Narendra Modi’s employment generation programme a success but many problem areas remain: Study

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New Delhi | Published: September 19, 2017 5:34:21 PM

A study on Prime Minister’s Employment Generation Programme (PMEGP) has found that the scheme has provided "sustainable employment" to almost all the sections of the society.

Narendra Modi's employment generation programme, Prime Minister’s Employment Generation Programme, Prime Minister’s Employment Generation Programme NEWS,Prime Minister’s Employment Generation Programme, Management Development Institute, Giriraj Singh, PMEGP NEWSPrime Minister’s Employment Generation Programme has provided “sustainable employment” to almost all the sections of the society. (PTI)

A study on Prime Minister’s Employment Generation Programme (PMEGP) has found that the scheme has provided “sustainable employment” to almost all the sections of the society. The study, conducted by Management Development Institute (MDI), Gurugram, also pointed out that the units set up under the scheme provided employment throughout the year and for large number of years. The Minister of State (Independent Charge) for Micro, Small and Medium Enterprises (MSME), Giriraj Singh was given the evaluation of the study today.

The findings of the study also revealed the shortcomings in the programme. It noted that there has been a delay in the process of sanctioning of loans. The study found flaws in the hypothecation and collaterals that were asked for and physical verification. It pointed out that there were also delay in adjustment of margin money. The record keeping, reporting by implementing agencies and marketing for products were also listed in the problematic areas.

The study observed that the average employment per project was 7.62 and the average cost of generating unit employment was Rs 96,209. In Nagaland, the maximum cost of generating unit employment was Rs 2,75,621, while in Tamil Nadu the cost was Rs 64,735. The government has incured Rs 7,33,423 as the average cost per project.

The study was conducted on a sample size selected on a stratified random sampling basis. The total number of micro units setup from 2012-013 to 2015-16 was 2,00,885 units. Out of this sample about 10,108 units were sought listed on random basis from among the three implementing agencies viz. KVIC, KVIB and DIC in the proportion of 30:30:40.

Making recommendations, based on their study, MDI has suggested to increased availability of field officers as they are a key connection between beneficiary and agencies and are currently sparse. It stated that the EDP training content needs to be more relevant and rigorous and online EDP could be encouraged. Content partnership and Integration with MOOCs (Massive Open Online Coursewares) of reputational institutes like the IIMs and IITs must be introduced, it noted.

The institute has suggested that for motivating beneficiaries to repay loans – the people whose Margin Money has been successfully adjusted, need to be rewarded with an option of 2nd round of subsidized loans, for instance 15 per cent of subsidy. The banks should be given deadlines i.e either of 60 or 90 days to make decision regarding the acceptance or rejection of the loan application, the study said. Cash credit account (CCA) component of the loan could be reduced and should range up to 40 per cent of total loan, it noted.

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