Lok Sabha Question No. 1154 (UNSTARRED), answered on 2022-07-25
Subject: Promotion of Entrepreneurship in Rural Areas
Ministry: SKILL DEVELOPMENT AND ENTREPRENEURSHIP
Asked by: Basanta Kumar Panda

## GOVERNMENT OF INDIA MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP

## LOK SABHA

## UNSTARRED QUESTION NO. 1154 TO BE ANSWERED ON 25.07.2022

## PROMOTION OF ENTREPRENEURSHIP IN RURAL AREAS

## † 1154. SHRI BASANTA KUMAR PANDA:

## Will  the  Minister  of  SKILL  DEVELOPMENT  AND  ENTREPRENEURSHIP  be pleased to state:

- (a) whether the Government or any body under its administrative control has made an efforts  to  assess  the  effectiveness  of  the  various  initiatives  of  Skill  Development  and Entrepreneurship and if so, the details thereof; and ;
- (b) the steps taken/being taken by the Government to promote Entrepreneurship in rural areas;
- (c) the details of the quantitative impact of the efforts made by the Government in this regard?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF SKILL  DEVELOPMENT AND ENTREPRENEURSHIP (SHRI RAJEEV CHANDRASEKHAR)

(a) Yes Sir. Under Skill India Mission, Ministry of Skill Development and Entrepreneurship (MSDE) has been delivering skills through various schemes viz. Pradhan Mantri Kaushal Vikas Yojana (PMKVY), Jan Sikhshan Sansthan (JSS), National Apprenticeship Promotion Scheme (NAPS) and Craftsman Training Scheme (CTS) through Industrial Training Institutes (ITIs), to youths across the country.

All schemes presently being run by MSDE have gone through third party evaluation exercise generally and also in particular, at the time of grant of extension of the respective schemes. Details of the evaluation of the Schemes implemented by MSDE are as under:

PMKVY :  PMKVY 2.0 was evaluated by NITI Aayog in October 2020 under jobs and skills sector. The impact evaluation study draws inference of the scheme level contribution to the larger  jobs  and  skills  sector  along  with  clear  reflection  of  following  strength  and  outcome achieved during implementation:

- The training provided under the scheme is relevant to the employers and they prefer candidates trained under PMKVY compared to untrained candidates.
- 52 percent of the candidates who were placed in full time/part time employment and had completed training under the RPL component received higher salary or felt that they will get higher salary compared to their peers who have no certification.
- About  94  percent  of  the  employers  surveyed  reported  that  they  would  hire  more candidates trained under the scheme.
- About 67 percent and 18 percent of the employers surveyed reported that the overall experience  with  respect  to  the  recruitment  process  was  good  and  very  good, respectively.

Further,  third-party  impact  evaluation  of  the  scheme  PMKVY  2.0  (2016-20)  was conducted by the Indian Institute of Public Administration (IIPA). The impact evaluation study draws following inference:

- The  maximum  percentage  of  beneficiaries  (70.5%)  received  placement  in  their desired skill sector.
- To ensure that high standards of quality are maintained by PMKVY Training Centres, NSDC and empanelled inspection  agencies  use  various  yardsticks.  These  involve validations,  surprise  visits,  and  monitoring  through  the  Skill  India  Portal  (SIP) (erstwhile Skills  Development Management System (SDMS)). These standards are intensified using the latest technologies.
- As  an  impact  of  the  scheme,  118.2%  change  in  monthly  wages  of  beneficiary trainees  has  been  recognized.  Average  monthly  remuneration/wages  of  surveyed beneficiaries  increases  from  Rs.  8,422.64  to  Rs.  17,871.26  post  completion  of training under PMKVY 2016-20.

JSS : Third-party impact evaluation of the scheme JSS was conducted by the Indian Institute of Public Administration (IIPA) & it was completed by July, 2020. As per the report, women representation is 79%; rural share is 50.5%; 73.4% change in the employment for enhanced livelihood; 89.1% change in the average income of each beneficiary; 85.7% mobilization of beneficiaries by JSS.

ITI :  The  final  report  of  Tracer  Study  of  ITI  Graduates  (published  in  January  2018  by  the MSDE, GoI) mentions that 63.5% of total ITI pass-outs got employed  (wage+ self,  out of which 6.7% are self-employed) and 36.4% remained unemployed and was looking for jobs. Even  though  the  first  figure  was  low  for  females  (55.3%)  as  compared  to  that  for  males (65.1%),  the  corresponding  figures  for  SCs  (65%)and  STs  (69.8%)  were  higher  than  the percentage of total pass-outs in (wage+ self) employed.

