Delay in loan waiver leaves many weavers in distress in Telangana

Many weavers in Telangana are yet to receive promised loan waivers due to delays in scrutiny and fund shortages. Unions also oppose government plans to procure cloth from private firms, fearing loss of livelihoods 

Hyderabad: A year after the Congress government announced a waiver of weavers’ loans up to Rs.1 lakh, many beneficiaries are still waiting for relief. Delays in scrutiny and shortage of funds have slowed the process.

In March 2025, the government issued GO Ms No. 56 to implement the scheme. Handlooms and Textiles Minister Tummala Nageswara Rao said Rs.33 crore was sanctioned for the initiative.

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The scheme covers loans taken by weavers between April 1, 2017, and March 31, 2024. Beneficiaries were asked to clear any amount above Rs.1 lakh to qualify for the waiver.

Despite this, many weavers are struggling to get their applications approved. Committees set up at the district level are responsible for verifying claims. These panels include the District Collector and officials from the Handlooms department.

Around 18,000 weavers are estimated to have taken loans, mainly to set up looms and buy raw materials. Most loans were obtained through cooperative societies and banks.

According to CITU State Secretary Kurapati Ramesh, the scrutiny process has been slow. Applications are cleared only after committee approval, which has caused delays.

Officials are verifying the authenticity of each loan. Some applications have been rejected on the grounds that loans were used for personal needs. In many cases, the delay is linked to lack of funds, he alleged.

Ramesh also claimed that although Rs.33 crore was announced, only about Rs.20 crore has been released so far. A significant portion of this amount is yet to be used, as applications remain pending.

He further criticised the government for not allocating sufficient funds for the scheme in the budget, questioning its commitment to weavers. Workers union oppose education and welfare departments’ plans to procure cloth from private companies

Meanwhile, the Telangana Powerloom Workers union has opposed plans by the education and welfare departments to procure cloth from private companies.

This year, the departments have not placed orders with the Telangana State Handloom Weavers’ Cooperative Society (TGSCO) for school uniforms, bedsheets and other items. Usually, TGSCO passes these orders to weavers for production.

The union said cooperative societies depend on such orders for survival. If departments move to private procurement through tenders, it would severely impact weavers’ livelihoods.

Ramesh said several weavers are already under financial stress, and some have taken extreme steps due to lack of work.

Responding to a query on why cooperatives cannot take part in tenders, he said the conditions favour private firms. Requirements such as high turnover and large production capacity make it difficult for societies to compete, he said, questioning “Is it not the government’s responsibility to support weavers”