Executive Summary:
The Ministry of Micro, Small and Medium Enterprises addresses schemes and programs supporting MSMEs in Tamil Nadu. The central government supports state efforts through schemes like PMEGP, Credit Guarantee Scheme, PM Vishwakarma, and others, implemented nationwide, with funds not allocated state-wise. Data includes registrations on the Udyam Portal until July 15, 2025, and scheme-specific performance metrics. The PM Vishwakarma scheme is affected in Tamil Nadu due to the non-constitution of State Monitoring and District Implementation Committees.
Key Points / Main Content:
Ongoing Schemes and Programmes:
* Central Government supplements State efforts in Tamil Nadu through various schemes.
* Schemes include: Prime Minister's Employment Generation Programme (PMEGP), Credit Guarantee Scheme for Micro and Small Enterprises, PM Vishwakarma scheme, Entrepreneurship Skill Development Programme scheme, Micro and Small Enterprises Cluster Development Programme, Raising and Accelerating MSME Performance, and MSME Champions Scheme.
* These are Central Sector Schemes; funds are not allocated state-wise.
Udyam Portal Registration:
* 6,58,33,368 MSMEs are registered on the Udyam Portal, including Informal Micro Enterprises, employing 28,51,41,204 individuals (as of 15.07.2025).
* 53,11,976 MSMEs are registered in Tamil Nadu, employing 2,76,97,460 individuals.
Prime Minister's Employment Generation Programme (PMEGP):
* A credit-linked subsidy program promotes self-employment by establishing micro-enterprises.
* Margin Money subsidy ranges from 15% to 35% of project cost (up to Rs. 50 Lakh for manufacturing, Rs. 20 Lakh for service sector).
* General category beneficiaries receive 25% (rural) and 15% (urban) subsidy.
* Special categories (including women) receive 35% (rural) and 25% (urban) subsidy.
* Details of PMEGP in Tamil Nadu:
* 2022-23: 6,140 units assisted, Rs. 178.92 Crore disbursed, 49,120 jobs.
* 2023-24: 6,814 units assisted, Rs. 198.72 Crore disbursed, 54,512 jobs.
* 2024-25: 3,949 units assisted, Rs. 121.15 Crore disbursed, 31,592 jobs.
* 2025-26 (up to 15.07.2025): 2,280 units assisted, Rs. 56.77 Crore disbursed, 27,547 jobs.
Credit Guarantee Scheme for Micro and Small Enterprises:
* CGTMSE provides credit guarantees for loans to MSEs without collateral.
* Credit Guarantees Approved in Tamil Nadu:
* 2022-23: 61,883 guarantees, Rs. 7,114 Crore approved.
* 2023-24: 1,13,815 guarantees, Rs. 15,061 Crore approved.
* 2024-25: 1,79,817 guarantees, Rs. 21,447 Crore approved.
* 2025-26 (till 30.06.2025): 28,147 guarantees, Rs. 6,592 Crore approved.
Entrepreneurship and Skill Development Programme (ESDP):
* Conducted various programmes, including EAP, ESDP, MDP, Advance ESDP, and Advance MDP.
* Number of Programmes and Beneficiaries in Tamil Nadu:
* 2021-22: 31 programmes, 3002 beneficiaries.
* 2022-23: 235 programmes, 9433 beneficiaries.
* 2023-24: 319 programmes, 16445 beneficiaries.
* 2024-25: 363 programmes, 17929 beneficiaries.
PM Vishwakarma (PMV) Scheme:
* Launched on 17.09.2023 to support artisans and craftspeople in 18 traditional trades.
* Tamil Nadu has not formed the State Monitoring Committee (SMC) and District Implementation Committee (DIC), affecting beneficiary registration.
* Over 8.53 Lakh applications received through Common Service Centres (CSCs) in Tamil Nadu as of 18.07.2025.
Technology Centres / Tool Rooms:
* Supports MSMEs with advanced technologies, training, and consultancy.
* Central Footwear Training Institute (CFTI) in Chennai supports the footwear industry.
Micro and Small Enterprises Cluster Development Programme (MSECDP):
* Aims to enhance the productivity and competitiveness of MSEs.
* Financial assistance is extended for the establishment of Common Facility Centers (CFCs) and creation and upgradation of industrial estates.
* Government of India Grant is up to 80% (upper limit Rs. 30 crore) for CFCs and up to 70% (upper limit Rs. 15 crore) for ID projects.
* Rs 62.57 cr has been released for projects under MSE CDP in state of Tamilnadu during 2022-23 to 2024-25.
