Question : RURAL BASED INDUSTRIES



(a) whether there is any proposal to set up rural and agro based industries in the backward districts of Tamil Nadu;

(b) if so, the details of such industries location-wise; and

(c) if not, the reasons therefor?

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) to (c): The Khadi and Village Industries Commission is implementing its margin money scheme throughout the country, including Tamil Nadu. Under this scheme, margin money at the rate of 25% of project cost is provided for the project costing upto Rs. 10 lakhs. For project cost above Rs. 10 lakhs and upto Rs. 25 lakhs, the rate of margin money is 25% of Rs. 10 lakhs plus 10% of the balance cost of the project. For the weaker sections, the margin money is given at the rate of 30% of the project cost upto Rs. 10 lakhs and for the balance amount (upto Rs. 25 lakhs) it is 10%.