Lok Sabha Question No. 3959 (UNSTARRED), answered on 2019-12-12
Subject: Self Help Groups in MSME Sector
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: L.S. Tejasvi Surya

## LOK SABHA UNSTARRED QUESTION NO. 3959 TO BE ANSWERED ON 12.12.2019

## SELF HELP GROUPS IN MSME SECTOR

## 3959. SHRI  L.S. TEJASVI  SURYA:

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

(a) the list of the functioning self help groups in MSME sector in Karnataka, district- wise;

(b) the  details  of  impact  of  micro  finance  on  these  self  help  groups  in Bengaluru urban;

(c) the  measures  taken  by  the  Government  to  promote  self  help  groups  in MSME sector in Karnataka particularly Bengaluru urban; and

(d) the status of the progress of the self help groups in Karnataka particularly in Bengaluru urban?

## ANSWER

## MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI NITIN GADKARI)

(a): 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  selfemployment  opportunities  through  establishment  of  micro-enterprises  in  the non-farm  sector  by  helping  traditional  artisans  and  rural/urban  unemployed youth.  Under  the  scheme,  beneficiary can  avail  loan  up  to  Rs.  25  lakh  in  the manufacturing  sector  and  Rs.  10  lakh  in  the  service  sector.  General  category beneficiaries  can  avail  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  including  Self  Help  Groups  (SHGs)  are eligible for assistance under the Scheme.

District-Wise self help groups in MSME sector in Karnataka benefitted under PMEGP are given below:

| Sl. No.   | Name of the District   |   No. of SHG |
|-----------|------------------------|--------------|
| 1.        | Bagalkot               |            1 |
| 2         | Bengaluru Urban        |           13 |
| 3         | Belgaum                |            3 |
| 4         | Bijapur                |            3 |
| 5         | Devanagere             |            4 |
| 6         | Gadag                  |            3 |
| 7         | Haveri                 |            1 |
| 8         | Mandya                 |            2 |
| 9         | Shimoga                |            7 |
| 10        | Uttara Kannada         |            2 |
| 11        | Yadagiri               |            1 |
| Total     | Total                  |           40 |

(b) to (d): 13  SHGs  in  Bengaluru  Urban  have  benefitted  from  PMEGP scheme, through which they have improved the livelihood, earnings and social status of their members. The SHGs have provided employment to rural artisans for agarbatti making and setting up of tailoring and readymade garment units. Most  of  the  tailoring  and  readymade  garment  units  are  running  successfully providing employment to 5 to 10 artisans per unit.

Ministry of MSME through KVIC has conducted 173 awareness camps and  training  programmes  in  sectors  like  agarbatti  making,  vanity  candles, phenyl products etc. to promote entrepreneurship amongst SHGs in Karnataka.

SHGs which have benefitted  from  PMEGP  have  also  been  linked  with such  trusts  which  provides  additional  financial  support  as  short  term  loan  to member  of  SHGs  to  further  improve  their  livelihood  in  Bengaluru  Urban. Further, some of the traditional artisans/members of SHGs are encouraged to set up  units  under  Scheme  of  Fund  for  Regeneration  of  Traditional  Industries (SFURTI) cluster programme of Ministry of MSME.

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