Impact Analysis:
State Government of Tamil Nadu:
* Impact: Responsible for the formation of the State Monitoring Committee (SMC) and District Implementation Committee (DIC) for the PM Vishwakarma scheme, which has not yet been done.
* Action Required: Expedite the formation of the SMC and DIC to enable the effective implementation of the PM Vishwakarma scheme in Tamil Nadu and allow for beneficiary registration.
Micro, Small, and Medium Enterprises (MSMEs) in Tamil Nadu:
* Impact: Benefit from various central government schemes to support growth, competitiveness, technological upgrades, and innovation. The inability to register for PMV impacts eligibility for that specific scheme.
* Action Required: Utilize available schemes such as PMEGP, Credit Guarantee Scheme, and ESDP to enhance business operations. Await the formation of SMC and DIC to be able to register for PM Vishwakarma.
Artisans and Craftspeople in Tamil Nadu:
* Impact: Face challenges in accessing the benefits of the PM Vishwakarma scheme due to the lack of implementation committees.
* Action Required: Await the establishment of the SMC and DIC by the Tamil Nadu government to register and avail of the benefits under the PM Vishwakarma scheme.
Key Entities Referenced
Ministry of Micro, Small and Medium Enterprises: The Indian government ministry responsible for formulating policies and programmes for the promotion and development of Micro, Small and Medium Enterprises (MSMEs).
Tamil Nadu: A state in southern India where the MSME schemes and programmes are being implemented.
Prime Minister's Employment Generation Programme (PMEGP): A credit-linked subsidy programme aimed at generating self-employment opportunities through the establishment of micro-enterprises in the non-farm sector.
Credit Guarantee Scheme for Micro and Small Enterprises: A scheme providing credit guarantee for loans extended to Micro and Small Enterprises (MSEs) by Member Lending Institutions.
PM Vishwakarma scheme: A Central Sector Scheme to provide end-to-end support to artisans and craftspeople of 18 traditional trades.
Small Industries Development Bank of India (SIDBI): A financial institution involved in the Credit Guarantee Scheme for Micro and Small Enterprises.
Entrepreneurship and Skill Development Programme (ESDP): A programme conducting various initiatives like Entrepreneurship Awareness Programme (EAP) and Management Development Programme (MDP) to promote entrepreneurship.
Micro and Small Enterprises Cluster Development Programme (MSECDP): A programme to enhance the productivity and competitiveness of Micro and Small Enterprises (MSEs) through financial assistance for Common Facility Centers (CFCs) and industrial estates.
GOVERNMENT OF INDIA
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
LOK SABHA
UNSTARRED QUESTION NO. 744
TO BE ANSWERED ON 24.07.2025
SCHEMES AND PROGRAMMES TO SUPPORT MSMEs
744. SHRI C N ANNADURAI:
SHRI NAVASKANI K:
SHRI SELVAM G:
Will the minister of SMALL AND MEDIUM ENTERPRISES be pleased to state:
(a) the details of ongoing schemes and programmes being implemented by the Government
specifically to support Micro, Small and Medium Enterprises (MSMEs) in the State of Tamil Nadu;
(b) the objectives, scope and targeted beneficiaries of these schemes;
(c) the key initiatives currently underway aimed at promoting the growth and competitiveness of
MSMEs and facilitating technological upgradation and innovation;
(d) the total amount of funds disbursed to MSMEs in the State of Tamil Nadu during the last three
years and the current year under subsidised loan schemes; and
(e) whether any new proposals or schemes are under consideration to further support the MSME
sector in the State of Tamil Nadu especially in areas such as cluster development and if so, the details
thereof and the timelines for the rollout of such proposals?
ANSWER
MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SUSHRI SHOBHA KARANDLAJE)
(a) to (d): The Central Government supplements the efforts of the States/UTs through various
schemes, programmes and policy initiatives for promoting the growth and competitiveness of MSMEs
and facilitating technological upgradation and innovation of MSMEs in the country including Tamil
Nadu. These schemes/ programmes include Prime Minister's Employment Generation Programme,
Credit Guarantee Scheme for Micro and Small Enterprises, PM Vishwakarma scheme,
Entrepreneurship & Skill Development Programme scheme, Micro and Small Enterprises - Cluster
Development Programme, Raising and Accelerating MSME Performance, MSME Champions
Scheme, etc. The Schemes implemented by Ministry of MSME are Central Sector Schemes and funds
are not allocated state-wise.
