MINISTER OF STATE (INDEPENDENT CHARGE) FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SHRI DINSHA PATEL)
(a)to(d): For the growth of agro and rural industries and to create new employment
opportunities, the Union Government in the Ministry of Micro, Small and Medium Enterprises
has introduced ‘Prime Minister’s Employment Generation Programme (PMEGP)’ during 2008-09
which is a significant initiative for setting up micro enterprises (including units
manufacturing herbal and traditional items made out of clay, bamboo, etc) with attractive
levels of subsidy. Under this programme, 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 subsidy upto 25 per cent
(35 per cent for weaker sections) of the project cost in rural areas while it is 15 per
cent (25 per cent for weaker sections) for urban areas. It is implemented through KVIC
as the single nodal agency at the national level.
At the State/Union Territories level, the scheme is being implemented through field offices
of KVIC, State/Union Territory Khadi and Village Industries Boards and District Industries
Centres (DICs) with involvement of banks. 498 units have been assisted under PMEGP during
2008-09 and 1972 units are targeted to be assisted in 2009-10 in Jharkhand.
Further, the Government is implementing the “Scheme of Fund for Regeneration of Traditional
Industries (SFURTI)’ for regeneration of around 100 traditional industries clusters in khadi,
village industries and coir sectors covering all the states including Jharkhand. The Scheme
envisages need-based assistance for replacement of production equipment, setting up of
common facility centres (CFC), product development, quality improvement, improved marketing,
training and capacity building, etc. Details of clusters approved under SFURTI in the State
of Jharkhand are given below:
Sl. No Sectors Name of Name of Activities Proposed Plan
(Rs. lakh) Cluster Implementing undertaken outlay Agency
1 Khadi cluster Palamu Chhotanagpur Production of khadi 122.00 Khadi Khadi Gramodyog Cluster Sansthan, Ranchi
2 VI Cluster Singhbhum Singhbhum Honey production 88.00 Bee-keeping Gramodyog Vikas cluster Sansthan
(e)&(f): The guidelines of PMEGP also envisage 2 to 3 weeks Entrepreneurship
Development Programme (EDP) training for the beneficiaries. However, the beneficiaries who
have undergone EDP earlier of duration not less than two weeks through KVIC/KVIB or reputed
training centers are exempted from undergoing fresh EDP. For marketing KVI products several
steps have been taken by KVIC which include operationalisation of 12 Department Bhawans/
sales outlets, organization of exhibitions at the national and sub-national levels,
convergence with Confederation of Indian Industries (CII) for providing marketing support
to KVI institutions and units, quality improvement, etc. Further, a new scheme titled
‘Strengthening of Infrastructure of Existing Weak Khadi Institutions and Assistance for
Marketing Infrastructure’ has been introduced in July 2009 which also envisages renovation
of selected 30 khadi sales outlets to boost the sale of KVI products.
