Prime Minister’s Employment Generation Programme

Syllabus: General Studies Paper 3

Context

• With setting up of an unprecedented 1.03 lakh new manufacturing and service units and creation of over 8.25 lakh jobs, PMEGP has emerged as government’s most powerful tool of self-sustainability in the year 2021-22.
• This is for the first time since the launch of the PMEGP Scheme in 2008, that KVIC has established over one lakh new units in a financial year. These 1,03,219 units have been established at a total capital of nearly Rs 12,000 crore out of which KVIC disbursed a margin money subsidy of Rs 2978 crore while the bank credit flow was nearly Rs 9,000 crore.
• The margin money subsidy of Rs 2978 crore given by KVIC in the year 2021-22 is also the highest since 2008. A whopping 8,25,752 new employment were created across the country, which is also the highest so far under PMEGP.

About PMEGP

• Prime Minister’s Employment Generation Programme (PMEGP) is a central sector scheme administered by the Ministry of Micro, Small and Medium Enterprises since 2008-09.
• It is a major credit-linked subsidy programme aimed at assisting first generation entrepreneurs for setting up micro enterprises in the non-farm sector by helping traditional artisans and unemployed youth.
• At the national level, the Scheme is being implemented by Khadi and Village Industries Commission (KVIC), a statutory organization under the administrative control of the Ministry of MSME, as the single nodal agency.
• At the State level, the Scheme will be implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs) and District Industries Centres (DICs) and banks.
• Under the scheme, loans are being provided by all Public Sector Banks, selected Private Sector Banks and Co-operative Banks with margin money subsidy (refers to the amount that the government contributes to beneficiaries availing PMEGP loan) being given by the Ministry of MSME through KVIC.

Scope

• The scheme is applicable to all viable projects in rural as well as urban areas, under the Micro enterprises sector.
• The maximum cost of the project admissible under the manufacturing sector is Rs.25 lakhs and the business/services sector is Rs.10 lakhs.
• Only one person from a family is eligible for obtaining financial assistance under the scheme.
• Assistance under the Scheme is available only for new projects.

Eligible Entrepreneurs / Borrowers

• Any individual, above 18 years of age
• The beneficiaries should have passed at least VIII standard, for setting up of project costing above Rs.10 lacs in the Manufacturing Sector and above Rs. 5 lacs in the business /Service Sector,
• Self Help Groups
• Institutions registered under Societies Registration Act, 1860
• Production Co-operative Societies
• Charitable Trusts

The PIB link

https://pib.gov.in/PressReleasePage.aspx?PRID=1818004

Question- How does the Prime Minister’s Employment Generation Programme is aimed at giving boost to Micro enterprises sector? Explain.