Lok Sabha Question No. 3641 (UNSTARRED), answered on 2015-12-21
Subject: PMEGP
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: DODDAALAHALLI KEMPEGOWDA SURESH, DEVJI MANSINGRAM PATEL, RAVNEET SINGH, NALIN KUMAR KATEEL

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

## LOK SABHA UNSTARRED QUESTION NO. 3641 TO BE ANSWERED ON 21.12.2015

## PMEGP

## 3641. SHRI D.K. SURESH:

SHRI DEVJI M. PATEL:

SHRI RAVNEET SINGH:

SHRI NALIN KUMAR KATEEL:

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

- (a) whether the Prime Minister's Employment Generation Programme is being implemented in the country;
- (b) if  so,  the  details  there  of  including  the  funds  allocated  and  spent  and  number  of persons benefited therefrom during each of the last three years and the current year, Statewise;
- (c) whether the Government proposes to increase the scope of the scheme to help more people to avail the benefits; and
- (d) if so, the details thereof including any proposal regarding direct transfer of benefits to the entrepreneurs?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI GIRIRAJ SINGH)

- (a): Yes, Madam.
- (b): Ministry of Micro, Small and Medium Enterprises (MSME) is implementing a creditlinked  subsidy  scheme  named  Prime  Minister's  Employment  Generation  Programme (PMEGP) since 2008-09 through Banks. Khadi and Village Industries Commission (KVIC) is the  nodal  agency  at  the  national  level  for  generating  employment  by  setting  up  of  microenterprises in the non-farm sector.

Any individual above 18 years of age is eligible. For setting up of projects costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business /service sector, the beneficiaries should possess at least VIII standard pass educational qualification.

Under PMEGP, general category beneficiaries can avail of margin money 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, exservicemen,  physically  handicapped,  beneficiaries  belonging  to  North  Eastern  Region,  hill and border areas, etc.,  the margin money subsidy is 35% in rural areas and 25% in urban area. The maximum cost of project is Rs. 25 lakh in the manufacturing sector and Rs. 10 lakh in the service sector.

Any activity (barring a few indicated in the negative list of PMEGP guidelines) can be taken up under PMEGP, broadly in the areas as mentioned below:

- (i) Agro Based & Food Processing Industry (ABFPI),
- (ii) Forest Based Industry (FBI)
- (iii) Mineral Based Industry (MBI),
- (iv) Polymer & Chemical Based industry (PCBI),
- (v) Rural Engineering & Bio Technology Industry (REBTI),
- (vi) Handmade Paper & Fibre Industry (HMPFI), and
- (vii)  Service & Textiles.

State-wise  details  of  funds  allocated  and  utilized  and  number  of  persons  benefited there-from during each of the last three years and the current year, is given in Annexure-I

- (c): In order to expand the scope of PMEGP and attract more entrepreneurs, the negative list under PMEGP has recently been modified. Under the modified guidelines, the following activities have now been allowed under PMEGP Scheme:
- i. 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).
- ii. Value  added  products  for  tea,  coffee,  rubber,  sericulture,  horticulture,  & floriculture.
- iii. Processing of pashmina wool and other products like hand spinning and hand weaving.
- (d): Under PMEGP the implementing agencies provides subsidy to the financing branch through the nodal banks. Once the subsidy in favour of the beneficiary reaches the financing branch,  it  is  kept  in  the  Term  Deposit  Receipt  (TDR)  of  three  years  in  the  name  of  the beneficiary. After physical verification of the actual establishment and working status of each of the units, the TDR amount is credited to the beneficiary's account and adjusted against the loan.

