MINISTER OF STATE (INDEPENDENT CHARGE)
FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SHRI K.H. MUNIYAPPA)
(a) to (e): A statement is placed on the Table of the House.
STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF THE LOK SABHA STARRED QUESTION NO.
360 FOR ANSWER ON 21.03.2013.
(a): Government of India introduced the Prime Minister’s Employment Generation
Programme (PMEGP), a credit linked subsidy programme, in 2008-09 for generation of
employment opportunities through establishment of micro enterprises in non-farm sector,
with the following objectives:
(i) to generate employment opportunities in rural as well as urban areas of the country
through setting up of new self-employment ventures/ projects/ micro enterprises;
(ii) to bring together widely dispersed traditional artisans/ rural and urban unemployed
youth and give them self-employment opportunities to the extent possible, at their place;
(iii) to provide continuous and sustainable employment to a large segment of traditional
and prospective artisans and rural and urban unemployed youth in the country, so as to
help arrest migration of rural youth to urban areas; and
(iv) to increase the wage earning capacity of artisans and contribute to increase in the
growth rate of rural and urban employment.
The quantum and nature of financial assistance given to the beneficiaries under PMEGP
are :
Categories of Beneficiary’s Rate of subsidy
beneficiaries contribution of project cost)
under PMEGP (of project cost)
Area (location Urban Rural
of project/unit)
General Category 10% 15% 25%
Special Category 05% 25% 35%
(including SC/
ST/ OBC/
Minorities/
Women, Ex-
servicemen,
Physically
handicapped, NER,
Hill and Border
areas etc.)
The maximum cost of the project/ unit admissible under manufacturing sector is Rs.25 lakh
and that in service sector is Rs.10 lakh. The balance amount of the total project cost is
provided by Banks as term loan.
(b): State/UT-wise estimated number of employment generated under PMEGP in the country
including Uttar Pradesh and Gujarat during the 11th Five Year Plan is given at Annex I.
(c): State-wise allocation of margin money subsidy which is treated as target, as also
the achievements in term of the margin money subsidy utilized, and the corresponding
number of projects assisted during the 11th Five Year Plan is given at Annex II. As PMEGP
is a continuing scheme of the Government, any un-utilized balance from the yearly
releases of margin money subsidy during a given year is utilized in the following year
and the utilization has always exceeded the yearly releases except in the year of
introduction of PMEGP i.e., 2008-09, as less time was available.
(d): Government through Khadi and Village Industries Commission (KVIC), the nodal agency
for PMEGP at the national level, has organized awareness camps at different parts of the
country to educate potential beneficiaries in rural, semi-rural and urban areas under
PMEGP. A total of 3160 such camps were organized by KVIC during 11th Plan period.
(e): The scheme is reviewed at the State-level Banker’s meeting by senior functionaries
of the State Governments/ Union Territories. Intensive monitoring of the scheme and
periodic review with Banks is also carried out at various levels by KVIC and at national
level by the Ministry for effective implementation of the programme.
