(a) whether the Government proposes to set up a large number of small and cottage industries based on indigenous skills, traditional industries, rural industries, technology and
agricultural products in States having low per capita income and high rates of poverty in the
country including Jharkhand;
(b) if so, the details thereof;
(c) whether the Government has drawn up any action plan to implement the same in a time bound
manner; and
(d) if so, the details thereof?
MINISTER OF STATE (INDEPENDENT CHARGE) FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SHRI DINSHA PATEL)
(a) & (b): The Government (in the Ministry of Micro, Small and Medium Enterprises) does not set
up small and cottages industries of its own. The development and promotion of small and
cottage industries is primarily the responsibility of States / Union Territories (UTs). The
Government (in the Ministry of Micro, Small and Medium Enterprises) however, supplements the
efforts of the States / Union Territories for development and promotion of micro, small and
medium enterprises, including cottage industries, through various schemes / programmes relating
to credit, infrastructural development, technology upgradation, marketing, entrepreneurial
development, etc, throughout the country, including the States/Union Territories having low
per capita income and high rates of poverty. Prime Minister’s Employment Generation Programme
(PMEGP) is one of these schemes, under which entrepreneurs, can establish ‘micro enterprises’,
as defined in the “Micro, Small and Medium Enterprises Development Act, 2006â€, i.e., the
enterprises engaged in (i) the manufacture or production of goods pertaining to any industry
specified in the first schedule to the Industries (Development and Regulation) Act, 1951, where
the investment in plant and machinery does not exceed twenty five lakh rupees; (ii) those
providing or rendering services, where the investment in equipment does not exceed ten lakh
rupees, by availing of margin money assistance from the Khadi and Village Industries Commission
(KVIC) and loans from any public sector scheduled commercial bank.
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), including Jharkhand, with involvement of banks. The permissible margin money subsidy
assistance provided under PMEGP is as under:
Categories of Beneficiary’s Contribution Rate of Subsidy beneficiaries (of project cost) (of project cost) under PMEGP 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 order areas etc.)
Year Estimated employment target (No. of persons)
2009-10 616667 2010-11 962000 2011-12 1418833