Lok Sabha Question No. 1743 (UNSTARRED), answered on 2024-08-01
Subject: Implementation of PMEGP
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri P V Midhun Reddy

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 1743

TO BE ANSWERED ON 01.08.2024

## IMPLEMENTATION OF PMEGP

## 1743.        SHRI P V MIDHUN REDDY:

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

- (a) the  present  status  of  implementation  of  the  Prime  Minister's  Employment  Generation Programme (PMEGP);
- (b) the number of individuals in Andhra Pradesh who have applied and benefited under PMEGP during the last three years;
- (c) whether the Government has fixed targets for employment generation under PMEGP;
- (d) if so, the steps taken by the Government to achieve the targets under the PMEGP; and
- (e) whether the Government proposes to increase margin money subsidy and if not, the reasons therefor?

## ANSWER

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

- (a): Since  inception  of  the  Prime  Minister's  Employment  Generation  Programme  (PMEGP)  in 2008-09 till 12.07.2024, about 9.65 lakh micro enterprises have been assisted across the country with a Margin Money (MM) subsidy of Rs. 25,263.32 crore providing an estimated employment to 78.84 lakh  persons.  During  the  current  Financial  Year  2024-25  (till  12.07.2024),  about  7,444  micro enterprises have been assisted across the country with a Margin Money (MM) subsidy of Rs. 299.25 crore providing an estimated employment to 59,552 persons.
- (b): The number of individuals in Andhra Pradesh who have applied and benefited under PMEGP during the last three years is given below:

| Financial Year   | No of Applications received   | No. of Units Assisted   |
|------------------|-------------------------------|-------------------------|
| 2021-22          | 9,552                         | 2,477                   |
| 2022-23          | 18,525                        | 3,073                   |
| 2023-24          | 33,903                        | 5,577                   |

- (c): Every  year,  targets  under  PMEGP  are  fixed  based  on  past  years  performance  and  overall budget  allocation  for  the  scheme.  However,  the  targets  fixed  for  no.  of  units  to  be  assisted  are tentative. The target and achievements under the scheme during last three years is given below:
- (d): Steps taken by the Government to achieve targets for setting up of micro enterprises and to include  more  beneficiaries,  provide  financial  assistance  and  for  creation  of  employment  under PMEGP:
- 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 for availing higher Margin Money subsidy.
- 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.
- (e): No such proposal is under consideration of the Government, at present. However, in Financial Year 2022-23, Maximum project cost admissible for setting up new micro enterprises under PMEGP 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.

| Financial Year   | Target Number of Units   | Achievement No. of units assisted   |
|------------------|--------------------------|-------------------------------------|
| 2021-22          | 92,666                   | 103,219                             |
| 2022-23          | 83,210                   | 85,167                              |
| 2023-24          | 80,120                   | 89,118                              |

Furthermore, since 2018-19, existing PMEGP/REGP/MUDRA enterprises are also supported based  on  past  good  performances  with  2 nd loan  for  upgradation  and  expansion.  Under  2 nd Loan, maximum project cost admissible for Margin Money (MM) subsidy under Manufacturing sector is Rs. 1.00 crore and for Service sector is Rs. 25 Lakhs. Eligible subsidy on 2 nd loan for all categories is 15% of project cost (20% for NER & Hill States).

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