Skilling, Labour, Talent for MSMEs: The approval of PMEGP projects during the first five months of this financial year rose by a whopping 44 per cent.
Skilling, Labour, Talent for MSMEs: As the coronavirus pandemic takes a toll on the employment conditions in the country, Prime Minister Employment Generation Programme (PMEGP) has come to the rescue. The programme has led to a substantial increase in job opportunities since April 2020 after a rule tweak made approvals easier and faster. The government said that with the contribution of Khadi and Village Industries Commission (KVIC) and the major decision of the Ministry of MSME to introduce a new and faster mechanism in approving the PMEGP projects, the approval of projects during the first five months of this financial year rose by a whopping 44 per cent.
The KVIC has approved and forwarded 1.03 lakh project applications to the financing banks as compared to 71,556 projects during the corresponding period last year, said a statement by the Ministry of Micro, Small & Medium Enterprises. KVIC Chairman Vinai Kumar Saxena said the massive jump in approval of PMEGP projects is a result of the Prime Minister’s call for ‘Minimum Government, Maximum Governance’. Discontinuing the role of District Collectors has ensured the swift implementation of the projects, he added.
Earlier this year, the government amended the guidelines to do away with the role of the District Level Task Force Committee (DLTFC) in approving the employment generation projects, headed by the District Collectors. The role of the district committees was believed to be time-consuming and was barring the swift execution of projects under PMEGP. Vinai Kumar Saxena further said that the banks must also expedite the process of sanctioning funds so as to benefit the maximum number of applicants as timely disbursal of funds is crucial for the execution of projects and creating employment in the country.
Meanwhile, PMEGP is the flagship employment generation program of the centre and KVIC is the nodal agency for implementing the scheme. Since April 2020, the financing banks have 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 the previous year. 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 on-year.