Executive Summary:
This document presents the Indian government's response to questions regarding the Prime Minister's Employment Generation Programme (PMEGP) in Tamil Nadu. It details the funds disbursed under PMEGP since its inception, clarifies that no specific evaluation study has been conducted in Tamil Nadu, provides data on MSMEs established and employment generated in the state, and outlines measures to promote MSMEs, including in Thoothukudi district. The data provided covers the period from FY 2008-09 to FY 2025-26 (up to August 18, 2025).
Key Points / Main Content:
PMEGP Funding and Allocation:
* PMEGP is a Central sector scheme; therefore, no state-wise budget allocation is done. Funds are utilized based on demand and loan sanctions by financial institutions.
* A total of Rs. 28095.76 Crore of Margin Money (MM) subsidy has been disbursed under PMEGP since FY 2008-09 to FY 2025-26 (up to 18.08.2025) across all States and UTs.
* Tamil Nadu received Rs. 1754.14 Crore in Margin Money (MM) subsidy under PMEGP during the same period.
PMEGP Performance in Tamil Nadu:
* No evaluation study of PMEGP's performance has been conducted in Tamil Nadu.
* 68,639 micro enterprises in Tamil Nadu have been assisted under PMEGP since FY 2008-09 till FY 2025-26 (up to 18.08.2025).
* These enterprises have generated approximately 6.40 lakh employment opportunities in Tamil Nadu.
MSME Promotion Measures:
* The government implements various schemes to promote MSMEs across the country, including in Thoothukudi district.
* Schemes include:
* Prime Minister's Employment Generation Programme (PMEGP): Provides Margin Money (MM) subsidy to entrepreneurs for establishing new micro-enterprises in the non-farm sector. Subsidy rates vary based on category and location (rural/urban).
* Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE): Provides credit guarantees for loans to MSEs without collateral security.
* Entrepreneurship and Skill Development Programme (ESDP): Motivates individuals to consider self-employment and entrepreneurship, promoting new enterprises and building capacity.
* Raising and Accelerating MSME Performance (RAMP): Enhances MSME performance through technology upgradation, innovation, and market access with State Governments participation.
* MSME Champions Scheme: Unifies various schemes, including MSME Sustainable ZED Certification Scheme, MSME Competitive Lean Scheme and MSME Innovative for incubation, IPR, Design and Digital MSME Scheme.
Impact Analysis:
Entrepreneurs/Beneficiaries:
Impact: Access to financial assistance (Margin Money subsidy) through PMEGP for establishing micro-enterprises. Access to credit guarantees through CGTMSE. Opportunity to participate in skill development programs (ESDP) and benefit from schemes promoting technology upgradation and market access (RAMP, MSME Champions Scheme).
Action Required: Utilize available schemes and resources to establish and grow their businesses.
Financial Institutions (Member Lending Institutions - MLIs):
Impact: Opportunity to extend loans to MSEs with credit guarantees provided by CGTMSE.
Action Required: Participate in CGTMSE scheme to facilitate lending to MSEs.
State Governments/Union Territories:
Impact: Active participation in RAMP scheme to enhance MSME performance through technology upgradation, innovation, digitization, market access, credit etc.
Action Required: Preparation of a Strategic Investment Plan SIP acting as roadmap for development and promotion of MSME sector in the respective State/UT under RAMP scheme.
Government of India (Ministry of MSME):
Impact: Overseeing and implementing PMEGP and related schemes. Monitoring the performance of these schemes and their impact on MSME development and employment generation.
Action Required: Continue implementing and refining schemes to promote MSMEs, address regional disparities, and improve access to finance and skills.
Key Entities Referenced
Prime Ministers Employment Generation Programme: A central sector scheme by the Indian government to assist entrepreneurs in setting up new micro enterprises in the non-farm sector.
Tamil Nadu: A state in southern India where the performance of PMEGP is being evaluated.
Micro, Small and Medium Enterprises: The sector of enterprises that the Ministry of MSME is responsible for.
Thoothukudi district: A district in Tamil Nadu where special measures to promote MSMEs are under consideration.
Credit Guarantee Fund Trust for Micro and Small Enterprises: A trust instituted by the Ministry of MSME and SIDBI to provide credit guarantee for loans to MSEs.
Entrepreneurship and Skill Development Programme: A central sector scheme to motivate individuals to consider self-employment or entrepreneurship.
Raising and Accelerating MSME Performance: A World Bank-supported scheme aimed at enhancing MSME performance.
Small Industries Development Bank of India: An Indian financial institution that jointly instituted the Credit Guarantee Trust Fund for Micro and Small Enterprises along with the Ministry of Micro, Small and Medium Enterprises
GOVERNMENT OF INDIA
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
LOK SABHA
UNSTARRED QUESTION No.4820
TO BE ANSWERED ON 21.08.2025
PMEGP IN TAMIL NADU
4820. SMT. KANIMOZHI KARUNANIDHI:
Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:
(a) the details of funds sanctioned, disbursed and utilised under the Prime Minister’s Employment
Generation Programme (PMEGP) since its inception, State-wise particularly for the State of Tamil
Nadu;
(b) whether the union Government has evaluated the performance of the Prime Minister’s
Employment Generation Programme (PMEGP) in Tamil Nadu, a key industrial State and if so, the
details thereof;
(c) the details regarding the number of Micro, Small and Medium Enterprises (MSMEs)
established and employment generated through this scheme in Tamil Nadu; and
(d) whether special measures have been taken to promote MSMEs in Thoothukudi district and if
so, the details thereof and if not, the reasons therefor?
