West Bengal Handloom & Khadi Weavers OTS Scheme for NPA Accounts
A West Bengal government sub-scheme that settles Non-Performing Asset (NPA) accounts of handloom and khadi weavers, Primary Weavers' Cooperative Societies and Khadi societies.
- Funding amount
- Varies by program
- Funding type
- Subsidy
- Provider
- Department of Micro, Small and Medium Enterprises and Textiles, Government of West Bengal (Government)
- Application deadline
- Rolling
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Overview
This is a targeted debt-relief measure within the West Bengal Handloom and Khadi Weavers Financial Benefit Scheme 2024, notified on 7 March 2024 by the state's Department of Micro, Small and Medium Enterprises and Textiles. Its stated purpose is to free Primary Weavers' Cooperative Societies (PWCS), along with individual weavers, from the weight of unpaid loans.
The problem it addresses is specific. Many weaving cooperatives and artisans carry accounts that have been classified as Non-Performing Assets with The West Bengal State Cooperative Bank Ltd. (WBSCB Ltd.) and with District Central Cooperative Banks (DCCBs). Servicing that backlog drains working capital and blocks fresh credit.
Under the One Time Settlement (OTS) arrangement, the state government contributes towards the overdue dues and the lending bank forgoes the rest. Together these two steps substantially clear the outstanding amount, letting the society or weaver start again on a cleaner financial footing.
The sub-scheme took effect on 7 March 2024 and remains in force for five years. It carries no single advertised rupee figure — what a beneficiary actually receives is calculated from the principal and interest outstanding in the specific account being settled.
Highlights
- A sub-scheme of the West Bengal Handloom and Khadi Weavers Financial Benefit Scheme 2024
- Settles viable NPA accounts held as on 31 March 2024
- Covers 100% of overdue principal and 25% of overdue interest
- The bank writes off the remaining 75% of interest plus penal interest
- Open to handloom and khadi weavers as well as PWCS and Khadi societies
- Rolling applications to the Director, Textiles — no fixed last date
Who can apply
Who qualifies depends on two things: your place in the handloom and khadi economy, and the status of the loan account you want settled.
Individual applicants
- Handloom weavers, including Master Weavers and Individual Weavers.
- Allied workers whose work relates to handloom weaving.
- Weavers operating within the cooperative fold.
- Weavers attached to handloom clusters.
- Khadi weavers.
Organisations
- Primary Weavers' Cooperative Societies (PWCS) holding a viable NPA account as on 31 March 2024.
- Khadi societies with a comparable eligible account.
The account itself must have been a viable Non-Performing Asset as on 31 March 2024 with The West Bengal State Cooperative Bank Ltd. or a District Central Cooperative Bank. Both societies and individual weavers can apply under the sub-scheme.
West Bengal Handloom & Khadi Weavers OTS Scheme for NPA Accounts is open to startups at any stage. It is open to startups registered anywhere in India.
- Eligible stage
- Any stage
- Location
- Open to startups registered in India
Deadline & timing
West Bengal Handloom & Khadi Weavers OTS Scheme for NPA Accounts accepts applications on a rolling basis — there is no fixed cut-off date, so eligible startups can apply at any time. Because rolling programmes can pause without notice, confirm the window is still open on the official site before you start.
What the funding covers
The support is a subsidy applied to an existing debt, not a fresh loan and not an investment. It is split between the state government and the lending bank:
- 100% of overdue principal on a viable NPA account as on 31 March 2024 is covered.
- 25% of overdue interest on that account is covered.
- The bank concerned writes off the other 75% of the interest that is overdue, together with any penal interest.
Because the calculation runs account by account, there is no flat figure on offer. The value of the benefit to any one society or weaver is simply the amount of principal and interest that has fallen overdue in their NPA account.
The combined effect is that a large share of an accumulated dues burden disappears, improving the financial position of the borrower and allowing the society or artisan to concentrate on production again.
About the provider
West Bengal Handloom & Khadi Weavers OTS Scheme for NPA Accounts is offered by Department of Micro, Small and Medium Enterprises and Textiles, Government of West Bengal, a government body. As a government-backed subsidy, it is publicly funded and open to eligible startups across India.
