Executive Summary:
The Ministry of MSME addresses Lok Sabha question 3037 regarding digital access to MSME schemes, focusing on the impact of MSME and PMEGP schemes in the Chevella Lok Sabha Constituency. The response details initiatives to support entrepreneurship, particularly among youth, SC/ST, and women, through credit-linked subsidies, infrastructure development, awareness programs, and coordination with state agencies. It covers the period from FY 2022-23 to FY 2024-25.
Key Points / Main Content:
* **PMEGP Implementation and Impact:**
* PMEGP, implemented through KVIC, provides credit-linked subsidies for new micro-enterprises to generate employment in rural and urban areas.
* In Ranga Reddy district (including Chevella), PMEGP assisted 203 units in FY 2022-23, 222 units in FY 2023-24, and 233 units in FY 2024-25, disbursing margin money subsidies of Rs. 1074.70 lakh, Rs. 1193.32 lakh and Rs. 1247.70 lakh respectively, and generating estimated employment for 1624, 1776 and 1864 people respectively.
* **Tracking Viability of PMEGP Units:**
* Banks assess project viability technically and economically, including long-term sustainability.
* Third-party evaluation studies assess PMEGP unit performance.
* Marketing support is provided through exhibitions, KVIC outlets, and the e-commerce portal ekhadiindia.com.
* **MSME Infrastructure and Cluster Development:**
* MSECDP supports establishing and strengthening Common Facility Centers (CFCs) and infrastructure in industrial areas.
* 590 projects have been approved, including 229 CFCs and 361 Infrastructure Development projects.
* **Support for SC/ST and Women Entrepreneurs:**
* NSSH organizes conclaves, vendor development programs, and awareness workshops in areas with significant SC/ST populations.
* The 'Yashasvini' campaign raises awareness of MSME schemes among women entrepreneurs.
* PMEGP initiatives include awareness programs, handholding support during application, free online EDPs, acceptance of applications in 11 regional languages, and access to 1,000+ model project reports.
* **Coordination with State/District Agencies (PMEGP):**
* Periodic review meetings with KVIC, KVIBs, DICs, and financial institutions.
* Bankers' review meetings at various levels to ensure loan sanctioning and margin money disbursement.
* Quarterly meetings by State Level Monitoring Committee (SLMC) and District Level Monitoring Committee (DLMC) to monitor and review scheme performance.
Impact Analysis:
* **Entrepreneurs (existing and potential, especially youth, SC/ST, and women):**
* *Impact:* Increased access to credit, subsidies, infrastructure, and market linkages, leading to business creation and growth. Enhanced awareness and support for accessing MSME schemes.
* *Action Required:* Participate in awareness programs, utilize application support, and engage with implementing agencies for PMEGP benefits.
* **Banks and Financial Institutions:**
* *Impact:* Play a crucial role in project appraisal and loan disbursement under PMEGP.
* *Action Required:* Conduct thorough technical and economic assessments of projects, participate in review meetings, and ensure timely loan sanctioning and disbursement.
* **State and District Agencies (KVIC, KVIBs, DICs):**
* *Impact:* Responsible for implementing and monitoring MSME schemes, providing support to entrepreneurs, and coordinating with other stakeholders.
* *Action Required:* Conduct awareness programs, provide handholding support, participate in review meetings, and monitor scheme performance.
Key Entities Referenced
Khadi and Village Industries Commission (KVIC): An organization implementing PMEGP under the Ministry of MSME.
Ranga Reddy district of Telangana: A district in Telangana, India, which includes Chevella Lok Sabha Constituency.
MICRO, SMALL AND MEDIUM ENTERPRISES: A ministry of the Government of India responsible for formulating policies and programs for the promotion and development of micro, small and medium enterprises.
PMEGP: Prime Minister's Employment Generation Programme, a credit-linked subsidy scheme to assist entrepreneurs in setting up new micro-enterprises.
Chevella Lok Sabha Constituency: A parliamentary constituency in Telangana, India. Focus area of the question asked in the Lok Sabha.
Micro and Small Enterprises Cluster Development Programme (MSECDP): A scheme of the Ministry of MSME to enhance the productivity and competitiveness of Micro and Small Enterprises through cluster-based development.
National SCST Hub Scheme (NSSH): A scheme to support SC/ST entrepreneurs through conclaves, vendor development programs, and awareness workshops.
