Govt clears 'roadblock' to expedite PMEGP projects

The MSME ministry on Friday said it has done away with the role of District Level Task Force Committee headed bydistrict collectors in recommending the proposals under the Prime Minister Employment Generation Programme (PMEGP).

As per the amended guidelines, Khadi and Village Industries Commission (KVIC), the nodal agency for implementing the PMEGP scheme, after due diligence, will directly clear the proposals/ applications of the prospective entrepreneurs and will forward it to the banks for taking credit decisions, an official statement said.

As of now, the proposals were scrutinised by the District Level Task Force Committee (DLTFC), that often led to inordinate delays in sanctioning of the projects.

KVIC chairman Vinai Kumar Saxena said a major bottleneck has been removed with the discontinuation of the DLTFC in approving the projects under the PMEGP.

"The government's move has come at a time when the employment sector has taken a hit due to nationwide lockdown in the wake of the corona disease. The amendment in the policy would pave the way for swift implementation of projects and create new employment opportunities in rural and semi urban areas under the PMEGP scheme," said the statement issued by the Ministry of Micro, Small and Medium Enterprises (MSMEs).

It was noticed that the district collectors/magistrates heading the DLTFC were often preoccupied with local administrative issues and hence works pertaining to the approval of PMEGP applications were not on their priority at all, the statement said.

Proposals under the scheme remained pending for several months as the district collectors failed to convene monthly meetings on regular basis.

Under the PMEGP scheme, loans up to Rs 25 lakh are given for manufacturing and service industries, in which 15 to 35 per cent subsidy is provided by the KVIC depending upon the area.