Focus: Government Policies and Interventions
Why in News?
Since its inception in 2008-09, about 8.34 lakh units have been assisted with Margin Money subsidy of Rs. 20,643 cr. generating estimated employment for about 68 lakh youths across the country.
Prime Minister Employment Generation Program (PMEGP)
- The Prime Minister’s Employment Generation Programme (PMEGP) the result of the merger of two schemes – Prime Minister’s Rojgar Yojana (PMRY) and The Rural Employment Generation Programme (REGP).
- PMEGP is a credit-linked subsidy scheme which promotes self-employment through setting up of micro-enterprises, where subsidy up to 35% is provided by the Government through Ministry of MSME for loans up to ₹25 lakhs in manufacturing and ₹10 lakhs in the service sector.
- PMEGP was established for generation of employment opportunities through establishment of micro enterprises in rural as well as urban areas.
- PMEGP is a central sector scheme administered by the Ministry of Micro, Small and Medium Enterprises (MoMSME).
- At the national level, the Scheme is being implemented by Khadi and Village Industries Commission (KVIC), a statutory organization under the administrative control of the Ministry of MSME as the single nodal agency.
- At the State level, the Scheme will be implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs) and District Industries Centres (DICs) and banks.
Objectives of PMEGP
- To generate continuous and sustainable employment opportunities in Rural and Urban areas of the country
- To provide continuous and sustainable employment to a large segment of traditional and prospective artisans, rural and urban unemployed youth in the country through setting up of micro enterprises.
- To facilitate participation of financial institutions for higher credit flow to micro sector.
Eligibility to avail this scheme:
- Individuals above 18 years of age
- VIII Std. pass required for project above Rs.10.00 lakhs in manufacturing and above Rs. 5.00 lakhs for Service Sector
- Self Help Groups and Charitable Trusts
- Institutions Registered under Societies Registration Act- 1860
- Production based Co-operative Societies
In addition, Khadi and Village Industries Commission (KVIC) is also implementing the following programmes to provide self employment opportunities in rural and backward areas:
- Honey Mission: Under this programme, bee boxes with bee colonies, tool kits and training are provided to supplement the income of farmers, adivasis and rural youth as beekeepers.
- Kumhar Sashaktikaran Programme: Under this programme, rural potters have been provided with training and new energy efficient equipment like Electric Pottery Wheels, Blungers, etc.
- Agarbatti Industry: Under this initiative, pedal operated machines are being distributed to the artisans for making agarbattis through maximum utilization of bamboo.
Khadi and Village Industries Commission (KVIC)
- The Khadi and Village Industries Commission (KVIC) is a statutory body formed in 1957 by the Government of India, under ‘Khadi and Village Industries Commission Act of 1956’.
- It is an apex organisation under the Ministry of Micro, Small and Medium Enterprises, with regard to khadi and village industries within India
- Aim of KVIC is: plan, promote, facilitate, organise and assist in the establishment and development of khadi and village industries in the rural areas in coordination with other agencies engaged in rural development wherever necessary.