Lok Sabha Question No. 206 (STARRED), answered on 2020-03-05
Subject: Prime Minister’s Employment Generation Programme
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Kani K. Navas, Balubhau (Alias Suresh Narayan) Dhanorkar

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

## LOK SABHA STARRED QUESTION NO. *206 TO BE ANSWERED ON 05.03.2020

## PRIME MINISTER'S EMPLOYMENT GENERATION PROGRAMME

- *206.   SHRI K. NAVASKANI:

## SHRI BALUBHAU ALIAS SURESH NARAYAN DHANORKAR:

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

- (a)   whether the loans under Prime Minister's Employment Generation Programme (PMEGP)/Pradhan Mantri Rozgar Yojana are not being disbursed to the youths in various States including Maharashtra and Tamil Nadu;
- (b)   if so, the details thereof and the reaction of the Government thereto;
- (c) the  quantum  of  loans  given  to  youths  in  Maharashtra  and  Tamil  Nadu under the scheme during each of the last three years and the current year and the targets fixed/achieved during the said period; and
- (d)   the  steps  taken  by  the  Government  to  achieve  the  said  targets  and  to disburse the funds under PMEGP in a proportionate manner?

## ANSWER

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

(a)to(d):   A statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (d) OF THE LOK  SABHA  STARRED  QUESTION  No.  *206  FOR  ANSWER  ON 05.03.2020

(a) & (b): No, Sir. Over the years, the number of loans and the disbursement thereof under the Prime Minister's Employment  Generation  Programme (PMEGP) have increased. In 2018-19, there was a jump by more than 50 % in the number of units supported over 2017-18. Further, the subsidy support has increased from Rs. 1020.06 crore in 2015-16 to Rs.2070.00 crore in 2018-19. The details are as follows:

| Year    |   Number of units setup |   Margin Money subsidy disbursed (Rs. in crore) |
|---------|-------------------------|-------------------------------------------------|
| 2015-16 |                   44340 |                                         1020.06 |
| 2016-17 |                   52912 |                                         1280.93 |
| 2017-18 |                   48398 |                                         1312.4  |
| 2018-19 |                   73427 |                                         2070    |

In the current year, till 29.02.2020, 48232 units have been supported with subsidy  assistance  of  Rs.1459.42  crore.  Additionally,  29265  loan  proposals have also been approved by Banks. Accordingly, the target to support setting up 78000 new micro enterprises under PMEGP in 2019-20 is likely to be achieved.

(c):   The targets fixed and achievements made during each of last three years and current year as on (02.03.2020) in Maharashtra and Tamil Nadu State are as below:

| Maharashtra                | Maharashtra                    | Maharashtra                         | Maharashtra                    | Maharashtra                         |
|----------------------------|--------------------------------|-------------------------------------|--------------------------------|-------------------------------------|
| Year                       | Target                         | Target                              | Achievement                    | Achievement                         |
|                            | No. of projects/ beneficiaries | Margin Money Subsidy (Rs. in Crore) | No. of projects/ beneficiaries | Margin Money Subsidy (Rs. in Crore) |
| 2016-17                    | 1056                           | 21.11                               | 2325                           | 60.01                               |
| 2017-18                    | 3428                           | 68.55                               | 3329                           | 87.49                               |
| 2018-19                    | 3750                           | 113.65                              | 5642                           | 152.72                              |
| 2019-20 (as on 02.03.2020) | 4022                           | 124.63                              | 3535                           | 89.83                               |

| Tamil Nadu                 | Tamil Nadu      | Tamil Nadu                          | Tamil Nadu      | Tamil Nadu                          |
|----------------------------|-----------------|-------------------------------------|-----------------|-------------------------------------|
| Year                       | Target          | Target                              | Achievement     | Achievement                         |
| Year                       | No. of projects | Margin Money Subsidy (Rs. in Crore) | No. of projects | Margin Money Subsidy (Rs. in Crore) |
| 2016-17                    | 2646            | 52.91                               | 2941            | 82.13                               |
| 2017-18                    | 3630            | 72.60                               | 4095            | 97.17                               |
| 2018-19                    | 3655            | 108.86                              | 5185            | 132.90                              |
| 2019-20 (as on 02.03.2020) | 3800            | 114.00                              | 4151            | 99.80                               |

Based  on  the  Margin  Money  subsidy  given  to  the  beneficiaries,  the estimated  quantum  of  loan  given  by  the  banks  is  calculated  as  per  a  formula which  takes  into  account  average  of  Government  subsidy  and  beneficiary contribution.

Accordingly, the estimated bank credit given to entrepreneurs in Maharashtra and Tamil Nadu under PMEGP during last three years and current year is as follows:

| Year                       | Estimated bank Credit Flow (Rs. in Crore)   | Estimated bank Credit Flow (Rs. in Crore)   |
|----------------------------|---------------------------------------------|---------------------------------------------|
|                            | Maharashtra                                 | Tamil Nadu                                  |
| 2016-17                    | 162.03                                      | 221.77                                      |
| 2017-18                    | 236.24                                      | 262.37                                      |
| 2018-19                    | 412.34                                      | 358.85                                      |
| 2019-20 (as on 02.03.2020) | 242.54                                      | 269.46                                      |

(d): Following steps have been taken to achieve the target for disbursement of Margin Money subsidy under PMEGP:

- (i) The process of application flow, including bank sanctions and disbursement,  has  been  made  faster  through  introduction  of  on-line portal.
- (ii) The  list  of  activities  has  been  expanded  to  attract  entrepreneurs  for setting up diverse units.
- (iii)  Organizing of Entrepreneurship Training Programme (EDP), mandatory before disbursal of loan by Banks, has been made online since October 2019 to provide expedited training to beneficiaries.
- (iv)  Implementing Agencies like Khadi and Village Industries Commission (KVIC), State Khadi and Village Industries Board (KVIB) and District Industries  Centres  (DICs)  are  providing  handholding  to  applicants, through call centres, online tutorials as well as physical help desks.
- (v) Awareness camps and workshops are being organized with special focus on SC/ST predominant districts and aspirational districts.
- (vi)  Regular meetings are being held by the Ministry and KVIC with Banks through Department of Financial Services.

Besides, in order to disburse the funds under PMEGP proportionately, the targets are fixed in such a manner that first a target of minimum 75 projects are allocated  to  each  district  in  a  State,  following  which  the  remaining  Margin Money target is distributed among the State/UT on the basis of the criteria such as (i) extent of backwardness, (ii) extent of unemployment, (iii) achievement of the  previous  years'  target,  (iv)  population,  (v)  availability  of  traditional  skills and raw material and (vi) special focus on 117 backward districts identified by Niti Aayog.

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