AHMEDABAD: Barely 27% of the targeted jobs were actually created in Gujarat under the Prime Minister’s Employment Generation Programme (PMEGP) in 2021-22.
About four months before the end of the financial year, only 18,680 people received employment under the PMEGP against the target of giving jobs to 68,536 people, suggests the data tabled in the Rajya Sabha.
The PMEGP is a credit-linked subsidy programme meant to generate employment opportunities through the establishment of micro enterprises in rural as well as urban areas.
The number of jobs created under the PMEGP is also 18% less than what was generated last year through the scheme. In 2019-20 and 2020-21, 40% and 43.5% of the targeted jobs were given under the scheme.
Sources in the government said that due to the second wave of Covid-19 at the onset of the year, projects were delayed. Merely 27% of the 8,567 projects were executed during this time.
“The second wave of Covid-19 was very sinister. It brought disruptions and caused a great decline in demand and confidence,” said Pathik Patwari, senior vice-president, Gujarat Chamber of Commerce & Industry (GCCI). Patwari added: “People were not ready to take the risk of starting a new business.” He went on to say: “Even as the market began reviving and demand was back in the market, starting a new business had inherent challenges especially for micro entrepreneurs.”
Patwari said the dramatic increase in prices of all commodities not only led to a credit shortfall but also cut the risk appetite of micro entrepreneurs. “The uncertainty triggered by the pandemic weakened the confidence of micro entrepreneurs,” said Patwari.
At least 1 crore persons are employed in the MSME sector, state government estimates say.
