GOVERNMENT OF INDIA
Ministry of Micro, Small and Medium Enterprises

RAJYA SABRA
UNSTARRED QUESTION NO. 1950
TO BE ANSWERED ON: 14.03.2011
Target for Karnataka under PMEGP

1950. SHRI RAJEEV CHANDRASEKHAR:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

(a) whether it is a fact that the State-wise targets for setting up micro enterprises are allocated under the Prime Minister's Employment Generation Programme (PMEGP) in the country; (b) if so, the details thereof;

(c) targets allocated for Karnataka under PMEGP since the launch of the 'programme, year-

Wise;

(d) whether the set targets were achieved during the said period;

(e) if not, what was the backlog and the reasons therefor; and

(f) the steps Government proposes to take to ensure that targets under PMEGP in the State arc fulfilled?

ANSWER
MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES
(SHRI VIRBHADRA SINGH)

(a)&(b).Government in the Ministry of Micro, Small and Medium Enterprises is implementing Prime Minister's Employment Generation Programme (PMEGP), a credit-linked subsidy programme since 2008-09 through Khadi and Village Industries Commission(KVIC) throughout the country as national nodal agency for generating self-employment opportunities through establishment of micro enterprises. The StatelUnion Territory - wise targets for setting up micro enterprises have been allocated under the PMEGP and the state-wise target for last three years are given at Annex.

(c)&(d) Target in terms of government subsidy (also called margin money) are allocated to states in accordance with the approved Budget outlays for PMEOP. for the year. As PMEGP is essentially a banks-driven scheme and is implemented through more than 1000 nodal bank branches, around one fourth of the margin money (subsidy) is in the process of disbursement by banks at a given time resulting in, at times, backlog of utilization of the subsidy at the Bank level. However, such occasional backlogs of margin money targets are carried forward to the next year and are available to the implementing agencies in addition to the normal target of the year. The year-wise margin money targets and achievement for Kamataka under PMEGP since

the launch of the programme are given below:

*upto 06 March, 2011

(e) Though PMEGP has become very popular in the country (around 2.9 lakh applications received during 2010-11 till 6 March 2011), the progress in term of actual disbursement of Bank credits initially was slow including that in Karnataka for a variety of reasons. These include imposition of model code of conduct for general elections, less availability of time during 2008-09 after notification of the scheme in September 2008, initial teething problems, delay in taking credit decision by Banks, etc. The situation, however, has improved in later years after persistent pursuation with the Banks as well as field functionaries to bring down the backlog, at the level of financing bank branches.

(f) The steps taken by the Government through KVIC so as to ensure that targets under PMEGP including those in Karnataka are met include (i) organizing awareness programmes, workshops through the state/divisional offices of KVle/State Khadi and VI Board (ii) meetings of State Level Monitoring Committee under the Chairmanship of Secretary(Industries) of the State Governments to review the progress of the PMEGP (iii) accreditation of 535 Training Centres across the country for providing effective training on entrepreneurship to the beneficiaries (iv) opening of accounts by KVlC in 1014 nodal branches for early settlement of margin money subsidy claims (v)uploading 307 model project profiles on the 'web sites of the KYIC (www.kvic.org.in) and PMEGP (www.pmegp.in) for the reference of potential beneficiaries (vi) developing a software by KVle for Detailed Project Reports by KVle. in consultation with College of Agriculture Banking, RBI, Pune which have been made available by KVIC to all its field offices and those of KVI Boards and District Industries Centers for helping the entrepreneurs in preparation of their project reports and (vii) regular monitoring by KVIC and Ministry.

ANNEX.!

Annex. I referred to in reply to part (a) & (b) of the Rajya Sabha Unstarred Question No. 1950 for answer on 14.03.2011.

State/Union Territory (UT) - wise details of target for setting up of units under the PMEGP