Projects established Employment Generated

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1 Government of Jammu & Kashmir Evaluation Report On Prime Ministers Employment Generation Programme(PMEGP) Kashmir Division ( to ) Projects established under PMEGP and Employment Generated in Kashmir division durring the period to Srinagar Ganderbal Budgam Anantnag Kulgam Pulwama Shopian Baramulla Bandipora Kupwara Leh Kargil Total Projects established Employment Generated Office of the Regional Joint Director, Evaluation & Statistics, Kashmir Directorate of Economics and Statistics, J&K Planning and Development Department Directorate of Economics & Statistics, J&K Page 1

2 Highlights 1) Prime Minister s Employment Generation Programme (PMEGP) is a new credit linked subsidy programme launched by Govt. of India in the year 2008 by merging the erstwhile two schemes viz. Prime Minister s Rozgar Yojna(PMRY) and Rural Employment Generation Programme(REGP). The main aim of PMEGP Scheme is generation of employment opportunities through establishment of micro enterprises in Rural as well as Urban areas of the country through setting up of new self employment ventures/projects /micro enterprises. The instant scheme is in operation in all 12 Districts of the Kashmir Division. The State Level Evaluation Committee (SLEC) desired to conduct the Evaluation of the scheme in Kashmir Division with special reference to district Budgam. 2) During the reference period from to , the number of units reported established under the Prime Ministers Employment Generation Programme(PMEGP) in Kashmir division were 5028 with employment generation of persons. The Project Cost of these units was of the magnitude of Rs lacs. The KVIB had Sponsored maximum number of cases to the extent of 3070 followed by DIC at 1631 and the remaining 327 cases were sponsored by the KVIC. The Project cost per unit works-out to Rs.3.72 lacs. 3) The maximum units were reported established under industrial sector to the extent of 3134 followed by 1712 units under Services Sector. The Business sector claimed established of 150 units and the remaining 32 units were of miscellaneous nature. All the established units were reportedly of individual character and no joint venture was reported established in Kashmir division. 4) In the selected sample block of Budgam, 176 units were reported established during the reference period at the project cost of Rs lacs which works out to Rs.5.01 lacs per unit. The loan component of these 176 units was of the magnitude of Rs lacs and beneficiary share of the order of Rs lacs. The remaining amount of Rs lacs was provided as margin money by the Sponsoring Agency. All the established units were reported of Individual nature and the employment generation was of the magnitude of 1421 at an average of 8.07 persons per unit. 5) 70 units reported established in the sample block were put to evaluation audit in the sample block Budgam. The facts established as a result of the physical verification revealed that 49 units(70%) were set-up and functional on the date of Directorate of Economics & Statistics, J&K Page 2

3 survey. 13 other units(18%) were set-up but closed subsequently due to various reasons. 4 units (6%) were not set-up at all and the remaining 4 units (6%) were not traced in spite of capacity full efforts, as such were treated as fictitious. The Sponsoring Agency of these fictitious cases was persuaded to accompany the Evaluation team for locating the units/beneficiaries but they declined to do so. 6) Out of the 13 non-functional units, only 7 unit holders could respond to enquiry conducted by the Evaluation Teams. All the enquired closed sample unit holders put forth many reasons responsible for closure of their units which included marketing problems, no post establishment support, huge interest charging by banks and non profitability of units. 7) In the 49 functional units, 586 persons were employed comprising of 441 males and 145 females. The employment per functional unit works out to 12 persons. From the functional units the Brick Klins and Embroidery Units were the most employment intensive entities. 8) From the functional unit holders, 53% sample beneficiaries reported that it took them six months to get the loan amount disbursed, whileas 41% revealed that the loan was managed in their favour within three months only. The remaining 6% reported to had been disbursed loan within a period ranging from 1 year to 2 years. 9) Out of 49 sample functional unit holders, 10% reported that margin money was released immediately in their favour. 18% revealed that it was released within 3 months and another contingent of 18% reported to had received it within 6 months. But majority of the unit holders to the extent of 54% had received it within one years time. 10) Among the 46 non-beneficiaries enquired in the field with regard to PMEGP, 70% cited lengthy process as the main cause for not applying for the scheme despite being un-employed. 17% were of the view that they do not like to be burdened under debt. 9% revealed that they were not possessing any technical knowhow to establish the units and 2% lacked entrepreneurship qualities as reported by them. 11) 98% enquired non-beneficiaries were of the view that Govt must explore possibility of providing interest free loans to the un-employed youth for setting up of their venture under PMEGP. 12) While taking all the established facts in view with regard to the PMEGP implementation, it is suggested that the scheme must be supervised over Directorate of Economics & Statistics, J&K Page 3

