Govt okays Rs 420 cr cluster development schemes

The government today approved the comprehensive powerloom, handloom and handicraft cluster development schemes worth Rs 420 crore in five states-Maharashtra, Tamil Nadu, Uttar Pradesh, Assam and Andhra Pradesh.

The Cabinet Committee on Economic Affairs (CCEA) gave its approval to the implementation of the powerloom cluster development scheme at Bhiwandi in Maharashtra and Erode in Tamil Nadu with a budget provision of Rs 70 crore for each cluster during the 11th five year plan.

The aim is to assist the entrepreneurs to set up world-class units with modern infrastructure, latest technology, and adequate training and human resource development inputs along with appropriate market linkages.

In another decision, CCEA also approved the comprehensive handloom cluster development scheme at Varanasi in Uttar Pradesh and Sibsagar in Assam with a budget provision of Rs 140 crore with Rs 70 crore for each cluster during the 11th five year plan.

The scheme will provide for development of all the facets of selected handloom clusters like raw material support, design inputs, up-gradation of technology, infrastructure development, marketing support, welfare of weavers etc.

The CCEA also gave its nod to the implementation of comprehensive handicrafts cluster development scheme at Moradabad in Uttar Pradesh and Narasapur in Andhra Pradesh.

With a budget provision of Rs 70 crore each cluster during the 11th five year plan, this scheme would enhance the competitiveness of handloom cluster in terms of access to technology, increased market share, ensure effective integration of scattered artisans and linking them to SMEs, generate additional livelihood opportunities etc.

These schemes will be implemented through public-private partnership model between central, state government, beneficiary weavers and their groups financially creditworthy and commercially linked marketing enterprises and the financial institutions for a period of five years beginning from 2008-09 up to 2012-13.