Rural Business Hubs

Rajya Sabha

The Ministry of Panchayati Raj is implementing a Scheme of Rural Business Hubs (RBHs) for promoting manufacturing of products using raw materials/skills available in the rural areas. Some of these products may reach the export market as well. The scheme works on a 4P (Public-Private-Panchayat-Partnership) model and is applicable in all the BRGF districts and all the districts in the North Eastern Region. Setting up of RBHs is primarily done through convergence of resources from various ongoing schemes. Assistance under the RBH scheme is available for professional support services, training/skill development and for purchase of minor equipment.

This was informed by the Minister of Panchayati Raj Dr. C.P.Joshi today in reply to a written question in Rajya Sabha today.

The Minister also said that the Ministry of Panchayati Raj has signed a Memorandum of Cooperation (MoC) with Export Import Bank of India for the purpose of enhancing export possibilities of products sources from RBHs. Key activities covered under the MoC are (i) Facilitating identification of suitable exporters, willing to locate their production activities in rural areas, (ii) Fostering a mutually beneficial business relationship between such exporters and rural producers, availing of the support and facilitation of Panchayat, (iii) Facilitating wider visibility and promotion of identified products of RBHs in international markets by linking these products to EXIM Bank’s rural portal and by displaying such products at the overseas offices of EXIM Bank, (iv) Familiarizing select RBHs with the process of obtaining Ethical Trading, Fair Trade, Organic certification etc. so that market realization is better.

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