Lok Sabha Question No. 2802 (UNSTARRED), answered on 2024-12-12
Subject: PMEGP to Support Entrepreneurs
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Muhammed Hamdullah Sayeed

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

## LOK SABHA UNSTARRED QUESTION No. 2802 TO BE ANSWERED ON 12.12.2024

## PMEGP TO SUPPORT ENTREPRENEURS

2802.       SHRI MUHAMMED HAMDULLAH SAYEED:

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

- (a) whether  the  Government  is  actively  implementing  the  Prime  Ministers  Employment Generation  Programme  (PMEGP)  to  support  entrepreneurs  and  small  scale  industries  in  both urban and rural areas; and
- (b) if so, the details thereof?

## ANSWER

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

- (a): Ministry  of  MSME,  through  Khadi  and  Village  Industries  Commission  (KVIC),  is actively  implementing  Prime  Minister's  Employment  Generation  Programme  (PMEGP)  for assisting entrepreneurs in setting up of new enterprises in the non-farm sector in both urban and rural areas. Under the scheme, General Category beneficiaries can avail Margin Money subsidy of 25% of the project cost in rural areas and 15% in urban areas. For Special Categories such as SC / ST / OBC / Minorities / Women / Ex-serviceman / Transgenders / Differently-abled / NER / Aspirational Districts  /  Hill  and  Border  areas  etc.,  the  Margin  Money  subsidy  is  35%  in  rural areas and 25% in urban areas. The maximum cost of project is Rs. 50 lakh in the manufacturing sector and Rs. 20 lakh in the service sector.

Since 2018-19, existing PMEGP /MUDRA enterprises are also supported with 2 nd loan for  upgradation and expansion. Under 2 nd Loan,  maximum project cost admissible for Margin Money (MM) subsidy under Manufacturing sector is Rs. 1.00 crore and for Service sector, it is Rs. 25 lakh. Eligible subsidy for 2 nd loan for all categories is 15% of project cost (20% for NER & Hill States).

- (b): Performance of PMEGP in terms of no. of units assisted, Margin Money (MM) subsidy disbursed  and  estimated  employment  generated  during  FY  2019-20  to  FY  2024-25*  (upto 06.12.2024) is given below:

| Year       | No. of Units Assisted   | MMSubsidy (Rs. Cr.)   | Estimated Employment Generated   |
|------------|-------------------------|-----------------------|----------------------------------|
| FY2019-20  | 66,653                  | 1,950.82              | 5,33,224                         |
| FY2020-21  | 74,415                  | 2,188.80              | 5,95,320                         |
| FY2021-22  | 1,03,219                | 2,977.65              | 8,25,752                         |
| FY2022-23  | 85,167                  | 2,722.17              | 6,81,336                         |
| FY2023-24  | 89,118                  | 3,093.87              | 7,12,944                         |
| FY2024-25* | 26,955                  | 1,058.17              | 2,15,640                         |

Area-wise performance of PMEGP in terms of number of units assisted, Margin Money (MM) subsidy disbursed and estimated employment generated during FY 2019-20 to FY 202425* (upto 06.12.2024) is given below:

|                | Rural                 | Rural                          | Rural              | Urban                 | Urban                          | Urban               |
|----------------|-----------------------|--------------------------------|--------------------|-----------------------|--------------------------------|---------------------|
| Financial Year | No. of Units Assisted | Estimated Employment Generated | MMSubsidy (Rs. Cr) | No. of Units Assisted | Estimated Employment Generated | MM Subsidy (Rs. Cr) |
| FY 2019-20     | 53,714                | 4,29,712                       | 1,695.71           | 12,939                | 1,03,512                       | 255.11              |
| FY 2020-21     | 60,682                | 4,85,456                       | 1,914.46           | 13,733                | 1,09,864                       | 274.34              |
| FY 2021-22     | 84,696                | 6,77,568                       | 2,585.86           | 18,523                | 1,48,184                       | 391.80              |
| FY 2022-23     | 68,470                | 5,47,760                       | 2,323.48           | 16,697                | 1,33,576                       | 398.69              |
| FY 2023-24     | 68,939                | 5,51,512                       | 2,546.19           | 20,179                | 1,61,432                       | 547.68              |
| FY2024-25*     | 21,920                | 1,75,360                       | 905.99             | 5,035                 | 40,280                         | 152.19              |

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