CCEA approves continuation of Prime Minister's Employment Generation Programme

The Cabinet Committee on Economic Affairs (CCEA) has approved continuation of Prime Minister’s Employment Generation Programme (PMEGP) beyond 12th Plan for 3 years from 2017-18 to 2019-20
The scheme has been extended with total outlay of Rs. 5,500 crore to create sustainable estimated employment opportunities for 15 lakh persons in three financial years.

Key Facts

Targets under the continuation period has been fixed taking into account extent of backwardness of states, unemployment, fulfillment of previous year targets and population of States/UTs and availability of traditional skills and raw material.
Minimum target of 75 projects per district will be awarded to all districts across country to achieve Inclusive Growth. Higher rate of subsidy (25% to 35%) will be applicable for women, SC/ST, OBC, Physically Disabled, NER applicants in rural areas.
The entire process of application flow and fund flow right from receipt of application, processing, sanction by banks, transfer of margin money subsidy till creation of Term Deposit Receipt (TDR) in name of applicant will be online.

Background

PMEGP is major credit-linked subsidy programme being implemented by Ministry of MSME since 2008-09. It is aimed at generating self-employment opportunities through establishment of micro-enterprises in non-farm sector by helping traditional artisans and unemployed youth in rural as well as urban areas.
Khadi and Village Industries Commission (KVIC) is nodal implementation agency at national level. At State and district level, State offices of KVIC, Khadi and Village Industries Boards (KVIBs) and District Industry Centres (DIC) are the implementing agencies.

Month: Current Affairs - February, 2018