MINISTER OF STATE (INDEPENDENT CHARGE) FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI DINSHA PATEL)
(a) to (d): A statement is placed on the table of the Sabha.
STATEMENT REFERRED TO IN ANSWER TO PARTS (a) TO (d) OF THE LOK SABHA STARRED QUESTION NO.
57 FOR ANSWER ON 07.07.2009.
(a) & (b): The Government (in the Ministry of Micro, Small and Medium Enterprises), through
Khadi and Village Industries Commission (KVIC), had been implementing a Central Sector credit-
linked subsidy scheme, called the Rural Employment Generation Programme (REGP) from 01.04.1995
to 31.03.2008, in the rural areas and small towns with population up to 20,000. Under this
Programme, eligible entrepreneurs were assisted in establishing village industries, by availing
of loans from public sector scheduled commercial banks, selected Regional Rural Banks,
cooperative banks, etc., and also margin money assistance (subsidy) from the KVIC, for projects
with a maximum cost upto Rs. 25 lakh. Entrepreneurs belonging to the categories of scheduled
castes (SC), Scheduled Tribes (ST), other backward classes (OBC), physically handicapped,
ex-servicemen, women, etc., were entitled to higher margin money assistance.
REGP has been implemented till 31.03.2008. A new scheme titled âPrime Ministerâs Employment
Generation Programme (PMEGP)â was approved in August 2008 by merging the existing REGP and
Pradhan Mantri Rozgar Yojana (PMRY) of this Ministry which is a significant initiative and
more attractive and useful than both the above schemes. The permissible margin money assistance
provides under PMEGP is as under:
Categories of Beneficiaryâs Rate of Subsidy
beneficiaries Contribution (of project cost)
under PMEGP (of project cost)
Area (location of project/unit) Urban Rural
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.)
PMEGP 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.
The State/UT - wise number of persons, including those in West Bengal, estimated to have
benefited from employment generated under REGP during 2006-06 & 2007-08, and PMEGP during
2008-09 (provisional figures) are given at Annex.
(c): No, Sir.
(d): Does not arise.