PMEGP: Over 36,000 new enterprises set up in FY22 so far with employment to nearly 3 lakh people

The utmost help of Rs 25 lakh is supplied to solely new models admissible within the manufacturing sector and Rs 10 lakh for the service sector beneath PMEGP. (Picture: Pexels.com)

Credit score and Finance for MSMEs: The federal government scheme to offer monetary help to people establishing new enterprises — Prime Minister’s Employment Era Programme (PMEGP), which had FY21 as its finest performing 12 months since FY17, has enabled employment for two.91 lakh folks within the present monetary 12 months thus far. In line with the newest official information, 36,391 new micro enterprises have been prolonged subsidy of Rs 1,150 crore, and a couple of,91,656 jobs have been created by way of these models in the course of the little over a seven-month interval of the monetary 12 months 2021-22. Carried out by the Khadi & Village Industries Fee (KVIC), PMEGP’s FY22 efficiency thus far managed to exceed 31,436 models arrange beneath the scheme in FY17 with complete employment of two.51 lakh. 

The utmost help of Rs 25 lakh is supplied to solely new models admissible within the manufacturing sector and Rs 10 lakh for the service sector. The scheme permits any particular person, above 18 years of age and no less than VIII grade go, to use for help. Self-help teams, manufacturing co-operative societies, charitable trusts and many others., are additionally eligible, nevertheless, current models beneath different authorities schemes reminiscent of Pradhan Mantri Rozgar Yojana, Rural Employment Era Programme, and many others., and models which have already availed authorities subsidy beneath some other scheme are usually not eligible for PMEGP.

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The employment era assumed significance as over 5 million formal and casual staff had misplaced their jobs in October. The variety of employed folks in October stood at 400.77 million compared to 406.24 million in September 2021, as per month-to-month information from the Centre for Monitoring Indian Financial system (CMIE). Furthermore, the nationwide labour power participation fee (LFPR) additionally declined from 40.66 per cent in September to 40.41 per cent in October.  

Alternatively, as per a examine executed by KVIC earlier this 12 months, 88 per cent of micro beneficiaries beneath PMEGP have been ‘negatively affected’ because of the Covid pandemic. 57 per cent of beneficiaries had stated their models have been shut down quickly in the course of the Covid interval, whereas 30 per cent reported a drop in manufacturing and income. Regardless of the Covid impression, a document 74,415 models have been setup in FY21 with the subsidy of Rs 2,188 crore and employment to five.95 lakh folks since FY17, as per the out there information. ““That is the most effective efficiency beneath PMEGP since its inception in 2008-09. Thus, the goal fastened beneath PMEGP for the 12 months 2020-21 has been surpassed regardless of COVID 19 challenges,” MSME Minister Narayan Rane sharing the information in reply to a query within the Rajya Sabha had stated in July this 12 months.