Lok Sabha Question No. 2054 (UNSTARRED), answered on 2022-12-19
Subject: Development of Small Scale Industries
Ministry: SKILL DEVELOPMENT AND ENTREPRENEURSHIP
Asked by: Amar Singh

## GOVERNMENT OF INDIA MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP

## LOK SABHA

## UNSTARRED QUESTION NO. 2054

ANSWERED ON 19.12.2022

## DEVELOPMENT OF SMALL SCALE INDUSTRIES

2054.  DR. AMAR SINGH:

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

- (a)       whether the Government is cognizant that the development of the small industry depends on the promotion of the entrepreneurial talents and skills; and
- (b)       if so, the details of the initiatives taken/ proposed to be taken by the Government to strengthen the entrepreneurial development programmes for promoting the entrepreneurial quality keeping in mind that entrepreneurship is an important factor in the development of small scale industries?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF SKILL  DEVELOPMENT  AND ENTREPRENEURSHIP

(SHRI RAJEEV CHANDRASEKHAR)

- (a) & (b) Yes, Sir. The Government is cognizant that the development of the small industry depends on the promotion of the entrepreneurial talents and skiIIs. Ministry of Skill Development and Entrepreneurship (MSDE) through National Institute for Entrepreneurship and Small Business Development (NIESBUD) and Indian Institute of Entrepreneurship  (IIE)  has  been  working  for  promoting  entrepreneurial  talents  in  the country. The details of the various initiatives taken by MSDE are as under:
- (i) Pilot project on Entrepreneurship Development in Holy Cities is a project of the MSDE which aims to catalyse local entrepreneurial activities through involvement of potential and existing entrepreneurs, unemployed youth, college dropouts, youth from backward  community  etc.  The  project  is  being  implemented  in  Bodh  Gaya,  Kollur, Haridwar,  Puri,  Pandharpur  and  Varanasi.  The  total  number  of  beneficiaries  trained under the project is 7,185 out of which 4,535 were women.
- (ii) PM  YUVA  Pilot  Project MSDE  implemented  PM-YUVA  Pilot  Project  (from November,  2019  to  March,  2022)  towards  creating  an  enabling  ecosystem  through entrepreneurship  education,  training,  advocacy  and  easy  access  to  entrepreneurship network. It focused on students/trainees and alumni coming out from Skilling ecosystem {i.e. Industrial Training Institutes (ITIs), Polytechnics, Pradhan Mantri Kaushal Kendras (PMKKs) and Jan Shikshan Sansthans (JSSs)}. The project was implemented through organisations  having  experience  in  entrepreneurship  development,  entrepreneurship training as well as mentoring and handholding in Ten States and Two Union Territories

(viz.  Assam,  Bihar,  Kerala,  Maharashtra,  Meghalaya,  Tamil  Nadu,  Telangana,  Uttar Pradesh, Uttarakhand, West Bengal, Delhi and Puducherry). The details of entrepreneurial activity under the PM-YUVA Project are as under:

| S   | No.Activity                                               | Total No. Participants                                  | of   |
|-----|-----------------------------------------------------------|---------------------------------------------------------|------|
| 1   | Training of Trainers (Faculty Facilitator Training) 443   | Training of Trainers (Faculty Facilitator Training) 443 |      |
| 2   | Entrepreneurship Awareness Program (Students Orientation) | 34760                                                   |      |
| 3   | Entrepreneurship Development Program                      | 17797                                                   |      |
| 4   | Community Awareness Camps                                 | 5003                                                    |      |
| 5   | Faculty Mentor Training                                   | 227                                                     |      |
| 6   | Mentoring Camp                                            | 3951                                                    |      |
|     | Grand Total                                               | 62181                                                   |      |

Further, the details of the various initiatives taken by other Ministries/Departments  for  promoting  entrepreneurial  talents  in  the  country  are  as under:

- (i) Entrepreneurship  and  Skill  Development  Programme  (ESDP): Ministry  of Micro,  Small  and  Medium  Enterprises  (MSME)  runs  a  scheme  to  strengthen  the Entrepreneurial programmes for promoting the entrepreneurial quality. The objective of scheme  is  to  motivate  youth  representing  different  sections  of  the  society  including SC/ST/Women,  differently-abled,  Ex-servicemen  and  BPL  persons  to  consider  self employment or entrepreneurship as one of the career options. The ultimate objective is to  promote  new  enterprises,  capacity  building  of  existing  MSMEs  and  inculcating entrepreneurial  culture  in  the  country.  The  year-wise  details  of  total  number  of programmes conducted and the number of beneficiaries got benefited under the ESDP scheme is given below:
- (ii) Prime  Minister  Employment  Generation  Programme  (PMEGP): Ministry  of Micro,  Small  and  Medium  Enterprises  (MSME)  is  implementing  PMEGP,  which  is  a major credit-linked subsidy programme aimed at generating self-employment opportunities through establishment of new micro-enterprises in the non-farm sector by helping traditional artisans and unemployed youth. The Scheme was launched during 2008-09.  Under  PMEGP  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

