31 May 2012

Schemes for Development of Rural Industries

The Ministry of MSME is implementing a credit-linked subsidy programme named Prime Minister’s Employment Generation Programme (PMEGP) since 2008-09 all over the country, including in drought, flood, cyclone, storms and tsunami affected areas. Under PMEGP, margin money subsidy and entrepreneurship training is provided to beneficiaries for setting up of micro-enterprises in the non-farm sector. The scheme is implemented through field offices of Khadi and Village Industries Commission (KVIC), State Khadi and Village Industries Boards (KVIBs) and District Industries Centres (DICs) with the involvement of Banks. General category beneficiary can avail of margin money subsidy of 25% of the project cost in rural areas and 15% in urban areas. For beneficiaries belonging to special categories such as scheduled castes, scheduled tribes, OBC, minorities, women, ex-servicemen, physically handicapped, beneficiaries belonging to NER, hill and border areas, etc., the margin money subsidy is 35% in rural areas and 25% in urban areas. The maximum cost of project is Rs. 25 lakh in the manufacturing sector and Rs.10 lakh in the service sector. 

This information was given by the Union Cabinet Minister for Micro, Small and Medium Enterprises, Shri Virbhadra Singh in a written reply to a question in the Rajya Sabha

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