The Ministry of Micro, Small and Medium Enterprises has  launched a new central sector scheme named Prime Minister’s Employment Generation Programme (PMEGP) in 2008-09 through merger of the erstwhile schemes of Prime Minister’s Rozgar Yojana (PMRY) and Rural Employment Generation Programme(REGP) for promotion of micro industries in the rural as well as urban areas. PMEGP is a credit-linked subsidy programme implemented through field offices of Khadi and Village Industries Commission(KVIC), State/Union Territory Khadi and Village Industries Boards (KVIBs) and District Industries Centres (DICs) with involvement of Banks. PMEGP aims at creating additional employment opportunities in non-farm sector by providing margin money assistance for establishment of micro enterprises. Under this Programme, beneficiaries can establish micro enterprises by availing margin money subsidy of 25 percent  of project cost for  units in rural areas to be set up by beneficiaries belonging to general category which will be 35 percent for beneficiaries belonging to special categories  such as scheduled castes/scheduled tribes /women and others through the  implementing agencies and loans from Banks, etc., for projects costing up to Rs.25 lakh each in the manufacturing sector and upto Rs.10 lakh each in the service sector.   In urban areas, the quantum of margin money subsidy is 15% and 25% for beneficiaries belonging to general and special categories, respectively.

            As per KVIC Act, 1956, the industries that come under the category of village industries irrespective of whether they are located in rural areas or not. In addition, any industry including coir based projects which produces goods or renders any service with or without the use of power and in which the fixed capital investment per head of a full time artisan or worker i.e. capital expenditure on workshop/workshed, machinery and furniture divided by full time employment created by the project does not exceed Rs. 1 lakh in plain areas and Rs. 1.50 lakh in hilly areas is also covered under the category of village industries.

List of  village industries as providing in the Schedule of KVIC Act, 1956.

1. Beekeeping
2. Cottage match industry, manufacture of fireworks and agarbatties
3. Cottage pottery industry
4. Cottage soap industry                      
5. Flaying, curing and tanning of hides and skins and ancillary industries connected with the same and cottage leather industry.
6. Ghani oil industry.
7. Handmade paper
8. Manufacture of cane-gur and khandsari.
9. Palmgur making and other palm-products industry.
10. Processing, packaging and marketing of cereals, pulses, spices, condiments, masalas, etc.
11. Manufacture and use of manure and methane gas from cowdung and other waste products (such as flesh of dead animals, night soil, etc.)
12. Lime stone, lime shell and other lime products industry.
13. Manufacture of shellac.
14. Collection of forest plants and fruits for medicinal purposes.
15. Fruit and vegetable processing, processing, preservation and canning including pickles.
16. Bamboo and cane work.
17. Blacksmithy
18. Carpentry
19. Fibre other than coir
20. Manufacture of household utensils in aluminium.
21. Manufacture of katha
22. Manufacture of gum, resins
23. Manufacture of lok-vastra cloth
24. “Poly-vastra” which means any cloth woven on handlooms in India from yarn, handspun in India from a mixture of man-made fibre with either cotton, silk or wool or with any two or all of them or from a mixture of man-made fibre yarn handspun in India with either cotton silk of woollen yarn handspun in India or with any two or all of such yarns
25. Processing of maize and ragi
26. Manufacture of rubber goods (dipped latex products)

State/Union Territory (UT) - wise details of margin money assistance utilized under the PMEGP                                                                                                                                                                                                       

                                                                  (in ` Lakh)

State/Union Territory (UT) – wise details of estimated employment opportunities created under PMEGP

                                                                   (Number in persons)

This information was given by the Union Cabinet Minister of Micro Small and Medium Enterprises, Shri Virbhadra Singh in a written reply to a question  in the Rajya Sabha today.

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RT/AKA