Yarn Bank Scheme (Download PDF)


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To avoid fluctuation in yarn price, government has launched a Yarn Bank Scheme as one of the component of PowerTex India with effect from 01.04. 2017 to 31.03. 2020. There is a 1 % increase in powerloom fabric production. The estimated production of powerloom fabric during 2018 - 19 (Apr-Oct) is 22781 Million Square Meters (MSM) which was 22539 MSM during the corresponding period of 2017 - 18.

Image Of Powertex India

Image Of Powertex India

Image Of Powertex India


  • 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 Power loom Weavers, Master Weavers, Co-operative Societies, Private Entrepreneurs, NGO’s working for Power loom 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.

PowerTex India

  • PowerTex India is a comprehensive scheme for power loom sector development.

  • The components of the scheme are:

  1. In-situ Upgradation of Plain Power looms.

  2. Group Workshed Scheme (GWS).

  3. Yarn Bank Scheme.

  4. Common Facility Centre (CFC).

  5. Pradhan Mantri Credit Scheme for Power loom Weavers

  6. Solar Energy Scheme for Power looms.

  7. Facilitation, IT, Awareness, Market Development and Publicity for Power loom Schemes.

  8. Tex Venture Capital Fund.

  9. Grant-in-Aid and Modernisation & Upgradation of Power loom Service Centres (PSCs).

  • The PowerTex India is an integrated scheme for the development of the power loom sector.

  • PowerTex India aims to boost common infrastructure and modernise the power loom sector in the

- Published/Last Modified on: March 14, 2019

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