Karnataka Silk Industries Corporation (KSIC) to set up a second composite silk weaving factory at the cost of Rs.24 crore on its premises in Mysuru.

Chief Minister Siddaramaiah presenting the state budget 2017-18 in Bengaluru on Wednesday said that Rs.5 crore will be provided to KSIC to establish the factory.

The proposal to establish a mega silk cluster in collaboration with the Government of India also finds mention in the budget. It is expected to come up on 10 acres of land at Belavadi on the outskirts of the city.

The cluster will house common facilities for silk-twisting, fabric dying, and common effluent plant for the benefit of weavers, who will run the cluster by forming a special purpose vehicle.

About 20 to 25 entrepreneurs from Mysuru and surrounding areas had evinced interest in becoming part of the venture.

Listing out the achievements of sericulture sector in the State during the last four years, Mr. Siddaramaiah said that Karnataka has maintained its numero uno position in silk production in the country by producing 36,146 tonnes of silk.

The KSIC factory at T. Narsipur near here manufactures raw silk yarn, the weaving factory in Mysuru manufactures silk saris and other products.

The silk weaving factory in Mysuru had been established in 1912 by the then maharaja of Mysore before it was taken over by the government.