Lok Sabha Question No. 1514 (UNSTARRED), answered on 2022-02-10
Subject: Expansion of MSME
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Dileshwar Kamait

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

## LOK SABHA UNSTARRED QUESTION NO.1514 TO BE ANSWERED ON 10.02.2022

## EXPANSION OF MSME

## 1514.        SHRI DILESHWAR KAMAIT:

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

- (a) whether  the  Government  has  formulated  any  action  plan  for  the  expansion  of  Small  and Medium enterprises to augment the employment opportunities in rural areas of the country;
- (b) if so, the action plan for Supaul, district in Bihar; and
- (c) the nature of the action plan along with the funds allocated by the Union Government in this regard?

## ANSWER

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

(a) to (c): Ministry  of  MSME  is  implementing  a  major  credit-linked  subsidy  programme named Prime Minister's Employment Generation Programme (PMEGP) since 2008-09 with Khadi and  Village  Industries  Commission  (KVIC)  as  nodal  agency  at  the  national  level  for  generating employment opportunities in the country, including Supaul district in Bihar, by setting up of microenterprises 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 up to 31.01.2022, about 7.48 lakh new micro units have been assisted utilizing Margin Money subsidy of Rs. 18121 cr. generating estimated employment opportunities for about 61 lakh persons. Around 80% of the PMEGP units have been set up in rural areas.

Further,  from  the  FY  2018-19,  Ministry  of  MSME  has  also  introduced  a  component  of second financial assistance for expansion/upgrading existing  PMEGP/MUDRA  units  with assistance up to Rs. 1cr. for manufacturing unit and up to Rs. 25 lakhs for service/ trading unit with 15% subsidy (20% for NER and hilly state).

The  performance  of  PMEGP  in  the  Supaul  district  of  Bihar  during  2021-22  (as  on 25.01.2022) is given below:

| (Project and Employment: In numbers and Margin Money: Rs In Lakhs)   | (Project and Employment: In numbers and Margin Money: Rs In Lakhs)   | (Project and Employment: In numbers and Margin Money: Rs In Lakhs)   | (Project and Employment: In numbers and Margin Money: Rs In Lakhs)   | (Project and Employment: In numbers and Margin Money: Rs In Lakhs)   |
|----------------------------------------------------------------------|----------------------------------------------------------------------|----------------------------------------------------------------------|----------------------------------------------------------------------|----------------------------------------------------------------------|
| Sr. No                                                               | Name of District                                                     | Project                                                              | Margin Money                                                         | Employment                                                           |
| 1                                                                    | Supaul                                                               | 25                                                                   | 59.35                                                                | 300                                                                  |

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