MEASURES TO PROMOTE
RURAL INDUSTRIES
The Government
through the Khadi and Village Industries Commission (KVIC) under
the rural Employment Generation Programme (REGP) is encouraging
people to set up industries in rural areas throughout the country
for promoting rural industries including agro based industries
i.e. vegetable, fruit processing industries, herbal cosmetic,
medicinal plants based industries, etc. Under this scheme, 25%
of the project cost is provided as margin money for the project
cost upto Rs. 10 lakh. For project costs above Rs. 10 lakh and
upto Rs. 25lakh, the rate of margin money is 25% of Rs. 10 lakh
plus 10% of the balance cost of the project. For weaker sections,
the margin money is given at the rate of 30% of the project cost
upto Rs. 10 lakh and for the balance amount (upto Rs. 25 lakh)
it is 10%. This scheme is being implemented through Public Sector
Banks, Regional Rural Banks etc.
This was informed
by the Minister Agro and Rural Industries in a reply to a question
by Shri Nikhil Kumar Choudhary in Lok Sabha today. The Minister
said that the Government of India has also announced a package
for the promotion of Khadi and Village Industries Sector on 14th
May, 2001. The main feature of the package inter-alia include
rebate policy for Khadi for five years, option of Rebate or Market
Development Assistance (MDA) to Khadi Institutions, Insurance
cover to Khadi artisans, emphasis on improvement in quality of
products, creation of packaging and design facilities, measures
to promote marketing, brand building etc.
Shri Choudhary further
added in addition to this package, the National Programme on Rural
Industrialization (NPRI) Scheme of the Ministry provides financial
assistance to rural industrial clusters towards diagnostic studies,
skill upgradation and upgradation of common facilities. This scheme
is being implemented in collaboration with NABARD, SIDBI, KVIC
etc.
