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Thursday, November 22, 2012

Indian govt releases Rs.12.76bn to back MSME projects
The Value Chain in Textiles
The Government of India has released Rs. 12.76 billion in the current fiscal year 2012-13 to support 53,826 Micro, Small and Medium Enterprises (MSME) projects, including those belonging to textile and garment industry, which is likely to generate around 431,000 jobs.
The sum has been released from the proposed outlay of over Rs. 90 billion for the Prime Minister's Employment Generation Programme (PMEGP) announced under the XII Five-Year Plan (2012-17),
Minister of MSME KH Muniyappa said, while speaking at the inaugural ceremony of Techmart at the India International Trade Fair (IITF) 2012.
The PMEGP scheme is intended at creating employment opportunities by setting up micro enterprises like rural industrial units.
Under PMEGP, it is proposed to spend Rs. 97 billion to launch 400,000 projects, with margin cost of Rs. 2.3 million per project, and generation of around 3.2 million jobs in all, the Minister said.
Under the scheme, rural and urban entrepreneurs of general category are respectively provided subsidy of 25 percent and 15 percent of the project cost. Rural and urban entrepreneurs belonging to underprivileged sections of the society qualify for a 35 percent and 25 percent subsidy, respectively.
The Minister also directed the Khadi and Village Industries Commission (KVIC), the nodal agency responsible for implementation of the scheme, to find ways to further develop the village and cottage industries.
KVIC fixes targets for its field officers and the khadi and village industries boards of different states.
About 26 million MSMEs functional in the country contribute to around 45 percent of the overall manufactured output of the nation, and around 40 percent of its exports. The MSME sector employs over 60 million people across the country.
Mr. Muniyappa also inaugurated the Cori Pavilion at the fair and also the MSME Expo- 2012, featuring a wide range of products.

Courtesy: Fibre2Fashion