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Business Standard
3 days ago
- Business
- Business Standard
KVIC disburses ₹300 cr subsidy to 8,794 beneficiaries under PMEGP scheme
The Khadi and Village Industries Commission (KVIC), under the Ministry of Micro, Small and Medium Enterprises (MSME), has disbursed ₹300 crore in margin money subsidy to 8,794 beneficiaries under the Prime Minister's Employment Generation Programme (PMEGP). The subsidy was released during a virtual programme held on Tuesday at KVIC's Central Office in Vile Parle (West), Mumbai. It corresponds to loans amounting to approximately ₹884 crore. Manoj Kumar, Chairman of KVIC, transferred the subsidy to beneficiaries via a virtual platform. CEO Roop Rashi and other senior officials were also present at the event. 'Khadi is the essence of Aatmanirbhar Bharat': KVIC chairman Since its inception, PMEGP has supported the establishment of 1.02 million micro enterprises up to FY 2024–25. Loans worth ₹73,348.39 crore have been sanctioned under the scheme, with margin money subsidies totalling ₹27,166.07 crore. The programme has generated direct and indirect employment for over nine million individuals across the country. Zone-wise disbursement details All six zones participated in the event. South Zone (Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, Kerala, Puducherry): 2,445 projects received ₹80.26 crore Central Zone (Uttar Pradesh, Madhya Pradesh, Chhattisgarh, Uttarakhand): 2,366 projects received ₹91.13 crore Eastern Zone (Bihar, Jharkhand, Odisha, West Bengal, Andaman & Nicobar Islands, Northeast states): 2,167 projects received ₹62.68 crore Northern Zone (Haryana, Himachal Pradesh, Jammu & Kashmir, Ladakh, Punjab, Rajasthan): 1,320 projects received ₹41.80 crore The event marked another step in KVIC's ongoing efforts to boost rural entrepreneurship and employment generation through its flagship PMEGP scheme.
Hans India
3 days ago
- Business
- Hans India
KVIC disburses margin money subsidy of Rs 300 crore to 8,794 beneficiaries
Mumbai: Khadi and Village Industries Commission (KVIC) on Thursday said it has disbursed margin money subsidy of Rs 300 crore to 8,794 beneficiaries across the country under the Prime Minister's Employment Generation Programme (PMEGP). The disbursement was made against loan sanction of about Rs 884 crore, said KVIC which comes under the Ministry of Micro, Small and Medium Enterprises. KVIC Chairman Manoj Kumar said that under the visionary leadership and guidance of Prime Minister Narendra Modi, PMEGP scheme has presently created a strong and effective base of self-employment in India. 'Khadi and Village Industries is not just a product today, but it is the essence of vision of Aatmanirbhar Bharat. This scheme has not only provided employment to lakhs of youth, but has also connected them with the power of entrepreneurship,' he added, All the six zones of the country actively participated in the disbursement programme. In total, 2,445 projects were approved for Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, Kerala, Puducherry of South Zone, for which subsidy of Rs 80.26 crore was disbursed. In the Central Zone, subsidy of Rs 91.13 crore was disbursed for 2,366 projects of Uttar Pradesh, Madhya Pradesh, Chhattisgarh and Uttarakhand. A subsidy of Rs 62.68 crore was provided to a total of 2,167 projects in Eastern Zone for Bihar, Jharkhand, Odisha, West Bengal and Andaman and Nicobar and Assam, Manipur, Meghalaya, Mizoram and Tripura in the Northeast. A subsidy of Rs 41.80 crore was given for 1,320 projects of Haryana, Himachal Pradesh, Jammu and Kashmir, Ladakh, Punjab, and Rajasthan in the northern region. At the same time, 496 projects in Gujarat, Maharashtra, and Goa of the Western region received a subsidy of Rs 24.12 crore. Since its beginning till the financial year 2024-25, PMEGP has become a pillar of entrepreneurship and self-reliance in rural and urban India. A total of 10,18,185 micro enterprises have been established under the scheme so far, for which the government has sanctioned a loan of Rs 73,348.39 crore. In return, margin money subsidy of Rs 27,166.07 crore has been provided to the beneficiaries. So far, more than 90,04,541 people across the country have got direct and indirect employment through this scheme, which makes it one of the most effective self-employment schemes in the country.
