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Phalguna Jandhyala

Hyderabad, Oct 20 The State Office of the Khadi and Village Industries Commission (KVIC) expects to complete the process of forming task force committees for the Prime Minister’s Employment Generation Programme (PMEGP) in the next one week.

“According to the guidelines of the PMEGP task force committees have to be formed in each district of a State. The identification of beneficiaries will be done at the district level by the task force,” Mr K. Mohan Rao, State Director, Khadi and Village Industries Commission, told Business Line.

He added that the task force will have representatives from KVIC, State Khadi and Village Industries Board and State district industries centres (DICs) and banks.

The PMEGP was formed by merging the two schemes – the Prime Minister’s Rojgar Yojana (PMRY) and the Rural Employment Generation Programme (REGP), for generation of employment opportunities through establishment of micro enterprises in rural and urban areas.

Mr Rao said that the district-level targets for the programme will be finalised in conjunction with the State-level bankers committee by the month end. He also said that the subsidy portion target under the programme for Andhra Pradesh is likely to be around Rs 53.19 crore.

The maximum cost of the project admissible under manufacturing sector is Rs 25 lakh, while for the service or business sector it is Rs 10 lakh. The balance amount of the total project cost will be provided by banks as term loan.

Under the PMEGP, banks can sanction 90 per cent of the project cost in case of general category of beneficiary and 95 per cent in case of special category.

Mr Rao said that once the margin money (subsidy) is released, it would be kept in the term deposit receipt for three years at branch level in the name of the beneficiary.

“Since the margin money subsidy is to be provided in the form of grant, it will be credited to the borrowers loan account after three years from the date of first disbursement to the borrower, by the bank,” he added.

According to him, the margin money subsidy will be ‘one-time assistance’, from the Government and for any enhancement of credit limit or for expansion or modernisation of the project, subsidy assistance is not available.

More Stories on : SSI | Andhra Pradesh

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