GREEN BULIDING IS A BUSINESS OPPORTUNITY

SRP submitted in partial fulfilment of the requirements for the award

of the Degree

MBA
of

ACHARYA BANGALORE B SCHOOL

By

ANUSURI HARIKIRAN
P03AA21M0178

Under the guidance of

Dr. RAJESH
Associate Professor

Acharya Bangalore Business School

2022

1
 DECLARATION BY STUDENT

I hereby declare that “GREEN BULIDING IS - A BUSINESS OPPORTUNITY” is the

result of the project work carried out by me under the guidance of DR. RAJESH in
partial fulfilment for the award of a Master’s Degree in Business Administration by Acharya
Bangalore B School.

I also declare that this project is the outcome of my efforts and that it has not been submitted
to any other University or Institute for the award of any other Degree or Diploma
Certificate.

PLACE:

DATE:20-02-2023

Signature: _____________________

Name: ANUSURI HARI KIRAN

Register number: P03AA21M0178

2
 CERTIFICATE OF ORIGINALITY

This is to certify that the SRP titled “GREEEN BULIDING – A BUSINESS

OPPORTUNUITY” is an original work of Mr. ANUSURI HARIKIRAN, bearing register
number P03AA21M0178, is submitted in partial fulfilment for the award of the Master’s
Degree in Business Administration of Bangalore University. The report has not been
submitted earlier either to this University/Institution for the fulfilment of the requirement of a
course of study.

SIGNATURE OF GUIDE SIGNATURE OF DIRECTOR

DATE: DATE:

3
 ACKNOWLEDGEMENT

I take this opportunity to convey my sincere thanks and gratitude to all those who have
directly or indirectly helped and contributed towards the completion of this project. The
success of any project study depends upon a number of factors among which the proper
guidance received from the experts in the industry and teachers play an important role. I take
here a great opportunity to express my sincere and deep sense of gratitude to DR. RAJESH
for giving me an opportunity to work on this project. The support and guidance from ma’am
were of great help and it was extremely valuable. I would like to express my gratitude to sir
for his constant support and encouragement. I would like to express my gratitude and thanks
to DR. HR VENKATESHA (Director), for his constant encouragement. Without his
outright and energetic motivation, support and prompt response it would not have been
possible to do any justice as well as bring authenticity to this project.

Finally, I want to thank everyone for their constant support and encouragement.

4
 LIST OF CONTENTS

SL.NO CHAPTER NAME PAGE NO

1 INTRODUCTION 8

2 REVIEW OF LITERATURE 19

3 RESEARCH METHODOLOGY 25

4 DATA ANALYSIS AND INTERPRETATION 28

5 FINDINGS, SUGGESTIONS & CONCLUSION 36

6 BIBLIOGRAPHY 45

5
 LIST OF TABLES

SL NO PARTICULARS PAGE NO

1 1) Monthly income of the respondents 29

2 Which type of rural area 30

3 Which type of business can started in your area 31

4 Does your area have the transportation facility 32

5 Does your area have the school facility 33

6 Does your area have the preliminary health care centre or 34

hospital

7 Is the health care is private or government 35

6
 LIST OF GRAPHS

SL NO PARTICULARS PAGE NO

1 2) Monthly income of the respondents 29

2 Which type of rural area 30

3 Which type of business can started in your area 31

4 Does your area have the transportation facility 32

5 Does your area have the school facility 33

6 Does your area have the preliminary health care centre or 34

hospital

7 Is the health care is private or government 35

7
 CHAPTER :1
INTRODUCTON

8
Lack of livelihood opportunities, modern amenities and services for decent living in rural
areas results in a sense of deprivation and dissatisfaction amongst a large percentage of
population and leads to migration of people to urban areas. There are wide gaps in the
availability of physical and social infrastructure between rural and urban areas.

To address these issues, the President of India Dr. A.P.J. Abdul Kalam highlighted a
vision of transformation of rural India through launching a mega mission for “Provision of
Urban Amenities in Rural Areas (PURA)”. During his address to the nation on eve of
Republic Day 2003, Dr. Kalam visualized providing four connectivities: physical
connectivity, electronic connectivity, knowledge connectivity leading to economic
connectivity of rural areas.

PURA was envisaged as a self-sustainable and viable model of service delivery to be

managed through an implementation framework between local people, public authorities and
the private sector. The Government support would be in the form of finding the right type of
management structure to develop and maintain rural infrastructure, empowering such
management structure and providing initial economic support. Subsequently, Prime Minister
of India also announced implementation of PURA scheme in his Independence Day speech
on 15th August 2003.

Mission of PURA: Holistic and accelerated development of compact areas around a

potential growth centre in a Gram Panchayat (or a group of Gram Panchayats) through Public
Private Partnership (PPP) framework for providing livelihood opportunities and urban
amenities to improve the quality of life in rural areas.

Objectives of PURA: The primary objectives of the scheme are the provision of
livelihood opportunities and urban amenities in rural areas to bridge the rural – urban divide.

Salient features of PURA

To bridge the rural - urban divide and achieve balanced socio – economic development by
providing physical and social infrastructure, as given below, in identified rural clusters to
further their growth potential. The key characteristics of the scheme are:

1. Road, transportation and power connectivity

2. Electronic connectivity in the form of reliable telecom, internet and IT services

9
3. Knowledge connectivity in the form of good educational and training institutions 4.
Market connectivity to enable farmers to get the best prices for their produce
5. Provision of drinking water and up-gradation of existing health facilities.

