Rural Business Hubs Scheme

Since the inception of the Central Sector Scheme of Rural Business Hubs (RBHs) in 2007-08, the Government has released a total of Rs. 540.45 lakh upto the period 2011-12 for the Scheme. Rs. 86.17 lakhs was released for the period 2010-11. For the period 2011-12, 13.32 lakhs has been released till date.

The Ministry of Panchayati Raj has been implementing a Central Sector Scheme of RBHs for promoting manufacturing of products using raw materials / skills available in the rural areas. 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. RBH is a demand driven scheme and, therefore, no targets can be fixed under the Scheme. There is no State-wise allocation of funds. The financial assistance is provided to the Implementing Agencies in two installments keeping in view the viability of their projects and proper utilization of the funds released.

The above information was given by the Minister of Panchayati Raj Shri V. Kishore Chandra Deo in a written reply in the Lok Sabha today.