Amid signs of an economic slowdown in the country and ahead of polls in the State, Chief Minister Devendra Fadnavis on Tuesday launched the Chief Minister Employment Generation Programme (CMEGP), which aims to create 10 lakh jobs in the next five years.
At the launch of the scheme in Worli, Mr. Fadnavis said, “Maharashtra is the leader in foreign direct investment and blessed with a large number of youngsters. The country will not progress until we convert this population into workforce. Maharashtra has created 10.27 lakh small businesses in the last five years with a potential to create 59.42 lakh jobs. This scheme has an important aspect of training with an aim develop businesspersons and generate employment.” Mr. Fadnavis said that in the last five years, the State has regained its lost glory by topping the list of industrially advanced States in the country again.
The scheme aims to develop small and micro businesses and generate employment by setting up one lakh industries. The programme will be implemented through the Directorate of Industries and Khadi and Village Industry Commission. The investment limit for projects in the service sector and the manufacturing sector is ₹10 lakh and ₹50 lakh respectively. The State government will be granting 15% to 35% of the project cost. The beneficiary will have to invest 5% to 10% of the cost, while 60% to 80% of it would be provided through a loan from nationalised or private banks.
The age-limit for beneficiaries has been set between 18 and 45 years for women, and 50 years for the Scheduled Castes and Scheduled Tribes. Women entrepreneurs will be eligible for 30% reservation in the scheme, while SCs/STs will get 20% reservation. Under this scheme, industries won’t have to offer collateral as the government will guarantee to repay the loan.
The State government has set apart ₹500 crore for the scheme this year. Mr. Fadnavis said that the amount could be raised to ₹1,000 or ₹2,000 crore if the scheme gets a positive response.
