1. Project Description
National Programme on Development of Rural Industries and Production Villages was launched in 2005 based on "One Product One Village" concept covering the traditional rural industries such as Black smithy, Clay based product, Cane based product, Coir based product, Leather based product etc. Later the villages which are non-traditional rural industries such as Horticulture, Cashew product, Black betel, Manioc, Maize etc., were selected for the programme. The main thrust of this project was development of these villages by increasing the productivity level of industrialists through facilitating access to new technology and practical training opportunities, market access for their products, making improvements to infrastructure and mobilizing them to achieve economic and social progress.
To direct, motivate and pave the way for Sri Lankan rural people to engage themselves in industrial activity thereby improving their standard of living and contribute effectively to the Economic and Social advancement of the country.
To develop industrial villages in active operation and having potential for industrial development in different districts within 5 years from 2005 - 2009.
1.4.Objectives of the Project
· To uplift the contribution of rural industrial sector to the Gross Domestic Product
· To seek solutions for the acute unemployment problem prevailing at present in the rural economy
· Earning of foreign exchange by producing goods which enable producer to enter the foreign market with a less competitiveness using local resources
· The saving of foreign exchange by producing the goods imported at present identifying the items from among which can be produced using local resources and technology
2. Project Implementation
Project Management Unit of the Ministry has been in charge of the project implementation with the assistance of the institutions coming under the purview of the Ministry such as Industrial Development Board (IDB), National Craft Council (NCC), and National Design Centre (NDC). In addition, stakeholders like District Secretaries, Divisional Secretaries, Cooperative Department, Provincial Ministries of Industries and other relevant Institutions have been involved in the project implementation.
3. Project Activities
3.1.Access to New Technology to the Traditional Rural Industrialists.
Facilitating access to modern technology and encourage rural industrialists and handicraftsmen in the selected villages to enable them to produce quality products with low cost at competive prices. Ex:- industrialists in traditional rural industrial villages based on clay products were provided with modern technology such as mixing of clay, grinding of clay using modern techniques.
3.2.Access to Machinery & Equipment
Facilitating access to machinery and equipment of advanced technology for the manufacturing of goods according to prevailing market trends. Accordingly low cost items were provided to each beneficiary (amounting to Rs.50,000) to use individually and high cost items were provided to the common facilities centers (amounting Rs.2 to 3 million) to set up by the project so as use commonly. Ex: - Clay based production villages were provided with Pug mill, Potter wheels, Kiln, & Coir based production villages were supplied with De Fibering Machine, Turbo Cleaner, Screener, Broom Handle Making Machine, and Spares for machine etc.
3.3.Development of Infrastructure Facilities in the Village
Necessary infrastructure facilities were being provided to the selected rural industrial village in order to meet the urgent requirement of the village. Especially, Electricity and access road facilities to remote and far off villages were provided to facilitate establishment of trade links with market places. Also, only for the selected villages were provided with common service centres with electricity and water supply in order to carry out the production in the centre commonly by the industrialists.
3.4.Building of Market Relationships
The market opportunities and facilities were provided under this activity to the industrialists by connecting them to the local markets effectively. Ex. A buyer was connected to the Village Cooperative Society of the respective production village in order to meet the market requirement.
3.5.Changing the Attitudes
Programmes were being conducted with the objective of developing positive thinking and eliminate negative thinking and attitudes found among the craftsmen in traditional industrial villages and it also intends to build a dignity on the industry and craftsmen. Ex: - In this regard, social mobilization programs were being conducted in these villages in order to change the attitude of the beneficiaries.
3.6.Provision of credit facilities
One of the major problems that the small scale industrialists in rural areas have to face is the lack of financial facilities to maintain their industries at an optimum level. In order to solve this problem affecting the production villages a joint programme on special credit scheme had been introduced through the co-operative societies at a lower rate of interest with the assistance of National Development Trust Fund and credit facilities are extended to the beneficiaries through the co-operative society.
National Industrial Production Village Programmes
Based on the evaluation conducted by the University of Colombo, of the 85 peoplised CSCs 29 are under performing and 19 are marginally functioning. The Ministry has initiated actions to further strengthen the production villages and the CSCs to enable the production villages to be moreproductive, dynamic, operational and sustainable. The budgetary allocation for the year 2012 is Rs. 13.5 Mn for revitalization and enhancement of the sustainability of rural industries in the production villages. Under this initiative already10 districts such as Polonnaruwa, Kalutara, Nuwara Eliya, Kandy, Gampaha, Galle, Kurunegala, Jaffna, Puttalam and Anuradhapura are being supported under the revitalization programme.
Strengthening of CSCs will help to develop production villages and thereby contribute to achieve the Mahinda Chintana Vision of developing home based micro/cottage industries, upgrading small industries to medium level and medium industries to large scale level through access to modern technology, design and machinery and by improved quality and low cost production.
4. Present Status of the Project
105 Common Service Centers (CSCs) were established in the traditional rural villages to provide technology, machinery and infrastructure facilities to small industrialists and handicraftsmen in the Production Villages. These Common Service Centers in the Production Villages are managed by the Village Producer Cooperative Societies. Out of the 105 CSCs 87 have already been opened and peoplized.
- ACTION PLAN FOR ENHANCEMEMT OF THE SUSTAINABILITY OF FUNCTIONAL AND NON FUNCTIONAL COMMON SERVICE CENTRES - 2012
Staff officer in charge
Senior Assistant Secretary(Development)
Tel : 2669279 Fax: 11-2681583