Textile Workers’ Rehabilitation Fund Scheme (TWRFS)

Textile Workers' Rehabilitation Fund Scheme (TWRFS)

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The Textile Workers' Rehabilitation Fund Scheme came into force with effect from 15.09.1986 with the objective to provide interim relief to textile workers rendered unemployed as a consequence of permanent closure of any particular portion or entire textile unit. Assistance under the Scheme is payable to eligible workers only for the purpose of enabling them to settle in another employment. Such assistance is not heritable, transferable or capable of being attached on account of any other liabilities of the worker. The worker's eligibility shall cease if he takes up employment in another registered or licensed undertaking. The rehabilitation assistance will not be curtailed if the worker fixes himself in a self-employment venture.


Closed Textile Unit


For the purpose of this scheme, closed textile unit means


1.     A unit licensed or registered under the Industries (Development & Regulation) Act, 1951 or with the Textile Commissioner as a medium scale unit on the day of its closure;


2.     It has obtained the requisite permission for closure from the appropriate State Government under section 25(O) of the Industrial Disputes Act, 1947 or alternatively an Official Liquidator was appointed under Companies Act, 1956, for the purpose of winding up of the unit..


3.     The unit was closed down on or after 06.06.1985.


4.     This also includes partially closed units wherein the State Governments recommend that an entire uneconomic activity (like weaving or processing) is scrapped as a part of rehabilitation package for a sick/weak mill (as per the RBI definition) approved by the Nodal Agency/BIFR provided the scrapped capacity is surrendered for cancellation and endorsement is made on the License / Registration certificate to this effect.




Any workers would be eligible provided he/she has been engaged in a closed textile unit on the date of its closure continuously for five years or more and earning a wage equivalent of Rs. 2500 per month or less for the mills closed between 06.06.1985 to 01.04.1993 and Rs.3500 or less thereafter. They should be contributing to provident fund maintained by the Regional Provident Fund Commissioner of the State concerned.


Period and Quantum of Relief


Relief under the Scheme is available only for three years on a tapering basis but will not extend beyond the date of superannuation of any worker. The worker is entitled to get relief


1.     To the extent of 75% of the wage equivalent in the first year of the closure of the unit;


2.     To the extent of 50% of the wage equivalent in the second year; and


3.     To the extent of 25% of the wage equivalent in the third year.


Operation of the Scheme


The scheme is administered by the office of the Textile Commissioner, Mumbai through its Regional offices and in coordination with State Government, Official Liquidator, Provident Fund Authorities, concerned designated Trade Union and designated Banks. The State Government will collect the details of the workers etc. from the management/official Liquidator/provident fund authority etc. and prepare a list of eligible workers and forward the same to the concerned Regional Office of the Textile Commissioner in the prescribed Proforma. The list will be scrutinized by Regional Office of the Textile Commissioner and the list of eligible workers with eligible relief is sent to State Government and designated trade union, besides keeping on a notice board.


The individual eligible workers are required to open a separate Savings Bank Account in the designated nationalized Bank and forward a certificate to the effect along with his relief claiming application to the Regional office of the Textile Commissioner through the State Government. In the mean time the Regional office of the Textile Commissioner examines the proposals and assesses the fund requirement and reports to the Head quarter Office of the Textile Commissioner for releasing fund. On receipt of fund allocation, necessary fund is allotted to the Regional Office in the form of Letter of Credit opened by the Pay & Accounts Officer (Textiles) Mumbai. On receipt of funds, Regional Office of the Textile Commissioner disburses the relief by sending a consolidated cheque in favour of the designated Bank along with the list of eligible workers and the amount of relief to be paid to each of the eligible workers.


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