PROJECT: Rural Industries Programme


As an alternative solution to meet the rural unemployment problem, the Small Industries Development Bank of India (SIDBI) lunched a pilot project called “Rural Industries Programme” (RIP) in November 1993. Initially it was implemented in three industrially backward districts of Anantapur, Karimnagar and Prakashan in Andhra Pradesh. To implement the programme, the Andhra Pradesh Industrial and Technical Consultancy Organization (APITCO) was called in. Since then, RIP today is being implemented across 62 districts of 24 states through 32 implementing agencies promoting around 10,800 enterprises including 2,350 units.


The first Rural Industries Programme (RIP) was launched by IIE in the Nagaon District of Assam in the year 1996 with support from SIDBI. With the objective to promote 100 units, IIE trained and enrolled 254 potential beneficiaries. Due to efforts put in by IIE, 89 rural enterprises could be grounded in this district within a span of two years. This maiden attempt met with an overwhelming success in terms of enterprise development in the district. This success boosted the morale of the institute in extending its RIP activities to the Barpeta district of Assam where the institute could ground 137 rural industries, West Garo Hill district of Meghalaya and Imphal district of Manipur in the year of 2002, Ribhoi district of Meghalaya in the year of 2006, Dimapur district of Nagaland in 2008 and Champhai district of Mizoram in 2009 respectively.


The objective of the programme is to develop viable and self-sustaining tiny and small enterprises in rural and semi-urban areas across North East India.

Under the programme, the districts have been identified for an intensive thrust by the bank/s with a view to addressing problems such a rural unemployment, urban migration, under-utilisation of physical resources and skills in the districts. The Rural Industries Programme (RIP) of the bank provides a cohesive and integrated package of basic inputs like information, motivation, training, and credit, backed by appropriate technology and market linkages for the purpose of enterprise promotion.


The implementing agency, i.e., the Indian Institute of Entrepreneurship is networking with appropriate agencies to provide the following professional services:

  • Identification and motivation of potentials entrepreneurs across districts
  • Identifying potential investment opportunities
  • Facilitating skill up gradation through need based trainings
  • Assisting in securing finance from banks and other lending institutions
  • Helping entrepreneurs in selection, sourcing, installation and operation of machinery
  • Arranging market supports wherever necessary
  • Guiding entrepreneurs till their units commence commercial production
  • Monitoring and follow-up of RIP beneficiaries


IIE implements the Rural Industries Programme (RIP) in two phases:

Phase – I

  • Open a field office
  • Formation of Project Implementing Committee for smooth implementation of the programme
  • Prepare a list of viable industrial units in the concerned district
  • Identify and select prospective entrepreneurs within the district
  • Organize workshops, seminars, and motivational campaigns to create awareness and garner support from the banks/financial institutions/experts and professionals from different support institutions
  • Organise motivational and skill up gradation trainings

Phase- II

  • Prepare project profiles for the identified group of activities for the benefit of entrepreneurs
  • Guide the prospective entrepreneurs in establishing linkage with banks, local agencies, state government agencies and other promotional organizations in government and non-government sector
  • Help the trained entrepreneurs in upgrading their skill and managerial capabilities, wherever required
  • Provide guidance for technology backup to entrepreneurs wherever necessary
  • Assist the entrepreneurs in implementing Projects through handholding and continuous counseling
  • Assist the entrepreneurs in establishing marketing linkages wherever necessary
  • Monitoring and follow up of RIP projects financed by bankers/own


The target group would be the local unemployed youth (rural and semi urban) who may or may not possess necessary skill to launch a business unit but have the necessary desire and attitude for taking up such ventures. Apart from that, the existing business units will also be included under the programme for up gradation.


For smooth implementation of the RIP programme, there is a project implementation committee (PIC) under the chairmanship of Deputy Commissioner in each District.

The RIP project is being coordinated by Shri Biraj Das , Associate Faculty Member, IIE.

The RIP conducted by IIE as on Implementing Agency are as follows:



Year of Launching and Conclusion

Unit Launched





RIP in Ri-Bhoi District of Meghalaya

2006 and completed

111 Units as on date



Completed on 31.12.2011


RIP in Dimapur District of Nagaland

2007 and continuing

100 Units as on date



Completed on 31.12.2012


RIP in Champhai District of Mizoram

2009 and completed




Completed on 31.12.2012