Migrants Employment Generation Programme

About Migrants Employment Generation Programme

Non-Resident Tamils who came back to Tamil Nadu because of the Covid-19 Pandemic are the focus of the “Migrants Employment Generation Programme (MEGP)”, an initiative of the Government of Tamil Nadu. Implementation rests with the Commissionerate of Industries and Commerce, which serves as the Nodal Agency at the State Level. As per the Government’s order, the implementing agencies working alongside this Commissionerate are the District Industries Centre (DICs) of each concerned District and, for Chennai District, the Office of the Regional Joint Director of Industries and Commerce. Across the world, the Covid-19 pandemic has thrown the economy into turmoil, leaving many migrants without work and compelling them to go back to their native places. Many of these returnees have spent years abroad honing skills in their fields, and the scheme seeks to harness that experience by helping those who wish to become small scale Entrepreneurs. By turning eligible returnees into Small Scale Entrepreneurs, the programme aims to ease unemployment among the large number of COVID returnees while also creating jobs for others. It is to be carried out in ongoing consultation with the Micro, Small, and Medium Enterprises Departments, which already run a comparable scheme for the unemployed youth of Tamil Nadu. Objectives:

1. Creating jobs for migrant returnees who came home because of Covid, by helping them launch self-employment ventures as Microenterprises in the Manufacturing service and Business Sectors. 1. Offering a means of livelihood to migrant returnees whose jobs and incomes were lost due to Covid. 1. Enabling collateral-free advances under the Credit Guarantee Trust for Micro, Small Enterprises (CGTMSE), dovetailed with the Unemployed Youth Employment Generation Programme.

Nodal Agency: At the State level, the Commissionerate of Non-Resident Tamils acts as the Nodal Agency, with implementation carried out through the Commissionerate of Industries and Commerce. Areas of operation: Every area of the State, whether rural or urban, is covered by the scheme. Implementing Agencies: Working in coordination with the Commissionerate of Non-Resident Tamils, the District Industries Centre (DICs) of the respective Districts, along with the office of the Regional Joint Director of Industries and Commerce for Chennai District, will implement the scheme. Maximum Project cost: The ceiling is ₹15 lakhs for a manufacturing sector project and ₹5 lakhs for a service sector or business sector project. Promoter’s contribution (Owner’s contribution): The General category promoter puts in 10%, while the special category (Scheduled Caste / Scheduled Tribes / Backward Classes / Most Backward Classes / Minorities / Women / Physically Challenged / Transgender) puts in 5%. Activities covered: Any economically viable manufacturing services and business activity qualifies, with the exception of direct agricultural operations like raising corporation etc. Training: Attending the two-day “Entrepreneur Development Programme” run by the Entrepreneur Development Institute (EDI) of the Government of Tamil Nadu is compulsory, and it must be finished within 12 months of selection by the District Task Force Committees (DTFCs). Task Force Committee: The General Manager, District Industries Centre chairs the Task Force Committee, and the Personal Assistant (General) to the Collector sits on it on behalf of the Commissionerate of Rehabilitation. Its members are: a. The Lead Bank b. The District Manager, Tamil Nadu Adi Dravidar Housing and Collector as Development Corporation Limited (TAHDCO) c. District Coordinators of the Leading Banks in the Districts d. A representative of the District Micro, Small, and Medium Enterprises Associations e. A representative of the National Small Industries Corporation Limited/Micro, Small and Medium Enterprises – Development Institute f. The District Employment Officer. Project sanction: Financing bank branches sanction each project on the basis of its techno-economic viability. Financial Institutions: Loans can come from any Nationalized Bank, Private Sector Bank, or the Tam Nadu Industrial Co-operative Bank. Collateral: Applicants need not furnish any collateral. Amount of the Bank Loan: Banks sanction and release a loan covering 90-95% of the project cost, which includes the Government subsidy of 25%. Rate of interest: The usual Bank rate of interest applies. Repayment period: Loans are repaid over 5 years, starting after an initial moratorium of 6 months or from the date the project commences, whichever comes first. Defaulter: Anyone who has defaulted with a nationalized bank financial institution / Cooperative bank cannot apply. Likewise, persons already helped under other subsidy-linked Government schemes are not eligible here. Marketing Support: To help Migrants Unemployed Youth Employment Generation Program units sell what they make, the General Manager, District Industries Centres will organise Exhibitions, Buyer-Seller Meet, etc., in coordination with the Unemployed Youth Employment Generation Programme (UYEGP). Review & Monitoring: At the district level, the District Collector reviews how the Scheme is progressing during the periodic Banker’s Standing Committee, District Level Co-Ordination Committee (DLCC) / District Level Review Committee (DLRC) meetings held with Bankers. Statewide monitoring is done by the State Level Bankers-Committee (SLBC), and the Secretary to Government and Rehabilitation Department reviews progress every quarter.