Central Government today sanctioned a sum of Rs230 crore for supporting over 27 lakh handloom weavers for the next five years. Approved under the marketing and export promotion scheme, the aid will tremendously contribute to strengthening the textile industry.
"The Cabinet Committee on Economic Affairs gave its approval for implementation of a centrally sponsored scheme on marketing and export promotion during 11th plan period (2007-12) with an outlay of Rs230 crore," Finance Minister P Chidambaram told reporters after the CCEA meeting.
Of the sum approved, a total of Rs205 crore have been set aside only for handloom marketing, while the remaining amount will be utilized for export promotion.
Marketing of handloom products will include hosting exhibition, events, setting up urban haats, marketing complexes and creating awareness. Export promotion on the other hand will take charge of export projects, fairs and exhibitions, product diversification and setting up of design studios.
The present appreciation of about 12 percent in rupee value has compelled weavers to ask Government for relief measures. Considering the plea, Finance Minister has exempted exports of handloom products from service taxes.
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