MINISTER FOR MICRO, SMALL AND MEDIUM ENTERPRISES(SHRI MAHABIR PRASAD)
(a): Industries in the rural areas of the country have been promoted by the Government (in the Ministry of Micro,Small and
Medium Enterprises) through two credit-linked subsidy schemes,namely,the Rural Employment Generation Programme (REGP),
implemented by the Government from 01.04.1995 to 31.03.2008 through the Khadi and Village Industries Commission (KVIC) and
the Pradhan Mantri Rojgar Yojana (PMRY), implemented from 02.10.1993 to 31.03.2008 through the States and Union Territories.
Approximately,fifty per cent of the units established under PMRY (implemented in both rural and urban areas) are estimated
to be in rural areas.The State/UT-wise details of projects set up under REGP and self employment ventures set up under PMRY
during the entire period of their implementation,are given at Annex. I
(b) & (c): REGP was a Central Sector scheme and the approved grants for the scheme were used to be released to the KVIC
which,in turn,released the funds (towards margin money assistance) to the banks against the projects sanctioned in each
State/Union Territory (UT).The State/UT - wise details of margin money allocated by KVIC under the REGP as well as those of
margin money utilised during 2005-06, 2006-07 and 2007-08,are given at Annex. II.Under the PMRY,allocation of the subsidy
and release of funds are based on the targets for States/UTs.The subsidy amount had been released directly to the Reserve
Bank of India (RBI),which,in turn,released the necessary amounts to the implementing banks.
The amounts of subsidy released to the RBI during 2005-06, 2006-07 and 2007-08 under PMRY are given below:
Year Subsidy released under PMRY (Rs. crore)
2005-06 251.36
2006-07 228.82
2007-08 283.20
The State/Union Territory-wise details of funds allocated (released) to the States/UTs for entrepreneurial development and
contingencies as well as the funds utilised under the PMRY during 2005-06, 2006-07 and 2007-08 are given at Annex. III.
During the current year,i.e.,2008-09,no budget provision has been made under these two schemes,namely,REGP and PMRY,since
they have now been merged into a new scheme called “Prime Minister’s Employment Generation Programme (PMEGP)â€,the details
of which have been given in the answer to parts (d) & (e).
(d) & (e): Yes, Sir.As mentioned in answer to parts (b) & (c) earlier,a new scheme called PMEGP has been approved for
implementation from 2008-09 to 2011-12 with an estimated outlay of Rs. 4735 crore (Rs. 4485 crore towards margin money and
Rs. 250 crore towards backward forward linkages) with the target for generation of 37.37 lakh additional employment
opportunities. The Scheme will be implemented through the Khadi and Village Industries Commission (KVIC),as the single nodal
agency at the national level.At the State/Union Territories level,the scheme will be implemented through field offices of
KVIC, State/Union Territory Khadi and Village Industries Boards (KVIBs) and District Industries Centres (DICs) and Banks.
Under this Programme, entrepreneurs can establish micro enterprises,by availing of margin money assistance from the
KVIC/KVIBs of States & Union Territories/DICs and loans from implementing public sector scheduled commercial Banks,selected
regional rural Banks and co-operative Banks, etc., for projects with a maximum cost of upto Rs. 10 lakh each in the
service/Business sector and up to Rs.25 lakh each in the manufacturing sector.The margin money admissible to entrepreneurs
in urban areas is 15% of the project cost for General category entrepreneurs and 25% of the project cost for Special
category entrepreneurs (Scheduled Castes/Scheduled Tribes/Other Backward Classes/Minorities/Women,Ex-Servicemen,Physically
Handicapped,North-Eastern Region,Hill and Border areas, etc.).The margin money admissible to entrepreneurs in rural areas is
25% of the project cost for the General category entrepreneurs and 35% of the project cost for the Special category
entrepreneurs.
(f) & (g):. To encourage the exporting institutions and individual entrepreneurs registered with the KVIC and to boost the
export of village industry products,KVIC has been implementing `Export Incentive Scheme` to facilitate their participation
in international trade fairs and exhibitions.The year-wise details of funds spent for this purpose during the last three
years and current year, are given in the Table below:-
Year Amount (Rs. lakh)
2005-06 50.00
2006-07 44.29
2007-08 32.32
2008-09 18.44
(up to
September
2008)
