The government has fixed for creation of new employment opportunities for around 32 lakh unemployed youth in the 12th Five Year Plan under the Prime Minister's Employment Generation Programme, said Minister of State (Independent Charge), MSME, K.H. Muniyappa on Thursday.

"In the 12th Five Year Plan under PMEGP, an ambitious target of 4 lakh new micro enterprises has been fixed for creation of new employment opportunities for around 32 lakh persons mainly focusing on the unemployed youth throughout the country, with an outlay of Rs. 7,800 crores," Muniyappa said while speaking at a conference organized by CII in New Delhi.

He added that under PMEGP, the flagship employment generating programme of the Ministry since its inception in 2008-09, more than 2.10 lakh new entrepreneurs have been assisted so far upto 31st March, 2013, creating about 19.55 lakh employment opportunities across the country.

A total of Rs.3973.05 crore has been disbursed under the scheme.

The Minister also said that to ensure better flow of credit to MSEs by minimizing the risk perception of banks / financial institutions in lending without collateral security, the Government is implementing the Credit Guarantee Scheme.

The scheme provides guarantee cover of up to 85% on collateral-free credit facility extended by lending institutions to new and existing MSEs for loans up to Rs.100 lakh. Under this scheme, more than 11 lakh proposals have been approved till April 2013 providing guarantee cover for total sanctioned loan amount of Rs. 54,322 crore.