Lok Sabha Question No. 880 (UNSTARRED), answered on 2025-07-24
Subject: Promotion of Traditional Industries
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Virendra Singh

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

## LOK SABHA UNSTARRED QUESTION No. 880 TO BE ANSWERED ON 24.07.2025

## PROMOTION OF TRADITIONAL INDUSTRIES

## 880. SHRI VIRENDRA SINGH:

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

- (a) the  details  of  schemes  that  have  been  implemented  so  far  to  promote  MSME  units  in  the aspirational district of Chandauli and the outcomes achieved thereunder;
- (b) the  number  of  persons  who  have  been  provided  financial  assistance  under  the  Prime Minister's Employment Generation Programme (PMEGP) in Chandauli district and the number of units that are operating successfully;
- (c) whether the traditional industries such as cottage industries, handlooms, handicrafts, etc., in Chandauli district have not been provided with adequate funds and training, if so, the details thereof and the corrective steps taken in this regard; and
- (d) whether  the  Government  has  established  a  district-level  hub  in  the  aspirational  district  of Chandauli, if not, the reasons therefor and the timeline proposed for the same?

## ANSWER

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

(a) and (b): Government  implements various Central Sector and demand  driven schemes/ programmes for MSMEs in the country including aspirational district of Chandauli. Details of the schemes/programmes  i.e.  Prime  Minister's  Employment  Generation  Programme  (PMEGP),  Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), Micro and Small Enterprises Cluster Development Programme (MSE-CDP), Khadi Vikas Yojana, Gramodyog Vikas Yojana are provided as under:

- (i) Prime  Minister's  Employment  Generation  Programme  (PMEGP): The  Scheme  assists entrepreneurs in setting up of new micro-enterprises in the non-farm sector. It aims to provide employment  opportunities  to traditional artisans/ rural  and  urban  unemployed  youth. Beneficiaries belonging to Aspirational Districts, including aspirational district of Chandauli, are included in the Special category of PMEGP and eligible for higher rate of subsidy and lower rate of own contribution. Beneficiaries under Special category are provided with higher subsidy of 25% and 35% of the project cost in urban and rural areas respectively as compared to  15%  and  25%  of  the  project  cost  for  General  Category  beneficiaries.  Contribution  of beneficiaries  under  Special  Category  is  05%  as  compared  to  10%  for  General  Category beneficiaries.

Number  of  units  assisted,  Margin  Money  subsidy  disbursed  and  estimated  employment generated in aspirational district of Chandauli under PMEGP for the period from FY 2022-23 to FY 2025-26 (upto 22.07.2025) is given below:

| Financial Year             |   No. of Units Assisted |   Margin Money Subsidy (Rs. Lakh) |
|----------------------------|-------------------------|-----------------------------------|
| 2022-23                    |                     162 |                            786.12 |
| 2023-24                    |                      90 |                            598.99 |
| 2024-25                    |                      50 |                            323.19 |
| 2025-26 (up to 22.07.2025) |                      24 |                            119.34 |

- (ii) Credit Guarantee Scheme for Micro and Small Enterprises: The Ministry of Micro, Small and Medium  Enterprises  and  Small  Industries  Development  Bank  of  India  (SIDBI)  jointly instituted  Credit  Guarantee Trust  Fund  for  Micro  and  Small  Enterprises  (CGTMSE)  in  the year  2000,  to  provide  credit  guarantees  for  loans  upto  Rs.  10  crore,  extended  by  Member Lending  Institutions  (MLIs)  to  Micro  and  Small  Enterprises  (MSEs),  without  requiring collateral security or third-party guarantees.

Special provisions under the Scheme for MSEs situated in Aspirational Districts, including Chandauli district are given as follows:

- i. The extent of guarantee coverage is 85% viz-a-viz 75% for general.
- ii. Concession in guarantee fee by 10% to MSEs situated in Aspirational Districts

The detail of guarantees approved under CGS in the Chandauli District is given below:

| No. of Guarantees Approved (upto 30.06.2025)   |   AmountApproved (in Rs. Crore) |
|------------------------------------------------|---------------------------------|
| 16,464                                         |                             713 |

- (iii) Micro and Small Enterprises Cluster Development Programme (MSE-CDP): MSE-CDP is a central sector scheme  for  development  of  clusters. It enhances  the  productivity  and competitiveness of micro and small enterprises (MSEs) by extending financial assistance as Government of India (GoI) grant for establishment of Common Facility Centers (CFCs) in the existing clusters. There is one approved project in Chandauli district of Uttar Pradesh under MSE-CDP which is ongoing. The details of the same are given below:

## Common Facility Centre (CFC):

| Name of the Cluster                 | Date of approval   |   Project Cost (Rs. in lakh) |   GoI grant Approved (Rs. in lakh) |
|-------------------------------------|--------------------|------------------------------|------------------------------------|
| CFC in Rice Mill Cluster, Chandauli | 07.12.2021         |                         1500 |                               1200 |

- iv)  Khadi Vikas Yojana (KVY) : KVY is a sub-scheme of Khadi Gramodyog Vikas Yojana for the promotion and development of Khadi. Under KVY, 08 Khadi Institutions are registered and implementing Khadi activities and providing employment to the Khadi artisans in Chandauli district.

- v) Gramodyog  Vikas  Yojana  (GVY) : GVY  is  a  scheme  for  promotion  and  development  of village  industries  through  common  facilities,  technological  modernization,  training  etc.  & other support and services for promotion of village Industries. GVY  has various components/verticals  from  the  activities  under  Village  Industries:  Agro  Based  &  Food Processing Industry (ABFPI), Mineral Based Industry (MBI), Wellness & Cosmetics Industry (WCI),  Handmade  Paper,  Leather  &  Plastic  Industry  (HPLPI),  Rural  Engineering  &  New Technology Industry (RENTI), and Service Industry. 70 beneficiaries have benefitted under GVY during the last three years in the Chandauli district.

(c): In  Chandauli  district,  traditional  industries  such  as  handlooms  and  handicrafts  have  been provided with financial assistance in the form of Margin Money (MM) subsidy under PMEGP. +

In  Chandauli  district,  21  number  of  handloom  industries  and  17  number  of  handicraft industries have been assisted with MM subsidy disbursement of Rs. 104.47 lakh and Rs. 138.75 lakh respectively since FY 2022-23 to FY 2025-26 (upto 22.07.2025).

Under  PMEGP,  Entrepreneurship  Development  Programme  (EDP)  training  is  provided  to potential beneficiaries with the objective to provide orientation and awareness pertaining to various managerial and operational functions such as finance, production, marketing, enterprise management, banking formalities, book-keeping, statutory compliances etc. to run their business effectively.

In Chandauli district, 449 number of EDP have undergone since FY 2022-23 to FY 2025-26 (upto 22.07.2025).

(d): Under the Districts as Export Hubs (DEH) initiative of Directorate General of Foreign Trade (DGFT),  Government  has  taken  measures  to  promote  exports  from  districts  nationwide.  Export potential  products  and  services  have  been  identified  in  734  districts,  covering  key  sectors  such  as agriculture, toys, and Geographical Indications (GI) products. In the DEH established in Chandauli district, the products identified are Plastic products, Zari Zardozi, and Fruits.

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