Mod 17: Schemes & Subsidies for Handloom & Powerloom Weavers

📖 Chapter 1 of 10 🧩 Module 20 of 32 ⏱️ ~5 min read 💡 10 MCQs

Topic Part 1 of 2

Welfare and Financial Empowerment Framework for Weavers:

The handloom and powerloom sectors form an essential component of Bihar's decentralized rural and semi-urban economy, generating livelihood security for extensive weaver communities across districts such as Gaya, Bhagalpur, Banka, and Nalanda. To enhance productivity, mitigate high manufacturing operational costs, and insulate traditional artisans from input price volatility, the Government of Bihar operates targeted fiscal schemes. These interventions are primarily anchored by two landmark programs: the Electricity Subsidy Grant Scheme (विद्युत सब्सिडी अनुदान योजना) for powerloom operators and the Working Capital Scheme (कार्यशील पूंजी योजना) for registered handloom weavers. In both initiatives, the state achieved a 100 percent financial target fulfillment during the 2022-23 and 2023-24 financial cycles, ensuring direct liquidity support and lowering input tariffs at the grassroots level.

Core Schemes and Operational Metrics (2023-24):

Electricity Subsidy Grant Scheme: Powerloom operations require reliable, affordable electrical power to compete with mechanized mill sectors. Under this scheme, the state provides an electricity tariff subsidy at the subsidized concession rate of Rs 3.00 per unit directly to operational powerloom units, incurring an aggregate expenditure of Rs 33.34 crore in 2023-24 against an equivalent target.
Working Capital Scheme: As highlighted in the Bihar Economic Survey 2024-25, raw material procurement (yarn, natural dyes, warp threads) presents the greatest liquidity barrier for traditional weavers. Under this targeted scheme, the State Government provides direct financial assistance of Rs 10,000 as revolving working capital to every operational, UID-marked handloom operator. In 2023-24, total state disbursements under this initiative reached Rs 2.0 crore.
Combined Fiscal Allocation: Across both programs, the State Government established a combined financial target of Rs 35.34 crore in 2023-24 and attained an exact financial achievement of Rs 35.34 crore, reflecting an exemplary 100% budget utilization.

Status of Ongoing Schemes in the Handloom and Powerloom Sector in 2023-24:

Scheme	Objective of the Scheme	Financial Target (Rs Cr)	Financial Achievement (Rs Cr)
Electricity Subsidy Grant Scheme	Providing electricity subsidy to powerloom weavers at the subsidized rate of Rs 3.00 per unit	33.34	33.34
Working Capital Scheme	Providing Rs 10,000 as working capital to operational UID-marked handlooms across the state	2.00	2.00
Total (योगफल)	Combined weaver welfare allocations	35.34	35.34

Exam View: Key Takeaways for Competitive Examinations:

Electricity Subsidy Rate: Flat concession of Rs 3.00 per unit provided to powerloom units.
Electricity Subsidy Outlay (2023-24): Exact achievement of Rs 33.34 crore.
Working Capital Grant: Lump-sum grant of Rs 10,000 provided per active UID-marked handloom operator.
Working Capital Expenditure (2023-24): Total disbursement of Rs 2.0 crore.
Combined Target & Expenditure: Total cumulative fund allocation and achievement across both schemes was Rs 35.34 crore.
Key Institutional Identifier: UID marking of handlooms is mandatory for verifying operational authenticity and transferring direct working capital benefits.

Important Questions Asked in Previous Govt Examinations (BPSC / State Exams):

Under the Electricity Subsidy Grant Scheme of Bihar, at what subsidized rate per unit is electricity provided to powerloom weavers? — Rs 3.00 per unit [Repeated in state welfare & economic survey questions].
According to the Bihar Economic Survey 2024-25, what working capital amount is granted to each operational UID-marked handloom weaver? — Rs 10,000.
What was the total financial expenditure achieved by the Bihar Government for the powerloom electricity subsidy scheme in 2023-24? — Rs 33.34 crore.
What was the combined financial achievement across both handloom and powerloom schemes in 2023-24? — Rs 35.34 crore.
Which verification criterion is mandated by the state government to extend direct working capital assistance to handloom operators? — UID marking on operational handlooms.

