This policy addresses Lok Sabha Unstarred Question No. 4678 regarding the promotion of rural entrepreneurship in the Warangal Lok Sabha Constituency, with a focus on Scheduled Caste youth. Key initiatives include the Prime Minister's Employment Generation Programme (PMEGP), implemented by the Khadi and Village Industries Commission (KVIC). PMEGP aims to generate employment in rural areas by supporting new micro-enterprises in the non-farm sector, offering higher subsidies and lower contribution requirements for rural and Scheduled Caste beneficiaries.
The Ministry of MSME also implements the National Scheduled Caste and Scheduled Tribe Hub to enhance the capacity of SC/ST entrepreneurs to participate in public procurement, working towards the mandated 4% procurement from SC/ST MSEs. This includes professional support in skilling, capacity building, market linkages, and finance facilitation.
Financial assistance is available through the Pradhan Mantri Mudra Yojana (PMMY), providing collateral-free loans up to Rs. 20 lakh through Member Lending Institutions (MLIs) like Scheduled Commercial Banks (SCBs), Regional Rural Banks (RRBs), Non-Banking Financial Companies (NBFCs), and Micro Finance Institutions (MFIs). Loans are categorized as Shishu (up to Rs. 50,000), Kishor (above Rs. 50,000 and up to Rs. 5 lakh), Tarun (above Rs. 5 lakh and up to Rs. 10 lakh), and Tarun Plus (above Rs. 10 lakh and up to Rs. 20 lakh for entrepreneurs who have successfully repaid previous Tarun loans since October 24, 2024).
Currently, there are no plans to establish an incubation center in the Warangal Lok Sabha Constituency.
Key Entities Referenced
Khadi and Village Industries Commission (KVIC): A statutory body under the Ministry of MSME, engaged in promoting and developing khadi and village industries.
Ministry of Micro, Small and Medium Enterprises: The Indian government ministry responsible for formulating policies and programs for the promotion and development of micro, small and medium enterprises.
Warangal Lok Sabha Constituency: A parliamentary constituency in Telangana, India.
Scheduled Caste: A group of historically disadvantaged communities recognized by the Government of India.
Prime Ministers Employment Generation Programme (PMEGP): A credit-linked subsidy program implemented by KVIC to generate employment opportunities in rural areas by assisting entrepreneurs in setting up micro-enterprises.
National Scheduled Caste and Scheduled Tribe Hub: An initiative to strengthen the capacity of SC/ST entrepreneurs to participate in public procurement.
Pradhan Mantri Mudra Yojana (PMMY): A scheme providing collateral-free loans to small businesses through Member Lending Institutions.
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.4678
TO BE ANSWERED ON 21.08.2025
PROMOTION OF RURAL ENTREPRENEURSHIP
4678. DR. KADIYAM KAVYA:
Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:
(a) the initiatives launched to promote rural entrepreneurship in the Warangal Lok Sabha
Constituency, especially for Scheduled Caste youth;
(b) the details of financial assistance or loans provided to local startups under schemes like
MUDRA; and
(c) whether there are plans to establish incubation centres in the constituency and if so, the details
thereof?
ANSWER
MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SUSHRI SHOBHA KARANDLAJE)
(a): Ministry of MSME, through Khadi and Village Industries Commission (KVIC), is implementing
the Prime Minister’s Employment Generation Programme (PMEGP). It is a central sector scheme
generating employment opportunities primarily in rural areas by assisting prospective entrepreneurs in
setting up new micro enterprises in the non-farm sector. Under PMEGP, beneficiaries belonging to rural
areas and those belonging to Scheduled Castes are covered under special category of beneficiaries who
are eligible for higher rate of subsidy and lower own contribution to the project cost.
The Ministry of MSME also implements the ‘National Scheduled Caste and Scheduled Tribe
Hub’ throughout the country including Warangal for strengthening capacity of SC/ST entrepreneurs to
participate in public procurement and achieve the mandated 4% of procurement from SC/ST MSEs.
Several initiatives have been taken under the Scheme to provide professional support to SC/ST
entrepreneurs in skilling, capacity building, market linkages, finance facilitation, tender bid participation
etc.
(b): Under Pradhan Mantri Mudra Yojana (PMMY), collateral free institutional credit is provided by
Member Lending Institutions (MLIs) i.e. Scheduled Commercial Banks (SCBs), Regional Rural Banks
(RRBs), Non-Banking Financial Companies (NBFCs) and Micro Finance Institutions (MFIs). Any
individual, who is eligible to take a loan and has a business plan for small business enterprise can avail
loan up to Rs.20 lakh under PMMY for income generating activities in the manufacturing, trading and
service sectorsacross four loan categories, viz. Shishu (loans upto Rs. 50,000), Kishor (loans above Rs.
50,000 and upto Rs. 5 lakh), Tarun (loans above Rs. 5 lakh and upto Rs. 10 lakh) and Tarun Plus (loans
above Rs. 10 lakh and upto Rs. 20 lakh- for those entrepreneurs who have availed and successfully
repaid previous loans under the ‘Tarun’ category w.e.f. 24.10.2024).
(c): Presently, there is no proposal for setting up of an incubation centre in the Warangal Lok Sabha
Constituency.
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