| Vajpayee: Generous
New Delhi, March 7: The Prime Minister is likely to announce a major credit package for rural industries through the rural employment generation programme (REGP) later this month.
To drive this, the total margin money utilisation in REGP of the government, which is currently to the tune of Rs 190 crore, is slated to be raised by about five times to about Rs 1000 crore, sources said.
The ‘margin money scheme’ of REGP envisages that 25 per cent of the cost for projects up to Rs 10 lakh will be provided as ‘margin money’. For projects above Rs 10 lakh and up to Rs 25 lakh, the rate of margin money will be 25 per cent of Rs 10 lakh plus 10 per cent of the remaining cost of the project.
The Khadi and Village Industries Commission (KVIC) launched REGP merging all employment generation programmes of KVIC from April 1995. At the same time, the interest subsidy scheme was replaced under village industries by a one-time margin money grant for viable projects.
REGP is not only a poverty alleviation programme but a compendium of all other such schemes under KVI sector which were merged with REGP with the primary idea of promotion of rural industrialisation and employment generation.
The three-day national convention on rural industrialisation will be deliberating on some of the key issues like khadi, rural employment generation programme, science and technology, marketing, artisan upliftment and simplification in delivery process by KVIC.
Finance minister Jaswant Singh and the minister for agro and rural industries may attend the convention. Delegates from various sectors, including artisans and entrepreneurs and institutions like the RBI, Nabard, Sidbi and IDBI will join the meet.
KVIC, which decentralised the implementation of REGP to its states or regional offices to facilitate faster growth, also introduced backward and forward linkage facilities to implement the scheme in all states or regions besides granting margin money.