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KVIC Breaks All Previous Records to Create Highest Ever Employment under PMEGP in FY 2021-22

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KVIC Breaks All Previous Records to Create Highest Ever Employment under PMEGP in FY 2021-22

  • It’s been a year full of historic feats for Khadi and Village Industries Commission (KVIC) in executing the flagship Prime Minister’s Employment Generation Program (PMEGP).

Prime Minister Employment Generation Program (PMEGP)

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  • PMEGP is a central sector scheme administered by the Ministry of Micro, Small and Medium Enterprises (MoMSME).
  • It is a credit-linked subsidy scheme that promotes self-employment through the establishment of micro-enterprises, with the government providing a subsidy of up to 35 percent through the Ministry of MSME for loans of up to 25 lakhs in manufacturing and 10 lakhs in the service sector.
  • Implementation:
  • National Level- Khadi and Village Industries Commission (KVIC) as the nodal agency.
  • State Level- State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centers (DICs) and banks.

PMEGP’s feat

  • PMEGP has emerged as the government's most powerful tool of self-sustainability in the year 2021-22.
  • It set up an unprecedented 1.03 lakh new manufacturing and service units and creation of over 8.25 lakh jobs.
  • As compared to 2020-21, the number of units and employment created under PMEGP has gone up by 39% each, while the margin money distribution (subsidy) witnessed a jump of 36% in FY 2021-22.
  • The number of units set up under PMEGP since 2014-15 has increased by 114%, employment creation has gone up by 131% and the margin money distribution has seen a quantum jump of 165% in the year 2021-22.
  • KVIC has also begun geo-tagging of all PMEGP units so as to verify the actual physical status of the units and their performance at any point of time.
  • So far, more than 1 lakh PMEGP units have been geo-tagged.
  • This also enables any person to locate the PMEGP units using a mobile app.

Khadi and Village Industries Commission (KVIC)

The Khadi and Village Industries Commission (KVIC) is a statutory body established by an Act of Parliament (Khadi and Village Industries Commission Act of 1956).

  • In April 1957, it took over the work of the former All India Khadi and Village Industries Board.

KVIC Achievements

This is for the first time since the launch of the PMEGP Scheme that KVIC has established over one lakh new units in a financial year.

  • These 1,03,219 units have been established at a total capital of nearly Rs 12,000 crore out of which KVIC disbursed a margin money subsidy of Rs 2978 crore while the bank credit flow was nearly Rs 9,000 crore.
  • The margin money subsidy of Rs 2978 crore given by KVIC in the year 2021-22 is also the highest since 2008.
  • A whopping 8,25,752 new employment were created across the country, which is also the highest so far under PMEGP.
  • In 2016, KVIC introduced an online portal for PMEGP.
  • Before 2016, filing of applications was done manually and on an average only 70,000 applications were received annually.
  • With the online portal in place, an average of nearly 4 lakh applications are received every year.
  • The online system has brought in greater transparency.
  • PMEGP portal enables the applicants to track their applications without any human intervention.
  • The Ministry of MSME, based on the inputs provided by KVIC, removed the role of the District Level Task Force Committee in approving the PMEGP projects.
  • Also authorized state directors of KVIC for approval of projects and directly send it to the financing banks.
  • KVIC also reduced the timeframe for scrutinizing and forwarding the applications to the banks by its state directors from 90 days to just 26 days.

Conclusion

This big thrust to local manufacturing and self-employment in wake of the Covid-19 pandemic has done wonders.

  • A large number of youths, women and migrants were prompted to take up self-employment activities under PMEGP.
  • A slew of policy decisions taken by the Ministry of MSME and KVIC to expedite the execution of projects under PMEGP helped KVIC achieve its best ever performance.

Exam Track

Prelims Takeaway

  • Prime Minister Employment Generation Program (PMEGP)
  • Khadi and Village Industries Commission (KVIC)
  • District Industries Centers (DICs)

Mains Takeaway

Q. Critically analyse the implementation of the Prime Minister Employment Generation Program (PMEGP) at the ground level to generate employment.

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