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Thiruvananthapuram , Aug. 11

THE initiative to create rural business hubs across the country will benefit both buyers and producers only if local panchayats are actively involved in the project, said Ms Sudha Pillai, Additional Secretary, Union Ministry of Panchayati Raj.

Speaking at a meeting on the rural business hubs initiative, organised by the Confederation of Indian Industry (CII), in the city today, she pointed out that panchayats would be crucial to the success of this public-private partnership.

Kerala, which is one of the 10 `focus States' selected for the project, can learn from the experiences of other `focus States' such as Uttaranchal, she said.

In Uttaranchal, detailed lists of the various products manufactured in each block and district have been prepared, making it easy to take decisions on the sectors to promote, she explained. Kerala can adopt a similar strategy for developing the rural business hubs in the State, Ms Pillai added.

Earlier, Mr S.M. Vijayanand, Secretary-Local Self Government, Government of Kerala, said the rural business hubs initiative has come at a time when the search is on for viable models for panchayats to facilitate local economic development.

The initiative, he pointed out, is based on local entrepreneurship supported by industry and the local panchayat.

Focus areas selected for the project include processing of agricultural produce, handicrafts development, micro finance and establishment of small biomass-based power plants.

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