**Executive Summary**
This document contains the Government of India's response to Unstarred Question No. 1993 in the Lok Sabha, due to be answered on December 11, 2025, regarding the establishment of new Micro, Small, and Medium Enterprises (MSME) units. The question addresses the status of MSMEs in the Etah-Kasganj and Aonla Lok Sabha Constituencies, including projects, challenges faced by local entrepreneurs, and future plans to strengthen the MSME ecosystem. The Ministry of MSME is implementing several schemes and initiatives to support MSMEs, including the Prime Minister's Employment Generation Programme (PMEGP) and the Micro and Small Enterprises-Cluster Development Programme (MSE-CDP).
**Key Points / Main Content**
* **Prime Minister's Employment Generation Programme (PMEGP):**
* Implemented by the Ministry of MSME through KVIC.
* Aims to generate employment opportunities primarily in rural areas by assisting entrepreneurs in setting up new micro-enterprises in the non-farm sector across the country.
* Number of micro-enterprises assisted under PMEGP and estimated employment generated in the Etah-Kasganj and Aonla Lok Sabha Constituencies during the last five years is detailed in Annexure I.
* **Micro and Small Enterprises-Cluster Development Programme (MSE-CDP):**
* Two projects approved under Infrastructure Development in Etah district.
* One project, the establishment of the Industrial Estate at Etah, is completed.
* The other project, pertaining to the upgradation of the Industrial Estate at Etah, is in progress.
* **Procurement and Marketing Support (PMS) Scheme:**
* Extends benefits for creating market access initiatives to Micro & Small Enterprises (MSEs), including MSEs from Uttar Pradesh.
* Initiatives include participation in Trade Fairs/Exhibitions, organizing domestic/international trade fairs/exhibition and participation, virtual trade fair, vendor development program, adoption of modern packaging techniques, adoption of Bar Code and e-Commerce platform, National workshops / seminar, and development of retail outlets.
* **Initiatives to Ensure Growth and Development of Micro Enterprises:**
* Enhancement of eligible maximum project cost from Rs. 25 lakh to Rs. 50 lakh for the manufacturing sector and from Rs. 10 lakh to Rs. 20 lakh for the service sector.
* Acceptance of PMEGP applications from beneficiaries in physical form in 19 regional languages since June 2025 excluding Hindi and English.
* Expanding activities under Animal Husbandry (dairy, poultry, aquaculture, sericulture) and allowing piggery in NER States.
* Banks should not insist on collateral security for projects involving loans up to Rs. 10 lakhs.
* Inclusion of applicants from Aspirational districts and Transgenders under special category eligible for higher subsidy.
* Availability of over 1,000 Model of Detailed Project Reports on the PMEGP online portal to help applicants submit quality DPRs.
* Entrepreneurship Development Programme (EDP) training is provided to prospective entrepreneurs.
* Awareness programs are being conducted in all States/UTs.
**Impact Analysis**
**Stakeholder: Prospective Entrepreneurs in Etah-Kasganj and Aonla Lok Sabha Constituencies**
**Impact**
The entrepreneurs will be able to establish micro-enterprises under the various schemes and benefit from initiatives like PMEGP and MSE-CDP. They will have access to increased project cost limits, specialized training, and support programs.
**Action Required**
Entrepreneurs should apply for assistance under PMEGP, MSE-CDP and take advantage of EDP training and other awareness programs to enhance their enterprise management skills.
**Stakeholder: Banks**
**Impact**
Banks are expected to support MSME growth by providing loans and adhering to guidelines that remove barriers such as collateral requirements for smaller loans.
**Action Required**
Banks need to implement the revised guidelines, especially regarding collateral-free loans up to Rs. 10 lakhs and support PMEGP applications.
**Stakeholder: Ministry of MSME**
**Impact**
The Ministry is responsible for implementing and monitoring the effectiveness of the PMEGP, MSE-CDP, and PMS schemes. It is accountable for the number of enterprises assisted and employment generated.
**Action Required**
The Ministry needs to continue monitoring the progress of projects, provide necessary support to entrepreneurs, and conduct awareness programs to ensure maximum participation.
Key Entities Referenced
Prime Minister's Employment Generation Programme (PMEGP): A central sector scheme implemented by the Ministry of MSME for generating employment opportunities by assisting prospective entrepreneurs in setting up micro enterprises in rural areas.
Ministry of Micro, Small and Medium Enterprises: The Indian government ministry responsible for policies and programs related to the development of micro, small and medium enterprises.
Micro and Small Enterprises-Cluster Development Programme (MSE-CDP): A scheme aimed at promoting the cluster development approach for enhancing the productivity and competitiveness of MSEs.
Etah: A district in Uttar Pradesh, India, where specific industrial estate projects related to MSME development are being undertaken.
