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5 lakh small units to be set up under PMEGP employing 40 lakh people

Vadodara, Feb 15 (KNN) A sum of Rs 8,050 crore has been earmarked to set up around 5 lakh small industrial enterprises with an aim to create employment avenues for nearly 40 lakh people under the 12th Five-Year Plan (2012-17), according to MSME Minister K H Muniyappa.

These enterprises will be established under the Prime Minister's Employment Generation Programme (PMEGP), he told reporters after inaugurating a state -level khadi exhibition here yesterday. 

"PMEGP is the UPA Government's flagship scheme. Ever since its inception in 2008, over 2.34 lakh new entrepreneurs have been assisted under it and 21.16 lakh employment opportunities created across the country. Also, margin money (subsidy) to the tune of Rs 5,167 crore has been released," media reports quoted Muniyappa as saying. 
 
PMEGP is a credit-linked subsidy programme launched by Ministry of MSME in 2008-09 for creation of employment in both rural and urban area of the country.


Muniyappa also said that over 100 new enterprises per district are targeted every year under PMEG in all the 650 districts in the country.
 
The Ministry is also implementing a comprehensive reform package for the khadi sector. This envisages upgradation and capacity building of 300 khadi institutions and improving their marketing skills, the Minister said. 

"Under the package, steps are being taken to distribute 1 lakh modern charkhas to artisans and also new handlooms to various khadi sansthans," Muniyappa added. 

He said "79 clusters have been sanctioned under the Scheme of Fund for Regeneration of Traditional Industries (SFRUTI)."