The Textiles Ministry, Santosh Gangwar to urge its Finance counterpart to fix a sub-target for the handloom sector under priority sector lending as banks not keen to sanction loans for the handloom sector.

Ministry of Textiles has been regularly pursuing the matter with Ministry of Finance and banks to extend loans to handloom weavers and their organisation as a regular agenda of state-level bankers' committee.

State governments have informed that banks are not showing enthusiasm in providing loan to handloom weavers/ cooperative societies due to various reasons, Textiles Minister Santosh Gangwar said in a written reply to the Lok Sabha.

During 2013-14, against target for issuance of 2 lakh weavers' credit cards (WCCs) with expected credit mobilisation of Rs 1,200 crore, only around 71,643 WCCs have been issued and Rs 195 crore loan has been sanctioned by the banks.

Besides, the Minister also informed that the government has earmarked financial assistance of Rs 537 crore for various schemes related to the handloom sector during 2014-15. The schemes include the National Handloom Development Programme; Handloom Weavers Comprehensive Welfare Scheme; Yarn Supply Scheme; and Comprehensive Handloom Cluster Development Scheme.

There has been a decline in the number of handloom weavers in the country. As per handloom census of 2009-10, the total number of handloom weavers and allied workers has reduced to 43.32 lakh from 65.51 as per handloom census of 1995-96.