MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES
(SHRI NITIN GADKARI)
(a)to(d): A statement is laid on the Table of the House.
STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (d) OF THE LOK SABHA STARRED QUESTION No. *206 FOR ANSWER ON 05.03.2020
(a) & (b): No, Sir. Over the years, the number of loans and the disbursement thereof under the Prime Minister’s Employment Generation Programme (PMEGP) have increased. In 2018-19, there was a jump by more than 50 % in the number of units supported over 2017-18. Further, the subsidy support has increased from Rs. 1020.06 crore in 2015-16 to Rs.2070.00 crore in 2018-19. The details are as follows:
<pre>
Year Number of units setup Margin Money subsidy disbursed (Rs. in crore)
2015-16 44340 1020.06
2016-17 52912 1280.93
2017-18 48398 1312.40
2018-19 73427 2070.00
</pre>
In the current year, till 29.02.2020, 48232 units have been supported with subsidy assistance of Rs.1459.42 crore. Additionally, 29265 loan proposals have also been approved by Banks. Accordingly, the target to support setting up 78000 new micro enterprises under PMEGP in 2019-20 is likely to be achieved.
(c): The targets fixed and achievements made during each of last three years and current year as on (02.03.2020) in Maharashtra and Tamil Nadu State are as below:
<pre>
Maharashtra
Year Target Achievement
No. of projects/
beneficiaries Margin Money Subsidy
(Rs. in Crore) No. of projects/ beneficiaries Margin Money Subsidy
(Rs. in Crore)
2016-17 1056 21.11 2325 60.01
2017-18 3428 68.55 3329 87.49
2018-19 3750 113.65 5642 152.72
2019-20 (as on 02.03.2020) 4022 124.63 3535 89.83
</pre>
<pre>
Tamil Nadu
Year Target Achievement
No. of projects Margin Money Subsidy (Rs. in Crore) No. of projects Margin Money Subsidy
(Rs. in Crore)
2016-17 2646 52.91 2941 82.13
2017-18 3630 72.60 4095 97.17
2018-19 3655 108.86 5185 132.90
2019-20
(as on 02.03.2020) 3800 114.00 4151 99.80
</pre>
Based on the Margin Money subsidy given to the beneficiaries, the estimated quantum of loan given by the banks is calculated as per a formula which takes into account average of Government subsidy and beneficiary contribution.
Accordingly, the estimated bank credit given to entrepreneurs in Maharashtra and Tamil Nadu under PMEGP during last three years and current year is as follows:
<pre>
Year Estimated bank Credit Flow
(Rs. in Crore)
Maharashtra Tamil Nadu
2016-17 162.03 221.77
2017-18 236.24 262.37
2018-19 412.34 358.85
2019-20
(as on 02.03.2020) 242.54
269.46
</pre>
(d): Following steps have been taken to achieve the target for disbursement of Margin Money subsidy under PMEGP:
(i) The process of application flow, including bank sanctions and disbursement, has been made faster through introduction of on-line portal.
(ii) The list of activities has been expanded to attract entrepreneurs for setting up diverse units.
(iii) Organizing of Entrepreneurship Training Programme (EDP), mandatory before disbursal of loan by Banks, has been made online since October 2019 to provide expedited training to beneficiaries.
(iv) Implementing Agencies like Khadi and Village Industries Commission (KVIC), State Khadi and Village Industries Board (KVIB) and District Industries Centres (DICs) are providing handholding to applicants, through call centres, online tutorials as well as physical help desks.
(v) Awareness camps and workshops are being organized with special focus on SC/ST predominant districts and aspirational districts.
(vi) Regular meetings are being held by the Ministry and KVIC with Banks through Department of Financial Services.
Besides, in order to disburse the funds under PMEGP proportionately, the targets are fixed in such a manner that first a target of minimum 75 projects are allocated to each district in a State, following which the remaining Margin Money target is distributed among the State/UT on the basis of the criteria such as (i) extent of backwardness, (ii) extent of unemployment, (iii) achievement of the previous years’ target, (iv) population, (v) availability of traditional skills and raw material and (vi) special focus on 117 backward districts identified by Niti Aayog.
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