Friday, August 20, 2010

India calls for bio-diesel units to boost employment

In a bid to boost employment under the ambitious scheme of the Union Government, Prime Minister’ Employment Generation Programme (PMEGP), the government has made special provision to encourage entrepreneurship in the bio-diesel production by offering monetary assistance to the micro enterprises. 

In an announcement made today, the Ministry of Micro, Small and Medium Enterprises today informed that eligible entrepreneurs can establish new ‘micro enterprises’, including bio-diesel producing units, by availing of margin money assistance from Khadi and Village Industries Commission (KVIC) and loans from public sector scheduled commercial banks under PMEGP. 

According to the information provided by the Union minister of State for MSME, Dinsha Patel, when the provision of assistance is made for the new bio-diesel projects under PMEGP, it is essential that viable units are proposed by the beneficiaries so that banks also come forward to finance them under PMEGP. 

“KVIC has been making efforts to propagate bio-diesel production as an enterprise under PMEGP,” said Patel. 

The ministry of MSME has been implementing the PMEGP from 2008-09 for generating employment by setting up ‘micro enterprises’, through KVIC as the nodal agency at the national level and through field offices of KVIC, State/Union Territory Khadi and Village Industries Boards and District Industries Centres at the State/Union Territories level, with involvement of banks. 

Under PMEGP, margin money assistance is provided to the interested persons for setting up new micro enterprises in manufacturing or service sector with substantial credit extended by banks depending upon the project cost and location/category of the beneficiary. 

According to the government data, margin money utilized under the PMEGP during 2009-10 showed largest utilization by Uttar Pradesh (Rs.135.29 crore) followed by West Bengal (Rs.90.55 crore) and Andhra Pradesh (Rs.89.56 crore) for the year 2009-10 (all figures provisional). The total margin money utilized during the year stood at Rs.742.76 crore putting all states together. 

The for the year 2010-11, the allocation for the margin money under the scheme was made to the tune of Rs.836 crore with largest share allocated for Uttar Pradesh (Rs.116.48 crore) followed by Bihar (Rs.87.60 crore) and Madhya Pradesh (Rs.54.40 crore). 

Industry experts believed that the recent provision made by the central government for encouraging bio-diesel units would not only encourage entrepreneurship but also improve the employment scenario in the country. 


No comments: