Rs. 123800 lakh allocated for MSMEs under PMEGP

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SME Times News Bureau | 14 Aug, 2012
In the current fiscal (FY12-13) Rs. 123800 lakh has been allocated for micro small and medium enterprises (MSMEs) under the Prime Minister's Employment Generation Programme (PMEGP), informed Vayalar Ravi, Union Minister for Overseas Indian Affairs looking after the Parliamentary work of the Ministry of MSME.

"A total sum of Rs. 123800 lakh for FY12-13 has been allocated for MSMEs under the scheme. And upto 31 July, 2012, out of that Rs. 63014.29 lakh has been released to 1264 units (provisional)," informed the minister in a written reply to a question in the Rajya Sabha on Monday.

He also said that in the last fiscal (FY 2011-12), 54841 MSMEs, across the nation, get financial assistance under the scheme. Ravi said, "A total sum of Rs. 101022.92 lakh were released to the 54841 beneficiaries who have been provided margin money assistance under PMEGP in the financial year 2011-12."

According to the statement, PMEGP is a credit-linked subsidy programme to provide margin money assistance to beneficiaries in setting up micro- enterprises in the non-farm sector.

General category beneficiaries can avail of margin money subsidy of 25 percent of the project cost in rural areas and 15 percent in urban areas.

For beneficiaries belonging to special categories such as scheduled caste/scheduled tribe /women, the margin money subsidy is 35 percent in rural areas and 25 percent in urban areas.

The beneficiary's own contribution is 10 percent in general category and 5 percent in special categories. Rest of the cost of the project is made available in the form of loan from Banks.

Accordingly, in rural areas the amount of bank loan is 65 percent of the project cost for general category beneficiaries and 60 percent of the project cost for special category beneficiaries and in urban areas it is 75 percent for general category beneficiaries and 70 percent for special category beneficiaries.

The maximum cost of projects is Rs. 25 lakh in the manufacturing sector and Rs. 10 lakh in the service sector, it said.