April 7, 2024

The Powerloom Industry in India has formed a prime segment in the Textile community. The powerloom was technically inherited from the handloom sector and are considered as the successor to the handlooms sector. This formed a clustered and decentralised sector that paved the way for either a small or big powerloom sectors in almost every part of the country. This article speaks about the infrastructural and financial benefits of Powerloom sector that charged on to implementing the Integrated Scheme for the Powerloom Sector’s Development. Powerloom and its Features The greater proportionate in the requirement of fabric for the garment sector for both domestic and international markets had set the demand of the powerloom sector. The Government statistics report that the powerloom sector covered 62% of the total fabric production. The Government has focused its attention on the powerloom sector with the implementation of multi-pronged Schemes and interventions. To address and overcome the drawbacks faced by the powerloom weavers in their socio-economic status, to enrich the technology standards of the powerloom weavers, the Integrated Schemes are established. The Government of India initiated the beneficial process with the Integrated Scheme for Powerloom Sector Development under the XII Five Year Plan, citing its rising demand and economic value. Objectives of the Scheme To upgrade the Powerloom Sector with modern methods. To provide efficient support and service to the powerloom industry weavers through Powerloom Service Centres (PCs) by providing the latest technological machines and equipment. To assist and encourage the powerloom weavers or industry in marketing their products by conducting exhibitions. To dilute the involvement of the brokers and middlemen between the Organizations. To provide infrastructure support for marketing and promotions for both in domestic and international markets. To provide assistance in establishing Common Facility Centres (CFCs) and Yarn Bank in Clusters for direct marketing. To encourage the powerloom industry to meet global challenges and competition independently. To provide start-up capital for powerloom weavers on account of Tex-Venture Capital Funds. Scope of the Scheme he Powerloom sector has reached nook, and corner of the nation with every state has at least a small cluster. To diversify the powerloom products, the 12th Year plan focuses largely on the modernization and marketing methods of the garment sector. The Scheme comprises of the following components: To conduct seminars or workshops for the powerloom weavers educating them about the scheme, the technological evolution in the sector and the benefits of the scheme for their own. Marketing Development Programs for Powerloom are organised for the powerloom weavers to market their products at regional and cluster level. The Grant-In-Aid (GIA) is Non-Plan Funds utilised for recurring the day-to-day expense of PSCs. Powerloom Service Centres (PSCs) and Integrated Textile Service Centres (ITSCs) are established to create facilities in the areas of the following: Design and development for entrepreneur and weaver’s development. Quality Testing Skilled manpower Providing efficient tools and machinery Government assists in the modernisation of existing PCS. Procedure for Forming Special Purpose Vehicle Special Purpose Vehicle (SPV) or a Consortium are eligible for submitting proposals in setting-up Facilities centre like Yarn Depot. SPV should be a democratic firm with a vision of increasing and developing the individual powerloom weavers or entrepreneurs in future. Project Approval Committee (PAC) will approve the submitted proposal considering the facilities available in the surrounding area. The SPV will submit the financial progress report and project completion report to the Textile Commissioner. The minimum of eleven members are necessary to form an SPV, and they should be: Stakeholders, Co-operative Societies, Master Weavers, Private Entrepreneurs, NGOs working for the powerloom sector. Operative Society, A trust or an organisation registered under the Companies Act, 1956. Documents to Submit SPV should furnish all the information about the cluster regarding the, Location Complete Details of Special Purpose Values Bank Details of SPV Name of the Products Total No. of Micro and Small Enterprises and its cluster categories as below: Micro Small Owned by the Women enterprises Owned by SC Owned by ST Owned by minorities Entire turnover of the cluster Major grievances of the cluster Key interventions in terms of Technology Improvement, product quality, Marketing, Export Details of the organisation that has assessed, evaluated, diagnosed the study of clusters. SPV should submit the list of Common Facility Centres To specify the need, benefits and on what factors do the common facilities are framed. The other established interventions of the Government/Association if any The details of other enterprises showing interest in the Common Facilities Centres. Details of the in-principle approval form the bank. Submitting the Report of the machinery and its installation Regularly preparing the monthly Management Information System reports Final approval by the 60% utilisation if the CFC certificates. 