Lok Sabha Question No. 2600 (UNSTARRED), answered on 2018-03-12
Subject: Bank Loans under PMEGP
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: T.G. VENKATESH BABU

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

## LOK SABHA UNSTARRED QUESTION NO. 2600 TO BE ANSWERED ON 12.03.2018

## BANK LOANS UNDER PMEGP

2600.      SHRI VENKATESH BABU T.G:

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

- (a) the amount allocated under Prime Minister Employment Generation Programme (PMEGP) in the country during the last three years;
- (b) the number of people applied for loan in different banks to avail the benefits under PMEGP and the number of them considered and provided loans during the said period, percentage-wise;
- (c) the reasons for a large number of applicants not being considered for loan under the scheme; and
- (d)    the steps taken by the Government to assist the common man in getting their due shares under the scheme?

## ANSWER

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

- (a): Total  amount  allocated  under  PMEGP  for  the  last  three  years  and  current  year  is  given below.
- (b): Targets under PMEGP are fixed state-wise with each district getting at least 75 projects. State-wise details of the number of people applied for loan in different banks to avail the benefits under  PMEGP  and  the  number  of  applications  sanctioned  loans  during  the  last  three  year  and current year, percentage-wise is given at Annexure.

| Year    |   Total amount allocated |
|---------|--------------------------|
| 2014-15 |                  1093.06 |
| 2015-16 |                  1286.2  |
| 2016-17 |                  1082.9  |
| 2017-18 |                  1170    |

(c): The  applications  are  scrutinized  by  implementing  agencies  i.e.  KVIC,  KVIB,  DIC  and District Level Task Force Committee (DLTFC) to ascertain fulfillment of criteria under PMEGP scheme. About 50% of the applications are rejected at the DLTFC level due to non-completion of various documents, vague information in the applications, lack of knowledge etc. Banks also take their  own  credit  decision  on  the  basis  of  viability  of  each  project.  They  appraise  projects  both technically and economically. About 30-40% applications are rejected at the Bank level.

Reasons for rejection of PMEGP application by the Banks are as follows:

- i.     Non-fulfillment of Bank documents by the entrepreneur.
- ii.    The proposed activity is not in the service area of the Bank.
- iii.   The entrepreneur has availed loan facility under other activity like Home  loan, vehicle loan etc. and not repaid.
- iv.    Project is not economically viable.
- v.     Proposed activity is not having suitable marketing at the proposed place.

(d): The steps taken by the Government to assist the common man in getting their due share under the scheme are as follows:

-  KVIC  has  introduced  online  e-portal  wherein  the  application  flows  and  fund  flow  is processed online.
-  The  issue  of  credit  flow  to  the  micro  sector  especially  PMEGP  as  part  of  the  priority sector lending by Banks has been raised in video conference with Secretary, Department of Financial Services (DFS) and CMDs of Banks.  This issue has also been raised in the quarterly  meeting  of  RBI  with  CMDs  of  Banks  for  ensuring  adequate  credit  flow  for MSME sector especially under PMEGP.
-  The  period  of  default  has  been  increased  from  90  to  180  days  for  MSMEs  subject  to fulfilling certain condition.
-  The corpus of Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) has been enhanced from Rs.2500 crore to Rs.7500  crore. The ceiling limit for guarantee cover  is  enhanced  from  Rs.  1  crore  to  Rs.  2  crore.  Non-Banking  Financial  Companies (NBFC) have been brought under the CGTMSE scheme for loan provided to micro sector enterprises.

-  Publicity is being made through print and electronic media about PMEGP scheme for the benefit of Rural and Urban areas.
-  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.
-  Further, the incubates under ASPIRE-LBIs/ Tool Room and Technology centers/MSMEDIs under Ministry of MSME, NSIC/NIMSME /RSETI/NISBUD/ IIE or other Institution / agency approved by Ministry would be eligible for assistance under PMEGP on priority basis and without undergoing EDP training, if the EDP component is already included in the curriculum of the LBIs/Tool Room/Training Centers etc.

