Lok Sabha Question No. 412 (STARRED), answered on 2022-03-31
Subject: Employment Opportunities in MSME Sector
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: P. Velusamy, K. Shanmuga Sundaram

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA STARRED QUESTION NO. *412

## TO BE ANSWERED ON 31.03.2022

## EMPLOYMENT OPPORTUNITIES IN MSME SECTOR

## *412  SHRI VELUSAMY P.:

SHRI SHANMUGA SUNDARAM K.:

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

- (a) the steps taken by the Union Government to create more employment opportunities under various schemes in MSME sector;
- (b) the  details  of  funds  allocated  for  the  purpose  during  the  last  three  years  and  the current year;
- (c) whether the Government proposes to increase the allocation of funds for the sector;
- (d) if so, the details thereof;
- (e) whether  the  Government  would  bear  the  Employees'  State  Insurance  (ESI)  and Employees'  Provident  Fund  (EPF)  amount  of  the  MSME  workers  to  create  conducive atmosphere for the MSME sector and employ more workers; and
- (f) if so, the details thereof and if not, the reasons therefor?

## ANSWER

## MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI NARAYAN RANE)

(a) to (f): A statement is laid on the table of the House.

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  to  (f)  OF  THE  LOK SABHA STARRED QUESTION No.*412 FOR ANSWER ON 31.03.2022

(a)& (b): Ministry of MSME, through Khadi & Village Industries Commission (KVIC), is  implementing  Prime  Minister's  Employment  Generation  Programme  (PMEGP), which  is  a  major  credit-linked  subsidy  programme,  aimed  at  generating  self-employment opportunities by establishment of micro-enterprises in the 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 Special Categories, such as  SC/ST/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. Maximum project cost for manufacturing sector is Rs.25 lakh and for service sector is Rs.10 lakh. Since its inception upto 15.03.2022, about 7.73 lakh new micro units have been assisted utilizing  Margin  Money  subsidy  of  Rs.18765.57  cr.  generating  estimated  employment opportunities for 63.42 lakh persons.

Ministry  is  also  implementing  Scheme  of  Fund  for  Regeneration  of  Traditional Industries  (SFURTI)  to  organize  traditional  industries  and  artisans  in  to  collectives  and provide  them  with  sustainable  employment  with  support  in  procurement  of  improved equipments, raw materials, construction of Common Facility Centres, training, design, and marketing support, etc. Since 2014, till date 498 clusters have been approved with around Rs. 1295 cr. of Government of India commitment benefitting around 2.87 lakh artisans.

In  addition,  KVIC  is  also  implementing  the  following  programmes  to  provide  selfemployment opportunities in rural and backward areas:

- i. Honey Mission: Under this programme, bee boxes with bee colonies, tool kits and training are provided to supplement the income of farmers, adivasis and rural youth as  beekeepers.  Since  its  inception  in  2017-18,  159659  bee  boxes  have  been distributed at a cost of Rs. 98.18 cr. benefitting around 16085 persons.
- ii. Kumhar  Sashaktikaran  Programme:  Under  this  programme,  rural  potters  have been  provided  with  new  energy  efficient  equipment  like  Electric  Pottery  Wheels, Blungers,  etc.  along  with  training.  Since  its  inception  in  2017-18,  23340  electric potteries  have  been  distributed  at  a  total  cost  of  Rs.  51.96  cr.  benefitting  around 93360 persons.

Funds allocated (Revised Estimates) for the last three years and current year under the above schemes is as under:

(Rs.in cr.)

|   Sl. No. | Name of the Programme   | 2018-19   |   2019-20 |   2020-21 |   2021-22* |
|-----------|-------------------------|-----------|-----------|-----------|------------|
|         1 | PMEGP                   | 2118.80   |   2464.44 |   2159.49 |    2500    |
|         2 | Honey Mission           | -         |     15    |     11.07 |      10.78 |
|         3 | Kumbhar Sashaktikaran   | 16.00     |     17    |     18.61 |       7.49 |
|         4 | SFURTI                  | 86.15     |    185    |    350    |     402.02 |

*Till 24.03.2022

(c)& (d): The Budget estimates for the FY 2021-22 and proposed Budget Estimates for the FY 2022-23 under the above schemes are as under:

(Rs.in cr.)

|   Sl. No. | NAMEOFTHEPROGRAMME    |   2021-22 |   2022-23 |
|-----------|-----------------------|-----------|-----------|
|         1 | PMEGP                 |   2000    |   2500    |
|         2 | Honey Mission         |      5.78 |      8.78 |
|         3 | Kumbhar Sashaktikaran |      6.02 |     11.9  |
|         4 | SFURTI                |    170    |    334    |

(e) & (f): Monthly Employees' State Insurance (ESI) contribution payable is 4% of the wages of ESI covered employees, which includes 0.75% as employee's share and 3.25% as employer's share. There is no proposal to bear the ESIC contribution in respect of MSME workers by the Government.

Under  the  Employees'  Provident  Fund  (EPF)  Scheme,  1952,  an  employee  of  any covered establishment drawing monthly wages up to Rs. 15,000 is statutorily required to join the fund and to contribute 12% of wages, which includes basic wages, dearness allowance and  retaining  allowances,  if  any.  The  employer  is  also  required  to  contribute  12%  of  the wages. Government has launched Aatmanirbhar Bharat Rozgar Yojana (ABRY)  to incentivize  employment  generation  in  Employees'  Provident  Fund  Organisation  (EPFO) registered  establishments  from  1 st October,  2020  by  payment  of  both  employee's  & employer's contributions (24% of wages) in Establishments employing up to 1000 employees & only employee's  EPF contributions  (12%  of  wages)  in  Establishments  employing  more than 1000 employees in respect of new employees. The scheme has been extended till 31 st March 2022.

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