**Executive Summary**
This document is the answer to Lok Sabha Unstarred Question No. 761, to be answered on 04.12.2025, regarding subsidies to Micro, Small, and Medium Enterprise (MSME) units in Tamil Nadu. It details the schemes under which subsidies are provided, the amounts disbursed, and the status of pending applications. The answer is provided by the Minister of State for Micro, Small and Medium Enterprises.
**Key Points / Main Content**
* **Schemes for MSME Subsidies:**
* The Ministry of MSME implements Central Sector Schemes that provide subsidies to MSMEs, including those in Tamil Nadu.
* Key schemes include:
* Prime Minister's Employment Generation Programme (PMEGP).
* National Scheduled Caste Scheduled Tribe Hub (NSSH).
* **Prime Minister's Employment Generation Programme (PMEGP):**
* Aims to assist prospective entrepreneurs in setting up new micro-enterprises in the non-farm sector.
* Generates employment opportunities primarily in rural areas.
* Offers Margin Money (MM) subsidy ranging from 15% to 35% based on geographical and demographic criteria.
* **Special Credit Linked Capital Subsidy Scheme (SCLCSS) under NSSH:**
* Provides eligible SC/ST-owned Micro and Small Enterprises (MSEs) with a 25% capital subsidy.
* Subsidy is for procurement of plant, machinery, or equipment through institutional finance.
* Subject to a maximum limit of Rs. 25 lakh.
* **Subsidy Disbursal Details:**
* Annexure I contains the amount of subsidy disbursed under PMEGP and NSSH for the last five years in the State of Tamil Nadu.
* Under PMEGP, for the last five financial years, the Margin Money Subsidy disbursed was Rs. 800.12 Crore.
* Under the SCLCSS component of NSSH, for the last five financial years, the Subsidy disbursed was Rs. 465.43 Lakh.
* **Pending Applications:**
* 10,587 applications sanctioned by Banks under PMEGP are currently under process for validation and approval by the nodal implementing agency.
**Impact Analysis**
**Stakeholder: MSME Units in Tamil Nadu**
* **Impact:** Benefit from subsidies under PMEGP and NSSH (SCLCSS), enabling them to establish, expand, and upgrade their operations, particularly benefiting SC/ST-owned enterprises. The pending applications show the potential for additional financial assistance.
* **Action Required:** Monitor the status of their pending PMEGP applications. SC/ST-owned MSEs should familiarize themselves with the requirements of the SCLCSS component of NSSH to avail of capital subsidies for plant, machinery, or equipment procurement.
**Stakeholder: Prospective Entrepreneurs in Tamil Nadu**
* **Impact:** Opportunity to set up new micro-enterprises in the non-farm sector with financial assistance through the PMEGP.
* **Action Required:** Understand the eligibility criteria and application process for PMEGP to avail of Margin Money subsidies ranging from 15% to 35%.
**Stakeholder: Nodal Implementing Agency**
* **Impact:** Responsible for validating and approving the sanctioned PMEGP applications.
* **Action Required:** Expedite the validation and approval process for the 10,587 pending PMEGP applications.
Key Entities Referenced
Ministry of Micro, Small and Medium Enterprises: The ministry responsible for implementing schemes and policies related to MSMEs, which is the primary subject of the query.
Tamil Nadu: The specific state to which the subsidy information pertains.
Prime Minister's Employment Generation Programme (PMEGP): A Central Sector Scheme under which subsidies are provided to micro enterprises.
National Scheduled Caste Scheduled Tribe Hub (NSSH): A Central Sector Scheme under which subsidies are provided to MSEs owned by SC/STs.
GOVERNMENT OF INDIA
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
LOK SABHA
UNSTARRED QUESTION No. 761
TO BE ANSWERED ON 04.12.2025
SUBSIDY TO MSME UNITS IN TAMIL NADU
761. SHRI NAVASKANI K:
Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:
(a) the total amount of subsidy provided so far by the Union Government to the Micro, Small
and Medium Enterprise (MSME) units operating in the State of Tamil Nadu, year-wise details
thereof;
(b) the details of the various schemes under which subsidies have been provided to MSME units
in the State; and
(c) the number of subsidy applications from MSME units in Tamil Nadu presently pending for
approval along with the reasons for such pendency?
ANSWER
MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SUSHRI SHOBHA KARANDLAJE)
(a) & (b): The Ministry of MSME, is implementing Central Sector Schemes such as the Prime
Minister’s Employment Generation Programme (PMEGP) and the National Scheduled Caste
Scheduled Tribe Hub (NSSH) scheme under which subsidies are provided to Micro, Small and
Medium Enterprises (MSMEs) across the country including in the State of Tamil Nadu.
PMEGP is a scheme for assisting prospective entrepreneurs in setting up new micro
enterprises in the non-farm sector and generating employment opportunities primarily in rural areas
.Under PMEGP, beneficiaries can avail of Margin Money (MM) subsidy ranging from 15% to 35%
based on various geographical and demographical criteria.
Under the Special Credit Linked Capital Subsidy Scheme (SCLCSS) component of NSSH,
eligible SC/ST-owned Micro and Small enterprises (MSEs) are provided with a 25% capital subsidy
for the procurement of plant and machinery or equipment through institutional finance, subject to a
maximum limit of Rs. 25 lakh. The amount of subsidy disbursed under PMEGP and under NSSH
for the last five years in the State of Tamil Nadu is given at Annexure I.
(c): Presently, under PMEGP, 10,587 sanctioned applications by Banks are under process for
validation and approval by the nodal implementing agency
*****ANNEXURE-I
ANNEXURE-I REFERRED TO IN REPLY TO PART (a) and (b) OF THE LOK SABHA
UNSTARRED QUESTION NO. 761 FOR ANSWER ON 04.12.2025.
I. Margin Money Subsidy disbursed under PMEGP for last five years
Margin Money Subsidy disbursed (Rs. In
Financial Year
Crore)
2020 - 21 137.70
2021 - 22 163.60
2022 - 23 178.93
2023 - 24 198.73
2024 - 25 121.16
Total 800.12
II. Subsidy disbursed under SCLCSS component of NSSH for last five years
Financial Year Subsidy Amount (Rs in Lakh)
2020 - 21 39.44
2021 - 22 16.25
2022 - 23 368.24
2023 - 24 33.75
2024 - 25 7.75
Grand Total 465.43