Govt earmarks Rs 50 cr for handloom cluster

The Centre proposes to introduce a new handloom package under which 100 handloom clusters would be created and existing technology upgraded, Jairam Ramesh, Union minister of state for commerce, said on Saturday.

"A sum of Rs 50 crore over a period of three years has been allocated for creating the 100 handloom clusters," he said.

The package also envisages adding more depots that supply yarn to the handloom weavers, lauching of a 'handloom mark' and helping upgrade the technology of handlooms, he told reporters here.

The number of depots of the National Handloom Development Corporation that supplies yarn to weavers, currently at 65, would be increased to 230 this year and Rs 10 crore had been allotted for this.

The launch of the 'handloom mark', will take place in 2007.

"Every handloom product will carry this 'handloom mark' to distinguish handloom products from other products," he said, adding Rs 100 crore had been set aside for this purpose.

"A sum of Rs 15 crore has been earmarked, to be spent over five years, on modernisation of looms from 'pit looms' to improve high production looms," he said.

In addition to this "Nabard is working on a financial package to clean up the weavers' co-operative society through an infusion of capital." This would be put in place in the next two months, he said.

Ramesh said women self-help groups should be used much more extensively for delivery of credit and modernisation of handlooms and the Centre already has a scheme.

Ramesh said the central government already has a "integrated handloom cluster development scheme", under which Rs 2 crore is given every year to each cluster, identified by the state government, for development of infrastructure.

Ramesh said the sector was the second largest employment generator in the country after agriculture. In 2005-06, handloom exports stood at about Rs 2,500 crore. "Out of this, Rs 800 crore came from Tamil Nadu alone," he said.

He also pointed out that Co-Optex, had a turnover of Rs 400 crore last year, much higher than all the state handloom societies put together.

"We need some kind of public-private partnership with Co-Optex to promote handloom products in the country," he suggested.