4 extensively to ensure sponsorship of genuine beneficiaries only. The trend to apply under the scheme for obtaining margin money alone ultimately proves fatal for the scheme and the beneficiaries as well. The selection of beneficiaries under the scheme must be done in the right perspective and for that matter the sincerity of entrepreneurs and implementing Agencies is required to prevail. The Supervision and Monitoring of the scheme implementation at all possible levels and at every stage would arrest the wrong doing to a great extent. Directorate of Economics & Statistics, J&K Page 4

5 Contents Chapter No Description of Chapter. Page Nos I Introduction 1 4 II Divisional Level Profile 5 25 III Field Findings IV Views of Knowledgeable Persons V Summary of Main Findings VI Bottlenecks & Suggestions Directorate of Economics & Statistics, J&K Page 5

6 Introduction: Chapter - I Prime Minister s Employment Generation Programme (PMEGP) is a new credit linked subsidy programme launched by Govt. of India in the year 2008 by merging the erstwhile two schemes viz. Prime Minister s Rozgar Yojna(PMRY) and Rural Employment Generation Programme(REGP). It aims at generation of employment opportunities through establishment of micro enterprises in Rural as well as Urban areas. This is a centrally sponsored scheme being administered by Ministry of Micro, Small and Medium Enterprises i.e. MOMSME. The scheme is in operation through KVIC, a statutory organization under administrative control of the Ministry of MSME as the single nodal agency at the National level. At the state level the scheme is under implementation through State KVIC Directorates, State KVIB,s, DIC,s and banks. The Govt. subsidy under the scheme is routed by KVIC through the identified banks for eventual distribution to the beneficiaries/ entrepreneurs in their bank accounts. The main objective of the scheme is to generate employment opportunities in Rural as well as Urban areas of the country through setting up of new self employment ventures/projects /micro enterprises. To bring together widely dispersed traditional artisans and un-employed youth and give them self employment opportunities to the extent possible at their place and to increase the wage earning capacity of artisans. The maximum cost of project under manufacturing sector is Rs lakhs and service sector Rs lakhs. The quantum of beneficiary contribution is 10% in case of general category with subsidy component of 15% in urban and 25% in rural. Likewise 5% in case of special category of the total project cost with subsidy component of 25% in urban and 35% in rural. The balance amount of the project cost is to be provided by banks as term loan. Minimum qualification prescribed is 8 th pass and selection of beneficiaries is done through interview process by the District Task Force Committee headed by the District Magistrate/Deputy Commissioner. The programme is now under implementation in all the districts of J&K state. In the 5 th meeting of State Level Evaluation Committee (SLEC) held on under the chairmanship of Principal Secretary to Govt. Planning and Development Department in his office chambers, it was decided to evaluate Directorate of Economics & Statistics, J&K Page 6

7 the PMEGP scheme in Kashmir Region through Regional Joint Director, E&S Kashmir. It was further stipulated that sample size shall be kept at 30 to 40% for making Evaluation Study report result/outcome oriented as per the aspirations of the SLEC. Objectives of the Evaluation study: i. To assess physical/financial progress under PMEGP ii. To assess physical status of units/projects established under the scheme. iii. To assess impact of scheme over the economic status of sample beneficiaries benefitted under the programme and generation of employment opportunities. iv. To assess the problems/inconvenience confronted by the sample beneficiaries, bottlenecks/difficulties faced by implementing department if any, and suggestion of remedial measures for better implementation of the programme in future. v. To see whether the norms laid down for the programme were adhered to, particularly with regard to selection of beneficiaries. vi. To see whether the subsidy element provided under the scheme was disbursed to the beneficiaries in time. Coverage: Out of eight CD blocks of District Budgam, Evaluation Study was conducted in CD block Budgam having maximum coverage under the programme. Units established in urban areas of Block Budgam were also included during the course of field investigations. Source of the Data: The secondary data was collected from KVIC, KVIB and DIC as per prescribed formats. Primary data as per the requirements of evaluation audit was collected in the field in respect of sample projects/ units as per devised formats from concerned unit holders. Sample size and selection: The evaluation study was conducted in sample block Budgam with 40% sample size out of total number of projects/units (sanctioned/ disbursed) within the reference period For making Evaluation study result/ outcome oriented, the selection of units was done as per the below mentioned Directorate of Economics & Statistics, J&K Page 7

