Lok Sabha Question No. 56 (UNSTARRED), answered on 2017-07-17
Subject: Prime Minister’s Employment Generation Programme
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: P.K.SREEMATHI TEACHER

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 56

## TO BE ANSWERED ON 17.07.2017

## PRIME MINISTER'S EMPLOYMENT GENERATION PROGRAMME

## 56. SHRIMATI P.K. SREEMATHI TEACHER:

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

- (a) whether  loans  under  the  Prime  Minister's  Employment  Generation Programme  (PMEGP)  are  being  disbursed  to  the  youths  in  various  States including Kerala;
- (b) if so, the details thereof during the  last three years, State/UT-wise;
- (c) the quantum of loans given to youths in Kerala under the said scheme and the targets fixed/achieved during  the said period; and
- (d) the steps taken by the Government to achieve the said targets?

## ANSWER

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

(a) & (b): Yes Madam. Prime Minister's Employment Generation Programme  (PMEGP)  is  a  major  credit-linked  subsidy  programme  aimed  at generating  self-employment  opportunities  through  establishment  of  microenterprises  in  the  non-farm  sector.  Any  individual  above  18  years  of  age  is eligible.  The  maximum  cost  of  projects  is  Rs.  25  lakh  in  the  manufacturing sector and Rs. 10 lakh in the service sector. 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 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. Khadi and Village Industries Commission (KVIC) is the nodal  implementing  agency  at  the  national  level.  KVIC,  Khadi  &  Village Industry Boards(KVIB) and District Industry Centres (DIC) are the implementing  agencies  in  the  States.  Financial  assistance/loans  is  provided through  Banks,  Government  pays  margin  money  subsidy  to  the  beneficiaries through  KVIC  at  the  above  mentioned  rates  for  different  categories.    The average  margin  money  subsidy  is  25%  of  the  project  cost,  thus  the  banks provides loan four-times the margin money subsidy disbursed by the Government.

The  State/UT-wise  details  of  margin  money  disbursed  under  PMEGP during  the  last  three  years  and  current  year  including  Kerala  is  given  at Annexure-I.

(c): The targets are fixed by the Government in terms of number of projects to be assisted and margin money disbursed.  Details of the target fixed/achieved during last three years in Kerala State are as follows:

(Rs. in lakh)

| Year    | Target   | Target       | Target   | Achievement   | Achievement            | Achievement     |
|---------|----------|--------------|----------|---------------|------------------------|-----------------|
|         | Projects | Margin Money | Empl.    | Projects      | Margin Money disbursed | Empl. generated |
| 2014-15 | 1826     | 2306.51      | 14608    | 1344          | 2679.28                | 9738            |
| 2015-16 | 1366     | 2731.60      | 10928    | 1369          | 2720.48                | 9653            |
| 2016-17 | 1973     | 3946.06      | 15784    | 1584          | 3350.68                | 13068           |

(d): Following  initiatives  have  been  taken  to  achieve  the  targets  under PMEGP Scheme:

-  In order to streamline the process of application flow and fund flow and to bring in transparency and better financial management and to prevent parking of funds at Nodal bank level an online PMEGP-MIS web portal has been introduced. All applications and fund flow is processed online in stipulated time frame.
-  Publicity  is  being  made  through  print  and  electronic  media,  awareness camps  at  District  level  and  State  level  are  being  organized  in  order  to propagate the PMEGP scheme for the development of micro industries.
-  Exhibitions are also conducted at district/state/zone and national level for providing marketing support to the entrepreneurs/units.
-  For  speedy  completion  of  EDP  training,  these  are  being  conducted through   Departmental Training Centres as well as RSETIs/RUDSETIs as per MOU executed between KVIC & MCR.
-  Industries such as Khadi, processing of Pashmina Wool, handloom and power loom units, value added products for tea, coffee, rubber etc. and transport activities are now eligible for assistance under PMEGP.
-  Implementing Agencies are instructed to encourage and provide necessary assistance to the beneficiaries for filing online application by setting up of help desks.

