.
9.
10.
11.
12.
4.
5.
6.
7.
One time annual claims will be entertained directly from lending institutions by
NABARD, within 120 days of close of the financial year to which it relates.
One consolidated claim on an annual basis for the lendings made during each of the threeyear may be preferred (strictly in the prescribed Proforma -II) by the lending institutions.
All lendings made by the Lending institutions (Sch. Commercial Banks, RRBs,
State/District Central Cooperative Banks) for working capital requirements and marketing
purposes, if any, excluding capital cost in the handloom sector to Apex & Primary
Handloom Weavers Societies; Individual weavers, weaver member of defunct/ non
working weaver societies, Mutually Aided Coop. Societies, Societies outside the
cooperative fold, Producer Group Companies; JLGs, SHGs/ HWG, Master Weavers etc
will be eligible to receive 3% p.a. interest subvention support from the GoI.
Advances to State Handloom Development Corporations (SHDCs) will not be eligible
for interest subvention.
Lending Institutions are expected to assess branch-wise claims strictly in terms of the GoI
Scheme. They are suggested to get the same audited by the branch auditors/ internal/
concurrent auditors before being forwarded to NABARD.
It will be obligatory for the bank to maintain borrower-wise detail records/ data against
which the claims are preferred. GoI/ NABARD has a right to conduct audit of the records
, if required, in future.
The cost of certification by Statutory Auditors/ Charted Accountant, if any, will be borne
by the lending institution.
15
8.
NABARD will settle the claims on a case to case basis. NABARD will release the share
of GoI only upon receipt of the funds from them.
Annexure I
Proforma of Balance Confirmation Certificate of the Society (as on 31 March 2010)- from the Bank
(Amount Rs.)
S.N
Particulars
Balance Outstanding
Amount
Deposit Accounts
Amount
Savings
Current
Term (Fixed) Deposits
* including accrued but not due as on 31 March 2010.
3 Details of loan status certificate
Sl. No.Type
Limit sanctioned
of loan
Year
1
Amt. of
insurance
premia /
inspection
charges / penal
interest
debited to
Renewal in
2009 10
(Yes / No)
Amount
(Rs.)
2
Admissibl
e Back
ended
subsidy
pending
adjustme
nt
Amount
outstanding as
on 31.03.2010 as
principal
If yes, total
If not renewed credits to a/c in
credit in a/c the yr. of sanction / renewal
during 2009 10
Year
Amount (Rs.)
Of which
overdue as on
31.03.2010
Date of account
becoming NPA
Interest
receiva
ble as
on th
date of
NPA
Total
interest
receiva
ble
includi
ng
penal
16
borrower and
included under
overdue
principal
8
Sl. No.
interest
as on
31.03.2
010
9
10
11
12
13
14
Princip
al amt.
Outstan
ding as
on
31.03.2
010
Of the
outstan
ding
under 5
overdue
loans
Amt. of
insuran
ce
premia
/
inspecti
on
charges
/ penal
interest
debited
to
borrow
er and
include
d under
overdue
princip
al
Admissi
ble
Back
ended
subsidy
pending
adjust
ment
Date of
account
becomi
ng NPA
Overdu
e
interest
as on th
date of
NPA
Total
interest
receiva
ble
includi
ng
penal
interest
as on
31.03.2
010
5A
10
17