MSME Ministry eases district-level approval of projects under PMEGP

New Delhi, May 2 (KNN) The Ministry of Micro, Small and Medium Enterprises (MSME) has done away with district-level approval of projects under the Prime Minister Employment Generation Program (PMEGP) and eased the entire procedure.

''As per the amended guidelines, Khadi and Village Industries Commission (KVIC), the nodal agency for implementing PMEGP scheme, after due diligence, will directly clear the proposals/applications of the prospective entrepreneurs and will forward it to the Banks for taking credit decisions,'' said MSME ministry in a statement.

Chairman, KVIC, Shri Vinai Kumar Saxena said a major bottleneck has been removed with the discontinuation of the DLTFC in approving the projects under PMEGP.  He thanked Union MSME Minister Nitin Gadkari for taking swift action in the interest of the country.

Since, district collectors are often busy with administrative duties, there had been considerable delays in sanctioning projects. Seeking to overcome this hurdle, the Chairman KVIC Shri Saxena wrote to the Union Minister, Nitin Gadkari in April 20 and requested for his immediate intervention.

“We are grateful that the Minister accepted our request and decided to discontinue the role of DLTFC. This will ensure swift and timely implementation of the projects. The government’s decision will safeguard the interest of lakhs of people in the country seeking employment opportunities under PMEGP,” said Saxena.

The MSME ministry issued a notification that said the role of the district-level task force “as constituted under Clause 11.9 of the Scheme guidelines, may be discontinued for recommendation of proposals/applications to the financing banks.”

The Ministry has also ordered that “all the PMEGP applications presently pending at DLTFCs level may also be withdrawn by the implementing agencies and forwarded to the banks immediately for taking credit decisions.”

Under the PMEGP scheme, loans up to Rs 25 lakhs are given for manufacturing and service industries, in which 15 to 35 per cent subsidy is provided by the KVIC depending upon the area.

The KVIC, in association with the Bankers Association of India, shall also develop a scoring sheet and upload the same on the PMEGP E-portal. The scoring sheet will also enable the applicants to judge their applications at their level and bringing transparency in the process.