Ahmedabad: Nearly 27% of targeted jobs are actually made in Gujarat under the Prime Minister’s Employment Generation Program (PMEGP) in 2021-22.
About four months before the end of the financial year, only 18,680 people who received work under PMEGP against the target of giving work to 68,536 people, showing data was submitted in Rajya Sabha.
PMEGP is a credit-related subsidy program intended to produce employment opportunities through the establishment of micro companies in rural and urban areas.
The amount of work made under PMEGP was also 18% less than what was produced last year through the scheme.
In 2019-20 and 2020-21, 40% and 43.5% of targeted jobs were given under the scheme.
The government’s source said that because of the second wave of Covid-19 at the beginning of the year, the project was delayed.
Only 27% of the 8,567 projects were run during this time.
“The second wave of Covid-19 was very creepy.
This brings a disruption and causes a large decrease in demand and confidence,” said Pathik Patwari, senior vice president, Gujarat Chamber of Commerce & Industry (GCCI).
Patwari added: “People are not ready to take the risk of starting a new business.” He continued by saying: “Even when the market began to revive and demand back on the market, starting a new business has a challenge attached, especially for micro entrepreneurs.” Patwari said the dramatic increase in the price of all commodities not only caused credit shortages but also cut the tastes of the risk of micro entrepreneurs.
“Uncertainty triggered by a pandemic weakens the trust of micro entrepreneurs,” said Patwari.
At least 1 Crore was employed in the MSME sector, the state government estimate.