The government on Thursday proposed to set up a fund for regeneration of traditional industries with an initial allocation of Rs 100 crore (Rs 1 billion).

The details, including the mechanism for utilisation of funds, will be worked out in consultation with the industries concerned, Finance Minister P Chidambaram told the Lok Sabha while presenting the 2004-05 Budget.

The move was adopted recognising the great potential for growth and exports in some of traditional industries like choir, handloom, handicrafts, sericulture, leather, pottery and other cottage industries, he said.