Question : PROMOTION OF AGRO RURAL INDUSTRIES



(a) whether the Government are fully satisfied with the measures taken to promote agricultural and rural industries under the Ninth Five Year Plan; and

(b) if so, the extent to which the rural areas have been benefited from it alongwith the total amount invested in this regard in the State and in particularly Uttar Pradesh?

Answer given by the minister



THE MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF SMALL SCALE INDUSTRIES AND AGRO AND RURAL INDUSTRIES (SMT. VASUNDHARA RAJE)

(a): Yes, Sir.

(b): Under the Rural Employment Generation Programme (REGP), the KVIC provides assistance in the form of margin money at the rate of 25% of the project cost upto Rs. 10 lakhs and an additional 10% for project costing between Rs. 10 lakhs to Rs. 25 lakhs. For weaker sections, margin money is given at the rate of 30% of the project cost upto Rs. 10 lakhs and 10% for the balance amount (upto Rs. 25 lakhs). Under this programme, the margin money is provided by the KVIC and the loans are provided by the Banks etc. The KVIC has disbursed for Khadi and Village Industries Sector a sum of Rs. 5667.92 lakhs as grant to the State of Uttar Pradesh and generated a cumulative employment of 12.00 lakh persons upto 1999-2000.