Lok Sabha Question No. 3180 (UNSTARRED), answered on 2018-08-06
Subject: Setting up of MSMEs
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: RAM KUMAR SHARMA KUSHWAHA, ASHOK MAHADEORAO NETE, KIRTI (JHA) AZAD

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 3180 TO BE ANSWERED ON 06.08.2018

## SETTING UP OF MSMEs

## 3180.  SHRI RAM KUMAR SHARMA: SHRI ASHOK MAHADEORAO NETE: SHRI KIRTI AZAD:

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

- (a) whether  the  Government  proposes  to  set  up  at  least  one  unit  of  the  Micro, Small and Medium Enterprises (MSMEs) in each village to check migration of people towards urban areas in search of employment;
- (b) if so, the details thereof including the number of MSMEs set up during each of the last three years and the current year, State/UT-wise and if not, the reasons therefor;
- (c) the number of people who have lost their jobs in the MSMEs during the said period, State/UT-wise;
- (d) whether  there  is  any  connection  between  demonetisation  and  reduction  in employment opportunities in the MSMEs; and
- (e) if so, the details thereof?

## ANSWER

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

(a)&(b): No, Madam.    However,  Ministry of  Micro,  Small  and  Medium Enterprises (MSME) is implementing the following schemes/ programmes for Micro, Small and Medium Enterprises (MSMEs):

- (i) Prime  Minister's  Employment  Generation  Programme  (PMEGP):  This  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. Any individual above 18 years of age is eligible. 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. 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.  The Scheme was launched during 2008-09.

Since its  inception,  a  total  of  4.72  lakh  micro  enterprises  have  been  assisted  with  a margin  money  (MM)  subsidy  of  Rs  10007.67  crore  providing  employment  to  an estimated  39.36  lakh  persons,  till  2017-18  (up  to  31.03.2018).  State/UT-wise  micro units  set  up,  MM  subsidy  allocated  &  utilized  and  employment  generated  under PMEGP  during  each  of  the  last  three  years  and  the  current  year  is  placed  at Annexure-I.

(ii) Credit  Guarantee  Scheme  for  Micro  and  Small  Enterprises  (CGTMSE):  The scheme facilitates  credit  to  the  MSE  units  by  covering  collateral  free  credit  facility (term loan and /or working capital) extended by eligible lending institutions to new and existing micro and small enterprises. The corpus of CGTMSE has been enhanced from Rs.2500 crore to 7500 crore. Since its inception, more than 30 lakh enterprises have been assisted with a total amount of Rs. 5699.90 crore (up to 31.03.2018).

(iii) Credit Linked Capital Subsidy Scheme (CLCSS): CLCSS facilitates technology  upgradation  of  small  scale  industries,  including  agro  &  rural  industrial units  by  providing  15%  upfront  capital  subsidy  (limited  to  maximum  of  Rs.15.00 lakhs). Since inception and upto 30.06.2018, a total of 51,019 units have been assisted utilizing subsidy of Rs. 3066.18 crore.

Pradhan  Mantri  MUDRA  Yojana  (PMMY)  and  Stand-Up  India  scheme  are being implemented by Department of Financial Services, M/o Finance. PMMY was launched during 2015-16 for providing loans upto 10 lakh to the non-corporate, nonfarm small/micro enterprises. Since its inception in 2015, a total of 6, 01,713.87 Crore amount has been disbursed providing loan to 13, 22, 98,434 units. (Up to 13.07.2018). Under Stand-Up India loan between Rs 10 lakh and Rs 1 Crore is provided to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one-woman borrower per bank branch for setting up a Greenfield enterprise. This enterprise may be in manufacturing, services or the trading sector.

(c): Ministry of MSME does not maintain data on the number of people who have lost  their  jobs  in  the  MSMEs  during  the  said  period.  However,  49.37  lakh  MSMEs have been registered on Udyog Aadhaar Memorandum (UAM) portal as on 31.7.2018.

(d): Ministry  of  MSME  has  not  conducted  any  study  to  know  the  connection between demonetization and reduction in employment.

(e): Does not arise.

