Lok Sabha Question No. 646 (UNSTARRED), answered on 2024-07-25
Subject: Prime Minister’s Employment Generation Programme (PMEGP)
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Rajeev Rai

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

## LOK SABHA UNSTARRED QUESTION NO. 646 TO BE ANSWERED ON 25.07.2024

## PRIME MINISTER'S EMPLOYMENT GENERATION PROGRAMME (PMEGP)

646. SHRI RAJEEV RAI:

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

- (a) the  objectives  and  salient  features  of  Prime  Minister's  Employment  Generation  Programme (PMEGP);
- (b) the details of budget outlays for the programme to the State of Uttar Pradesh during the last three years, year-wise;
- (c) the number of beneficiaries who have set up their units with assistance from this programme in Mau and Ballia districts (with break-up of rural and urban areas);
- (d) the details of the employment generated by this programme in Mau and Ballia districts;
- (e) whether the Government proposes augmenting implementation of this programme in the said districts; and
- (f) if so, the details thereof and if not, the reasons therefor?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE)

- (a): Ministry of MSME,  through Khadi and Village Industries Commission (KVIC), is implementing Prime Minister's Employment Generation Programme (PMEGP)  for assisting entrepreneurs  across  the  country  in  setting  up  of  new  units  in  the  non-farm  sector.  Any  individual above 18 years of age is eligible to apply. It aims to provide employment opportunities to traditional artisans/rural and urban unemployed youth at their doorstep.

Under PMEGP, General Category beneficiaries can avail of Margin Money (MM) subsidy of 25% of the project cost in rural areas and 15% in urban areas. For beneficiaries belonging to Special Categories such as Scheduled Castes, Scheduled Tribes, OBCs, Minorities , Women, Ex-servicemen, Differently-  Abled,  Transgenders,  beneficiaries  belonging  to  Northeastern  Region,  Hill  and  Border areas, and Aspirational Districts, the Margin Money subsidy is 35% in rural areas and 25% in urban areas. Besides, beneficiaries from General Categories contribute  10%  of project cost while beneficiaries from Special Categories contribute 5% of project cost. The maximum cost of project is Rs. 50 lakhs in the manufacturing sector and Rs. 20 lakhs in the service sector.

Since 2018-19, 2 nd financial assistance of uptoRs. 1 cr. for upgradation and expansion of wellperforming existing PMEGP/REGP/MUDRA units have been introduced with subsidy of 15% (20% for NER and hilly areas).

- (b): Details of expenditure incurred in the form of Margin Money disbursement under PMEGP in Uttar Pradesh during the last 3 years is as below:
- (c): The number of beneficiaries who have set up their units with assistance from PMEGP in Mau and Ballia districts (with breakup of rural and urban areas):

| Financial Year   |   Expenditure incurred (MM Subsidy disbursed in Crore) |
|------------------|--------------------------------------------------------|
| 2021-22          |                                                  411.6 |
| 2022-23          |                                                  378.7 |
| 2023-24          |                                                  435.3 |

PMEGP Performance in Mau District during the last 3 Financial years:

| Financial Year   | Rural                 | Rural                 | Urban                 | Urban                 | Total                 | Total                  |
|------------------|-----------------------|-----------------------|-----------------------|-----------------------|-----------------------|------------------------|
| Financial Year   | No. of Units Assisted | MMSubsidy (Rs. Lakhs) | No. of Units Assisted | MMSubsidy (Rs. Lakhs) | No. of Units Assisted | MM Subsidy (Rs. Lakhs) |
| 2021-22          | 84                    | 322.60                | 5                     | 11.85                 | 89                    | 334.46                 |
| 2022-23          | 96                    | 403.94                | 20                    | 58.15                 | 116                   | 462.09                 |
| 2023-24          | 88                    | 391.13                | 23                    | 64.52                 | 111                   | 455.66                 |

