Question : Setting up of MSMEs

(a) whether the Government proposes to set up Micro, Small and Medium Enterprises (MSMEs) to provide permanent employment to local youth for the development of aspirational districts/ backward districts;

(b) if so, the names of the districts of Haryana where MSMEs are being set up;

(c) if not, the reasons therefor;

(d) the details of the incentives being provided to the entrepreneurs desirous of setting up of MSMEs across the country, State-wise;

(e) whether the Government has formulated any robust industrial policy/action plan to set up MSMEs in Darbhanga district in Bihar so as to provide permanent employment opportunities to the people living there, particularly in Mithila region and prevent them from frequent migration and if so, the details thereof and if not, the reasons therefor; and

(f) whether the Government has any proposal to setup MSME units in most backward areas in the country and especially in Bihar State to provide permanent employment to the local youths and if so, the details thereof and if not, the reasons therefor?

MINISTER FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SHRI NITIN GADKARI)

(a): Yes Sir. Ministry of MSME is implementing Prime Minister’s Employment Generation Programme (PMEGP) for generation of sustainable employment opportunities for unemployed youths through establishment of enterprises in the country including Backward and Aspirational Districts since 2008. More than 5.9 lakh units have been set up in the country since inception of the scheme, 80% of which are in rural areas.

Performance of PMEGP scheme during last three years and current year in Aspirational Districts of the country is placed at Annexure-I.

(b)&(c): The District-wise number of beneficiaries benefitted/ units set up under PMEGP in Haryana State during last three years is at Annexure-II.

(d): PMEGP is a credit linked subsidy programme where loan for setting up of enterprises is being provided by financing banks and the margin money subsidy is provided by Ministry of MSME through Khadi and Village Industries Commission (KVIC). The maximum cost of the project eligible for financing under PMEGP is Rs.25.00 lakhs in Manufacturing Sector and Rs.10.00 lakhs in Service Sector.
<pre>
Margin Money subsidy provided to various categories of beneficiaries is detailed below:
Categories of beneficiaries under PMEGP. Beneficiaries contributions (of the project cost) Rate of subsidy.
(of the project cost)
Area (location of the project/ unit) Urban Rural
General category. 10% 15% 25%
Special Category (including SC/ST/ OBC/ Minorities/Women, Ex-servicemen, Physically Handicapped, NER, Hill & Border Areas. 05% 25% 35%
</pre>

Further, the Ministry of MSME has also introduced a new component from 2018-19 to provide financial assistance for expansion / upgrading the existing PMEGP / REGP / MUDRA units. Under this component banks loan is provided for Manufacturing Units upto Rs. 1.00 Crore and for Service / Trading Unit upto Rs. 25.00 Lakhs with subsidy of 15% for Non-NER and 20% for NER and hilly states.

(e)&(f): Ministry of MSME through its statutory bodies promotes and implements programmes for the development of various industriesin rural as well as backward areas of the country including Mithila Region of Bihar State. The following programmes are being implemented in this regard:
(i) Prime Minister’s Employment Generation Programme (PMEGP):
Units set up and Margin Money Disbursed in Bihar for the last three years and the current year up to (06.03.2020).
<pre>
Year Number of Units Margin Money disbursed (in Rs. Lakh)
2016-17 3234 8336.51
2017-18 2307 6558.85
2018-19 3303 9842.00
2019-20 (up to 06.03.2020) 1558 4819.71
</pre>

District–wise PMEGP progress in Bihar State is at Annexure-III.
ii) Scheme of Fund for Regeneration of Traditional Industries (SFURTI):

Units set up under this scheme to promote and organize artisan based Clusters for Khadi as well as for Village Industry products in Bihar are:
<pre>
Sl. No. Name of the Cluster Number of Beneficiaries
1 Madhubani Painting Cluster, Madhubani 600 artisans
2 Rohtas Pottery Cluster 150 artisans
</pre>

(iii) Micro and Small Enterprises (Cluster Development Programme)

As part of Cluster Development approach in the State of Bihar, one project namely Brass & Bronze Metal Utensils Cluster, Pareb, Patna has been completed and one project namely Green Yarn Cluster, Khanwa, Nawada has been approved for implementation under MSE-CDP

(iv) Bee-keeping Honey Mission:

Since 2017-18, KVIC is promoting beekeeping as a sustainable, integral forest, social forest and agriculture supporting activity. Under the programme, beekeeping entrepreneurs are provided with training and 10 bee boxes, with live bee colonies and tool kits. 1430 bee-keepers have been distributed 14300 Bee-boxes in Bihar State since the inception of the programme till 31.01.2020.

(v) Kumhar Sashaktikaran Pottery Programme:

Under the programme, 340 numbers of electric pottery wheels and other essential machines like pug mill, blunger, etc. have been distributed in Bihar State to the artisans engaged in traditional pottery craft from the year 2017-18 till 31.01.2020.