Question : SETTING UP OF VILLAGE INDUSTRIES

(a) the various initiatives taken by the Government for promoting and setting up of cottage/village industries and micro enterprises in rural and semi urban areas during each of the last three years, State and Union Territory (UT)-wise;

(b) the targets fixed and achievements made during the said period, State-wise;

(c) the total amount of subsidy given to the entrepreneurs for setting up of industries during the said period, State-wise and UT-wise;

(d) the total amount earmarked, sanctioned and utilised during the above said period; and

(e) the various measures proposed to be taken to encourage unemployed youth to set up industries in rural and semi urban areas?

MINISTER FOR MICRO, SMALL AND MEDIUM ENTERPRISES(SHRI MAHABIR PRASAD)

(a): Industries in the rural areas of the country are 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 through the Khadi and Village Industries Commission (KVIC) and the Pradhan Mantri Rojgar Yojana (PMRY), implemented 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.

(b): The State/UT - wise details of targets fixed for setting up of village industry units under REGP during 2004-05, 2005-06 and 2006-07 and the achievements made are given at Annex. I. Similarly, the State/UT - wise details of targets fixed for setting up self employment ventures under PMRY during 2004-05, 2005-06 and 2006-07 and the achievements made are given Annex. II.

(c): REGP is a Central Sector scheme and the approved grants for the scheme are released to the KVIC which, in turn, releases 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 assistance provided by KVIC under the REGP during 2004-05, 2005-06 and 2006-07 are given at Annex III. Under the PMRY, allocation of the subsidy and release of funds are based on the targets for States/UTs. The subsidy amount is released directly to the Reserve Bank of India (RBI), which, in turn, releases the necessary amounts to the implementing banks. The amounts of subsidy released to the RBI during 2004-05, 2005-06 and 2006-07 under PMRY are given below:

Year	Subsidy released under PMRY (Rs. crore)
2004-05	190.48
2005-06	251.36
2006-07	228.82

(Rs. crore)
Year	Funds earmarked and sanctioned	Funds spent by KVIC
2004-05	326.00	292.40
2005-06	376.86	320.96
2006-07	372.63	349.79

(Rs. crore)
Year	Funds Earmarked (RE)	Funds Released
2004-05	218.90	218.17
2005-06	273.46	272.47
2006-07	252.60	248.51