GOVERNMENT INITIATES RURAL BUSINESS HUB ON PPP MODEL

The Government, in association with the Confederation of Indian Industries (CII) has undertaken an initiative to promote Rural Business Hubs (RBH), first of its kind, based on Public-Private-Partnership (PPP) model to facilitate direct business linkage between industry and the rural community. CII and the Khadi & Village Industries Commission (KVIC) under the Ministry of Micro, Small & Medium Enterprises are converging their efforts under the RBH initiative of the Ministry of Panchayati Raj. A Memorandum of Cooperation between the Ministry of Panchayati Raj and KVIC and a Memorandum of Understanding between CII and KVIC were signed in New Delhi on 4^th August 2008, in the presence of the Minister for Micro, Small & Medium Enterprises, Shri Mahabir Prasad, Minister for Panchayati Raj, Shri Mani Shankar Aiyar and DG, CII Shri Chandrajit Banerjee. 

The objective of this joint working include generating rural employment, higher and sustained income for rural producers by better marketing of products through convergence of Schemes and efforts of KVIC and Panchayats. 

Under this initiative, Panchayats and KVIC/KVIB will jointly identy potential projects that can be supported under KVIC schemes and also extend marketing support through the corporate members of industry working on the RBH initiative. KVIC will also extend its Rural Industries Consultancy Services (RICS) to potential beneficiaries for project formulation and linkages with banks. Such proposals will be processed through the fast track system. Wherever required, skill development/skill upgradation training will be provided to the potential beneficiaries by KVIC through accredited training agencies. Cell for Skill Development of CII will support Skill Development requirements for SMEs. Ministry of Panchayati Raj will facilitate the Panchayats to set up Common Facility Centers and other minor infrastructure by converging resources from various Schemes.  Panchayats will also provide backward linkages in terms of identifying genuine beneficiaries for the KVIC Schemes.