Special focus on cottage sector, handicrafts

Commerce and industry minister, Murasoli Maran today announced the launch of a new programme called "special focus on cottage sector and handicrafts' under which an initial amount of Rs 5 crore has been earmarked for promoting the cottage sector exports coming under the Khadi and Village Industries Commission (KVIC).

Units of the handicraft sector will be allowed to access funds under the market access initiative (MAI) scheme for normally permissible activities including development of websites for virtual exhibitions.

These units will not be required to maintain an average level of exports under the export promotion capital goods scheme and will also be entitled to duty-free imports of specified items like embellishments upto 3 per cent of f.o.b. value of their exports.

The government will also undertake a study to identify places associated with certain handicrafts, which have export potential. To begin with, places like Khurja in Uttar Pradesh, famous for its pottery, will be picked up for an indepth study to assess their potential for developing an export market for their products.

The policy aims to grant recognition to industrial cluster-towns associated with certain products, like Tirupur for hosiery and Ludhiana for wollen knitwear, with a view to maximise their export profiles and help them to move to higher value markets.

The policy has provided the export promotion capital goods scheme facility to common service providers in these areas. In addition, recognised associations of units in these areas would be able to access funds under the MAI scheme for creating focused technological services and marketing abroad.

These notified areas will also receive assistance on a priority basis for identified critical infrastructure gaps from the scheme on central assistance to states.

Units in the handicraft and in the small-scale sector will be entitled to the benefit of export house status on achieving an average export performance of Rs 5 crore as against Rs 15 crore for others.