Decline of 9% in employment generation under PMEGP
There is a dire need for employment generation in the country and any fall in this number can be critical. In the latest analysis by Assocham, it has bought to light the fall in number of employment opportunities generated under the Prime Minister's Employment Generation Programme (PMEGP). The analysis stated that the number of employment opportunities generated under the PMEGP fell from over 3.5 lakh in 2014-15 to 3.2 lakh in 2015-16, a decline of over 9.5 per cent.
“The number of projects set up under the PMEGP has reduced from over 48,100 in FY15 to about 44, 300,” revealed ASSOCHAM, an industry body. The body analysed data compiled by Ministry of Micro, Small and Medium Enterprises.
The analysis highlighted the status of various states as well. It revealed that Uttar Pradesh topped the job generation under the PMEGP in FY16 compared to other states with over 43,000 jobs. But UP also saw a decline of 11 per cent compared to FY 2015 (as it generated over 48,600 in FY 2015). On one hand, Tamil Nadu and Maharashtra is among the top states in employment generation, but on the other hand these states have witnessed a drop in job generation in FY 2016 compared to FY 2015. States like Bihar and Odisha has continued to maintain the growth momentum.
“The PMEGP is an effective scheme aimed at reducing unemployment and generating sustainable employment opportunities in rural and urban India, but there is a need for banks and other institutions must put in collaborative efforts in place to meet the targets of this programme,” said D S Rawat, secretary general of ASSOCHAM during the release of the findings.
While the number of credit proposals approved under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) increased significantly from just over four lakh to over 5.1 lakh between 2014-15 and 2015-16, the approved amount under this scheme got reduced from Rs 21,200 crore in FY15 to over Rs 19,900 crore in FY16 i.e. a fall of over six per cent.
While the number of MSMEs benefitted under Credit Linked Capital Subsidy Scheme reduced from over 7,200 in FY15 to just over 5,000 in FY16, the amount of subsidy released also declined by over 28 per cent during this period.