Lok Sabha Question No. 716 (UNSTARRED), answered on 2018-07-23
Subject: Self Employment Programmes
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: HEMANT TUKARAM GODSE

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

## LOK SABHA UNSTARRED QUESTION NO. 716 TO BE ANSWERED ON 23.07.2018

## SELF EMPLOYMENT PROGRAMMES

## 716.   SHRI GODSE HEMANT TUKARAM:

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

- (a) the details of the on-going self-employment programmes being implemented by the Government in the country at present;
- (b) whether the Government proposes to relax the criteria and collateral security for availing loans under the said programmes and if so, the details thereof;
- (c) whether  the  Government  proposes  to  introduce  new  women  entrepreneur schemes and if so, the details thereof; and
- (d) whether the Government proposes to include more rural cottage industries under the said programmes and if so, the details thereof?

## ANSWER

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

- (a): Self-employment  in  MSME  sector  cuts  across  different  Ministries  of  the Government of India. Various Ministries are implementing Schemes leading to selfemployment  in  their  respective  verticals.  Ministry  of  MSME  is  implementing  the following Schemes for Self-employment:
- (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  subsidy  of  Rs  10007.67  crore  providing  employment  to  an estimated 39.36 lakh persons, till 2017-18 (up to 31.03.2018).

(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, non-farm 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.

(b): As per the RBI guidelines no collateral security will be insisted upon by Banks for projects under MSME involving loan up to Rs.10 lakh.

(c) & (d): No  Madam.  However,  under  PMEGP  scheme  women  are  treated  as special category and are entitled to a higher rate of subsidy. Entrepreneurs from rural areas are also entitled to a higher subsidy compared to their counterpart in urban areas.

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