Employment under PMEGP falls 9.5%

Economic Affairs Employment related Issues

According to a study conducted by ASSOCHAM job opportunities under the Prime Minister’s Employment Generation Programme (PMEGP) fell over 9.5% year-on-year to 3.2 lakh in FY16 from more than 3.5 lakh in FY15.

Highlights

The number of projects set up under the PMEGP have reduced from over 48,100 in FY15 to about 44,300.
Uttar Pradesh topped with over 43,000 jobs generated under the PMEGP in FY16, but the number of jobs reduced from more than 48,600 that was generated in FY15 thereby registering a year-on-year decline of more than 11%.
While the number of credit proposals approved under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) increased significantly from just over four lakh to over 5.1 lakh between 2014-15 and 2015-16, the approved amount under this scheme fell 6% from ?21,200 crore in FY15 to more than ?19,900 crore in FY16.
The number of MSMEs which benefited from the Marketing Assistance and Technology Upgradation programme also fell from 359 in FY15 to 303 in FY16.
The number of trainees under the Entrepreneur Development Programmes Scheme fell significantly from more than 1.4 lakh in FY15 to just over 66,000 in FY16.
The number of new ideas approved as part of Entrepreneurial Development of SMEs through Incubators rose marginally from 143 in FY15 to 145 in FY16, according to ASSOCHAM.

About PMEGP:

Prime Minister’s Employment Generation Programme (PMEGP) scheme was announced on 15th August, 2008 in his address from Red Fort.
This is credit linked Scheme of Govt. of India by merging erstwhile REGP and PMRY scheme. KVIC is the Nodal Agency at National Level.

OBJECTIVES

To generate continuous and sustainable employment opportunities in Rural and Urban areas of the country
To provide continuous and sustainable employment to a large segment of traditional and prospective artisans, rural and urban unemployed youth in the country through setting up of micro enterprises.
To facilitate participation of financial institutions for higher credit flow to micro sector.

Salient feature:

The Scheme is implemented through KVIC and State/UT Khadi & V.I. Boards in Rural areas and through District Industries Centres in Urban and Rural areas in ratio of 30:30:40 between KVIC / KVIB / DIC respectively.
No income ceiling for setting up of projects.
Assistance under the Scheme is available only to new units to be established.
Existing units or units already availed any Govt. Subsidy either under State/Central Govt. Schemes are not eligible.
Any industry including Coir Based projects excluding those mentioned in the negative list.
Per capita investment should not exceed Rs. 1.00 lakhs in plain areas and Rs. 1.50 lakhs in Hilly areas.
Maximum project cost of Rs. 25.00 lakhs in manufacturing sector and Rs. 10.00 lakhs in Service Sector.

Submit Error