'Project-Linkage', is a new program initiated by Government of Gujarat with an objective of linking rural development with industrial development. Specifically, the programme attempts to build linkages which will facilitate absorption of local people as unskilled and semi-skilled workers in the industries located in backward areas. Program is introduced at Vapi and Ankleshwar industrial estate as pilot projects. We have described the process by which the program has evolved. Using the case study, we have generated few hypotheses about role of bureaucracy and autonomous agencies in initiating and establishing development programs. In the second part of the report, we have described the objectives structure, activities and achievements of the program. Though it is too early to evaluate the program, we have attempted to review the program based on pilot studies. Certain recommendations are made based on our analysis of the pilot experience.