GOVERNMENT OF MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

LOK SABHA UNSTARRED QUESTION NO. 2452 TO BE ANSWERED ON 31.07.2017

EVALUATION OF PMEGP

2452. DR. SATYAPAL SINGH: SHRI BAIJAYANT JAY PANDA: SHRI : SHRI SANJAY DHOTRE:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state: (a) whether the Government has conducted any evaluation study of the Prime Minister’s Employment Generation Programme (PMEGP) during each of the last three years and the current year, if so, the details and outcome thereof and if not, the reasons therefor; (b) the number of units set up in manufacturing and business/service sector separately from the funds provided to the beneficiaries and number of employments generated therefrom under the said programme during the said period, State/UT-wise; (c) whether the cases of irregularities/ corruption in implementation of the said programme have been reported/come to the notice of the Government during the said period and if so, the details thereof and the reasons therefor along with the present status of such cases, State/UT-wise; and (d) the corrective steps taken/being taken by the Government for effective implementation of the said programme and the achievements made so far in this regard?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI GIRIRAJ SINGH)

(a): An agreement has been signed by the Ministry of MSME with the Management Development Institute (MDI), Gurugram on 30th December,2016, to conduct the evaluation study of the PMEGP Scheme. MDI, Gurugram has submitted its preliminary evaluation study report. The key observations of the evaluation study are:  Average Employment Per Project - 7.66  Average Cost of Generating Unit Employment - Rs.94,856.89  Maximum Cost of Generating Unit Employment - Rs.2,65,412.84 ( Nagaland)  Minimum cost of Generating Unit Employment - Rs.25,070.95 (Tamil Nadu)  Average Cost per Project - Rs.7,26,759.5  Most of the DLTFC meeting are held in third and fourth quarter  In most cases, the loan sanction is delayed beyond the given limit of 30 days after the recommended application reaches the bank.  Time taken to sanction loan is more for manufacturing sector than for the services sector.

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 Himachal Pradesh is the state where bankers do not ask for collateral but in rest of the states collateral has been demanded for over 30% of the cases.  In , for 100% of the cases, Collateral was demanded by banks.  Delhi and Himachal Pradesh have reported for invoking of CGT-MSE by banks in 70-100% cases. In the rest of the states, 50% cases have been found with CGT-MSE coverage.  Usually, Projects become NPA within first three years or early stages. It is often not noticed by stakeholders.

(b): The number of units set up in manufacturing and business/service sector and number of employments generated therefrom under PMEGP during the last three years, State/UT-wise is given in Annexure-I.

(c): Khadi and Village Industry Commission (KVIC) is national level Nodal Agency to implement PMEGP scheme all over the country. An online grievance handling system for PMEGP has been set up by the KVIC to provide prompt and online redressel. The complaints are received by KVIC regarding non-payment of loan by banks, delay in sanctioning of loan and other related matters under PMEGP from various States. The complaints are redressed by KVIC and its State Offices.

(d): Following initiatives have been taken for effective implementation of PMEGP Scheme:

 In order to streamline the process of application flow and fund flow and to bring in transparency and better financial management and to prevent parking of funds at Nodal bank level an online PMEGP-MIS web portal has been introduced. All applications and fund flow will be processed online in stipulated time frame.  Publicity is being made through print and electronic media, awareness camps at District level and State level are being organized in order to propagate the PMEGP scheme for the development of micro industries.  Exhibitions are also conducted at district/state/zone and national level for providing marketing support to the entrepreneurs/units.  For speedy completion of EDP training, these are being conducted through Departmental Training Centres as well as RSETIs/RUDSETIs as per MOU executed between KVIC & MCR.  Industries such as Khadi, processing of Pashmina Wool, handloom and power loom units, value added products for tea, coffee, rubber etc. and transport activities are now eligible for funding under PMEGP.  Implementing Agencies are instructed to encourage and provide necessary assistance to the beneficiaries for filing online application by setting up of help desks.

As a result of these initiatives during the Financial Year 2016-17, PMEGP has achieved maximum Margin Money disbursement of Rs.1280.93 crore (maximum since inception in 2008-09) assisting 52912 micro enterprises generating estimated employment for 4,07,840 persons.

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Annexure-I

Annexure I referred to in reply to part (b) of the Unstarred Question No. 2452 for answer on 31.07.2017

State-wise and manufacturing and service sector -wise performance under PMEGP during 2014-15 2014-15 No of Project MM disbursed Employment Sr. State/UT No. Manufa Service/ Manufac Service/ Manufa Service/ Total Total Total cturing Textile turing Textile cturing Textile

