Question : Implementation of PMEGP

(a) whether the Government has implemented a credit-linked subsidy programme named Prime Minister’s Employment Generation Programme (PMEGP);

(b) if so, the details thereof along with the quantum of financial assistance given under this programme to the beneficiaries so far;

(c) whether the objectives/targets to generate employment thereunder in rural and urban areas of the country have been achieved;

(d) if so, the details thereof and if not, the reasons therefor and the steps taken by the Government to generate employment under the programme;

(e) the number of women entrepreneurs benefited under the said programme during the above said period, State/UT-wise; and

(f) the steps taken by the Government for effective implementation of the programme including hike in the existing ceiling of financial assistance for MSMEs?

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

(a) & (b): Yes, Sir. Ministry of Micro, Small and Medium Enterprises (MSME) is implementing Prime Minister’s Employment Generation Programme (PMEGP), which is a major credit-linked subsidy programme aimed at generating self-employment opportunities through establishment of micro-enterprises in the non-farm sector by helping traditional artisans and rural/urban unemployed youth. Under the scheme, beneficiary can avail loan up to Rs. 25 lakh in the manufacturing sector and Rs. 10 lakh in the service sector. General category beneficiaries can avail margin money subsidy of 25 % of the project cost in rural areas and 15% in urban areas. For beneficiaries belonging to special categories such as Scheduled Caste/Scheduled Tribe/OBC /minorities/women, ex-serviceman, physically handicapped, NER, Hill and Border areas, etc., the margin money subsidy is 35% in rural areas and 25% in urban areas.

Under PMEGP scheme, since its inception in 2008-09, a total of about 5.70 lakh micro enterprises have been assisted with a margin money of Rs. 12902 crore providing employment to an estimated 47 lakh persons, till 2019-20 (up to 31.10.2019).

(c)& (d): Yes, Sir. Details of employment generated under PMEGP Scheme during the last three years is given at Annexure-I.

(e): The number of women entrepreneurs who have benefitted under PMEGP Scheme during the last three years is given at Annexure-II.

(f): For expansion/upgrading the existing PMEGP/MUDRA units, Ministry of MSME has introduced second financial assistance scheme (for manufacturing unit upto 1.00 cr. and for service/ trading unit upto Rs.25.00 lakhs with subsidy of 15% for non NER and 20% for NER and hilly state) from the year 2018-19.

Besides, the following steps have also been taken by the Government for effective implementation of the Scheme:

i. To bring in transparency and expedite disbursement of Margin Money under PMEGP scheme, Ministry of MSME has introduced online Margin Money disbursement directly to financing bank branches.

ii. To provide necessary hand holding and mentoring to the beneficiaries, National Small Industry Corporation (NSIC), MSME- Development Institutes (MSME-DIs) and Tool Rooms have associated with PMEGP units.

iii. To popularise and propagate the PMEGP scheme for the development of micro industries, awareness camps, workshops, Bankers Meetings and exhibitions have been organised at Districts, States and Zonal levels.

iv. To enlarge the scope of PMEGP activities, Coir enterprises have been included under the scheme and Coir Board has been made an implementing agency.

v. To facilitate immediate contact with beneficiaries, the process of Geo-tagging of all PMEGP units has been initiated.

vi. To expedite the implementation process of PMEGP, online training portal and mobile app have been developed and made live from 22.10.2019 for providing Entrepreneurship Development Programme (EDP) training.