The Hindu Business Line : Pant favours rural industry fund for non-farm needs

THE Planning Commission Deputy Chairman, Mr. K.C. Pant, has called for creating a special rural industry fund on the lines of venture capital fund to meet the multiple and diverse needs of the non-farm sector.

Speaking at the National Convention on Rural Industrialisation, he said such a fund could be useful in technology upgradation, quality standardisation, and market support including brand development for sustainable development of village industries. Linking micro markets to the larger macro markets to provide marketing channels for rural non-farm sector was also critical for the sustainable growth of the rural economy, he said, adding that private sector participation in market development, product marketing and brand building should be encouraged.

Mr Pant said policies of the central bank also need to be tailored to ensure adequate lending to the small and tiny sector entrepreneurs. On the extant difference in the interest rate being charged on loans taken by small-scale industries and large industry, he said the issue has been addressed to a level in this year's budget but there was still room for more reforms.

Referring to the innate strengths of Khadi and village industry, Mr Pant said environment-friendliness and near monopolistic condition were the two advantages which need to be fully availed of in an era of global consciousness on the adverse effects of pollution.

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Pant favours rural industry fund for non-farm needs