It has been a year full of historic Cardinals and the Village Industries Commission (KVIC) in the implementation of the PMEGP. With the establishment of 1.03 lakh new production facilities and services and the creation of more than 8.25 lakh jobs, the PMEGP emerged as a powerful government tool for livelihoods in 2021-22, as the country was closed for the first 3 months of the year during the second wave of the Covid-19.
KVIC has issued margin funding
It is the first time since the launch of the PMEGP Program in 2008, when KVIC launched more than one lakh new units in the financial year. These 1,03,219 units were established at a cost of approximately Rs 12,000 crore when KVIC issued a margin funding of Rs 2978 crore while the bank debt was almost Rs 9,000 crore. The limited funding of Rs 2978 crore provided to KVIC for the year 2021-22 and is the highest since 2008. A total of 8,25,752 new jobs have been created across the country, the highest of which is currently under PMEGP.
Compared to last year, i.e. 2020-21, the number of units and employment created under PMEGP has increased by 39% each, while margin distribution (funding) has also seen a 36% increase in FY 2021-22. In general, the number of units established under the PMEGP from 2014-15 has increased by 114%, job creation has increased by 131% and the average distribution has seen a 165% increase in 2021-22.
KVIC Chairman was created jobs
KVIC Chairman Shri Vinai Kumar Saxena said the increase in job creation was due to the Prime Minister’s pressure on local production to become self-sufficient. “This great goal of producing locals and self-employment as a result of the Covid-19 epidemic has done wonders. A large number of youth, women and migrants are encouraged to take up self-employment activities under the PMEGP. In addition, a number of policy decisions taken by the MSME Department and KVIC to accelerate the implementation of projects under the PMEGP helped KVIC achieve its best performance ever, ”saidSaxena.
Efforts to successfully implement the PMEGP
KVIC, in recent years, has taken a number of steps towards the successful implementation of the PMEGP. In 2016, KVIC launched the online platform for PMEGP. Prior to 2016, applications were processed in person and on average only 70,000 applications were received annually. However, with an online site located, an average of 4 lakh applications are received each year. The internet system has brought a lot of clarity. The PMEGP site enables applicants to track their applications without any human intervention.
KVIC has also started marking geo-tagging
In another big step, KVIC has also started tagging the geo-tagging of all PMEGP units to ensure the physical condition of the units and their performance at any given time. To date, more than 1 lakh PMEGP units have been geo-tagged. This also enables anyone to access PMEGP units using the mobile app.
In addition, the MSME Department, based on KVIC’s findings, removed the role of the Regional Task Team in approving PMEGP projects and authorized KVIC provincial directors to approve projects and send them directly to funding banks. and reduce the time frame for processing and forwarding applications to banks by their provincial directors from 90 days to just 26 days. In addition, monthly bank liaison meetings were initiated at various levels which resulted in the beneficiaries being paid on time.
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