Handlooms and Textiles


The Department of Handlooms and Textiles is being implementing various schemes of State and Central Governments for the development of Handlooms, Powerlooms, Readymade Garments Textile mills and overall sector in the State.



Integrated Handloom Development Scheme-IHDS Cluster.

This is a Centrally Sponsored scheme formulated during XI Plan by merging the essential components of Deen Dayal Hathkarga Prothsahan Yojana Integrated Handloom Training Project, Workshed cum Housing Scheme and Integrated Handloom Clustur Development Scheme implemented during X Plan.

Objective of the Scheme are

To focus on formation of handloom weavers’ groups as a visible production group in a selected handloom clusters.

To assist the handloom Weavers Groups for becoming self-sustainable.

  1. An inclusive approach to cover weavers both within and out side the Cooperative fold.
  2. To up-grade the skills of handloom weavers/workers to produce diversified products with improved quality to meet the market requirements.
  3. To provide suitable work place to weavers to enable them to product quality products with improved productivity.
  4. Market orientation by associating entrepreneurs, designers and professionals for marketing, designing and managing the production.
  5. To facilitate process of credit from financial institutions / banks.
  6. To encourage Co-operativization of weavers.
  7. Holistic and flexible interventions to provide need based inputs specific to each cluster / group.

2) Group Insurance Scheme (Mahathma Gandhi Bunkar Bima Yojana)

This is a Group Insurance Scheme for handloom weavers being implemented through LIC of India. All type handloom weavers (K.H.D.C., Co-ops.and unorganized) between 18 to 59 years of age are eligible to be covered under the scheme.

Apart from the above benefits, scholarships are provided for weavers children under Shikshak Sahayog Yojana from LIC. To assist the handloom weavers 50% of their annual premium contribution i.e., Rs.40/- per weaver beneficiary is being given by the State Government.

3) Health Insurance Scheme : (ICICI Lombard)

Health Insurance Scheme for handloom weavers is being implemented through ICICI Lombard General Insurance Co.Ltd. The scheme enables the weaver community access to the best of health care facility. The scheme covers weaver, spouse and two children. It covers all pre existing diseases as well as new diseases and keeping substantial provision for OPD.


      1. Pay/ remburse expenses incurred by theweavers in course of medical treatment
      2. Annual limit per family (1+3) is – Rs. 15000/-
      3. Sub limits per family


Assistance to Handloom Co-operatives:-

Under the scheme assistance will be provided for the development of Handloom Co-operatives, Weavers and Institutions.

(a) Nekarara Kalyana Yojane:-

The assistance will be provided to the weavers / children of weavers for the following components.

(i) Health Scheme:

      1. Reimbursement of the medical expenditure for treatment of Cancer (maximum limit Rs.50.000/-) and financial assistance of Rs.500 per annum during the treatment Period.
      2. Reimbursement of the medical expenditure for treatment of Heart operation and transplantation of Kidney (maximum limit Rs.50.000/-) and financial assistance of Rs.500/- per annum during the treatment period.
      3. Financial assistance to mentally retarded and leprosy patients (Rs.500/- per annum).
      4. Rs.1000/- will be paid to the family members for cremation of the deceased weaver.

(b) State Level Exhibition

Assistance to Weavers/ Weavers Co-op. Societies to participate in National/State level Exhibitions and to organize State level Exhibitions

4) Marketing of Handloom Product (20% Rebate on sale of Handloom Products) – Co-ops and KHDC.

A rebate of 20% is provided under the scheme on the sale of Handloom products by KHDC and Primary Handloom Weavers Co-operative Societies and Cauvery Handlooms during the designated 135 days of the year.

5) Share capital assistance to Powerloom Co-ops.

The scheme is intended to encourage rural artisans to form powerloom co-operatives so that assistance in the form of purchase of raw-materials and marketing could be rendered to the artisans through the societies. For this purpose, societies will be assisted in the form of share capital to meet the margin money requirements and also to increase borrowing capacity of the societies.

6) Thrift Fund Scheme for Handloom Weavers

The original CSS scheme encourages the weavers to cultivate the habit of savings. Under the scheme 8% of the wages earned by the weavers are collected as subscription to the fund. An equal matching contribution of 8% State Government is remitted to the fund. The scheme is operated through the Treasury. The State Government provides 12% interest on the total contribution.

The beneficiary can draw advances to meet expenses in connection with marriage, house construction, medical expenses and education for children. The final amount becomes payable, along with interest, after completion of 15 years as subscriber to the fund (or) on his/her becoming totally incapacitated to work due to old age (or) after attaining the age of 60 years.

7) Distribution of Saree, Dhothi to Weaker Sections

The State Government has introduced the scheme with the twin objective of providing continuous employment to the weavers of KHDC and to provide basic clothing to the weaker sections at affordable prices. Sarees, Dothies produced under the Scheme by Karnataka Handloom Development Corporation are distributed to the weaker sections in rural areas and urban slums through Public distribution system.

8) Weaver’s special Package

The State Government, after examining the problems faced by the weavers, had announced the Weavers Special Package which included several benefits to the weavers during 2003-04. During the current year, following schemes under Weavers Special ackage are being implemented.

9) Suvarna Vastra Neethi (2008-13)- Implementation of Garment Policy

State Government has announced Suvarna Vastra Neethi (New Textile Policy) 2008-13 vide Government Order No.CI/47/Jakaiyo/2008,dt.1-10-2008 for overall development of the Textile sector in the State. Highlights of the Policy are as under:

Objectives :

Overall development of Textile sector with emphasis on Ready made garments

Employment generation Special thrust on Women, educated and nuneducated youth of rural and backward areas

Backward taluks development

      1. Skill development in Textile activities
      2. Dispersal of Textile Industries to backward areas hitherto getting concentrated around Bangalore
      3. Technology upgradation and Capacity building of Textile Industries
      4. Economic development of the State

Sectors covered :-

      1. Readymade garments
      2. Handlooms
      3. Powerlooms
      4. Spinning
      5. Knitting
      6. Processing
      7. Technical textiles
      8. Textile machinery manufacturing

Implementation methodology :-

      1. Zoning of Taluks – Zone-1, Zone-2 and Zone-3
      2. Various Incentives for attracting investment
      3. Higher incentives for backward taluks
      4. Special thrust on Skill development
      5. Special assistance for development of existing Training centers and establishment of new Skill Development Center
      6. Strengthening of Single Window mechanism for speedy clearance of Textile projects

10) Living cum workshed:

As per Government order No. Vakai 37 Jakaiyo 2009 Dated 28.10.2009, and during the budget speech 2012-2013 Govt. has announced unit cost of Rs.95,000/- per living cum workshed, the Government will give assistance of Rs. 75,000/-, the beneficiaries contribution will be Rs. 5,000/- and the remaining Rs. 20,000/- will be the loan component. With simple rate of interest and repayment in ten years half yearly for the constriction of living com workshed.

Office Address

Office of the Joint Director,

Mysore Division / Zone

Dept. of Handlooms and Textiles,

Shiradi Saibaba Nagar,

Near TUDA Office,

Belagumba Road,