As per the Central Statistics Office (CSO), as many as 2 crore jobs were created in just 16 months up to December 2018. The report was released basis increasing membership for social security schemes run by the EPFO and PFRDA.
While the establishments have successfully rolled in newer beneficiaries, government schemes like PMEGP have significantly contributed to such an increase in employment.
Employment highlights of PMEGP Programme –
- A positive job creation scenario between 2014 and 2018 with 63.5% of total job-seeking households successfully finding a job for at least one member.
- A pan-India survey of households revealed by the PHD Research Bureau reflected the majority of employment providers based in the private sector at 60.4%.
- As of August 2019, the formal sector’s net employment generation stood at 10.86 lakh.
Not to mention, budget 2019-20 brought cheers for small and medium enterprises, thus pushing the economy towards higher employment creation.
Such increase in employment can be attributed to schemes like the Prime Minister Employment Generation Programme (PMEGP full form).
Take a brief look at the scheme before moving on with its impact on employment in India –
PMEGP – An overview
A credit-linked subsidy scheme, the Prime Minister Employment Generation Programme was launched on 15th August 2018.
Its implementation preceded the merging of Rural Employment Generation Programme (REGP) and Prime Minister Rojgar Yojana (PMRY) to make the centre’s employment generation initiatives more effective.
Implemented by KVIC, a statutory organisation operating under the Ministry of MSME, the programme aims to empower first-generation entrepreneurs through the financing of micro-enterprises.
Impact of PMEGP scheme on employment
The ambitious programme has successfully provided employment as well as created new job opportunities to unemployed rural and urban youth through business finance. It thus propels new ventures, which entrepreneurs can further expand through easy ways to finance a growing business.
Below are a few essential facts and figures that agree with the successful implementation of PMEGP –
- The last five fiscals have witnessed approximately 20 lakh job creations under this scheme.
- Apart from the 20 lakh jobs created between fiscals 2014-15 and 2018-19, the programme also resulted in the setting up of more than 2.6 lakh projects in the country, thus successfully creating sustained job opportunities in the economy.
- As per KVIC, the success rate for PMEGP’s implementation has been more than 100% in the last five years.
- As against the fiscals before the last five years that did not see more than 100% success in implementation, the surpassing of the projected target is a welcoming change.
- In the fiscal year 2018-19, PMEGP’s nodal agency set a target of 70,000+ project establishments with an estimated creation of more than 5.6 lakh jobs.
The budget for the purpose stood at Rs.1,900+ crore. The scheme’s implementation via KVIC, however, saw a success rate of 112%. It reflects in the successful funding of 73,000+ new projects and the creation of 5.87 lakh new jobs with loan sanctioning amounting to Rs.2,000+ crore.
Now, here’s a look at PMEGP loan details that enable successful project establishment and job creation.
The PMEGP scheme provides financing to eligible individuals under the following categories –
- For the manufacturing sector – Loans of up to Rs.25 lakh.
- For the service sector – Loans of up to Rs.10 lakh.
The collateral-free financing comes with a 6-month moratorium period and a tenor extending up to 7 years for convenient repayment.
However, as financing under PMEGP is available only for new projects, firms looking for funds to expand and grow their existing venture can opt for business loans. The Business loan interest rates are very minimal and when you are going with popular NBFCs like Bajaj Finserv which gives you pre-approved offers facility as well.
Financial institutions like Bajaj Finserv bring these high-value advances of up to Rs.30 lakh against minimum eligibility and documents.
As for the PMEGP, when seeking loans under this scheme, make sure to meet eligibility requirement before applying. Know that only one member from a household will be allowed to avail the scheme’s benefits.