West Bengal Handloom & Khadi Weavers OTS Scheme for NPA Accounts — Frequently Asked Questions

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.