The Government has been implementing inter alia the Rural Employment Generation Programme (REGP) through the Khadi and Village Industries Commission (KVIC) for assisting the entrepreneurs in establishing village industry (VI) units, including the traditional leaf-cup/plate making units, in rural areas and small towns with population upto 20,000 by margin money assistance from KVIC and loans from public sector scheduled commercial banks, selected regional rural banks, cooperative banks, etc, for projects with a maximum cost of Rs. 25 lakh.
Leaf-cup/plate making units are promoted under the 'Forest based industry (FBI) Group' of the village industries under the REGP.
During 2006-07, margin money amounting to Rs. 1847.73 lakh was provided for various VI units under the FBI Group assisted during the year, generating 28,000 additional employment opportunities in the country.
REGP is a Central Sector scheme and the approved grants for the scheme are released to the KVIC which, in turn, releases the funds (towards margin money assistance) to the banks against the projects sanctioned in each State/Union Territory (UT).
During 2007-08, it has been targeted to assist the setting up of 1849 VI units under the FBI Group with a margin money assistance of Rs. 2113.13 lakh throughout the country.
This information was given by the Minister of Micro, Small & Medium Enterprises, Shri Mahabir Prasad in a written reply to a question in Rajya Sabha.
Press Information Bureau Government of India
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