27th February, 2003
Ministry of Rural Development  


RURAL INDUSTRIES DEVELOPMENT SCHEMES UNDER IMPLEMENTATION


RAJYA SABHA

The Government through the Khadi and Vilage Industries Commission (KVIC) promotes development of rural industries by way of financial, technical and managerial assistance. Besides, the Rural Employment Generation Programme (REGP) is implemented throughout the country. Under this scheme, 25 per cent of the project cost is provided as margin money. For project cost above Rs. 10 lakhs and upto Rs. 25 lakhs, the rate of margin money is 25 per cent of Rs. 10 lakhs plus 10 per cent of the balance cost of the project. For weaker sections, tribal areas, north eastern region, Sikkim, Andaman and Nicobar Islands, Lakshadweep, the margin money grant is 30 per cent of the project cost upto Rs. 10 lakhs and for balance amount ( upto Rs. 25 lakhs), it is 10 per cent. The beneficiary is required to invest his own contribution of 10 per cent of the project cost. In case of SC/ST and other weaker sections, beneficiary’s contribution is 5 per cent of the project cost.

To strengthen and encourage establishment of small industries related to khadi in the country, the Government has announced a package which consists of rebate policy for five years, option of rebate and Market Development Assistance (MDA), insurance cover to khadi artisans, creation of packaging and design facilities, measures to promote marketing, brand building, cluster development etc.