India Markets closed

Govt’s PMEGP created these many jobs in micro units in FY20 so far; supported these many enterprises

FE Online

Skilling, Labour, Talent for MSMEs: The MSME Ministry has assisted 34,873 micro-enterprises and created 2,78,984 jobs as on January 21, 2020, during the current fiscal year 2020 under the Prime Minister's Employment Generation Programme (PMEGP), according to the data shared by the MSME minister Nitin Gadkari in Rajya Sabha recently. The ministry has targeted to assist/set-up 74,276 micro-units and create 5,94,208 jobs in FY20. Divided into five zones, the South zone has created maximum jobs — 73,656 while minimum employment has been provided in the Northeast zone at 19,880. In terms of micro-units assisted, the South zone has topped the league with 9,207 micro enterprises being set-up while only 2,485 such businesses were set-up in Northeast zone.

PMEGP was launched in 2008 as a credit-linked subsidy programme aiming at generating self-employment opportunities by setting up micro-businesses in the non-farm sector. Till October last year, the programme had supported around 5.70 lakh micro-enterprises with margin money of Rs 12,902 crore and created around 47 lakh jobs, according to the government data. Under PMEGP, the maximum loan offered for setting up/assisting business in manufacturing is up to Rs 25 lakh and Rs 10 lakh in the service sector along with 15-35 per cent subsidy for various categories. According to the government's FY 19 MSME report, out of total 6.33 crore, MSMEs in India, 6.30 (99 per cent) are micro-units while only 3.31 lakh are medium enterprises and 0.05 lakh are medium businesses.

Also read: RBI's One-time Restructuring scheme a big move; already given relief to 5 lakh MSMEs' liquidity problem

While the number of jobs created in FY17 under PMEGP stood at 4.08 lakh, it reduced to 3.87 lakh in FY18 but again bounced back to 5.87 lakh in FY19 — nearly 52 per cent up from FY18 and 44 per cent from FY17. Among the leading states in job creation, Tamil Nadu created 25,568 followed by 23,504 jobs in Gujarat, 21,712 in Jammu and Kashmir, and 21,696 in Maharashtra. Tamil Nadu topped the list for setting up maximum micro-units at 3,071 followed by 2,938 in Gujarat, 2,714 in Jammu and Kashmir, and 2,712 in Maharashtra.