Lok Sabha Question No. 2515 (UNSTARRED), answered on 2025-03-13
Subject: Financial Assistance under PMEGP
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri  Chhotelal

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION No. 2515 TO BE ANSWERED ON 13.03.2025

## FINANCIAL ASSISTANCE UNDER PMEGP

## 2515.   SHRI CHHOTELAL:

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

- (a) the  number  of  enterprises  provided  with  financial  assistance  under  Prime  Minister's Employment  Generation  Programme  (PMEGP)  so  far  along  with  the  number  of  employment generated through it;
- (b) the details of the eligibility criteria to avail financial assistance under this scheme;
- (c) whether the Government proposes to increase the credit limit for MSMEs particularly for the pandemic affected enterprises;
- (d) if so, the time by which the revised limit is likely to be implemented; and
- (e) if not, the reasons therefor?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE)

- (a): Since inception from FY 2008-09till FY2024-25 (up to 06.03.2025), more than 9.99 lakh micro  enterprises  have  been  provided  with  financial  assistancein  terms  of  Margin  Money  (MM) subsidy  of  Rs.  26,569.84  Crore  under  Prime  Minister's  Employment  Generation  Programme (PMEGP) across the country providing employment to an estimated 81.50 lakh persons.
- (b): Details of eligibility  criteria  to  avail  financial  assistance  for  setting  up  of  new  enterprises under the Schemeare given below:
- i. Any individual, above 18 years of age
- ii. Assistance under the scheme is available only for new projects sanctioned specifically under the PMEGP.
- iii. For setting up of project costing above Rs.10 lakh in the Manufacturing sector and above Rs.  5  lakh  in  the  Business  /Service  sector,  the  beneficiaries  should  possess  at  least  VIII standard pass educational qualification.
- iv. Projects without Capital Expenditure are not eligible for Financing under theScheme.
- v. All new units setup under PMEGP will be mandatorily registered under UdyamPortal before Physical  Verification  of  the  unit  and  the  adjustment  of  the  MarginMoney  in  the  PMEGP beneficiary loan account.
- vi. Only one person from one family is eligible for obtaining financial assistance forsetting up of projects under PMEGP.

Since 2018-19, existing PMEGP/REGP/MUDRA enterprises are also supported with a2 nd loan with subsidy for upgrading the existing units.Eligibility criteria to avail the 2 nd loan is as below:

- i. MM subsidy claimed under PMEGP has to be successfully adjusted on the completion of lock in period of 3 years and first loan availed should be successfully repaid.
- ii. The unit should have been making profit for the last three years .

(c), (d) and (e): Presently,  there  is  no  proposal  under  consideration  of  the  Government  to increase the credit limit under the PMEGP Scheme for pandemic affected enterprises. However, the maximum cost of the project/unit admissible for Margin Money subsidy under the Scheme has been enhanced from Rs. 25 lakh to Rs. 50 lakh in manufacturing sector and from Rs. 10 lakh to Rs. 20 lakh in service sector since the year 2022, for extending the subsidy benefits of the Scheme to more enterprises.

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