Jammu & 1 524 1041 1565 1477.48 1797.15 3274.63 3835 7190 11025 Kashmir Himachal 2 534 710 1244 1204.73 1033 2237.73 3292 3060 6352 Pradesh 3 Punjab 559 594 1153 2535.57 655.31 3190.88 4655 1783 6438 U.T. 4 12 24 36 37.31 24.15 61.46 90 70 160 Chandigarh 5 Haryana 673 502 1175 2204.29 808.69 3012.98 4991 2033 7024 6 Delhi 47 151 198 52.59 136.65 189.24 376 1208 1584 7 Rajasthan 1074 902 1976 4213.06 1036.56 5249.62 12234 2768 15002 8 Uttarakhand 623 710 1333 1251.63 901.69 2153.32 4000 3889 7889 9 Uttar Pradesh 3415 1476 4891 13703.6 3233.89 16937.53 31923 16681 48604 10 Chattisgarh 347 500 847 1389.16 656.52 2045.68 3702 2119 5821 Madhya 11 1479 1258 2737 6804.89 2436.81 9241.7 13007 8889 21896 Pradesh 12 Sikkim 14 2 16 33.31 0.21 33.52 38 16 54 Arunachal 13 260 392 652 339.02 665.97 1004.99 901 1970 2871 Pradesh 14 Nagaland 266 150 416 639.23 239.36 878.59 1617 790 2407 15 Manipur 399 348 747 968.81 631.95 1600.76 660 169 829 16 Mizoram 292 525 817 332.82 475.16 807.98 2368 4368 6736 17 Tripura 345 442 787 667.61 666.04 1333.65 2429 3904 6333 18 Meghalaya 262 293 555 697.22 273.92 971.14 1308 2372 3680 19 Assam 2230 2785 5015 2334.89 3062.12 5397.01 6418 9117 15535 20 Bihar 1408 231 1639 3267.76 843.56 4111.32 7740 1500 9240 21 West Bengal 2072 1325 3397 3928.41 2081.7 6010.11 13878 10768 24646 22 Jharkhand 843 856 1699 1642.58 1228.71 2871.29 4471 4024 8495 23 Odisha 1016 997 2013 2582.18 1363.71 3945.89 6050 4161 10211 24 A & N Islands 25 136 161 18.17 74.15 92.32 89 701 790 25 Gujarat 472 817 1289 2501.07 3699.45 6200.52 7006 11101 18107 26 1617 1852 3469 5027.66 2816.15 7843.81 16870 11441 28311 27 Goa 12 66 78 39.76 102 141.76 81 325 406 Andhra 28 585 352 937 2602.77 889.34 3492.11 9082 3138 12220 Pradesh 29 Telangana 292 312 604 1241.48 647.87 1889.35 4350 2254 6604 30 Karnataka 1589 842 2431 5002.28 1476.82 6479.1 15401 6424 21825 31 Lakshadweep 18 13 31 24.51 4.1 28.61 61 32 93 32 Kerala 724 620 1344 1795.1 884.18 2679.28 6014 3724 9738 33 Tamilnadu 1663 1195 2858 5058.74 1675.15 6733.89 27103 9087 36190 34 Puducherry 29 29 58 81.4 30.7 112.1 232 154 386 GRAND 35750 25720 22448 48168 75701.1 36552.7 112253.9 216272 141230 TOTAL 2

State-wise and manufacturing and service sector -wise performance under PMEGP during 2015-16

2015-16 No of Project MM disbursed Employment Sr. State/UT Service No. Manufa Manufact Service/ Manufa Service/ / Total Total Total cturing uring Textile cturing Textile Textile Jammu & 1 526 1681 2207 1254.06 2527.13 3781.19 2978 9137 12115 Kashmir Himachal 2 355 722 1077 784.34 982.92 1767.26 2164 2970 5134 Pradesh 3 Punjab 496 470 966 2268.69 634.28 2902.97 5513 2249 7762 U.T. 4 17 26 43 45.16 42.56 87.72 164 159 323 Chandigarh 5 Haryana 632 616 1248 2186.28 925.81 3112.09 4744 2488 7232 6 Delhi 51 205 256 69.54 184.51 254.05 408 1640 2048 7 Rajasthan 1075 913 1988 3319.17 1064.9 4384.07 9522 5015 14537 8 Uttarakhand 620 516 1136 1116.18 624.68 1740.86 3674 2487 6161 9 Uttar Pradesh 3169 1196 4365 11231.3 3225.62 14456.87 31508 11551 43059 10 Chattisgarh 501 776 1277 1859.57 969.82 2829.39 5173 4323 9496 Madhya 11 1529 450 1979 6830 1287.17 8117.17 12670 3827 16497 Pradesh 12 Sikkim 19 91 110 68.88 117.23 186.11 134 263 397 Arunachal 13 12 23 35 19.96 18.89 38.85 52 52 104 Pradesh 14 Nagaland 337 286 623 853.78 539.03 1392.81 2699 2299 4998 15 Manipur 318 367 685 665.68 548.3 1213.98 1969 746 2715 16 Mizoram 344 790 1134 373.69 652.66 1026.35 2754 6318 9072 17 Tripura 266 376 642 460.17 485.67 945.84 1800 3555 5355 18 Meghalaya 321 282 603 753.19 302.93 1056.12 3271 1553 4824 19 Assam 1512 1971 3483 1374.71 1495.03 2869.74 4547 4479 9026 20 Bihar 2038 392 2430 5523.39 1065.16 6588.55 16485 3139 19624 21 West Bengal 1039 834 1873 2127.82 1272.83 3400.65 8016 4730 12746 22 Jharkhand 1008 831 1839 2128.91 1430.83 3559.74 7350 5523 12873 23 Odisha 1364 1512 2876 3592.6 2143.72 5736.32 8879 8750 17629 24 A & N Islands 13 106 119 9.02 56.09 65.11 41 252 293 25 Gujarat 661 758 1419 3353.51 2986.22 6339.73 8095 6865 14960 26 Maharashtra 1025 1318 2343 3456.94 1828.09 5285.03 8115 12046 20161 27 Goa 15 76 91 56.77 108.66 165.43 172 328 500 Andhra 28 377 265 642 1695.99 566.38 2262.37 5765 1975 7740 Pradesh 29 Telangana 317 343 660 1317.44 900.13 2217.57 4576 3185 7761 30 Karnataka 1006 1134 2140 3682.43 2215.58 5898.01 9483 7801 17284 31 Lakshadweep 0 0 0 0 0 0 0 0 0 32 Kerala 630 739 1369 1734.69 985.79 2720.48 5745 3908 9653 33 Tamilnadu 1341 1122 2463 3771.7 1725.84 5497.54 14157 6679 20836 34 Puducherry 30 35 65 66.12 40.25 106.37 280 167 447 TOTAL 23118 21222 44340 68051.6 33954.7 102006.3 192903 130459 323362

