MSMEs are playing a vital role in generating employment in the country. This sector provides employment to more than 6 crore people. But what’s more, this sector also gives chance to unskilled person to earn their bread and butter.  Most unorganized sector of this country generates maximum employment for unskilled person.

“MSME Ministry’s most ambitious scheme – Prime Minister’s Employment Generation Programme (PMEGP) – provided employment to 3.78 lakh people, 3.57 lakh people and 3.23 lakh people, respectively for 2013-14, 2014-15 and 2015-16. Durimng the current financial year (2016-17), PMGP employed more than 1.20 lakh people as per data till June 30, 2016.”, Union Minister of State, MSME, Giriraj Singh said in Lok Sabha on July 25. He was replying to questions asked by Birendra Kumar Chaudhary , BJP MP from Jhanjharpur , Bihar; Gopal Shetty, BJP MP from Mumbai North; Rahul Kaswan, BJP MP from Churu, Rajasthan and Alok Sanjar, BJP MP from Bhopal, Madhya Pradesh.

“Ministry of Micro, Small and Medium Enterprises is implementing a credit-linked subsidy scheme named Prime Minister’s Employment Generation Programme (PMEGP) since 2008-09 through Banks. Khadi and Village Industries Commission (KVIC) is the nodal agency at the national level for generating employment by setting up of micro-enterprises in the non-farm sector. The maximum cost of project is Rs. 25 lakh in the manufacturing sector and Rs. 10 lakh in the service sector.” The Minister added.

Uttar Pradesh is biggest beneficiary of this scheme which is continuously topping the list in terms of providing employments. The state got allocated margin money subsidy of Rs 137 crore and employed more than 44,044 people through 4354 project assisted by PMEGP in the year of 2013-14. In the next year of 2014-15, it provides employment to 48,604 people on the margin money subsidy of 132 crore through 4891 project assisted by PMEGP scheme.

The state again tops the list with providing employment to 43,059 people on margin money subsidy of Rs 175 crore through 4365 projects assisted by this scheme in 2015-16. In his current fiscal year, Uttar Pradesh has already employed 18796 people from allocated margin subsidy money of 129 crore as per data till June 30, 2016.

Tamil Nadu, Assam, Karnataka and Bihar are also performing better though this scheme. Karnataka and Assam has provided employment to 13643 and 10535 people respectively in this year till June 30, 2016.

While in the 2013-14, allocated margin subsidy money was not fully utilised, states spent more than allocated money in the next year of 2014-15 through the PMEGP. Again in 2015-16, some states were unable to spend the allocated money but in this current fiscal year, ministry is expecting to utilise whole allocated money.

“Any individual above 18 years of age is eligible. For setting up of projects costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business /service sector, the beneficiaries should possess educational qualification of at least VIII standard pass. Under PMEGP, general category beneficiaries can avail of margin money subsidy of 25% of the project cost in rural areas and 15% in urban areas.”, Singh informed to the Lok Sabha.