Employment

PMEGP has been able to provide Sustainable Employment: A Study

THE AIM OF THE STUDY  WAS TO EXAMINE  THE IMPACT OF THE  SCHEME IN TERMS  OF EMPLOYMENT  GENERATION AND  IMPROVEMENT IN  INCOME OF THE RURAL  AND URBAN ARTISANS  AND UNEMPLOYED  YOUTH – BY PK GHOSH

New Delhi. Management  Development Institute  (MDI), Gurugram, one of  the premier B-schools in  India, has found that the  Prime Minister’s Employment Generation  Programme (PMEGP) has been able to  provide Sustainable Employment.

MDI in its study found that the units set  up under the scheme provided employment  throughout year and for large number of  years. The institute was entrusted with  the task of conducting Evaluation Study of  PMEGP in January, 2017.

The aim of the study was to  examine the impact of the scheme in  terms of employment generation and  improvement in income of the rural and  urban artisans and unemployed youth,  major problems in implementation of  Scheme and ways to resolve them and  to make recommendations on making  further improvements in the Scheme.

To conduct the study, the sample  size was selected on stratified random  sampling basis. The total number of  micro units setup from 2012-013 to  2015-16 was 2,00,885 units. This units  were taken into consideration, out of  these a sample coverage of five per cent  i.e. about 10,108 units were sought  listed on random basis from among the  three implementing agencies viz. KVIC,  KVIB and DIC in proportion of 30:30:40.

Minister of State (Independent  Charge) for Micro, Small and Medium  Enterprises (MSME) Giriraj Singh was  presented with evaluation study of the  PMEGP.

The following were the key  observations of the Study:

  • Scheme has been able to provide  Sustainable Employment. Units  set up under the scheme provided  employment throughout year and for  large number of years.
  • Scheme has good reach, it has  targeted at almost all sections of the  society (based on social background,  education background, location etc).
  • Average Employment per Project 7.62,
  • Average Cost of Generating Unit Employment `96,209.
  • Maximum Cost of Generating Unit Employment `2,75,621 (Nagaland).
  • Minimum Cost of Generating Unit Employment`64,735 (Tamil Nadu).
  • Average Cost per Project `7,33,423.

PROBLEM AREAS:

  • Delay in the process of sanctioning of loans at different stages.
  • Hypothecation & collaterals asked for.
  • Physical verification & delay in adjustment of margin money.
  • Records keeping, hand holding, access of data & reporting by implementing agencies.
  • Marketing for products.

KEY RECOMMENDATIONS:

  • Increased availability of field officers  (They are a key connect between  beneficiary and agencies and are  currently sparse).
  • EDP Training content needs to be  more relevant and rigorous. On line  EDP could be encouraged.
  • Content partnership/Integration with MOOCs (Massive Open Online Coursewares) of recognized reputational technical and managerial institutes (such as IITs and IIMs).
  • Agencies could consider hiring interns from leading management institutions (India/Abroad) to further handholding of beneficiaries
  • Integration with Aadhar to authenticate the trainee identity and progress.
  • Cash credit account (CCA) component of the loan could be reduced. Maximum CCA may range up to 40 per cent of total loan.

OBJECTIVES OF THE PROGRAMME

PMEGP was  launched  to generate  employment  opportunities by  establishing micro  enterprises in  urban as well as  in rural area. Here  are the objectives  of this programme:

  • Increase artisans’  wage earning  capacity and  contribute to raise  the growth rate of  urban and rural  employment,
  • Provide sustainable  and continuous  employment to  a huge portion  of prospective  and traditional  artisans as well as  urban and rural  unemployed youth  to help arrest rural  youth to urban  areas migration.
  • To facilitate  participation  of financial  institutions for  higher credit flow  to only new micro  enterprises.

 

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