**Summary:**
In response to Lok Sabha Unstarred Question No. 3056 on August 7, 2025, regarding closures of loans under the Prime Minister's Employment Generation Programme (PMEGP), the Ministry of Micro, Small and Medium Enterprises addressed concerns about unit inspection procedures. The Ministry clarified that physical verification of PMEGP units is conducted by the Khadi and Village Industries Commission (KVIC) through third-party agencies to facilitate the timely adjustment of Margin Money subsidy. To enhance transparency and efficiency, KVIC has partnered with the Department of Posts, leveraging its extensive network for physical verification, particularly in rural areas. Mechanisms for ensuring compliance by external agencies include: i) clearly defined procedures and responsibilities within the Memorandum of Understanding (MoU) with the Department of Posts; ii) monitoring progress via the Physical Verification (PV) module of the PMEGP portal; and iii) regular review meetings between the Ministry, the Department of Posts, and other stakeholders.
Key Entities Referenced
Prime Minister's Employment Generation Programme: A Government of India initiative (PMEGP) focused on employment generation.
Khadi and Village Industries Commission: An organization (KVIC) responsible for the implementation of PMEGP and physical verification.
Ministry of Micro, Small and Medium Enterprises: The Indian government ministry responsible for policies related to micro, small, and medium enterprises.
LOK SABHA: The lower house of the Parliament of India, where the question was raised.
SHRI TANUJ PUNIA: The Member of Parliament who raised the question in LOK SABHA.
SUSHRI SHOBHA KARANDLAJE: The Minister of State for Micro, Small and Medium Enterprises who provided the answer.
GENSIS International: External agency involved in outsourcing inspection procedure for PMEGP.
Department of Posts: An organization that has signed an MoU with KVIC for physical verification of PMEGP units.
GOVERNMENT OF INDIA
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
LOK SABHA
UNSTARRED QUESTION No. 3056
TO BE ANSWERED ON 07.08.2025
CLOSURES OF LOANS UNDER PMEGP
3056. SHRI TANUJ PUNIA:
Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:
(a) whether the Government has failed to conduct the unit inspection procedure required for
closing loans under Prime Minister's Employment Generation Programme (PMEGP), if so, the
details thereof;
(b) whether the Government is aware that outsourcing inspection procedure to the external
agency GENSIS International is causing confusion among entrepreneurs regarding the platform for
registering their grievances;
(c) if so, the manner in which the Government is providing clarity on the matter, and
(d) the mechanisms in place for the timely and proper compliance of procedures and
responsibilities by external agencies?
ANSWER
MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SUSHRI SHOBHA KARANDLAJE)
(a) to (d): Under Prime Minister’s Employment Generation Programme(PMEGP), physical
verification of the establishment and working status of each of the units set up is undertaken by
Khadi and Village Industries Commission(KVIC) through third-party agencies having expertise in
this domain in order to facilitate the timely adjustment of Margin Money subsidy into the
beneficiary’s loan account. To ensure transparency and efficiency in the physical verification
process, KVIC has signed an MoU with the Department of Posts for carrying out physical
verification of PMEGP units by leveraging its extensive postal network across the country
particularly in rural areas.
Mechanisms in place to monitor and implement timely and proper compliance of procedures
and responsibilities by external agencies include the following:
i. Proper procedures and responsibilities have been included in the MoU signed with the
Department of Posts to ensure timely and proper compliance.
ii. Progress of physical verifications is updated via Physical Verification (PV) module of
PMEGP portal and is regularly monitored.
iii. Review meetingsare regularly held by the Ministry with Department of Posts and other
stakeholders to monitor the progress and strengthen the implementation of physical
verification process.
*****