Lok Sabha Question No. 4116 (UNSTARRED), answered on 2017-03-27
Subject: Setting up of MSME Units
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: PARBHUBHAI NAGARBHAI VASAVA, BHAIRON PRASAD MISHRA, BHAGWANTH KHUBA

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

## LOK SABHA UNSTARRED QUESTION NO. †4116 TO BE ANSWERED ON 27.03.2017

## SETTING UP OF MSME UNITS

†4116.

SHRI PARBHUBHAI NAGARBHAI VASAVA: SHRI BHAIRON PRASAD  MISHRA: SHRI BHAGWANTH  KHUBA:

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

- (a) the details of the number of Micro, Small and Medium Enterprises (MSME) units set up in the country during the last three years and the current year, year-wise ;
- (b) whether the Government proposes to set up more MSME units in the country including rural and tribal areas;
- (c) if  so,  the  details  thereof  including  the  funds  allocated  for  the  purpose  and number  of  persons  likely  to  be  benefitted  therefrom  during  the  next  three  years, State/UT-wise;
- (d) whether the Government proposes to implement the Draft National Entrepreneurship Policy; and
- (e) if so, the details thereof and if not, the reasons therefor?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI HARIBHAI PARATHIBHAI CHAUDHARY)

(a): The  Government  does  not  maintain  information  on  the  total  number  of MSMEs set  up  in  the  country  in  a  year.  However,  as  per  registration  on  Udyog Aadhaar Memorandum (till 22 nd March, 2017), numbers of MSMEs that commenced operation during the years 2013, 2014 and 2015 are 1.59 lakh, 2.38 lakh and 3.56 lakh,  respectively.  These  figures  show  the  numbers  of  only  such  MSMEs  that  are registered on the UAM platform.

Moreover,  the  Ministry  of  MSME  is  implementing  the  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.  KVIC  is  the  national  level  nodal  agency  for implementation of the PMEGP.

The  number  of  units  set  up,  margin  money  utilized  and  total  estimated employment generated under the PMEGP Scheme during last three years and current year, year wise is given below.

(Values in crore)

| Year     |   Margin money subsidy utilized# | No. of units assisted/ to be set up   | Estimated employment generated   |
|----------|----------------------------------|---------------------------------------|----------------------------------|
| 2013-14  |                          1076.45 | 50,493                                | 378,907                          |
| 2014-15  |                          1122.54 | 48,168                                | 357,502                          |
| 2015-16  |                          1020.06 | 44,340                                | 323,362                          |
| 2016-17* |                           761.98 | 31,403                                | 235,768                          |

(b)&(c): Yes, the budgetary allocation for the PMEGP scheme is made on yearly basis,  keeping  in  view  the  last  year's  performance.  Budgetary  allocation  for  the scheme is fixed by the Ministry of Finance on yearly basis and the targets are fixed accordingly,  based  on  the  fund  allocation.  The  budgetary  allocation  for  the  year 2017-18  is  the  amount  of  Rs1024.49  crore,  out  of  which  Rs  1004.49  crore  are earmarked  for  margin  money  subsidy.  The  target  for  employment  creation  is demand-driven. A brief note on the PMEGP is enclosed at Annexure-A.

(d)&(e): The  Draft  National  Entrepreneurship  Policy  has  now  been  formalised  in the form of National Policy on Skill Development and Entrepreneurship-2015. This Policy comes under the domain of the Ministry of Skill Development & Entrepreneurship (MoSD&E). The Government is working to institutionalise policy instruments stated in the National Policy on Skill Development and Entrepreneurship-2015. The initiatives that have been taken up under the Policy are Pradhan Mantri Yuva (PM-YUVA) project on Entrepreneurship education of youth and  National  Entrepreneurship  Awards-2016.  A  note  on  these  two  initiatives  is attached at annexure B.

***

## Annexure-A referred to in reply to part (b) and (c) of the Lok Sabha Unstarred Question No. 4116 for answer on 27.03.2017

## Brief Note on the Prime Minister's Employment Generation Programme (PMEGP)

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 by helping traditional artisans and unemployed youth.

