Question : AGRO AND RURAL INDUSTRIES IN UTTARANCHAL



(a) the number of Agro and Rural Industries operating in Uttaranchal;

(b) whether the Central Government proposes to have any scheme regarding establishment of more Agro and Rural Industries in the State especially in Haridwar during the current financial year;

(c) if so, the details thereof and if not, the reasons therefore;and

(d) the amount allotted to such industries during the year 2003-04 and 2004-05?

Answer given by the minister

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

(a): 1794 agro and rural industries have been set up in the State of Uttaranchal under the Rural Employment Generation Programme (REGP), implemented through the Khadi and Village Industries Commission (KVIC).

(b)&(c): To promote agro and rural industries in the country, including Haridwar, the Government has been implementing the REGP through the 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. Projects costing upto Rs. 10 lakh are entitled to margin money support of up to 25 per cent of the project cost. For projects costing above Rs. 10 lakh and upto Rs. 25 lakh, the rate of margin money support is 25 per cent of Rs. 10 lakh plus 10 per cent of the balance cost of the project for the general category of entrepreneurs. In the case of entrepreneurs from the categories like the weaker sections viz. the Scheduled Caste, Scheduled Tribes, Other Backward Classes and Women, Physically Handicapped, Ex-servicemen, Minority Community, etc., the margin money given is at the rate of 30 per cent of the project cost up to Rs. 10 lakh while for projects costing above Rs. 10 lakh and upto Rs. 25 lakh, the rate of margin money assistance is 30 per cent of Rs. 10 lakh plus 10 percent of the balance cost of the project.

(d): The details of the amounts released for implementing the REGP during 2003-04 and the amount allocated for the year 2004-05 in the State of Uttaranchal are as under:

Year	Amount Allotted (Rs. in lakh)
2003-04 979.70# 2004-05 570.00
# = Higher allotment was towards the settlement of pending claims of previous year.