TELANGANA: TGSCO stuck in financial crisis as ₹760 crore dues pile up
HYDERABAD: The Telangana State Handloom Weavers Cooperative Society (TGSCO), which supplies clothes, blankets and other fabrics to students in government schools, gurukuls, and hostels, has been hit by a severe financial crisis after pending bills piled up to ₹760.42 crore over the past three years.
Major dues for 2025–26 alone at ₹590 crore
Of the total dues, ₹590 crore relate to the 2025–26 financial year. Officials said the delay has forced TGSCO to pay staff salaries late and left several handloom societies without funds to pay weavers.
TGSCO provides uniforms and blankets to students in government-run schools and welfare gurukuls, as well as to students of Rajiv Gandhi University of Knowledge Technologies (RGUKT) in Basar. The society also supplies sarees to Anganwadi workers and hospital linens through the Telangana State Medical Services and Infrastructure Development Corporation.
This year, the government announced the distribution of free sarees to 65 lakh women members of self-help groups. The handlooms department also places annual orders for national flags, usually issued to TGSCO in January.
Departments delaying advance payments
Departments are required to release 50% of funds in advance with each order, but officials said the budget freeze has stalled payments. Even after fabric supplies were completed in May, bills remain unpaid.
“Despite repeated appeals to departments to clear the bills together, there has been no progress,” a senior TGSCO official said.
