Parliament Question: Delay in Disbursement of Financial Assistance under PMEGP

GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES LOK SABHA STARRED QUESTION NO. *177 TO BE ANSWERED ON 30.07.2026 DELAY IN DISBURSEMENT OF FINANCIAL ASSISTANCE UNDER PMEGP *177. SHRI SHREYAS M PATEL:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

(a) whether the Government is aware of delays in the sanction and disbursement of financial assistance under the Prime Minister's Employment Generation Programme (PMEGP) in various States, including Karnataka and if so, the details thereof;

(b) the number of PMEGP applications received, sanctioned, pending, rejected and disbursed during the last five years, State-wise and year-wise;

(c) the average time taken for processing applications, sanctioning projects, releasing margin money subsidy and disbursing loans under PMEGP;

(d) the major reasons for delays in sanction and disbursement of assistance under PMEGP and the corrective measures taken by the Government to address these issues; and

(e) whether the Government proposes to simplify the approval process, strengthen coordination with banks, introduce timelines for disposal of applications and ensure timely release of financial assistance to eligible beneficiaries and if so, the details thereof? ANSWER MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI JITAN RAM MANJHI)

(a) to (e): A statement is laid on the table of the House.STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF THE LOK SABHA STARRED QUESTION No. 177 FOR ANSWER ON 30.07.2026

(a): The time taken for sanction of loans and disbursement of Margin Money subsidy under PMEGP in various States, including Karnataka, depends upon fulfillment of application process with supporting documents, appraisal of project viability and credit decision by the financing banks, deposit of own contribution and completion of Entrepreneurship Development Programme (EDP) training by the prospective beneficiaries and submission of Margin Money subsidy claims by financing banks.

(b): State-wise and year-wise details of number of applications received, sanctioned, pending and rejected by Banks; and number of applications for which MM Subsidy has been disbursed during the last five years under PMEGP is given at Annexure I.

(c): The average time taken for processing PMEGP applications by Implementing Agencies, sanction of loan by Banks and release of Margin Money (MM)subsidy by KVIC during the last five years is 58, 70 and 84 days, respectively.

(d) and (e): The Government closely monitors the implementation of the Prime Minister’s Employment Generation Programme (PMEGP), including time taken in sanction and disbursement of financial assistance in the form of MM subsidy across the country, including Karnataka.

Corrective Measures undertaken by the Government to streamline the approval process, strengthen coordination with financing banks for loan sanction, expedite disposal of applications

and timely release of MM subsidy under PMEGP include the following: i. Pending applications and MM subsidy claims are regularly monitored and reviewed by the Government and financing banks through Quarterly Bankers’ Meetings at State and Zonal level, State Level Monitoring Committee (SLMC) and District Level Monitoring Committee

(DLMC) meetings. ii. To assist applicants in preparing project proposals, more than 1,000 model Detailed Project Reports (DPRs) covering various sectors have been made available on the PMEGP Portal. iii. To reduce entry barriers, educational qualification requirements are waived for projects in manufacturing sector up to Rs. 10 lakh and in service sector up to Rs. 5 lakh.

iv. To expedite approvals for small projects, EDP training has been exempted for projects up to Rs. 2 lakh. v. To provide guidance, facilitate applications and offer real-time assistance to prospective entrepreneurs, PMEGP Helpdesks have been established at State level and awareness programmes and financial literacy camps are conducted in all States/UTs, including aspirational districts, underperforming areas and North-Eastern Region.

vi. PMEGP Portal developed as an end-to-end digital platform is integrated with financing banks through Jan Samarth Portal, streamlining the approval process and with SMS alert to applicants at different stages and facilitation of Udyam Registration.

******ANNEXURE-I ANNEXURE-I: REFERRED TO IN REPLY TO PART (b) OF THE LOK SABHA STARRED QUESTION NO. 177 FOR ANSWER ON 30.07.2026.

