Lok Sabha Question No. 2861 (UNSTARRED), answered on 2024-08-08
Subject: Expansion of Micro, Small and Medium Enterprises (MSMEs)
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Nalin Soren, Shri Ajay Bhatt

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

## LOK SABHA UNSTARRED QUESTION No. 2861

TO BE ANSWERED ON 08.08.2024

## EXPANSION OF MICRO, SMALL AND MEDIUM ENTERPRISES (MSMES)

2861. SHRI NALIN SOREN: SHRI AJAY BHATT:

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

- (a) whether  the  Government  has  formulated  any  action  plan  for  expansion  of  Micro,  Small  and Medium Enterprises and to increase employment opportunities in rural areas of the country including hilly areas;
- (b) if so, the details of the action plan for Jharkhand and Uttarakhand; and
- (c) the blue print and the nature of the action plan and the funds allocated by the Government for the said purpose?

## ANSWER

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

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

PMEGP  being  a  Central  Sector  Scheme  assists  General  Category  beneficiaries  with  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, Physically Handicapped, 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.

Also, own contribution  of beneficiaries under Special Category including  women is 05% and 10%  for General Category beneficiaries.

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

The details regarding employment opportunities created under PMEGP & funds allocated and utilized under PMEGP during the last three years, is given at annexure .

Steps taken by Government to encourage MSME units and employment opportunities in MSME sector across the country including rural areas:

## 1. Prime Minister's Employment Generation Programme (PMEGP):

- i. Maximum project cost admissible has been enhanced from Rs. 25 lakh to Rs. 50 lakh for manufacturing sector and from Rs. 10 lakh to Rs. 20 lakh for service sector.
- ii. Relaxations with respect to Animal Husbandry have been provided to include dairy, poultry, aquaculture, sericulture.
- iii. COVID  years  i.e.,  FY2020-21  and  FY2021-22  have  been  exempted  while  considering profitability  of  existing  PMEGP/  Rural  Employment  Generation  Programme  /  MUDRA units applying for 2 nd Loan under PMEGP.
- iv. 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.
- v. Awareness camps, workshops and exhibitions at all levels are being organized for creating awareness about the scheme among the prospective entrepreneurs.
- vi. Publicity of PMEGP scheme through print and electronic media.
2. No global tenders for procurement up to Rs. 200 crores.
3. Credit Guarantee Scheme for MSEs: Under CGSMSE, through Credit Guarantee Fund Trust for Micro  and  Small  Enterprises  (CGTMSE),  collateral  free  loans  are  provided  to  MSEs  up  to  a limit  of  Rs.  500  lakh  (since  01.04.2023)  with  a  guarantee  coverage  up  to  85%  for  various categories of loans.
4. Launch of Udyam portal, Udyam Assist Platform, for bringing Informal Micro Enterprises in the formal  ambit  which  helped  the  registered  Informal  Micro  Enterprises  to  avail  the  benefits  of Priority Sector Lending.
5. Inclusion  of  Retail  and  Wholesale  traders  as  MSMEs  with  effect  from  02.07.2021  for  credit purpose.
6. Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs.
7. Launch of 'PM Vishwakarma' Scheme on 17.09.2023 to provide benefits such as credit support, skill  training,  marketing  support,  etc.  to  artisans  and  crafts  people  engaged  in  18  traditional trades. The Scheme will onboard the beneficiaries on Udyam Assist Platform as 'entrepreneurs' in the formal MSME ecosystem.
8. Launch  of  SAMADHAAN  Portal  for  filing  of  grievances  and  monitoring  of  outstanding dues  to  the MSEs from the buyers of goods and services.
9. Launch of an online Portal 'Champions' in June, 2020 to cover many aspects of e-governance including redressing grievances and handholding of MSMEs.

Annexure

Annexure: Referred to in Reply to part (a) to (c) of Lok Sabha Unstarred Question no. 2861 for answer on 08.08.2024.

