Guwahati: Prime Minister's Employment Generation Programme (PMEGP) is a credit-linked subsidy scheme, administered by the Ministry of Micro, Small and Medium Enterprises (MSME). This program was launched in August 2008 with an to generate employment opportunities through the establishment of micro-enterprises in the non-farm sector for rural as well as urban areas.
The General Manager of District Industries and Commerce Centre Kamrup Metro, Umesh Kumar and Functional Manager Pallab Jyoti Konwar spoke at length about the PMEGP scheme status in Assam during an interview with Priyanka Chakrabarty of Business North East (BNE).
Excerpts from the interview:
Business North East: Please tell us about the PMEGP scheme and its implementation process in Assam.
General Manager: The Central Government, through the Prime Minister's Employment Generation Programme (PMEGP), aims to generate employment in the manufacturing and service sectors. This scheme offers a subsidy of up to 35% for rural areas and 25% for urban areas. The subsidy payment depends on the nature of the project and ranges from 25% to 35%.
BNE: You mentioned that the process is online. If someone lacks computer knowledge, what should they do?
GM: For those who are not familiar with the online application process, they can visit the District Industries Centre (DIC). We provide complete support, including guidance on how to apply online, preparing project reports, and overall handholding support for entrepreneurs.
BNE: If a person has a bank loan, how does it affect their application?
GM: If someone doesn't have any previous bank loans, their credit score should generally be good. The bank will evaluate the application based on its criteria. A lack of a credit history is not necessarily a negative factor.
BNE: What is the general eligibility for applying for these loans?
GM: An entrepreneurship mind-set will be required. The candidate should be minimum Class 8 pass. The minimum 20 lakh loan is given to service sector. The eight pass will get above Rs. 5 lakhs. Below 8 pass, will get less amount in service sector. In manufacturing sector, eight pass will get loan above Rs.10 lakhs or else, below it.
BNE: What are the advantages of this loan for entrepreneurs?
GM: The main advantage is the subsidy, which can significantly reduce the financial burden on new enterprises. The scheme supports direct bank financing, and with the subsidy, entrepreneurs can start their ventures with reduced initial investment.
BNE: How many DIC centers are there in Assam and other parts of India?
GM: DIC centers are present in every district across India. They play a crucial role in implementing the PMEGP scheme, along with other organizations like KVIC and KIP.
BNE: As this is an employment generation scheme, what is the standard employment rate created by it?
GM: Generally, we see that for every Rs. 10 lakhs of loan sanctioned, at least one or two jobs are created. For larger loans, such as Rs. 50 lakhs, a minimum of five jobs are typically generated.
BNE: Can you share any success stories from this scheme?
GM: We have many success stories where entrepreneurs who received their first loan have returned for a second loan due to their venture's success. These businesses have grown and created numerous jobs, contributing to the local economy.
BNE: What is DICC doing for marketing support?
GM: We have several schemes under the Industries Department to support marketing, such as participation in trade fairs, export promotion, and district-sponsored buyer-seller meets. We facilitate these opportunities to help entrepreneurs market their products effectively.
BNE: Can you tell us about other schemes operated by DICC?
GM: Besides PMEGP, we implement the Assam Industrial Investment Policy, 2019. This scheme offers various incentives, including subsidies on GST, power, and capital investment, for up to 15 years to promote micro, small, and medium enterprises (MSMEs) in Assam.
BNE: How do you create awareness among entrepreneurs about these schemes?
GM: We conduct meetings at block and district levels and participate in forums and events to highlight our schemes. We also collaborate with local authorities and other stakeholders to spread awareness.
BNE: What challenges do you face in implementing these schemes?
GM: One of the main challenges is the high non-performing assets (NPA) ratio among banks, which can affect loan sanctions. However, we are seeing improvements in this area, and the overall situation is becoming more positive.
BNE: What are the future plans of DICC for entrepreneurs in Kamrup Metro?
GM: We aim to provide more dedicated support to entrepreneurs, streamline the application process, and collaborate closely with banks to ensure timely loan disbursal. Our goal is to foster economic development and create more employment opportunities.
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