New Delhi: The Union Minister for Micro, Small and Medium Enterprises (MSMEs) Nitin Gadkari stated in Parliament today that the Ministry of MSME is implementing the Prime Minister’s Employment Generation Program (PMEGP), which is a major credit-linked subsidy program aimed at generating self-employment opportunities through the establishment of micro-enterprises in the non-farm sector, including cottage, khadi and village industry units, by helping traditional artisans and rural/urban unemployed youth.
Under the scheme, a beneficiary can avail a loan of up to Rs. 25 lakh in the manufacturing sector and Rs. 10 lakh in the service sector, with a subsidy of 15% to 35% for different categories.
As per guidelines of the PMEGP scheme, 100% physical verification of units is carried out through outsourced agencies after completion of 24 months and before 36 months of setting up of units. Accordingly, as per currently available data for the period from 2008-09 to 2014-15, it is observed that on an average about 80% of PMEGP units are found working and the rest are either closed or not found existing at the original registered location.
Under PMEGP scheme, since its inception in 2008-09, a total of about 5.70 lakh micro enterprises have been assisted with a margin money of Rs. 12,902 crore providing employment to an estimated 47 lakh persons, till 2019-20 (up to 31 October 2019).
In order to enhance the employment opportunities, Ministry of MSME has also introduced a scheme of second financial assistance for expansion and upgrading existing PMEGP and MUDRA units.
The second financial assistance for manufacturing unit is upto Rs. 1 crore and for service or trading units it is up to Rs. 25 lakh with a subsidy of 15% for non North East Region states, and 20% for North East Region and hilly states.
This information was given by Nitin Gadkari, Union Minister for Micro, Small and Medium Enterprises in written reply to a question in Rajya Sabha today.
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