Performance of PMEGP in rural areas during the last 3 years in terms of no of units assisted, margin money subsidy disbursed and estimated employment generated is given below:

|                | All India             | All India           | All India                      | All India Rural       | All India Rural     | All India Rural                |
|----------------|-----------------------|---------------------|--------------------------------|-----------------------|---------------------|--------------------------------|
| Financial Year | No. of Units Assisted | MM Subsidy (Rs. Cr) | Estimated Employment Generated | No. of Units Assisted | MM Subsidy (Rs. Cr) | Estimated Employment Generated |
| 2021-22        | 1,03,219              | 2,977.66            | 8,25,752                       | 84,696                | 2,585.86            | 677,568                        |
| 2022-23        | 85,167                | 2,722.17            | 6,81,336                       | 68,470                | 2,323.48            | 547,760                        |
| 2023-24        | 89,118                | 3,093.88            | 7,12,944                       | 68,939                | 2,546.19            | 551,512                        |

PMEGP performance in rural areas of Jharkhand during the last 3 years in terms of no. of units assisted,  margin  money  (MM) subsidy disbursed and estimated employment generated is given below:

|         | Jharkhand             | Jharkhand           | Jharkhand                      | Jharkhand Rural       | Jharkhand Rural     | Jharkhand Rural                |
|---------|-----------------------|---------------------|--------------------------------|-----------------------|---------------------|--------------------------------|
| Year    | No. of Units Assisted | MM Subsidy (Rs. Cr) | Estimated Employment Generated | No. of Units Assisted | MM Subsidy (Rs. Cr) | Estimated Employment Generated |
| FY21-22 | 1,714                 | 41.87               | 13,712                         | 1,203                 | 32.23               | 9,624                          |
| FY22-23 | 1,851                 | 48.37               | 14,808                         | 1,370                 | 38.62               | 10,960                         |
| FY23-24 | 2,101                 | 51.23               | 16,808                         | 1,425                 | 39.38               | 11,400                         |

PMEGP performance in rural areas of Uttarakhand during the last 3 years in terms of no. of units  assisted,  margin  money  (MM)  subsidy  disbursed  and  estimated  employment  generated  is given below:

|          | Uttarakhand           | Uttarakhand         | Uttarakhand                    | Uttarakhand Rural     | Uttarakhand Rural   | Uttarakhand Rural              |
|----------|-----------------------|---------------------|--------------------------------|-----------------------|---------------------|--------------------------------|
| Year     | No. of Units Assisted | MM Subsidy (Rs. Cr) | Estimated Employment Generated | No. of Units Assisted | MM Subsidy (Rs. Cr) | Estimated Employment Generated |
| FY 21-22 | 1,836                 | 39.82               | 14,688                         | 1,514                 | 34.40               | 12,112                         |
| FY 22-23 | 1,803                 | 46.31               | 14,424                         | 1,387                 | 37.60               | 11,096                         |
| FY 23-24 | 1,354                 | 41.91               | 10,832                         | 991                   | 33.20               | 7,928                          |

State-wise Margin Money (MM) subsidy target and achievement under PMEGP during the last 3 years is given below:

