Lok Sabha Question No. 1958 (UNSTARRED), answered on 2025-12-11
Subject: PMEGP in Tamil Nadu
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Dr. T Sumathy Alias Thamizhachi Thangapandian

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

## LOK SABHA UNSTARRED QUESTION No. 1958 TO BE ANSWERED ON 11.12.2025

## PMEGP IN TAMIL NADU

1958.   DR. T SUMATHY Alias THAMIZHACHI THANGAPANDIAN:

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

- (a) whether the number of projects sanctioned under the Prime Minister's Employment Generation Programme (PMEGP) in Tamil Nadu has declined during the last three financial years and if so, the details thereof;
- (b) whether  the  Union  Government  has  received  representations  from  the  Government  of  Tamil Nadu regarding delays in approvals or fund release under PMEGP and CGTMSE schemes and if so, the details thereof;
- (c) whether beneficiary approvals in urban districts such as Chennai, Kancheepuram, Chengalpattu and Tiruvallur have faced procedural delays due to revised eligibility norms, if so, the details thereof; and
- (d) the steps being taken to ensure timely sanctioning and disbursal of benefits to MSMEs inTamil Nadu, particularly for urban manufacturing and service-sector clusters?

## ANSWER

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

- (a): Prime Minister's Employment Generation Programme (PMEGP) is a demand-driven scheme. Banks, as lending institutions, appraise the projects and take their own credit decisions on the basis of viability of each project as per the scheme guidelines. Number of projects sanctioned by banks in Tamil Nadu under PMEGP Scheme during the last three financial years is given at below:
- (b): No  representations  on  delays  in  approvals  or  fund  release  have  been  received  from  the Government of Tamil Nadu regarding PMEGP and CGTMSE Schemes.

| Year    | No. of projects Sanction by bank   |
|---------|------------------------------------|
| 2022-23 | 11,475                             |
| 2023-24 | 16,355                             |
| 2024-25 | 12,057                             |

(c): PMEGP being  a  central  sector  scheme  is  administered  by  the  Ministry  of  Micro  Small  and Medium Enterprise (MSME) and implemented by Khadi and Village Industries Commission (KVIC) at national level. As per information provided by KVIC, no procedural delays were observed under the scheme  in  the  urban  districts  of  Tamil  Nadu  such  as  Chennai,  Kancheepuram,  Chengalpattu  and Tiruvallur.

(d): Steps being taken under PMEGP to ensure timely sanctioning and disbursal of benefits across the country including the State of Tamil Nadu, are as follows:

- i. Review  meetings  with  Implementing  Agencies  (IAs)  i.e.  Khadi  and  Village  Industries Commission  (KVIC),  State  offices  of  KVIC,  KVIBs,  DICs  &  Coir  Board  and  financial institutions are periodically held to review the progress of implementation of the Scheme.
- ii. State  Level  Monitoring  Committee  (SLMC)  and  District  Level  Monitoring  Committee (DLMC) meetings are held at  State  and  District  level  to  monitor  the  implementation  of  the scheme.
- iii. Top-level  Bankers  meeting,  State  Level  Bankers  Meetings  and  District  Level  Bankers meetings  are  held  on  a  regular  basis  to  ensure  proper  loan  sanctioning  and  margin  money disbursement by banks.
- iv. A PMEGP Portal is in place for monitoring of the complete process of PMEGP application till adjustment of Margin Money subsidy into beneficiary's loan account.

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