6. Intervention should be over and above the existing schemes.

7. Intervention should aim at the cluster becoming growth centre.

8. Intervention to cover amenities and livelihood factors.

9. Convergence of existing schemes to be ensured.

10. Land cost and salaries not to be booked in the scheme.

11. Simultaneous delivery of key infrastructure in villages leading to optimal use of

resources

12. Provision of funds for O&M of assets for 10 years post-construction, along with capital
investment for creation of assets
13. Transformation of several schemes into a single project, to be implemented as per set
standards in a defined timeframe, with the requirements of each scheme being kept intact
14. Combining livelihoods creation with infrastructure development

15. Enforcement of standards of service delivery in rural areas almost at par with those
obtaining in urban areas
16. Enforcement of service standards through a legally binding arrangement

10
Pilot phase of PURA

The pilot phase of PURA was implemented from the year 2004-05 to 2006-07, with the
consent of the Planning Commission in the 10th Five Year Plan and a total budget of Rs.30
crores. Seven clusters were selected in seven states (Basmath (Maharashtra), Bharthana (Uttar
Pradesh), Gohpur (Assam), Kujanga (Orissa), Motipur (Bihar), Rayadurg (Andhra Pradesh)
and Shahpura (Rajasthan)), with a budget of Rs. 4-5 crores per cluster. The identified
agencies for the implementation of PURA projects were responsible for providing village-
level connectivity relating to basic services, transport, power, electronic knowledge and
market and providing drinking water and healthcare facilities.

The implementation of the pilot phase did not yield the desired results as it faced the
following issues:

1. The pilot projects lacked a detailed business plan, which would have identified the
potential of each project. In addition, the delivery of the projects was patterned on the
conventional mode of scheme delivery. These two factors ensured limited participation
by private sector entities.
2. The pilot projects were predominantly infrastructure-oriented, with limited attention
being given to the implementation of economic activities, which would have improved
the standard of living of the local populace.

11
 3. The criteria for the selection of the clusters did not factor the growth potential of that
area.

4. In addition, there was no ownership at the State Government level and the entire
implementation lacked an appropriate institutional structure with dedicated professional
support.
5. Finally, there was no convergence with other schemes of rural development or other
departments.

PURA Strategy

1. Implementation of scheme through PPP

2. PPP between Gram Panchayat (GP) and Private Sector partner

3. Core funding from PURA scheme of MoRD

4. Additional support through convergence of Central Govt. Schemes

5. Private sector to bring in investment and operational expertise

6. Project based and risk sharing among stakeholders

PURA has some distinct features

 It aims at a comprehensive development of rural areas to generate urban- level incomes,

and not mere “Poverty alleviation”.
 It plans for an investment at urban levels and not the much lower amounts that prevails at
present.

 It aims to generate employment for the educated, thereby, halt and even reverse rural-
urban migration.

 It treats quality infrastructure as the prerequisite and not the consequence of

development.

 It seeks modern industry, investment in social and commercial service instead of rural
handicrafts and Agri-based small industry.
 It relies on private initiative. It is a for-profit enterprise not dependent on subsidy from
the government.

12
Thus, PURA helps to overcome the challenges of sustainable development of rural areas of
the country by:
 Wealth generation for a large number people by realising the core competencies of the
area  Diversification in the use of resources
 Entrepreneurship and self-reliance opportunities

 Development of technical knowledge and skill through access to education and

healthcare

 Vertical and horizontal integration of economic activities to create a self-reliant

economic model for a group of villages

Planning of PURA
The Private Partner selected to undertake PURA projects shall identify a Gram Panchayat/ a
cluster of geographically contiguous Gram Panchayats for a population of about 25,000–
40,000. Whereas, the cluster would be the project area, there may be sub-projects to cover
each of the Panchayats within the cluster. Alternatively, a large single Panchayat could
individually provide critical mass to make the project viable. In the pilot phase, the Private
Partner is given the flexibility to identify and select the Gram Panchayat(s) for undertaking
PURA projects based on their familiarity with the area or past experience of working at the
grassroots level. In this identified PURA area, the Private Partner shall plan for the
development/re-development of selected infrastructure services along with economic
activities, after undertaking baseline studies.

Urban Amenities to be provided under PURA

A list of infrastructure, urban amenities and economic activities to be provided under PURA
are as follows:

A. Under MoRD Schemes

(Mandatory): - 1. Water and
Sewerage
2. Construction and maintenance of Village streets