| Sr. No.   |                   | 2021-22                            | 2021-22                             | 2022-23                            | 2022-23                             | 2023-24                            | 2023-24                             |
|-----------|-------------------|------------------------------------|-------------------------------------|------------------------------------|-------------------------------------|------------------------------------|-------------------------------------|
| State     | / UT              | Target MM to be Utilized (in Lakh) | Achievement - MM Utilized (in Lakh) | Target MM to be Utilized (in Lakh) | Achievement - MM Utilized (in Lakh) | Target MM to be Utilized (in Lakh) | Achievement - MM Utilized (in Lakh) |
| 1         | Andaman Nicobar   | 324.49                             | 238.69                              | 281.65                             | 202.92                              | 231.00                             | 134.35                              |
| 2         | Andhra Pradesh    | 9,099.19                           | 10,088.80                           | 8,105.97                           | 12,929.93                           | 10,102.96                          | 17199.84                            |
| 3         | Arunachal Pradesh | 671.48                             | 788.88                              | 572.37                             | 701.26                              | 656.80                             | 1764.81                             |
| 4         | Assam             | 14,794.18                          | 6,659.71                            | 9,585.49                           | 5,954.20                            | 11,162.22                          | 6406.26                             |
| 5         | Bihar             | 10,426.73                          | 8,169.92                            | 9,203.09                           | 12,123.20                           | 11,085.31                          | 19175.74                            |
| 6         | Chandigarh- UT    | 98.89                              | 62.08                               | 102.35                             | 44.53                               | 72.00                              | 22.19                               |
| 7         | Chhattisgarh      | 9,311.88                           | 6,941.44                            | 8,217.28                           | 7,492.77                            | 7,585.24                           | 7625.32                             |
| 8         | Delhi             | 324.49                             | 315.23                              | 281.65                             | 471.11                              | 345.01                             | 334.32                              |
| 9         | Goa               | 324.49                             | 298.22                              | 284.64                             | 291.08                              | 275.41                             | 322.7                               |
| 10        | Gujarat*          | 26,174.71                          | 28,704.84                           | 22,481.52                          | 24,182.62                           | 23,362.62                          | 32124.58                            |
| 11        | Haryana           | 7,417.41                           | 6,093.33                            | 6,684.98                           | 6,319.98                            | 6,283.11                           | 7325.23                             |
| 12        | Himachal Pradesh  | 4,520.00                           | 3,550.95                            | 4,236.01                           | 3,149.58                            | 3,340.04                           | 3647.92                             |
| 13        | Jammu Kashmir     | 10,569.73                          | 46,713.54                           | 9,464.18                           | 23,993.89                           | 11,598.63                          | 28249.88                            |
| 15        | Jharkhand         | 6,268.01                           | 4,188.27                            | 5,648.03                           | 4,837.65                            | 5,110.88                           | 5123.28                             |
| 15        | Karnataka         | 14,152.31                          | 15,843.36                           | 12,377.84                          | 16,154.42                           | 15,717.09                          | 15862.49                            |
| 16        | Kerala            | 6,860.54                           | 6,859.29                            | 6,244.20                           | 7,329.23                            | 7,226.71                           | 7881.81                             |
| 17        | Ladakh-UT         | 1,081.87                           | 1,182.31                            | 1,337.28                           | 376.09                              | 754.46                             | 584.66                              |
| 18        | Lakshadweep       | 51.19                              | 17.50                               | 54.53                              | 2.49                                | 41.00                              | 0                                   |
| 19        | Madhya Pradesh    | 21,582.71                          | 20,961.46                           | 18,569.14                          | 18,129.70                           | 18,429.00                          | 18521.49                            |
| 20        | Maharashtra**     | 13,806.63                          | 13,018.54                           | 12,114.86                          | 13,203.32                           | 11,711.97                          | 12204.7                             |
| 21        | Manipur           | 6,885.24                           | 3,337.25                            | 4,529.21                           | 1,462.51                            | 4,589.19                           | 810.73                              |
| 22        | Meghalaya         | 3,903.67                           | 974.17                              | 2,530.68                           | 665.74                              | 2,093.00                           | 725.03                              |
| 23        | Mizoram           | 2,965.57                           | 1,461.76                            | 1,933.14                           | 1,353.86                            | 2,213.53                           | 1755.33                             |
| 24        | Nagaland          | 4,425.65                           | 2,494.89                            | 2,906.60                           | 1,535.13                            | 3,036.59                           | 2917.65                             |
| 25        | Odisha            | 10,239.53                          | 11,335.95                           | 9,113.79                           | 10,731.75                           | 9,067.16                           | 9354.84                             |
| 26        | Puducherry        | 177.90                             | 144.30                              | 192.01                             | 65.56                               | 127.00                             | 97.44                               |
| 27        | Punjab            | 7,294.71                           | 6,017.86                            | 6,562.46                           | 7,250.62                            | 6,194.55                           | 9087.81                             |
| 28        | Rajasthan         | 10,874.64                          | 9,025.60                            | 9,659.16                           | 11,418.57                           | 11,481.26                          | 12406.43                            |
| 29        | Sikkim            | 239.02                             | 214.27                              | 164.96                             | 131.46                              | 240.00                             | 449.19                              |
| 30        | Tamil Nadu        | 16,785.63                          | 16,445.76                           | 15,145.08                          | 17,891.66                           | 17,625.08                          | 19871.81                            |
| 31        | Telangana         | 8,845.96                           | 9,846.14                            | 7,866.14                           | 10,225.11                           | 9,851.76                           | 10811.78                            |
| 32        | Tripura           | 3,477.42                           | 2,083.70                            | 2,277.56                           | 1,689.01                            | 2,668.73                           | 1444.21                             |
| 33        | Uttar Pradesh     | 34,657.47                          | 41,165.07                           | 30,038.33                          | 37,865.82                           | 38,222.29                          | 43528.99                            |
| 34        | Uttarakhand       | 5,348.30                           | 3,983.20                            | 4,936.80                           | 4,631.73                            | 4,291.67                           | 4191.69                             |
| 35 West   | Bengal Total      | 11,018.36 285,000.0                | 8,539.63                            | 9,698.02 243,401.0                 | 7,408.96                            | 8,207.74                           | 7423.17                             |
| Grand     |                   |                                    | 297,765.91                          |                                    | 272,217.46                          | 265,001.01                         | 309,387.67                          |