MSME ministry for promoting rural industries, creating jobs

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SME Times News Bureau | 26 Apr, 2016
MSME Ministry implementing various schemes for promoting rural industries and for creating jobs, Minister of State, Micro, Small and Medium Enterprises (MSMEs), Giriraj Singh said in a written reply to a question in Lok Sabha on Monday.

He said, "3,45,024 job seekers and 2933 employers have registered on the portal namely "Employment Exchange for Industries" as on 18th April 2016. Presently, the main objective of the portal is to facilitate matchmaking between job seekers and employers for their mutual benefits. Very few employers have notified their vacancies on the portal at present."

Mainly the employers belonging to manufacturing sector are using the information available on the portal. However, the employers from service sector can also use the portal.

"With the launch of National Career Service (NCS) by Ministry of Labour & Employment, there is a need for convergence of job portal for MSME (Employment Exchange for Industries) with the National Career Service."

He said, "The Ministry of MSME through Khadi and Village Industries Commission (KVIC) and Coir Board is implementing various schemes to promote cottage and agro-based rural industries."

Prime Minister's Employment Generation Programme (PMEGP) is a credit linked subsidy scheme for setting up of new micro-enterprises and to generate employment opportunities in rural as well as urban areas of the country through KVIC, State Khadi & Village Industries Board (KVIB) and District Industries Centre (DIC).

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 SC/ST/Women/ PH/Minorities/Ex-Servicemen/NER, the margin money subsidy is 35 percent in rural areas and 25 percent in urban areas. The maximum cost of projects is Rs.25 lakh in the manufacturing sector and Rs.10 lakh in the service sector.

Scheme of Fund for Regeneration of Traditional Industries (SFURTI) was launched in 2005-06 for making Traditional Industries more productive and competitive by organizing the Traditional Industries and artisans into clusters.

A Scheme for Promoting Innovation, Rural Industry and Entrepreneurship (ASPIRE) was launched on 18.3.2015 to promote Innovation & Rural Entrepreneurship through rural Livelihood Business Incubator (LBI), Technology Business Incubator (TBI) and Fund of Funds for start-up creation.

Market Promotion Development Assistance (MPDA) – MDA scheme of KVIC has been modified as MPDA scheme formulated as a unified scheme by merging different schemes/sub-schemes/components of different Heads implemented in the 11th Plan, namely, Market Development Assistance, Publicity, Marketing and Market Promotion.

A new component of Infrastructure namely setting up of Marketing Complexes /Khadi Plazas has been added to expand the marketing net worth of Khadi & VI products. Under the erstwhile MDA scheme financial assistance was distributed amongst Producing Institutions (30 percent), Selling Institutions (45 percent) and Artisans (25 percent). Under the modified MPDA scheme financial assistance is distributed amongst Producing Institutions (20 percent), Selling Institutions (40 percent) and Artisans (40 percent). This will lead to increase in the earnings of artisans.

Interest Subsidy Eligibility Certificate (ISEC) Scheme provides credit at concessional rate of interest through Banks as per the requirement of the Khadi institutions. The institutions are required to pay interest of only 4 percent, any interest charged by banks over 4 percent will be paid by Central Government through KVIC.

Workshed Scheme for Khadi Artisans was introduced in 2008-09 to provide financial assistance for construction of workshed to khadi artisans belonging to BPL category through the khadi institutions with which the khadi artisans are associated. This empowers khadi spinners and weavers to chart out a sustainable path for growth, income generation and better work environment.

Strengthening infrastructure of weak Khadi institutions and assistance for marketing infrastructure: This scheme provides need-based support towards the Khadi sector for nursing the sick/problematic institutions elevated from "D" to "C" category as well as those whose production, sales and employment have been declining while they have potential to attain normalacy and to support creation of marketing infrastructure in other identified outlets. Under this scheme, financial assistance is provided to existing weak Khadi institutions for strengthening of their infrastructure and for renovation of selected khadi sales outlets.

Coir Udyami Yojana (formerly known as REMOT Scheme) is a credit linked subsidy scheme, which provides assistance for setting up of coir units with a maximum cost of project upto Rs.10 lakhs plus working capital, which shall not exceed 25 percent of the project cost. The pattern of assistance is 40 percent as Govt. subsidy, 55 percent as loan from Banks and 5 percent as beneficiary contribution. Scheme is open to all individuals, companies, SHGs, NGOs, Institutes, etc.

Mahila Coir Yojana (a component of Coir Vikas Yojana-CVY) is an exclusive skill development programme for rural women artisans in coir sector. Training is provided in spinning of coir yarn/various coir processing activities. The scheme envisages distribution of motorized ratts/motorized traditional ratts and other coir processing equipments at 75 percent subsidy subject to a maximum amount of Rs.7500/- on successful completion of the training programme. During the training period, the women artisans are given a stipend amounting to Rs.1000/- per month. Coir Vikas Yojana also includes Skill Development & Training Programme in coir sector, Domestic & Export Market Promotion and Development of Production Infrastructure.

Coir S&T Scheme promotes scientific, technological and economic research and development activities, developing new products & designs, marketing of coir and coir products in India and abroad. It also promotes co-operative organisations among producers and manufacturers of coir sector. Two research institutes viz. Central Coir Research Institute (CCRI), Alleppey, and Central Institute of Coir Technology (CICT), Bengaluru are undertaking research activities on different aspects of coir industry.