PMEGP Performance in Ballia District during the last 3 Financial years:

| Financial Year   | Rural                 | Rural                  | Urban                 | Urban                 | Total                 | Total                  |
|------------------|-----------------------|------------------------|-----------------------|-----------------------|-----------------------|------------------------|
| Financial Year   | No. of Units Assisted | MM Subsidy (Rs. Lakhs) | No. of Units Assisted | MMSubsidy (Rs. Lakhs) | No. of Units Assisted | MM Subsidy (Rs. Lakhs) |
| 2021-22          | 190                   | 664.18                 | 19                    | 44.07                 | 209                   | 708.26                 |
| 2022-23          | 142                   | 561.92                 | 18                    | 45.25                 | 160                   | 607.17                 |
| 2023-24          | 111                   | 401.02                 | 11                    | 32.31                 | 122                   | 433.33                 |

- (d): The details of the employment generated by PMEGP in Mau and Ballia districts:

Estimated employment generated under PMEGP in Mau District in the last 3 Financial years:

| Financial Year   |   No. of Units Assisted |   Estimated Employment Generated |
|------------------|-------------------------|----------------------------------|
| 2021-22          |                      89 |                              712 |
| 2022-23          |                     116 |                              928 |
| 2023-24          |                     111 |                              888 |

Estimated employment generated under PMEGP in Ballia District in the last 3 Financial years:

| Financial Year   |   No. of Units Assisted | Estimated Employment Generated   |
|------------------|-------------------------|----------------------------------|
| 2021-22          |                     209 | 1,672                            |
| 2022-23          |                     160 | 1,280                            |
| 2023-24          |                     122 | 976                              |

(e) & (f): PMEGP being a Central Sector  Scheme  assists  prospective  entrepreneurs  throughout the country including Mau and Ballia districts in setting up of new micro enterprises for generating employment opportunities by providing Margin Money (MM) subsidy.

Ministry  of  MSME has  also  introduced  financial  assistance  on  the  Second  loan  of  upto  Rs. 1.00  Crore  for  expansion/upgradation  of  the  existing  PMEGP/REGP/MUDRA  units  from  the  year 2018-19 with Margin Money subsidy of 15% (20% for NER and hilly areas). Coordination with the State  Governments  for  creating  awareness  amongst  the  successful  first  loan  beneficiaries  is  being undertaken for increase in uptake of second loans.

The  following  additional  steps  are  being  taken  by  the  Government  all  over  the  country including the said districts to include more beneficiaries and creation of employment:

- i. Maximum project cost admissible has been enhanced from Rs. 25 Lakhs to Rs. 50 Lakhs for Manufacturing sector and from Rs. 10 Lakhs to Rs. 20 Lakhs for Service sector.
- ii. Applicants  from  Aspirational  districts  and  Transgenders  have  been  included  in  Special Category.
- iii. Industries related to Animal  Husbandry  like  dairy,  poultry,  aquaculture,  insects  (bees, sericulture, etc.) have been allowed under the scheme.
- iv. COVID  years  i.e.,  FY2020-21  and  FY2021-22  have  been  exempted  while  considering profitability of existing PMEGP/ REGP/ MUDRA units applying for 2 nd Loan under PMEGP.
- v. No mandatory EDP for project cost up to Rs. 2 lakh and shorter period of training (up to 5 days) for projects up to Rs. 5 lakh.
- vi. Awareness  camps,  workshops  and  exhibitions  at  all  levels  are  being  organized  for  creating awareness about the scheme among the prospective entrepreneurs.
- vii. Publicity of PMEGP scheme through print and electronic media.
- viii. A  two-day  free  online  Entrepreneurship  Development  Programme  (EDP)  for  prospective entrepreneurs.
- ix. Webinars  are  organized  on  various  activities  for  setting  up  of  micro-enterprises  on  every Sunday to create awareness among the youth and prospective entrepreneurs.
- x. Radio jingles in regional languages have been made to create awareness of the scheme.

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