Lok Sabha Question No. 213 (STARRED), answered on 2016-05-09
Subject: Employment Generation Programme
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: KRUPAL BALAJI TUMANE, DUSHYANT SINGH

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

## LOK SABHA STARRED QUESTION NO.*213 TO BE ANSWERED ON 09.05.2016

## EMPLOYMENT GENERATION PROGRAMME

*213. SHRI KRUPAL BALAJI TUMANE: SHRI DUSHYANT SINGH:

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

(a) The  total funds  allocated,  sanctioned  and  utilised  under  the  Prime  Minister's Employment  Generation  Programme  (PMEGP)  for  setting  up  of  agricultural  and  rural industries in the country including Maharashtra during each of the last three years and current year, State/UT-wise;

(b) whether there is a gap between the number of jobs proposed to be created and actual creation of jobs under PMEGP during the said period and if so, the details thereof and the reasons  therefor  indicating  the  number  of  jobs  created  thereunder  during  said  period, State/UT-wise; and

(c) the  corrective  steps  taken/proposed  to  be  taken  by  the  Government  for  optimum utilisation  of  the  allocated  funds  and  to  enhance  employment  generation  under  the  said programme in the country?

## ANSWER

## MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI KALRAJ MISHRA)

(a)to(c): A statement is laid on the Table of the House.

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (c)  OF  THE  LOK SABHA STARRED QUESTION No.*213 FOR ANSWER ON 09.05.2016

- (a): The total amount of funds allocated, released and utilized under the Prime Minister's Employment Generation Programme (PMEGP) for setting up of micro enterprises in the nonfarm  sector  in  the  country  including  Maharashtra  during  each  of  the  last  three  years  and current year, State/UT-wise is given at Annexure-I.
- (b): The  number  of  jobs  proposed  to  be  created  and  actual  creation  of  jobs  under  the PMEGP during each of the last three years State/UT-wise is given at Annexure-II.

Margin money subsidy is allocated to the states based on the stipulated parameters and this State-wise allocation is treated as target under PMEGP Scheme. Physical targets in terms of number  of  projects  are  also  fixed  corresponding  to  the  Margin  Money  allocated  to  each State/UT. The target for employment generation is fixed based on the assumption that each project sanctioned would generate direct/indirect employment to 8 persons. The target under employment generation has not been fully achieved during the last three years, because the average project cost has been increasing over the years. In 2010-11, average project cost was Rs.6-8 lakh, in 2015-16 it is Rs. 10-12 lakh. Thus, utilization of Margin Money subsidy per project  has  increased  from  Rs.1.8  lakh  to  Rs.  2.8  lakh  per  project.    This  has  resulted  in decreased  number  of  projects  being  setup  under  PMEGP,  consequently  the  employment generation has also decreased.

- (c): The following steps have been taken for optimum utilization of the allocated funds and to enhance employment generation:
- i) With  a  view  to  streamline  the  process  of  application  flow  and  fund  flow  and  to bring in transparency and better financial management and prevent parking of funds at Nodal bank level, it has been decided to introduce online process flow of application and disbursement of Margin Money directly to financing bank branches by adopting Direct Benefit Transfer (DBT).  KVIC has developed an elaborate PMEGP on-line Portal for on line processing of applications
- ii)    In order to expand the scope of PMEGP, the negative list under PMEGP has   been modified to allow the following activities:
-  All rural and urban transport activities (A ceiling of 10% on the extent of projects to be financed for transport activities will be applicable in the States/UTs, except in specific regions - hilly region, NER, A & N Islands, Goa, Puducherry, Lakshadweep, Daman & Diu, Dadra Nagar Haveli, J & K and LWE affected districts).
-  Value added products for tea, coffee, rubber, sericulture, horticulture, & floriculture.
-  Processing  of  pashmina  wool  and  other  products  like  hand  spinning  and  hand weaving.

iii) In order to achieve inclusive growth, employment generation, PMEGP district-wise targets of a minimum of 100 projects per district was fixed during the year 2013-14 and 2014-15.    For  the  year  2015-16  and  2016-17  the  district-wise  target  of  minimum  75 projects per district was fixed.

