Tamil Nadu Government has decided to collaborate with the Centre and invest around Rs15 crore for the development of sericulture in the state.
The project will add around 10000 acres of land where rearing sheds and multi-end reeling units will be set up.
Minister for Khadi, K Ramachandran, told the press, "The Central Silk Board has given sanction to establish one Automatic Reeling Unit at Gobichettypalayam at a cost of Rs2.8 crore and will grant a sum of Rs50 lakh for this purpose."
Restoring the closed government, private and public sector units is being considered.
Government has also announced a health insurance scheme of Rs30,000 under natural death and Rs60,000 under accidental death for handicraft artisans.