Parliament Question: Implementation of PMEGP

GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES LOK SABHA UNSTARRED QUESTION No. 1969 TO BE ANSWERED ON 30.07.2026 IMPLEMENTATION OF PMEGP

1969. SHRI SUNIL BOSE:

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

(a) the details of funds sanctioned, disbursed and utilised under the Prime Minister’s Employment Generation Programme (PMEGP) since its inception, State-wise particularly for the State of Karnataka;

(b) whether the union Government has evaluated the performance of the PMEGP in Tamil Nadu, a key industrial State and if so, the details thereof;

(c) the details regarding the number of Micro, Small and Medium Enterprises (MSMEs) established and employment generated through this scheme in Karnataka; and

(d) whether any special measures have been taken to promote MSMEs in Chamarajanagar and Mysore districts and if so, the details thereof and if not, the reasons therefor? ANSWER MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE)

(a): Prime Minister’s Employment Generation Programme (PMEGP) being a Central Sector Scheme, no State-wise allocation of budget is done. Funds are disbursed based on the demand generated and loans sanctioned by the financial institutions across States. State-wise details of Margin Money (MM) subsidy disbursed and utilised under PMEGP since its inception i.e. FY 2008-09 to FY 2025-26 is given at Annexure.

(b): The Ministry conducted an evaluation of the PMEGP through a third party agency covering 28,200 PMEGP beneficiary units and 2,800 non-beneficiary enterprises across all States/UTs, including 1,670 PMEGP units of Tamil Nadu to assess the performance of the PMEGP units established during the period FY 2008-09 to FY 2023-24. Most of the PMEGP units reported increase in average annual income and positive profitability across sectors over the years.

(c): Since its inception of the scheme, 55,430 microenterprises have been assisted in the state of Karnataka generating estimated employment of 498,870 persons.

(d): Initiatives undertaken by the Ministry of MSME under PMEGP to promote entrepreneurship and create job opportunities across the country including Chamarajanagar and Mysore districts of Karnataka

state are as follows:: 2 : i. Enhancement of maximum project cost from Rs. 25 lakh to Rs. 50 lakh for manufacturing sector and from Rs. 10 lakh to Rs. 20 lakh for service sector. ii. Inclusion of applicants from Aspirational districts and transgenders under Special Category eligible for higher subsidy.

iii. Establishment of PMEGP Helpdesks at State Offices to provide real-time assistance and hand- holding to potential beneficiaries. iv. A wide range of more than 1,000 Model of Detailed Project Reports prepared on various industries have been made available on the PMEGP portal.

v. Disseminating Information, Education and Communication (IEC) material and video clips in regional languages for promotion in remote areas. vi. As per RBI Master Directions on lending to MSMEs, no collateral security to be insisted by Banks for projects involving loan up to Rs. 20 lakh. Strict compliance of this provision has been reemphasized to all financing Banks.

vii. Periodical review meetings by the Ministry with Implementing Agencies i.e. KVIC, State offices of KVIC, State Khadi and Village Industries Boards (KVIBs), State District Industries Centres (DICs) and financial institutions.

viii. Awareness and outreach programmes in all the States/UTs including backward and under- performing areas, Aspirational districts, NER etc. to identify potential beneficiaries and provide handholding support during the application process.

ix. Financial literacy camps and customer awareness programmes conducted by Banks to educate prospective entrepreneurs about various initiatives of the Government, including PMEGP. ****ANNEXURE

ANNEXURE: REFERRED TO IN REPLY TO PART (a) OF THE LOK SABHA UNSTARRED QUESTION NO. 1969 FOR ANSWER ON 30.07.2026.

State-wise details of Margin Money (MM) subsidy disbursed and utilized under PMEGP since its inception i.e. FY 2008-09 to FY 2025-26:

Sr. No. State Name MM Subsidy (Rs. Cr) 1 Andaman Nicobar 26.35 2 Andhra Pradesh 1,520.22 3 Arunachal Pradesh 99.41 4 Assam 901.85 5 Bihar 1,473.62 6 Chandigarh 8.42 7 Chhattisgarh 798.35 8 Delhi 32.36 9 Goa 34.85 10 Gujarat* 2,539.35 11 Haryana 689.74 12 Himachal Pradesh 420.38 13 Jammu Kashmir 2,149.71 14 Jharkhand 593.48 15 Karnataka 1,604.15 16 Kerala 768 17 Ladakh 47.98 18 Lakshadweep 1.1 19 Madhya Pradesh 1,727.60 20 Maharashtra** 1,564.60 21 Manipur 285.28 22 Meghalaya 165.37 23 Mizoram 171.26 24 Nagaland 299.38 25 Odisha 1,197.66 26 Puducherry 16.17 27 Punjab 746.71 28 Rajasthan 1,178.46 29 Sikkim 44.2 30 Tamil Nadu 1,857.70 31 Telangana 817.3 32 Tripura 314.01 33 Uttar Pradesh 3,921.99 34 Uttarakhand 461.12 35 West Bengal 1,145.28 *including Daman and Diu **including Dadra and Nagar Haveli