Govt Sanctions Rs 8,060 cr For PMEGP | SupportBiz

Finance Forum

Govt Sanctions Rs 8,060 cr For PMEGP

Tags: PMEGP, finance
The government is looking to create over 27 lakh jobs in the 12th Plan period ending March 2017 through the Prime Minister's Employment Generation Programme (PMEGP)

New Delhi: The scheme provided jobs to over 16 lakh persons during the 11th Plan (2008-2012) and it will be continued during Twelfth Plan (2012-13 to 2016-17).

"An outlay of Rs 8,060 crore (Rs 7,800 crore Margin Money subsidy plus Rs 260 crore under Backward and Forward Linkages) has been approved by the Planning Commission for PMEGP in the 12th Five Year Plan to set up about Rs 3.39 lakh projects with creation of about 27.12 lakh employment," an official statement said by MSME Ministry said.

The government provides Margin Money subsidy between 25 to 35 percent of the Project cost, depending upon the category of the entrepreneur, with the remaining amount being covered by the banks.

"The scheme has received very encouraging response from all the stakeholders in the country and is well received by the unemployed youth," according to the statement.

PMEGP is already in operation and completed two years during the 12th Plan period successfully. Therefore, the PMEGP Scheme has been approved for continuation by the micro, small and medium enterprises (MSME) Ministry during the 12th Plan without any change in the broad framework and parameters of the scheme.

For the year 2014-15, the targets have been fixed for setting up of about 1.03 lakh micro units with the margin money subsidy of Rs 1,380 crore to generate employment for 8.25 lakh persons. PMEGP is a central sector scheme launched in 2008-09 to empower first generation entrepreneurs for setting up micro enterprises across the country by merging Prime Minister's Rozgar Yojana (PMRY) and Rural Employment Guarantee Programme (REGP) schemes.

Khadi and Village Industries Commission is the nodal agency at national level for implementation of PMEGP. An evaluation study of PMEGP was conducted by M/s Development & Research Services Pvt Ltd, New Delhi during 2013-14 for the sample units financed during 2008-09 to 2011-12.

The report reveals that 91.7 per cent of the units financed are working and average income of the beneficiaries has increased by 61 per cent which shows the success of the PMEGP scheme for generation of employment opportunities in rural and urban areas of the country.