8 weightage procedure to ensure selection of more units having completed gestation period:- Year Weightage (%) Ratio The sample size which finally emerged was in the ratio of 4:3:2:1 in respect of four reference years mentioned above. The ultimate selection of sample was done through simple random sampling covering thereby sample units of each category of beneficiaries across urban/ rural divide. Reference Period: The official data was collected for the period in respect of all the districts of Kashmir division to portray the divisional level implementation profile of the Programme. However, micro level details were obtained in respect of sample district Budgam to facilitate field operations. The primary data was, however, collected in respect of sample block Budgam with reference period Instruments of Investigation: A set of four schedules/formats was devised for the purpose of study. Format-I (official data) For all concerned implementing agencies Format-II (official data) -do- Format-III (official data) -do- Schedule-IV (for sample projects/ units) Schedule-V (For unemployed non beneficiary) Field Work and supervision: The field work and scrutiny of schedules was carried out by the staff of District Statistics & Evaluation Officer(DSEO) under the close supervision of DSEO Budgam and senior officers of RJDK/DES. Directorate of Economics & Statistics, J&K Page 8

9 Tabulation and Report writing:- Tabulation of official/ field data was done by the staff of DSEO under the technical guidance of Regional Joint Director Kashmir and report writing was completed by the office of Regional Joint Director Kashmir. Analytical Tools: Simple averages and percentages were used as analytical tools in the Evaluation report. In order to enhance the presentation of the report and to make phenomenon easy for comprehension, graphs and diagrams were also made use of at appropriate places. Directorate of Economics & Statistics, J&K Page 9

10 Chapter-II Division level profile: Unemployment is one of the major problems confronted by all nations irrespective of their economic conditions. At country level it has remained a big challenge for all governments over the years particularly for educated youth it has acquired alarming dimensions. With the regular annual incremental increase thousands of unemployed educated youth enter into the growing list of the unemployed, largely due to the economic distress, mismatch of resources and above all capitalistic policies squeezing space for growing employment needs of growing population. The task of overcoming the unemployment problem could only be resolved to a considerable extent by providing jobs to the unemployed educated youth outside the Government Departments and by promoting the self-employment ventures by providing required finance, facilities and infrastructure. Like all other states the state of Jammu and Kashmir has a high rate of unemployment, particularly among the educated youth. Almost 6 lakh people are unemployed in the State. The problem has further accentuated due to the fact that avenues for private employment are very restricted. This causes a strain on the resources of the State and hampers developmental activities. With a view to provide a lasting solution and overcoming the problem of educated unemployed youth various schemes were devised and launched by both the governments at the centre and the State. The instant scheme is in operation in all 12 Districts of the Kashmir Division. In order to assess its impact, it was desired by State Level Evaluation Committee (SLEC) to conduct the Evaluation of the scheme in district Budgam. However, prior to focus the effect of PMEGP in district Budgam, it is worth to throw light on its impact in the whole Kashmir Region, which is consisting of twelve (12) districts. The District wise financial status of the units/projects sponsored under the Scheme during the period from to is reflected in the following table:- Directorate of Economics & Statistics, J&K Page 10

11 Table No -1 District wise Financial Status of Units/Projects Disbursed during the period to S/ Total No: Disbursed Units/Projects Total No. Expected Employment No District Sector No. Project cost Beneficiaries Generation 1. Srinagar DIC KVIB KVIC Dist: Total Ganderbal DIC KVIB KVIC Dist: Total Budgam DIC KVIB KVIC Dist: Total Anantnag DIC KVIB KVIC Dist: Total Kulgam DIC KVIB KVIC Dist: Total Pulwama DIC KVIB KVIC Dist: Total Shopian DIC KVIB KVIC Dist: Total Baramulla DIC KVIB KVIC Dist: Total Bandipora DIC KVIB KVIC Dist: Total Kupwara DIC KVIB KVIC Dist: Total Directorate of Economics & Statistics, J&K Page 11

12 11. Leh DIC KVIB KVIC Dist: Total Kargil DIC KVIB KVIC Total Kashmir Division Dist: Total DIC KVIB KVIC G. Total While going through the figures of the above table, it indicates that during the period from to , a total number of 5028 units/projects were disbursed with the total project cost of Rs lacs. Out of 5028 cases, 1631(32.44%) case were disbursed through DIC, 3070 (61.05%) cases through KVIB and 327(6.50%) cases through KVIC. The maximum numbers of units to the magnitude of 768 with Rs lacs project cost were disbursed in District Baramulla and the minimum number in District Shopian. It is being witnessed that the total number of beneficiaries covered under the programme during the period from to was 5028 with the number of expected employment generation of persons. Not a single unit under Joint Venture was sponsored by any of the sponsoring agencies which is a peculiar feature of the Prime Ministers Employment Generation Programme(PMEGP) implementation in Kashmir Division. The following table provides information on the physical aspects of the porgramme across the districts of Kashmir division separately for all the three implementing agencies:- Directorate of Economics & Statistics, J&K Page 12

