The Ministry of Micro, Small and Medium Enterprises, through Khadi and Village Industries Commission (KVIC), is implementing Prime Minister’s Employment Generation Programme (PMEGP) for assisting entrepreneurs in setting up of new units in non-farm sector including agro-based industries in rural as well as urban areas of the country. Under PMEGP, General Category beneficiaries can avail of Margin Money (MM) subsidy of 25% of the project cost in rural areas and 15% in urban areas. For beneficiaries belonging to Special Categories such as Scheduled Castes, Scheduled Tribes, OBCs, Minorities, Women, Ex-servicemen, Differently- Abled, Trans-genders, beneficiaries belonging to North-eastern Region, Hill and Border areas, and Aspirational Districts, the Margin Money subsidy is 35% in rural areas and 25% in urban areas. Besides, beneficiaries from General Categories contribute 10% of project cost while beneficiaries from Special Categories contribute 5% of project cost. The maximum cost of project is Rs. 50 lakhs in the manufacturing sector and Rs. 20 lakhs in the service sector.

Since 2018-19, 2nd financial assistance of upto Rs. 1 cr. for upgradation and expansion of well-performing existing PMEGP/REGP/MUDRA units have been introduced with subsidy of 15% (20% for NER and hilly areas).

State/UT-wise details of Margin Money (MM) disbursed and units set up under PMEGP during the last five years and the current year is at Annexure.

The following steps have been taken to promote the village industries including agro-based industries in rural areas:

• A two-day free online Entrepreneurship Development Programme (EDP) has been initiated by KVIC for prospective entrepreneurs.
• 1056 model Detailed Project Reports (DPRs) on various industries including agro-based industries have been provided on PMEGP portal.
• Webinars are organized on various activities for setting up of micro-enterprises on every Sunday for the awareness of youth and prospective entrepreneurs.
• KVIC, MoMSME facilitates marketing support, organises exhibitions where the institutions and entrepreneurs can sell and display their products.
• KVIC has started online selling of all KVI products through www.khadiindia.gov.in.
• Short film of successful entrepreneurs show cased during workshops, awareness camps, etc. to create awareness about the scheme.
• Radio jingles in regional languages have been made to create awareness of the scheme.
• The prospective entrepreneurs and beneficiaries can opt for the mode of training and choose the training center for offline mode of their choice.
• Information in six regional languages has been provided on the PMEGP portal.
• Offline medium for submitting applications has also been allowed for the prospective beneficiaries for rural areas, are not acquainted with the online medium.

Annexure

Disbursement of Margin money and number of units set up in agro-based industries in the rural areas under PMEGP

Disbursement of Margin money and number of units set up in agro-based industries in the rural areas under PMEGP

This information was given by the Minister of State for Micro Small and Medium Enterprises, Shri Bhanu Pratap Singh Verma in a written reply to the Rajya Sabha today.

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MJPS/NSK