3. Drainage

4. Solid Waste Management

13
5. Skill Development

6. Development of Economic Activity

B. Under non-MoRD Schemes as local conditions permit (illustrative list):-

7. Village Street Lighting

8. Telecom

9. Electricity generation, etc.

C. Add-on Projects to generate economic and livelihood opportunities (Illustrative

list) :-

10. Village linked Tourism

11. Integrated Rural Hub, Rural Market.

12. Agri–Common Services Centre, and Warehousing.

13. Any other rural-economy based project

a. Amenities under MoRD Schemes: The Private Partner shall be responsible for
delivering amenities and services such as water and sewerage, construction and
maintenance of village streets, drainage, solid waste management, skill development and
development of economic activities under the following ongoing schemes of MoRD:
Swarnjayanti Gram Swarozgar Yojana (SGSY), National Rural Drinking Water
Programme (NRDWP), Total Sanitation Campaign (TSC), etc. The convergence of these
schemes shall be at the level of the District Rural Development Agency (DRDA) through
which the funding under these schemes will be made available to the Private Partner.
b. Amenities under non-MoRD Schemes: The PURA may include schemes of other
Ministries that are available “on tap” as some areas of critical infrastructure (urban
amenities) necessary for the project are not within the purview of MoRD such as
Ministry of New and Renewable Energy (for village street lighting and electricity
generation) and Ministry of Communications and Information Technology (for telecom
services) etc. The Private Developer shall access the support under such schemes of
relevant non- MoRD Ministries and dovetail into PURA for delivering the identified
urban amenities. Although the list in paragraph 5.1 is illustrative, the private partner
would be encouraged to include as many of such schemes as the local conditions permit.

14
c. Add-on Projects: It is necessary that the Private Developer create a pipeline of
“commercially viable” and “people centric” projects in the nature of add-ons to the list of
urban amenities to be provided. To ensure delivery of all elements of the project, add-ons
submitted as part of the Detailed Project Report (DPR) shall become
‘essential’/‘mandatory’ for the purpose of performance guarantee. Such add-ons will
generate economic and livelihoods opportunities and are preferably developed in
partnership with the Gram Panchayat and may inter-alia include:
a. Village tourism projects – that provide direct employment to locals and opportunities
for incomes to local artisans, performing artists, etc.
b. Setting up good skill development institution – this would link up with the economic
activity initiated in the project.

c. Integrated rural business centres – that will help the local economy to upgrade to
commercial scale.

Restructured PURA Scheme

The mission of the restructured PURA Scheme is holistic and accelerated development of
compact areas around a potential growth centre in a Gram Panchayat (or cluster of contiguous
Gram Panchayats) through the Public-Private Partnership (PPP) framework, to provide urban
amenities and livelihood opportunities and improve the quality of life in rural areas. The
scheme aims to provide urban amenities and livelihood opportunities in rural areas to bridge
the rural-urban divide.

This aim of the PURA Scheme is proposed to be achieved under the framework of PPP
between the Gram Panchayats and their private sector partner. Core funding shall be sourced
from the convergence of Central Government schemes and complemented by additional
support through the PURA Scheme. The private sector shall also bring on board its share of
investment besides operational expertise. The PURA Scheme would be implemented and
managed by the private sector on considerations of economic viability, but designed in a
manner whereby it would be fully aligned with the overall objective of rural development.

To attract the private sector, the scheme has a “project-based” design with well-defined risks
and identified measures for risk mitigation and risk-sharing among the sponsoring authority
(Gram Panchayat), Government, the State Government, and the selected bidder. The scheme
is designed to ensure that private sector shall bring in efficiency in construction, skill

15
enhancement and operation and maintenance of the project

Challenges to be addressed while up-scaling the PURA Scheme:

These challenges are broadly summarized below:

a. Scheme Coverage

 Linking of outputs under PURA to the overall development of the rural areas

 Arriving at a size and number of the villages to be covered under PURA

 Incorporation of the industry point of view on the up-scaling of the scheme b.

Institutional Structure
 Defining the outcome expected from the scheme

 Upgrading the current skeletal machinery to cater to the requirements of

implementation of the scheme; in addition, defining the process of scaling up the
scheme
 Developing an institutional assessment mechanism for the projects

 Developing a mechanism for independent monitoring and evaluation of the projects

c. Funding Requirements
 Identification of the investment requirement for the XIIth Plan

16
  Estimation of the amount of investment required, both from the private sector side
and the government
 Development of a mechanism that can be adopted by the government to leverage
their funding to enhance value
 Development of a mechanism to ensure security for the investment undertaken

Implementation structure for the PURA Scheme

In order to ensure upscaling of the PURA Scheme, it would be necessary for the State
Governments to lead the entire process of managing PURA projects. The key activities would
involve undertaking the procurement process for selection of the private developer,
facilitating/interacting with the private players in due course of preparation of concept plans
and DPRs, and undertaking its obligations under the Concession Agreement and State
Support Agreement. Further, the State Governments would need to identify their nodal
departments and build capacities of these nodal departments to handle PURA projects.

In addition, to ensure higher accountability from the State Governments, the Working
Group recommends a funding pattern for PURA Grant in the ratio of 80:20, with 80% of the
funding for PURA Grant coming from MoRD and 20% coming from the concerned State
Government. The role of MoRD will be that of a facilitator and the final approving and
monitoring authority of the PURA projects.

A possible structure that may be considered for the implementation of PURA is as follows:

17
The entire implementation process has been categorised in three stages, which are
enumerated as follows:

1 Project preparation stage

 The private player shall identify the PURA cluster and approach the Gram Panchayats
for their consent;
 Based on regular consultations with the Gram Panchayats and district administration,
the private player shall prepare a concept plan and other necessary documentation as
required by the State
Government;

 The proposal from the private player along with all the necessary documents and
concept plan shall be submitted to the State Nodal Department for evaluation and
approval.

