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Economically weaker sections receive loans through PMEGP

New Delhi, Dec 12 (KNN)  In order to provide loans to economically weaker sections  (EWS), the Ministry of micro, small and medium enterprises (MSME) has been implementing various schemes, including facilitating the setting up of micro-enterprises in the non-farm sector.

The MSME Ministry has been implementing a credit-linked subsidy programme namely the Prime Minister’s Employment Generation Programme (PMEGP) since 2008-09 with Khadi and Village Industries Commission (KVIC) as nodal agency at the national level for generating employment in the country, according to official data.

The scheme also contributes to making poor and rural people of the country self-reliant.

Under PMEGP, general category beneficiaries can avail of margin money subsidy of 25 per cent of the project cost in rural areas and 15 per cent in urban areas.  

For beneficiaries belonging to special categories like scheduled castes, scheduled tribes, OBCs, minorities, women, ex-servicemen, physically handicapped, beneficiaries belonging hill and border areas; the margin money subsidy is 35 per cent in rural areas and 25 per cent in urban areas.

The maximum cost of the project is Rs 25 lakh in the manufacturing sector and Rs 10 lakh in the service sector.

On account of the scheme a number of units have been assisted and margin money subsidy utilized under PMEGP during the last few years.

The social objective of KVIC is to create self-reliance amongst people and building up a strong rural community spirit.   Its functions include to plan, promote, facilitate, organize and assist in the establishment and development of khadi and village industries in the rural areas in coordination with other agencies engaged in rural development wherever necessary.