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Govt allocates Rs 8,060 cr to set up 3.39 lakh projects

NEW DELHI: The government today said it has approved an outlay of Rs 8,060 crore, under Prime Minister's Employment Generation Programme (PMEGP), to set up 3.39 lakh projects which would create about 27.12 lakh jobs.

"An outlay of Rs 8,060 crore has been approved for PMEGP in the 12th Plan to set up 3.39 lakh projects which would create around 27.12 lakh employment," 
Minister of State (Independent Charge) for Micro, Small and Medium Enterprises K H Muniyappa said in a written reply to the Rajya Sabha.

Under the PMEGP, urban and rural entrepreneurs in the general category can avail a subsidy of 15 per cent and 25 per cent on the project cost. In the case of weaker sections of society, a 25 per cent and 35 per cent subsidy is provided to urban and rural businessmen.

During the 11th Plan, margin subsidy of Rs 3,131 crore was released under PMEGP, against which a utilisation of Rs 3,067 crore has been achieved, providing employment to an estimated 16.07 lakh persons through setting up of 1.64 lakh projects, Muniyappa said.

The scheme aims at generating employment through setting up of micro enterprises, including rural industrial units.

Replying to another query, Muniyappa said that to improve credit to the MSME sector and examine other issues, a 
Standing Advisory Committee has been constituted by the RBI.

The panel is headed by 
Deputy Governor of RBI, officials of Ministry of MSME; and banks and associations as members to discuss various issues including credit flow to these units.

Referring to the data maintained by the 
Directorate General of Commercial Intelligence and Statistics (DGCI&S), Muniyappa said, MSME sector's contribution to India's total exports during 2012-13 was 43 per cent.

The government has been implementing various schemes to increase MSME sector's contribution to exports. Some of these programmes include National Manufacturing Competitiveness Programme, Credit Guarantee Scheme, Credit Linked Capital Subsidy Scheme and Market Development Assistance Scheme.