******

## Annex I  referred to in reply to part (a) of the Lok Sabha Starred Question No. 213 for answer on 09.05.2016

## State-wise margin money subsidy allocated, released and utilized under PMEGP Scheme

(in Rs. lakhs)

| Sr.   |                   | 2013-14                    | 2013-14        | 2013-14        | 2014-15             | 2014-15        | 2014-15        | 2015-16                    | 2015-16        | 2015-16        | 2016-17                    |
|-------|-------------------|----------------------------|----------------|----------------|---------------------|----------------|----------------|----------------------------|----------------|----------------|----------------------------|
| No    | State             | Fund/M M allocated/ target | Funds Released | funds utilised | Fund/M M allocated/ | Funds Released | funds utilised | Fund/M M allocated/ target | Funds Released | funds utilised | Fund/M M allocated/ target |
| 1     | Jammu& Kashmir    | 2983.59                    | 2994.07        | 3226.20        | target 2919.50      | 3368.84        | 3274.63        | 4006.80                    | 4006.80        | 3781.19        | 3541.26                    |
| 2     | Himachal Pradesh  | 1730.87                    | 1742.71        | 1613.84        | 1687.45             | 2180.03        | 2237.73        | 1721.57                    | 1721.57        | 1767.26        | 1970.11                    |
| 3     | Punjab            | 2665.96                    | 2993.38        | 2477.06        | 2711.49             | 2921.83        | 3190.88        | 3026.80                    | 3026.80        | 2902.97        | 3504.09                    |
| 4     | Chandigarh        | 304.74                     | 202.70         | 59.11          | 287.99              | 0.00           | 61.46          | 90.00                      | 90.00          | 87.72          | 100.00                     |
| 5     | Uttarakhand       | 1934.23                    | 2246.04        | 2099.99        | 1882.35             | 2192.34        | 2153.32        | 1909.93                    | 1909.93        | 1740.86        | 2140.93                    |
| 6     | Haryana           | 2771.26                    | 1550.64        | 2075.51        | 2716.36             | 3027.15        | 3012.98        | 3747.40                    | 3747.40        | 3112.09        | 3371.31                    |
| 7     | Delhi             | 1075.38                    | 0.00           | 164.74         | 1061.04             | 0.00           | 189.24         | 257.35                     | 257.35         | 254.05         | 300.00                     |
| 8     | Rajasthan         | 5554.14                    | 3331.20        | 4064.94        | 5369.78             | 6502.50        | 5249.62        | 4188.14                    | 4188.14        | 4384.07        | 5500.99                    |
| 9     | Uttar             | 13786.28                   | 13988.57       | 15104.91       | 13339.41            | 16460.73       | 16937.53       | 17535.32                   | 17535.32       | 14456.87       | 12981.52                   |
| 10    | Pradesh Bihar     | 8675.93                    | 8136.60        | 7725.19        | 8277.14             | 2768.30        | 4111.32        | 7118.59                    | 7118.59        | 6588.55        | 6909.77                    |
| 11    | Sikkim            | 584.56                     | 0.00           | 108.09         | 541.34              | 0.00           | 33.52          | 227.38                     | 227.38         | 186.11         | 200.00                     |
| 12    | Arunachal         | 1852.57                    | 963.25         | 889.42         | 1793.42             | 963.25         | 1004.99        | 200.08                     | 200.08         | 38.85          | 500.00                     |
| 13    | Pradesh Nagaland  | 1705.43                    | 1882.67        | 1125.77        | 1563.64             | 470.67         | 878.59         | 1255.83                    | 1255.83        | 1392.81        | 1856.16                    |
| 14    | Manipur           | 1557.67                    | 1750.20        | 1591.34        | 1403.65             | 1750.20        | 1600.76        | 2855.92                    | 2855.92        | 1213.98        | 1536.56                    |
| 15    | Mizoram           | 1117.83                    | 1210.87        | 886.40         | 1043.39             | 302.72         | 807.98         | 924.99                     | 924.99         | 1026.35        | 1310.74                    |
| 16    | Tripura           | 1163.93                    | 1109.32        | 2225.25        | 985.02              | 1387.58        | 1333.65        | 2748.26                    | 2748.26        | 945.84         | 1359.29                    |
