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The Prime Minister, Dr. Manmohan Singh, has called upon the private and public sector entrepreneurs to invest in rural areas for developing them into Rural Business Hubs making use of the local resource endowments. Addressing the valedictory session of the National Presentation on Rural Business Hubs – Economic Empowerment Through Panchayats, organized jointly by the Confederation of Indian Industry and the Ministry of Panchayati Raj here today, he said that for ensuring inclusive and equitable growth, there was need to integrate the rural areas into modern economic processes. “We cannot allow India to be divided into two distinct zones – one a modern, competitive, prosperous one and the other a stagnant, backward one”, he added. He complimented the Ministry of Panchayati Raj for establishing Rural Business Hub, which he suggested at the Chief Ministers’ Conference.
The Prime Minister said that the private sector has been hesitant to venture into the rural areas for want of local partners and the panchayats had not approached the private sector for participation in rural development because they hardly knew where to go for establishing contact with potential private entrepreneurs. “There is no reason why panchayats cannot be the DISCOMS of rural India, which can ensure better supply of power, better bill collection, and overall higher consumer satisfaction. Similar possibilities exist in the field of rural credit and finance where banks need to address the constraints that bedevil our existing institutional mechanisms. Could Panchayats be explored as alternative credit delivery and loan recovery agencies?”, he added. The Prime Minister referred to the emergence of a Panchayati Raj ‘biradari’, which is evolving by consensus. He also pointed to the enormous potential in the agro industry and rural industry for transforming the rural economy.
Speaking on the occasion Shri Mani Shankar Aiyar, Minister of Panchayati Raj and Petroleum & Natural Gas, said that Panchayats could become self-reliant entities by making use of locally available resources with expertise and investment by industrial houses. The cooperation between industry and Panchayati Raj could demonstrate how Indian model business hubs could be created for the benefit of the rural areas and public or private sector industries.
Earlier, in his welcome address, Shri Mahabir Prasad, Minister of Small Scale Industries and Agro & Rural Industries, assured full support to the Panchayati Raj institutions for developing small scale industries in their areas using locally available resources. He also suggested cooperation between the two Ministries in this endeavour.
The National Presentation on Rural Business Hubs is being attended by a large number of elected representatives of Panchayats from States and Union Territories.
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