Lok Sabha Question No. 393 (STARRED), answered on 2018-03-22
Subject: Manufacturing Potential in Rural Areas
Ministry: PANCHAYATI RAJ
Asked by: SHARAD TRIPATHI

## GOVERNMENT OF INDIA

## MINISTRY OF PANCHAYATI RAJ LOK SABHA STARRED QUESTION NO. *393 TO BE ANSWERED ON 22/03/2018

## Manufacturing Potential in Rural Areas

## †*393.  SHRI SHARAD TRIPATHI:

## Will the Minister of PANCHAYATI RAJ be pleased to state:

- (a) whether the Government proposes to tap the manufacturing potential in rural areas by using the raw material available there and export the finished products so that the rural people can get employment and the economy of the villages can be improved under Rural Business Hub Scheme;
- (b) if so, the details thereof;
- (c) whether the Government has signed any Memorandum of Understanding with any agency/ organization for the export of products from the rural areas;
- (d) if so, the details thereof; and
- (e) the other steps taken by the Government to encourage the rural people to improve their financial condition at the panchayati level under the said scheme?

## ANSWER

## MINISTER OF PANCHAYATI RAJ (SHRI NARENDRA SINGH TOMAR)

- (a) to (e)   A statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN PARTS (a) to (e) OF REPLY TO LOK SABHA STARRED QUESTION NO. 393 FOR 22.03.2018, REGARDING MANUFACTURING POTENTIAL IN RURAL AREAS

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(a)    to  (e):      The  Ministry  of  Panchayati  Raj  (MoPR)  had  implemented  the  scheme  of  Rural Business Hub (RBH) during the 11 th Five Year Plan Period (2007-2012) with the objective to promote businesses using raw materials as well as skills available in the rural areas, by linking them with industry and marketing organizations so that such products get the benefit of value addition and their marketability is increased. The entire process of RBH scheme was facilitated by Panchayati Raj Institutions (PRIs). Under the scheme, the Ministry extended financial support upto Rs.25 Lakhs for viable projects and the balance project cost had to be converged through other Central/State Government Schemes/Financial Institutions.

Under  the  said  scheme,  the  Panchayati  Raj  Institutions  (PRIs)  were  encouraged  to identify skills and endowments of rural people as well as natural resources in the Panchayat area. Based upon the assessment, joint awareness programs could be organized to bring together the business interest and the community on a common platform and thereby facilitate acceptance of business plan by local stakeholders. PRIs could also dovetail and converge government schemes with the initiative, or provide infrastructure support to ensure better livelihood opportunities for the rural community, better incomes and better and more sustainable use of local resources.

Under the RBH, Memorandum of Understandings (MoUs) were entered into by business enterprises with PRIs in accordance with the guidelines of the scheme in such  diverse fields as fruit  processing,  power  generation  and  distribution,  Jatropha  bio-fuels,  handicrafts,  carpet weaving,  stone  carving  etc.  Besides,  this  Ministry  had  also  a  Memorandum  of  Cooperation (MoC) with EXIM Bank for the purpose of enhancing export possibilities of products sourced from RBHs.

The scheme of RBH was implemented during the year 2007-2012 and therefore, no steps obviously for any purpose can be taken under the above mentioned defunct scheme.

However,  Under  the  restructured  scheme  of  Rashtriya  Gram  Swaraj  Abhiyan  (RGSA) appraised  by  Expenditure  Finance  Committee  (EFC)  for  implementation  in  the  next  financial

year,  there  is  component  for  assistance  to  States  for  project  based  support  for  economic development  and  income  enhancement  through  Panchayats  /  cluster  of  Panchayats  to  create sustainable  livelihood  systems  and  income  enhancement avenues in rural areas, and transform cluster of Gram Panchayats to become growth centers for local economy. Under this initiative, Panchayats may  assume  supportive role in providing marketing support for secondary agriculture, as well as minor produce including medicinal plants, bamboo, handloom, handicraft etc. Financial assistance will be limited to viable gap funding which is not available under any other scheme or requires more resources in critical areas.

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