*****

## Annexure

## Annexure  referred to in reply to part (b) of the Lok Sabha Unstarred Qn. No. 2600 for answer on 12.03.2018

| Sr. No.        | State/UT         | 2014-15                      | 2014-15                | 2014-15        | 2015-16                       | 2015-16                  | 2015-16        | 2016-17                      | 2016-17                  | 2016-17       | 2017-18                          | 2017-18                                 | 2017-18       |
|----------------|------------------|------------------------------|------------------------|----------------|-------------------------------|--------------------------|----------------|------------------------------|--------------------------|---------------|----------------------------------|-----------------------------------------|---------------|
| Sr. No.        | State/UT         | No. of applicati on received | No. of units disbursed | %              | No. of applicat -ion received | No. of units disbur -sed | %              | No. of applicat ion received | No. of units disbur -sed | %             | (as No. of applicat ion received | on 28.02.2018) No. of units disburs -ed | %             |
| I. NORTH ZONE  | I. NORTH ZONE    | I. NORTH ZONE                | I. NORTH ZONE          | I. NORTH ZONE  | I. NORTH ZONE                 | I. NORTH ZONE            | I. NORTH ZONE  | I. NORTH ZONE                | I. NORTH ZONE            | I. NORTH ZONE | I. NORTH ZONE                    | I. NORTH ZONE                           | I. NORTH ZONE |
| 1              | J&K              | 9640                         | 1565                   | 16.23          | 9619                          | 2207                     | 22.94          | 8687                         | 1492                     | 17.18         | 14999                            | 2900                                    | 19.33         |
| 2              | H.P.             | 2942                         | 1244                   | 42.28          | 3739                          | 1077                     | 28.80          | 5042                         | 941                      | 18.66         | 3584                             | 612                                     | 17.08         |
| 3              | Punjab           | 5892                         | 1153                   | 19.57          | 6760                          | 966                      | 14.29          | 11587                        | 1266                     | 10.93         | 11008                            | 1187                                    | 10.78         |
| 4              | U.T. Chandigarh  | 239                          | 36                     | 15.06          | 197                           | 43                       | 21.83          | 278                          | 47                       | 16.91         | 159                              | 33                                      | 20.75         |
| 5              | Haryana          | 5900                         | 1175                   | 19.92          | 3771                          | 1248                     | 33.09          | 13089                        | 1377                     | 10.52         | 17512                            | 1289                                    | 7.36          |
| 6              | Delhi            | 3297                         | 198                    | 6.005          | 2802                          | 256                      | 9.14           | 8623                         | 119                      | 1.38          | 13057                            | 68                                      | 0.52          |
| 7              | Rajasthan        | 11173                        | 1976                   | 17.69          | 9714                          | 1988                     | 20.47          | 13864                        | 1749                     | 12.62         | 16354                            | 1172                                    | 7.17          |
| II CENTRAL     | II CENTRAL       | II CENTRAL                   | II CENTRAL             | II CENTRAL     | II CENTRAL                    | II CENTRAL               | II CENTRAL     | II CENTRAL                   | II CENTRAL               | II CENTRAL    | II CENTRAL                       | II CENTRAL                              | II CENTRAL    |
| 8              | Uttarakhand      | 4077                         | 1333                   | 32.7           | 2723                          | 1136                     | 41.72          | 4643                         | 1345                     | 28.97         | 7540                             | 1059                                    | 14.05         |
| 9              | Uttar Pradesh    | 43362                        | 4891                   | 11.28          | 37950                         | 4365                     | 11.50          | 47499                        | 4074                     | 8.58          | 72457                            | 4256                                    | 5.87          |
| 10             | Chattisgarh      | 5793                         | 847                    | 14.62          | 4305                          | 1277                     | 29.66          | 9012                         | 1598                     | 17.73         | 11537                            | 1013                                    | 8.78          |
| 11             | Madhya           | 6441                         | 2737                   | 42.49          | 4895                          | 1979                     | 40.43          | 6337                         | 1940                     | 30.61         | 9296                             | 1224                                    | 13.17         |
| III. N.E.ZONE  | III. N.E.ZONE    | III. N.E.ZONE                | III. N.E.ZONE          | III. N.E.ZONE  | III. N.E.ZONE                 | III. N.E.ZONE            | III. N.E.ZONE  | 0                            | 0                        | 0             | 0                                | 0                                       | 0             |
| 12             | Sikkim           | 104                          | 16                     | 15.38          | 254                           | 110                      | 43.31          | 320                          | 27                       | 8.44          | 149                              | 25                                      | 16.78         |
| 13             | Arunachal        | 1742                         | 652                    | 37.43          | 4943                          | 35                       | 0.71           | 1689                         | 301                      | 17.82         | 1200                             | 142                                     | 11.83         |
| 14             | Pradesh Nagaland | 3703                         | 416                    | 11.23          | 2747                          | 623                      | 22.68          | 2616                         | 1018                     | 38.91         | 1576                             | 863                                     | 54.76         |
| 15             | Manipur          | 22282                        | 747                    | 3.352          | 22282                         | 685                      | 3.07           | 33990                        | 1265                     | 3.72          | 11236                            | 376                                     | 3.35          |
| 16             | Mizoram          | 4184                         | 817                    | 19.53          | 5632                          | 1134                     | 20.13          | 3706                         | 425                      | 11.47         | 1782                             | 137                                     | 7.69          |
