Outlay under PM’s Employment Generation programme increased by 23% in 2012-13

NEW DELHI : The outlay under the Prime Minister’s Employment Generation programme ( PMEGP) has been increased by 23% to Rs. 1276.28 crores in 2012-13 given its vast popularity and response.

More than 1.7 lakh first generation entrepreneurs have been able to successfully set up their own businesses with the help of the subsidy provided under this central scheme through State and Village Khadi Industries Boards, Khadi commissions among others.

The credit linked subsidy under the programme ranges from 25%-35% with no ceiling on income. However, the margin money subsidy is made available only for new units, trusts or societies and covers capital expenditure and working capital but not the cost of land.

For the year 2011-12 the outlay for the scheme, which primarily targets rural non farm sector, was Rs. 1037 crores.

PMEGP, which was started in 2008, focuses on micro enterprises, artisans and unemployed youth. The programme has also been lauded for helping minimize rural migration into urban centers by providing ample job opportunities in villages and districts.

Though the ultimate decision to disburse loans is kept with banks, the scheme ensures easy credit availability as the banks are required to answer to the district level task force, the reason for rejection of any loan proposal.

Further, quarterly reports are required to be sent by states to the Ministry of Micro Small and medium enterprises ( MSME) to help them track the progress of the scheme pan India.