Skill, labour, talent for MSMEs: MSME Minister Narayan Rane on Saturday inaugurated 72 units supported under the government’s employment generation scheme Prime Minister’s Employment Generation Programme (PMEGP) and disbursed margin money subsidy to 720 PMEGP beneficiaries. “It is the mission of the Prime Minister to encourage entrepreneurial skills among youth so that more industries can be started and thereby unemployment can be reduced. Only then India can become a superpower,” Rane said in his address inaugurating the units from the Khadi & Village Industries Commission (KVIC) office in Mumbai.
As of September 15, 2022, 25,105 projects were sanctioned under the scheme with over Rs 802 crore margin money released and 2,00,840 jobs generated, the MSME Ministry said in a statement. KVIC expects 720 projects with Rs 27.43 crore margin money to generate employment for 5,760 people.
PMEGP is implemented by KVIC to offer financial assistance up to Rs 50 lakh for setting up new manufacturing units and Rs 20 lakh for new service units. The scheme allows any individual, above 18 years of age and at least VIII grade pass, to apply for assistance. The limit was increased from earlier Rs 25 lakh for manufacturing units and Rs 10 lakh for service units in an announcement by PM Modi in June this year.
The scheme had enabled 1,03,219 new micro enterprises in FY22, up 38 per cent from FY21, with a margin money subsidy of Rs 2,977 crore disbursed during the year. In FY21, the number of new micro units set up under PMEGP was 74,415 with Rs 2,188 crore in subsidy while in FY20, 66,653 new micro enterprises were set up with Rs 1,950 crore subsidy. The data was shared by the Minister of State for MSMEs Bhanu Pratap Singh Verma in the Lok Sabha in July this year.
The government May this year announced the extension of the scheme over the 15th Finance Commission Cycle from 2021-22 to 2025-26 with an outlay of Rs 13,554.42 crore. The estimated number of jobs to be created with the extension was around 40 lakh in five financial years. As of FY22, the number of jobs generated under the scheme stood at 8,25,752.