cluster development approach to strengthen handloom sector

life insurance scheme to cover twenty lakh weavers

Monday, February 28, 2005

Success in the textile sector in the post-quota era will depend to a great extent on the scale of operation. Keeping this in mind, the Government proposes to adopt the Cluster Development Approach for the production and marketing of handloom products. The Ministry of Textiles will take up 20 clusters in the first phase at a cost of Rs.40 crore.

At present, the Government is implementing a Life Insurance Scheme for Handloom Weavers which provides an insurance cover upto Rs.50,000/-. So far, two lakh weavers have been covered. The Scheme intends to cover 20 lakh weavers in two years for which the Government will spend Rs.30 crore each year. The Government is also implementing a Health Insurance Package for weavers that has so far covered 25,000 weavers. It is proposed to extend the Scheme to two lakh weavers at a recurring cost of Rs.30 crore per year.

SB/MVVS/UM/RK-manufacturing