Rs.4.2 bn sanctioned for handloom, powerloom clusters

New Delhi, Nov 20 (IANS) A cabinet panel Thursday sanctioned Rs.4.2 billion ($80 million) for developing handloom and powerloom clusters in six cities across the country to 'meet the discerning and changing market demands both at domestic and at the international level and raise living standards of weavers and artisans'.

Each cluster would receive Rs.700 million, Minister of State in the Prime Minister's Office Prithviraj Chavan told reporters here after a meeting of the cabinet committee on economic affairs presided over by Prime Minister Manmohan Singh.

The handloom clusters would be located at Moradabad, Varanasi (both in Uttar Pradesh), Sibsagar (Assam) and Narasapur (Andhra Pradesh), while the powerloom clusters would be located at Bhiwandi (Maharashtra) and Erode (Tamil Nadu).

'The scheme has broad components such as technology upgradation, product diversification, raw material banks, common facility centres and margin money for working capital,' Chavan said.

'The clusters would also provide road connectivity and transportation facilities,' he added.

The scheme will be implemented through the public private partnership (PPP) model between the central and state governments, the beneficiary weavers and their groups, financially creditworthy and commercially linked marketing enterprises and the financial institutions for five-year period from 2008-09 to 2012-13.