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Pune’s record among worst: Special scheme for bridging urban-rural entrepreneurship gap fails to take off in state

Few districts have managed to implement PMEGP scheme, introduced in ’08

As Maharashtra continues to grapple with the issue of growing urban-rural imbalance in terms of industrialisation, a special scheme meant to encourage rural entrepreneurship has failed to take off. Documents accessed by The Indian Express from the Directorate of Industries show that only a handful of the 35 districts have managed to ensure proper implementation of the scheme, with the majority not even coming close to the halfway mark. Pune has also been pulled up as a district that had failed to implement the special scheme successfully.

The Prime Ministers Employment Guarantee Programme (PMEGP), the scheme was introduced in 2008 to help the growth of rural entrepreneurship. Under the scheme, entrepreneurs were to be given ‘one-time assistance’ in the form of Margin Money. The guidelines issued for the scheme had specified that at least 50 per cent of the approved projects should be in the rural areas. Preference was to be given to areas with more rural and backward areas. District Industry Centres (DIC)s were to implement the schemes at the district level.

Figures show that for the 2012-13 and 2013-14 fiscals, 15 and 19 districts had failed to meet the guidelines of compulsory 50 per cent rural projects. In 2012-13, Amravati, Beed, Kolhapur, Akola, Aurangabad and Satara districts had reported more than 40 per cent of the approved projects in rural areas.

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In 2013-14, the districts of Yavatmal, Thane and Jalgaon had managed to have 40 per cent of the approved projects in rural areas. The remaining districts had failed the meet the mark by wide margins. Pune, which is one of the highly industrialised districts, had only 34 per cent and 19 per cent of the approved projects in rural areas in this period. Pune has the worst record in ensuring rural industrialisation under the scheme. Lack of industries in rural areas and over-concentration of industries in urban areas have, over the years, led to various imbalances in Pune. Growth of slums, unauthorised construction are some of the fallouts.

Officials at the Pune DIC said that in many cases, the projects were not approved due to criterion of the district-level banks. “Most of the projects were rejected at the bank level itself,” an official said.

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Anant Sardeshmukh, director-general of MCCIA, blamed the failure of the implementing agencies for the growing rural-urban gap in industrialisation profile of the district. “While implementing the schemes all the agencies should work in tandem and not in a piece meal approach. One of the major issues the rural entrepreneurs face is that of proper infrastructure,” he said. Market selection, power supply are also major hurdles faced by the rural industries. Sardeshmukh said for schemes such as this to succeed, it is crucial that all the agencies concerned work together.


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First uploaded on: 31-07-2015 at 03:56 IST
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