Jammu & Kashmir tops scheme to assist microenterprises, shows govt data

Jammu & Kashmir has generated the most number of jobs among all the states and Union territories under the Prime Minister's Employment Generation Programme (PMEGP) in the current fiscal year. The credit-linked subsidy scheme facilitates employment generation opportunities by assisting in setting up of new self-employment projects and microenterprises in the non-farm sector.

Under the central sector scheme notified in 2008, 62,808 jobs were created by 7,851 assisted projects in Jammu & Kashmir till November 30 this year, followed by Uttar Pradesh (50,904 jobs), Karnataka (27,944 jobs) and Tamil Nadu (27,232 jobs), according to the information provided by the Minister of State for Micro, Small and Medium Enterprises, Bhanu Pratap Singh Verma, in a written reply in Rajya Sabha on Monday.

However, in terms of the amount of subsidy disbursed under the scheme, Uttar Pradesh (Rs 217.55 crore) got the highest amount disbursed, followed by Jammu & Kashmir (Rs 164.73 crore) and Karnataka (Rs 100.24 crore).

The scheme by the Ministry of Micro, Small and Medium Enterprises (MSME) is implemented by Khadi and Village Industries Commission (KVIC), functioning as the nodal agency at the national level. At the state level, the scheme is implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs) and Banks.

The scheme seeks to provide continuous and sustainable employment to all segments of traditional and prospective artisans and rural/urban unemployed youth in the country, so as to prevent migration of rural youth to urban areas. The maximum cost of the project eligible in the manufacturing sector is Rs 25 lakhs and in the service sector, it is Rs 10 lakhs.

Since its inception, the scheme has assisted about 834,000 units with an outlay of Rs. 20,643 crore, generating estimated employment for about 6.8 million youths across the country, the minister informed the Parliament. About 80 per cent of the units assisted are in rural areas and about 50 per cent of the units are owned by SC, ST and women categories.

Jammu & Kashmir has been the top beneficiary of the scheme in the last fiscal year as well, as it generated an estimated number of 173,184 jobs, followed by 100,752 jobs created in Uttar Pradesh and 64,656 jobs in Madhya Pradesh.

The Centre spent Rs 1900 crore and Rs 3,000 crore in 2020-21 and 2021-22, respectively, under the scheme. It has budgeted Rs 2,500 crore for the current financial year (FY23).

Earlier in May this year, the government had approved the continuation of the scheme over the 15th Finance Commission Cycle for five years from 2021-22 to 2025-26 with an additional outlay of Rs 13,554.42 crore and also modified the eligibility criteria from the existing Rs 25 lakh to Rs 50 lakh for manufacturing units and from existing Rs 10 lakh to Rs 20 lakh for service units.