(a) whether there is a proposal to give special assistance to cottage
industries related to food in rural areas of the country; and
(b) if so, the names of the States where these are being operated?
(a) whether there is a proposal to give special assistance to cottage
industries related to food in rural areas of the country; and
(b) if so, the names of the States where these are being operated?
MINISTER OF THE STATE IN THE MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI VIRBHADRA SINGH )
(a) & (b): The Ministry of Micro, Small and Medium Enterprises, at present, has no proposal as such, to give
special assistance to cottage industries related only to food. However, Government in the Ministry of Micro,
Small and Medium Enterprises is implementing Prime Minister’s Employment Generation Programme (PMEGP), a
credit-linked subsidy programme since 2008-09 through Khadi and Village Industries Commission(KVIC)
throughout the Country for generating self-employment opportunities through establishment of micro
enterprises including cottage, agro and food based industries by organizing traditional artisans
and unemployed youth, helping in preventing their migration besides increasing their earning capacity.
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
inter alia, under Agro Based and Food Processing Industry by availing of margin money subsidy
of 25 percent of project cost for units in rural areas 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. The number of units including agro
and food based industries assisted under PMEGP during last three years is given below:
Year Number of units assisted under PMEGP
2008-09 25507
2009-10 39502
2010-11 31605
upto 10.02.2011