Rural business hubs - Backgrounder

for Ministry of Panchayati Raj | Date - 02-09-2005


The concept of Rural Business Hubs, as outlined at the National Presentation of Rural Business Hubs organized by the Ministry of Rural Development and Panchayati Raj last year is taking shape in the state of Uttaranchal in the area of canning and value addition of seasonal fruits. Confederation of Indian industry (CII) has initiated steps for establishing canning and fruit processing centres in a big way in coordination with the existing small canning units in the state. As observed by Prime Minister Dr. Manmohan Singh at the National Presentation of Rural Business hubs last year, “technological possibilities to break new grounds in increasing productive capacity of small farms and small businesses need to be fully harnessed. Gandhiji’s vision of decentralized production is not only an ethical idea, but also a viable economic option”. The effort of the ministry of Panchayati Raj in heralding private- public- Panchayat -partnership is the right step in this direction. This will also integrate rural areas into modern economic processes that are rapidly transforming the country.

As a first step the ministry has selected as focus nine States for facilitating establishments of rural business hubs utilizing locally available natural resources or skills through technology upgradation. The States selected are Uttaranchal, Kerala, Karnataka, Jammu and Kashmir, Punjab, Rajasthan, West Bengal, Uttar Pardesh and Assam. In order to facilitate the establishment of Rural Business Hubs in these States one official either from the CII or from the Ministry Panchayati Raj has been assigned the responsibility of taking up facilitation process in the State concerned.

This Rural Business Hubs are planned on Chinese Model of Town and Village Enterprises (TVEs) and the Thailand Model of “One Tambon One Product” (OTOP) Project. In Thailand one product from one district will be selected for value addition and marketing. Unique raw materials are drafted into products in an attractive manner designed to capture the attention of consumers. Care is taken to see that the items are manufactured using quality products that meet international standards while preserving the heritage of the particular region. The underlining concern of environmental protection is kept in mind during the manufacture and marketing of the items. In Thailand handicrafts are the main items of OTOP product. The project is to create master works such as clothing, household products, accessories and other decorative items to suit every society and life style.

The Ministry of Panchayati Raj has suggested development of “One Block One Product” (OBOP) on the pattern of Thailand Model OTOP. Selected products will be developed in a Block that already has inherent skills and potential for marketing. These products will be sold through marketing linkage provided by stakeholders like Government Agencies and private entrepreneurs. The National Presentation on Rural Business Hubs organized by the Ministry of Panchayati Raj last year identified several subjects for development, namely, agriculture, horticulture, bamboo products, khadi and village industries, handicrafts, rural fashion, handlooms and garments, bio-diesel generation through Jatropha cultivation, power generation through bio-mass etc. Presentation on these subjects were made for the benefit of more than one thousand elected representatives of Panchayati Raj Institutions from States and Union Territories as well as representatives from about 200 industries. The presentations brought out the enormous possibilities for a constructive partnership between Panchayat and industry to the benefit of both. In agriculture there is scope for taking advantage of Panchayats to assist and meet local needs for supplying inputs, storage and post harvest needs, direct procurement of crops and for marketing agriculture products.

The Ministry of Panchayati Raj has set up task forces for conceptualising Rural Business Hubs in specific areas of development. The reports of task forces would be submitted to an Executive Committee which would look into specific tasks regarding thrust areas where Panchayats could be encouraged to set up Rural Business Hubs. A second Presentation on Rural Business Hubs will also be held by the end of this year.

SBK:CP:RBH2.9
(Release ID :11780)

(This is an archive of the press release and has not been edited by our staff.)