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					Guidelines for implementation of the Common Facility Centre: Pre loom
activity under Quality Processing of Wool and Woollen scheme of CWDB

         The scheme of Quality Processing of Wool & Woolen (pre-loom and post loom activity)
is to provide a comprehensive services for wool scouring, deburring, carding, dying, spinning,
finishing stages. It will facilitate in improvement in quality of raw wool, finishing of woollen
products and add value to the product. The setting up of Integrated Wool Processing Centre in
Carpet yarn manufacturing clusters will attract the spinners to modernize their obsolete and small
yarn-manufacturing units.

Objectives:

   1.       To set up wool processing facility Centers in wool producing areas.
   2.       To provide quality yarn to unorganized sector for manufacturing quality woolen
            products.
   3.       To support entrepreneurs to modernized wool processing facility centers with latest
            technology and replace obsolete machineries.
   4.       To increase scope for value addition to the raw wool and generate employment in
            wool potential areas.
   5.       To provide wool processing facilities such as deburring, scouring, carding, spinning,
            finishing etc.
   6.       To strengthen the existing units for wool processing both for domestic production and
            export purposes.

Scope:
   1. To set up integrated wool processing centers in wool potential areas of the country for
      scouring, dyeing, carding, deburring, spinning etc.
   2. To set up shawl and woollen finishing center and carpet finishing centers on the basis of
      Public Private Participation and through a Special Purpose Vehicle.
   3. To set up such plants at Bikaner, Beawar, Kekri (Rajasthan), Ludhiana, Panipat,
      Mirzapur, Bhadoi and other major wool potential areas in the country.
Project beneficiaries:

         The project beneficiaries will be the State Wool Board/ Corporations, Non-Governmental
Organizations, Regd. Societies, Private Entrepreneurs registered under Small Scale Industries in
District Industries Centers who are engaged in processing of wool and woollens.




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Eligibility:

      The Agency must be engaged in the production and processing of wool based products.
      The Common Facility Centre should serve the requirements of wool
       growers/artisans/weavers etc for value addition to the wool and woollen as commission
       plant on job work basis at lower cost.
      The grant under this scheme would be given to those existing agency that have not
       received any benefits/subsidy/ grant under any other Central Sector/Centrally Sponsored
       Schemes of the Govt for the same purpose.
      Agency should be a registered body under the relevant act and require submitting last 3
       years audited account statement.
      Agency has to submit techno commercial feasibility report from Director of
       Industries/DIC/DRDA etc.
      Agency should be liability free (liability free means that its assets should be equal or
       more than its liabilities)
      Agency should have own land & building with clear owner ship rights.
      The Agency who are interested in production, value addition and diversification of wool
       items.
      Agency willing to bear the recurring expenditure to run the facility as a viable unit. For
       this purpose agency must give undertaking that it will bear recurring expenditure and is
       able to bear all expenses related to manpower, raw material, electricity and all other
       related expenses required to run the center


Procedure for application:

   The interested State Wool Board/ Corporations, Non-Governmental Organization, Regd.
Societies, Private Entrepreneurs etc. engaged in processing of wool and woollens may submit
their application with the following documents:

      Detailed project report Project should contain details of Cost of Land, Building,
       machinery/equipments with technical specification etc.
      Feasibility study from a reputed consultant
      Details of their activities involved,
      Aims and objectives the agency,
      Funding pattern of the agency

Criteria for selection:
      Selection of the agency will be done on the basis of Technical bid and financial bid
       Technical bid includes the following:


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          -       Wool area, geographical location of the unit and its utility to woolgrowers/
                  weavers/artisans etc.
          -       Production capacity of woollen items
          -       Past experience of the agency
          -       Forward and backward linkages
          -       The intended value addition and export feasibility etc.
       The financial bids will be opened only after the satisfaction of the technical bid.
      The selection of the implementing agency, if more than one, would be done on the basis
       of quotations by following GFR procedure and the agency quoting for lowest subsidy
       demand would be awarded the project on priority.
Other conditions:
      An undertaking that the agency would provide                     services    to   the   wool
       growers/weaver/artisans etc on priority basis at lower costs.
      The rules for operating the plant and taking job work would be laid down so as to be
       transparent and beneficial to the wool growers/weaver/artisans etc and would require
       prior approval of the CWDB.
Financial parameters:

      The scheme would be implemented in project mode and Rs. 50.00 lakhs or 50% of the
       total project cost, whichever is less, would be provided by the Government of India as
       subsidy for pre-loom activities of the project to the implementing agency.
      The grant would be provided in three equal installments of 30%, 60% and 10% in the
       following manner
          a. At the time of sanction-30% of total grant
          b. At the time of procurement of the plant/machinery-60% of total grant
          c. After commissioning of plant remaining 10% of total grant.
      Grant should be only for machinery part.
      Agency will bear expenses of land and building, manpower, recurring expenses etc.
      Project proposal should justify the need, available expertise, managerial and marketing
       skills, financial strength etc. and project should be financially viable.
      The agency would engaged professional management
Approving authority:
       The Executive Committee of the Central Wool Development Board is the approving
authority of the project. The Project Committee of CWDB for recommending the same to the
Executive Committee will initially examine the project proposals received under ‘Quality
Processing of Wool & Woollen’.

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posted:3/5/2010
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