YARN BANK SCHEME
GS 3: Economy | Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth
Why in News?
To avoid fluctuation in yarn price, government has launched a Yarn Bank Scheme as one of the component of PowerTex India with effect from 01.04.2017 to 31.03.2020.
Yarn Bank Scheme:
- The Scheme provides interest free corpus fund up to Rs.2.00 crore to the Special Purpose Vehicle (SPV)/Consortium formed by powerloom weavers to enable them to purchase yarn at wholesale rate and give the yarn at reasonable price to the small weavers
- It aims to avoid middleman and local supplier’s brokerage charge on sales of yarn.
- Registered Co-operative Society.
- Company set-up under the Companies Act, 1956 as amended.
- Firm set-up under the Limited Liability Partnership Act, 2008 as amended.