Lok Sabha Question No. 6212 (UNSTARRED), answered on 2026-04-02
Subject: Promotion of MSME Units in Madhya Pradesh
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Smt. Anita Nagarsingh Chouhan

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

## LOK SABHA UNSTARRED QUESTION No. 6212 TO BE ANSWERED ON 02.04.2026

## PROMOTION OF MSME UNITS IN MADHYA PRADESH

## 6212. SMT. ANITA NAGARSINGH CHOUHAN:

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

- (a) whether  the  Government  is  implementing  schemes  and  programmes  to  promote  employment generation through industries in Madhya Pradesh and taking the steps to establish coordination with Micro, Small and Medium Enterprises (MSMEs) in Madhya Pradesh and if so, the details thereof;
- (b) whether any special policy or incentive scheme has been implemented by the Government, in collaboration with State Government of Madhya Pradesh, for the establishment of industrial units and for enhancing employment opportunities at the local level and if so, the details thereof;
- (c) the number of industrial units established so far under these schemes and the number of youths who have obtained employment in Madhya Pradesh; and
- (d) whether any special initiative has been undertaken by the Government for the establishment of industries  and  promotion  of  MSME  units  in  the  Ratlam-Jhabua-Alirajpur  areas  under  Lok  Sabha Constituency No. 24 and if so, the details thereof?

## ANSWER

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

(a) to (c): Details of schemes and programmes being implemented by the Government to promote employment generation  through  industries  throughout  the  country  including  in  the  State  of  Madhya Pradesh are given below:

- i. Ministry of MSME, through Khadi and Village Industries Commission (KVIC), is implementing  Prime  Minister's  Employment  Generation  Programme  (PMEGP)  for  assisting entrepreneurs in setting up of new micro enterprises in the non-farm sector, primarily in rural areas by providing financial assistance in the form of Margin Money (MM) Subsidy on bank loans. It aims to provide sustainable employment opportunities to traditional artisans/ rural and urban unemployed youth at their doorstep. Since its inception in FY 2008-09 till FY 2025-26 (upto 30.03.2026),  51,984 no. of micro enterprises have been assistedwith MM Subsidy of Rs. 1,725.45  crore  generating  estimated  employment  opportunities  to  around  4.31  lakh  persons under PMEGP in Madhya Pradesh.
- ii. A definition based on the twin criteria of investment and turnover was adopted to define Micro, Small  and  Medium  Enterprises  (MSMEs)  in  2020.  For  registration  of  MSMEs,  Udyam Registration Portal (URP) was launched on 01.07.2020. Further, to formalise Informal Micro Enterprises (IMEs), Udyam Assist Platform (UAP) was launched on 11.01.2023.  7,83,02,882 number of Enterprises have been registered all over India on Udyam Registration Portal (URP) &  Udyam  Assist  Platform  (UAP)  Since  01.07.2020  to  28.02.2026;  4,827,725  in  Madhya Pradesh.