18
2 Project approval stage – State level

 The state governments will constitute a State-Level Project Sanctioning and Monitoring

Committee to accord approvals and provide regular assistance to the private players;

 Once the concept plans are submitted by the private players, the committee shall review
and approve the concept plan as per the evaluation criteria specified by MoRD;
 After the approval of the concept plan, the private player shall be asked to prepare the
DPR for the PURA project. The final DPRs shall be submitted to the respective State
Governments for their approvals;
 The State Government shall be the monitoring agency for the bidding process and shall
approve the DPRs for the selection of the private developer;
 On the approval of the State Government, the project shall be sent to MoRD for
approval.

3 Project approval stage – MoRD level

 Once the proposal/DPR is vetted and forwarded by the concerned state government, the
final approval shall be accorded by the competent authority in MoRD;
 Final approval of the PURA Grant by the Central-Level Committee on the basis of
technical specifications and model agreements approved by the Government of India –
Approval process to be in sync with guidelines of Department of Economic Affairs for
PPP projects;
 After the Project is sanctioned by EC, the Concession Agreement and State Support
Agreement shall be signed;
 The transfer of funds shall be done as per the scheme guidelines.

19
 CHAPTER :2
REVIEW OF LITREATURE

20
1.Dr. P C Sabharwal

The former director of Amity School of rural management says, “Certainly the PPP model
will work very well. Involving private firms will certainly speed up the process at the same
time, lots of employment generation will happen during and after these projects.” According
to the officials, economic generation will increase in these clusters as all factors of
urbanisation will help in it. However, there are few challenges too. The scheme has multi-
layer sanctioning and screening for the projects. Involvement of various agencies in at
different levels will hamper the project as it is more likely that projects are stuck due to
official procedures. In such a scenario, private players can opt out from the projects. Now this
will be interesting to see how long this government-corporate marriage lasts.

2. D K Singh

In the cluster development, gram panchayats are empowered to decide which kind of
development activities they like in it. The ministry has assured that there are minimum
chances of corruption in the present scheme and companies which are developing
infrastructure will be working under a given timeframe and will be bound to follow it as per
the guidelines of the ministry. “Delivery of service will be monitored for next 13 years
through independent engineers, and their report will be read in the gram Sabha when all the
members of the community.

3. Sushmita Mukherjee (2011)

ICT, government renders services and information to the public using electronic means.
With the rising awareness amongst the citizens and their better experiences with the private
sector– the demand for better services on the part of government departments became more
pronounced. The infusion of Information and Communication Technology (ICT) is playing a
prominent role in strengthening such a demand.
Combining ICT in Rural Development can not only speed up the development process but it
can also fill the gaps between the educationally and technologically backward and forward
sections of the society.

Several e-governance projects have attempted to improve the reach, enhance the base,
minimize the processing costs, increasing transparency and reduce the cycle times.

21
Introduction of simputers, e-chaupal are some of the initiatives by the government that has up
to an extent been able to bring the rural population in contact with the information
technology. The opportunities of ICT application in rural development are immense at the
same time the government will also be facing some challenges also.

4.Nagaraju L.G. and B. Chandrashekara

If a proper marketing plan is done for rural tourism, it could bring lots of benefit to our
society. It could be a sustainable revenue generating project for rural development of our
government. It can help inflow to resources from urban to the rural economy. It can prevent
migration of rural people to urban. Both short-term and long-term planning, implementing,
and monitoring are vital in avoiding damage to rural areas. Environmental management,
local involvement, sound legislation, sustainable marketing, and realistic planning are
crucial for development of rural tourism. Rural tourism will emerge as an important
instrument for sustainable human development including poverty alleviation, employment
generation, environmental regeneration and development of remote areas and advancement
of women and other disadvantaged groups in the country apart from promoting social
integration and international understanding. It can help inflow to resources from urban to
the rural economy. It can prevent migration of rural people to urban. Both short-term and
long-term planning, implementing, and monitoring are vital in avoiding damage to rural
areas.

5.Ritesh Dwivedi

"Providing Urban Amenities in Rural Areas"; it is a "Partnership of entrepreneurs,

government administrators and the local populace for Urban Amenities within Rural
Ambience". In contrast, in the present scheme of PURA, the government proceeds alone; it
does not let others have co-ownership.

It is expected that a scheme like PURA wherein all relate schemes for rural infrastructure are
being converged for synchronized delivery for a period of 10 years in project mode shall
maximize socio- economic impact. Besides, minimum development obligations by the private
developer will improve quality of service delivery in the Panchayat area. If it will be properly
implemented it changes the scenario of rural India. But it is a very complex and challenging
model. Some of the project’s risks are revenue generation ability of projects in rural areas

22
may be limited. Rural people are unaware about the PURA model so for the success of this
model creating awareness among villagers are very important.

The entire PURA cluster must function as a viable sustainable business entity providing
certain value-added quality services to the rural community and opportunities for
entrepreneurial growth in the rural sector. The PURA unit should aim to improve the quality
of life and welfare of the rural community encouraging reverse migration of urban people to
rural areas. Also, the PURA unit should enable preservation and nurturing of our cultural
heritage.

