Parliament Question: Promotion of MSME Units in Madhya Pradesh

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.: 2 : 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 16th 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 31stJanuary 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 31stJanuary 2026, Rs. 945crore has been approved and Rs. 575 crore has been disbursed to selected incubators. Under CGSS, as on 31stJanuary 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.: 3 : 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 under- performing 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. *****