Lok Sabha Question No. 612 (UNSTARRED), answered on 2024-07-25
Subject: Employment Generation for Tribals under MSME Sector
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Dr. Kirsan Namdeo

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 612 TO BE ANSWERED ON 25.07.2024

## EMPLOYMENT GENERATION FOR TRIBALS UNDER MSME SECTOR

612. DR. KIRSAN NAMDEO:

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

- (a) whether  the  Government  has  any  proposal  to  create  job  opportunities  for  the  tribals  under MSME Sector and if so, the details thereof;
- (b) whether the tribals would be provided jobs within their villages and nearby areas or elsewhere and if so, the details thereof; and
- (c) the  details  of  the  broad  micro  and  small  scale  industries  to  be  set  up  in  the  tribal  dominated villages in Maharashtra?

## ANSWER

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

(a) to (c): Government is implementing several schemes/programmes for the benefits of unemployed youths in the country including tribal communities which inter alia includes:

- i. Prime Minister's Employment Generation Programme (PMEGP): Ministry  of  MSME,  through  Khadi  and  Village  Industries  Commission  (KVIC),  is  implementing 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.

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,  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.

The number of micro-enterprises assisted, belonging to Scheduled Tribes beneficiaries, Margin Money subsidy disbursed to them and employment opportunities generated by these units during the last five years are given below:

| Financial Year   | All India (Scheduled Tribes)   | All India (Scheduled Tribes)   | All India (Scheduled Tribes)   | Rural Areas (Scheduled Tribes)   | Rural Areas (Scheduled Tribes)   | Rural Areas (Scheduled Tribes)   |
|------------------|--------------------------------|--------------------------------|--------------------------------|----------------------------------|----------------------------------|----------------------------------|
| Financial Year   | Units Assisted                 | Estimated Employment Generated | MM Subsidy (Rs. Cr)            | Units Assisted                   | Estimated Employment generated   | MM Subsidy (Rs. Cr)              |
| 2019-20          | 6,020                          | 48,160                         | 122.30                         | 5,402                            | 43,216                           | 112.64                           |
| 2020-21          | 5,497                          | 43,976                         | 127.09                         | 4,994                            | 39,952                           | 117.37                           |
| 2021-22          | 7,225                          | 57,800                         | 163.94                         | 6,497                            | 51,976                           | 150.43                           |
| 2022-23          | 4,850                          | 38,800                         | 133.48                         | 4,300                            | 34,400                           | 120.22                           |
| 2023-24          | 4,681                          | 37,448                         | 169.09                         | 4,018                            | 32,144                           | 149.85                           |

The performance of PMEGP in Maharashtra in terms of micro units owned by Scheduled Tribes during the last 5 years is as below:

| Financial Year   | Maharashtra    | Maharashtra                    | Maharashtra         | Rural Areas in Maharashtra   | Rural Areas in Maharashtra     | Rural Areas in Maharashtra   |
|------------------|----------------|--------------------------------|---------------------|------------------------------|--------------------------------|------------------------------|
| Financial Year   | Units Assisted | Estimated Employment Generated | MM Subsidy (Rs. Cr) | Units Assisted               | Estimated Employment Generated | MM Subsidy (Rs. Cr)          |
| 2019-20          | 112            | 896                            | 1.39                | 103                          | 824                            | 1.29                         |
| 2020-21          | 92             | 736                            | 1.66                | 82                           | 656                            | 1.52                         |
| 2021-22          | 113            | 904                            | 3.35                | 98                           | 784                            | 2.99                         |
| 2022-23          | 91             | 728                            | 2.06                | 82                           | 656                            | 1.91                         |
| 2023-24          | 79             | 632                            | 2.54                | 70                           | 560                            | 2.26                         |

- ii. Udyam  and  Udyam  Assist  Platform ( UAP)  Portal: Government  had  launched  'Udyam Registration' for MSMEs, for Ease of Doing Business w.e.f.  01.07.2020 and Udyam Assist Platform on  11.01.2023  to  bring  Informal  Micro  Enterprises  under  the  formal  ambit  for  availing  the  benefits under Priority Sector Lending .

Total number of Scheduled Tribe Owned MSMEs Registered and Employment Reported under Udyam & UAP since inception till date for All India & Maharashtra State are given below:

| All India   | All India                 | All India   |
|-------------|---------------------------|-------------|
| Platform    | Total Registration (Nos.) | Employment  |
| UDYAM       | 7,60,851                  | 57,58,623   |
| UAP         | 7,82,567                  | 8,55,286    |
| Total:-     | 15,43,418                 | 66,13,909   |
| Maharashtra | Maharashtra               | Maharashtra |
| Platform    | Total Registration (Nos.) | Employment  |
| UDYAM       | 82,436                    | 3,78,392    |
| UAP         | 76,232                    | 78,958      |
| Total:-     | 1,58,668                  | 4,57,350    |

iii. Credit Guarantee Scheme: The Ministry of MSME, Government of India is also implementing Credit  Guarantee  Scheme  for  Micro  and  Small  Enterprises  through  Credit  Guarantee  Fund  Trust  for Micro and Small Enterprises (CGTMSE), for providing collateral free loan up to a limit of Rs. 500 lakh (w.e.f. 01.04.2023) to MSEs with a guarantee coverage up to 85% for various categories of loans.