⭐ Key Points

Electricity Subsidy Rate: Flat concession of Rs 3.00 per unit provided to powerloom units.
Electricity Subsidy Outlay (2023-24): Exact achievement of Rs 33.34 crore.
Working Capital Grant: Lump-sum grant of Rs 10,000 provided per active UID-marked handloom operator.
Working Capital Expenditure (2023-24): Total disbursement of Rs 2.0 crore.
Combined Target & Expenditure: Total cumulative fund allocation and achievement across both schemes was Rs 35.34 crore.
Key Institutional Identifier: UID marking of handlooms is mandatory for verifying operational authenticity and transferring direct working capital benefits.

📌 One-line Q&A

Under the Electricity Subsidy Grant Scheme of Bihar, at what subsidized rate per unit is electricity provided to powerloom weavers? — Rs 3.00 per unit [Repeated in state welfare & economic survey questions].
According to the Bihar Economic Survey 2024-25, what working capital amount is granted to each operational UID-marked handloom weaver? — Rs 10,000.
What was the total financial expenditure achieved by the Bihar Government for the powerloom electricity subsidy scheme in 2023-24? — Rs 33.34 crore.
What was the combined financial achievement across both handloom and powerloom schemes in 2023-24? — Rs 35.34 crore.
Which verification criterion is mandated by the state government to extend direct working capital assistance to handloom operators? — UID marking on operational handlooms.

Questions 10 MCQs

Answer this question, then use Next.

Question 1: At what subsidized rate is electricity provided to powerloom weavers under the Electricity Subsidy Grant Scheme in Bihar?

Explanation: Under the scheme, powerloom weavers receive an electricity tariff subsidy at the rate of Rs 3.00 per unit.

Question 2: According to the Bihar Economic Survey 2024-25, how much financial assistance is disbursed to each operational UID-marked handloom operator as working capital?

Explanation: Each active UID-marked handloom weaver receives Rs 10,000 in direct working capital assistance to facilitate raw material purchases.

Question 3: In the fiscal year 2023-24, what was the actual expenditure achieved under the Electricity Subsidy Grant Scheme for powerloom weavers?

Explanation: The state government allocated and achieved an exact financial expenditure of Rs 33.34 crore under the electricity subsidy scheme in 2023-24.

Question 4: What total financial expenditure was incurred by the Bihar Government in 2023-24 under the Handloom Working Capital Scheme?

Explanation: Under the Working Capital Scheme for handloom operators, the state expended Rs 2.0 crore during 2023-24.

Question 5: What was the combined financial achievement across both weaver support schemes (Electricity Subsidy and Working Capital) in 2023-24?

Explanation: The cumulative achievement across the two schemes reached Rs 35.34 crore (Rs 33.34 crore + Rs 2.0 crore).

Question 6: Which statutory prerequisite is mandated by the state government for a handloom to be eligible for the Working Capital Scheme?

Explanation: The working capital grant is restricted to active handlooms stamped with official Unique Identification (UID) marks to prevent leakage.

Question 7: In which financial year did the Government of Bihar achieve its targeted milestones across both weaver assistance programs prior to 2023-24?

Explanation: The state achieved complete financial target fulfillment in 2022-23 and maintained it through 2023-24.

Question 8: What is the primary purpose of providing direct working capital grants to handloom weavers?

Explanation: Working capital allows artisans to purchase raw yarn, threads, and dyes without taking high-interest loans from informal moneylenders.

Question 9: Which major weaver clusters in Bihar primarily benefit from the powerloom electricity subsidy program?

Explanation: Gaya (notably Manpur), Bhagalpur, and Banka have dense concentrations of operational powerlooms and utilize the subsidized tariff.

Question 10: Which state government department oversees the execution of the Electricity Subsidy Grant Scheme and the Handloom Working Capital Scheme?

Explanation: The schemes are administered by the Directorate of Handloom and Sericulture under the Department of Industries, Government of Bihar.

Question 1 of 10

One-liners

Write your answer, then submit to see the correct answer.

Under the Electricity Subsidy Grant Scheme of Bihar, at what subsidized rate per unit is electricity provided to powerloom weavers?

Rs 3.00 per unit [Repeated in state welfare & economic survey questions].

According to the Bihar Economic Survey 2024-25, what working capital amount is granted to each operational UID-marked handloom weaver?

Rs 10,000.

What was the total financial expenditure achieved by the Bihar Government for the powerloom electricity subsidy scheme in 2023-24?

Rs 33.34 crore.

What was the combined financial achievement across both handloom and powerloom schemes in 2023-24?

Rs 35.34 crore.

Which verification criterion is mandated by the state government to extend direct working capital assistance to handloom operators?

UID marking on operational handlooms.