*****

Annexure  to  reply  given  in  part  (b)  of  the  LokSabha  US  Q  No.  3641  to  be answered on 21.12.2015

2012-13

| Sr. No.   | State/UT                 |   Margin money subsidy allocated (Rs. lakh) |   Margin money subsidy utilized# (Rs. lakh) |   Number of projects assisted |   Estimated employment generated (No. of persons) |
|-----------|--------------------------|---------------------------------------------|---------------------------------------------|-------------------------------|---------------------------------------------------|
| 1         | Jammu& Kashmir           |                                     1667.62 |                                     3413.99 |                          2036 |                                             17452 |
| 2         | Himachal Pradesh         |                                     1449.79 |                                     1350.84 |                           916 |                                              4522 |
| 3         | Punjab                   |                                     1690.67 |                                     1417.92 |                           770 |                                              5206 |
| 4         | UT Chandigarh            |                                      270.76 |                                       68.63 |                            55 |                                               239 |
| 5         | Uttarakhand              |                                     1979.18 |                                     2043.16 |                          1426 |                                              8368 |
| 6         | Haryana                  |                                     1898.54 |                                     1511.38 |                           927 |                                              4867 |
| 7         | Delhi                    |                                      737.96 |                                      133.52 |                           161 |                                              1284 |
| 8         | Rajasthan                |                                     6737.25 |                                     6223.97 |                          2623 |                                             21252 |
| 9         | Uttar Pradesh            |                                    14789.8  |                                    12968.4  |                          4529 |                                             49883 |
| 10        | Bihar                    |                                    14468.9  |                                     7669.08 |                          3150 |                                             19106 |
| 11        | Sikkim                   |                                      432.18 |                                       88.49 |                            49 |                                               283 |
| 12        | Arunachal Pradesh        |                                      581.48 |                                      296.5  |                           261 |                                              2364 |
| 13        | Nagaland                 |                                     1049.47 |                                     1101.32 |                           436 |                                              5570 |
| 14        | Manipur                  |                                     1057.31 |                                     1098.49 |                           660 |                                              3541 |
| 15        | Mizoram                  |                                      724.52 |                                      545.82 |                           517 |                                              3201 |
| 16        | Tripura                  |                                      726.11 |                                     2441.35 |                          1604 |                                             10228 |
| 17        | Meghalaya                |                                     1194.87 |                                      869.07 |                           458 |                                              2160 |
| 18        | Assam                    |                                     6614.06 |                                     5801.15 |                          7336 |                                             26976 |
| 19        | West Bengal              |                                     7326.38 |                                     7382.49 |                          6632 |                                             52624 |
| 20        | Jharkhand                |                                     6792.73 |                                     3423.46 |                          2297 |                                             11466 |
| 21        | Odisha                   |                                     7937.6  |                                     7518.67 |                          3735 |                                             29937 |
| 22        | Chhattisgarh             |                                     4456.87 |                                     3714.39 |                          1748 |                                             12026 |
| 23        | Madhya Pradesh           |                                     9831.73 |                                     9097.43 |                          3201 |                                             27825 |
| 24        | Gujarat*                 |                                     3140.04 |                                     3304.67 |                          1066 |                                             11095 |
| 25        | Maharashtra **           |                                     6875.53 |                                     6794.14 |                          3640 |                                             22358 |
| 26        | Andhra Pradesh           |                                     7189.88 |                                     5655.41 |                          1968 |                                             17982 |
| 27        | Karnataka                |                                     3718.84 |                                     3580.73 |                          1251 |                                             10103 |
| 28        | Goa                      |                                      775.35 |                                       83.87 |                            46 |                                               355 |
| 29        | Lakshadweep              |                                      267.2  |                                        0    |                             0 |                                                 0 |
| 30        | Kerala                   |                                     3265.59 |                                     3343.35 |                          1872 |                                             12396 |
| 31        | Tamilnadu                |                                     3584.58 |                                     4916.28 |                          2244 |                                             32723 |
| 32        | Puducherry               |                                      267.73 |                                       83.79 |                            54 |                                               294 |
| 33        | Andaman &Nicobar Islands |                                      299.5  |                                      124.62 |                           216 |                                               560 |
|           | Total                    |                                   123800    |                                   108066    |                         57884 |                                            428246 |

