Lok Sabha Question No. 4441 (UNSTARRED), answered on 2026-03-19
Subject: PMEGP in Tamil Nadu
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Malaiyarasan D

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

## LOK SABHA UNSTARRED QUESTION No. 4441 TO BE ANSWERED ON 19.03.2026

## PMEGP IN TAMIL NADU

## 4441.      SHRI MALAIYARASAN D:

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

(a) the  details  of  the  Prime  Minister's  Employment  Generation  Programme  (PMEGP)  and  the number of beneficiaries covered under the scheme in Tamil Nadu so far;

(b) the  details  of  financial  assistance  allocated  to Tamil  Nadu  under  the  PMEGP  Scheme  for  the establishment of new micro-enterprises and the total number of units set up in the State;

(c) the sectors or industries prioritized for funding under the PMEGP Scheme in Tamil Nadu and the impact of these initiatives on local employment and economic growth;

(d) the  steps  taken  by  the  Government  to  ensure  effective  implementation  and  monitoring  of  the PMEGP Scheme in Tamil Nadu, particularly in rural and underserved areas; and

(e) the  manner  in  which  the  Government  plans  to  enhance  awareness  and  accessibility  of  the PMEGP Scheme among the youth, women and marginalized communities in Tamil Nadu?

## ANSWER

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

(a) to  (c): Prime  Minister's  Employment  Generation  Programme  (PMEGP)  is  a  Central  Sector Scheme which provides financial assistance in the form of Margin Money (MM) Subsidy to potential entrepreneurs throughout the country including Tamil Nadu in setting up new micro enterprises in the non-farm  sector,  primarily  in  rural  areas.  The  scheme  aims  to  provide  sustainable  employment opportunities to traditional artisans/ rural and urban unemployed youth at their doorstep.

Since its inception i.e. FY 2008-09 till FY 2025-26 (up to 15.03.2026), 71,128 number of micro enterprises  have  been  assisted  in  the  State  of  Tamil  Nadu  with  Rs.  1,838.85  crore  as  MM  Subsidy generating estimated employment opportunities to around 6.6 lakh persons.

Several major sectors and industries are given priority under PMEGP throughout the country including Tamil Nadu based on their employment potential and relevance to rural and traditional skills. These include Agro-based and Food Processing, Forest-based Industries, Handmade Paper and Fibre, Mineral-based Industries, Polymer and Chemical-based Industries, Rural Engineering and Bio-Technology, Service and Textile related Activities.

(d): Steps  taken  by  the  Government  to  ensure  effective  implementation  and  monitoring  of  the PMEGP Scheme throughout the country including Tamil Nadu, particularly in rural and underserved areas 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. Acceptance  of  PMEGP  applications  from  beneficiaries  in  physical  form  in  19  regional languages excluding Hindi and English.
- iv. As per RBI Master Directions on lending to MSMEs, no collateral security to be insisted by Banks for projects involving loan up to Rs. 20 lakh. Strict compliance of this provision has been reemphasized to all financing Banks.
- v. Review of  rejection  reasons  and  removal  of  reasons  i.e.  "Out  of  Service Area"  and  "Target Achieved" as basis for rejection of PMEGP applications by banks.
- vi. 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.
- vii. Top  level  Banker's  meetings,  State  Level  Bankers  Meetings  and  District  level  Bankers Meetings held on a regular basis to  ensure proper sanctioning of loans  and disbursement of margin money.
- viii. 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 Centres (DICs) and financial institutions.
- ix. State  Level  Monitoring  Committee  (SLMC)  and  District  Level  Monitoring  Committee (DLMC) meetings held at State and District level on a regular basis to monitor and review the implementation of PMEGP.
10. (e): Steps taken by the Government to enhance awareness and accessibility of PMEGP among the youth, women and marginalized communities throughout the country including Tamil Nadu include the following:
- i. Awareness  and  outreach  programmes  in  all  the  States/UTs  including  backward  and  underperforming  areas,  Aspirational  districts,  North  Eastern  Region,  etc.  to  identify  potential beneficiaries  and  provide necessary  guidance  and  handholding support during the  application process.
- ii. Conduct  of  two-days  free  online  Entrepreneurship  Development  Programme  (EDP)  for prospective entrepreneurs.
- iii. An  online  PMEGP  portal  is  in  place  for  tracking  the  complete  process  from  application  till adjustment of MM subsidy into the beneficiary's loan account.
- iv. Acceptance  of  PMEGP  applications  from  beneficiaries  in  physical  form  in  19  regional languages excluding Hindi and English.
- v. Financial literacy camps and customer awareness programmes conducted by Banks to educate prospective entrepreneurs about various initiatives of the Government, including PMEGP.

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