New Delhi, Sep 21 (IANS) An alumni group of the Indian Institute of Technology (IIT) has come up with a proposal to start a cotton spinning factory in Maharashtra's Yavatmal district - one of the worst-hit by farmers' suicides.

In a proposal which is under consideration of the Panchayati Raj Ministry, IIT alumni association 'Pan IIT' proposed to start a business initiative which will provide employment opportunities and give growth momentum to the area.

'Yavatmal is a cotton growing area. The new technique will facilitate setting up a spinning and milling factory at a very low cost - giving opportunity to the local people,' Pradeep Gupta, the chairman of the CyberMedia Group and founding member of Pan IIT, said Tuesday.

'Presently, there are no factories to spin the local cotton. A mini plant will be set up only at the cost of Rs.50 lakh instead of crores spent usually on such projects,' he said.

'This will convert the local cotton in yarn and with time, a lot of ancillary industries will come up boosting the local economy,' he added.

Among the several social projects being run by the 200,000-member alumni group is 'Reach out for India' - a rural outreach programme.