Lok Sabha Question No. 2563 (UNSTARRED), answered on 2023-03-16
Subject: Promotion of Micro and Small Industry
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Gajendra Singh Patel

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

## LOK SABHA UNSTARRED QUESTION NO. 2563 TO BE ANSWERED ON 16.03.2023

## PROMOTION OF MICRO AND SMALL INDUSTRY

## †2563. SHRI GAJENDRA SINGH PATEL:

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

- (a) the  name and details of schemes being implemented by the Government to promote micro and small industry in rural areas;
- (b) whether any special grant is being provided by the Government to promote micro and small industry in tribal dominated areas;
- (c) the  details  of  various  schemes  related  to  micro  and  small  industry  being  implemented  in aspirational districts; and
- (d) the  name  and  details  of  schemes  being  implemented  in  Khargone-Barwani  Parliamentary Constituency?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI BHANU PRATAP SINGH VERMA)

(a) to (d): Ministry  of  MSME  is  promoting micro  and  small  industry  in  all  districts  including rural  areas,  tribal  dominated  areas,  aspirational  districts  and  Khargone-Barwani  Parliamentary Constituency through following schemes:

1. Prime  Minister's  Employment  Generation  Programme  (PMEGP):  PMEGP  is  a  creditlinked  subsidy  programme  launched  by  Ministry  of  MSME  for  generation  of  employment opportunities through establishment of micro enterprises in non-farm sector.

Under  PMEGP,  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 Castes, Scheduled Tribes, OBCs, Minorities, Women, Transgenders, Ex-servicemen,  Differently  Able,  beneficiaries  belonging  to  Northeastern  Region,  Aspirational District, Hill and Border areas, etc., the Margin Money subsidy is 35% in rural areas and 25% in urban area. The maximum cost of project is Rs.50 lakhs in the manufacturing sector and Rs.20 lakhs in the service sector.

Assistance  is  given  to  the  existing  micro  units  setup  under  PMEGP  for  upgradation  through  2 nd financial assistance of upto Rs. 1 cr. with subsidy upto 15% (20% for NER and Hill areas). Besides, regular handholding through experts is provided to the existing entrepreneurs on various financial, marketing and operational aspects for scaling up their units.

Under PMEGP, around 80% of the total units are in rural areas, whereas 14% of total units are in Aspirational  districts.  Further,  nearly  50%  of  the  total  units  are  owned  by  women  and  SC/ST entrepreneurs.

Since its inception in 2008 and till 13.03.2023, more than 8.58 lakhs enterprises have been assisted generating  a  total  estimated  employment  of  around  70  lakhs.  Around  Rs.  21,509  cr.  has  been disbursed till date as Margin Money subsidy under PMEGP.

Details on Scheduled Tribes, Aspirational Districts and Khargone-Barwani Parliamentary Constituency beneficiaries under PMEGP during last year and current year is as below:

| Performance under PMEGP scheme                             | Performance under PMEGP scheme                             | Performance under PMEGP scheme                             | Performance under PMEGP scheme                             | Performance under PMEGP scheme                             | Performance under PMEGP scheme                             | Performance under PMEGP scheme                             |
|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------|
| (Units Assisted: in numbers and Margin Money: Rs. in lakh) | (Units Assisted: in numbers and Margin Money: Rs. in lakh) | (Units Assisted: in numbers and Margin Money: Rs. in lakh) | (Units Assisted: in numbers and Margin Money: Rs. in lakh) | (Units Assisted: in numbers and Margin Money: Rs. in lakh) | (Units Assisted: in numbers and Margin Money: Rs. in lakh) | (Units Assisted: in numbers and Margin Money: Rs. in lakh) |
| Year                                                       | Scheduled Tribes                                           | Scheduled Tribes                                           | Aspirational Districts                                     | Aspirational Districts                                     | Khargone-Barwani Parliamentary Constituency                | Khargone-Barwani Parliamentary Constituency                |
|                                                            | Units Assisted                                             | Margin Money Disbursed                                     | Units Assisted                                             | Margin Money Disbursed                                     | Units Assisted                                             | Margin Money Disbursed                                     |
| 2021-22                                                    | 7225                                                       | 16396                                                      | 15002                                                      | 37622                                                      | 433                                                        | 1068.23                                                    |
| 2022-23 (upto 28.02.2023)                                  | 3664                                                       | 10564                                                      | 8912                                                       | 23476                                                      | 186                                                        | 477.49                                                     |

2. Gramodyog Vikas Yojana: KVIC, under various components of the scheme, imparts skill development training  to  rural  and  traditional  artisans  in  various  industries  and  provide  them  with advanced tools and equipment to promote entrepreneurship among rural people:
- i. Honey  Mission  scheme  promotes  Bee  Keeping  activities  and  provides  self-sustaining employment opportunities among farmers, adivasies and unemployed youth in rural India. Under the scheme, beneficiaries are provided with 10 bee boxes with live bee colonies, tool kit and training. From  2017-18  till  2022-23  (31.12.2022)    177039  bee  boxes  have  been  distributed  to  17823 beekeepers.
- ii. Kumbhar Sashaktikaran Programme supports rural potters through distribution of Electric Pottery  Wheels  along-with  other  tools  and  equipment,  training,  etc.  From  2018-19  till  2022-23 (31.01.2023)  24,410  electric  pottery  wheels  have  been  distributed  to  trained  potters  under  this programme.
- iii. Agarbatti Programme includes oil & soap industry, aromatic oil & fragrances, cosmetic & beauty  products,  etc.  Under  the  scheme,  10  days  training  is  provided  to  agarbatti  manufacturing artisans through master trainers and are provided with agarbatti machines (automatic and manual), toolkit  and  equipment  to  individual  beneficiaries/artisans.  From  2020-21  till  31.01.2023,  1000 beneficiaries have been trained and provided with pedal operated agarbatti making machine.
- iv. Leather Footwear activity provides machine/tools and 25 days training to artisans.  From 2018-19 till 09.02.2023, 3094 beneficiaries have been assisted with tools and equipment.
3. Scheme  of  Fund  for  Regeneration  of  Traditional  Industries  (SFURTI):  Under  this scheme, traditional industries and artisans are organized into collective manufacturing enterprises for making  value  added  traditional  products  and  provide  the  artisans  with  enhanced  sustainable employment.  Assistance  is  provided  for  establishment  of  Common  Facility  Centers  (CFCs), procurement of new machineries, along with skill upgradation, marketing and design support, etc. The  major  sectors  covered  under  SFURTI  include  handicrafts,  textiles,  bamboo,  agro-processing, honey, khadi, coir, etc.

A total of 498 clusters have been approved under SFURTI since 2015-16, with a total Government of India assistance of Rs. 1292.24 cr., directly benefitting 2.94 lakh artisans across the country. Under SFURTI,  0.58  lakhs  artisans  (20%)  are  from  Tribal  community,  45  are  100%  Tribal  clusters,  89 clusters are in Aspirational districts and 2 clusters are in Khargone-Barwani constituency.

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