The Central government will consider a special assistance package to preserve and promote the traditional handloom sector in Kerala, Union Minister of State for Textiles Panabaka Lakshmi said here on Friday.

Replying to a reception accorded by employees and workers of the Kerala State Handloom Weavers Cooperative Society (Hantex), she said that the Ministry was working on the proposal for a concession in the Central package to resolve the financial liabilities of Hantex.

Hantex president Peringamala Vijayan, managing director Abdul Haleem, vice-president C.Madhavan, governing committee members, and senior officials were present.

Once a major source of employment in the industry-starved Kerala, the handloom textile sector is in the doldrums because of various factors.