National Program of Rural Industrialization in India 1999-2000.

The setting up of rural industrial units is primarily the concern of private entrepreneurs. However, the Central Government have formulated many schemes for the development and promotion of such units throughout the country.

The Finance Minister in his Budget Speech for 1999-2000 announced the National Program for Rural Industrialization (NPRI). This is to promote clusters of units in rural areas aiming to set up 100 rural clusters in each year.

Office of the Development Commissioner (SSI) has been designated to coordinate the programme with various Ministries/agencies who are also engaged in similar programme. No separate budgetary allocation was made for the purpose.

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It was, therefore, decided to coordinate and synergies the efforts being made by various Ministries/ Departments/ organizations and the State Governments so as to have a concerted effort towards setting up rural clusters.

Khadi & Village Industries Commission has taken up 50 rural industrial clusters for development during the year 1999-2000. SIDBI also has selected 25 clusters for development.

The rest have been taken up by Office of the DCSSI, NABARD and the States. The implementation of the programme is being done at district level by an implementing committee under the District Magistrate with members from other related Ministries/ agencies.

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A state level Committee has also been constituted under the Chairmanship of Secretary, Industrial/ Rural Development to oversee the implementation of the programme.

A Third Committee at National level has been constituted under the Chairmanship of Development Commissioner (SSI) to formulate policy and guidelines, set up target for the year and coordinating among the heads of the various Ministries/ agencies.

The identification of cluster has already been completed and diagnostic studies taken up for identifying the needs of the cluster. On the basis of the diagnostic studies, implementation strategy will be drawn up.

In some cases, implementation is already under way. The resources/ funds needed for the programme are being pooled from various Ministries/agencies.

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Integrated Infrastructural Development (IID) Centers.

Besides this, Central Government formulated another Scheme for setting up Integrated Infrastructural Development (IID) Centers in rural and backward areas of the country since the 8th Five Year Plan Period. During the 8th Five Year Plan a target of 50 such IID Centers were set.

During the 9th Five Year Plan also the scheme has been allowed to continue. Under this scheme, the Central Government provides aid in the form of grant up to Rs. 2.00 crores (Rs. 4.00 crores in case of North-East Regions) for a project with an investment of Rs. 5.00 crores excluding the cost of land to State Governments for setting up IID Centers, there is a provision of loan from SIDBI upto Rs. 3.00 crores.

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A project of 15 to 20 nq. is expected to accommodate about 400 Small Industrial Units in rural and backward areas.

The cost over and above Rs. 5.00 crores is borne by the State Government who are expected to select appropriate site for the project and implement through an Implementing Agency of their own.

A statement showing the IID Centers which have already been sanctioned so far, is enclosed.

The board has taken several steps for the development of coir industry in India through implementing various schemes under the following activities:

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  • Science & technology and training.
  • Domestic market development.
  • Export promotion and trade information service.
  • Welfare measures.
  • Qualify improvement.
  • Development of brown fiber sector.
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