Lok Sabha Question No. 2460 (UNSTARRED), answered on 2021-03-09
Subject: Rural Industries
Ministry: RURAL DEVELOPMENT
Asked by: Ramesh Bidhuri

## GOVERNMENT OF INDIA MINISTRY OF RURAL DEVELOPMENT DEPARTMENT OF RURAL DEVELOPMENT

## LOK  SABHA UNSTARRED QUESTION NO. 2460

ANSWERED ON 09.03.2021

## RURAL INDUSTRIES

## 2460.   SHRI RAMESH BIDHURI:

Will the Minister of RURAL DEVELOPMENT be pleased to state:

- (a) whether  the  Government  has  formulated  new  schemes  for  development  of  Rural Industries to benefit the people hit by drought and floods;
- (b) if so, the details of such schemes; and
- (c) the  details  of  the  States  hit  by  drought  and  floods  selected  for  development  of  Rural Industries?

## ANSWER

## MINISTER OF RURAL DEVELOPMENT (SHRI NARENDRA SINGH TOMAR)

- (a)      No, Sir. The Government has not formulated any new scheme for Development of Rural Industries  to  benefit  the  people  hit  by  calamities  like  drought  and  floods.  However,  the following schemes are being implemented in the rural areas related to Rural Industries.
- (i) The Ministry of Rural Development is implementing the Start-up Village Entrepreneurship  Programme  (SVEP),  as  a  sub-scheme  under  Deendayal  Antyodaya Yojana -National Rural Livelihoods Mission (DAY-NRLM). The block is the unit of implementation of SVEP. The objective of the scheme is to help the rural poor (SHGs) to set-up enterprises at the village level in non-agricultural sectors. Besides providing start-up capital, a cadre of Community Resource Persons-Enterprise Promotion (CRPEP)  is  set  up  to  provide  business  support  services  to  enterprises.  SHG  members  are supported under the project.

As per the SVEP guidelines, States have to submit supplementary Annual Action Plans (AAPs) for the identified blocks. Once approved, a Detailed Project Report (DPR) is prepared  for  the  block  which  provides,  among  other  things,  the  details  regarding  the potential number of enterprises to be formed over the 4-year project period.

The scheme was approved on 6th May, 2015 and the proposals were invited from the State  Governments  during  2015-16.  DPRs  preparation,  approvals  and  fund  release started in 2016-17. The enterprise formation started during 2017-18.

As on 31st January, 2021, 182 projects have been approved across 29 States/UTs in the country.  The  DPRs  for  SVEP  have  been  approved  in  147  blocks  and  2.29  lakh enterprises are targeted for formation during the 4-year project period. The total fund approved is Rs.75,970 lakhs of which the central share is Rs.47,516 lakhs. Of this, an amount of Rs.31,035 lakhs have been released as central share to the States. Enterprise formation has started in 137 blocks and 1,34,229 enterprises have been formed so far.

- (ii) The  Ministry  of  Micro  Small  and  Medium  Enterprises  (MSME)  is  implementing  a Scheme  of  Fund  for  Regeneration  of  Traditional  Industries  (SFURTI)  across  the country  with  the  view  to  organize  traditional  industries  and  artisans  into  clusters  to make them competitive and increase their income. SFURTI clusters are of two types i.e.  Regular  Cluster (500 artisans) with Government assistance of up to Rs. 2.5 crore and  Major  Cluster  (more  than  500  artisans)  with  Government  assistance  up  to  Rs.5 crore.  The  artisans  are  organized  into  Special  Purpose  Vechicles  which  can  be  (1)  a Society registered under Societies (Registration) Act, 1860, (2) a Co-operative Society under  an  appropriate  statute,  (3)  a  Producer  Company  under  Section  465  (1)  of Companies Act, 2013 (18 of 2013), (4) a Section 8 Company under the Companies Act, 2013 (18 of 2013) or (5) a Trust.

As  on  28.2.2021,  there  are  371  numbers  of  Clusters  which  are  being  funded  by  the Ministry supporting 2.18 lakh artisans with a total Government assistance of Rs. 892 crore,  90 of these clusters have been implemented as per the timelines envisaged in the guidelines of the scheme.  More than Rs.708 crore has been the budgetary allocation under  the  scheme,  of  which  more  than  Rs.  586  crore  has  been  released  for  the implementation of the clusters. These clusters are spread all over the country covering 247 districts.

- (iii) The Ministry of Micro Small and Medium Enterprises (MSME) is also implementing 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. 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 women/ scheduled caste/scheduled  tribe/OBC  /minorities,  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.

Since  inception  in  2008-09  till  28.02.2021,  around  6.59  lakh  micro  units  have  been assisted  with  margin  money  subsidy  of  Rs.15,497.81  crore,  generating  sustainable employment for around 54 lakh persons.

The number of micro-enterprises setup during the last six years and current year along with  the  margin  money  subsidy  disbursed  by  the  government  is  given  in  the  below table:

PMEGP performance during last six years and current year is as under:

|   S. No. | Year      |   Margin Money subsidy disbursed (Rs. in lakh) |   Micro-Units assisted (No.) |   Estimated employment generated (No.) |
|----------|-----------|------------------------------------------------|------------------------------|----------------------------------------|
|        1 | 2014-15   |                                         112254 |                        48168 |                                 357502 |
|        2 | 2015-16   |                                         102006 |                        44340 |                                 323362 |
|        3 | 2016-17   |                                         128094 |                        52912 |                                 407840 |
|        4 | 2017-18   |                                         131240 |                        48398 |                                 387184 |
|        5 | 2018-19   |                                         207001 |                        73427 |                                 587416 |
|        6 | 2019-20   |                                         195082 |                        66653 |                                 533224 |
|        7 | 2020- 21* |                                         150009 |                        48743 |                                 389944 |

- (b)  Does not arise.
- (c)  Does not arise.

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