Ease of doing business for MSMEs: The government scheme to provide financial assistance to individuals setting up new enterprises — Prime Minister’s Employment Generation Programme (PMEGP) has enabled 25,105 new units with Rs 802 crore subsidy extended and 2,00,840 jobs generated so far in the current fiscal, official data showed. The half-year performance has already surpassed 1,406 enterprises set up and 11,776 jobs generated in the entire FY22, as per the latest data on the MSME dashboard. The margin money extended stood at Rs 64 crore.
Implemented by the Khadi & Village Industries Commission (KVIC), PMEGP offers maximum assistance of Rs 25 lakh for new units admissible in the manufacturing sector and Rs 10 lakh for the service sector. 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.
Importantly, in May this year, the government had extended the scheme over the 15th Finance Commission Cycle from 2021-22 to 2025-26 with an outlay of Rs 13,554.42 crore. The government said the extension will create sustainable estimated employment opportunities for about 40 lakh people in five financial years.
In addition, multiple modifications were also made to the scheme including increasing the maximum financial assistance offered from the existing Rs 25 lakh to Rs 50 lakh to entrepreneurs for setting up new manufacturing units and from the existing Rs 10 lakh to Rs 20 lakh for new service units.
Also, in September, MSME Minister Narayan Rane inaugurated 72 PMEGP units and disbursed margin money subsidy to 720 PMEGP beneficiaries. According to the dashboard data available since FY17, maximum micro units were set up in FY21 with 74,415 enterprises and 5.95 lakh jobs generated.