Indian Express
26-05-2025
- Business
- Indian Express
NITI Aayog proposes concessional loan scheme for medium-sized firms
A new report by NITI Aayog has proposed a concessional loan scheme for India's medium-sized enterprises, arguing that these firms face higher capital costs than both large and small companies. The report titled 'Designing a Policy for Medium Enterprises' released Monday also called for streamlining research and development (R&D) efforts and expanding cluster-based quality testing to help medium firms scale and become more export-competitive. The latest push to support medium-sized firms with cheaper credit comes after the definition of 'medium' was broadened in the Union Budget 2025. Until April 1, medium enterprises were defined as those with a turnover between Rs 50–250 crore and investment of Rs 10–50 crore in plant and machinery. The revised thresholds—Rs 100–500 crore in turnover and Rs 25–125 crore in investment—have expanded the category to cover more firms. 'Medium Enterprises receive much lesser priority sector loans, compared to micro enterprises. Additionally, the interest rates for Medium Enterprises are on average 4% higher than for larger firms, making capital more expensive,' the report said. It proposed a dedicated financing scheme under the Ministry of Micro, Small, and Medium Enterprises (MSME) to allow medium firms to avail loans at concessional rates, capped at Rs 25 crore, with a maximum of Rs 5 crore per request. The report also suggested launching a medium enterprise credit card with a pre-approved limit of up to Rs 5 crore at interest rates aligned with market rates. From over 6 crore registered MSMEs in India, medium enterprises are only 0.3 per cent, the report said. However, average employment per entity is significantly higher amongst medium firms at 89 people, compared to 19 for small and 6 for micro. Medium firms also account for 81 per cent of all MSME investment in R&D. To boost R&D, the report recommended reserving 25-30 per cent of the Self-Reliant India (SRI) Fund for exclusively financing projects by medium firms. The SRI Fund has an allocated of Rs 10,000 crore from the Centre and Rs 40,000 crore from private equity. Since its launch in 2021, a total of Rs 4,885 crore has been invested in MSMEs. 'Adopt EU type funding mechanism in which the government after due process will identify a set of major R&D gaps and invite proposal from the Medium Enterprises to bridge those gaps,' it also said. On quality testing, the report noted key challenges faced by medium enterprises. 'Limited access to affordable, sector-specific testing facilities forces them to rely on distant or private testing centres, increasing operational costs, certification delays, and barriers to global market entry,' it said. It recommended extending the Micro & Small Enterprises Cluster Development Programme (MSE-CDP)—which, among other benefits, provides access to shared testing infrastructure—to medium enterprises as well. At the report launch, NITI Aayog's Vice Chairperson Suman Bery said focussing on skilling and medium enterprises together is crucial. 'On the labour market side, we need to make the transition from informal employment, which is typically associated with micro and small enterprises, to formal employment, associated with the medium enterprise sector. It is with formal employment that firms get an incentive to invest in the training of their workforce,' Berry said. The report by India's apex public policy think tank noted that the availability of skilled labour in India stands at 55 per cent, compared to 88 per cent in South Korea, 85 per cent in the United States, and 81 per cent in Japan. The report recommended real-time skill mapping via the MSME Sampark Portal, expanding skill development schemes like the Entrepreneurship and Skill Development Programme (ESDP), and introducing subsidized, customized training programmes aligned with technology trends. Aggam Walia is a Correspondent at The Indian Express, reporting on power, renewables, and mining. His work unpacks intricate ties between corporations, government, and policy, often relying on documents sourced via the RTI Act. Off the beat, he enjoys running through Delhi's parks and forests, walking to places, and cooking pasta. ... Read More
Time of India
24-05-2025
- Business
- Time of India
Factory workers' complex along e-way to boost MSMEs, startups in Noida
Noida: Eleven flatted factory complexes, each tailored for the proposed industrial parks—medical device, semiconductor, IT, apparel and toy—are set to come up off the Yamuna expressway. The multi-storey industrial buildings will offer around 3,000 affordable and ready-to-use industrial spaces, primarily to (Ministry of Micro, Small and Medium Enterprises) MSMEs and startups, which often lack the capital to establish large-scale standalone factories due to high land allotment costs spurred by Noida International Airport and International Film City, officials said. Flatted factory complex is a multi-storeyed industrial building subdivided into small, separately occupied units, which are used for manufacturing, assembly, and storage purposes. These complexes have separate elevators for goods. The first flatted factory is to come up in Sector 28 where 74 large plots have been allotted for the 350-acre medical device park. The five-acre flatted factory, to be built at an estimated Rs 125 crore, will have 240 units with a mix of 50 units of 120 sqm, 60 of 90 sqm and 126 of 60 sqm. The second complex is to come up in Sector 10 to support the 206-acre electronics manufacturing cluster (EMC) with 228 units along with facilities like a convention centre, a 45-bed hostel, a daycare facility and a 500-seat skill development centre. Two large plots measuring 20,234 sqm and 44,515 sqm have been earmarked for additional flatted factories. CEO Arun Vir Singh said the Authority will lease, not sell, these units to make it easier for emerging businesses to set up operations without the burden of land ownership. Seventy-five per cent of these units will be reserved for MSMEs and 25% for startups. Similar flatted factory projects are also being planned in other parks such as apparel, handicrafts, IT park, data park, semiconductor, EV, and aviation sectors to further support small and emerging enterprises. YEIDA has also initiated a process to appoint a consultant for designing and managing the infrastructure development of Sector 10, where a tech hub is planned, at an estimated cost of over Rs 450 crore. Get the latest lifestyle updates on Times of India, along with Brother's Day wishes , messages and quotes !
