Indian govt releases Rs.12.76bn to back MSME projects
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| 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.
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