Lok Sabha Question No. 2244 (UNSTARRED), answered on 2026-02-12
Subject: Implementation of PMEGP
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Asaduddin Owaisi

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

## LOK SABHA UNSTARRED QUESTION No. 2244 TO BE ANSWERED ON 12.02.2026

## IMPLEMENTATION OF PMEGP

## 2244. SHRI ASADUDDIN OWAISI:

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

- (a) whether the Government is aware that the banks are rejecting a high number of Prime Minister Employment Generation Programme (PMEGP) applications on the grounds of service area and if so, the actions taken by the Government to reduce this number;
- (b) whether  interest  was  levied  on  Government  subsidies  provided  to  some  enterprises  under  the scheme, if so, the measures taken to resolve this issue;
- (c) the efforts being made by the Government to increase awareness and participation in the program, since the number of women entrepreneurs and young individuals covered under the program has dropped significantly; and
- (d) the  number  of  units  established  with  support  under  this  program,  region-wise  and  their contribution to the manufacturing sector's GDP?

## 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 and the final rejection or sanction of projects or release of loan is done at the level of the concerned financing banks  which  appraise  the  projects  and  take  their  own  credit  decision  based  upon  technical  and economical  viability  of  each  project.  The  option  for  rejecting  the  applications  on  account  of  'Out  of Service Area' and 'Target Achieved' by Banks has been removed on the portal. The rate of rejection of PMEGP applications by Banks has come down from 63 percent in FY 2019-20 to 46 percent in FY 202425.
- (b): As per PMEGP guidelines, no interest is payable on the Term Deposit Receipt/Subsidy Reserve Fund (TDR/SRF), and no interest shall be charged on the portion of the loan corresponding to the amount kept as TDR/SRF out of the Margin Money subsidy received from the Government. The Ministry has advised all major banks to ensure compliance with this provision. Additionally, banks are mandated to update the revised interest rate and TDR/SRF details on the PMEGP portal.

- (c): Steps  taken  by  Government  to  increase  awareness  and  participation  of  potential  beneficiaries including women and youth in PMEGP 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, webinars and workshops in all the States/UTs including backward and under-performing areas, Aspirational districts, North Eastern Region, etc.
- iv. Acceptance of PMEGP applications from beneficiaries in physical form in 19 regional languages excluding Hindi and English.
- v. Disseminating  Information,  Education  and  Communication  (IEC)  material  and  video  clips  in regional languages to promote PMEGP across all category of beneficiaries
- vi. Conduct of two-days free online Entrepreneurship Development Programme (EDP) for prospective entrepreneurs.
- vii. 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.

(d): During the last  four  years  i.e.  FY  2021-22  to  FY  2024-25,  around  3.37  lakh  micro  enterprises have been assisted under PMEGP. During the period, around 49% of the total units i.e. around 1.65 lakh micro  enterprises  have  been  assisted  under  manufacturing  sector.  State/UT  wise  number  of  micro enterprises assisted during the period is given at Annexure I.

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ANNEXURE-I ANNEXURE-I REFERRED TO IN REPLY TO PART (d) OF THE LOK SABHA UNSTARRED

## QUESTION NO. 2244 FOR ANSWER ON 12.02.2026.

| Sr. No.   | State/UT Name     |   No. of micro enterprises assisted during the last four years i.e. FY 2021-22 to FY 2024-25 |
|-----------|-------------------|----------------------------------------------------------------------------------------------|
| 1         | Andaman Nicobar   |                                                                                          479 |
| 2         | Andhra Pradesh    |                                                                                        14376 |
| 3         | Arunachal Pradesh |                                                                                          679 |
| 4         | Assam             |                                                                                        12038 |
| 5         | Bihar             |                                                                                        18808 |
| 6         | Chandigarh        |                                                                                           51 |
| 7         | Chhattisgarh      |                                                                                         9795 |
| 8         | Delhi             |                                                                                          248 |
| 9         | Goa               |                                                                                          260 |
| 10        | Gujarat*          |                                                                                        11997 |
| 11        | Haryana           |                                                                                         5471 |
| 12        | Himachal Pradesh  |                                                                                         3974 |
| 13        | Jammu Kashmir     |                                                                                        58599 |
| 14        | Jharkhand         |                                                                                         7118 |
| 15        | Karnataka         |                                                                                        19006 |
| 16        | Kerala            |                                                                                        11567 |
| 17        | Ladakh            |                                                                                          643 |
| 18        | Lakshadweep       |                                                                                            9 |
| 19        | Madhya Pradesh    |                                                                                        21957 |
| 20        | Maharashtra**     |                                                                                        12376 |
| 21        | Manipur           |                                                                                         2640 |
| 22        | Meghalaya         |                                                                                         2399 |
| 23        | Mizoram           |                                                                                         1947 |
| 24        | Nagaland          |                                                                                         3489 |
| 25        | Odisha            |                                                                                        13023 |
| 26        | Puducherry        |                                                                                          159 |
| 27        | Punjab            |                                                                                         5793 |
| 28        | Rajasthan         |                                                                                         7230 |
| 29        | Sikkim            |                                                                                          590 |
| 30        | Tamil Nadu        |                                                                                        22875 |
| 31        | Telangana         |                                                                                         9799 |
| 32        | Tripura           |                                                                                         2979 |
| 33        | Uttar Pradesh     |                                                                                        41402 |
| 34        | Uttarakhand       |                                                                                         5727 |
| 35        | West Bengal       |                                                                                         7709 |
| Total     | Total             |                                                                                       337212 |