| Financial Year      |   Total no. of Programme conducted under ESDP scheme (in Nos.) |   Total no. of Beneficiaries/ Trainees under ESDP scheme (in Nos.) |
|---------------------|----------------------------------------------------------------|--------------------------------------------------------------------|
| 2018-19             |                                                            265 |                                                               9505 |
| 2019-20             |                                                           6168 |                                                             241963 |
| 2020-21             |                                                            529 |                                                              27604 |
| 2021-22             |                                                            707 |                                                              58924 |
| 2022-23 (till date) |                                                            468 |                                                              31001 |

Tribe/ OBC/ Minorities/ Women, Transgender, Ex-Serviceman, Physically Handicapped, North  Eastern  Region  (NER),  Aspirational  Districts,  Hilly  and  Border  areas  etc.  the margin  money  subsidy  is  35%  in  rural  areas  and  25%  in  urban  areas.  Women  are covered as special category under PMEGP and are entitled to higher rate of subsidy and lower personal contribution.  Under PMEGP, 35% to 40% of the total margin money subsidy is disbursed to women.

(iii) Startup Village Entrepreneurship Programme (SVEP): Start-up Village Entrepreneurship  Programme  (SVEP),  the  sub-scheme  under  Deendayal  Antyodaya Yojana  -  National  Rural  Livelihood  Mission  (DAY-NRLM)  implemented  by  Ministry  of Rural Development, has the objective of supporting Self Help Groups (SHGs) and their family members to set-up small enterprises in the non-farm sector. SVEP projects are implemented in blocks and the project durations are of four years. SVEP develops an ecosystem  for  enterprise  development  in  rural  areas,  with  SHG  households,  which includes  Community  Enterprise  Fund  (CEF)  (a  dedicated  fund  for  providing  loans  to entrepreneurs)  and  Cadre  of  Community  Resource  Persons-Enterprise  Promotion (CRP-EP)  (for  providing  Business  Support  Services).  Under  SVEP, t he  maximum project cost for one block is Rs 6.50 Crore inclusive of Govt. of India and State Share. Govt. of India (GoI) share is 90% for North Eastern Region (NER) and Hilly states while it is 60% for the remaining States.

(iv) Stand-up India Scheme (SUPI) of Department of Financial Services, Ministry of Finance,  was launched by the Hon'ble Prime Minister on 05 th  April, 2016 and has been extended upto the year 2025. The objective of the Stand-Up India Scheme is to facilitate loans from Scheduled Commercial Banks (SCBs) of value between Rs. 10 lakh and Rs. 1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and one-woman  borrower  per  bank  branch  for  setting  up  a  greenfield  enterprise  in manufacturing, services or trading sector and also for the activities allied to agriculture. Pursuant  to  an  announcement  made  by  the  Union  Finance  Minister  in  the  Budget Speech FY 2021-22, the following changes have been incorporated under the scheme to  encourage  entrepreneurship:  (a)  the  extent  of  margin  money  to  be  brought  by  the borrower  is  reduced  from  'upto  25%  to  upto  15%'  of  the  project  cost.  However,  the borrower will continue to contribute at least 10% of the project cost as own contribution; and  (b)  Loans  for  enterprises  in  'Activities  allied  to  Agriculture'  eg.  pisciculture, beekeeping,  poultry,  livestock,  rearing,  grading,  sorting,  aggregation  agro  industries, dairy,  fishery,  agriclinic  and  agribusiness  centers,  food  and  agro-processing,  etc. (excluding crop loans, land improvement such as canals, irrigation, wells) and services supporting these, are eligible for coverage under the Scheme.

(v) Pradhan Mantri Mudra Yojana (PMMY) of Department of Financial Services, Ministry  of  Finance,   was  launched  by  the  Hon'ble  Prime  Minister  on  08th April, 2015 to extend collateral free loans upto Rs. 10 lakh to individuals to enable them to  set  up  or  expand  their  business  activities.  The  Scheme  facilitates  loans  in  three categories namely Shishu (up to Rs. 50,000), Kishore (Rs. 50,000 to Rs. 5 lakh) and Tarun  (Rs.  5  lakh  to  Rs.  10  lakh)  for  income  generating  activities  in  Manufacturing, Trading, Services sector and also for the activities allied to agriculture.

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