MINISTER OF STATE (INDEPENDENT CHARGE) FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SHRI DINSHA PATEL)
(a) to (e): Khadi and Village Industries Commission (KVIC), a statutory body under the
administrative control of the Ministry of Micro, Small and Medium Enterprises, had been
implementing Rural Employment Generation Programme (REGP) a credit-linked subsidy programme
since 1994, for creation of new job opportunities by providing assistance in setting up village
industries units. The said programme has been discontinued on 31 March 2008 and a new scheme
titled Prime Ministerâs Employment Generation Programme (PMEGP) has been introduced in 2008-09
for creation of employment opportunities through setting up of micro enterprises with more
attractive levels of subsidy than REGP. Under both the programmes, special provisions were
made for weaker sections like Scheduled Castes, Scheduled Tribes, Other Backward Classes,
Minorities, physically handicapped, women, beneficiaries from North Eastern States, hilly
areas, etc. Under PMEGP, financial assistance is provided for setting up of micro-enterprises
costing upto Rs. 10 lakh in service sector and Rs. 25 lakh in manufacturing sector. The
assistance is provided in the form of margin money subsidy upto 35 per cent for the
beneficiaries belonging to weaker sections (25 per cent in the case of general category) of
the project cost in rural areas while it is 25 per cent (15 per cent in the case of general
category) for urban areas. The own contribution of the beneficiary belonging to weaker sections
is 5% of the project cost while it is 10% in the case of general category.
The state-wise number of persons belonging to Scheduled Castes, Scheduled Tribes, Other
Backward Classes, Minorities and physically handicapped category during last three years
under REGP and PMEGP is given in Annex. Although no rigid targets as has been kept, however,
on the basis of availability of margin money subsidy within the budget, the PMEGP target for
2009-10 was worked out to assist around 61,697 units generating estimated 616937 employment
opportunities.
KVIC is also implementing a scheme namely âWorkshed Scheme for Khadi Artisansâ providing
assistance to individual and groups of Below Poverty Line khadi artisans for construction
of worksheds for better work environment.