6. S.N. SELVARAJ “ECONAMIC TRANSFORMATION FOE EMERGING RURAL

INDIA”
The economic observation displays that there are two India’s – “Bharat” which exists in the
villages and “India” which prosper in the urban areas. If our country must have real progress
and become superior on the global stage, then these two India’s must converge. Prosperity
will have to come to our villages, towns, and cities. GDP per agricultural worker is 75%
higher in real terms. Today, as much as 40% of India's total consumption is accounted for by
rural India. But millions of people in rural India still live below the poverty line and striving
hard to grow. The share of agriculture in real GDP has fallen from 30% in 1990-91 to 14.5%
in 2011-12, while the number of people dependent on agriculture for their livelihood has not
come down proportionately. There are several issues related to agriculture production, agro
trade, health, education, and sanitation which need urgent attention. Agricultural growth is
critical and needs to pick up. According to the India Census 2011, only a small proportion of
rural households have easy access to basic amenities like connectivity of roads, drinking
water, electricity, and sanitation. A new collaborative business model for growth of rural
sector has to be designed to benefit the rural population. All stakeholders – Government,
Banks, NGOs, Civil Society, Corporate, etc. – have a role in enabling this growth while
overcoming the expected challenges. With the right kind of Public-Private Partnerships (PPP)
we can tackle these challenges by finding innovative solutions and building the real
opportunities. The Reserve Bank of India has already set targets for reaching more villages.
Rural India is a powerhouse waiting to emerge.

23
7. Prof Jyoti Chandiramani “CHANGING DYNAMICS OF URBANISATION IN
INDIA”

Urban settings are heterogeneous and complex in nature and this can be seen in the Indian
context, not only with respect to India’s definition of urban, but also in terms of the nature of
urban governance as applicable for the statutory towns and census towns. While the 2011
Census highlights that India was 31.16 % urban, with a population of 377 million people, the
World Bank 2019 data reveals that India’s urbanisation has inched to 34% (471 million).
Likewise, the McKinsey Global Institute Report (2010) has projected India’s urban
population to increase to 590 million by 2030, while the World Urbanisation Prospects
(2014) highlights India’s urban numbers to scale up to 814 million by 2050. In 2007, the
world for the first time became more urban — wherein urban population exceeded the rural
population, and according to the World Bank (2019), 55.7% of the world population was
living in urban areas. However, a closer examination of the pace of India’s urbanisation in
comparison with BRIICS4 and select South Asian Economies in 2019, revealed the
following: Brazil was (86.6%) urban, Russian Federation (75%), India (34%), Indonesia
(56%), China (60%), South Africa (67%), indicating a much lower level of urbanisation in
India. This is also seen while comparing India with some of the large South Asian Economies
wherein both Bangladesh and Pakistan (37%) had a higher level of urbanisation. It should
also be noted that each country has differing criteria for defining and classifying an area as
urban, which makes cross country comparisons difficult. However, in terms of sheer
numbers, India (471 million), has the second largest urban population after China (865
million).

8. Dennis Barber

The research shows that rural entrepreneurship has its own distinct elements and deserves
additional attention within the research community. The frameworks and methodologies from
studies focused on high-growth and technology-based entrepreneurship are often used to
explore rural entrepreneurial activities. This incongruence limits our understanding of the
true impact entrepreneurship can have on rural communities. The articles in this special issue
help advance our knowledge of rural entrepreneurship as a distinct field of study, and add to
our understanding of its impact in the rural context. Additional research avenues are
suggested.

24
9. Monitoring and Evaluating the Contribution of the Rural Development in India and
Master Plan for Development of MULHER Village

On completing this project, we have conclude that villagers of MULHER will be provided
with better facility i.e. proper housing system and proper amenities, which will
enhance their living standard and most important that they get shelter for living.
Development refers to improving the quality of lifestyle and also developing economic
welfare of people living in particular area. If proper planning and precautionary steps
taken, the villagers of any rural area can be developed. We conclude that, the housing
system and plan given by us for the village may become comfortable and helpful to the
people if the prepared plan is executed. Although we develop new plans, we recognise some
limitations of our study and resultant future research avenues.

25
 CHAPTER 3
RESEARCH METHODOLOGY

26
 RESEARCH METHODOLOGY

A descriptive type of research is carried out for my study because it includes surveys and fact
findings enquire of different kinds the major purpose of this research is the description of the
state affaire as it exists at present.

OBJECTIVES:

 Providing high advanced technology to rural villages.

 The government also planned to build roads for better connectivity to urban areas. It's
also beneficial for bus services.
 Developing rural areas as a corporate social responsibility.
 Developing an agricultural department with the latest techniques.
 All rural areas' funds are used for the growth of the city, not for consumption.
 Industry and services should be given priority in the job creation for all rural areas.
Our main aspects of creating maximum jobs for rural people.
 Our characters are providing compensation to farmers for the land acquired by an
annual fee charge. 
 Giving land to employers for sub-leased both for business purposes and for residences
for all employees within walking distance. It helps in solving the problem by
commuting daily to work.
 Providing the other facility with the same per capital investment just as urban areas.
 PURA scheme is for rural area development as most of the population lives there. So,
it is our central aspect of looking forward to all remote villages.

DATA COLLECTING METHOD:

Data can be collected using two methods. Below are the two methods used for data
collection.

1.Primary data

2.Secondary data

27
 PRIMARY DATA

The primary data has been gathered through interaction with the students, working
professionals, and some of the housemaker. Some important information has been gathered
through a couple of instructed interviews. It is collected through the following methods.

