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Rural Business Hub Scheme

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The Minister of Panchayati Raj Dr. C.P.Joshi today informed the Lok Sabha that the Ministry of Panchayati Raj is implementing a Scheme of Rural Business Hubs (RBHs) to promote Rural Non-Farming Enterprises (RNFE) which utilise local skills and/or resources and promote rural employment. The Scheme works on a 4P (Public-Private-Panchayat-Partnership) model and is applicable in all the BRGF districts and all the districts in the North Eastern Region. Setting up of RBHs is primarily done through convergence of resources from various ongoing schemes. Assistance under the RBH scheme is available for professional support services, training/skill development and for purchase of minor equipment.

He also informed the Lok Sabha that one of the essential criteria for granting financial assistance under RBH scheme is identification of suitable business partner and commitment from the implementing agency and the business partner to ensure market linkages of the products manufactured with maintenance of quality and standard of these products. The salient features of RBH scheme inter-alia are:
  • Panchayats, the grass-roots democratic institutions, may prepare plans based on local resource endowments, felt needs of people and relative absorptive capacity and implement them
  • Ideally suited for agriculture / horticulture / handloom / handicrafts related activities, where production is decentralized.

RBH Scheme is operational since September, 2007. Against a total approved outlay of Rs. 24.90 crore for the entire XI Five Year Plan, the annual allocation for the year 2007-08, 2008-09 and 2009-10 was Rs. 2.00 crore, Rs. 2.00 crore and Rs. 1.80 crore respectively.

In August, 2008, the Ministry of Panchayati Raj signed a Memorandum of Co-operation with KVIC for jointly promoting Khadi and Village Industries in rural areas by converging the PMEGP and SFURTI and thereby generating employment and sustainable income for rural producers. However, there has been no significant progress in this regard.

Source: PIB

Comments (4)Add Comment
Knowing more about RBHs
written by Clement Raja.V, January 24, 2011
I am Clement Raja, Secretary of AWERD NGO working in Arni Taluk, TVM District, Tamilnadu. Wish to know more details about implementing this program in our Taluk as well as the details of Programs which consist this Scheme.

Kindly contact me with my required details, if you have already familier with RBHs program.

Thank you very much
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written by dhananjay nandpatel, July 23, 2010
this project is very very good and benfit to farmer
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applied this project
written by dhananjay nandpatel, July 23, 2010
my ngo working with rbh project with mcx but i want work with rbh
thanks
your regards
d r nandpatel 9921288986
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written by Irengbam Debenkumar Singh, May 14, 2010
The scheme of Rural business Hub is being implemented at 35 districts of India towards developing the potential and Rural economy of India. I am as a professional social worker that having experience of 25 years in the field of community health and development, it is found very interesting and important programme and scheme for the venture of community development. However, it is found very unfortunate to mis the State of Manipur while sellecting the districts of several state of India for implementing such powerful scheme. I would like to suggest to include the State of Manipur as soon as possible so that it will be very helpful on our efforts in community development in such very backward and landlocked State which located at north east corner boarder State.

With best regards.
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