2013-14

| Sr. No.   | State/UT                 |   Margin money subsidy allocated (Rs. lakh) |   Margin money subsidy utilized # (Rs. lakh) |   Number of projects assisted |   Estimated employment generated (No. of persons) |
|-----------|--------------------------|---------------------------------------------|----------------------------------------------|-------------------------------|---------------------------------------------------|
| 1         | Jammu& Kashmir           |                                     2983.59 |                                      3226.2  |                          1849 |                                             11818 |
| 2         | Himachal Pradesh         |                                     1730.87 |                                      1613.84 |                          1112 |                                              5307 |
| 3         | Punjab                   |                                     2665.96 |                                      2477.06 |                           942 |                                              7536 |
| 4         | UT Chandigarh            |                                      304.74 |                                        59.11 |                            55 |                                               385 |
| 5         | Uttarakhand              |                                     1934.23 |                                      2099.99 |                          1236 |                                              7335 |
| 6         | Haryana                  |                                     2771.26 |                                      2075.51 |                           939 |                                              6352 |
| 7         | Delhi                    |                                     1075.38 |                                       164.74 |                           142 |                                              1136 |
| 8         | Rajasthan                |                                     5554.14 |                                      4064.94 |                          1278 |                                             13280 |
| 9         | Uttar Pradesh            |                                    13786.3  |                                     15104.9  |                          4358 |                                             43449 |
| 10        | Bihar                    |                                     8675.93 |                                      7725.19 |                          3121 |                                             20043 |
| 11        | Sikkim                   |                                      584.56 |                                       108.09 |                            66 |                                               255 |
| 12        | Arunachal Pradesh        |                                     1852.57 |                                       889.42 |                           657 |                                              6570 |
| 13        | Nagaland                 |                                     1705.43 |                                      1125.77 |                           419 |                                              4365 |
| 14        | Manipur                  |                                     1557.67 |                                      1591.34 |                           733 |                                              5277 |
| 15        | Mizoram                  |                                     1117.83 |                                       886.4  |                           777 |                                              5050 |
| 16        | Tripura                  |                                     1163.93 |                                      2225.25 |                          1307 |                                              9175 |
| 17        | Meghalaya                |                                     1333.04 |                                       600.13 |                           414 |                                              1037 |
| 18        | Assam                    |                                     6210.97 |                                      7393.07 |                          8279 |                                             24555 |
| 19        | West Bengal              |                                     4627.57 |                                      5596.72 |                          3273 |                                             24189 |
| 20        | Jharkhand                |                                     4738.31 |                                      4533.11 |                          2612 |                                             13060 |
| 21        | Odisha                   |                                     5854.95 |                                      4075.76 |                          2222 |                                             20482 |
| 22        | Chhattisgarh             |                                     3623.56 |                                      2118.61 |                           867 |                                              4435 |
| 23        | Madhya Pradesh           |                                     8466.23 |                                      7973.02 |                          2463 |                                             19449 |
| 24        | Gujarat*                 |                                     4375.58 |                                      4401.81 |                           914 |                                             13420 |
| 25        | Maharashtra **           |                                     6539.82 |                                      4737.62 |                          2116 |                                             14869 |
| 26        | Andhra Pradesh           |                                     4829.17 |                                      4610.54 |                          1453 |                                             18170 |
| 27        | Karnataka                |                                     4538.84 |                                      7837.31 |                          2760 |                                             25261 |
| 28        | Goa                      |                                      490.68 |                                       143.86 |                            42 |                                               214 |
| 29        | Lakshadweep              |                                      758.55 |                                         3.18 |                             0 |                                                 0 |
| 30        | Kerala                   |                                     2278.34 |                                      2756.94 |                          1505 |                                             11507 |
| 31        | Tamilnadu                |                                     4969.7  |                                      5216.93 |                          2269 |                                             29496 |
| 32        | Puducherry               |                                      781.12 |                                        43.17 |                            43 |                                               181 |
| 33        | Andaman& Nicobar Islands |                                      619.2  |                                       164.94 |                           237 |                                               887 |
|           | Total                    |                                   114500    |                                    107644    |                         50460 |                                            368545 |

