**Executive Summary**
This document presents the Indian government's response to an unstarred question regarding the Prime Minister's Employment Generation Programme (PMEGP) in Tamil Nadu, addressed to the Minister of Micro, Small and Medium Enterprises. The questions focus on the number of sanctioned projects, representations about delays, procedural delays in urban districts, and steps to ensure timely benefits. The response was provided on 11.12.2025.
**Key Points / Main Content**
* **Sanctioned Projects:**
* The number of PMEGP projects sanctioned by banks in Tamil Nadu in the last three financial years:
* 2022-23: 11,475
* 2023-24: 16,355
* 2024-25: 12,057
* **Representations Regarding Delays:**
* No representations have been received from the Government of Tamil Nadu regarding delays in approvals or fund release under PMEGP and CGTMSE schemes.
* **Procedural Delays:**
* The Ministry of Micro, Small and Medium Enterprise (MSME) administers PMEGP and the Khadi and Village Industries Commission (KVIC) implements it. According to information from KVIC, no procedural delays were observed in urban districts of Tamil Nadu such as Chennai, Kancheepuram, Chengalpattu, and Tiruvallur.
* **Steps for Timely Sanctioning and Disbursal:**
* Review meetings are held periodically with implementing agencies (IAs) such as KVIC, State offices of KVIC, KVIBs, DICs & Coir Board, and financial institutions to review the progress of the Scheme.
* State Level Monitoring Committee (SLMC) and District Level Monitoring Committee (DLMC) meetings are held to monitor the implementation of the scheme.
* Top-level, State Level and District Level Bankers meetings are held regularly to ensure proper loan sanctioning and margin money disbursement by banks.
* The PMEGP Portal is in place to monitor the entire process of PMEGP application until the Margin Money subsidy is adjusted into the beneficiary's loan account.
**Impact Analysis**
**Stakeholder:** Banks (lending institutions)
* **Impact:** Responsible for appraising projects and making credit decisions.
* **Action Required:** Sanction projects per scheme guidelines. Disburse loans and monitor.
**Stakeholder:** Beneficiaries of PMEGP (MSMEs in Tamil Nadu)
* **Impact:** Affected by the availability and timely disbursal of benefits.
* **Action Required:** Utilize the PMEGP portal and contact relevant agencies to address any issues.
**Stakeholder:** Government of Tamil Nadu
* **Impact:** Concerned with the overall implementation and impact of PMEGP in the state.
* **Action Required:** Monitor the implementation of the scheme and report any issues or delays to the Union Government.
**Stakeholder:** Khadi and Village Industries Commission (KVIC)
* **Impact:** Responsible for implementing PMEGP at the national level.
* **Action Required:** Continue monitoring and addressing procedural delays.
Key Entities Referenced
Prime Minister's Employment Generation Programme (PMEGP): A demand-driven scheme designed to generate employment opportunities in India by assisting individuals and institutions in setting up micro-enterprises.
Ministry of Micro, Small and Medium Enterprises: The central ministry responsible for administering the PMEGP scheme.
Tamil Nadu: The state where the PMEGP scheme's impact and project sanctions are being specifically examined in this document.
Khadi and Village Industries Commission (KVIC): The implementing agency for PMEGP at the national level.
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE): Scheme mentioned alongside PMEGP, regarding representations about delays in approvals or fund releases.
GOVERNMENT OF INDIA
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
LOK SABHA
UNSTARRED QUESTION No. 1958
TO BE ANSWERED ON 11.12.2025
PMEGP IN TAMIL NADU
1958. DR. T SUMATHY Alias THAMIZHACHI THANGAPANDIAN:
Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:
(a) whether the number of projects sanctioned under the Prime Minister’s Employment Generation
Programme (PMEGP) in Tamil Nadu has declined during the last three financial years and if so, the
details thereof;
(b) whether the Union Government has received representations from the Government of Tamil
Nadu regarding delays in approvals or fund release under PMEGP and CGTMSE schemes and if so, the
details thereof;
(c) whether beneficiary approvals in urban districts such as Chennai, Kancheepuram, Chengalpattu
and Tiruvallur have faced procedural delays due to revised eligibility norms, if so, the details thereof;
and
(d) the steps being taken to ensure timely sanctioning and disbursal of benefits to MSMEs inTamil
Nadu, particularly for urban manufacturing and service-sector clusters?
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.
Banks, as lending institutions, appraise the projects and take their own credit decisions on the basis of
viability of each project as per the scheme guidelines. Number of projects sanctioned by banks in Tamil
Nadu under PMEGP Scheme during the last three financial years is given at below:
Year No. of projects Sanction by bank
2022-23 11,475
2023-24 16,355
2024-25 12,057
(b): No representations on delays in approvals or fund release have been received from the
Government of Tamil Nadu regarding PMEGP and CGTMSE Schemes.: 2 :
(c): PMEGP being a central sector scheme is administered by the Ministry of Micro Small and
Medium Enterprise (MSME) and implemented by Khadi and Village Industries Commission (KVIC) at
national level. As per information provided by KVIC, no procedural delays were observed under the
scheme in the urban districts of Tamil Nadu such as Chennai, Kancheepuram, Chengalpattu and
Tiruvallur.
(d): Steps being taken under PMEGP to ensure timely sanctioning and disbursal of benefits across
the country including the State of Tamil Nadu, are as follows:
i. Review meetings with Implementing Agencies (IAs) i.e. Khadi and Village Industries
Commission (KVIC), State offices of KVIC, KVIBs, DICs & Coir Board and financial
institutions are periodically held to review the progress of implementation of the Scheme.
ii. State Level Monitoring Committee (SLMC) and District Level Monitoring Committee
(DLMC) meetings are held at State and District level to monitor the implementation of the
scheme.
iii. Top-level Bankers meeting, State Level Bankers Meetings and District Level Bankers
meetings are held on a regular basis to ensure proper loan sanctioning and margin money
disbursement by banks.
iv. A PMEGP Portal is in place for monitoring of the complete process of PMEGP application till
adjustment of Margin Money subsidy into beneficiary’s loan account.
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