Skill, labour and talent for MSMEs: The number of jobs created through micro enterprises set up under the Prime Minister’s Employment Generation Programme (PMEGP) hit a record high of 8,25,752 in FY22 since the launch of the programme in 2008, MSME Ministry said on Tuesday. Also, the number of enterprises set up during the year went over 1 lakh to 1,03,219 for the first time in the past 14 years. The new units were set up at a total capital of nearly Rs 12,000 crore, of which Rs 2,978 crore margin money subsidy, the highest since 2008, was disbursed by the programme’s implementing body Khadi & Village Industries Commission (KVIC) while bank credit flow had contributed the remaining nearly Rs 9,000 crore.
The growth in new units set up and employment created under PMEGP in FY22 was up by 39 per cent each from FY21, while the margin money distribution (subsidy) had jumped 36 per cent. “PMEGP has emerged as government’s most powerful tool of self-sustainability in the year 2021-22, even as the country was under partial lockdown for the first three months of the year during the second wave of Covid-19 pandemic,” the ministry said.
Moreover, from FY15, when Bharatiya Janata Party was voted to power and Narendra Modi was sworn in as the Prime Minister of India, the number of new PMEGP units created had increased by 114 per cent while employment creation was up 131 per cent in FY22. The margin money distribution also jumped 165 per cent.
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“This big thrust to local manufacturing and self-employment in wake of the Covid-19 pandemic has done wonders. A large number of youths, women and migrants were prompted to take up self-employment activities under PMEGP. Further, a slew of policy decisions taken by the Ministry of MSME and KVIC to expedite the execution of projects under PMEGP helped KVIC achieve its best-ever performance,” said KVIC Chairman Shri Vinai Kumar Saxena.
To promote entrepreneurship and generate employment through financial assistance to individuals, 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.