2014-15

| Sr. No.   | State/UT                 |   Margin money subsidy allocated (Rs. lakh) |   Margin money subsidy utilized# (Rs. lakh) |   Number of projects assisted |   Estimated employment generated (No. of persons) |
|-----------|--------------------------|---------------------------------------------|---------------------------------------------|-------------------------------|---------------------------------------------------|
| 1         | Jammu& Kashmir           |                                     2919.5  |                                     3274.63 |                          1565 |                                             11025 |
| 2         | Himachal Pradesh         |                                     1687.45 |                                     2237.73 |                          1244 |                                              6352 |
| 3         | Punjab                   |                                     2611.49 |                                     3190.88 |                          1153 |                                              6438 |
| 4         | UT Chandigarh            |                                      287.99 |                                       61.46 |                            36 |                                               160 |
| 5         | Uttarakhand              |                                     1882.35 |                                     2153.32 |                          1333 |                                              7889 |
| 6         | Haryana                  |                                     2716.36 |                                     3012.98 |                          1175 |                                              7024 |
| 7         | Delhi                    |                                     1061.04 |                                      189.24 |                           198 |                                              1584 |
| 8         | Rajasthan                |                                     5369.78 |                                     5249.62 |                          1976 |                                             15002 |
| 9         | Uttar Pradesh            |                                    13239.4  |                                    16937.5  |                          4891 |                                             48604 |
| 10        | Bihar                    |                                     8277.14 |                                     4111.32 |                          1639 |                                              9240 |
| 11        | Sikkim                   |                                      541.34 |                                       33.52 |                            16 |                                                54 |
| 12        | Arunachal Pradesh        |                                     1793.42 |                                     1004.99 |                           652 |                                              2871 |
| 13        | Nagaland                 |                                     1563.64 |                                      878.59 |                           416 |                                              2407 |
| 14        | Manipur                  |                                     1403.65 |                                     1600.76 |                           747 |                                               829 |
| 15        | Mizoram                  |                                     1043.39 |                                      807.98 |                           817 |                                              6736 |
| 16        | Tripura                  |                                      985.02 |                                     1333.65 |                           787 |                                              6333 |
| 17        | Meghalaya                |                                     1184.8  |                                      971.14 |                           555 |                                              3680 |
| 18        | Assam                    |                                     5388.74 |                                     5397.01 |                          5015 |                                             15535 |
| 19        | West Bengal              |                                     4396.32 |                                     6010.11 |                          3397 |                                             24646 |
| 20        | Jharkhand                |                                     4547.06 |                                     2871.29 |                          1699 |                                              8495 |
| 21        | Odisha                   |                                     5621.47 |                                     3945.89 |                          2013 |                                             10211 |
| 22        | Chhattisgarh             |                                     3474.41 |                                     2045.68 |                           847 |                                              5821 |
| 23        | Madhya Pradesh           |                                     8182.74 |                                     9241.7  |                          2737 |                                             21896 |
| 24        | Gujarat*                 |                                     4246.72 |                                     6200.52 |                          1289 |                                             18107 |
| 25        | Maharashtra **           |                                     6299.38 |                                     7843.81 |                          3469 |                                             28311 |
| 26        | Andhra Pradesh           |                                     2667.87 |                                     3492.11 |                           937 |                                             12220 |
| 27        | Telangana                |                                     1954.44 |                                     1889.35 |                           604 |                                              6604 |
| 28        | Karnataka                |                                     4412.99 |                                     6479.1  |                          2431 |                                             21825 |
| 29        | Goa                      |                                      466.91 |                                      141.76 |                            78 |                                               406 |
| 30        | Lakshadweep              |                                      704.68 |                                       28.61 |                            31 |                                                93 |
| 31        | Kerala                   |                                     2206.51 |                                     2679.28 |                          1344 |                                              9738 |
| 32        | Tamilnadu                |                                     4824.96 |                                     6733.89 |                          2858 |                                             36190 |
| 33        | Puducherry               |                                      749.95 |                                      112.1  |                            58 |                                               386 |
| 34        | Andaman &Nicobar Islands |                                      593.09 |                                       92.32 |                           161 |                                               790 |
|           |                          |                                   109306    |                                   112254    |                         48168 |                                            357502 |