## Annexure-I referred to in reply to part (a)&(b) of the Lok Sabha Unstarred Question No. 3180 for answer on 06.08.2018

## State-wise position of PMEGP during2015-16

| Sr. No.   | State/UT                 |   Margin Money subsidy allocated (Rs. lakh) |   Margin Money subsidy utilized# (Rs. lakh) |   Number of projects assisted |   Estimated employment generated (No. of persons) |
|-----------|--------------------------|---------------------------------------------|---------------------------------------------|-------------------------------|---------------------------------------------------|
| 1         | Jammu& Kashmir           |                                     4006.8  |                                     3781.19 |                          2207 |                                             12115 |
| 2         | Himachal Pradesh         |                                     1721.57 |                                     1767.26 |                          1077 |                                              5134 |
| 3         | Punjab                   |                                     3026.8  |                                     2902.97 |                           966 |                                              7762 |
| 4         | UT Chandigarh            |                                       90    |                                       87.72 |                            43 |                                               323 |
| 5         | Uttarakhand              |                                     1909.93 |                                     1740.86 |                          1136 |                                              6161 |
| 6         | Haryana                  |                                     3747.4  |                                     3112.09 |                          1248 |                                              7232 |
| 7         | Delhi                    |                                      257.35 |                                      254.05 |                           256 |                                              2048 |
| 8         | Rajasthan                |                                     4188.14 |                                     4384.07 |                          1988 |                                             14537 |
| 9         | Uttar Pradesh            |                                    17535.3  |                                    14456.9  |                          4365 |                                             43059 |
| 10        | Bihar                    |                                     7118.59 |                                     6588.55 |                          2430 |                                             19624 |
| 11        | Sikkim                   |                                      227.38 |                                      186.11 |                           110 |                                               397 |
| 12        | Arunachal Pradesh        |                                      200.08 |                                       38.85 |                            35 |                                               104 |
| 13        | Nagaland                 |                                     1255.83 |                                     1392.81 |                           623 |                                              4998 |
| 14        | Manipur                  |                                     2855.92 |                                     1213.98 |                           685 |                                              2715 |
| 15        | Mizoram                  |                                      924.99 |                                     1026.35 |                          1134 |                                              9072 |
| 16        | Tripura                  |                                     2748.26 |                                      945.84 |                           642 |                                              5355 |
| 17        | Meghalaya                |                                     1250.62 |                                     1056.12 |                           603 |                                              4824 |
| 18        | Assam                    |                                     4969.87 |                                     2869.74 |                          3483 |                                              9026 |
| 19        | West Bengal              |                                     4765.49 |                                     3400.65 |                          1873 |                                             12746 |
| 20        | Jharkhand                |                                     3462.64 |                                     3559.74 |                          1839 |                                             12873 |
| 21        | Odisha                   |                                     6282    |                                     5736.32 |                          2876 |                                             17629 |
| 22        | Chhattisgarh             |                                     4303.8  |                                     2829.38 |                          1277 |                                              9496 |
| 23        | Madhya Pradesh           |                                     7729.4  |                                     8117.17 |                          1979 |                                             16497 |
| 24        | Gujarat*                 |                                     6536.16 |                                     6339.73 |                          1419 |                                             14960 |
| 25        | Maharashtra **           |                                     9718.42 |                                     5285.03 |                          2497 |                                             20161 |
| 26        | Andhra Pradesh           |                                     4496.85 |                                     2262.37 |                           642 |                                              7740 |
| 27        | Telangana                |                                     2094    |                                     2217.57 |                           660 |                                              7761 |
| 28        | Karnataka                |                                    10846.9  |                                     5898.01 |                          2140 |                                             17284 |
| 29        | Goa                      |                                      159.4  |                                      165.43 |                            91 |                                               500 |
| 30        | Lakshadweep              |                                       90    |                                        0    |                             0 |                                                 0 |
| 31        | Kerala                   |                                     2731.6  |                                     2720.48 |                          1369 |                                              9653 |
| 32        | Tamil Nadu               |                                     7110.8  |                                     5497.54 |                          2463 |                                             20836 |
| 33        | Puducherry               |                                      100    |                                      106.37 |                            65 |                                               447 |
| 34        | Andaman& Nicobar Islands |                                      158    |                                       65.11 |                           119 |                                               293 |
|           | TOTAL                    |                                   128620    |                                   102006    |                         44340 |                                            323362 |