 Questionnaire Design
The questionnaire was carefully designed to collect the responses from the students about
the project that followed. It consists of twenty-nine questions. For each question, every
student has to fill in with the help of the options given.
Sample size: 60.
 Sampling Technique:

The sampling technique used for my study is simple random sampling. It is also known as
chance sampling. I have chosen this because in sampling where every student in the
population has an equal chance of inclusion in the sample.

 Questionnaire instruction

A 5-point linker scale was used to quantify each response to five of the question. Responses
on the 5-point linker scale Strongly disagree, Disagree, Neutral, Agree, strongly agree.

SECONDARY DATA

The secondary data are those, which have already been collected by someone or else passed
through a statistical process.

Sources of secondary data can be categorized into two broad categories, named published and
unpublished statistics. Various sources are available newly, including central and state
government publications, foreign government publications, technical trade journals, books,
magazines, etc. Collected from various files, and records.

❖ Files

❖ Journals

❖ Manuals

❖ Schedules, etc.

28
 CHAPTER 4
DATA ANALYSIS AND INTERPRETATION

29
 DATA ANALYSIS AND INTERPRETATION

 A survey is conducted through questionnaire to collect the data from the rural area.
 Data is collected based upon the different rural areas.
 In this data contains names, location, income, profession of respondents.
 Total 60 respondents are collected from the different rural areas.
 Based upon the respondents the data is analysed and interpreted and shown in tables
and charts.

30
1)Monthly income of the respondents?

Income Count of Do you want to start your own

restaurant?

20000-30000 44

30000-40000 8

40000-50000 0

Above 50000 8

Total 60

Table 1.1 - Monthly income of the respondents?

Monthly income of respondents

50
45
40
35
30
25
20
15
10
5
0
20000-30000 30000-40000 40000-50000 above 50000

Monthly income of respondents

Fig 1.1 - Monthly income of the respondents?

Interpretation: Out of 60 respondents ,44 people monthly income is between 20k-30k,8

people income is between 30k-40k and 8 people have above 50k.

31
2)Which type of rural area it is?

Rural Areas Count of people live in different types of

rural areas

AGRICULTURE 46

FORESTRY 0

WILDLIFE CONSERVATION 0

TOURISM 14

TOTAL 60

Table 1.2 - Which type of rural area it is?

Types of rural areas respondents live in

50
45
40
35
30
25
20
15
10
5
0
AGRICULTURE FORESTRY WILDLIFE CONSERVATION TOURISM

Types of rural areas respondents live in

Fig 1.2 - Which type of rural area it is?

Interpretation: Out of 60 respondents 46 of them live in Agriculture area, 14 of them live in

a Tourism area according to the survey.

32
3)Which type of business can started in your area?

Type of business Percentage of different types of business

that can be started in rural area

GROCERY STORE 28

VEGETABLE SHOP 7

MEDICAL STORE 6

HARDWARE SHOP 0

HOTEL 19

TOTAL 60

Table 1.3- Which type of business can started in your area?

Series 1
30

25

20

15

10

0
Grocery store Vegetables shop Medical store Hardware shop Hotel

Series 1

Fig 1.3 - Which type of business can started in your area?

Interpretation: Out of 60 respondents 28% of Grocery store,7% of Vegetables shop,6% of

medical store,19% of Hotel.

33
4) Does your area have the transportation facility?

Does your area have the transportation Count of respondents have the transport
facility facility

YES 60

NO 0

TOTAL 60

Table 1.4 - Does your area have the transportation facility?

Series 1
70

60

50

40

30

20

10

0
Yes No

Series 1

Fig1.4 - Does your area have the transportation facility?

Interpretation: Out of 60 respondents, all of them have the transport facility

34
5) Does your area have the school facility?

Does your area have the school facility Count of respondents have the school facility

Yes 47

No 13

Table 1.5 - Does your area have the school facility?

Series 1
50

45

40

35

30

25

20

15

10

0
Yes No

Fig1.5 - Does your area have the school facility?

Interpretation: Out of 60 respondents, 47 people have the school facility and 13 does not the
school facility.

35
 6)Does your area have the preliminary health care centre or hospital?

Does your area have the preliminary Count of respondent having the
health care centre or hospital preliminary health care centre or
hospital

YES 53

NO 7

TOTAL 60

Table 1.6- Does your area have the preliminary health care centre or hospital?

Series 1
60

50

40

30

20

10

0
Yes No

Series 1

Fig1.6- Does your area have the preliminary health care centre or hospital?

36
Interpretation: Out of 60 respondents, 53 have the preliminary health care centre and 7 does
not have the preliminary health care facility.

7) Is the health care is private or government?

If you have a restaurant or planning to Count of If you have a restaurant or planning to

start a restaurant, would you go for start a restaurant, would you go for
consultation? consultation?

Private 52

Government 8

Total 60

Table1.7- Is the health care is private or government?

Series 1
60

50

40

30

20

10

0
Private Government

Series 1

Fig1.7- Is the health care is private or government?

37
Interpretation: Out of 60 respondents, 52 have the private health centre and 8 have the
government health centres.

38
 CHAPTER 5
FINDINGS, SUGGESTIONS AND CONCLUSION

39
FINDINGS

Rural development is important because of the following reasons:

(i) A large proportion of 1. Rural people account for about 3/4th (75%) of the total
population is living in rural population.
areas 2. In 2016, 68.84% of the population accounted for the rural
population.

3. They have always lagged much behind the overall progress of

the economy.