SUSHRI SHOBHA KARANDLAJE: Minister of State for Micro, Small and Medium Enterprises
GOVERNMENT OF INDIA
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
LOK SABHA
UNSTARRED QUESTION No. 3037
TO BE ANSWERED ON 07.08.2025
DIGITAL ACCESS TO MSME SCHEMES
3037. SHRI KONDA VISHWESHWAR REDDY:
Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:
(a) whether the Ministry has assessed the impact of MSME and PMEGP schemes on youth
employment and entrepreneurship in Chevella Lok Sabha Constituency;
(b) if so, the key findings regarding sustainability, credit access and market linkages for MSMEs
in the region;
(c) whether there is a mechanism to track the long-term viability of PMEGP supported units in
backward and rural areas of Chevella;
(d) the specific initiatives undertaken to strengthen MSME infrastructure and common facility
centres in Chevella to enable cluster-based development;
(e) whether the Ministry has taken steps to improve awareness, application support and digital
access to MSME schemes among SC/ST and women entrepreneurs in the constituency and if so, the
details thereof; and
(f) the extent of coordination with State/district agencies to ensure timely disbursal of funds,
resolution of delayed payments and support for first generation entrepreneurs in the region?
ANSWER
MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SUSHRI SHOBHA KARANDLAJE)
(a) and (b): Ministry of MSME, through Khadi and Village Industries Commission (KVIC), is
implementing PMEGP, a credit linked subsidy scheme for assisting entrepreneurs in setting up of
new micro enterprises to generate sustainable employment opportunities in rural and urban areas. No.
of units assisted, margin money subsidy disbursed and estimated employment generated in Ranga
Reddy district of Telangana which includes Chevella Lok Sabha Constituency in the last three years
i.e from FY 2022-23 to FY 2024-25 is given below:
No. of Units MM Subsidy (Rs. Estimated Employment
Financial Year
Assisted Lakh) Generated
2022-23 203 1074.70 1624
2023-24 222 1193.32 1776
2024-25 233 1247.70 1864: 2 :
(c): Measures to track long-term viability of PMEGP supported units across the country including
in Chevella are the following:
i. Under PMEGP, Banks appraise the projects both technically and economicallyand take their
own credit decision on the basis of viability of each project. This includes an assessment of
long-term viability and sustainability of the project.
ii. Evaluation Studies are conducted through Third-Party agencies on performance of PMEGP
units and factors affecting sustainability of units.
iii. Marketing support is provided to PMEGP units for sale of their products through
exhibitions, KVIC sales outlets and the e-commerce portal (https://www.ekhadiindia.com)
which promotes their long-term viability and sustained engagement with Implementing
Agencies.
(d): To establish and strengthen Common Facility Centers (CFCs) and Infrastructure
Development (ID) in new/existing industrial estates/areas/flatted factory complexes, Micro and
Small Enterprises Cluster Development Programme (MSE-CDP) of Ministry of MSME is being
implemented across the country with an objective to enhance the productivity and competitiveness of
Micro and Small Enterprises (MSEs) for their holistic development addressing the common issues of
the existing clusters. It is a demand driven Central Sector Scheme wherein, State Governments send
proposals as per common needs of existing cluster in their States/UTs. A total 590 projects have been
approved including 229 Common Facility Centers (CFCs) and 361 Infrastructure Development (ID)
projects, till date.
(e): Steps taken by the Ministry to improve awareness, application support and digital access to
MSME schemes among SC/ST and women entrepreneurs all over the country include the following:
i. Under the National SC-ST Hub Scheme (NSSH), conclaves, vendor development
programmes and awareness workshops are organised with on spot handholding support at
various locations in the country andin places/regions where SC/ST population is significant.
ii. 'Yashasvini' awareness campaign seeks to create awareness among existing and aspiring
women entrepreneurs with various schemes of the Ministry of MSME, providing them with
continuum of support through handholding, mentorship, and capacity building.
iii. Under PMEGP the following initiatives are undertaken :
a) Awareness programmes are conducted in all the States/UTs including backward and
under-performing areas, Aspirational districts, North Eastern Region, with special focus
on SC, ST and women entrepreneurs.: 3 :
b) To enhance the quality of applications to reduce rejections, technical experts & Bank
Officials (Retd.) have been engaged to provide handholding support to prospective
PMEGP beneficiaries during application stage.
c) Conduct of two-days free online Entrepreneurship Development Programme (EDP) for
prospective entrepreneurs.
d) Acceptance of PMEGP applications from beneficiaries in physical form in 11 regional
languages since January 2024.
e) A wide range of more than 1,000 Model of Detailed Project Reports have been prepared
on various industries and made available on the PMEGP online portal.
(f): Under PMEGP, coordination with State/district agencies is established through the following
mechanisms:
i. Periodical review meetings with Implementing Agencies i.e. State offices of KVIC, State
KVIBs, State DICs and financial institutions.
ii. Banker’s Review meetings conducted at top, State and Zonal level to ensure proper
sanctioning of loans and disbursement of margin money.
iii. Meetings by State Level Monitoring Committee (SLMC) and District Level Monitoring
Committee (DLMC) are conducted on a quarterly basis to monitor and review the
performance of the scheme
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