3. SPV should submit the detailed project report comprising all the elements. The following are the components/facts involved for claiming the assistance: List of Plant and Machineries 100% capacity utilisation on the consumables annually Utilisation and services at full capacity utilisation, in terms of power, water, gas and oil. Location of the Plan, Site and details of civil Non Affirmative certification. Organization of Manpower requirement Complete project cost estimation and details. The scheduled means of finance for construction and production. Funding Pattern The Government of India provides support for the setting up of Common Facilities Centres, including Yarn Bank with three different levels: Grade–A, this level of assistance is provided up to 60% of the project cost. Grade–B, this assistance is provided up to 70% of the project cost. Grade–C, this level of assistance is provided up to 80% of the project cost. Grade–D, this level of assistance is provided up to 90% of the project cost for the clusters in North Eastern Regions and Jammu and Kashmir. The Grading of the clusters is done by the Textile Commissioner,and the project cost for the assistance will include: The damage incurred for the Machinery, plant, tools, equipment, other assets, preliminary expenses. One-fourth of the building’s construction cost. The Government will not provide assistance for the land cost, and the SPV holds the responsibility of providing the land. Fund Release the financial transaction of SPV

Trade license is a certificate/ document that permits a company to carry on the business or trade activities in a particular municipal limit for which it is issued. In Delhi, Trade License is issued by the Municipal Corporation of Delhi (MCD) to traders and establishments to monitor and regulate the various trade activities at the city level. Delhi Shops & Establishment Act, 1954 Regulations under the Shop and Establishment Act lays down the following rules based on which the Delhi trade license is issued. Every establishment/shop must compulsorily be registered under this Act within 30 days of commencement of work. Shops and Establishments Act regulates the following aspects of doing business in India: The working hours on a daily and weekly basis. Provisions for spread-over, rest interval, opening, and closing hours closed days, national and religious holidays, overtime work. Regulation of employment norms for children, young persons, and women. Rules and regulations concerning paid leaves. Rules and conditions for employment and termination of service. Regulations concerning the maintenance of records and registers. Obligations of employers as well as employees. Precautions against fire, accidents, etc. Regulations concerning the display of notices. The responsibility of the employer and employee towards each other, the firm and the society. Businesses Requiring Trade License ll commercial establishment that falls under the following categories must obtain trade license: An establishment or administrative service in which persons employed or mainly engaged in office work. A hotel, restaurant, boarding or eating house, a cafe or any other refreshment house. A theatre, cinema or any other place of public amusement or entertainment. Requirement to Obtain Trade License The government has made it necessary for one to obtain trade license to ensure that the person is not carrying out unethical business practices and is following the relevant rules, safety measures and guidelines. A licensed business protects its owners against certain types of liability. If damage or injury occurs the business actions or doings, the personal finances would not be at stake in any settlement. The various types of trade licenses offer different levels of protection. List of Required Documents The following information or documents/records are to be furnished at the time of submitting the application form for obtaining Delhi trade license. Address Proof and Identity Proof – Individual. Affidavit Certificate of Incorporation, MOA and AOA of the company. Cancelled Cheque and Bank Statement. Certificate of Incorporation, MOA and AOA of the company. Legal Occupancy document proof of the establishment/unit or allotment letter of the government agency. Documentary proof of establishment of trade. Lease Deed of the constitution. Documentary proof regarding the non-existence of unauthorised construction. NOC (No Objection Certificate) from the land-owning agency. Documents required for the renewal of a trade license: Address Proof and Identity Proof Original License copy Old G-8 receipt Application for renewal of a license Documents required for the issue of a duplicate trade license: First Information Report (FIR) Indemnity Bond in prescribed format. Registration/ Processing Fee The processing fees for the application will be charged Rs. 500/-, that includes the handling charges of Rs. 50/- plus service charges. The Annual License Charges will depend on the trade type. The trade license fee at the following rates to be paid is tabulated below: Category Area of the Establishment Fee/Charges Category A Conforming Area / Local Commercial Area   (i) Rs. 200/ P.A. up to 10 sq. Meter. (ii) Rs.500/-P.A between 10 Sq. Meter to 20 Sq. Meter. (iii) Rs. 50per Sq. Meter P.A above 20 Sq. Meter. Category B Non-Conforming Area / Household (i) Rs. 200/ P.A. up to 10 sq. Meter. (ii) Rs. 500/-P.A between 10 Sq. Meter to 20 Sq. Meter. (iii) Rs. 50per Sq. Meter P.A above 20 Sq. Meter.   