Government expects job creation to improve under PMEGP

New Delhi: Government expects job creation under Prime Minister's Employment Generation Programme (PMEGP) "to improve" in the coming days, notwithstanding the consistent decline witnessed in the number of jobs created under the scheme since 2012-13.

According to provisional estimates, between March and October 2016, employment was generated for 1,87,000 persons under the PMEGP against the target of 4,25,000 jobs for the current fiscal.

However, Union Minister Kalraj Mishra expects employment generation under the PMEGP "to improve" on the back of initiatives taken by the MSME Ministry, like introduction of online application registration.

According to official estimates, employment generation under the PMEGP has declined consistently after 2012-13. While 4,28,246 jobs were generated in 2012-13 under the scheme, in 2013-14 the number fell to 3,78,907 and further dipped to 3,57,502 in 2014-15.

In 2015-16, the jobs creation stood at around 3,23,000, whereas according to provisional estimates, between March and October 2016, employment was generated for 1,87,000 persons.

"Under PMEGP, a sum of Rs 1,139 crore will be utilised during 2016-17 to assist 55,000 projects with margin money. This will generate employment for more than 4,25,000 persons," Mishra had said earlier.

The government has implemented PMEGP in 2008 by merging two schemes in operation namely Prime Minister's Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP), with Khadi and Village Industries Commission (KVIC) as the nodal agency.

Micro-enterprises have been set up in the non-farm sector to felicitate the process even further. The General Category beneficiaries under the scheme 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 Scheduled Castes, Scheduled Tribes, OBCs, minorities, women, ex-servicemen and physically handicapped, the margin money subsidy is 35 percent in rural areas and 25 percent in urban area.

Mishra said the Budget allocation for PMEGP was also "less" last time around and banks were being monitored for its proper implementation so that more jobs can be created.