The Orissa government has provided assistance of Rs 18.91 crore for the development of weavers under a special package announced by chief minister, Navven Patnaik.
The package aims at skill upgradation of the weavers, setting up of Common Facility Centre (CFC), providing facilities like bank loan, marketing assistance and market specific designs, issue of identity card and promotion of handicrafts inside and outside the country. This was stated by the state industry minister Raghunath Mohanty.Mohanty said, with a view to promote extensive self employment in the handicraft sector, the chief minister had announced the Rs 40 crore package for 5 year period starting from 2007-08.
The government has exempted khadi, village and cottage and handicrafts industries from payment of value added tax (VAT) as per the provisions of the Industrial Policy Resolution (IPR), 2007.
Besides, 10 percent price preference is given to such industries to participate in government tender. While earnest money deposit (EMD) has been exempted for them, they are required to pay 25 percent of the security deposit.