PMEGP: New micro enterprises set up in FY21 up 11% from previous year; nearly 6 lakh jobs generated
Skill, labour, talent for MSMEs: The growth in new units set up and employment generated in FY21 assumed significance as 88 per cent of micro beneficiaries under PMEGP were ‘negatively affected’ due to the Covid pandemic.
FY21 growth in PMEGP was recorded despite Rs 595 crore left unspent on the programme by the government during the year.
Skill, labour, talent for MSMEs: The central government scheme — Prime Minister‘s Employment Generation Programme (PMEGP) — to promote
entrepreneurship and generate employment through financial assistance to individuals has enabled 74,415 new micro enterprises in FY21. The estimated employment generated through these new enterprises was 5,95,320, according to the data shared by the Minister of State for MSME Bhanu Pratap Singh Verma in a written reply to a question in the Rajya Sabha on Monday.
New enterprises set up in FY21 were 11 per cent more than 66,653 new units set up in FY20 and marginally up by 1.34 per cent from 73,427 units set up in FY19. Likewise, employment generated under PMEGP in FY21 was higher in comparison to 5,33,224 jobs generated in FY20 and 5,87,416 in FY19.
Implemented by the Khadi & Village Industries Commission (KVIC). PMEGP offers maximum assistance of Rs 25 lakh for setting up new manufacturing units and Rs 10 lakh for new service units. The scheme allows any individual, above 18 years of age and at least VIII grade pass, to apply for assistance. Self-help groups, production co-operative societies, charitable trusts etc., are also eligible, however, existing units under other government schemes such as Pradhan Mantri Rozgar Yojana, Rural Employment Generation Programme, etc., and units
that have already availed government subsidy under any other scheme are not eligible for PMEGP.
Subscribe to Financial Express SME newsletter now: Your weekly dose of
news, views, and updates from the world of micro, small, and medium enterprises
The growth in new units set up and jobs generated in FY21 assumed significance as 88 per cent of micro beneficiaries under PMEGP were =negatively affected‘ due to the Covid pandemic, as per a study done by KVIC earlier last year. Moreover, 57 per cent of beneficiaries had reported temporary shutdowns during Covid, while 30 per cent claimed a drop in production and revenue. ?This (FY21) is the best performance under PMEGP since its inception in 2008-09,? MSME Minister Narayan Rane had told Parliament in July last year.
Moreover, FY21 growth in PMEGP was recorded despite Rs 595 crore left unspent on the programme by the government during the year. According to the data shared by Rane in February this year in Lok Sabha, Rs 2,500 crore was earmarked for PMEGP during FY21, of which Rs 1,905.80 crore was spent. The unspent amount in PMEGP was part of overall around Rs 1,924.7 crore left
unspent across various MSME-related schemes out of Rs 7,572.20 crore allocated to the MSME Ministry in the Union Budget 2020-21.