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The concept of Rural Business Hubs (RBH) is taking final shape with Uttaranchal and Rajasthan taking keen interest in transforming their village economy by utilizing local skills and local resources in small manufacturing and processing units. Nine states have already been selected by Ministry of Panchayati Raj for facilitating establishment of rural business hubs utilizing locally available natural resources or skills through technology upgradation. The States selected are Assam, Jammu and Kashmir, Karnataka, Kerala, Punjab, Rajasthan, Uttaranchal, Uttar Pardesh and West Bengal .
Rural Business Hubs are planned on the Chinese Model of Town and Village Enterprises and the Thailand Model of “One Tambon One Product” (OTOP) Project. Unique raw materials are drafted into products in an attractive manner designed to capture the attention of consumers. The Ministry of Panchayati Raj has suggested development of “One Block One Product” (OBOP) on the pattern of Thailand Model OTOP. Selected products will be developed in a block that already has inherent skills and potential for marketing. These products will be sold through marketing linkage provided by stakeholders like government agencies and private entrepreneurs. The Ministry has identified several subjects for development, namely, agriculture, horticulture, bamboo products, khadi and village industries, handicrafts, rural fashion, handlooms and garments, bio-diesel generation through Jatropha cultivation, power generation through bio-mass etc. In agriculture there is scope for taking advantage of Panchayats to assist and meet local needs for supplying inputs, storage and post harvest needs, direct procurement of crops and for marketing of agriculture products.
The product selected for value addition in Uttaranchal is the seasonal fruits. The Ministry of Panchayati Raj and Confederation of Indian Industry (CII) have initiated steps for establishing canning and fruit processing centres in Uttaranchal in coordination with the existing small processing units in the state. Government of Rajasthan has also shown keen interest in developing Rural Business Hubs utilizing available resources and artistic skills special to that State. As observed by Prime Minister Dr. Manmohan Singh at the National Presentation on RBH last year, “technological possibilities to break new grounds in increasing productive capacity of small farms and small businesses need to be fully harnessed”. The effort of the Ministry of Panchayati Raj in heralding private- public- Panchayat–partnership in this direction will also integrate rural areas into modern economic processes that are rapidly transforming the country.
Task forces have been set up for conceptualising Rural Business Hubs in specific areas of development. Their reports would be submitted to an Executive Committee which would look into specific tasks regarding thrust areas where Panchayats could be encouraged to set up Rural Business Hubs. A second Presentation on Rural Business Hubs will also be held by the end of this year.
RBH is aimed at facilitating people living in communities to use their skills in developing products and processing agricultural or natural resources while the Government and the private sector would extend assistance in improving them further through value addition and exploring markets resulting in income augmentation and employment generation. The villagers will be encouraged to create products and develop services using local know how. To consider for inclusion in the RBH programme a product must first use material from the village or surrounding areas with the history that some how relates to local culture and knowledge and should actively seek local participation. The project will encourage rural people in every block panchayat to unite and create products that represent the wisdom and culture of their locality in order to generate extra income by utilizing their free time.
India International Trade Fair-SARAS, organized last year by Ministry of Rural Development attracted about 1200 artisans living below poverty line from 26 States besides 66 NGOs of CAPART. Products ranging from handlooms, food items, furniture, poultry items painting etc. were the main attraction during the event. The Rural Development Ministry has created a database with the help of listing of rural products, which could be used by buyers to purchase online. To give a fillip to manufacturing of such products the Scheme of Horticultural Technology Mission in North-Eastern States including Sikkim, Jammu and Kashmir, Himachal Pradesh and Uttaranchal through Small Farmers Agri-Business Consortium (SFAC) is being implemented in these models.
The RBH will reduce unemployment and disguised unemployment and will increase the productive capacity resulting in income generating capability of the disguised unemployed persons in rural areas.
BSC:SBK:CP
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