MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI VIRBHADRA SINGH)
(a) to (f): A statement is placed on the table of the Sabha.
STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (f) OF THE LOK SABHA STARRED
QUESTION NO. 250 FOR ANSWER ON 18.08.2011.
The Government has been making sustained efforts for promotion of khadi and
village industries in the country. Khadi and Village Industries Commission(KVIC)
was established as a statutory body under the administrative control of the Ministry
for this purpose under Khadi and Village Industries Commission Act,1956. In particular,
the Ministry of Micro, Small and Medium Enterprises has been implementing Prime
Minister’s Employment Generation Programme (PMEGP), a credit-linked subsidy
programme since 2008-09 for generating self-employment opportunities through
establishment of micro enterprises by organizing traditional artisans and
unemployed youth. KVIC is the nodal agency at national level for PMEGP. At the
State/Union Territories level, the scheme is implemented through field offices
of KVIC, State/Union Territory Khadi and Village Industries Boards (KVIBs) and
District Industries Centres (DICs) with involvement of Banks. Under this
Programme, beneficiaries can establish micro enterprises including rural
industries units by availing of margin money subsidy of 25 percent of project
cost for units in rural areas to be set up by beneficiaries belonging to general
category which will be 35 percent for beneficiaries belonging to special
categories such as scheduled caste/scheduled tribe /women and others through the
implementing agencies and loans from Banks, etc., for projects costing up to
Rs.25 lakh each in the manufacturing sector and upto Rs.10 lakh each in
the service sector. In urban areas, the quantum of margin money subsidy is
15% and 25% for beneficiaries belonging to general and special categories,
respectively. The number of units assisted under PMEGP and estimated number
of employment opportunities created under PMEGP during last three years is
given below:
No specific proposal as such has been received in the Ministry from
State Governments. Project proposals under PMEGP for setting up micro-
enterprises are submitted by individual beneficiaries to the implementing
agencies such as DICs under State Government, State KVIBs and KVIC State/
Divisional offices. These are then screened by District Level Task Force
and recommended to Banks for sanction.
Year Number of units Estimated employment opportunities assisted under PMEGP created under PMEGP
2008-09 25507 255070
2009-10 39502 419997
2010-11 48023 423233