Documents you’ll need
Before you apply to West Bengal Handloom & Khadi Weavers OTS Scheme for NPA Accounts, keep the following documents ready:
- A pitch deck or short business plan describing the problem, product and traction
- Company registration documents and PAN
- Founder identification (PAN / Aadhaar) and brief profiles
- Recent financial statements or projections
- Product details — a demo, prototype or working link if available
Exact requirements are confirmed on the official application portal — treat this as a preparation checklist.
Frequently asked questions
What is the West Bengal OTS scheme for NPA accounts of PWCS?
It is a sub-scheme under the West Bengal Handloom and Khadi Weavers Financial Benefit Scheme 2024, run by the Department of Micro, Small and Medium Enterprises and Textiles, Government of West Bengal. Its job is narrow and clear-cut: helping Primary Weavers' Cooperative Societies and individual weavers settle the Non-Performing Asset accounts they hold with The West Bengal State Cooperative Bank Ltd. and the District Central Cooperative Banks. It was notified on 7 March 2024.
How much financial support does the scheme provide?
There is no fixed amount, because the benefit is calculated from the dues in your own account. The scheme covers 100% of the overdue principal and 25% of the overdue interest on a viable NPA account as on 31 March 2024. The remaining 75% of the overdue interest, along with any penal interest, is written off by the bank. So the bigger the outstanding overdue amount, the larger the relief.
Is there an application deadline?
No. Applications are rolling and the window stays open. The sub-scheme was launched on 7 March 2024 and remains in force for five years, so eligible societies and weavers can apply at any point during that period rather than racing a fixed last date.
Who is eligible to apply?
Two broad groups qualify. The first is individuals: handloom weavers including Master Weavers and Individual Weavers, allied workers connected to handloom weaving, weavers in the cooperative fold, weavers attached to handloom clusters, and khadi weavers. The second is organisations: Primary Weavers' Cooperative Societies with a viable NPA account as on 31 March 2024, and Khadi societies. The account itself must have been a viable NPA as on 31 March 2024.
Can an individual weaver apply, or is this only for cooperative societies?
Individual weavers can apply. Although the sub-scheme is best known for settling the NPA accounts of Primary Weavers' Cooperative Societies, the stated objective covers individual weavers as well, and the benefit structure of 100% of overdue principal and 25% of overdue interest applies to their viable NPA accounts too.
Which bank accounts does the scheme cover?
Accounts with The West Bengal State Cooperative Bank Ltd. (WBSCB Ltd.) and with the various District Central Cooperative Banks (DCCBs) are covered. What matters is that the account was a viable Non-Performing Asset as on 31 March 2024 — that reference date is written into the eligibility conditions.
Does the scheme take equity in my society or business?
No. This is a government subsidy, not an equity investment and not a loan product. There is no stake taken in your society or weaving unit, and no shares or ownership change hands as a condition of the support.
Who writes off the remaining interest?
The concerned cooperative bank does. Once the settlement is worked out, the bank forgoes the balance 75% of the overdue interest and any penal interest, while the state government's support covers the overdue principal in full and 25% of the overdue interest.
How do I apply for the scheme?
An eligible PWCS, Khadi society or individual weaver applies in the prescribed format, which is notified by the Department of Micro, Small and Medium Enterprises and Textiles. Applications can be submitted either online or offline, and the completed form goes to the Director, Textiles. The notification is published on the department's website.
Is DPIIT recognition required for West Bengal Handloom & Khadi Weavers OTS Scheme for NPA Accounts?
No. DPIIT (Startup India) recognition is not listed as a mandatory requirement for West Bengal Handloom & Khadi Weavers OTS Scheme for NPA Accounts, though having it can strengthen your application and unlock other benefits.
Who offers West Bengal Handloom & Khadi Weavers OTS Scheme for NPA Accounts?
West Bengal Handloom & Khadi Weavers OTS Scheme for NPA Accounts is offered by Department of Micro, Small and Medium Enterprises and Textiles, Government of West Bengal, a government body. It is provided as non-dilutive funding.
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