## 2015-16

| S.No.   | State/UT                 |   Margin money subsidy allocated (Rs. lakh) |   Margin money subsidy utilized # (Rs. lakh) |   Number projects assisted |   of Estimated employment generated (No. of persons) |
|---------|--------------------------|---------------------------------------------|----------------------------------------------|----------------------------|------------------------------------------------------|
| 1       | Jammu &Kashmir           |                                     3506.8  |                                      1267.79 |                        769 |                                                 4294 |
| 2       | Himachal Pradesh         |                                     1912.88 |                                       332.04 |                        165 |                                                  652 |
| 3       | Punjab                   |                                     3506.8  |                                       982.95 |                        374 |                                                 2655 |
| 4       | Chandigarh (U.T.)        |                                      100    |                                        38.86 |                         16 |                                                  133 |
| 5       | Uttarakhand              |                                     2072.2  |                                       477.28 |                        318 |                                                 1687 |
| 6       | Haryana                  |                                     3347.4  |                                      1220.66 |                        490 |                                                 3920 |
| 7       | Delhi                    |                                     1753.4  |                                        98.44 |                        102 |                                                  821 |
| 8       | Rajasthan                |                                     5260.43 |                                      1209    |                        601 |                                                 4578 |
| 9       | Uttar Pradesh            |                                    11955    |                                      5950.44 |                       1858 |                                                18163 |
| 10      | Bihar                    |                                     6057.2  |                                      3166.76 |                       1226 |                                                 9992 |
| 11      | Sikkim                   |                                      454.77 |                                        11.8  |                          2 |                                                   11 |
| 12      | Arunachal Pradesh        |                                     1932.77 |                                        30.05 |                         26 |                                                   93 |
| 13      | Nagaland                 |                                     1250.62 |                                       385.44 |                        122 |                                                  579 |
| 14      | Manipur                  |                                     1023.23 |                                       401.46 |                        239 |                                                  772 |
| 15      | Mizoram                  |                                      909.6  |                                       206.07 |                        194 |                                                 1552 |
| 16      | Tripura                  |                                      909.54 |                                       513.65 |                        348 |                                                 2997 |
| 17      | Meghalaya                |                                     1250.62 |                                       568.84 |                        222 |                                                 1776 |
| 18      | Assam                    |                                     3069.86 |                                      2866.94 |                       3480 |                                                 9018 |
| 19      | West Bengal              |                                     3188    |                                      2891.74 |                       1589 |                                                11623 |
| 20      | Jharkhand                |                                     3825.6  |                                      1734.53 |                       1192 |                                                 9536 |
| 21      | Odisha                   |                                     4782    |                                      2473.51 |                       1367 |                                                 8240 |
| 22      | Chhattisgarh             |                                     4303.8  |                                      1370.85 |                        450 |                                                 4178 |
| 23      | Madhya Pradesh           |                                     8129.4  |                                      2103.87 |                        544 |                                                 4066 |
| 24      | Gujarat*                 |                                     5260.2  |                                      3085.25 |                        664 |                                                 5993 |
| 25      | Maharashtra **           |                                     5738.4  |                                      2621.16 |                       1236 |                                                 9927 |
| 26      | Andhra Pradesh           |                                     2072.28 |                                      1211.61 |                        322 |                                                 4191 |
| 27      | Telangana                |                                     1594    |                                      1355.09 |                        389 |                                                 4742 |
| 28      | Karnataka                |                                     4782    |                                      3534.98 |                       1218 |                                                 8033 |
| 29      | Goa                      |                                      318.82 |                                         0    |                          0 |                                                    0 |
| 30      | Lakshadweep              |                                      100    |                                         0    |                          0 |                                                    0 |
| 31      | Kerala                   |                                     2231.6  |                                      1605.99 |                        706 |                                                 4839 |
| 32      | Tamil Nadu               |                                     5100.8  |                                      1927.57 |                        930 |                                                 7315 |
| 33      | Puducherry               |                                      100    |                                        29.56 |                         19 |                                                  124 |
| 34      | Andaman &Nicobar Islands |                                      100    |                                        33.1  |                         61 |                                                  157 |
|         | Total                    |                                   101900    |                                     45707.3  |                      21239 |                                               146657 |