“The Cabinet Committee on Economic Affairs today gave its approval for implementation of Comprehensive Handicrafts Cluster Development Scheme at Moradabad (Uttar Pradesh) and Narasapur (Andhra Pradesh) in order to enhance the competitiveness in terms of access to technology, increased market share, ensure effective integration of scattered artisans and linking them to SMEs, generate additional livelihood opportunities, provide linkages in terms of adequate infrastructure technology, product security and other such components during the 11th Plan with budget provision of Rs. 140 crore i.e. Rs.70.00 crore for each cluster,” the Minister of State in the Prime Minister Office Prithviraj Chavan told reporters after the meeting of the Union Cabinet.

The Minister said the scheme has broad components, such as technology Upgradation, product diversification, raw material banks, common facility centre, resource centre, market development, forward and backward linkages, and human resource in skill development, social security, physical infrastructure, export & marketing, margin money for working capital.

Elaborating the contours of the scheme Chavan said these components shall help in sorting out the challenges faced by the handicrafts sector which are complex and numerous. All existing schemes of the Development Commissioner (Handicrafts) as well as other complementary schemes available in other ministries will be utilized in the approved comprehensive cluster development scheme with a strong and proactive capacity building and technical assistance focus.

”The implementation of the Scheme will benefit the Handicrafts artisans by getting access to world class common infrastructure, developing / diversifying new designs and products, up gradation of their skills, techniques, providing a suitable workplace, market support, etc. to improve their earnings and socio-economic conditions,” the minister informed.

Chavan said the scheme would be implemented through Public Private Partnership (PPP) model in the form of collaboration between the Central / State Governments, beneficiary artisans and their groups, financially creditworthy and commercially linked marketing enterprises and the financial institutions for a period of four years beginning from 2008-09 up to 2011-12.#