## State-wise position of PMEGP during2016-17

|   Sr. No. | State/UT                 |   Margin Money subsidy allocated (Rs. lakh) |   Margin Money subsidy utilized# (Rs. lakh) |   Number of projects assisted |   Estimated employment generated (No. of persons) |
|-----------|--------------------------|---------------------------------------------|---------------------------------------------|-------------------------------|---------------------------------------------------|
|         1 | Jammu& Kashmir           |                                     3541.26 |                                     2621.4  |                          1492 |                                             11691 |
|         2 | Himachal Pradesh         |                                     1970.11 |                                     2185.27 |                           941 |                                              6916 |
|         3 | Punjab                   |                                     3504.09 |                                     3181.6  |                          1266 |                                              9858 |
|         4 | UT Chandigarh            |                                      100    |                                       82.84 |                            47 |                                               376 |
|         5 | Uttarakhand              |                                     2140.93 |                                     2122.33 |                          1345 |                                              9890 |
|         6 | Haryana                  |                                     3371.31 |                                     3383.53 |                          1377 |                                             11016 |
|         7 | Delhi                    |                                      300    |                                      182.41 |                           119 |                                               952 |
|         8 | Rajasthan                |                                     5500.99 |                                     4641.6  |                          1749 |                                             13408 |
|         9 | Uttar Pradesh            |                                    12981.5  |                                    14271    |                          4074 |                                             36315 |
|        10 | Bihar                    |                                     6909.77 |                                     8336.51 |                          3234 |                                             25872 |
|        11 | Sikkim                   |                                      200    |                                       35.93 |                            27 |                                               201 |
|        12 | Arunachal Pradesh        |                                      500    |                                      440.34 |                           301 |                                              1984 |
|        13 | Nagaland                 |                                     1751.68 |                                     2007.48 |                          1018 |                                              7783 |
|        14 | Manipur                  |                                     1741.7  |                                     2162.78 |                          1265 |                                              8419 |
|        15 | Mizoram                  |                                     1253.49 |                                      491.96 |                           425 |                                              3400 |
|        16 | Tripura                  |                                     1578.62 |                                     3734.66 |                          2297 |                                             17961 |
|        17 | Meghalaya                |                                     1748.1  |                                      407.89 |                           329 |                                              2632 |
|        18 | Assam                    |                                     5636.41 |                                     4910.38 |                          6028 |                                             31498 |
|        19 | West Bengal              |                                     3680.3  |                                     6270.32 |                          3528 |                                             26604 |
|        20 | Jharkhand                |                                     4165.73 |                                     2654.35 |                          1300 |                                             10400 |
|        21 | Odisha                   |                                     5201.65 |                                     6848.96 |                          3029 |                                             20392 |
|        22 | Chhattisgarh             |                                     4493.3  |                                     4070.73 |                          1598 |                                             12856 |
|        23 | Madhya Pradesh           |                                     8527.32 |                                     8346.06 |                          1940 |                                             15520 |
|        24 | Gujarat*                 |                                     5398.45 |                                     7561.61 |                          1386 |                                             11629 |
|        25 | Maharashtra **           |                                     6111.29 |                                     6001.36 |                          2325 |                                             17799 |
|        26 | Andhra Pradesh           |                                     2336.59 |                                     4916.08 |                          1357 |                                             14148 |
|        27 | Telangana                |                                     2004.86 |                                     2561.72 |                           664 |                                              6445 |
|        28 | Karnataka                |                                     4941.62 |                                    11609.6  |                          3575 |                                             30286 |
|        29 | Goa                      |                                      371.62 |                                      191.44 |                            90 |                                               660 |
|        30 | Lakshadweep              |                                       50    |                                        0    |                            00 |                                                00 |
|        31 | Kerala                   |                                     2446.06 |                                     3350.68 |                          1584 |                                             13068 |
|        32 | Tamil Nadu               |                                     5291.23 |                                     8213.92 |                          2941 |                                             25764 |
|        33 | Puducherry               |                                      150    |                                      103.65 |                            66 |                                               699 |
|        34 | Andaman &Nicobar Islands |                                      100    |                                      193.46 |                           195 |                                              1398 |

#  including un-utilized balance funds of previous year.

* including Daman & Diu.

