Approval of projects under PMEGP scheme records 44 per cent between April-August

New Delhi, Aug 21 (KNN) The approval of projects under the government's flagship Prime Minister's Employment Generation Programme (PMEGP) increased 44 per cent between April 1 and August 18 this year, said Khadi and Village Industries Commission (KVIC).

''The KVIC has approved and forwarded 1.03 lakh project applications to the financing banks as compared with 71,556 projects during the corresponding period last year, thus registering a jump of nearly 44 per cent,'' KVIC said in a statement on Thursday.

The role of the committee, headed by district collector, was seen as a bottleneck in timely and swift execution of projects under the PMEGP.

"Thanks to the decision of the Ministry of MSME of eliminating the role of district collectors in approving the PMEGP projects, the approval of projects during the first five months of this financial year, i.e. from April 1, 2020 to August 18, 2020, increased by a whopping 44 per cent," KVIC said.

According to KVIC, during the period from April to August in 2020, financing banks sanctioned 11,191 projects and Rs 345.43 crore margin money was disbursed to applicants as compared to Rs 276.09 crore margin money disbursed for 9161 projects in the first five months of previous year, i.e. 2019.

''The number of sanctioned projects by banks thus increased by 22 per cent while the disbursement of margin money by KVIC increased by 24 per cent as compared to previous year,'' it added.

“Discontinuing the role of District Collectors has ensured swift implementation of the projects. However, the banks must also expedite the process of sanctioning funds so as to benefit the maximum number of applicants,'' said KVIC Chairman Vinai Kumar Saxena. 

''Timely disbursal of funds is crucial for execution of projects and creating employment in the country,” Saxena asserted.