Madhya Pradesh Handicraft and Handloom Development Corporation is a very important developmental undertaking of Madhya Pradesh Government. The main objective of the Corporation is to promote traditional crafts, to establish new crafts, to provide the agriculture labourers an additional source of income and to provide self-employment to unemployed young men and women by training them in crafts. Chhatwai - Shahdol branch of Madhya Pradesh Handicraft Development Corporation was founded in 1989-90 and 700 craftmen have been trained in different crafts so far. Special attention was given to Carpet craft.

Carpet crafts men are regularly provided employment through job work after training. Produced carpets are sold through the Emporium of the corporation and exporters. So far, 50,000 Sq. feet carpet has been produced. Bamboo craft and wood craft have already been started in Shahdol. There are 150 weavers in Sohagpur and Burhar blocks. There are a number of new Handicraft Schemes proposed in Shahdol. Among these proposed Schemes, Chhatwai Branch has undertaken the job of exporting 15,000 Sq. feet Carpet to Sweden. Besides this, a new Craft of Chindi Dari is also going to be started shortly.