Since its inception in 2000, 91.76 lakh guarantees were approved involving an amount Rs. 6.78 lakh  crore as on 30.06.2024. For the first time, Rs. 2.00 lakh crore of guarantee coverage crossed in current FY -2023-24.

Number  of  Guarantees  approved  and  amount  involved  under  CGTMSE  for  beneficiaries  under Scheduled Tribes category from 2019-20 to 2023-24 are given below:

| Financial Year   | All India                     | All India       | Maharastra                    | Maharastra      |
|------------------|-------------------------------|-----------------|-------------------------------|-----------------|
|                  | Number of Guarantees approved | Amount (Rs. Cr) | Number of Guarantees approved | Amount (Rs. Cr) |
| 2019-20          | 5681                          | 246.60          | 198                           | 11.92           |
| 2020-21          | 11960                         | 313.88          | 298                           | 7.08            |
| 2021-22          | 13396                         | 427.65          | 232                           | 9.69            |
| 2022-23          | 21849                         | 919.62          | 513                           | 26.69           |
| 2023-24          | 27926                         | 1518.60         | 1363                          | 64.46           |

## iv. Scheme of fund for Regeneration of Traditional Industries (SFURTI):

The  SFURTI  Scheme  was  launched  in  2005-06  for  making  Traditional  Industries  more productive and competitive by organizing the Traditional Industries and artisans into clusters to provide support for their long-term sustainability and economies of scale. The scheme was revamped in 201415. The Objective of the scheme is to organize traditional artisans into collectives for  manufacturing value added products, on scale, with a vision of sustainable increase in artisan income.

## Financial Assistance:

- Rs. 2.5 cr. for Regular clusters up to 500 artisans
- Rs. 5.0 cr. for Major clusters with more than 500 artisans

## Details of Clusters under ST category under SFURTI

Out of a total of 513 clusters approved under SFURTI since 2015-16, 50 clusters belong to ST category with a total Government of India assistance of Rs. 121.41 crore, directly benefitting 24,126 traditional artisans. Out of these 50 clusters under ST category, 34 clusters are currently functional and are providing sustainable employment to 15,585 artisans.

Wardha  Bamboo  Cluster  under  ST  category  was  approved  in  2020  in  Maharashtra  with  GoI assistance of Rs. 1.61 crore, benefitting 229 artisans.

## v. National Scheduled Caste Scheduled Tribe Hub (NSSH):

A central sector scheme of the Ministry of MSME, Government of India launched in 2016 by the  Hon'ble  Prime  Minister.  The  scheme  aims  at  capacity  enhancement  of  SC-ST  entrepreneurs  and promoting  "entrepreneurship  culture"  amongst  the  SC-ST  population.  NSSH  scheme  is  empowering SC-ST population to participate in the public procurement process and fulfil the mandated target of 4% procurement from SC-ST enterprises under Public Procurement Policy by the Ministries, Departments and CPSEs.

Since  inception,  a  total  of  28978  beneficiaries  belonging  to  ST  communities  have  availed benefits under various components of NSSH Scheme and out of these 2579 beneficiaries are from the State of Maharashtra.

## vi. Coir Vikas Yojana (CVY)

CVY is an umbrella scheme with its six sub-scheme components, formulated with the objective of overall and sustainable development of coir industry in India.  The interventions under CVY Scheme envisage  a  wide  range  of  activities  such  as  Research  &  Development,  skill  development  of  artisans, women empowerment through modernization, upgradation and establishing new units, promoting the domestic as well as export market, providing of trade and industry related functional support services, and welfare of coir workers. The details of ST beneficiaries are as under:-

| No: of candidates trained   | No: of candidates trained   | No: of candidates trained   | No: of candidates trained   | No: of candidates trained   | No: of candidates trained   |
|-----------------------------|-----------------------------|-----------------------------|-----------------------------|-----------------------------|-----------------------------|
| FY 2021-22                  | No of ST Beneficiaries      | FY 2022-23                  | No of ST Beneficiaries      | FY 2023-24                  | No of ST Beneficiaries      |
| 4755                        | 726                         | 2794                        | 242                         | 4193                        | 548                         |