Lok Sabha Question No. 30 (UNSTARRED), answered on 2026-01-29
Subject: Review of PMEGP
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Babu Singh Kushwaha, Shri Neeraj Maurya

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION No. 30 TO BE ANSWERED ON 29.01.2026

## REVIEW OF PMEGP

## 30. SHRI NEERAJ MAURYA:

SHRI BABU SINGH KUSHWAHA:

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

- (a) whether  the  Government  is  aware  that  loans  and  subsidies  have  been  sanctioned  for  selfemployment  generation  under  the  Prime  Minister's  Employment  Generation  Programme  (PMEGP)  in Etah-Kasganj, Aonla and Jaunpur Lok Sabha constituencies, if so, the details thereof;
- (b) the  number  of  applications  received/approved  and  the  number  of  beneficiaries  to  whom  loans were actually disbursed in these constituencies during the last three years, district-wise;
- (c) whether it  is  true  that  in  several  cases  eligible  youth,  women  and  backward  classes  have  been unable to avail benefits of the scheme due to delays in loan sanction, imposition of additional conditions or rejection by Banks, if so, the details thereof;
- (d) the concrete steps taken by the Government to ensure effective implementation of the PMEGP, simplification of banking procedures and monitoring at the local level; and
- (e) whether the Government is considering to undertake a special review or target-based intervention in these parliamentary constituencies and if so, the details thereof?

## ANSWER

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

- (a): Under  Prime  Minister's  Employment  Generation  Programme  (PMEGP),  loans  have  been sanctioned  by  banks  and  financial  assistance  in  the  form  of  Margin  Money  (MM)  subsidy  is  being disbursed  to  micro  entrepreneurs  for  setting  up  of  micro  enterprises  for  generation  of  sustainable employment opportunities throughout the country including Etah-Kasganj, Aonla and Jaunpur Lok Sabha constituencies.  Details  of  loans  sanctioned  and  MM  subsidy  disbursed  in  Etah-Kasganj,  Aonla  and Jaunpur Lok Sabha constituencies during the last three years are given below:

|                             | FY 2022-23            | FY 2022-23               | FY 2023-24           | FY 2023-24               | FY 2024-25           | FY 2024-25               |
|-----------------------------|-----------------------|--------------------------|----------------------|--------------------------|----------------------|--------------------------|
| Lok Sabha Constituency Name | MM Subsidy (Rs. Lakh) | Loan Sanction (Rs. Lakh) | MMSubsidy (Rs. Lakh) | Loan Sanction (Rs. Lakh) | MMSubsidy (Rs. Lakh) | Loan Sanction (Rs. Lakh) |
| Etah                        | 60.28                 | 171.05                   | 45.32                | 135.74                   | 19.6                 | 53.2                     |
| Kasganj                     | 109.92                | 329.14                   | 165.86               | 530.56                   | 61.78                | 184.15                   |
| Aonla                       | 6.04                  | 17.76                    | 0.00                 | 0.00                     | 0.00                 | 0.00                     |
| Jaunpur                     | 133.05                | 373.15                   | 171.75               | 487.75                   | 225.95               | 623.65                   |

(b) and (c): District-wise  number  of  applications  received  and  number  of  loans  sanctioned  and disbursed  by  Banks  under  PMEGP  to  beneficiaries  in  Etah-Kasganj,  Aonla  and  Jaunpur  Lok  Sabha constituencies during the last three years is given below:

| District                  | No. of Application received by Implementing Agencies   |   No. of applications sanctioned and loan disbursed by banks |
|---------------------------|--------------------------------------------------------|--------------------------------------------------------------|
| Etah                      | 1,218                                                  |                                                          414 |
| Kasganj                   | 957                                                    |                                                          344 |
| Aonla (Bareilly district) | 26                                                     |                                                            2 |
| Jaunpur                   | 1,654                                                  |                                                          777 |

Under PMEGP, Banks taken their own credit decision for sanctioning of projects and releasing of loan based upon technical and economical viability of each project belonging to prospective beneficiaries including  youth,  women  and  backward  classes.  Banks  are  advised  to  extend  collateral  free  loans  for projects involving loan up to Rs. 10 lakhs in line with the guidelines of RBI. Meetings by State Level Bankers'  Committees  (SLBC)  at  the  state  level  and  District  Consultative  Committees  (DCCs)  and District Level Review Committees (DLRCs) at the district level as per RBI guidelines and State Level Monitoring  Committees  (SLMC)  and  District  Level  Monitoring  Committees  (DLMC)  are  organised periodically to review the scheme's performance and its effective monitoring and implementation at the ground level.

(d): Steps taken by Government to ensure effective implementation of the PMEGP, simplification of banking procedures and monitoring at the local level include the following:

- 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. Awareness  programmes  in  all  the  States/UTs  including  backward  and  under-performing  areas, Aspirational districts, North Eastern Region, etc.
- iv. Conduct of two-day free online Entrepreneurship Development Programme (EDP) for prospective entrepreneurs.
- v. Acceptance of PMEGP applications from beneficiaries in physical form in 19 regional languages excluding Hindi and English.
- vi. As per RBI guidelines on Lead Bank Scheme, Bankers' Committee meetings at Block, District, and  State  levels  are  held  on  a  regular  basis  to  ensure  effective  coordination,  monitoring  and implementation of the scheme.
- vii. SLMC and DLMC meetings are held at State and District level on a regular basis to monitor and review the implementation of PMEGP.

- viii. No collateral security is to be insisted by Banks for projects involving loan up to 10 lakhs. Strict compliance of this  provision  has  also  been  reemphasized  during  Bankers'  meetings  and  written communication to all major Banks.
- ix. A wide range of more than 1,000 Model of Detailed Project Reports have been prepared on various industries and made available on the PMEGP online portal.
- x. Periodical  review  meetings  by  the  Ministry  with  Implementing Agencies  i.e.  Khadi  and Village Industries Commission (KVIC), State offices of KVIC, State Khadi and Village Industries Boards (KVIBs), State District Industries Centers (DICs) and financial institutions.
- xi. A  portal  for  tracking  the  process  from  application  till  adjustment  of  MM  subsidy  into  the beneficiary's loan account.
- xii. To facilitate timely adjustment of MM subsidy into the beneficiary's loan account, a mechanism for  physical  verification  of  micro-enterprises  is  in  place  under  PMEGP  with  geo-tagging  and working status of the establishment is in place.
6. (e): PMEGP is  a  demand  driven  scheme  being  implemented  throughout  the  country  and  the  final sanction of projects and sanction and release of loan is done at the level of concerned financing bank based  upon  technical  and  economical  viability  of  each  project.  However,  the  Ministry  undertakes periodical review meetings with the Implementing Agencies to review the performance and implementation of PMEGP at the national and state/district level.

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