Meeting held to review MSME key Schemes Generating Employment

News:The Ministry of Micro, Small & Medium Enterprises(MSMEs) held a meeting to review some of the key schemes such as Prime Minister’s Employment Generation Programme(PMEGP) and Credit Guarantee Fund Trust for Micro and Small Enterprises(CGTMSE).

Facts:

About PMEGP:

• It is a credit-linked subsidy scheme launched in 2008-09 by the Ministry of MSME.
• Aim:To promote self-employment through setting up of micro-enterprises where subsidy up to 35% is provided by the Government through Ministry of MSME for loans up to ₹25 lakhs in manufacturing and ₹10 lakhs in the service sector.
• Implementation:Khadi and Village Industries Commission (KVIC) at the national level.At the State level,the Scheme is implemented through State Khadi and Village Industries Commission Directorates among others.
• Eligibility:Any individual above 18 years of age, Self Help Groups, Institutions registered under Societies Registration Act 1860, Production Co-operative Societies and Charitable Trusts are eligible.

About CGTMSE:

• Launched in 2000 by the Ministry of Micro, Small & Medium Enterprises (MSMEs).
• Aim:To make available collateral-free credit to the micro and small enterprise sector.
• Both the existing and the new enterprises are eligible to be covered under the scheme.
• The Ministry of MSME and Small Industries Development Bank of India (SIDBI) established a trust named Credit Guarantee Fund Trust for Micro and Small Enterprises(CGTMSE) to implement the CGS.
• The corpus of CGTMSE is being contributed by the GoI and SIDBI in the ratio of 4:1 respectively.