** including Dadra & Nagar Haveli

## State-wise position of PMEGP during 2017-18

| Sr. No.   | State/UT                 |   Margin Money subsidy allocated (Rs. lakh) |   Margin Money subsidy utilized# (Rs. lakh) |   Number of projects assisted |   Estimated employment generated (No. of persons) |
|-----------|--------------------------|---------------------------------------------|---------------------------------------------|-------------------------------|---------------------------------------------------|
| 1         | Jammu& Kashmir           |                                     3272.84 |                                     6913.15 |                          3753 |                                             30024 |
| 2         | Himachal Pradesh         |                                     1785.19 |                                     2042.5  |                           886 |                                              7088 |
| 3         | Punjab                   |                                     3272.84 |                                     3930.46 |                          1520 |                                             12160 |
| 4         | UT Chandigarh            |                                      100    |                                       90.07 |                            45 |                                               360 |
| 5         | Uttarakhand              |                                     1933.95 |                                     2880.98 |                          1613 |                                             12904 |
| 6         | Haryana                  |                                     3272.84 |                                     4167.04 |                          1718 |                                             13744 |
| 7.        | Delhi                    |                                      300    |                                      150.65 |                           115 |                                               920 |
| 8         | Rajasthan                |                                     4909.26 |                                     4929.04 |                          1577 |                                             12614 |
| 9         | Uttar Pradesh            |                                    11157.4  |                                    16866.5  |                          5432 |                                             43456 |
| 10        | Bihar                    |                                     5653.09 |                                     6558.85 |                          2307 |                                             18456 |
| 11        | Sikkim                   |                                      200    |                                       46.36 |                            37 |                                               296 |
| 12        | Arunachal Pradesh        |                                      500    |                                      309.42 |                           209 |                                              1672 |
| 13        | Nagaland                 |                                     1728.96 |                                     2672.15 |                           930 |                                              7440 |
| 14        | Manipur                  |                                     1434.32 |                                     1383.87 |                           600 |                                              4800 |
| 15        | Mizoram                  |                                     1245.66 |                                      274.05 |                           249 |                                              1992 |
| 16        | Tripura                  |                                     1283.75 |                                     1892.3  |                          1116 |                                              8928 |
| 17        | Meghalaya                |                                     1720.32 |                                      118.27 |                            75 |                                               600 |
| 18        | Assam                    |                                     5351.99 |                                     2362.48 |                          2282 |                                             18256 |
| 19        | West Bengal              |                                     2975.31 |                                     3891.37 |                          1366 |                                             10928 |
| 20        | Jharkhand                |                                     3570.37 |                                     2439.53 |                          1111 |                                              8888 |
| 21        | Odisha                   |                                     4462.97 |                                     5680.65 |                          2399 |                                             19192 |
| 22        | Chhattisgarh             |                                     4016.67 |                                     3398.4  |                          1463 |                                             11704 |
| 23        | Madhya Pradesh           |                                     7587.04 |                                     7631.41 |                          1804 |                                             14432 |
| 24        | Gujarat*                 |                                     4909.26 |                                    12883.6  |                          1876 |                                             15008 |
| 25        | Maharashtra **           |                                     5355.56 |                                     8749.73 |                          3329 |                                             26632 |
| 26        | Andhra Pradesh           |                                     1933.95 |                                     5336.1  |                          1527 |                                             12216 |
| 27        | Telangana                |                                     4611.73 |                                     4030.21 |                          1190 |                                              9520 |
| 28        | Karnataka                |                                     4462.97 |                                     6477.94 |                          2115 |                                             16920 |
| 29        | Goa                      |                                      297.53 |                                      149.07 |                            50 |                                               400 |
| 30        | Lakshadweep              |                                      100    |                                        0    |                            00 |                                                00 |
| 31        | Kerala                   |                                     2082.72 |                                     2910.44 |                          1347 |                                             10776 |
| 32        | Tamil Nadu               |                                     4760.5  |                                     9717.58 |                          4095 |                                             32760 |
| 33        | Puducherry               |                                      100    |                                       78.95 |                            44 |                                               352 |
| 34        | Andaman& Nicobar Islands |                                      100    |                                      276.95 |                           218 |                                              1744 |
|           | TOTAL                    |                                   100449    |                                   131240    |                         48398 |                                            387184 |

