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44% jump in PMEGP projects implementation in Apr-Aug: KVIC

22 Aug '20

2 min read

Pic: Shutterstock

The flagship Prime Minister Employment Generation Program (PMEGP) implemented by India’s Khadi and Village Industries Commission (KVIC) progressed at a much rapid pace during the COVID-19 lockdown because of a major decision of the ministry of micro, small and medium enterprises (MSME) introducing a new and faster mechanism in approving the PMEGP projects.

The approval of projects during the first five months of this fiscal increased by 44 per cent. KVIC has approved and forwarded 1.03 lakh project applications to the financing banks as compared to 71,556 projects during the corresponding period last year, according to an official release.

PMEGP is the flagship employment generation programme of the central government and KVIC is the nodal agency for implementing the scheme.

The ministry on April 28 amended the guidelines to do away with the role of the District Level Task Force Committee (DLTFC) in approving the PMEGP projects as the role of DLTFC, headed by the district collectors, was time consuming.

As per the amended guidelines, KVIC, the nodal agency for implementing PMEGP scheme, was entrusted the task of clearing the applications from prospective entrepreneurs and forward it to the Banks for taking credit decisions.

During the period from April to August in 2020, financing banks sanctioned 11,191 projects and ₹345.43 crore margin money was disbursed to applicants as compared to ₹276.09 crore margin money disbursed for 9,161 projects in the first five months of previous year.

The number of sanctioned projects by banks thus increased by 22 per cent while the disbursement of margin money by KVIC increased by 24 per cent as compared to previous year.

Fibre2Fashion News Desk (DS)

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