The government has added one more P to the PPP model -- Panchayats -- to establish direct linkages between rural economy and the industry.

The Ministry of Panchayati Raj has been implementing a scheme of Rural Business Hubs (RBHs) with this aim, Minister of Panchayati Raj CP Joshi informed the Rajya Sabha on Tuesday.

The objective of this scheme is to promote Rural Non-Farming Enterprises (RNFE) which utilises local skills and resources and promote rural employment.

Also, RBH aims to rope in the industry to improve the locally available resources and produce goods of quality and standards that are nationally and internationally acceptable. The concept is based on the successful Thai experience of One-Tambon-One Product (OTOP) model with suitable modifications.

The scheme works on a 4P (Public-Private-Panchayat-Partnership) model and is applicable in all the backward districts identified by the states, including all the districts in the northeastern region.

Setting up of RBHs is primarily done through convergence of resources from various ongoing schemes. Assistance under the RBH scheme is available for professional support services, training/skill development and for purchase of minor equipment.

Joshi also said that his ministry has signed a memorandum of cooperation (MoC) with Export Import Bank of India for the purpose of enhancing export possibilities of products sources from RBHs.