Jute Enterprises Development Scheme (JEDS)

Assam is the largest producer of raw jute amongst the North Eastern states and has the 3rd largest crop in the country. More importantly, Assam produces some of the best quality raw jute in the country.

More than half a million farmers are directly involved with this cash crop.

More than 70% of the raw jute is sold outside the North East due to lack of adequate processing facilities in the region. Within the region itself, jute finds manifold uses, both for home consumption as well in the mill sector.

There is plenty of jute, enough for all of us and for exports. Estimated production figures in the North East guarantees supplies:

1 bale = 180 kgs

Market for various products

There is a tremendous potential for development of small jute based units in the region. The tested products are:

• Jute cotton fabrics for curtain cloth, bags and other madeups

• Foot mats & decorative wall hanging etc.

• Jute - cotton carpet, lamp shade etc.

Table mat, ladies hand bags, shopping bags, carpet. doormat, hat, wall hanging, chappals, lamp shade, hanging chairs, hammock etc.

Jute tea bags, shopping bags, gents/ladies bags, flowers, table top, table mat, disposable chappal, wall hanging, lamp shade, etc.

Mill & Industry Sector (Partial production)

Sutli, fine yarn, Odourless jute fabrics, hessian, gunny bags, jute tea bags etc

Braided products like shopping bags, jute mat, wall hanging, hat, hanging chairs, hammock etc.

Partially machine made products like shopping bags, ladies handbag, wall hanging, purse, sky bag etc.

Handloom products like doormat, floor mats, durries, curtains etc.

Support systems available

The region has facilitators like

Jute Service Centre at Guwahati & Agartala

Textile Laboratory (IJIRA) at Guwahati

Assam Textile Institute, Guwahati

Indian Institute of Handloom Technology, Guwahati Regional Weavers Service Centre, Guwahati

Regional Directorate, Development Commissioner (Handicraft)

Jute Corporation of India, and others

Entire Dhubri district comprising of Gauripur, Alamganj, Salakura Char (river island), Baglomari - famous for braided products

Goalpara, Darrang, Nalbari, Barpeta, Sonitpur, Lakhimpur & Dhemaji - braided & loom based products

Morigaon, Nagaon, Golaghat, Sivasagar, Tinsukia & Cachar - braided & loom based products

Manipur, in and around Imphal - braided & loom based products

Arunachal Pradesh in and around Itanagar - braided & loom based products

Tripura - almost all the districts - braided & loom based products

Lack of financial assistance from banks/financial institutions because of low investment in fixed assets, and larger requirement of working capital

Normally not encouraged by the financial institutions! banks

Craftsmen economically weak and unable to interact with large buyers

Equipments and consumables are not easily available in the region

The trade needs skill upgradation, training on bleaching & dying of yarn, knowledge of market

Good quality of raw jute

Large number of craftswomen/artisans benefitted through training programmes of NCJD in recent times

Good NGOs present and working in jute diversification

Market has widened and it is easier to market the products

The basic objective of the scheme is to provide financial assistance by way of loan to new/existing tiny units in the jute sector.

- Small enterprises where the investment (Term Loan & Working Capital) is not more than Rs. 10 (ten) lakhs

- NGOs/Co-operative Societies for jute development

The scheme is designed to encourage producers of jute based handicrafts, handloom & made-ups (Jute bags/Jute tea bags, shopping bags, ladies hand bags etc. made out of various jute fabrics).

Maximum Rs l0.00 lakhs

Minimum: 15%

Up to 25% of the project cost

- Service charge of 1.0% on the equity portion

-The rate for the composite loan will be fixed at Prime Lending Rate

As per the usual norms of the Corporation. Details available with any office of NEDFi

Security

Mortgage/hypothecation of the assets of the unit
Personal guarantee of the promoters and one/two respectable persons having the capability to repay the loan

Collateral security depending on the project size

Export/domestic orders, if any, have to be produced along with the loan application.

Entrepreneurs would need to submit an application in the prescribed format of NEDFi to avail the loan.

NEDFi will facilitate deserving entrepreneurs to participate in fairs and exhibitions in important locations.

The borrowers will be given ample opportunities to upgrade skills, and display their products at NEDFi Haat for popularizing their products and market tie-ups.