| 17             | Tripura          | 7681                         | 787                    | 10.25          | 6436                          | 642                      | 9.98           | 9908                         | 2297                     | 23.18         | 6106                             | 688                                     | 11.27         |
| 18             | Meghalaya        | 2247                         | 555                    | 24.7           | 2713                          | 603                      | 22.23          | 1410                         | 329                      | 23.33         | 977                              | 53                                      | 5.42          |
| 19             | Assam            | 49355                        | 5015                   | 10.16          | 37162                         | 3483                     | 9.37           | 71561                        | 6028                     | 8.42          | 27280                            | 1625                                    | 5.96          |
| IV. EAST ZONE  | IV. EAST ZONE    | IV. EAST ZONE                | IV. EAST ZONE          | IV. EAST ZONE  | IV. EAST ZONE                 | IV. EAST ZONE            | IV. EAST ZONE  | 0                            |                          |               |                                  |                                         |               |
| 20             | Bihar            | 22337                        | 1639                   | 7.338          | 11650                         | 2430                     | 20.86          | 21680                        | 3234                     | 14.92         | 20212                            | 1427                                    | 7.06          |
| 21             | West Bengal      | 26726                        | 3397                   | 12.71          | 30343                         | 1873                     | 6.17           | 21190                        | 3528                     | 16.65         | 19035                            | 1222                                    | 6.42          |
| 22             | Jharkhand        | 14073                        | 1699                   | 12.07          | 8700                          | 1839                     | 21.14          | 13795                        | 1300                     | 9.42          | 9447                             | 677                                     | 7.17          |
| 23             | Odisha           | 24348                        | 2013                   | 8.268          | 25577                         | 2876                     | 11.24          | 20102                        | 3029                     | 15.07         | 15357                            | 1768                                    | 11.51         |
| 24             | A&NIslands       | 173                          | 161                    | 93.06          | 304                           | 119                      | 39.14          | 372                          | 195                      | 52.42         | 324                              | 169                                     | 52.16         |
| V. WEST ZONE   | V. WEST ZONE     | V. WEST ZONE                 | V. WEST ZONE           | V. WEST ZONE   | V. WEST ZONE                  | V. WEST ZONE             | V. WEST ZONE   | 0                            | 0                        | 0             | 0                                | 0                                       | 0             |
| 25             | Gujarat*         | 4750                         | 1289                   | 27.14          | 4299                          | 1419                     | 33.01          | 8927                         | 1386                     | 15.53         | 8838                             | 1559                                    | 17.64         |
| 26             | Maharashtra* *   | 20257                        | 3469                   | 17.12          | 5488                          | 2497                     | 45.50          | 45148                        | 2325                     | 5.15          | 34802                            | 2529                                    | 7.27          |
| 27             | Goa              | 145                          | 78                     | 53.79          | 173                           | 91                       | 52.60          | 155                          | 90                       | 58.06         | 113                              | 38                                      | 33.63         |
| VI. SOUTH ZONE | VI. SOUTH ZONE   | VI. SOUTH ZONE               | VI. SOUTH ZONE         | VI. SOUTH ZONE | VI. SOUTH ZONE                | VI. SOUTH ZONE           | VI. SOUTH ZONE | 0                            | 0                        | 0             | 0                                | 0                                       | 0             |
| 28             | Andhra Pradesh   | 9929                         | 937                    | 9.437          | 11459                         | 642                      | 5.60           | 13465                        | 1357                     | 10.08         | 12293                            | 1342                                    | 10.92         |
| 29             | Telangana        | 7952                         | 604                    | 7.596          | 10665                         | 660                      | 6.19           | 11865                        | 664                      | 5.60          | 15472                            | 934                                     | 6.04          |
| 30             | Karnataka        | 21945                        | 2431                   | 11.08          | 23341                         | 2140                     | 9.17           | 29717                        | 3575                     | 12.03         | 28135                            | 1784                                    | 6.34          |
| 31             | Lakshadweep      | 61                           | 31                     | 50.82          | 0                             | 0                        | 0              | 7                            | 0                        | 0.00          | 6                                | 0                                       | 0.00          |
| 32             | Kerala           | 3230                         | 1344                   | 41.61          | 4216                          | 1369                     | 32.47          | 4013                         | 1584                     | 39.47         | 6648                             | 891                                     | 13.40         |
| 33             | Tamilnadu        | 12560                        | 2858                   | 22.75          | 11671                         | 2463                     | 21.10          | 20064                        | 2941                     | 14.66         | 19841                            | 3011                                    | 15.18         |
| 34             | Puducherry       | 257                          | 58                     | 22.57          | 267                           | 65                       | 24.34          | 173                          | 66                       | 38.15         | 221                              | 36                                      | 16.29         |
|                | GRAND TOTAL      | 358797                       | 48168                  | 13.4           | 316797                        | 44340                    | 14.00          | 464534                       | 52912                    | 11.39         | 418553                           | 36109                                   | 8.63          |