MINISTER OF STATE (INDEPENDENT CHARGE) FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SHRI DINSHA PATEL)
(a) & (b): Agro and Rural Industries in the rural areas of the country, including those of
Uttar Pradesh, have been promoted by the Government (in the Ministry of Micro, Small and
Medium Enterprises) through three credit-linked subsidy schemes, namely,
(i) the Rural
Employment Generation Programme (REGP), implemented by the Government from 01.04.1995 to
31.03.2008 through the Khadi and Village Industries Commission (KVIC);
(ii) the Pradhan Mantri
Rojgar Yojana (PMRY), implemented from 02.10.1993 to 31.03.2008 through the States and Union
Territories, and
(iii) Prime Ministerâs Employment Generation Programme (PMEGP), being
implemented from 2008-09 through KVIC as the single nodal agency at the national level
and through field offices of KVIC, State/Union Territory Khadi and Village Industries Boards
and District Industries Centres (DICs) at the State/Union Territories level, with involvement
of banks. Approximately, fifty per cent of the units established under PMRY (implemented in
both rural and urban areas) are estimated to be in rural areas.The State/UT-wise details of
projects set up under REGP and self employment ventures set up under PMRY during the entire
period of their implementation, and the âmicro enterprisesâ assisted under PMEGP during its
inaugural year 2008-09 are given at Annex. I
(c): The State/Union Territory (UT)-wise details of estimated employment opportunities
generated under REGP during 2006-07 & 2007-08 and PMEGP during 2008-09, are given at Annex. II
REGP was a Central Sector scheme and the approved grants for the scheme were used to be
released to the KVIC which, in turn, released the funds (towards margin money assistance)
to the banks against the projects sanctioned in each State/Union Territory (UT).The
State/UT - wise details of margin money allocated by KVIC under the REGP as well as those of
margin money utilised during 2006-07 and 2007-08, are given at Annex. III.
Under PMRY, allocation of the subsidy and release of funds were based on the targets for
States/UTs. The subsidy amount had been released directly to the Reserve Bank of India (RBI),
which, in turn, released the necessary amounts to the implementing banks. The amounts of
subsidy released to the RBI during 2006-07 and 2007-08 under PMRY are given below:
Year Subsidy released under PMRY (Rs. crore)
2006-07 228.82
2007-08 283.20
The State/Union Territory-wise details of funds allocated (released) to the States/UTs for
entrepreneurial development and contingencies as well as the funds utilised under the PMRY
during 2006-07 and 2007-08 are given at Annex. IV.
During 2008-09, no budget provision was made under these two schemes, namely, REGP and PMRY,
since they have been merged into a new scheme called âPrime Ministerâs Employment Generation
Programme (PMEGP)â, the details of which have been given in the answer to part (a) above.
The State/UT - wise details of margin money utilised under PMEGP during 2008-09, are given at
Annex. II.
(d), (e) & (f): Proposals for setting up of units under PMEGP are received by the Implementing
Agencies namely, KVIC,State Khadi and Village Industries Boards and District Industries
Centres (DICs). These applications are screened by a Task Force headed by the District
Magistrate /Collector concerned and recommended to banks. Time to time, requests are being
received from the State Governments for enhancing/reducing the targets under this scheme set
for a particular year.The proposals for enhancing the targets are considered keeping in view
the past performance,the extent of rural population, backwardness and urban unemployment.