MINISTER OF STATE (INDEPENDENT CHARGE) FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI K.H. MUNIYAPPA)
(a): State-wise number of agro based industries set up in the country is not maintained
centrally in the Ministry.
(b): The contribution of micro and small enterprises (MSEs) to GDP and to total industrial
production was estimated to be 8.72% and 44.86% respectively during the year 2008-09.
(c): Government in the Ministry of Micro, Small and Medium Enterprises has not conducted any
study/assessment regarding capacity/contribution of cottage industries in terms of income and
employment generation in the country.
(d): Does not arise.
(e) & (f): Yes, Madam. Government in the Ministry of Micro, Small and Medium Enterprises(MSME)
has been implementing a credit-linked subsidy programme named Prime Ministerâs Employment Generation
Programme (PMEGP) since 2008-09 through KVIC throughout the country for generating self-employment
opportunities through establishment of micro enterprises including agro based industries in the non-
farm sector by organizing traditional artisans and unemployed youth. Under the programme, general
category beneficiaries can avail of margin money subsidy of 25% of the project cost in rural areas
and 15% in urban areas. For beneficiaries belonging to special categories such as Scheduled Castes,
Scheduled Tribes, OBCs, minorities, women, ex-servicemen, physically handicapped, beneficiaries
belonging to NER, hill and border areas, etc., the margin money subsidy is 35% in rural areas and 25%
in urban areas. The maximum cost of project is Rs 25 lakh in the manufacturing sector and Rs 10 lakh
in the service sector. Under PMEGP, a total of 2.21 lakh micro enterprises including agro based
industries have been assisted with a margin money subsidy of Rs 4147.95 crore providing employment
to an estimated 20.34 lakh persons since its inception till 2012-13. The State-wise number of agro
based and food processing units assisted under PMEGP since inception (upto 2011-12) is given in Annex.