State-wise and manufacturing and service sector -wise performance under PMEGP during 2016-17 (Provisional) No of Project MM disbursed Employment S. Name of Manufa Service/ Manufact Service/ Manufa Service/ No. State/UT Total Total Total cturing Textile uring Textile cturing Textile Jammu & 1 Kashmir 428 1064 1492 1026.08 1595.32 2621.4 3470 8221 11691 Himachal 2 Pradesh 357 584 941 1073.17 1112.10 2185.27 3250 3666 6916 3 Punjab 632 634 1266 2507.32 674.28 3181.6 7065 2793 9858 U.T. 4 Chandigarh 17 30 47 46.47 36.37 82.84 201 175 376 5 Haryana 743 634 1377 2426.18 957.35 3383.53 7527 3489 11016 6 Delhi 26 93 119 50.31 132.10 182.41 208 744 952 7 Rajasthan 948 801 1749 3619.62 1021.98 4641.6 9858 3550 13408 8 Uttarakhand 681 664 1345 1297.19 825.14 2122.33 5456 4434 9890 9 Uttar Pradesh 2901 1173 4074 11316.58 2954.47 14271.05 25212 11103 36315 10 Chattisgarh 641 957 1598 2719.87 1350.86 4070.73 7590 5266 12856 Madhya 11 Pradesh 1274 666 1940 6584.00 1762.06 8346.06 10570 4950 15520 12 Sikkim 14 13 27 24.50 11.43 35.93 105 96 201 Arunachal 13 Pradesh 112 189 301 187.39 252.95 440.34 807 1177 1984 14 Nagaland 601 417 1018 1345.57 661.91 2007.48 4716 3067 7783 15 Manipur 631 634 1265 1247.45 915.33 2162.78 6404 2015 8419 16 Mizoram 140 285 425 190.88 301.08 491.96 1114 2286 3400 17 Tripura 979 1318 2297 1843.26 1891.40 3734.66 6463 11498 17961 18 Meghalaya 165 164 329 291.87 116.02 407.89 1360 1272 2632 19 Assam 2649 3379 6028 2238.30 2672.06 4910.36 14440 17058 31498 20 Bihar 2745 489 3234 6807.39 1529.12 8336.51 21703 4169 25872 21 West Bengal 2054 1474 3528 4010.95 2259.37 6270.32 15856 10748 26604 22 Jharkhand 679 621 1300 1552.96 1101.39 2654.35 5706 4694 10400 23 Odisha 1483 1546 3029 4385.69 2463.27 6848.96 11176 9216 20392 24 A & N Islands 26 169 195 32.44 161.02 193.46 177 1221 1398 25 Gujarat 577 809 1386 3524.97 4036.64 7561.61 5396 6233 11629 26 Maharashtra 1050 1275 2325 3886.10 2115.26 6001.36 8885 8914 17799 27 Goa 14 76 90 59.69 131.75 191.44 179 481 660 Andhra 28 Pradesh 822 535 1357 3674.72 1241.36 4916.08 10526 3622 14148 29 Telangana 320 344 664 1602.59 959.13 2561.72 4023 2422 6445 30 Karnataka 2009 1566 3575 8105.88 3503.68 11609.56 18994 11292 30286 31 Lakshadweep 0 0 0 0.00 0.00 0 0 0 0 32 Kerala 791 793 1584 2190.73 1159.95 3350.68 7924 5144 13068 33 Tamilnadu 1656 1285 2941 5902.96 2310.96 8213.92 18400 7364 25764 34 Puducherry 32 34 66 69.85 33.80 103.65 429 270 699 TOTAL 27920 24992 52912 85919.32 42174.52 128093.8 245011 162829 407840