*****

## Annexure I referred to in reply to part (a)&(b) of the Lok Sabha Unstarred Question No. 56 for answer on 17.07.2017

State /UT wise Margin Money provided to units under PMEGP during last three years and current years

(Rs. in lakh)

|         |                   | Achievement (Margin Money)   | Achievement (Margin Money)   | Achievement (Margin Money)   | Achievement (Margin Money)   |
|---------|-------------------|------------------------------|------------------------------|------------------------------|------------------------------|
| Sr. No. | State/UT          | 2014-15                      | 2015-16                      | 2016-17                      | 2017-18 (As on 09.07.2017)   |
| 1.      | Jammu& Kashmir    | 3274.63                      | 3781.19                      | 2621.4                       | 777.23                       |
| 2.      | Himachal Pradesh  | 2237.73                      | 1767.26                      | 2185.27                      | 195.03                       |
| 3.      | Punjab            | 3190.88                      | 2902.97                      | 3181.6                       | 574.22                       |
| 4.      | U.T. Chandigarh   | 61.46                        | 87.72                        | 82.84                        | 17.75                        |
| 5.      | Haryana           | 3012.98                      | 3112.09                      | 3383.53                      | 560.8                        |
| 6.      | Delhi             | 189.24                       | 254.05                       | 182.41                       | 15.04                        |
| 7.      | Rajasthan         | 5249.62                      | 4384.07                      | 4641.6                       | 763.37                       |
| 8.      | Uttarakhand       | 2153.32                      | 1740.86                      | 2122.33                      | 69.45                        |
| 9.      | Uttar Pradesh     | 16937.53                     | 14456.87                     | 14271.05                     | 2901.66                      |
| 10.     | Chhattisgarh      | 2045.68                      | 2829.38                      | 4070.73                      | 637.99                       |
| 11.     | Madhya Pradesh    | 9241.70                      | 8117.17                      | 8346.06                      | 658.78                       |
| 12.     | Sikkim            | 33.52                        | 186.11                       | 35.93                        | 2.45                         |
| 13.     | Arunachal Pradesh | 1004.99                      | 38.85                        | 440.34                       | 43.52                        |
| 14.     | Nagaland          | 878.59                       | 1392.81                      | 2007.48                      | 687.82                       |
| 15.     | Manipur           | 1600.76                      | 1213.98                      | 2162.78                      | 196.19                       |
| 16.     | Mizoram           | 807.98                       | 1026.35                      | 491.96                       | 31.36                        |
| 17.     | Tripura           | 1333.65                      | 945.84                       | 3734.66                      | 582.99                       |
| 18.     | Meghalaya         | 971.14                       | 1056.12                      | 407.89                       | 11.63                        |
| 19.     | Assam             | 5397.01                      | 2869.74                      | 4910.36                      | 676.03                       |
| 20.     | Bihar             | 4111.32                      | 6588.55                      | 8336.51                      | 1041.76                      |
| 21.     | West Bengal       | 6010.11                      | 3400.65                      | 6270.32                      | 820.51                       |
| 22.     | Jharkhand         | 2871.29                      | 3559.74                      | 2654.35                      | 281.55                       |
| 23.     | Odisha            | 3945.89                      | 5736.32                      | 6848.96                      | 1143.98                      |
| 24.     | A &NIslands       | 92.32                        | 65.11                        | 193.46                       | 4.34                         |
| 25.     | Gujarat*          | 6200.52                      | 6339.73                      | 7561.61                      | 2224.05                      |
| 26.     | Maharashtra**     | 7843.81                      | 5285.03                      | 6001.36                      | 2201.68                      |
| 27.     | Goa               | 141.76                       | 165.43                       | 191.44                       | 41.76                        |
| 28.     | Andhra Pradesh    | 3492.11                      | 2262.37                      | 4916.08                      | 1509.79                      |
| 29.     | Telangana         | 1889.35                      | 2217.57                      | 2561.72                      | 942.89                       |
| 30.     | Karnataka         | 6479.10                      | 5898.01                      | 11609.56                     | 1781.38                      |
| 31.     | Lakshadweep       | 28.61                        | 0.00                         | 0                            | 0                            |
| 32.     | Kerala            | 2679.28                      | 2720.48                      | 3350.68                      | 249.06                       |
| 33.     | Tamilnadu         | 6733.89                      | 5497.54                      | 8213.92                      | 1008.39                      |
| 34.     | Puducherry        | 112.10                       | 106.37                       | 103.65                       | 17.19                        |
|         | Grand Total       | 112253.87                    | 102006.33                    | 128093.84                    | 22671.64                     |