- iii. Pradhan  Mantri  Mudra Yojana  (PMMY)  was  launched  on  08.04.2015  under  which  collateral free  institutional  credit  is  provided  by  Member  Lending  Institutions  (MLIs)  i.e.  Scheduled Commercial Banks (SCBs), Regional Rural Banks (RRBs), Non-Banking Financial Companies (NBFCs) and Micro Finance Institutions (MFIs) to non-corporate, non-farm small entrepreneurs.Under PMMY, a total of 18.37 crore loans have been extended across the country during the last three years, i.e., from April 2022 to March 2025.
- iv. Startup  India  initiative  was  launched  on  16 th January  2016  to  build  a  strong  ecosystem  for nurturing  innovation,  startups  and  encouraging  investments  in  the  startup  ecosystem  of  the country.  Under  the  Startup  India  initiative,  the  Government  is  implementing  three  flagship Schemes,  Fund  of  Funds  for  Startups  (FFS),  Startup  India  Seed  Fund  Scheme  (SISFS),  and Credit  Guarantee  Scheme  for  Startups  (CGSS)  to  provide  funding  opportunities  and  support startups  across  sectors  at  various  stages  of  their  business  cycle.Under  FFS,  as  on  31 st January 2026, Rs. 12,362.70 crore has been committed (gross commitments) and Rs. 6,829.47 crore has been  disbursed  to/drawdown  by  Alternative  Investment  Fund  (AIFs).  Under  SISFS,  as  on 31 st January  2026,  Rs.  945crore  has  been  approved  and  Rs.  575  crore  has  been  disbursed  to selected incubators. Under CGSS, as on 31 st January 2026, loans amounting to Rs. 925.90 crore havebeen guaranteed for startup borrowers.
- v. Ministry  of  MSME  is  implementing  Credit  Guarantee  Scheme  (CGS)  for  Micro  and  Small Enterprises  (MSEs)  through  Credit  Guarantee  Fund  Trust  for  Micro  and  Small  Enterprises (CGTMSE) to provide credit guarantee for loans extended to MSEs across the country without collateral or third-party guarantee. The ceiling for guarantee coverage under the scheme is Rs 10 crore.A  total  of  1,39,39,040  credit  guarantees,  amounting  to  Rs.  13,16,741  crore,  have  been approved across the country under the Credit Guarantee Scheme since its inception in 2000 up to  28.02.2026.  During  the  same  period,  6,67,050  credit  guarantees,  amounting  to  Rs.  60,367 crore, have been approved in the State of Madhya Pradesh.
- vi. Self-Reliant India (SRI) Fund has been set up to infuse Rs. 50,000 Crore as equity funding in Micro Small and Medium Enterprises (MSMEs) with a provision of Rs. 10,000 Crore from the Government of India and Rs. 40,000 Crore through Private Equity/Venture Capital Funds. The Budget 2026-27 has also announced a support of Rs 2,000 crore to top up the SRI Fund set up in  2021 to continue support to micro enterprises. As reported by NSIC Venture Capital Fund Limited (NVCFL), since inception in October 2021 till 28.02.2026, total  71 Daughter  Funds have been empanelled with NVCFL i.e. Mother Fund. SRI Fund has assisted 731 MSMEs by way of total fund investment of Rs. 17,438 crore. Out of which, 7 MSMEs have been assisted by a way of total fund investment of Rs. 49.30 crore in Madhya Pradesh.

(d): Initiatives  undertaken  by  the  Government  under  PMEGP  for  establishment  of  industries  and promotion of MSME units throughout the country including the Ratlam-Jhabua-Alirajpur areas under Lok Sabha Constituency No. 24 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. As per RBI's Master Directions on lending to MSMEs, no collateral security is to be insisted by Banks for projects involving loan up to Rs. 20 lakh. Furthermore, timelines for credit decisions for loans upto Rs. 25 lakh to units in the MSE borrowers has been updated to not more than 14 working days.
- iv. Awareness  and  outreach  programmes  in  all  the  States/UTs  including  backward  and  underperforming areas, Aspirational districts, Northeastern Region, etc. to identify potential beneficiaries  and  provide necessary  guidance  and  handholding support during the  application process.
- v. Establishment of PMEGP Helpdesks at State/Divisional Offices to provide real-time assistance to applicants.
- vi. Acceptance  of  PMEGP  applications  from  beneficiaries  in  physical  form  in  19  regional languages excluding Hindi and English.
- vii. No requirement for any educational qualification under PMEGP for setting up projects costing up to Rs. 10 lakh in manufacturing sector and up to Rs. 5 lakh in service sector.
- viii. Conducting Entrepreneurship Development Programmes and webinars for prospective PMEGP entrepreneurs  aimed  at  developing  and  improving  their  managerial,  technical,  and  business skills.
- ix. A wide range of more than 1,000 model Detailed Project Reports have been prepared on various industries and made available on the PMEGP online portal to improve quality of proposals.
- x. Financial literacy camps and customer awareness programmes conducted by Banks to educate prospective entrepreneurs about various initiatives of the Government, including PMEGP.
- xi. Negative  List  has  been  modified  to  allow  more  activities  under  Animal  Husbandry  such  as dairy, poultry, aquaculture, insects (bees, sericulture, etc.) under PMEGP.

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