13 S/ No Table No - 2 District wise Physical Targets & Achievements during the Period from to Sponsorship Sanctioned Cases Disbursed Cases Total Unemployed Youth Benefitted Left over Sanctioned Cases spill over to next year District Sector Tar-get Ach: Total Spill New Total Spill New over over Srinagar DIC KVIB KVIC Dist: Total Ganderbal DIC KVIB KVIC Dist: Total Budgam DIC KVIB KVIC Dist: Total Anantnag DIC KVIB KVIC Dist: Total Kulgam DIC KVIB KVIC Dist: Total Pulwama DIC KVIB KVIC Dist: Total Shopian DIC KVIB KVIC Dist: Total Baramulla DIC KVIB KVIC Dist: Total Bandip ora DIC KVIB KVIC Dist: Total Directorate of Economics & Statistics, J&K Page 13

14 Kupwar a DIC KVIB KVIC Dist: Total Leh DIC KVIB KVIC Dist: Total Kargil DIC KVIB KVIC Dist: Total Total Kmr Division DIC KVIB KVIC G. Total The information provided by the Implementing Agencies revealed that the targets set under the Scheme for the reference period were only to the extent of 2457 units. The Sponsorship was made of the order of 9522 which was understandbly so to enable the sanctioning and disbursing authorities to exercise their choice for the viability of units and safety of their finances. From the 9522 sponsored cases 5431 cases were sanctioned by the financial institutions and finally 5028 cases were disbursed benefitting equal number of unemployed youth. The figures provided by the Implementing Agencies brings this fact to the fore that the fixation of targets was unrealistic and had no relevance to the achievement of ultimate targets. The fixation of targets should have been done keeping in view the resources provided under PMEGP, Bank Commitments, implementation mechanism and the quantum of unemployed youth expected to go for establishment of units etc. But the exercise does not seem to have been done. The fixation of targets seems to have been done with no regard to the related factors. The reason for non-disbursement of benefits to 403 left-over sanctioned cases was obviously the fact that targets were already achieved in excess. Directorate of Economics & Statistics, J&K Page 14

15 Number of Cases Physical Targets & Achievements under PMEGP in Kashmir division during the period from to Cases Sponsorsed Cases Sanctioned Srinagar Ganderbal Budgam Anantnag Kulgam Pulwama Shopian Baramulla Bandipora Kupwara Leh Kargil Total Kmr Districts Div Directorate of Economics & Statistics, J&K Page 15

16 Under Prime Ministers Employment Generation Programme(PMEGP), units could be sponsored and sanctioned under Business, Industry, Service and other Miscellaneous sectors which have the potential to provide employment to the educated youth on sustainable basis. During the period under review, the sponsoring agencies were able to get 3134 cases disbursed from Banks under Industry Sector, 1712 under Services Sector, 150 under Business Sectors and 32 cases under Other/Misc Sector in Kashmir division. The maximum number of cases to the extent of 3070 were sponsored by KVIB followed by 1630 by DIC and the remaining 327 cases by the KVIC. The expected employment generation was estimated to be of the magnitude of persons. The Position is reflected in the following table on districtwise basis:- Table No- 3 District wise Breakup of Units/Projects Disbursed during to S. N o District Sector Business (No: of) Service (No: of) Industry (No: of) Others (No: of) Total Of which Employment Pro- Individual Venture ated Joint Gener- Units Benf: Units Benf: Units Benf: Units Benf: jects Benf: Srinagar DIC KVIB KVIC Dist: Total Ganderbal DIC KVIB KVIC Dist: Total Budgam DIC KVIB KVIC Dist: Total Anantnag DIC KVIB KVIC Dist: Total Kulgam DIC KVIB KVIC Dist: Total Pulwama DIC KVIB KVIC Dist: Total Directorate of Economics & Statistics, J&K Page 16

17 7. Shopian DIC KVIB KVIC Dist: Total Baramulla DIC KVIB KVIC Dist: Total Bandipora DIC KVIB KVIC Dist: Total Kupwara DIC KVIB KVIC Dist: Total Leh DIC KVIB KVIC Dist: Total Kargil DIC KVIB KVIC Dist: Total Regional Total DIC KVIB KVIC G. Total Directorate of Economics & Statistics, J&K Page 17

