- Growth centres will give new dimension to rural economy
- Provide increased opportunities for self-employment
- Help stop migration
Growth centre scheme has been started in the state for identified economic activities in specific rural areas, to get the local produce and services identified at the national and international level and to generate large scale employment opportunities at the local level. The state government has issued instructions in this direction.
Speaking about the setting up of growth centres, Chief Minister Trivendra Singh Rawat said that with the strengthening of rural economy, there would be increased growth of employment and self-employment opportunities for local youth. This will also help on checking migration from hilly areas. This will help promote local products which in turn will help traditional framing and to cultivate lands which were lying barren.
The instructions issued by the state government clearly state that the state produce different agricultural produce, flowers and aromatic plants. Despite different areas producing special products, there is lack of commercial cultivation and standardization for its’ quality and there is no organized system to market these special products at a large scale. Following value addition and better processing, these products could get better prices besides generating large scale employment opportunities.
To help start and promote local entrepreneurs based on local raw material, there is need to develop strong and organized backward linkages. There are many schemes run by different departments of government of India, international financial institutions and organizations in the state. The state government departments namely industry, agriculture, tourism, forest, cooperatives, milk development and animal husbandry are also running different schemes. There could be better results from these schemes with better planning, management and monitoring. There could be financial help given through this scheme, in the departmental schemes where critical gaps are identified and where there is need of common infrastructural development. In this scheme, the departments can invite private investment/investors as per their requirements. If for forward or backward linkages, private investment/investors are invited, then they under the MSME policy as applicable to category ‘A’ districts , they would be entitled to maximum financial encouragement of 40 per cent of the total cost of project ,maximum of Rs.40 lakhs of investment encouragement help in the identified growth centres.
In the projects run by different departments of state and central government in the growth centres, permissible product for certain items (particular component) will be permissible from one source only. The expenditure on those activities which are identified by the departments in the growth centres will be permissible.
In the interest substance 5 per cent maximum of Rs ten lakh per annum will be reimbursed. The concerned firm/ unit for the supply of products to consumers within the state (B 2 C) after adjustment of permissible ITC will get 50 per cent maximum of Rs. 20 lakh per annum reimbursement on deposited SGST. The women self-help groups, Farmers Producers Organisations (FPO), Farmers Cooperatives Organisation formed under NRLM will also be eligible under the scheme.
For the implementation of the scheme, the department of small, minor and medium industry department will be the nodal department for the growth centre scheme. The department will identify the growth centre to be run under it and get it sanctioned from high level committee. The financial help for critical gap funding for backward and forward linkages of the identified growth centres will be done after a study report.
For timely sanctions for private investment/investors, the system of single window system will be allowed. There will be a system of third party monitoring of the projects.
For the progress monitoring of the project, the MSME department will develop a monthly progress portal based on Information technology (IT).