Lok Sabha Question No. 5214 (UNSTARRED), answered on 2026-03-24
Subject: Under-utilization of Funds under PMMSY
Ministry: FISHERIES, ANIMAL HUSBANDRY AND DAIRYING
Asked by: Mr Pathan Yusuf

## MINISTRY OF FISHERIES, ANIMAL HUSBANDRY AND DAIRYING

## GOVERNMENT OF INDIA DEPARTMENT OF FISHERIES

## LOK SABHA

UNSTARRED QUESTION NO. 5214 TO BE ANSWERED ON 24 th  March, 2026

## Under-utilization of Funds under PMMSY

## 5214.  Mr Pathan Yusuf:

Will the Minister of FISHERIES, ANIMAL HUSBANDRY AND DAIRYING be pleased to state:

- (a) the details and reasons for the approximately 40% under-utilisation of allocation of  funds  under  the  Pradhan  Mantri  Matsya  Sampada  Yojana  (PMMSY)  between Budget Estimates  2025-26 and Revised Estimates 2025-26;
- (b) the number of start-ups supported under the PMMSY since the inception of the scheme,year and State-wise;
- (c) the details of amount of funds allocated by the Government to these start-ups, year-wiseand State-wise details; and
- (d) whether any of the start-ups funded under the PMMSY have shut down and if so,  thedetails  thereof  including  the  year-wise  and  State-wise  details,  since  the inception of the scheme?

## ANSWER

## THE MINISTER OF FISHERIES, ANIMAL HUSBANDRY AND DAIRYING (SHRI RAJIV RANJAN SINGH ALIAS LALAN SINGH)

- (a) : The Department of Fisheries, Government  of India has been allocated budgetary support of Rs. 2465.00 crore in BE for the year 2025-26, which has been reduced to Rs. 1500.00 crore at RE stage under the Pradhan Mantri Matsya Sampada Yojana(PMSSY).The  PMSSY  is  a  Centrally  Sponsored  Scheme,  where  funds  are provided  by  the  Government  of  India  on  a  matching  share  basis.  The  actual implementation of the scheme is the responsibility of the State Governments and their implementing agencies. Details of the main reasons attributed for under-utilisation of funds are as follows:
- (i) Delay  in  compliance  of  new  guidelines  on  fund  flow  mechanism  and readiness by the States:  The Department of Fisheries (DoF), Government of India, approves the Annual Action Plans of States and issues the Mother Sanction  for  release  of  funds  as  per  Ministry  of  Finance  guidelines. However,  States  can  use  the  funds  only  as  per  their  readiness  and preparedness at the ground level.
- (ii) Delay in On-boarding on SNA-SPARSH:  Some States Governments took time  to  shift  to  the  SNA-SPARSH  system,  including  opening  of  accounts and  completing  required  formalities.  This  delayed  the  release  and  use  of funds.
- (iii) Unspent  funds  from  Previous  Years:  States  are  required  to  first  utilise unspent central funds of earlier years before receiving fresh Central funds. Availability  of  such  unspent  balances  has  restricted  new  releases  and resulted in lower utilisation.
- (iv) Slow  pace  of  expenditure  by  States/UTs:  Spending  at  the  State/UT  level has  been  slow  due  to  delays  in  selection  of  beneficiary,  tendering,  land issues, and execution of projects, especially infrastructure-related works.
- (v) Delay  in  Providing  State  Matching  Share:    Since  PMSSY  works  on  a matching share basis, timely release of the State share is essential. In some cases,  States  could  not  release  their  share  on  time  due  to  financial constraints, which affected the utilisation of Central funds.
- (vi) Lack  of  viable  Project  Proposals:  Some  States  did  not  submit  enough financially and technically sound projects as per PMSSY guidelines. Weak project planning and limited technical capacity affected approvals and fund utilisation.
- (vii) Regular  Monitoring  by  DoF,  GoI:  The  Department  of  Fisheries,  GoI, regularly reviews the physical and financial progress of the scheme through weekly Senior official Meeting (SoMs) and periodic regional review meetings (RRMs) with States/UTs. Despite close monitoring, actual utilisation depends on the pace of implementation of approved projects/activities  by States.

(b)  to  (d)  :  The  Department  of  Fisheries,  Government  of  India,  supports  fisheries startups  under  the  Pradhan  Mantri  Matsya    Sampada  Yojana(PMMSY)  to  promote innovation, sustainability, and efficiency through seed funding and incubation support. The Department of Fisheries, Government of India in collaboration with Startup India under Invest India, Department for Promotion of Industry and Internal Trade (DPIIT), Ministry  of  Commerce  &  Industry  had  on  13 th     January  2022  organized  a  Fisheries Startup Grand Challenge and awarded 12 fisheries startups with cash grants of Rs. 2.00  lakh  each,  along  with  incubation  support  and  seed  funding  of  Rs.  20.00  lakh (General  category)  and  Rs.  30.00  lakh  (SC/ST/Women)  for  10  startups  to  develop viable  pilots  for  commercialization.  Further,  to  promote  innovation,  boost  private investments, enhance productivity, and strengthen market linkages, the Department of Fisheries, Government of India has also approved 39 project proposals with subsidy assistance of Rs. 31.22 crore under the Entrepreneur Model of PMMSY.

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