18 Projects established under PMEGP with Employment Generation peotential in Kashmir division durring the period to Srinagar Ganderbal Budgam Anantnag Kulgam Pulwama Shopian Baramulla Bandipora Kupwara Leh Kargil Total Kmr Projects established Financial Progress in Budgam: Under Prime Minister s Employment Generation Programme definite guidelines are laid down regarding the quantum and nature of financial assistance. As per the guidelines the maximum cost of the project/unit admissible under manufacturing sector is Rs.25 lakhs and that of the project/unit admissible under business/service sector is Rs.10 lakhs. Similarly the beneficiary, contribution is 10% of the project cost in case of General Category and that of special category it is only 5% of the project cost. As far as rate of subsidy is concerned in case of general category it is 15% of the project cost for urban beneficiary s & 25% for rural beneficiary. Similarly for special category the rate of subsidy is 25% of the project cost for urban population & 35% for rural beneficiary. As per the aspirations of the SLEC, the Study was to be confined to a single district which was eventually selected to be district Budgam. Before analyzing the field findings, it is necessary to have a full view of the achievements in the sample district under the scheme. The following table provides information on units disbursed by the concerned implementing agencies with the quantum of Project cost:- Directorate of Economics & Statistics, J&K Page 18

19 S. No. Year Table no. 4 Project cost of the units benefitted during the reference period to Number of disbursed cases Project Cost Total DIC KVIB KVIC DIC KVIB KVIC Total (Rs. in lakhs) Total The above table reveals that the amount of project cost calculated for 530 disbursed cases was amounting to Rs /- lakhs during the period under reference, out of which Rs /- lakhs were calculated by KVIB in respect of 459 disbursed cases, Rs /- lakhs by DIC for 50 cases and Rs /- lakhs by KVIC for 21 cases. The Banks are supposed to sanction 90% of the project cost in case of General Category of beneficiary and 95% in case of special category of the beneficiary and disburse full amount suitably for setting up of the project. Banks can finance capital expenditure in the form of Term loan and working capital in the form of cash credit. Projects can also be financed by the Bank in the form of composite loan consisting of capital expenditure and working capital. The amount of Bank credit will be ranging between 60-75% of the total project cost after deducting 15-35% of margin money (Subsidy) and 10% owner s contribution from the beneficiaries belonging to the general category and 5% from beneficiaries belonging to special categories. The breakup of project cost as approved by the sponsoring agencies in respect of the disbursed cases is given hereunder:- Directorate of Economics & Statistics, J&K Page 19

20 Table No.5 FINANCIAL BREAKUP OF PROJECT COST OF RECOMMENDED LOAN AMOUNT DURING REFERENCE PERIOD TO (Unit - Rs. in lacs) S. N o. Year No. of cases disburse d Break up of project cost Loan Component Margin Money Beneficiary Share DIC KVIB KVIC Total DIC KVIB KVIC Total DIC KVIB KVIC Total Total Directorate of Economics & Statistics, J&K Page 20

21 As indicated in the previous table that an amount of Rs /- lacs were calculated as project cost for establishing 530 units by different agencies during the period under report. In the whole district the above table reflects the breakup of the recommended project cost. The project cost, has three components namely Loan Component, Margin Money and Beneficiary Share. It can be seen from the above table that out of the recommended project cost of Rs , the loan component was worked out to be Rs /-(60.21%) lakhs, Margin Money was worked out to Rs /- (34.79%) lakhs and beneficiary share was calculated as Rs /- (5%) lakhs. The expenditure made on account of Margin Money against the availability in respect of 530 disbursed cases is reproduced hereunder in the following table:- Table No. 6 Year wise financial position of margin money in district Budgam during the reference period to (Unit - Rs. in lacs) S. No. Year No. of disbursed cases Availability Expenditure on A/c of Margin Money DIC KVIB KVIC Total DIC KVIB KVIC Total %age % % % % Total % %age Total 11% 82% 7% 100% 11% 82% 7% 100% The above table reveals that Rs /- lakhs were made available to meet the expenditure on account of margin money to be adjusted in respect of 530 beneficiaries. The whole amount was adjusted during the period under Directorate of Economics & Statistics, J&K Page 21

