Karnataka to provide infra, marketing support to cottage industries

The State government is planning to provide dedicated space for rural artisans and cottage industries at gram panchyats.

The government, through the Rural Development and Panchayat Raj Ministry, is also planning to provide marketing support by linking them with major towns and cities.

There are about 5,600 gram panchayats in the State. The State government is planning to use the funds available under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme.

For the financial year 2014-15, the Centre allotted ₹3,151 crore, 55 per cent higher than last years’ allocation of ₹2,025 crore to the State under MGNREGA.

“We have initiated this programme to mainly help rural artisans, self-help groups (SHGs) and sthree shaki groups and create employment at the gram panchyat level,” H K Patil, Rural Development and Panchayat Raj Minister, told Business Line at the State Secretariat.

“As families have grown over the years, many artisans’ homes are either split or divided, forcing them to carry out their daily activity on the road. In order to help them, we have decided to create infrastructure on lines of industrial areas at gram panchyats,” he added.

Steps are also being taken to encourage the sale of goods produced by artisans, SHGs and sthree shaki groups through chambers of commerce in respective districts.

In addition to rural industrial infrastructure creation, the ministry is also planning to utilise ₹1,126 crore additional funds to take up new schemes such as creating space for village fairs, borewell recharging, building community and cultural halls and tree planting on gram panchyat roads.

“The State government was able to spend ₹2,096 crore in fiscal 2013-14 and all MGNREGA disbursal was through e-payments, based on this centre has now allotted additional funds this year,” said Patil.

For Karnataka, the Centre has released ₹439.57 crore in the first quarter (April-June) and ₹616.01 crore for the second quarter (July September) of 2014-15.

Welcoming this new initiative, Karnataka Small Scale Industries Association (KASSIA) said it is willing to partner with the government for creation of rural infrastructure.

Chidananda M Rajamane, president, KASSIA, said rural industrial hubs close to cities is a step in the right direction. “However, this should be taken up in mission mode to ensure timely implementation so as to reap the intended benefits,” he added.