State-wise and year-wise details on number of applications received, sanctioned, pending and rejected by Banks; and number of applications for which MM Subsidy has been disbursed during the last five years i.e. FY 2021-22 to FY 2025-26 under PMEGP:

FY 2021-22 FY 2022-23 FY 2023-24 No. of No. of No. of Sr. State No. of No. of No. of No. of No. of No. of No. of No. of No. of No. of No. of No. of application application application No. Name application application application application application application application application application application application application for which for which for which received by sanctioned by pending at rejected by received by sanctioned by pending at rejected by received by sanctioned by pending at rejected by MM MM MM Banks Banks Banks Banks Banks Banks Banks Banks Banks Banks Banks Banks disbursed disbursed disbursed Andaman 1 276 148 0 131 162 474 318 3 142 121 477 342 8 137 135 Nicobar Andhra 2 6398 2771 160 3380 2477 12404 5563 237 6266 3073 27674 11384 708 14964 5577 Pradesh Arunachal 3 600 221 8 355 196 639 247 10 386 158 591 243 49 286 169 Pradesh 4 Assam 10967 3280 131 7522 3855 12259 3898 162 8123 2596 11301 3742 297 7100 2417 5 Bihar 8227 2812 157 5157 2477 29161 8098 894 20139 4459 34253 11882 2489 19832 6837 6 Chandigarh 63 20 0 42 21 79 18 0 62 15 100 15 2 82 10 7 Chhattisgarh 8844 3112 28 5622 3020 9971 3888 82 6036 2543 8765 3515 300 4865 2379 Dadra 8 Nagar 8 7 1 0 5 11 3 3 3 3 11 8 3 0 4 Haveli Daman 9 And 11 7 1 2 3 10 9 0 3 3 11 11 0 0 6 Diu 10 Delhi 291 106 5 197 100 266 124 5 136 72 326 81 20 225 50 11 Goa 119 88 2 23 87 139 122 2 13 66 131 109 2 18 68 12 Gujarat 4801 4175 301 1407 4140 5997 4522 319 1301 3068 5807 4488 366 1168 2994 13 Haryana 6645 1925 48 4598 1726 7151 2462 55 4631 1559 7031 2727 103 4176 1398 Himachal 14 2114 1197 3 931 1274 2617 1615 6 943 930 3172 2079 28 1061 974 Pradesh Jammu 15 36181 23955 448 11532 21648 39341 26777 202 12704 12023 38667 25522 252 13365 15065 KashmirFY 2021-22 FY 2022-23 FY 2023-24 No. of No. of No. of Sr. State No. of No. of No. of No. of No. of No. of No. of No. of No. of No. of No. of No. of application application application No. Name application application application application application application application application application application application application for which for which for which received by sanctioned by pending at rejected by received by sanctioned by pending at rejected by received by sanctioned by pending at rejected by MM MM MM Banks Banks Banks Banks Banks Banks Banks Banks Banks Banks Banks Banks disbursed disbursed disbursed 16 Jharkhand 6415 1689 61 4659 1714 9316 2726 111 6452 1851 10622 3550 133 6849 2101 17 Karnataka 22417 6545 534 15364 5877 26142 8212 618 17413 5618 24715 7862 751 16103 4672 18 Kerala 4983 2819 12 2300 2789 10526 6161 19 4064 3129 9857 6371 53 3465 3389 19 Ladakh 338 246 16 77 295 264 238 10 33 91 221 178 9 44 122 20 Lakshadweep 5 7 0 1 7 4 0 0 4 2 6 1 0 5 0 Madhya 21 19796 8231 331 11251 8082 20582 9206 313 11082 5957 18955 7734 650 10595 5292 Pradesh 22 Maharashtra 19482 5036 640 13595 4123 16006 6156 611 9783 3622 19672 6169 1155 12010 2762 23 Manipur 2406 992 213 1191 1139 2441 885 117 1432 545 2350 744 171 1417 348 24 Meghalaya 1398 532 2 858 699 2212 891 15 1293 306 3054 1222 19 1662 280 25 Mizoram 847 709 3 242 650 975 574 24 371 412 907 414 35 453 401 26 Nagaland 1557 1075 28 458 1241 2277 1205 86 920 469 2915 1314 189 1299 517 27 Odisha 14451 4632 58 9624 