Khadi and Village Industries Commission Has Achieved More Than 100% Target In PMEGP Scheme, says Independent Report.

New Delhi: In the year 2016-17, the Khadi and Village Industries Commission (KVIC) has achieved more than 100 per cent target of subsidy allotted by the Ministry of Micro, Small and Medium Enterprises (MSME) for implementation of Prime Minister’s Employment Generation Programme (PMEGP). While the utilization of subsidy was less than 50 per cent in 2008-‘09, it has risen to 100.37 per cent in 2016-17.

Notably, the Ministry of MSME had set a target of Rs 1,100 crore for PMEGP in 2016-17, which was achieved by March 15 itself. The ministry added another Rs 100 crore to the target, which also was achieved on March 25, an independent evaluation study done by Management Development Institute (MDI), Gurgaon says.

A further Rs 50 crore was added, but KVIC’s overall achievement crossed that too, the annual figure being Rs 1,281 crore. Moreover, nearly four lakh new jobs were created with an estimated project cost of Rs 4,800 crore marking a huge growth of approximately 24 per cent with respect to the financial year 2015-16.

After physical verification of 10,044 PMEGP units (five per cent of the total units) all over the country and collecting data from the beneficiaries, stakeholders and external sources, the evaluation study states that the average employment per project was 7.66 persons, with an average cost of Rs 94,855 for generating unit employment and an average cost per project of Rs 7,26,760. “The maximum and minimum costs for generating unit employment were Rs 2,65,412 (Nagaland) and Rs 25,070 (Tamil Nadu),” the report states.

The MDI study further indicates that the average age of the beneficiaries was 36.8 years and 42.39 per cent of them were from SC, ST and OBC categories, while 5.8 per cent were minorities and 10 per cent were women. “With 53 per cent and 45 per cent of beneficiaries involved in manufacturing and services respectively, collateral taken by the banks over and above hypothecation of assets by banks were recorded 46 percent and 54 per cent respectively,” says the report.

The report observes that to a great extent, the key factors of Non Performing Assets (NPAs) are disconnect among stakeholders and beneficiaries, lack of knowledge of various facets of running or setting up a unit among beneficiaries. These are facets such as ‘importance of product quality’ and availability of skilled manpower.

As regards the consumption, the report indicates that majority of the beneficiaries (79.53 per cent) reported that their products/services are consumed only domestically. “Majority of the beneficiaries (75.07 per cent) reported that the physical verification of their units had been done,” the report further said.

Enthused with this report, KVIC Chairman Vinai K Saxena said that the Central Government too had taken cognizance of the success rate of KVIC in implementation of PMEGP. “In the recent budget of 2018-19, we have got Rs 1,800 crore with respect to Rs 1,024 crore in the previous budget, which marks a growth of 78 per cent. Since the Prime Minister Narendra Modi has a lot of affection with Khadi as he considers it a tool for economical transformation of the country, we will leave no stone unturned to follow and implement his vision,” he said.

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