KVIC creates a new record under PMEGP; enables more than 1 lakh new micro units in FY22

New Delhi: The number of employment opportunities produced by micro enterprises established under the Prime Minister's Employment Generation Programme (PMEGP) has reached a new high of 8,25,752 in FY22, according to the MSME Ministry. In addition, for the first time in 14 years, the number of companies established during the year surpassed 1 lakh, reaching 1,03,219 for the first time. 

The new units were established with a total capital of about Rs 12,000 crore, of which the Khadi & Village Industries Commission (KVIC) disbursed Rs 2,978 crore in margin money subsidies, the largest since 2008, and bank credit flow provided the remaining approximately Rs 9,000 crore.

The number of new units established and jobs produced under the PMEGP increased by 39% in FY22 compared to FY21, while the margin money distribution (subsidy) increased by 36%.

“PMEGP has emerged as the government's most powerful tool of self-sustainability in the year 2021-22, even as the country was under partial lockdown for the first three months of the year during the second wave of Covid-19 pandemic,” the ministry said. 

Furthermore, since FY15, when the Bharatiya Janata Party was elected to power and Narendra Modi was sworn in as Prime Minister of India, the number of new PMEGP units established had climbed by 114%, while employment creation has increased by 131% in FY22. The margin money distribution increased by 165%.

“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. Further, 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,” said KVIC Chairman Shri Vinai Kumar Saxena. 

PMEGP provides maximum financial assistance of Rs 25 lakh for establishing new manufacturing units and Rs 10 lakh for setting up new service units to foster entrepreneurship and generate jobs. The scheme permits anyone over the age of 18 and with at least an VIII grade pass to apply for assistance. Self-help groups, production co-operative societies, charitable trusts, and so on are also eligible; however, existing units under other government schemes such as the Pradhan Mantri Rozgar Yojana, Rural Employment Generation Programme, and so on, as well as units that have already benefited from government subsidies under any other scheme, are not eligible for PMEGP.