4301 15303 5337 71 9885 3880 14749 5180 152 9381 2975 28 Puducherry 134 60 1 76 66 113 45 2 65 25 203 88 2 109 30 29 Punjab 5268 1785 53 3424 1790 6144 2427 132 3518 1564 6587 2984 117 3438 1469 30 Rajasthan 7506 2666 48 4841 2599 6857 3173 111 3478 2037 7992 3793 210 3660 1678 31 Sikkim 119 83 0 36 85 309 177 4 109 57 1039 607 8 378 132 32 Tamil Nadu 16334 6339 346 9680 5972 29963 11499 818 16781 6140 43285 16376 1575 24386 6814 33 Telangana 8747 2871 401 5663 2906 14361 4588 797 8574 2540 14992 5874 688 8615 2503 34 Tripura 1496 894 15 576 958 1819 1009 8 843 703 1893 962 20 886 588 Uttar 35 31000 13035 152 17486 12594 39535 19660 267 19351 11601 38707 19525 499 18547 11689 Pradesh 36 Uttarakhand 4132 1907 28 2180 1836 4588 2438 56 2073 1803 3791 2185 48 1568 1354 West 37 8549 2652 730 5164 2305 9167 3062 1048 5035 2126 7921 2906 755 4349 1919 Bengal Total 262925 108629 4965 149645 103219 339423 147333 7218 183447 85167 372750 162187 11866 196498 89118FY 2024-25 FY 2025-26 No. of No. of No. of No. of No. of No. of No. of No. of No. of No. of application application Sr. No. State Name application application application application application application application application for which for which received by sanctioned pending at rejected by received by sanctioned pending at rejected by MM MM Banks by Banks Banks Banks Banks by Banks Banks Banks disbursed disbursed 1 Andaman Nicobar 292 193 8 94 61 175 79 74 28 56 2 Andhra Pradesh 14551 8124 683 6457 3249 14560 6077 3442 5473 6779 Arunachal 3 453 145 59 256 156 630 146 260 244 144 Pradesh 4 Assam 9611 3270 415 6050 3170 9170 2618 1602 5152 2418 5 Bihar 29995 7245 3626 19315 5035 19533 3445 4911 11241 4609 6 Chandigarh 49 16 0 34 5 27 5 10 12 4 7 Chhattisgarh 7671 3002 479 4345 1853 4552 1383 1212 2055 1112 Dadra Nagar 8 9 4 3 4 1 7 1 4 2 1 Haveli 9 Daman And Diu 13 12 1 2 3 14 4 9 1 4 10 Delhi 246 49 12 185 26 103 21 46 37 20 11 Goa 67 64 3 10 39 85 50 26 13 29 12 Gujarat 3564 2817 359 785 1780 36 274 3 4 1829 13 Haryana 4813 1916 355 2698 788 3206 1094 1062 1133 1094 14 Himachal Pradesh 1932 1282 34 727 796 1568 879 211 454 902 15 Jammu Kashmir 28697 17365 304 12100 9863 10411 5363 1269 3706 7837 16 Jharkhand 6794 2025 426 4475 1452 2945 420 1118 1433 833 17 Karnataka 19092 6684 1039 12035 2839 19838 4366 5117 10542 3836 18 Kerala 8907 6184 205 2963 2260 2779 1699 466 936 2399 19 Ladakh 198 136 14 59 135 227 124 29 51 182 20 Lakshadweep 5 2 0 2 0 4 2 3 0 021 Madhya Pradesh 919 845 64 505 2626 12 8 5 0 1886 22 Maharashtra 15856 5347 1795 9106 1856 9597 2754 3284 3987 2806 23 Manipur 1939 544 236 1199 608 2038 474 489 1101 403 24 Meghalaya 2456 1055 16 1434 1114 1721 685 114 1066 751 25 Mizoram 710 369 20 335 484 852 420 130 291 343 26 Nagaland 1153 649 130 522 1262 915 296 457 264 602 27 Odisha 14019 4694 389 9000 1867 12813 3504 2345 7162 3033 28 Puducherry 141 78 5 57 38 87 33 37 28 23 29 Punjab 5232 2374 437 2553 970 4039 1517 1286 1262 1357 30 Rajasthan 5982 3356 264 2814 916 4444 1739 821 1963 1655 31 Sikkim 623 472 19 171 316 776 423 257 111 315 32 Tamil Nadu 25331 12119 1169 14070 3949 19561 6189 5899 8151 7216 33 Telangana 10312 4047 618 6161 1850 8130 2415 2052 4061 2663 34 Tripura 1655 724 22 919 730 1475 537 127 811 632 35 Uttar Pradesh 14009 7534 603 7124 5518 3034 985 1222 868 7261 36 Uttarakhand 1678 1082 72 648 734 138 77 19 52 574 37 West Bengal 6253 2544 798 3150 1359 3703 838 2194 804 886 Total 245227 108368 14682 132364 59708 163205 50944 41612 74499 66494