MSME Ministry announces slew of measures to enhance PMEGP
Updated: Sep 05, 2013 04:07:23pm
New Delhi, Sept 5 (KNN) The Ministry of micro, small and medium enterprises has recently taken many initiatives to enhance the effectiveness of the implementation of the Prime Minister's Employment Generation Fund (PMEGP), including the setting up of a district level advisory committee to monitor the programme.
“A slew of measures recently taken by the Ministry for improved implementation of its flagship scheme are expected to fight economic slowdown by faster creation of enterprises and jobs in the micro sector,” said the Minister MSME, K H Muniyappa at a press conference here yesterday.
PMEGP is the major credit linked subsidy programme being implemented by the Ministry, which on August-30 constituted an Advisory Committee for each district of the country for monitoring the progress of the programme with active involvement of Members of Parliament from the district.
The District Level Advisory Committee that would meet once every quarter would comprise around 30 members and provide overall guidance and suggestions for the implementation of the programme.
Further, the committee would liaise and coordinate with KVIC (Khadi and Village Industries Commission), state government and other agencies including banks for effective mobilization of young entrepreneurs under PMEGP. It would also ensure that the scheme is implemented in accordance with its guidelines.
The Committee would be chaired by the Member of Parliament (Lok Sabha) elected from the District having the largest part of the district under his/ her Parliamentary constituency. Other Members of Parliament of Lok Sabha having part constituency in the district would be co-chairperson and Member of Parliament of Rajya Sabha will be a member, said an official notification.
The other members would include Members of State Legislative Assembly and Legislative Council, Chairperson of Zilla Panchayat, representatives of SC/ST, OBC, minority and women and one professional from social work/ social science, representatives of bank and financial institutions. District Magistrate/ Collector will be its member-convener.
Nodal agency for the scheme at the national level is KVIC and so the Ministry has already issued instructions that the units assisted under the scheme are actually set up within a time frame of 100 days.
In recent months the Ministry has expanded the District Level Task Force Committee (which is mandated to select the beneficiaries under the scheme) by inclusion of members of social categories like SC/ST and women.
Further, for the convenience of candidates applying for the PMEGP assistance, applications can be filed online and beneficiaries can check status of their application through an online monitoring system on website www.msme.gov.in and www.kvic.org.in.
Considering that the PMEGP is a major credit linked subsidy programme, the Government, according to the minister has released Rs 5251.51 crore under the scheme since 2008-09 and more than 2.22 lakh projects have already been assisted, providing employment to an estimated 20.42 lakh persons.
In addition, it has enhanced the allocation for PMEGP every year, the allocation for the current year (2013-14) being Rs 1418.28 crore for the existing 1.03 lakh projects creating employment for over 8 lakh persons.
KVIC and other implementing agencies have been asked to ensure that at least 100 projects per district are assisted under the scheme this year.
Significantly, the allocation for the three disaster affected districts of Uttarakhand has also been increased substantially which would help re-build the entrepreneurial base of the region.
On the issue of plan allocation, the Minister said “For the country, as a whole, the outlay for XII Five Year Plan under PMEGP has been kept at Rs 8060 crore which is 70 per cent higher than the allocation of XI Plan for the scheme for creating over 5 lakh enterprises creating employment for about 40 lakh persons.”
The Minister also announced that collateral free loans were available for PMEGP projects costing upto Rs 25 lakh; as per an RBI circular of May 6, 2010, where banks have been mandated not to accept collateral security in the case of loans upto Rs 10 lakh extended to units in the micro and small enterprises sector; and under the Credit Guarantee Scheme of the Credit Guarantee Fund Trust for Micro and Small Enterprises. The scheme is designed to create productive employment through entrepreneurship (especially in the manufacturing sector) and arrest migration of workers and artisans to urban centres and other areas in search of employment.
Others present at the conference were Secretary, Ministry of MSME Madhav Lal, Joint Secretary S N Tripathi, and CEO, KVIC Udai Pratap Singh. (KNN/ES)
“A slew of measures recently taken by the Ministry for improved implementation of its flagship scheme are expected to fight economic slowdown by faster creation of enterprises and jobs in the micro sector,” said the Minister MSME, K H Muniyappa at a press conference here yesterday.
PMEGP is the major credit linked subsidy programme being implemented by the Ministry, which on August-30 constituted an Advisory Committee for each district of the country for monitoring the progress of the programme with active involvement of Members of Parliament from the district.
The District Level Advisory Committee that would meet once every quarter would comprise around 30 members and provide overall guidance and suggestions for the implementation of the programme.
Further, the committee would liaise and coordinate with KVIC (Khadi and Village Industries Commission), state government and other agencies including banks for effective mobilization of young entrepreneurs under PMEGP. It would also ensure that the scheme is implemented in accordance with its guidelines.
The Committee would be chaired by the Member of Parliament (Lok Sabha) elected from the District having the largest part of the district under his/ her Parliamentary constituency. Other Members of Parliament of Lok Sabha having part constituency in the district would be co-chairperson and Member of Parliament of Rajya Sabha will be a member, said an official notification.
The other members would include Members of State Legislative Assembly and Legislative Council, Chairperson of Zilla Panchayat, representatives of SC/ST, OBC, minority and women and one professional from social work/ social science, representatives of bank and financial institutions. District Magistrate/ Collector will be its member-convener.
Nodal agency for the scheme at the national level is KVIC and so the Ministry has already issued instructions that the units assisted under the scheme are actually set up within a time frame of 100 days.
In recent months the Ministry has expanded the District Level Task Force Committee (which is mandated to select the beneficiaries under the scheme) by inclusion of members of social categories like SC/ST and women.
Further, for the convenience of candidates applying for the PMEGP assistance, applications can be filed online and beneficiaries can check status of their application through an online monitoring system on website www.msme.gov.in and www.kvic.org.in.
Considering that the PMEGP is a major credit linked subsidy programme, the Government, according to the minister has released Rs 5251.51 crore under the scheme since 2008-09 and more than 2.22 lakh projects have already been assisted, providing employment to an estimated 20.42 lakh persons.
In addition, it has enhanced the allocation for PMEGP every year, the allocation for the current year (2013-14) being Rs 1418.28 crore for the existing 1.03 lakh projects creating employment for over 8 lakh persons.
KVIC and other implementing agencies have been asked to ensure that at least 100 projects per district are assisted under the scheme this year.
Significantly, the allocation for the three disaster affected districts of Uttarakhand has also been increased substantially which would help re-build the entrepreneurial base of the region.
On the issue of plan allocation, the Minister said “For the country, as a whole, the outlay for XII Five Year Plan under PMEGP has been kept at Rs 8060 crore which is 70 per cent higher than the allocation of XI Plan for the scheme for creating over 5 lakh enterprises creating employment for about 40 lakh persons.”
The Minister also announced that collateral free loans were available for PMEGP projects costing upto Rs 25 lakh; as per an RBI circular of May 6, 2010, where banks have been mandated not to accept collateral security in the case of loans upto Rs 10 lakh extended to units in the micro and small enterprises sector; and under the Credit Guarantee Scheme of the Credit Guarantee Fund Trust for Micro and Small Enterprises. The scheme is designed to create productive employment through entrepreneurship (especially in the manufacturing sector) and arrest migration of workers and artisans to urban centres and other areas in search of employment.
Others present at the conference were Secretary, Ministry of MSME Madhav Lal, Joint Secretary S N Tripathi, and CEO, KVIC Udai Pratap Singh. (KNN/ES)
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