Lok Sabha Question No. 462 (UNSTARRED), answered on 2021-07-22
Subject: Opening of Agro Industry
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Hanuman Beniwal

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

## LOK SABHA UNSTARRED QUESTION NO. 462 TO BE ANSWERED ON 22.07.2021

## Opening of Agro Industry

## 462. SHRI HANUMAN BENIWAL:

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

(a) whether the Government proposes to open/start Agro Industry in the Atmanirbhar Bharat Abhiyaan keeping in mind the number of agriculture graduates passing out every year;

- (b) if so, the details thereof;

(c) whether  the  Government  intends  to  set  up  any  agro  industry  in  Rajasthan  as  the  large number of population is engaged in agriculture and spices and other agro products; and

(d) if so, the details thereof along with the time by which the said industry is likely to be set up in Rajasthan and if not, the reasons therefor?

## ANSWER

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

(a) & (b): Government  in  the  Ministry  of  MSME  is  implementing  since  2008-09,  Prime Minister's Employment Generation Programme (PMEGP) which is a major credit-linked subsidy programme aimed at generating self-employment opportunities through establishment of microenterprises  in  the  non-farm  sector  by  helping  traditional  artisans  and  rural/urban  unemployed youth. The Scheme is in line with the Atmanirbhar Bharat Abhiyaan as it encourages setting up of new  micro-enterprises  using  local  raw  material  and  rural  workforce.  The  maximum  cost  of projects  is  Rs.25  lakh  in  the  manufacturing  sector  and  Rs.10  lakh  in  the  service  sector  with subsidy varying from 15% to 35% for different categories.

Any  individual  can  apply  for  PMEGP  through  online  portal  www.kviconline.gov.in. Emphasis has also been given to reach out to students in various Universities including agriculture graduates, to generate awareness about the scheme and encourage them to apply under it.

The number of units assisted, disbursement of margin money and employment generated under PMEGP across the country during last three years and current year is as follows:

| Year                       |   No. of units set up** |   Margin Money disbursed (Rs. in crore) |   Estimated Employment (Nos.) |
|----------------------------|-------------------------|-----------------------------------------|-------------------------------|
| 2018-19                    |                   73427 |                                 2070    |                        587416 |
| 2019-20                    |                   66653 |                                 1950.82 |                        533224 |
| 2020-21                    |                   74415 |                                 2188.8  |                        595320 |
| 2021-22 (as on 09.07.2021) |                   16639 |                                  518.25 |                        133112 |
| Total                      |                  231134 |                                 6727.87 |                       1849072 |

(**Figure of Year-wise no. of units set up indicate the no. of units for which the MM has been disbursed to the banks in the respective FY)

About 25% of the units setup under PMEGP belongs to agro and forest based industries.

(c) & (d): Target and achievement for the last three years to set up micro-enterprises under PMEGP in Rajasthan is as follows:

| Sl .   | Year    | Target              | Target           | Target             | Achievement         | Achievement     | Achievement        |
|--------|---------|---------------------|------------------|--------------------|---------------------|-----------------|--------------------|
|        |         | No. of Units set up | MM (Rs. in lakh) | Employm ent (Nos.) | No. of units set up | MM(Rs. in lakh) | Employm ent (Nos.) |
| 1      | 2018-19 | 3097                | 7743.65          | 24776              | 2359                | 7199.28         | 18872              |
| 2      | 2019-20 | 3398                | 10194.20         | 27184              | 3025                | 8174.68         | 24200              |
| 3      | 2020-21 | 2697                | 8094.02          | 21576              | 2772                | 8806.83         | 22176              |

Based  on  the  dynamic  situation  arising  out  of  COVID-19  challenges  and  the  previous  years' performance,  the  approximate  target  for  setting  up  PMEGP  units  during  FY  2021-22  and achievement thereon in the state of Rajasthan is as follows:

| Target              | Target          | Target            | Achievement (as on 9.7.2021)   | Achievement (as on 9.7.2021)   | Achievement (as on 9.7.2021)   |
|---------------------|-----------------|-------------------|--------------------------------|--------------------------------|--------------------------------|
| No. of Units set up | MM(Rs. in lakh) | Employment (Nos.) | No. of units set up            | MM (Rs. in lakh)               | Employment (Nos.)              |
| 3500                | 10500.00        | 28000             | 305                            | 1216.50                        | 2440                           |

In  addition,  Ministry  is  also  implementing  Scheme  of  Fund  for  Regeneration  of Traditional Industries (SFURTI). The focus of the scheme is to organize traditional industries and artisans into clusters and provide them with sustainable employment by making their products more competitive through value addition. Under the scheme, artisans are collectively supported through construction of Common Facility Centres (CFCs), new plants and machineries, training, etc. in sectors such as Agro Based Industries, Honey, Khadi, Coir, Handicrafts, Textiles, Bamboo etc.

As on 19.07.2021, 433 clusters have been approved benefitting about 2.6 lakh artisan with GoI assistance of Rs.1102 crore.

In  Rajasthan,  27  clusters  have  been  approved  under  SFURTI  benefitting  about  15284 artisans with GoI assistance of 75.20 crore. Of these 10 clusters are in agro processing, bamboo and honey. These clusters are likely to be functional within a period of 12 to 18 months from date of approval.

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