Bhubaneswar, June 24: The state government will set up an incubation centre here for young entrepreneurs from Odisha to mentor start-ups in the handloom sector.

The centre, a first-of-its-kind initiative for the state, will help entrepreneurs who want to make a mark in the apparel industry, devise business plans and also provide infrastructure to kick-start their enterprise.

"There are a number of young minds who want to work with the state's traditional fabrics and create something new. The aim of the centre is to provide a host of services to new enterprises and facilitate links that are congenial for their survival and growth," said joint secretary of the handloom and handicrafts department Raja Parija.

The central government will fund the project, estimated to cost around Rs 12 crore. Work on the centre has already begun on a one-acre plot near KIIT University. "We have set a target of three years to complete the project," Parija added.

He said the target was to strengthen incubation activities to aid indigenous development of handloom and handicrafts products in the long run.

"There is a provision for a three-storied building under the central scheme. However, the state government has planned to put in more funds for a larger space to enhance production in other sectors as well," added Parija.

The centre will provide soft loans and also help the entrepreneurs reach out to corporate houses and other agencies for sponsorships to back their programmes.

Candidates for the centre will be selected on the basis of the proposals that they submit to the government. A committee of experts would evaluate the proposal and weight their technical merits, commercial viability and innovation.

The department has also planned to set up 10 raw-material testing laboratories across the state for quality testing of handloom materials. The laboratories would test the quality of yarns, colours, count and the features of fabrics and products.

There are also plans for a fabric library at Boyan Bhavan in Bhubaneswar, where works of prominent weavers from the state would be displayed for upcoming weavers to get training on various design patterns.

The library would also be promoted as a tourist attraction.