Handlooms (Reservation of Articles for Production) Act,1985
Act No : 22
Section : SHORT TITLE, EXTENT AND COMMENCEMENT
HANDLOOMS (RESERVATION OF ARTICLES FOR PRODUCTION) ACT, 1985
STATEMENT OF OBJECTS AND REASONS:
The handloom industry is characterised by sizeable unemployment and under-employment which are due to factors like lack of organisation of weavers, inadequate availability of inputs, including working capital, and absence of a regular and reliable marketing system, which can*(absorb) the entire production of all these, the lack of adequate marketing system is one single factor which comes in the way of proper development of handlooms. Although a number of developmental measures have been undertaken towards improvement of the industry, yet, due to marketing difficulties, production in the handloom sector continues to suffer. The inherent technological constraints suffered by the handloom sector put it at a disadvantage when the sector is forced to compete with mill and power loom sectors in the open market. It is in this context that reservation of certain items for exclusive production by handlooms acquires importance. The policy of reservation of certain items for exclusive production by handloom has been adopted since 1950, first under the Cotton Textiles (Control) Order, 1948, and later under the provisions of the Essential Commodities Act, 1955. This policy has helped the handloom sector to a considerable extent. However, during the last few years these reservation orders, issued under the Essential Commodities Act had been challenged in various courts of law. Though their validity had been upheld, it is considered desirable to have a separate legislation, so as to obviate the possibility of further litigation which may seriously affect the implementation of the reservation orders. A study group appointed by the Government to go into this question has also suggested that it would be desirable to have a separate legislation. It has been decided to accept this recommendation. [*] Word 'absorve' appears to be misprinted. It may be read as 'absorb'.
2. The Bill, apart from enabling the Central Government to reserve by notified order certain articles or class of articles for exclusive production by handlooms after taking into consideration the recommendations of an Advisory Committee constituted under the provisions of the Bill, provides for prohibition of manufacture of such articles or class of articles by power loom or other sectors, penalties for the contravention of the provisions of the order and other matters necessary for implementing the provisions of the Bill. The Bill also provides for giving an exemption to certain articles covered by the order if the Central Government considers it necessary so to do for the purposes of export or for research in, and development of, the handloom industry. -Gaz. of Ind., 29-8-84, Pt. II, S. 2, Ext" p. 8 (No. 55).
An Act to provide for reservation of certain articles for exclusive production by handlooms and for matters connected therewith.
Be it enacted by Parliament, in the Thirty-fifth Year of the Republic of India as follows:-
SECTION 01: SHORT TITLE, EXTENT AND COMMENCEMENT
(1) This Act may be called The Handlooms (Reservation of Articles for Production) Act, 1985.
(2) It extends to the whole of India.
(3) It shall come into force on such date1as the Central Government may, by notification in the Official Gazette appoint.
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