Ministry of Textiles20-September, 2013 12:41 IST
Continuation of Comprehensive Powerloom Cluster Development
Scheme during 12th Plan and modification of guidelines of the scheme for development of Powerloom Mega Clusters at Ichalkaranji, Bhiwandi and future projects

The Cabinet Committee on Economic Affairs (CCEA) today gave its approval for continuation of Comprehensive Powerloom Cluster Development Scheme (CPCDS), a Central Sector Plan Scheme, during the 12th Plan and modification of the guidelines of the scheme for development of Powerloom Mega Clusters at Ichalkaranji, Bhiwandi and future projects.


The modified scheme with an outlay of Rs.110 crore for 12th Plan will be implemented through a Public Private Partnership (PPP) model. CPCDS assistance under the modified scheme would supplement the development of existing brownfield facilities and infrastructure and enhance their productivity through provision of common infrastructure facilities, modern technology, designing, testing, skill development etc. A gap filling exercise for each cluster would identify the need based infrastructure that is to be funded.


The important changes approved in the modified guidelines with reference to the existing one are as under:-




Existing Guidelines


Modified Guidelines


Investment Ratio


Government : Private::40:60


Government: Private::60:40


Overall limit of CPCDS Grant


Rs. 70 crore


Rs.50 crore during 12th Plan


Types of investment


Greenfield and brownfield


Brownfield investment




Only for new Special Purpose Vehicles (SPVs).


Directly to existing weaving units or to SPVs with private equity participation depending on needs of the cluster.




Core infrastructure, common facilities, HRD/training infrastructure, R&D infrastructure and other need based infrastructure.


Common Facility Centre for pre and post loom weaving process, mini Industrial Parks with work-sheds supported by core infrastructure, innovative ideas and other need based interventions, technology upgradation and skill development.


Distribution of CPCDS Grant


Restrictions as well
as limit prescribed
on        each

Component-wise restrictions/limit removed for greater flexibility in utilization of fund.


Required contiguous land parcel

Projects can be implemented in non-contiguous land parcel.

Project cost

Land cost included

Land cost excluded.

Dove tailing of fund


Allowed from schemes of Ministry of Textiles and other Ministries with restriction of Rs.30 crore

Dove tailing from Technology Upgradation Fund Scheme for technology upgradation and Integrated Skill Development Scheme for skill development in addition to CPCDS grant. Restriction of Rs.30 crore removed.


Role of State Government

No active role specified.

Cluster Coordination Group (CCG) under District Magistrate formed to assist in preparation and endorsement of project proposals and monitoring the progress of the projects.


Performance guarantee and penal clause

Not clearly specified.

Clearly defined penal clause in case of non-performance by implementing agencies.





In 2008-09, the Government had launched the Comprehensive Powerloom Cluster Development Scheme (CPCDS) for development of Powerloom Mega Clusters at Bhiwandi (Maharashtra) and Erode(Tamil Nadu) as a Central Sector Plan Scheme during the 11th Five Year Plan, with a budget provision of Rs.70 crore for each cluster to assist the entrepreneurs to set up world-class units with modern infrastructure, latest technology and adequate training and Human Resource Development (HRD) inputs along with appropriate market linkages. Government further announced development of two more Powerloom Mega Clusters at Bhilwara (Rajasthan) in 2009-10 and at Ichalkaranji (Maharashtra) in 2012-13.








(Release ID :99488)