Lok Sabha Question No. 1382 (UNSTARRED), answered on 2019-07-01
Subject: Job Creation
Ministry: LABOUR AND EMPLOYMENT
Asked by: Sumedhanand Saraswati, Ranjanben Dhananjay Bhatt

## GOVERNMENT OF INDIA MINISTRY OF LABOUR AND EMPLOYMENT LOK SABHA UNSTARRED QUESTION NO.1382 TO BE ANSWERED ON 01ST JULY, 2019

## JOB CREATION

## 1382.  SHRI SUMEDHANAND SARSWATI

## SHRIMATI RANJAN BEN DHANANJAY BHATT:

Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:

- (a) whether  the  Government  has  prepared  any  clear  framework  to  increase  job creation and financial opportunities and if so, the details thereof;
- (b) the areas identified for job creation and creative financial opportunities and the time limit to implement the framework;
- (c) whether the Government is seriously considering to take any concrete steps for job creation;
- (d) if so, whether any step has been taken by the Government in this regard; and
- (e) if so, the details thereof and if not, the reasons therefor?

## ANSWER

## MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT (SHRI SANTOSH KUMAR GANGWAR)

- (a) to (e): Employment generation coupled with improving employability of the youth is the priority concern of the Government.

Ministry  of  Micro,  Small  &  Medium  Enterprises  (MSME)  is  implementing  Prime Minister's  Employment  Generation  Programme  (PMEGP),  which  is  a  major  creditlinked 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.  For  setting  up  of  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.  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.  A  total  of  5.45  lakh  micro  enterprises have  been  assisted  with  a  margin  money  subsidy  of  Rs  12074.04  crore,  providing employment  opportunities  to  an  estimated  45.22  lakh  persons  since  PMEGP's inception till 31.03.2019. Pradhan Mantri Mudra Yojana (PMMY) has also been initiated by Government inter alia  for  facilitating  self-employment.  Under  PMMY  collateral  free  loans  upto  Rs.  10 lakh, are extended to micro/small business enterprises and to individuals to enable them to setup or expand their business activities. Government has taken various steps for generating employment in the country like encouraging private sector of the economy, fast tracking various projects involving substantial investment and increasing public expenditure on schemes like Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA), Pt. Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) scheme run by Ministry of Rural Development and Deendayal Antyodaya Yojana- National Urban Livelihoods Mission (DAY-NULM) run by Ministry of Housing & Urban Affairs. Pradhan Mantri Rojgar ProtsahanYojana (PMRPY) has been launched by the Ministry of  Labour  and  Employment  for  incentivising  employers  for  promoting  employment generation. Under this scheme, Government is paying entire employer's contribution (12% or as admissible) towards EPF and EPS for all eligible new employees for all sectors for 3 years. Besides these initiatives, flagship programmes of the Government such as Make in India,  Digital  India,  Swachh  Bharat  Mission,  Smart  City  Mission,  Atal  Mission  for Rejuvenation and Urban Transformation, Housing for All, Infrastructure development and  Industrial  corridors  have  the  potential  to  generate  productive  employment opportunities. Ministries/ Departments/ States run skill development schemes across various sectors to improve the employability of youth and also facilitate placements. Schemes  such  as  the  National  Apprenticeship  Promotion  Scheme  (NAPS)  wherein Government  reimburses  25  percent  of  the  stipend  payable  to  apprentices  also

enhances employability of the youth to access employment.

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