Ease of Doing Business for MSMEs: The authorities on Monday introduced the extension of its scheme for employment technology Prime Minister’s Employment Generation Programme (PMEGP) over the fifteenth Finance Commission Cycle from 2021-22 to 2025-26 with an outlay of Rs 13,554.42 crore. In addition, a number of modifications have additionally been made to the scheme together with growing the utmost monetary help supplied from present Rs 25 lakh to Rs 50 lakh to entrepreneurs for organising new manufacturing models and from present Rs 10 lakh to Rs 20 lakh for brand spanking new service models.
Launched in 2008-09, the scheme has supported round 7.8 lakh micro enterprises with a subsidy of Rs 19,995 crore to create employment for round 64 lakh folks, the MSME Ministry stated in an announcement. Around 80 per cent of the models assisted below PMEGP are in rural areas and about 50 per cent models are owned by scheduled caste, scheduled tribe and ladies entrepreneurs. Khadi and Village Industries Commission (KVIC) is the nationwide nodal company of the scheme.
The scheme additionally modified its definition of village business and rural space to incorporate areas falling Panchayati Raj establishments to be accounted below rural areas and areas below municipality to be recognised as city areas. Moreover, all implementing companies together with state and district degree state places of work of KVIC, state KVIBs and district industries centres have been allowed to obtain and course of functions in all areas no matter the agricultural or city class.
However, MSME knowledgeable believed the scheme has an extended technique to go to make an even bigger impression. “While the initiative is good but if in 13 years only around 8 lakh micro enterprises were created, out of around 6 crore micro enterprises in India, by spending nearly Rs 20,000 crore, it doesn’t look like a great track record. Also, 64 lakh employment in 13 years out of 11 crore people employed in the MSME sector is not a very attractive record. Government has to focus on the micro segment with better technology and marketing support. Only financial support is not enough. Awareness about the scheme is another challenge,” Rajan Raje, Chair, MSME Forum, Bombay Chamber of Commerce & Industry advised Financial Express Online.
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The authorities stated the extension will create sustainable estimated employment alternatives for about 40 lakh folks in 5 monetary years. The margin cash subsidy to be given to potential entrepreneurs can be 25 per cent of the undertaking price in city areas and 35 per cent in rural areas for particular class candidates together with SC, ST, OBC, ladies, transgender, bodily disabled, north-eastern area, aspirational and border district candidates, in response to the rules. For General class candidates, 15 per cent subsidy of the undertaking price can be supplied in city areas and 25 per cent in rural areas.
Meanwhile, the variety of jobs generated below the scheme by way of new enterprises arrange had hit a report excessive of 8,25,752 in FY22, the Ministry had stated in April this yr. Also, the variety of enterprises arrange through the yr jumped over 1 lakh to 1,03,219 for the primary time prior to now 14 years. The progress in models set-up and employment created below PMEGP in FY22 was up by 39 per cent every from FY21, whereas the margin cash distribution (subsidy) had jumped 36 per cent.
Source: www.financialexpress.com”