India, March 22 -- The Hank Yarn Obligation Scheme (HYO) was introduced during 1963 directing the mills to pack 50 per cent of domestic weaving yarn delivery in hank form. The hank yarn obligation would have been fixed as 50 per cent based on the spinning capacity, handloom capacity and powerloom capacity (including independent weaving units) then existed and the demand for cotton yarn from both handloom and powerloom sectors. During 2003, the hank yarn obligation was reduced from 50 per cent to 40 per cent considering the drop in handloom capacity and increase in the powerloom capacity. During 1987-88, the number of handlooms was 38.9 lakh and the same had come down to 34.86 lakh during 1995-96. Further the same has dwindled down to 21.47 ...