Ease of doing business for MSMEs: According to the government data, PMEGP units in FY22 increased by 38 per cent from FY21, with a margin money subsidy of Rs 2,977 crore disbursed during the year.
Ease of doing business for MSMEs: The number of new manufacturing and service units set up under the central government scheme Prime Minister’s Employment Generation Programme (PMEGP) crossed the 1 lakh mark for the first time in 14 years since the latter’s launch in 2008, said Minister of State for MSMEs Bhanu Pratap Singh Verma on Wednesday. Addressing the 19th Global MSME Business Summit by industry body CII in Delhi, Verma highlighted 8.25 lakh jobs created under the scheme in FY22, hitting a record high since 2008.
According to the government data, PMEGP units in FY22 increased by 38 per cent from FY21, with a margin money subsidy of Rs 2,977 crore disbursed during the year. The number of new micro units set up in FY21 with the support of PMEGP was 74,415 with Rs 2,188 crore in subsidy. In comparison, 66,653 new micro enterprises were set up with Rs 1,950 crore subsidy pre-Covid in FY20.
PMEGP is implemented by the Khadi & Village Industries Commission (KVIC) to offer financial assistance for setting up new manufacturing units and service units. The scheme allows any individual, above 18 years of age and at least VIII grade pass, to apply for assistance. The growth in new units assumed importance as 88 per cent of micro units under the scheme were “negatively affected” due to the pandemic, a study done by KVIC earlier last year.
“I urge you all to increase your production capacity to boost exports and employment because I know that during Covid some MSMEs were shut or were not able to pay their workers,” Verma said.
As per the data shared by Verma in Rajya Sabha in March this year, 5,907 businesses registered with the MSME ministry were shut during FY 2020-21 and 2021-22 (till March 9, 2022). While 330 MSMEs got shut down during FY21, the number jumped. These included 155 Udyog-Aadhaar-Memorandum (UAM) registered units shut during the April-June 2020 period and 175 Udyam-registered units between July 2020 and March 2021. In FY22, the number of MSME closures jumped nearly 17x to 5,577 Udyam entities.