| 17    | Meghalaya         | 1333.04                    | 759.19         | 600.13         | 1184.79             | 380.00         | 971.14         | 1250.62                    | 1250.62        | 1056.12        | 1849.11                    |
| 18    | Assam             | 6210.97                    | 3619.41        | 7393.07        | 5388.75             | 4020.52        | 5397.01        | 4969.87                    | 4969.87        | 2869.74        | 5798.14                    |
| 19    | West Bengal       | 4627.57                    | 6017.77        | 5596.72        | 4396.32             | 5873.93        | 6010.11        | 4765.49                    | 4765.49        | 3400.65        | 3680.30                    |
| 20    | Jharkhand         | 4738.31                    | 4508.29        | 4533.11        | 4547.06             | 3270.10        | 2871.29        | 3462.64                    | 3462.64        | 3559.74        | 4165.73                    |
| 21    | Odisha            | 5854.95                    | 3629.32        | 4075.76        | 5621.47             | 4032.37        | 3945.89        | 6282.00                    | 6282.00        | 5736.32        | 5201.65                    |
| 22    | Chhattisgarh      | 3623.56                    | 2559.67        | 2118.61        | 3474.41             | 2152.09        | 2045.68        | 4303.8                     | 4303.8         | 2829.38        | 4493.30                    |
| 23    | Madhya            | 8466.23                    | 9038.13        | 7973.02        | 8182.74             | 10170.42       | 9241.70        | 7729.40                    | 7729.40        | 8117.17        | 8527.32                    |
| 24    | Pradesh Gujarat # | 4375.58                    | 2522.22        | 4401.81        | 4346.72             | 5024.60        | 6200.52        | 6536.16                    | 6536.16        | 6339.73        | 5398.45                    |
| 25    | Maharashtra       | 6539.82                    | 4327.19        | 4737.62        | 6299.38             | 7985.18        | 7843.81        | 9718.42                    | 9718.42        | 5285.03        | 6111.29                    |
| 26    | ## Andhra Pradesh | 4829.17                    | 3036.32        | 4610.54        | 2667.87             | 3522.14        | 3492.11        | 4496.85                    | 4496.85        | 2262.37        | 2336.59                    |
| 27    | Telangana         | 0.00                       | 0.00           | 0.00           | 1954.44             | 2550.51        | 1889.35        | 2094.00                    | 2094.00        | 2217.57        | 2004.86                    |
| 28    | Karnataka         | 4538.84                    | 5295.41        | 7837.31        | 4512.99             | 5295.72        | 6479.10        | 10846.89                   | 10846.89       | 5898.01        | 4941.62                    |
| 29    | Goa               | 490.68                     | 0.00           | 143.86         | 466.91              | 0.00           | 141.76         | 159.40                     | 159.40         | 165.43         | 371.62                     |
| 30    | Lakshadweep       | 758.55                     | 0.00           | 3.18           | 704.68              | 257.65         | 28.61          | 90.00                      | 90.00          | 0.00           | 50.00                      |
| 31    | Kerala            | 2278.34                    | 2710.19        | 2756.94        | 2306.51             | 2645.44        | 2679.28        | 2731.60                    | 2731.60        | 2720.48        | 2446.06                    |
| 32    | Tamil Nadu        | 4969.70                    | 5839.78        | 5216.93        | 4974.91             | 5839.78        | 6733.89        | 7110.80                    | 7110.80        | 5497.54        | 5291.23                    |
| 33    | Puducherry        | 781.12                     | 484.25         | 43.17          | 100.00              | 0.00           | 112.10         | 100.00                     | 100.00         | 106.37         | 150.00                     |
| 34    |                   |                            |                | 164.94         | 593.09              |                |                |                            |                |                |                            |
|       | A&NIsland         | 619.20                     | 387.02         |                |                     | 0.00           | 92.32          | 158.00                     | 158.00         | 65.11          | 100.00                     |

