KVIC revises guidelines to expedite PMEGP projects

A day after Prime Minister Narendra Modi appealed for encouraging local products, KVIC on Wednesday said it has issued guidelines to expedite implementation of projects under the Prime Minister's Employment Generation Programme (PMEGP).

KVIC Chairman Vinai Kumar Saxena instructed concerned agencies to scrutinize applications under PMEGP and forward it to banks for disbursal of funds within 26 days, a statement said.

He also instructed to reduce this time frame to 15 days.

PMEGP is a credit-linked subsidy programme aimed at generating self-employment opportunities through establishment of micro-enterprises in the non-farm sector by helping traditional artisans and unemployed youth.

The scheme is being implemented by Khadi and Village Industries Commission (KVIC), State Khadi and Village Industries Board and District Industries Centres.

"It will be mandatory for implementing agencies to guide and hand-hold the applicants for formulation of proposals and assist them till sanction of loan. All agencies will follow-up with banks for early sanction of loans," KVIC said.

According to the revised guidelines, the Monitoring Cell at KVIC, Mumbai will monitor the application process on a daily basis while it will give feedback to the implementing agencies every fortnight.

The progress report, thereafter, shall be placed for perusal of the CEO and Chairman of KVIC.

According to the guidelines, the implementing agencies, at the time of scrutiny, must ensure that the applicant has secured at least 60 marks out of 100 in the score card.

Similarly, technical feasibility like availability of raw material, manpower, access to transport and electricity must be examined so as to reduce rejections at the bank level, the statement said.

The implementing agencies shall also examine the market study, assessment of demand of the proposed product, similar projects in the vicinity and the market strategy. The agencies will ensure that the proposal falls under the selected bank's jurisdiction to avoid rejection on that ground, it added.

Saxena said the revised guidelines come in wake of prime minister's appeal for encouraging local production.

"As the prime minister has said, 'self-dependence' is the mantra. Easing out the process under PMEGP will further accelerate the growth of local manufacturing. This will ensure maximum employment generation within a short time frame," Saxena said.

To boost local production, it has been decided that at least one unit each pertaining to manufacture of N95 masks, ventilators or its accessories, PPE Kits for medical staff, sanitizers/liquid hand wash, thermal scanner and agarbatti and soap will be set up in each district. This is in order to meet the growing demand due to prevailing COVID-19 situation in the country, the statement said.