12 Dec 2013

Minister of MSME Holds Review Meeting on PMEGP with Nationalized Scheduled Banks

The Minister of State (Independent Charge) for Micro, Small and Medium Enterprises, Shri K. H. Muniyappa held a review meeting on Prime Minister’s Employment Generation Programme (PMEGP) with CMD’s of all the Public Sector Banks here today. 

The Minister highlighted the following key issues in the meeting and sought for full cooperation and commitment from the Bankers for addressing the issue of employment in the country specially for the large youth population in the country. 

The Minister said that since the inception of PMEGP in 2008-09, more than 2.21 lakh new entrepreneurs have been assisted as upto 31.03.2013 and created about 20.34 lakh employment opportunities across the country and released Margin Money Subsidy to the tune of Rs. 5037.00 crores under this scheme. 

The Minister congratulated the banks who have extended outstanding support in implementing the scheme successfully which led to set up large number of micro enterprises and provided employment opportunities in rural and urban area of the country and added that “during the previous years the targets have been achieved and exceeded successfully”. 

Explaining the success of the PMEGP Shri K H Muniyappa stated that “the 100% physical verification of PMEGP units has revealed that 82% of units that have been set up and are working successfully. The projects sanctioned are to the tune of 14966 projects involving margin money of Rs. 327.00 Crores. The proposals forwarded by District level Task Force Committee (DTFC) to Banks are encouraging and involve margin money subsidy of 1879.00 Crores he added. 

The Minister further said “if the banks sanction even 72% of the projects, which is the observed trend under PMEGP, a margin money of 1353.00 Crores will be utilized during the year, and targets will be achieved, therefore Shri K H Muniyappa requested the bankers to extend their proactive support and ensure sanction of pending proposals and settlement of pending claims at banks level so that the PMEGP targets for the year can be achieved.” 

The Minister highlighted that, under the PMEGP there are more than over 3 lakh applications were received of which 1 lakh have been recommended by DTFC to all banks. Of this, banks have received 81000 cases having subsidy value of about Rs. 1880 crore. Banks have sanctioned around 15000 applications and disbursed around 6000 cases. The Minister instructed all banks to achieve this year target of 1 lakh cases positively by 31st December, 2013. He also appealed to all banks to process the eligible cases of the balance applications without the subsidy component by covering them under collateral free Credit Guarantee Scheme of the Ministry. 

The Minister stated that he has been informed that the amount of Rs. 757.00 Crores of unspent funds towards margin money subsidy are already with the banks under PMEGP. 

Underlining the initiatives to strengthen the PMEGP scheme Shri K H Muniyappa said that to bring in transparency and accountability a system of e-tracking of PMEGP application has been made mandatory from 2013-14 onwards. Each applicant is provided a unique ID online through which he/ she can truck status of PMEGP applications at various stages and also know the reasons for rejection. 

Addressing the issue of availability of credit in a time bound manner, Shri K H Muniyppa underlined that ‘ to ensure that the applications are processed and sanctioned by bank in a time bound manner, the Ministry of MSMEhas issued directions to all the stakeholders for ensuring that within 100 days the application should be forwarded to DTFC, screened and submitted to bank, sanctioned by bank and loan should be disbursed along with release of margin money he added. 

For the year 2013-14, minimum 100 projects per District have been allocated under PMEGP scheme for generation of more employment opportunities for the unemployment’ youth and also self employment to the rural and urban people and Trading / Sales outlets have been included under PMEGP scheme for LWE Districts /NER/ Andaman & Nicobar Islands the Minister said. 

Further, to monitor the working of District Level Task Force and improve the quality of the implementation of the scheme at District Level an Advisory Committee has been constituted under the chairmanship of Member of Parliament, Lok Sabha elected from the District (having the largest part of the district under his/her parliamentary constituency) and District Magistrate/ Dy. Commissioner/ District Collector as a Member Convener Shri K H Muniyappa added. 

The Minister was confident enough, that the initiatives taken by his Ministry would definitely would improve the quality of the Implementation of PMEGP scheme and requested all the bankers to come forward and extend their support in clearing the pending proposals under PMEGP and ensured in achieving the targets for the current financial year. 

The Minister also expressed that all the banks should display on their notice board for general public for their eligibility of PMEGP and that no collateral security was needed under this programme. 

Present in the meeting were Shri Madhav Lal, Secretary, MSME, Shri Devendra Desai, Chairman, Khadi Village Industries Commission, CMD of United Bank of India and Executive Directors and General Managers of as many as 25 nationalized scheduled banks. 

All assured that, the pending applications with the banks will be sanctioned by 31st December and they will issue clear directions to field officers not to take any collateral security under PMEGP. 

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