22 reference thereby registering 100% expenditure. The funds made available on account of margin money in respect of DIC were Rs.88.22/-(11%) lacs, Rs /- (82%) to KVIB and Rs.55.96/- (7%) to KVIC during the reference period. Table No. 7 Year-wise position of targets and achievements in district Budgam S.No. Year Target Sponsorship DIC KVIB KVIC Total DIC KVIB KVIC Total %age to target % % % % Total % The above table indicates the overall picture of the targets set for establishment of units during the period under report and its sponsorship profile in respect of district Budgam. The figures reflected that during the reference period 664 cases were sponsored by the implementing agencies viz DIC, KVIB, KVIC to the banks against the target of 562 cases showing over sponsoring of 18%. It is evident from the above table that sponsoring the cases to the banks have shown increase which is a healthy trend. Although the sponsoring agencies viz KVIB & KVIC have sponsored the cases throughout the reference period but DIC has not sponsored any case during the year for the reasons better known to them as no concrete reasons were given in this regard. The cases sponsored during the year by sponsoring agencies were 52 against the target of 53. Thereafter the sponsoring of cases had throughout been on the higher side. During , and the sponsoring of cases was 117%, 114% and 125% respectively as against set targets. The sponsoring in addition of targets was evidently to enable financial institutions to exercise their choice in sanctioning and disbursing of cases from their standards for safety and recovery of the loan amounts. After proper scrutiny of the applications, ascertaining the viability and feasibility of the ventures opted by the target beneficiaries, the cases are Directorate of Economics & Statistics, J&K Page 22

23 sponsored by the implementing agencies to the banks for sanction of the loans in favour of the beneficiaries. The following table depicts the details of cases sanctioned during the reference period:- Table No. 8 Year-wise details of sanctioned cases during reference period to S.No. Year Target Sponsorship Sanctioned DIC KVIB KVIC Total DIC KVIB KVIC Total DIC KVIB KVIC otal % % % % ge to target Total % The year wise details of the cases sanctioned against the sponsored cases is depicted in the table given above. Perusal of the above table reveals that against the total number of 664 sponsored cases, 584 cases were sanctioned with an achievement of 88%. Further, it transpires from the above table that among the sanctioned cases the maximum number of cases viz 476 (87%) were KVIB sponsored, and least number of cases were viz 21 (4%) were KVIC sponsored cases. The overall sanctioning had been of the magnitude of 584 cases against the target of 664 thus registering an achievement of 88%. RsAlthough, the sponsoring of the cases to the banks was over by 18% than what was actually targeted for, the ultimate achievement of the targets can be construed only in terms of disbursed cases, followed by setting up of the units. The information regarding the disbursement of cases against the sanctioned ones is reflected in the table reproduced hereunder:- Directorate of Economics & Statistics, J&K Page 23

24 Table No. 9 Year-wise details of disbursement of cases during reference period to in district Budgam S. No. Year Sanctioned cases Disbursed Cases DIC KVIB KVIC Total DIC KVIB KVIC Total %age Ach % % % % Total % Directorate of Economics & Statistics, J&K Page 24

25 The above table reflects the position of disbursed cases during the period under reference. Against 584 sanctioned cases, 530 cases were disbursed registering an overall achievement of 91%. It can be seen from the above table that achievement in respect of disbursement of cases witnessed increasing trend year after year which is a healthy sign. This piece of information reflects that financial institutions are taking active part in empowering the local youth by way of establishing their own ventures. During the year , the achievement in respect of disbursement of cases remained 67%, with relation to sanctioned cases which rose upto 93% during the year Furthermore, among the 530 disbursed cases 50 (9%) were DIC sponsored, 459 (87%) were KVIB sponsored and 21 (4%) were KVIC sponsored cases. Prime Minister s Employment Guarantee Programme (PMEGP) aims at generation of employment opportunities at local level by way of setting up of new self employment opportunities, ventures/projects/micro enterprises. The details regarding the unemployed youth benefitted under the instant programme during the reference period is reproduced in the table hereunder:- Table No. 10 Agency wise details of unemployed youth benefitted in district Budgam during the reference period to S.No. Year Total Unemployed Youth Benefitted DIC KVIB KVIC Total Total The perusal of the above table reflects that 530 unemployed youth were benefitted under the scheme PMEGP during the reference period to , thereby reflecting that all the sanctioned cases were of individual nature and as such no case under joint venture was sanctioned. In schemes like PMEGP there always remains a gap between the sanctions and disbursements, usually arising due to non completion of the Directorate of Economics & Statistics, J&K Page 25

