Lok Sabha Question No. 2274 (UNSTARRED), answered on 2018-01-01
Subject: Subsidy to MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: RAJESH RANJAN  (PAPPU  YADAV), KAUSHALENDRA KUMAR

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 2274 TO BE ANSWERED ON 01.01.2018

## SUBSIDY TO MSMEs

## 2274.           SHRI RAJESH RANJAN: SHRI KAUSHALENDRA KUMAR:

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

(a) whether the Government provides any subsidy to set up Micro and Small industries in the country;

- (b) if so, the details thereof and the norms prescribed for its eligibility;
- (c) whether said subsidy is provided by the Union Government or the State Governments and if so, the details thereof;
- (d) whether any enquiry centre has been set up for the said facility; and
- (e) if so, the details thereof?

## ANSWER

## MINISTER OF STATE (INDEPENDENT CHARGE) FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI GIRIRAJ SINGH)

(a) &(b): Yes,    Madam.    Ministry  of  Micro,  Small  and  Medium  Enterprises  (MSME)  is implementing  Prime  Minister's  Employment  Generation  Programme  (PMEGP),  which  is  a  major credit-linked  subsidy  programme,  aimed  at  generating  self-employment  opportunities  through establishment  of  micro-enterprises  in  the  non-farm  sector  by  helping  traditional  artisans  and unemployed youth.

General category beneficiaries can avail of margin money subsidy of 25 % of the project cost in  rural  areas  and  15%  in  urban  areas.  For  beneficiaries  belonging  to  special  categories  such  as Scheduled Caste/Scheduled Tribe/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.

Any individual above  18  years  of  age  is  eligible.  For  setting  up  of  projects  costing  above Rs.10  lakh  in  the  manufacturing  sector  and  above  Rs.  5  lakh  in  the  business  /service  sector,  the beneficiaries should possess at least VIII standard pass educational qualification. The maximum cost of projects is Rs. 25 lakh in the manufacturing sector and Rs. 10 lakh in the service sector. Benefit can be availed under PMEGP for setting up of new units only.

(c): Subsidy under PMEGP Scheme is provided by the Union Government. The PMEGP Scheme was launched during 2008-09. Since its inception, a total of 4.47 lakh micro enterprises have been assisted with a margin money subsidy of Rs 9326.01 crore providing employment to an estimated 37.32 lakh persons from inception till 2017-18 (up to 30.11.2017).

(d) & (e): Khadi and Village Industries Commission (KVIC) is the nodal agency at the national level. At the State/District level, State offices of KVIC, KVIBs and District Industry Centres(DIC) are the implementing agencies in the States in the ratio of 30:30:40.

An online PMEGP-e portal  has been introduced from 1 st July 2016. Entire process is made real time and online. Applicant has to apply on the online portal and he can track the status of his application on the PMEGP-e-portal. There is an online feedback mechanism for providing feedbacks by the beneficiaries, which has been encouraging.

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