Lok Sabha: The lower house of the Parliament of India, mentioned in the context of constituencies (Etah-Kasganj and Aonla) and questions raised regarding MSME establishment.
GOVERNMENT OF INDIA
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
LOK SABHA
UNSTARRED QUESTION No. 1993
TO BE ANSWERED ON 11.12.2025
ESTABLISHMENT OF NEW MSME UNITS
1993. SHRI DEVESH SHAKYA:
Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:
(a) the number of new units approved for establishment under the Micro, Small and
Medium Enterprises (MSME) sector in the Etah–Kasganj and Aonla Lok Sabha
Constituencies during the last five years and the number of such units currently operational
along with the impact of these units on employment generation in these regions;
(b) whether the Government has approved any special projects for MSME cluster
development, Common Facility Centres (CFCs), technology upgradation, skill development,
entrepreneurship promotion and expansion of digital and e-commerce access in the said
Constituencies and if so, the details thereof;
(c) whether local entrepreneurs are facing challenges in availing loans, credit guarantees,
subsidies or training support and if so, the details thereof along with the steps taken by the
Government to address such issues; and
(d) the details of future plans/strategy of the Government to strengthen the MSME
ecosystem in these areas?
ANSWER
MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SUSHRI SHOBHA KARANDLAJE)
(a): Ministry of MSME, through Khadi and Village Industries Commission (KVIC), is
implementing the Prime Minister’s Employment Generation Programme (PMEGP), a central
sector scheme for generating employment opportunities primarily in rural areas by assisting
prospective entrepreneurs in setting up new micro enterprises in the non-farm sector across
the country. The number of micro-enterprises assisted under PMEGP and estimated
employment generated in the Etah–Kasganj and Aonla Lok Sabha Constituencies during the
last five years is given at Annexure I.
(b): Under Micro and Small Enterprises-Cluster Development Programme (MSE-CDP)
Scheme, two projects have been approved under the Infrastructure Development in Etah
district. Of these, one project i.e. establishment of the Industrial Estate at Etah has been
successfully completed. The other project, pertaining to the upgradation of the Industrial
Estate at Etah, is currently in progress.: 2 :
Under Procurement and Marketing Support (PMS) scheme of Ministry of MSME,
benefits are extended for creating market access initiatives to Micro & Small Enterprises
(MSEs) including MSEs from Uttar Pradesh under components like participation in Trade
Fairs / Exhibitions, organizing domestic/ international trade fairs/exhibition and participation,
virtual trade fair, vendor development program, adoption of modern packaging techniques,
adoption of Bar Code and e-Commerce platform, National workshops / seminar, and
development of retail outlets.
(c) & (d): Initiatives undertaken by the Ministry of MSME under PMEGP to ensure the
growth and development of micro enterprises through credit access, subsidies and training
support across the country are as follows:
i. Enhancement of eligible 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. Acceptance of PMEGP applications from beneficiaries in physical form in 19
regional languages since June 2025 excluding Hindi and English.
iii. Enhancing the scope of activities by modifying Negative list to allow more activities
under Animal Husbandry like dairy, poultry, aquaculture and sericulture. As a special
case, piggery, a major source of livelihood in NER, is allowed in NER States.
iv. No collateral security is to be insisted by Banks for projects involving loan up to 10
lakhs.
v. Inclusion of applicants from Aspirational districts and Transgenders under special
category eligible for higher subsidy.
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
enabling applicants to submit quality DPRs.
vii. Entrepreneurship Development Programme (EDP) training is provided to prospective
entrepreneurs and beneficiariesto provide orientation and awareness pertaining to
various managerial and operational functions like finance, production, marketing,
enterprise management etc.
viii. Awareness programmes in all the States/UTs including backward and under-
performing areas, Aspirational districts, North Eastern Region etc.
*******ANNEXURE-I
ANNEXURE-I REFERRED TO IN REPLY TO PART (a) OF THE LOK SABHA UNSTARRED QUESTION NO. 1993 DUE
FOR ANSWER ON 11.12.2025.
Number of micro-enterprises assisted and estimated employment generated under PMEGP during the last five years in Etah, Kasganj
and Aonla Lok Sabha constituencies.
ETAH KASHGANJ AONLA
No. of micro Estimated No. of micro Estimated No. of micro Estimated
Financial Year
enterprises employment enterprises employment enterprises employment
Assisted generated Assisted generated Assisted generated
2020-21 81 648 64 512 275 2200
2021-22 107 856 109 872 313 2504
2022-23 123 984 70 560 207 1656
2023-24 145 1160 90 720 172 1376
2024-25 51 408 51 408 57 456
Total 507 4056 384 3072 1024 8192