Question : SURVEY TO SET UP AGRO AND FOREST BASED INDUSTRIES



(a): whether any survey has been conducted for setting up of agro-based, forest-based, herbal & medicinal plant-based industry in the country;

(b): if so, the details and the outcome thereof; and

(c): if not, the reasons therefor?

Answer given by the minister

MINISTER OF SMALL SCALE INDUSTRIES & AGRO AND RURAL INDUSTRIES (SHRI MAHABIR PRASAD)

(a)to(c): Specific surveys have not been conducted, according to available information in this regard. However, to promote agro and rural industries including agro-based forest-based, herbal and medicinal plant-based industry in the country, the Government has been implementing the Rural Employment Generation Programme (REGP)through the Khadi and Village Industries Commission(KVIC). Under this programme, an entrepreneur can establish a village industry by availing of margin money assistance from the KVIC and loans from any public sector scheduled commercial bank, for projects with a maximum cost of Rs. 25 lakh.

The permissible margin money assistance is as detailed in the table below:

Margin Money Assistance under REGP
Sl.No. Category of Beneficiary Project Cost Margin money Assistance
1 General Upto Rs. 10 lakh 25% of project cost
2 SC/ST/Women/Ex-Serviceman/NE Upto Rs. 10 lakh 30% of project cost Region/Hill Areas
3 General Rs. 10 lakh and Rs. 2.5 lakh + 10% of Upto Rs. 25 lakh balance project cost
4 SC/ST/Women/Ex-Serviceman/NE Rs. 10 lakh and Rs. 3 lakh + 10% of Region/Hill Areas Upto Rs. 25 lakh balance project cost



Under the REGP, the number of agro and food processing industries and forest-based industries including herbal and medicinal plant- based industries set up in the country and employment generated in this sector during last three years is as in the table below:

Year Agro and food processing industries Forest based industry, including herbal and medicinal plant based industry
No.of Employment No.of Employment projects (No.of persons) projects (No.of persons) set up set up
2001-02 5467 71846 1607 23528 2002-03 5330 79578 3666 53320 2003-04 5130 32560 2371 118235