(a) the details of schemes for setting up and promoting micro, cottage and village
industry in rural and semi-urban areas during each of the last three years and
current year;
(b) the targets fixed and achievements made during the above period, State and
Union Territory-wise; and
(c) the details of funds/subsidy provided for the same during the above period?
MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI VIRBHADRA SINGH)
(a) & (b) Setting up of cottage and village industries is the responsibility mainly
of the State Governments. However, the Government in the Ministry of Micro, Small
and Medium Enterprises has been promoting the setting up of new micro enterprises
in non-farm sector by implementing Prime Minister’s Employment Generation Programme
(PMEGP), a credit-linked subsidy programme since 2008-09 through Khadi and Village
Industries Commission (KVIC) a statutory body under the administrative control of
the Ministry. PMEGP is particularly aimed at generating self-employment opportunities
through establishment of micro enterprises including cottage and village 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 including cottage and village industries units by availing margin money
subsidy of 25 percent of project cost for units in rural areas to be 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. In urban areas, the quantum of margin money subsidy is 15%
and 25% for beneficiaries belonging to general and special categories respectively.
Targets under PMEGP is decided in terms of quantum of margin money subsidy released
to KVIC. Number of projects assisted is a figure derived on the basis of the average
amount of margin money actually utilized per project. The targets and achievements
for setting up micro enterprises including cottage and village industry under PMEGP
during the last three years and the current year are given at Annex I.
(c) Margin money subsidy to the tune of ` 2727.91 crore has been released to
KVIC under PMEGP during last three years and the current year (upto 10 August 2011).