## State-wise position of PMEGP during 2018-19 (as on 30.06.2018)

| Sr. No.   | State/UT          | Margin Money subsidy allocated (Rs. lakh)   | Margin Money subsidy utilized# (Rs. lakh)   | Number of projects assisted   | Estimated employment generated (No. of persons)   |
|-----------|-------------------|---------------------------------------------|---------------------------------------------|-------------------------------|---------------------------------------------------|
| 1         | A &NIslands       | 188.64                                      | 50.85                                       | 37                            | 296                                               |
| 2         | Andhra Pradesh    | 3742.74                                     | 1489.96                                     | 392                           | 3136                                              |
| 3         | Arunachal Pradesh | 471.6                                       | 153.84                                      | 104                           | 832                                               |
| 4         | Assam             | 10507.7                                     | 1153.43                                     | 1112                          | 8896                                              |
| 5         | Bihar             | 10869.49                                    | 1981.22                                     | 733                           | 5864                                              |
| 6         | Chhattisgarh      | 6339.11                                     | 1398.19                                     | 752                           | 6016                                              |
| 7         | Delhi             | 282.96                                      | 8.19                                        | 5                             | 40                                                |
| 8         | Goa               | 605.15                                      | 19.32                                       | 4                             | 32                                                |
| 9         | Gujarat*          | 7501.95                                     | 3271.57                                     | 454                           | 3632                                              |
| 10        | Haryana           | 4664.1                                      | 799.23                                      | 341                           | 2728                                              |
| 11        | Himachal Pradesh  | 2711.4                                      | 312.42                                      | 127                           | 1016                                              |
| 12        | Jammu& Kashmir    | 4745.12                                     | 2000.27                                     | 1111                          | 8888                                              |
| 13        | Jharkhand         | 6193.49                                     | 731.05                                      | 308                           | 2464                                              |
| 14        | Karnataka         | 6939.66                                     | 1925.29                                     | 695                           | 5560                                              |
| 15        | Kerala            | 3667.38                                     | 952.24                                      | 464                           | 3712                                              |
| 16        | Lakshadweep       | 47.16                                       | 0                                           | 0                             | 0                                                 |
| 17        | Madhya Pradesh    | 11952.9                                     | 1200.25                                     | 304                           | 2432                                              |
| 18        | Maharashtra **    | 8833.6                                      | 2522.06                                     | 1093                          | 8744                                              |
| 19        | Manipur           | 2544.19                                     | 317.99                                      | 196                           | 1568                                              |
| 20        | Meghalaya         | 2653.7                                      | 90.19                                       | 66                            | 528                                               |
| 21        | Mizoram           | 2045.45                                     | 242.31                                      | 178                           | 1424                                              |
| 22        | Nagaland          | 2825.5                                      | 310.2                                       | 154                           | 1232                                              |
| 23        | Odisha            | 7719.19                                     | 1691.83                                     | 773                           | 6184                                              |
| 24        | Puducherry        | 141.48                                      | 9.66                                        | 6                             | 48                                                |
| 25        | Punjab            | 4617.17                                     | 678.86                                      | 309                           | 2472                                              |
| 26        | Rajasthan         | 7743.65                                     | 1563.39                                     | 542                           | 4336                                              |
| 27        | Sikkim            | 188.64                                      | 11.29                                       | 5                             | 40                                                |
| 28        | Tamil Nadu        | 7438.88                                     | 1204.57                                     | 574                           | 4592                                              |
| 29        | Telangana         | 7250.96                                     | 555.88                                      | 186                           | 1488                                              |
| 30        | Tripura           | 1965.99                                     | 453.34                                      | 233                           | 1864                                              |
| 31        | UT Chandigarh     | 94.32                                       | 15.66                                       | 7                             | 56                                                |
| 32        | Uttar Pradesh     | 19171.59                                    | 5147.15                                     | 1559                          | 12472                                             |
| 33        | Uttarakhand       | +                                           | 950.81                                      | 581                           | 4648                                              |
| 34        | West Bengal       | 6423.74                                     | 1468.1                                      | 478                           | 3824                                              |
|           |                   | 166064                                      | 34680.61                                    | 13883                         | 111064                                            |
|           | TOTAL             |                                             |                                             |                               |                                                   |