Application Procedure for Trade License – Online Method Visit the MCD portal Step 1:  Applicants have to visit the official portal of MCD (Municipal Cooperation of Delhi). Step 2: Now you have to select your region among North DMC, South DMC, or East DMC. Apply for Trade/ Storage License Step 3: Click on “Trade/ Storage License” tab visible on the home page. Step 4: Then you have to click on the ‘Application for New License’ where you will be directed to the new trade license application page. Fill in the right credentials Step 5: Then, the applicant has to complete all the requested details such as New trade license details, Applicant’s address details, other owner details, Type of license, Business details, NOC from a fire department, Fee details, Property Tax details etc. and click on the ‘Submit’ icon. Upload Requested Documents Step 6: Fill in the details further in the application form and upload the requisite/mandatory documents and submit the application. Step 7: After uploading all the requested documents (scanned documents), click on the Submit icon. Verification of Documents Step 8: Once the application is submitted, verification of the documents will be done by the ULB officials. Generate Application Number Step 9: After submitting the application form successfully, an automatic unique application number will be generated. Make Payment Step 10: Once the application is scrutinised, the authorised official will calculate and generate the fee-seeking requisite payment from the applicant for issuing the License. Step 11: The applicant will be notified via SMS or email on the registered mobile number and email address for making the requisite payment. tep 12: You have to fill all the following details to make the payment. UBL name Collection date Collection centre Payment mode Bank details Step 13: Then, you have to fill out all the requested payment details. Step 14: Then, click on the “Make Payment” icon to make the payment online. A receipt will be generated as an acknowledgement slip for the amount made. Once the payment is received, the competent authority shall verify and issue the Trade license. Application Procedure for Trade License – Offline Procedure Approach the Municipal Cooperation Step 1: Firstly, the applicant has to visit the licensing department ranging from a particular municipal limit. Step 2: The applicant has to make a request with the executive for applying for a trade license. Fill out the right credentials Step

 Letter of Intent (LOI) is a short non-binding contract that precedes a binding agreement, such as a share purchase agreement or asset purchase agreement (definitive agreements).  There are some provisions, however, that are binding such as non-disclosure, exclusivity, and governing law. The main points that are typically included in a letter of intent include: Transaction overview and structure Timeline Due diligence Confidentiality Exclusivity What Is a Letter of Intent (LOI)? A letter of intent (LOI) is a document declaring the preliminary commitment of one party to do business with another. The letter outlines the chief terms of a prospective deal. Commonly used in major business transactions, LOIs are similar in content to term sheets. One major difference between the two, though, is that LOIs are presented in letter formats, while term sheets are listicle in nature. LOIs are useful when two parties are initially brought together to hammer out the broad strokes of a deal before the finer points of a transaction are resolved. LOIs often include provisions stating that a deal may only go through if financing has been secured by one or both parties, or that a deal may be squashed if papers are not signed by a certain date. LOIs can be iterative in nature. One party may present an LOI, to which the other party may either counter with a tweaked version of that LOI or draft a new document altogether. Ideally, by the time both parties come together to formalize a deal, there will be no surprises on either side of the table. Purpose of a Letter of Intent (LOI) Letters of intent may be used by different parties for many purposes. Parties can use an LOI to outline some of the basic, fundamental terms of an agreement before they negotiate and finalize all the fine points and details. Furthermore, the LOI may be used to signal that two parties are negotiating a deal such as a merger or joint venture (JV). Overall, LOIs aim to achieve the following: Clarify which key points of a deal must be negotiated. Protect all parties involved in the deal. Announce the nature of the deal, such as a joint venture or a merger between two companies. Applications of a Letter of Intent (LOI) In the context of business deals, LOIs are typically drafted by a company’s legal team, which outlines the details of the intended action. For example, in the merger and acquisitions (M&A) process, LOIs detail whether a firm plans to take over another company with cash or through a stock deal. Letters of intent also have applications beyond the business world. For example, parents may use them to express the expectations they have for their children in the event both parents die. Although they aren’t legal documents like wills, LOIs may be considered by family court judges responsible for legislating what happens to the children under such circumstances. LOIs are also used by those seeking government grants, and by highly sought-after high school varsity athletes. These individuals frequently draft LOIs to declare their commitments to attend particular colleges or universities. FAQs What is a Letter of Intent (LOI)? A Letter of Intent (LOI) is a document outlining the preliminary understanding between parties involved in a proposed transaction or agreement. It serves as an expression of intent to proceed with negotiations and formalize a more detailed agreement. What is the purpose of a Letter of Intent (LOI)? The primary purpose of an LOI is to outline the key terms and conditions of a potential deal or agreement before finalizing a comprehensive contract. It sets the stage for further negotiations and due diligence. Is a Letter of Intent legally binding? The legal binding nature of an LOI depends on its wording and the intention of the parties involved. In many cases, an LOI is considered non-binding, indicating an intention to negotiate and reach a formal agreement. However, certain provisions within the LOI, such as confidentiality clauses or exclusivity agreements, may be legally binding. 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