6,58,33,368 MSMEs are registered on Udyam Portal, including Informal Micro Enterprises,
with an employment of 28,51,41,204 persons till 15.07.2025. Out of this, 53,11,976 MSMEs are
registered in Tamil Nadu employing 2,76,97,460 persons.: 2 :
The details of some of the major schemes is as under:
(i) Prime Minister’s Employment Generation Programme (PMEGP) is a credit –linked subsidy
programme aimed at generating self-employment opportunities through establishment of micro-
enterprises in the non-farm sector by helping traditional artisans and rural/urban unemployed youths.
Margin Money subsidy ranging from 15% to 35% of project cost, for Projects upto Rs. 50 Lakh in
manufacturing sector and Rs. 20 lakhs in the service sector, is provided. Under the scheme, Margin
Money subsidy for general category beneficiaries is 25% in rural areas 15% in urban areas. For
beneficiaries belonging to special categories, including women, Margin money subsidy is 35% in rural
areas and 25% in urban areas.
Details of number of units assisted and funds utilized (Margin Money (MM) subsidy disbursed), under
PMEGP in Tamil Nadu during the last 3 financial years and the current year i.e from FY2022-23 to
FY2025-26 (up to 15.07.2025): is given as under:
MM Subsidy Disbursed Estimated Employment
Financial Year No. of Units Assisted
(in Crore) Generated
2022-23 6,140 178.92 49,120
2023-24 6,814 198.72 54,512
2024-25 3,949 121.15 31,592
2025-26 (up to
15.07.2025) 2,280 56.77 27,547
(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 Credit
Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE) in the year 2000, to provide credit
guarantee for the loans extended by Member Lending Institutions to Micro and Small Enterprises
(MSEs) without collateral security and third-party guarantee. CGTMSE implements the Credit
Guarantee Scheme (CGS) for MSEs.
The details of the credit guarantees extended in the last 3 years under CGS in Tamil Nadu, is as given
below:
CGS - Guarantees Approved- Tamil Nadu
Financial Year No. of Guarantees Amount approved (in ₹ Crore)
approved
2022-23 61,883 7,114
2023-24 1,13,815 15,061
2024-25 1,79,817 21,447
2025-26 (till 30.06.2025) 28,147 6,592: 3 :
(iii) Under the Entrepreneurship and Skill Development Programme (ESDP), several programmes
have been conducted on Entrepreneurship Awareness Programme (EAP), Entrepreneurship cum Skill
Development Programme (E-SDP), Management Development Programme (MDP), Advance E-SDP
and Advance MDP. The number of programmes and beneficiaries in Tamil Nadu are as follows:
S. No. Financial Year No. of Programmes No. of Beneficiaries
Conducted
1. 2021-22 31 3002
2. 2022-23 235 9433
3. 2023-24 319 16445
4. 2024-25 363 17929
Total 948 46809
(iv) The PM Vishwakarma (PMV), a Central Sector Scheme, launched on 17.09.2023 to provide
end-to-end support to artisans and craftspeople of 18 traditional trades who work with their hands and
tools, across the country. As per the Scheme guidelines, the State Monitoring Committee (SMC) and
District Implementation Committee (DIC) are to be formed by the respective State/UT’s for
implementation of the Scheme. Government of Tamil Nadu has not constituted the State Monitoring
Committee (SMC) and District Implementation Committee (DIC), due to which the registration of
beneficiaries is affected in Tamil Nadu. However, as on 18.07.2025 more than 8.53 Lakh applications
have been received through Common Service Centres (CSCs) in Tamil Nadu.
(v) The network of Technology Centres / Tool Rooms in the country supports MSMEs in
providing access to advance manufacturing technologies, training & skilling and business consultancy
services to make them competitive. Under Tool Rooms & Technical Institutions (TRs & TIs) scheme,
Central Footwear Training Institute (CFTI), Chennai, Tamil Nadu, is set-up with objective to support
the footwear industry by providing footwear technology services, designing & developing moulds and
dies for the footwear Industry, and offering consultancy services. CFTI also provides skilling to youth
to create industry-ready manpower and undertakes re-skilling of the existing industry workforce as per
need of Industry.
(e): Under Micro and Small Enterprises Cluster Development Programme (MSE-CDP), with the
objective to enhance the productivity and competitiveness of Micro and Small Enterprises
(MSEs),financial assistance is extended for establishment of Common Facility Centers (CFCs) and
creation and up-gradation of industrial estates. Establishment of Flatted Factory Complexes is also
supported under the scheme. For CFCs, Government of India Grant is up to 80%, upper limit of
Project cost is Rs. 30 crore whereas, for ID projects Government of India Grant is up to 70%, upper
limit of Project is Rs. 15 crore. An amount of Rs 62.57 cr has been released for projects under MSE-
CDP in state of Tamilnadu during 2022-23 to 2024-25.
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