(ii) Agriculture: Major 1. Agriculture is still a major source of livelihood in rural areas.
source of livelihood 2. More than two-third of India’s population depends on it.

3. So, the development of agriculture will contribute to the

betterment of rural areas and rural people.

(iii) Lack of basic necessities 1. Majority of poor people live in rural areas.
2. They do not have access to necessities of life like food, health
facilities, sanitation, etc.

2.key issues in rural development.

(1) Development of ●     There is a lack of infrastructure in rural areas.

infrastructure ●     Infrastructure development like electricity, irrigation, credit,
marketing, transport facilities, etc., needs to be addressed.

(2) Reduction of ●     The reduction of poverty is important because rural areas have
poverty the maximum poverty.
●     Around 30% of the population is below the poverty line; this
figure reduced to 21.92% in 2012.

●     There is a serious need of taking steps for the alleviation of

40
 poverty.

(3) Development of ●     Rural areas lack proper health facilities.

health facilities ●     Better health facilities are necessary for physical growth of
individuals.

(4) Development of ●     Productive resources of each locality need to be developed to

productive resources enhance employment opportunities.
●     It will help in diversification of production activities with a
view of finding an alternative means other than crop cultivation to
sustain life.

(5) Development of ●     There is a need to improve the quality of human resources in
human resources rural areas.
●     It can be done by improving the literacy rate (especially female
literacy), skill development, industrial training, etc.

SUGGESTIONS

1.Agro Based Industries: Sugar industries, Jaggery, Oil processing from oil seeds,
Pickles, Fruit juice, Spices, Dairy products etc.

2.Forest Based Industries: Wood products, Bamboo products, Honey, Coir industry,
making eating plates from leaves.

3.Mineral based industry: Stone crushing, Cement industries, red oxide making, wall
coating powders etc.

4.Textile Industry: Spinning, Weaving, Colouring and Bleaching.

5.Engineering and Services: Tractors and Pump set repairs etc. Small and medium
sized industries to produce agricultural machinery, equipment for usage in rural areas
etc.

41
6.Handicrafts: These include making of wooden or bamboo handicrafts that are local
to that area, traditional decorative products, toys and all other forms of handicrafts
typical to the region.

Others:

 Services: There are a wide range of services including mobile repair,

agriculture machinery servicing, etc which are being undertaken under this
category.
 Start-ups: They are entrepreneurial ventures, which are newly emerged
businesses aims to meet marketplace need, want or problem by developing a
viable business model around products, services, processes, or platforms. For
example: Agriculture, Supply Chain, Trading in Agricultural produce,
Processing Agricultural produces, Fisheries – Both Culture and Trading, Rural
Micro Finance, Rural Health – Rural Primary Health Cared and Rural
Education etc.
 Computer & Internet Services: Providing Computer Training and Repairing
Services, Internet based business-like E-Commerce, Rail & Bus Ticket
booking, Digital Marketing Agency – Examples: Social Media Marketing,
Email Marketing etc.
 Encourage Rural Entrepreneurship: They may be of the following types:
o Individual Entrepreneurship – It is basically single ownership of  the
enterprise.
o Group Entrepreneurship – It mainly covers partnership, private limited
company and public limited company.
o Cluster Formation Entrepreneurship – It covers NGOs, VOs, CBOs,
SHGs and even networking of these groups. These also cover formal and
non-formal association of a group of individuals on the basis of caste,
occupation, income, etc.
o Cooperative Entrepreneurship – It is an autonomous association of
persons united voluntarily for a common objective.

42
Rural Business Ideas

1. Retail Store
Retail stores can be the best option as traders in villages get the material quickly at a low
cost. These stores in towns can solve this problem to a large extent, making it a small
investment business in villages. These retail markets can be Kirana store, tailor shop,
electronics shop, salons, sweet shops, mechanic and plumbing services, electronics repair
shop etc.
2. Poultry Farming
This is another productive rural business idea which requires less investment, land and
labour. Many government schemes are also helping people to set up livestock and poultry
businesses by giving them loans. As a business owner, you can start with one of the best
businesses in the rural area of poultry farming and animal husbandry.

3. E-Mitra
Emitra shop is the best option for villagers because it can help farmers and other villagers
to get updated about everything. For example, farmers easily get to know  Sarkari Yojana,
Subsidy and many more. Moreover, due to Emitra, farmers get all the updated news about
Tractor News, Agriculture News, Weather News, and Agri Business News. 
4. Selling Seeds and Fertilisers
Agriculture is the primary occupation in Indian villages. Therefore, agriculture-related
products like fertilisers and pesticides are always in need. Selling seeds in local areas can
be beneficial for farmers. This can reduce the expense of going to the town to buy seeds
and fertilisers. Also, farmers get mandi price easily on their phones. 
5. Organic Vegetables and Fruits Business
Not every farmer grows fruit and vegetables and villagers also need to buy fruits and
vegetables. This is the most uncomplicated and ordinary business for anyone, primarily for
native villagers living in the rural area. Organic farming  can make a massive profit as
everyone wants organic vegetables. And those who grow vegetables can sell them in
supermarkets through tractors for more earnings. 
6. Water supply
Some Indian villages still don’t have proper Water supply. And supplying water is the
most convenient business idea because the requirement for water is increasing day by day.

