Home News India Programme for micro-enterprises: No set goals, flagship scheme dropping steam - india information

Programme for micro-enterprises: No set goals, flagship scheme dropping steam – india information


A flagship programme of the Union govt to assist arrange new micro-enterprises is crippled via structural problems and top fee of non-performing property (NPA), its newest evaluate has underlined.

Top Minister’s Employment Technology Programme (PMEGP), below which banks be offering subsidies value as much as Rs 25 lakh to begin new micro-enterprises, is administered via the micro, small and medium enterprises (MSME) ministry with the assistance of the Union finance ministry.

The programme is to be had for any person above 18, who’ve handed no less than elegance eight exam. Whilst most effective new tasks are regarded as for sanction of loans below PMEGP, self-help teams that experience no longer availed advantages below another public scheme, societies, manufacturing co-operative societies, and charitable trusts also are eligible. It permits marketers to arrange factories or devices via depositing a small phase (margin cash) of the full venture value with banks, which might fund the devices. After a manufacturing facility runs effectively for 3 years, the financial institution would go back a lion’s percentage of the margin cash.

From 2015-16 to 2019-20, public sector banks sanctioned 2,07,639 accounts and help of Rs 10,169 crore was once allocated, in keeping with legit information. Out of those, 82,398 accounts within the production sector got Rs 5,139 crore and 1,25,241 accounts in carrier sector were given the help of Rs 5,030 crore.

However at a up to date legit assembly on audit, MSME secretary AK Sharma and Pankaj Jain, further secretary (banking) mentioned out of the allotment, Rs 1,537 crore has grew to become out to be NPA. The officers additionally identified that greater than 15% NPA within the MSME trade is way upper than the worldwide moderate of 11% for the sphere.

Officers noticed {that a} deficiency in abilities, loss of marketplace learn about, low call for and stiff festival had been the important thing causes for such numerous NPAs.

Out of the 1,537 NPA corporations, 738.14 are in production and 799.39 are within the products and services sector, which is differently a powerful house within the Indian economic system.

Officers additionally identified that whilst generally all central schemes are given particular annual goals, this scheme was once no longer pushed via such a goal. As each the states and the banks labored with out the purpose of finishing the yearly goal of disbursement of loans, the programme misplaced the force.

It’s been additionally noticed that previous the banks had arrange a long-drawn procedure to fund tasks and many of the tasks took a very long time to get approvals.

To restore the venture, the federal government is now making plans to introduce a unmarried window, on-line clearance for marketers in order that they are able to get the cash simply. The Centre additionally plans to behavior an extensive coaching programme to assist doable marketers focal point at the proper marketplace and proper merchandise, officers mentioned.

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