November 29, 2001

‘17B’

PROMOTION OF AGRO AND RURAL INDUSTRIES

        The Khadi and Village Industries Commission (KVIC) is implementing its programmes/schemes in all the States of the country including Uttar Pradesh, Bihar, Maharashtra and Jharkhand. Under the Rural Employment Generation Programme (REGP) of the KVIC, rural industries upto a project cost of Rs. 25 lakhs are being set up.

        Under the REGP 25% of the project cost upto Rs. 10 lakhs and an additional 10% of the project cost above Rs. 10 lakhs upto Rs. 25 lakhs is provided as margin money, which is in the form of a back ended subsidy. For weaker sections the margin money is higher at 30% of the project cost upto Rs. 10 lakhs.

        For the promotion of Village industries in the country including Uttar Pradesh and Jharkhand, the REGP will continue to operate in the 10th Plan period on a higher scale.

        This information was given by Shri Kariya Munda, Minister of Agro and Rural Industries in Rajya Sabha today, in a written reply to the question by Shri Munavvar Hasan.