NAPS :  Third-party impact evaluation of the scheme NAPS was conducted by the National Productivity Council (NPC). As per the report, NAPS has been able to catalyze interest of both  industry  and  youths  towards  apprenticeship  training  and  coupled  with  strong  Govt. Support  and  policy  advocacy,  the  scheme  has  started  to  pick  up  the  pace.  There  is  a positive  vibe  across  establishments  and  huge  demand  for  apprenticeship.  The  two  main stakeholders,  i.e.,  apprentice  and  the  industry  see  benefits  from  the  programme.  The apprentice has found it to be useful to increase his/her chances of getting employment.

(b) Under the aegis of MSDE, National Institute of Entrepreneurship and Small Business Development (NIESBUD) has been working for the empowerment, upliftment and development  of  women  across  the  country.  The  institute  conducts  Entrepreneurship orientation programmes, Entrepreneurship Awareness Programmes, Entrepreneurship Development  Programmes  (EDP)  and  Entrepreneurship  Skill  Development  Programmes (ESDP),  Women  Entrepreneurship  Development  Programmes  (WEDP),  for  women  who wish  to  become  self-reliant  or  start  innovative  businesses.  The  focus  is  on  encouraging women entrepreneurs through appropriate incentives for women owned businesses under the  public  procurement  process.   NIESBUD  has  designed  Entrepreneurship  Development Programmes  for  the  rural  women  with  the  objective  to  inculcate  entrepreneurial  values, attitude  and  motivation  among  the  rural  women  to  take  up  challenges  to  set  up  an enterprise/group enterprise.

NIESBUD has been empanelled as National Resource Organization (NRO) by M/o Rural  Development under  Start-up  Village  Entrepreneurship  Programme  (SVEP)  for  Nonfarm  Livelihoods  to  support  States/UTs  for  capacity  building/  training  and  programme implementation.  In  continuation  to  support  the  Block  Level  programme  managers,  the Institute  has  organized  capacity  building  programme  for  SVEP  BPM  (Block  Programme Managers)  of  Madhya  Pradesh,  Uttar  Pradesh  and  West  Bengal  from  20/06/2022  to

27/06/2022  in  order  to  train  them  to  implement  the  programme  in  efficient  manner  and support the beneficiaries in micro enterprise creation.

MSDE is also implementing 'Economic Empowerment of Women Entrepreneurs and Start-ups by Women' (WEE) supported by Deutsche Gesellschaft fuer Internationale Zusammenarbeit  (GIZ)  GmbH,  on  behalf  of  the  German  Federal  Ministry  for  Economic Cooperation and Development (BMZ) - to improve the framework conditions for women-led enterprises in India. The project aims to pilot incubation and acceleration programmes for women micro entrepreneurs, enabling them to start new businesses and scale up existing enterprises in the States of Maharashtra, Rajasthan, Telangana, Uttar Pradesh and 8 North Eastern States of the country. A total of 725 women entrepreneurs have been supported under the project under both incubation and acceleration support programmes .

Further, 588  Rural  Self  Employment  Training  Institutes  (RSETIs), promoted  by Banks, are functioning across the country extending skill and entrepreneurship development training programmes  to  rural poor un-employed  youth to facilitate them  to  employ themselves  by  commencing  self-employment  units/activities.  This  Ministry  is  reimbursing cost  of  training  imparted  by  the  RSETIs  to  the  rural  poor  youth  through  the  State  Rural Livelihoods  Missions  (SRLMs),  besides  providing  infrastructure  grants  to  the  Institutions. Since inception, a total of 40.31 lakh youths have been trained and 28.40 lakh youths have been settled up-to 28 th February, 2022 .

Ministry of Rural Development is also implementing Start-up Village Entrepreneurship Programme (SVEP) as a sub-scheme under the Deendayal Antyodaya Yojana-National  Rural  Livelihoods  Mission  (DAY-NRLM)  with  the  objective  of  helping  the rural  poor  to  set-up  enterprises at the village level in  non-agricultural  sectors.  The operational unit of the project is Block. A maximum of 2,400 enterprises can be supported in one Block with the approved funds. The maximum budget for one Block under SVEP is Rs. 597.76  lakhs. A  total  of  1,97,168  enterprises  across  23  States/UTs  have  been supported so far .

- (c) Skill initiatives under the Capacity Building and Handholding Support programme for certified beneficiaries of JSS  and  Cluster  Artisans  of NER  project  has  created an entrepreneurial ecosystem within the North East Region. Till date, a total number of 1514 of beneficiaries have been trained up through EDP, Training of Trainers (ToT) on Entrepreneurship Development, ToT on Consultancy on Entrepreneurship, Financial Literacy Programme and Handholding Support programmes. Most of the beneficiaries have started their business or ventures after successfully completing their training. Most of the EDPs for Cluster Artisans  and  certified  JSS  Beneficiaries  under  Capacity  Building  and  Handholding Support  programme  have  been  conducted  in  rural  areas  through  which  promotion  of Entrepreneurship has been initiated in rural areas.

Further, under RSETIs, 28.40 lakh youths have been settled, so far and under SVEP, 1,97,168 enterprises have been set up till 28th February, 2022 .

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