156
S
tate
of
I
ndia
’
s
L
ivelihoods
R
eport
2015
KVIC implements two important
schemes for the sector. The Khadi Reform
and Development Programme has funding
support from the ADB and aims at position-
ing Khadi in consonance with the emerg-
ing market needs, expanding employment
for Khadi craftsmen and enhancing their
income levels. The PMEGP was initiated
in 2008–09 by merging Prime Ministers
Rozgar Yojana and Rural Employment
Generation Progamme. The objective of the
PMEGP is to provide sustainable employ-
ment to youth through self-employment
and enterprise creation through rural
industrialisation (Box 7.4). PMEGP pro-
vides margin money assistance, facilitates
banks loans, provides entrepreneurship
training and other support relating to
technology and marketing. More than 450
model projects have been prepared and
made available to prospective applicants.
EDP training had also been arranged for
38,000 people during the last year. Under
PMEGP so far 290,000 enterprises have
been set up providing cumulative employ-
ment to 2.55 million persons. The provision
of margin money and the eligibility for
interest subsidy on bank loan have been the
major instruments used by KVIC, KVIB and
the District Industries Centres in PMEGP.
The PMEGP appears to be doing well in
terms of enterprise creation and employment
(Table 7.12). The reasons for the reduced
number of enterprises created in 2014–15
is not clear. KVIC had also arranged for
Janashree Bima Yojana, a life insurance cover
for 0.28million people fromamong its units.
During the year 2013–14 KVIC received an
allocation of
`
16.14 billion of which it had
utilised
`
14.31 billion. The employment and
enterprise creation performance in terms of
numbers is noteworthy.
Other non-farm sector
activities
The government’s efforts towards improv-
ing and strengthening livelihoods outside
the farm sector have been to ensure flow
Table 7.12:
PMEGP performance
Aspect
2013–14 2014–15
Number of projects (no)
50,493
18,141
Margin money provided
(Rupees billion)
10.76
4.28
Production (Rupees billion)
64.59
NA
Sales
80.73
NA
Employment (millions)
0.38
0.14
Source:
website of KVIC -
Objective
•
To generate continuous and sustainable
employment opportunities in rural and
urban areas of the country.
•
To provide continuous and sustainable
employment to a large segment of tradi-
tional and prospective artisans, rural and
urban unemployed youth in the country
through setting up of micro enterprises.
•
To facilitate participation of financial
institutions for higher credit flow to micro
sector.
Features
•
The Scheme is implemented through KVIC
and State/UT KVIBs in rural areas and
throughDistrict Industries Centres in urban
and rural areas in ratio of 30:30:40 between
KVIC/KVIB/DIC respectively.
•
No income ceiling for setting up of projects.
•
Assistance under the Scheme is available
only to new units to be established.
•
Existing units or units who have already
availed any govt subsidy either under state/
central govt schemes are not eligible.
•
Any industry including Coir based projects
excluding thosementioned in thenegative list.
•
Per capita investment should not exceed
`
1
lakh in plain areas and
`
1.5 lakhs in hilly
areas.
•
Maximum project cost of
`
25 lakhs in
manufacturing sector and
`
10 lakhs in
service sector.
Source:
Box 7.4:
PMEGP: An outline
