Following push from Prime Minister Narendra Modi, the Khadi and Village Industries Commission (KVIC) has achieved more than 100 per cent target of subsidy in 2016-17 allotted for implementation of Prime Minister Employment Generation Programme (PMEGP).
A recent evaluation of the KVIC by Gurugram-based Management Development Institute (MDI) noted that while in 2008-09 the utilisation of total subsidy allotted by Ministry of Micro, Small and Medium Enterprises (MSME) for implementation of PMEGP was less than 50 per cent, it reached 100.37 per cent in 2016-17.
After physical verification of 10,044 PMEGP units (five per cent of the total units) across the country and collecting data from the beneficiaries, stakeholders and external sources, the evaluation study said that average employment per project was 7.66 people, with an average cost of Rs 94,855 for generating unit employment and an average cost per project of Rs 726,760.
“The maximum and minimum costs for generating unit employment were Rs 265,412 (Nagaland) and Rs 25,070 (Tamil Nadu),” the report said.
The study indicated that the average age of the beneficiaries was 36.8 years and 42.39 per cent of them were from SC, ST and OBC categories, besides 5.8 per cent of minorities and 10 per cent women.”With 53 per cent and 45 per cent of beneficiaries involved in manufacturing and services respectively, collateral taken by the banks over and above hypothecation of assets by banks were recorded 46 per cent and 54 per cent respectively,” the report added.
In context with the consumption, the report noted that while majority of the beneficiaries (79.53 per cent) said that their products/services were consumed domestically only, among the rural beneficiaries, the percentage was slightly higher (9.56 per cent) with respect to their urban counterparts (5.84 per cent). “Majority of the beneficiaries (75.07 per cent) reported that the physical verification of their units had been done,” it said.
Expressing happiness at the report's observation, KVIC Chairman Vinai Kumar Saxena said even the Centre has taken cognisance of the success rate of the commission in the implementation of PMEGP.”In the recent budget of 2018-19, we have got Rs 18 billion with respect to previous 2017-18 fiscal’s Rs 10.24 billion, which is 78 per cent growth.
“Since Prime Minister Narendra Modi has a lot of affection with Khadi as he considers it a tool of economical transformation of the country, we will leave no stone unturned to follow and implement his vision,” he said.
Recently, KVIC has tied up with leading brands to sell Khadi wear, opened stores at a few airports, re-branded stores to 'Khadi lounge', started designer Khadi wear besides starting a 'National Khadi Week', and franchising Khadi stores.