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
1. To set up wool processing facility Centers in wool producing areas.
2. To provide quality yarn to unorganized sector for manufacturing quality woolen
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,
6. To strengthen the existing units for wool processing both for domestic production and
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.
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.
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
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
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:
- Wool area, geographical location of the unit and its utility to woolgrowers/
- 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.
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.
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
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
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’.