Revealing the plans of his Ministry for financial year 2016-17, Union MSME Minister Kalraj Mishra in a press conference held in New Delhi on March 08, 2016 said that Rs. 1,139 crore has been allocated under the Prime Minister’s Employment Generation Programme (PMEGP). This is expected to generate employment for more than 4,25,000 people.
In the Union Budget, Rs. 3000 crore has been allocated to the Micro, Small and Medium Enterprises (MSME) Ministry. The utililisation of the allocation under PMEGP will assist 55 thousand projects with Margin Money.
PMEGP is a credit-linked subsidy programme of the Ministry of MSME for creation of employment in both rural and urban area of the country. The scheme aims at:
- Generation of continuous and sustainable employment opportunities in Rural and Urban areas of the country
- Providing 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.
- Facilitating participation of financial institutions for higher credit flow to micro sector.
The Scheme is implemented through KVIC and State/UT Khadi & V.I. Boards in Rural areas and through District Industries Centres in Urban and Rural areas in ratio of 30:30:40 between KVIC / KVIB / DIC respectively. Assistance under the Scheme is available only to new units to be established.