New Delhi: The government has released Rs 1,276 crore in the current fiscal to support 53,826 projects which are expected to generate about 4.31 lakhs jobs, Minister of Micro, Small and Medium Enterprises (MSME) K H Muniyappa said on Wednesday.
"During 2012-13, an amount of Rs 1,276 crore for 53,826 projects has been released which are likely to generate jobs for around 4.31 lakh," he said on the occasion of the inauguration of Techmart at the India International Trade Fair (IITF) 2012 here.
He said an outlay of Rs 9,700 crore had been proposed for the Prime Minister's Employment Generation Programme (PMEGP) in the XII Five-Year Plan to set up 4 lakh projects at the cost of (at Rs 23 lakh margin money per project) with creation of 32 lakh employment.
Under the PMEGP, urban and rural entrepreneurs in the general category can avail a subsidy of 15 percent and 25 percent on the project cost. In the case of weaker sections of society, a 25 percent and 35 percent subsidy is provided to urban and rural businessmen.
The scheme is aimed at generating employment through setting up of micro enterprises, including rural industrial units.
Further, the minister asked the Khadi Village Industries Commission to explore further avenues for development of village and cottage industries.
The Khadi and Village Industries Commission, the nodal agency to implement the PMEGP, assigns targets to its field officers and the khadi and village industries boards of various states.
Meanwhile, the Muniyappa also inaugurated the MSME Expo-2012 showcasing a wide variety of products and the Coir Pavillion at the fair.
The MSME sector contributes to about 45 percent of the total manufactured output and nearly 40 percent to India's exports. There are about 26 million MSMEs in the country, providing employment to more than 60 million people.