26 formalities within the stipulated time period or party not coming forward as reported by the financial institutions etc., These left over sanctioned cases are treated as spillover and carried to next year. The year wise details of the leftover sanctioned cases to next year are reflected in the table given below:- Table No. 11 Year-wise / agency wise details of the left over cases to next year S.no. Year Left over sanctioned cases to next year DIC KVIB KVIC Total The data in the above table reveals that out of 584 sanctioned cases, 54 (9%) cases were in aggregate left to next financial year during the reference period to As can be seen from the above table that out of 54 left over cases, 50 (93%) were from KVIB & 4 (7%) were from DIC. No case was left over to next financial year in respect of the cases sponsored by KVIC. Prime Minister s Employment Guarantee Programme (PMEGP) is applicable to all new economically viable micro enterprises, including village industrial projects. These economic activities have been properly categorized into Business, Industry and Service. The activity wise number of units sanctioned during the period under reference is given under:- Directorate of Economics & Statistics, J&K Page 26

27 Table No. 12 Category wise number of cases distributed under PMEGP alongwith number of beneficiaries during to in district Budgam S.No Year Category wise distribution of cases Business Service Industry Total DIC KVIB KVIC Tota l DIC KVI B KVIC Total DIC KVIB KVIC Total (-) -(-) -(-) -(-) -(-) 2(2 ) -(-) 2(2) -(-) 31(3 1) 2(2) 33(33) 35(35) (-) -(-) -(-) -(-) 1(1) 4(4 ) 2(2) 7(7) 9(9) 65(6 5) 4(4) 78(78) 85(85) (-) -(-) -(-) -(-) -(-) 8(8 ) 2(2) 10(10) 23(23) 108( 108) 4(4) 135(13 5) 145(145) (-) -(-) -(-) -(-) 1(1) 25( 25) 3(3) 29(29) 20(20) 21(2 1) 4(4) 236(23 6) 265(265) Total -(-) -(-) -(-) -(-) 2(2) 39( 39) 7(7) 48(48) 52(52) 416( 416) 14(1 4) 482(48 2) 530(530) The perusal of the above table reveals that out of 530 disbursed cases no case was disbursed under business category. 48(9%) cases were disbursed under services sector and rest of the cases viz. 482 (91%) were disbursed under industry sector benefitting same number of beneficiaries. This piece of information highlights that industries sector has attracted more entrepreneurs and generated more employment. Any individual above 18 years of age and institutions like Co-operative Societies, Charitable Trusts, Self Help Groups (SHGs) can avail the benefits under this scheme. As such the units can be established in individual capacity or as a joint venture. The details of the cases disbursed under individual capacity and joint venture is given in the table hereunder- Directorate of Economics & Statistics, J&K Page 27

28 Table No. 13 Category wise units established during to in district Budgam S.No. Year Individual Joint Venture DIC KVIB KVIC Total DIC KVIB KVIC Total Total Total The above table reflects that all the 530 disbursed cases were of individual nature and no case was disbursed under joint venture, as already stated in the foregone paragraphs. It can further be seen from the above table that a gradual increasing trend was observed during the reference period. This reflects both popularity of the scheme and enthusiastic approach of the stakeholders in the implementation of the scheme. In order to cope up with mounting problem of unemployment particularly of the educated youth and to promote self employment opportunities, PMEGP has been launched by Government of India to tackle the problem. This scheme has multi pronged approach by way of stimulating the growth and development and also generate employment opportunities. The table reflecting the employment in overall district Budgam after establishing of 530 units is reproduced hereunder- Table No. 14 Year wise employment generation due to PMEGP in district Budgam during to S.No. Year Total No. of cases Number Of Persons Employed disbursed DIC KVIB KVIC Total Total Directorate of Economics & Statistics, J&K Page 28

29 As discussed in foregone paragraphs 530 cases were disbursed comprising of service sector and industry sector during the period under reference in district Budgam under PMEGP scheme. As can be seen from the above table 4912 persons got employed in whole district on establishing 530 units. The minimum number of persons viz 309 were employed during the year by the establishment of 35 units. In the units established were 85 which provided employment to 651 persons and during a contingent of 1103 persons were employed in 145 new units. During the last reference year the establishment of 265 more units facilitated employment for 2849 persons. In all during the four year reference period 4912 persons were employed in the 530 units established under the scheme at the rate of 9.26 persons per unit. As per the guidelines of PMEGP special focus is given to the special categories. In the laid guidelines of PMEGP beneficiaries are categorized into two groups viz general category and special category which include SC/ST/OBC/ Minorities/Women/Ex-Servicemen/Physically challenged, Hill & Border areas etc. The details regarding the beneficiaries as per the social category is given in the table hereunder:- Table No. 15 Category wise details of beneficiaries benefitted during the reference period to S. No. Year Total Number of projects established General Category Special Category DIC KVIB KVIC Total DIC KVIB KVIC Total DIC KVIB KVIC Total Total From the above table it can be observed that out of total 530 disbursed cases, 509 (96%) cases were disbursed among general category beneficiaries and 21(4%) were disbursed among special category beneficiaries. All the beneficiaries benefitted under general category stand sponsored by two agencies Viz. DIC & KVIB while as all the beneficiaries benefitted under special category stand sponsored by KVIC during the reference period Directorate of Economics & Statistics, J&K Page 29