-  PMEGP was announced by PM on 15 Aug.2008, the Scheme was launched during 2008-09 by merging two employment generation schemes viz., PMRY and Rural Employment Generation Progamme (REGP).
-  Any individual above 18 years of age is eligible.
-  No  educational  qualification  is  prescribed  for  projects  costing  less  than  Rs.10  lakh  in manufacturing sector and less than Rs.5 lakh in service/ business sector.  For 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.
-  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 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, personal contribution is 5%.
-  Assistance  under  the  Scheme  is  available  only  for  new  projects.  Existing  units  and  the units  that  have  already  availed  Government  subsidy  under  any  other  scheme  of  Government  of India or State Government are not eligible.
-  Any activity (barring a few indicated in the negative list of PMEGP guidelines) can be taken up under PMEGP, broadly in the areas as mentioned below:
- (i) Agro Based & Food Processing Industry (ABFPI),
- (ii) Forest Based Industry (FBI)
- (iii) Mineral Based Industry (MBI),
- (iv) Polymer& Chemical Based industry (PCBI),
- (v) Rural Engineering & Bio Technology Industry (REBTI),
- (vi) Handmade Paper &Fibre Industry (HMPFI), and
- (vii) Service & Textiles.
-  A total of 4.02 lakh micro enterprises have been assisted with a margin money subsidy of Rs 8176.34crore providing employment to an estimated 33.76 lakh persons since 2008-09 till 201617 (28.02.2017).

## Annexure-B referred to in reply to part (d) and (e) of the Lok Sabha Unstarred Question No. 4116 for answer on 27.03.2017

## 'Pradhan Mantri YUVA' Yojana (PM-YUVA)

As  per  this  policy,  MSDE  has  recently  launched  a  scheme  on  entrepreneurship education and training called 'Pradhan Mantri YUVA' Yojana (PM-YUVA). The duration of the scheme  is  five  years  (2016-17  to  2020-21).  Entrepreneurship  Education  and  Training  will  be provided in 2200 Institutes of Higher Learning (IHL), 300 schools, 500 ITIs and 50 Entrepreneurship Development Centers (EDCs). PM YUVA will be implemented through a system of Entrepreneurship Resource and Coordination Hubs, namely, National E-hub, 6 Regional E-hub, 50  Nodal  E-hubs  and  E-hubs  (IHL,  schools,  ITIs  and  EDCs).  The  scheme  is  expected  to  create approximately  23,000  Enterprises  over  five  years  besides  setting  up  of  a  total  of  360  Social Enterprises.  The  scheme  spans  over  five  years  (2016-17  to  2020-21)  with  a  project  cost  of  Rs. 499.94 crore and will provide entrepreneurship education and training to over 10.37 lakh students in 5 years

## NATIONAL ENTREPRENEURSHIP AWARDS-2016

Further,  to  make the  entrepreneurial  ecosystem  aspirational  under this  Policy,  MSDE  has instituted National Entrepreneurship Awards to recognize the efforts of outstanding entrepreneurs and  their  ecosystem  builders.  The  major  thrust  of  this  event  is  on  institutionisation  of  robust framework  for  'National  Entrepreneurship  Award'  system  to  support  and  inspire  the  young entrepreneurs' and encourage their ecosystem builders. Involvement of youth is the main objective of this Award Scheme, ensuring that those are aspirational for the youth.

Total  of  19  awards  have  been  proposed  under  two  selection  tracks  -  Award  Track  and Recognition Track. Under the Award Track, a total of 16 first generation entrepreneurs in emerging sector  specific  domain  will  be  awarded.  This  category  also  includes  Special  Category  Segments dedicated to women, SC/ST, PwD, difficult areas and social entrepreneurship. In the second track, i.e.  the  recognition  track,  efforts  of  three  eminent  ecosystem  builders  -  institutes,  educators, mentors,  and  Hand  holding  organizations  engaged  in  entrepreneurship  development  -  will  be recognized.

The jury will comprise of eminent people in the field of Government, Industry, Investment, Banking, Non-Governmental Organisation (NGOs) and Incubators. Winners will be given a trophy, certificate and cash prize of Rs. 10,00,000 (organizations) and Rs. 5,00,000 (individuals).

To implement the scheme a Core Committee of Implementing Partners, comprising of seven premier institutes, will be nominated under the scheme. Each year one of these institutes could be nominated as the Lead Institute for implementing the awards while others will support the Lead Institute in this process. At least one knowledge partner will be identified from each zone of the country - North, East, West, South and Central. IIT-Delhi has been nominated as the lead institute for  the  National  Entrepreneurship  Awards  2016-17.  The  implementation  process  will  include mobilisation of nominations, conduct the selection process and identify winners.