Lok Sabha Question No. 4820 (UNSTARRED), answered on 2025-08-21
Subject: PMEGP in Tamil Nadu
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Smt. Kanimozhi Karunanidhi

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

## LOK SABHA UNSTARRED QUESTION No.4820 TO BE ANSWERED ON 21.08.2025

## PMEGP IN TAMIL NADU

4820. SMT. KANIMOZHI KARUNANIDHI:

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  Tamil Nadu;
- (b) whether  the  union  Government  has  evaluated  the  performance  of  the  Prime  Minister's Employment Generation Programme (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 Tamil Nadu; and
- (d) whether special measures have been taken to promote MSMEs in Thoothukudi district 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 utilized based on the demand generated and  loans  sanctioned  by  the  financial  institutions.State/UT-  wise  details  of  Margin  Money  (MM) subsidy disbursed under PMEGP since its inception i.e. FY 2008-09 to FY 2025-26 (up to 18.08.2025) is given at Annexure.
- (b): No evaluation study of the performance of PMEGP has been undertaken in Tamil Nadu.
- (c): Since its  inception  in  FY  2008-09  till  FY  2025-26  (up  to  18.08.2025),  68,639  nos.  of  micro enterprises  have been assisted under  PMEGP  in  the  State  Tamil  Nadu  generating  estimated employment opportunities for 6.40 lakh persons.
- (d): Government  is  implementing  various  schemes  to  promote  MSMEs  in  the  country  including Thoothukudi  district.  These  schemes  include  Prime  Minister's  Employment  Generation  Programme (PMEGP), Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), Entrepreneurship and Skill Development Programme (ESDP), Micro and Small Enterprises - Cluster Development Programme (MSE-CDP), Raising and Accelerating MSME Performance (RAMP) and MSME Champions Scheme. Details on the same are as below:

- i) Prime  Minister's  Employment  Generation  Programme  (PMEGP): It  is  a  Central  Sector Scheme for assisting entrepreneurs in setting up of new micro enterprises in the non-farm sector. Under PMEGP, General Category beneficiaries are assisted with Margin Money (MM) subsidy of 25% of  the  project  cost  in  rural  areas  and  15%  in  urban  areas.  For  beneficiaries  belonging  to Special Categories such as Scheduled Castes, Scheduled Tribes, OBCs, Minorities, Women, Exservicemen, Physically Handicapped, Transgenders,beneficiaries belonging to Northeastern Region, Hill and Border areas, and Aspirational Districts, the Margin Money subsidy is 35% in rural areas and 25% in urban areas.
2. ii) Credit Guarantee Scheme for Micro and Small Enterprises: The Ministry of Micro, Small and Medium Enterprises and Small Industries Development Bank of India (SIDBI) jointly instituted the  Credit  Guarantee Trust  Fund  for  Micro  and  Small  Enterprises  (CGTMSE) to provide credit guarantee  for  the  loans  extended  by  Member  Lending  Institutions  (MLIs)  to  Micro  and  Small Enterprises  (MSEs)  without collateral  security  and third-party  guarantee.  CGTMSE implements the Credit Guarantee Scheme (CGS) for MSEs.
3. iii) The Entrepreneurship and Skill Development Programme (ESDP) Scheme: A Central Sector continuing scheme with the objective to motivate young persons (Men and Women) representing different sections of the society including SC/ST women, physically handicapped, Ex-servicemen, and BPL persons to consider self-employment or entrepreneurship as one of the career options. The  ultimate  objective  is  to  promote  new  enterprises,  build  capacity  of  existing  MSMEs  and inculcate entrepreneurial culture in the country.
4. iv) Raising  and  Accelerating  MSME  performance  (RAMP): A  World  bank  supported  Central Sector  Scheme  aimed  at  enhancing  the  performance  of  MSME  by  promoting  technology upgradation, innovation, digitization, market access, credit etc. through active participation of the State Governments. All States/UTs have been approved a grant of Rs. 5 crore each for preparation of a Strategic Investment Plan (SIP) acting as roadmap for development and promotion of MSME sector in the respective State/UT.
- v) MSME  Champions  Scheme: MSME  Champions  Scheme  is  a  holistic  approach  to  unify, synergize,  and  converge  various  schemes  and  interventions  with  a  single  purpose.  Component under MSME Champions Scheme are MSME Sustainable (ZED) Certification Scheme, MSMECompetitive  (Lean)  Scheme  and  MSME  Innovative  (for  incubation,  IPR,  Design  and  Digital MSME) Scheme.

*****

## ANNEXURE REFERRED TO IN REPLY TO PART (a) OF THE LOK SABHA UNSTARRED QUESTION NO. 4820 FOR ANSWER ON 21.08.2025.

State/UT-wise Margin Money (MM) subsidy disbursed under PMEGP since its inception in FY 200809 till FY 2025-26 (up to 18.08.2025):

| Sr. No.   | State/UT          |   Margin Money (MM) Subsidy disbursed (Rs. in Crore) |
|-----------|-------------------|------------------------------------------------------|
| 1         | Andaman Nicobar   |                                                26.08 |
| 2         | Andhra Pradesh    |                                              1411.42 |
| 3         | Arunachal Pradesh |                                                89.66 |
| 4         | Assam             |                                               827.48 |
| 5         | Bihar             |                                              1371.71 |
| 6         | Chandigarh        |                                                 8.38 |
| 7         | Chhattisgarh      |                                               766.61 |
| 8         | Delhi             |                                                31.54 |
| 9         | Goa               |                                                34.16 |
| 10        | Gujarat*          |                                              2378.18 |
| 11        | Haryana           |                                               648.85 |
| 12        | Himachal Pradesh  |                                               396.3  |
| 13        | Jammu Kashmir     |                                              2075.36 |
| 14        | Jharkhand         |                                               580.46 |
| 15        | Karnataka         |                                              1518.4  |
| 16        | Kerala            |                                               739.82 |
| 17        | Ladakh            |                                                39.72 |
| 18        | Lakshadweep       |                                                 1.1  |
| 19        | Madhya Pradesh    |                                              1684.89 |
| 20        | Maharashtra**     |                                              1469.74 |
| 21        | Manipur           |                                               275.36 |
| 22        | Meghalaya         |                                               140.67 |
| 23        | Mizoram           |                                               157.74 |
| 24        | Nagaland          |                                               286.32 |
| 25        | Odisha            |                                              1152.7  |
| 26        | Puducherry        |                                                15.83 |
| 27        | Punjab            |                                               687.76 |
| 28        | Rajasthan         |                                              1089.38 |
| 29        | Sikkim            |                                                32.99 |
| 30        | Tamil Nadu        |                                              1754.14 |
| 31        | Telangana         |                                               740.38 |
| 32        | Tripura           |                                               298    |
| 33        | Uttar Pradesh     |                                              3791.89 |
| 34        | Uttarakhand       |                                               449.21 |
| 35        | West Bengal       |                                              1123.53 |
| Total     | Total             |                                             28095.8  |