30 Chapter-III Field Findings In order to compare the official claims, regarding implementation of the scheme during the reference period to with the ground realities reported/observed during the field enquiry are reflected in this chapter. As per the approved design, out of eight CD Blocks of District Budgam, the evaluation study was conducted in CD Block Budgam having maximum coverage under the programme, which also included the coverage of units established in urban areas of CD Block Budgam. During the reference period to , 176 units/projects were established by sponsoring agencies viz DIC, KVIB & KVIC. As per the approved guidelines the selection of units was done as per the below mentioned weightage procedure to ensure selection of more units having completed gestation period:- Table No. 16 Year wise details of sample size Year Weightage (%) Ratio The total number of units established by different sponsoring agencies viz DIC, KVIB, KVIC during the reference period to alongwith the sample selected as per stipulated procedure is provided hereunder:- Table No. 17 Agency wise details of sample selected for field enquiry Agency Year Total DIC KVIB KVIC Total Sample to be (28) (21) 14 (07) 70 Selected Sample selected Directorate of Economics & Statistics, J&K Page 30

31 As can be seen from the above table that 176 units were established in CD Block Budgam during the reference period to As per the approved design 40% sample size out of total number of projects/units were to be selected for field enquiry. Keeping in view the above mentioned weightage 28 units were to be selected among the units established during , 21 among established during , 14 among established during and 07 among the units establish during As per the ground level situation the sample selection procedure was adapted. In respect of year and , all the units reported established were selected. In respect of instead of selecting 14 units, 28 units were taken up for enquiry. In all 70 units were selected for field auditing. The field operations were carried out by the staff of District Statistics and Evaluation Officer of District Budgam under the close supervision of RJDK. The year-wise/agency-wise position of the sample units as on date of survey is reflected hereunder:- Directorate of Economics & Statistics, J&K Page 31

32 Units set up and functional Units Closed Units not set up at all Units not traced Total Set up and functional Closed Not set up at all Units not traced Total Setup and functional Closed Not set up at all Units not traced Total Setup and functional Closed Not setup at all Units not traced Total Table No.18 STATUS OF THE SAMPLE UNITS AS ON DATE OF SURVEY DIC KVIB KVIC Total No. of sample units No. of sample units No. of sample units No. of sample units S.N o. Year Total Directorate of Economics & Statistics, J&K Page 32

33 It can be seen from the above table that out of 70 sample units, 49 (70%) were found set up and functional, 13 (18%) units were found closed, 4 (6%) were not set up and 4 (6%) could not be located at all. The analysis of the table reveals that during the period under reference out of 12 sample units selected for field enquiry in respect of DIC Budgam, 8 (67%) were found set up and functional, 3 (25%) were closed and 1 (8%) was not set up at all. With regard to KVIB, out of 56 sample units, 41 (73%) were found set up and functional, 10(18%) were found closed, 3(5%) were not set up at all and 2(4%) could not be located. As far as KVIC is concerned the two units which were a part of selected sample could not be located by the field investigators. During the course of investigation, four number of units could not be traced by the field investigators although implementing agencies were requested fervently to accompany the investigating team so that these units could be located. Out of these four units two were sponsored by KVIB and 2 by KVIC. The details in respect of these units is given below:- 1. As per the official claims two units with line of activity as textile were established by two beneficiaries during the year with overall project cost of Rs.10.00/- lacs and an amount of Rs.3.50/- lacs were released as margin money in their favour. The particulars of the non traceable beneficiaries are as: a) M. Ashraf Dar S/o: M. Jamal Dar R/o: Bemina Byepass. b) Irshad Ahmad Khan S/o: M. Abdullah R/o: Bemina Byepass. 2. Two more units which were falling in the sample selected in respect of the KVIC could also not be traced during the field investigations. The particulars of the non traceable units are given below:- a) Farooq Ahmad Malik S/o: Khazir Mohammad R/o: Soibug, with line of activity as Embroidery. b) Syed Zahid Abdullah S/o: Syed Mohammad Allaudin R/o:Soibug with line of activity as Embroidery. This needs to be looked into by the concerned authorities, as to how they have been able to avail the benefits with fake particulars. Directorate of Economics & Statistics, J&K Page 33