Lok Sabha Question No. 4292 (UNSTARRED), answered on 2016-12-12
Subject: Promotion of Traditional Rural Industries
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: SUKHBIR SINGH JAUNPURIA

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 4292 TO BE ANSWERED ON 12.12.2016

## PROMOTION OF TRADITIONAL RURAL INDUSTRIES

4292. SHRI SUKHBIR SINGH JAUNAPURIA:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) whether  the  Government  has  taken  note  that  traditional  rural  occupations  such  as weaving, spinning, ironsmith, carpenter, oil extraction are on the wane due to which the rural youth is migrating to towns and cities;
- (b) if so, the reaction of the Government thereto;
- (c) whether  the  Government  has  formulated/proposes  to  formulate  any  scheme  to promote  traditional  rural  industries  and  to  stem  the  migration  of  unemployed  youth  by creating additional opportunities for employment in rural areas of the country; and
- (d) if so, the details thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI GIRIRAJ SINGH)

(a)to(d): In  order  to  promote  traditional  rural  industries  and  to  stem  the  migration  of unemployed youth by creating additional opportunities for employment in rural areas of the country,  Ministry  of  MSME  is  implementing  a  'Scheme  of  Fund  for  Regeneration  of Traditional Industries' (SFURTI) scheme for regeneration of traditional industries by taking up clusters and developing their competitiveness, sustainability and cluster governance.  The cluster  would  enhance  marketability  of  products  by  providing  support  for  new  products, design  intervention  and  improved  packaging  and  also  the  improvement  of  marketing infrastructure.

A total of 56 Detailed Project Reports (DPRs) have been approved benefitting 42701 artisans. Against this, funds involving Rs.70.46 crore have been released by the Ministry till date (i.e. 15.11.2016).

Ministry  is  also  implementing  a  major  credit-linked  subsidy  scheme  named  Prime Minister's  Employment  Generation  Programme  (PMEGP)  for  generating  employment through setting up micro enterprises in rural non-farm sector by providing financial assistance to traditional artisans and unemployed youth so as to help restrict migration of rural youth to urban  areas.  Under  PMEGP,  general  category  beneficiaries  can  avail  of  margin  money subsidy  of  25%  of  the  project  cost  in  rural  areas  and  15%  in  urban  areas,  personal contribution is 10%. For beneficiaries belonging to special categories such as SC/ST/OBC/ minorities/women, ex-serviceman, physically handicapped, NER, Hill and Border areas etc. the  margin  money  subsidy  is  35%  in  rural  areas  and  25%  in  urban  areas,  personal contribution is 5%. The maximum cost of projects is Rs. 25 lakh in the manufacturing sector and Rs. 10 lakh in the service sector.

Since inception and upto 30.11.2016, the PMEGP Scheme has been able to provide employment  opportunities  to  about  33.40  lakh  persons  through  setting  up  3.97  lakh enterprises and utilized margin money subsidy of Rs.8041.45 crore.

******