43
And the shortage of water in the rural areas. So, supplying water through  tractors can be a
good option for business. 
7. Rental Agriculture Machinery
As commonly known, renting farm machinery is the most economical way of
using Agriculture Machinery  for marginal farmers. So, this rural business idea is
affordable and beneficial for villagers. This can make enormous goods for your business.  
8. Oil Mills
Oil mills are a demanding shop because everyone wants refined oil, organic oil, and
others. Also, oil mills are used to extract oil from soybean, mustard, groundnut etc. This
one is the cheapest and organic business idea. 
9. Disposal making
Disposal making at home and selling to markets can be an excellent option. Because of the
demand for disposable plates and glass in every event of the village. It is a perfect idea for
a low investment start-up. The advantage of a disposal making machine is any member of
the family can use it easily. 
10. Agarbatti making
Agarbatti is the need of every home, shop and temple. This rural business idea can be
profitable because of its demand. Even for starting something new few things matter for
prayer and agarbatti is one of them. And minimum things required for agarbatti making
such as perfume, oil of sandalwood, charcoal powder and others. So, it can be an excellent
option for a start-up. 
11. Handmade Items
Villagers are very creative in making bags, cotton chunnis, decorating items for home and
many more. By selling in the market these items at an affordable range can attract
customers and you can start an online business of selling handmade items to make a good
reach.
12. Dairy Farming
Dairy farming is known as one of the best businesses in rural areas because of high margin
business and it is a daily used product which has no recession time. If you relate to a
farmers house then the dairy farming business idea  can be more lucrative for you. The
collection of pure butter, paneer, ghee, and other milk products are rarely seen. And you
can earn good profit by selling them in cities also at a good price. 

44
Benefits Of Rural Business
There are a lot of most profitable businesses in rural areas in India that will help you to
grow in small towns.
 Lack of Competition
The advantage for rural areas is that there is no such competition in the market. Smaller
cities have few competitors, depending on your location or initiative. Because there is a
wide variety of things to do compared to urban areas, this means that you will have a huge
customer base right from the beginning.
 Low Budget Start-Up
Another benefit of starting a business in villages is that it is much cheaper than in cities.
The land is more economical, be it on rent or on lease. And other things like materials,
products, labour etc., are economical in almost every way.
 Loyalty of Community
Villagers are more trustworthy, and their friendly attitude continues to be your buyer if
you keep the same quality and service they want.
For starting a rural business, there is no fixed amount. But we can take an approximate
amount that will be around 50,000. And here you get to know about how to operate
businesses, their investment provisions, other involvements, necessities and more.
Also, Rural Marketing Strategies  are helpful, making it easier for you to decide on your
business.

45
CONCLUSTIONS:

 In countries like India almost 70% population lives in rural area so that
government should focus on development of rural areas
 Government should provide basic facilities like schools, health centre,
sanitations, roads etc.,
 There is a lot of scope starting business with the available resources in rural
areas
 These are some resourceful small business ideas for rural areas in India that will
help you grow personally and financially.

46
CHAPTER 6:

BIBLIOGRAPHY

47
BOOKS:

 TARGET 3 BILLON by A.P.J. Abdul kalam

 Entrepreneurship Development: A study of PURA scheme by Rajandran K.V.R

WEBSITES:

 www.rural.nic.in
 www.issuu.com
 www.examples.com
 www.proquest.com
 www.googlescholar.com

ARTICLES:

1. “Rural Entrepreneurship in India: Challenge and Problems” by Brijesh

Patel and kirit chavda.
2. “A Review of Rural Development Schemes in India” by Deepa
3. “Rural Tourism and Rural Development” by Nagaraju L. G and B.
Chandrashekara
4. “Issues, challenges, and opportunities in the digitalization of rural markets” by khan
and Sania.

48
 QUESTIONNARE

1) Name: …………………………………………
2) Age Group:
(a) Below 25
(b) 25-35
(c) 35-45
(d) Above 45
3) Gender:
(a) Male
(b) female
4) Income group:
(a) 10k - 20k
(b) 20k – 30k
(c) 30k and above
5) Profession:
(a) Employee
(b) Former
(c) Employer
(d) Business
(e) Other (please specify) ………….
6) E mail id…………………….
7) Current location …………………….
8) Where do you live in?
(a) Rural area
(b) Urban area
(c) Semi urban area
9) What type of rural area it is?
(a) Agriculture

49
 (b) Forestry
(c) Wildlife conservation
(d) tourism
10) what is the population of the area?
(a) 1 – 2500
(b) 2500 -5000
(c) 5000 above
11) Does the area have the basic facilities (elementary school, preliminary
health center, sanitation center...etc,)?
(a) Yes
(b) No
12) If no what are the facilities that your area is backing
in…………………….
13) Which type of business can be started in your area?
(a) grocery store
(b) vegetable shop
(c) medical store
(d) drinking water supply
(e) hotel
(f) hardware shop
(g) other………….
14) Does your area have the transportation facility?
(a) Yes
(b) No
15) Does your area have school and college facility?
(a) Yes
(b) No
16) If yes up to which standard it is(specify)……………….
17) Does your area have the hospital or preliminary health care center?
(a) Yes
(b) No
18) If yes, it is
50
 (a) Private
(b) Government
Any suggestion relating to business opportunities in your rural
area…………………………………………………………………………………………
………………………………………………………………………………………………
………………………………………………

51