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Yarn Bank Scheme
Yarn Bank Scheme

Yarn Bank Scheme


  • Guideline - The objective of the scheme should be as per the para1.1 of the guideline
  • Financial Assistance – After the objective of the scheme the financial Assistance should come and the wording should be as per the Para 3.0 of the guideline.
  • Eligible criteria - Eligible criteria should be as per para 4 a, b, c, of the guideline
  • Pre –requisite – The prerequisite conditions as per para 5 (a) to (v ) including sub clause should appear on the screen.

File return

  • Monthly statistical Return (MSR – B) and Annual Statistical Return (ASR) should be linked from the website www.txcindia.gov.in under the subheading Textile statistical Returns.


  • To provide interest free corpus fund to Special Purpose Vehicle (SPV) / Consortium to enable them to purchase yarn at wholesale rate and give the yarn at reasonable price to the small weavers.
  • To avoid middle man/ local supplier’s brokerage charge on sales of yarn.

Eligibility Beneficiaries

  • Registered Co-operative Society.
  • Trust.
  • Company set-up under the Companies Act, 1956 as amended.
  • Firm set-up under the Limited Liability Partnership Act, 2008 as amended.


  • Minimum 11 members required to form Special Purpose Vehicle (SPV).
  • The Members of SPV should be Powerloom Weavers, Master Weavers, Co-operative Societies, Private Entrepreneurs, NGO’s working for Powerloom Sector.
  • SPV has to provide Bank Guarantee to the extent of 25% of Govt. of India share.
  • SPV shall arrange their own fund equal to Government contribution.
  • SPV shall rotate the corpus fund including their contribution at least 4 - 5 times in a year.

Financial Assistance

  • Government shall provide interest free corpus fund of maximum Rs 200 Lakh per yarn bank to SPV/Consortium.
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