MSME Creates More Than 20 Lakh Jobs by Assisting 2.33 Lakhs New Entrepreneurs Under PMEGP

New Delhi February 3,2014: More than 20 Lakh persons have been provided employment under the Prime Minister’s Employment Generation Programme (PMEGP) which is being implemented by the Ministry of Micro, Small and Medium Enterprises. The Government has released Rs 5381.63 crore under the scheme since 2008-09 and more than 2.33 lakh projects have already been assisted. 

The Government has been enhancing the allocation for PMEGP every year and the allocation for the current year for 2013-14 (B. E.) is Rs 1418.28 crore. For the country as a whole, the outlay for XII Five Year Plan under PMEGP has been kept at Rs 8060 crore which is 70% higher than the allocation of XI Plan for the scheme. 

The PMEGP is a major credit-linked subsidy programme aimed at generating self-employment opportunities, as well as wage employment through establishment of micro-enterprises in the non-farm sector by helping traditional artisans and unemployed youth. KVIC is the Nodal agency at national level to implement the scheme across the country. 

Towards speedy and effective monitoring of implementation of the scheme an Advisory Committee for each district has been constituted. The committee liaises and coordinates with KVIC, State Government and other agencies including Banks for effective mobilization of young entrepreneurs under PMEGP. It also ensures that the scheme is implemented in accordance with its guidelines. The advisory committee tracks the progress of implementation to meet the target, monitor both input and output, i.e. whether the services and projects are being set up on schedule and review the progress/achievement. 

The Ministry has also directed KVIC and the implementing agencies to ensure that at least 100 projects per district are assisted under the scheme this year. 

Under the PMEGP any project in the manufacturing sector costing upto Rs 25 lakh, and in the service sector upto Rs 10 lakh, is eligible for assistance under this scheme. The assistance is in the form of margin money subsidy for mobilising Bank credit. The rate of subsidy is 25% of the project cost in the rural area and 15% in the urban area for General category. For special categories like SC/ST, OBC, minorities, women, ex-servicemen, physically handicapped, NE Region, hill and border areas, etc., the rate of subsidy is 35% in rural areas and 25% in urban areas. The beneficiary contribution is 5% of the project cost for special categories and 10% for general categories. Any individual above 18 years of age is eligible for assistance.