ANSWER
MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SUSHRI SHOBHA KARANDLAJE)
(a): Prime Minister’s Employment Generation Programme (PMEGP) being a Central sector
scheme, no State-wise allocation of budget is done. Funds are utilized based on the demand generated
and loans sanctioned by the financial institutions.State/UT- wise details of Margin Money (MM)
subsidy disbursed under PMEGP since its inception i.e. FY 2008-09 to FY 2025-26 (up to 18.08.2025)
is given at Annexure.
(b): No evaluation study of the performance of PMEGP has been undertaken in Tamil Nadu.
(c): Since its inception in FY 2008-09 till FY 2025-26 (up to 18.08.2025), 68,639 nos. of micro
enterprises have been assisted under PMEGP in the State Tamil Nadu generating estimated
employment opportunities for 6.40 lakh persons.
(d): Government is implementing various schemes to promote MSMEs in the country including
Thoothukudi district. These schemes include Prime Minister's Employment Generation Programme
(PMEGP), Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE),
Entrepreneurship and Skill Development Programme (ESDP), Micro and Small Enterprises - Cluster
Development Programme (MSE-CDP), Raising and Accelerating MSME Performance (RAMP) and
MSME Champions Scheme. Details on the same are as below:: 2 :
i) Prime Minister’s Employment Generation Programme (PMEGP): It is a Central Sector
Scheme for assisting entrepreneurs in setting up of new micro enterprises in the non-farm sector.
Under PMEGP, General Category beneficiaries are assisted with Margin Money (MM) subsidy of
25% of the project cost in rural areas and 15% in urban areas. For beneficiaries belonging to
Special Categories such as Scheduled Castes, Scheduled Tribes, OBCs, Minorities, Women, Ex-
servicemen, Physically Handicapped, Transgenders,beneficiaries belonging to Northeastern
Region, Hill and Border areas, and Aspirational Districts, the Margin Money subsidy is 35% in
rural areas and 25% in urban areas.
ii) Credit Guarantee Scheme for Micro and Small Enterprises: The Ministry of Micro, Small and
Medium Enterprises and Small Industries Development Bank of India (SIDBI) jointly instituted
the Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE) to provide credit
guarantee for the loans extended by Member Lending Institutions (MLIs) to Micro and Small
Enterprises (MSEs) without collateral security and third-party guarantee. CGTMSE implements
the Credit Guarantee Scheme (CGS) for MSEs.
iii) The Entrepreneurship and Skill Development Programme (ESDP) Scheme: A Central Sector
continuing scheme with the objective to motivate young persons (Men and Women) representing
different sections of the society including SC/ST women, physically handicapped, Ex-servicemen,
and BPL persons to consider self-employment or entrepreneurship as one of the career options.
The ultimate objective is to promote new enterprises, build capacity of existing MSMEs and
inculcate entrepreneurial culture in the country.
iv) Raising and Accelerating MSME performance (RAMP): A World bank supported Central
Sector Scheme aimed at enhancing the performance of MSME by promoting technology
upgradation, innovation, digitization, market access, credit etc. through active participation of the
State Governments. All States/UTs have been approved a grant of Rs. 5 crore each for preparation
of a Strategic Investment Plan (SIP) acting as roadmap for development and promotion of MSME
sector in the respective State/UT.
v) MSME Champions Scheme: MSME Champions Scheme is a holistic approach to unify,
synergize, and converge various schemes and interventions with a single purpose. Component
under MSME Champions Scheme are MSME Sustainable (ZED) Certification Scheme, MSME-
Competitive (Lean) Scheme and MSME Innovative (for incubation, IPR, Design and Digital
MSME) Scheme.
*****ANNEXURE
ANNEXURE REFERRED TO IN REPLY TO PART (a) OF THE LOK SABHA UNSTARRED
QUESTION NO. 4820 FOR ANSWER ON 21.08.2025.
State/UT-wise Margin Money (MM) subsidy disbursed under PMEGP since its inception in FY 2008-
09 till FY 2025-26 (up to 18.08.2025):
Sr. Margin Money (MM) Subsidy disbursed
State/UT
No. (Rs. in Crore)
1 Andaman Nicobar 26.08
2 Andhra Pradesh 1411.42
3 Arunachal Pradesh 89.66
4 Assam 827.48
5 Bihar 1371.71
6 Chandigarh 8.38
7 Chhattisgarh 766.61
8 Delhi 31.54
9 Goa 34.16
10 Gujarat* 2378.18
11 Haryana 648.85
12 Himachal Pradesh 396.3
13 Jammu Kashmir 2075.36
14 Jharkhand 580.46
15 Karnataka 1518.4
16 Kerala 739.82
17 Ladakh 39.72
18 Lakshadweep 1.1
19 Madhya Pradesh 1684.89
20 Maharashtra** 1469.74
21 Manipur 275.36
22 Meghalaya 140.67
23 Mizoram 157.74
24 Nagaland 286.32
25 Odisha 1152.7
26 Puducherry 15.83
27 Punjab 687.76
28 Rajasthan 1089.38
29 Sikkim 32.99
30 Tamil Nadu 1754.14
31 Telangana 740.38
32 Tripura 298
33 Uttar Pradesh 3791.89
34 Uttarakhand 449.21
35 West Bengal 1123.53
Total 28095.76
* Including Daman and Diu ** Including Dadra Nagar and Haveli