The Government in the Ministry of Micro, Small and Medium Enterprises(MSME) was implementing Prime Minister’s Rozgar Yojana (PMRY) which was discontinued with effect from 2008-09 and a new credit-linked subsidy scheme named Prime Minister’s Employment Generation Programme (PMEGP) is being implemented since 2008-09 through Banks with Khadi and Village Industries Commission (KVIC) as nodal agency at the national level for generating employment in the Country by setting up of micro-enterprises in the non-farm sector. Under PMEGP, general category beneficiaries can avail of margin money subsidy of 25% of the project cost in rural areas and 15% in urban areas.  For beneficiaries belonging to special categories such as scheduled castes, scheduled tribes, OBCs, minorities, women, ex-servicemen, physically handicapped, beneficiaries belonging to North Eastern Region, hill and border areas, etc.,  the margin money subsidy is 35% in rural areas and 25% in urban area. The maximum cost of project is ` 25 lakh in the manufacturing sector and ` 10 lakh in the service sector.

The release of margin money subsidy which is treated as target, as also the achievements in term of the margin money subsidy utilized and the corresponding number of projects assisted under PMEGP in Jharkhand and Bihar during the last three years and current year is given below:

                    # including un-utilized  balance funds of previous year

                   * upto 31 July 2014

Although KVIC is the nodal agency for PMEGP at the national level, the role of State Governments/Union Territories is crucial in achieving the targets as the beneficiaries and projects are selected by the District Level Task Force Committees (DLTFCs) and the scheme is also reviewed at the State level Bankers Committee by senior functionaries of the State Governments/Union Territories. Central Government has been providing necessary funds, policy inputs and guidance to KVIC for achieving the targets. Intensive monitoring of the scheme and periodic interaction with Banks are also carried out at various levels by KVIC and at national level by the Ministry.

KVIC has undertaken awareness camps, workshops, exhibitions, etc at State and district levels to further popularize the scheme.

This information was given by the Union Minister of Micro, Small and Medium Enterprises, Shri Kalraj Mishra in a written reply to a question in Rajya Sabha here today.

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