Annex II Annex II  referred to in reply to part (b) of the Lok Sabha Starred Question No. 213 for answer on 09.05.2016

| Sr. No.   | State/UT          | 2013-14     | 2013-14     | 2014-15     | 2014-15     | 2015-16     | 2015-16      |
|-----------|-------------------|-------------|-------------|-------------|-------------|-------------|--------------|
| Sr. No.   | State/UT          | Target      | Achievement | Target      | Achievement | Target      | Achieveme nt |
| Sr. No.   | State/UT          | Empl. (Nos) | Empl. (Nos) | Empl. (Nos) | Empl. (Nos) | Empl. (Nos) | Empl. (Nos)  |
| 1         | Jammu& Kashmir    | 20920       | 12301       | 20648       | 11025       | 16026       | 12115        |
| 2         | Himachal Pradesh  | 11848       | 5188        | 11664       | 6352        | 6888        | 5134         |
| 3         | Punjab            | 18816       | 7629        | 18692       | 6438        | 12104       | 7762         |
| 4         | Chandigarh        | 1664        | 385         | 1592        | 160         | 720         | 323          |
| 5         | Uttarakhand       | 19640       | 5866        | 19408       | 7024        | 14992       | 7232         |
| 6         | Haryana           | 7944        | 1136        | 7880        | 1584        | 1032        | 2048         |
| 7         | Delhi             | 35936       | 13471       | 35160       | 15002       | 16752       | 14537        |
| 8         | Rajasthan         | 13096       | 7335        | 12864       | 7889        | 7640        | 6161         |
| 9         | Uttar Pradesh     | 85096       | 44044       | 82784       | 48604       | 70144       | 43059        |
| 10        | Bihar             | 22112       | 6106        | 21488       | 5821        | 17215       | 9496         |
| 11        | Sikkim            | 54672       | 19442       | 53472       | 21896       | 30920       | 16497        |
| 12        | Arunachal Pradesh | 3984        | 255         | 3800        | 54          | 912         | 397          |
| 13        | Nagaland          | 13872       | 6570        | 13616       | 2871        | 800         | 104          |
| 14        | Manipur           | 11360       | 4373        | 10768       | 2407        | 5024        | 4998         |
| 15        | Mizoram           | 9984        | 5277        | 9328        | 829         | 11424       | 2715         |
| 16        | Tripura           | 7744        | 5050        | 7432        | 6736        | 3696        | 9072         |
| 17        | Meghalaya         | 6440        | 9074        | 5680        | 6333        | 10992       | 5355         |
| 18        | Assam             | 8280        | 1386        | 7656        | 3680        | 5000        | 4824         |
| 19        | West Bengal       | 36456       | 29332       | 32984       | 15535       | 19880       | 9026         |
| 20        | Jharkhand         | 51040       | 20013       | 49352       | 9240        | 28472       | 19624        |
| 21        | Odisha            | 26368       | 24189       | 25392       | 24646       | 19064       | 12746        |
| 22        | Chhattisgarh      | 29096       | 13062       | 28288       | 8495        | 13848       | 12873        |
| 23        | Madhya Pradesh    | 36088       | 16653       | 35096       | 10211       | 25128       | 17629        |
| 24        | Gujarat #         | 3752        | 654 14777   | 3640        | 790         | 1264        | 293          |
| 25        | Maharashtra##     | 29072       |             | 28520       | 18107       | 26144       | 14960        |
| 26        | Andhra Pradesh    | 41248       | 20183       | 40216       | 28311       | 38879       | 20161        |
| 27        | Telangana         | 2824        | 412         | 2728        | 406         | 640         | 500          |
| 28        | Karnataka         | 29104       | 18200       | 16192       | 12220       | 17984       | 7740         |
| 29        | Goa               | 0           | 0           | 12040       | 6604        | 8376        | 7761         |
| 30        | Lakshadweep       | 30512       | 25752       | 29984       | 21825       | 43384       | 17284        |
| 31        | Kerala            | 3584        | 8           | 3360        | 93          | 720         | 0            |
| 32        | Tamil Nadu        | 14912       | 11507       | 14608       | 9738        | 10928       | 9653         |
| 33        | Puducherry        | 33096       | 29107       | 32480       | 36190       | 28440       | 20836        |
| 34        | A&NIsland         | 4816        | 170         |             |             | 800         | 447          |
|           | Total             | 725376      | 378907      | 4680 703492 | 386 357502  | 516232      | 323362       |

# including Daman & Diu     ## including Dadra & Nagar Haveli