Parliament Question: Under-utilization of Funds under PMMSY

GOVERNMENT OF INDIA MINISTRY OF FISHERIES, ANIMAL HUSBANDRY AND DAIRYING DEPARTMENT OF FISHERIES LOK SABHA UNSTARRED QUESTION NO. 5214 TO BE ANSWERED ON 24th March, 2026 Under-utilization of Funds under PMMSY 5214. Mr Pathan Yusuf: Will the Minister of FISHERIES, ANIMAL HUSBANDRY AND DAIRYING be pleased to state: (a) the details and reasons for the approximately 40% under-utilisation of allocation of funds under the Pradhan Mantri Matsya Sampada Yojana (PMMSY) between Budget Estimates 2025-26 and Revised Estimates 2025-26; (b) the number of start-ups supported under the PMMSY since the inception of the scheme,year and State-wise; (c) the details of amount of funds allocated by the Government to these start-ups, year-wiseand State-wise details; and (d) whether any of the start-ups funded under the PMMSY have shut down and if so, thedetails thereof including the year-wise and State-wise details, since the inception of the scheme? ANSWER THE MINISTER OF FISHERIES, ANIMAL HUSBANDRY AND DAIRYING (SHRI RAJIV RANJAN SINGH ALIAS LALAN SINGH) (a) : The Department of Fisheries, Government of India has been allocated budgetary support of Rs. 2465.00 crore in BE for the year 2025-26, which has been reduced to Rs. 1500.00 crore at RE stage under the Pradhan Mantri Matsya Sampada Yojana(PMSSY).The PMSSY is a Centrally Sponsored Scheme, where funds are provided by the Government of India on a matching share basis. The actual implementation of the scheme is the responsibility of the State Governments and their implementing agencies. Details of the main reasons attributed for under-utilisation of funds are as follows: (i) Delay in compliance of new guidelines on fund flow mechanism and readiness by the States: The Department of Fisheries (DoF), Government of India, approves the Annual Action Plans of States and issues the Mother Sanction for release of funds as per Ministry of Finance guidelines. However, States can use the funds only as per their readiness and preparedness at the ground level. (ii) Delay in On-boarding on SNA–SPARSH: Some States Governments took time to shift to the SNA–SPARSH system, including opening of accounts and completing required formalities. This delayed the release and use of funds.(iii) Unspent funds from Previous Years: States are required to first utilise unspent central funds of earlier years before receiving fresh Central funds. Availability of such unspent balances has restricted new releases and resulted in lower utilisation. (iv) Slow pace of expenditure by States/UTs: Spending at the State/UT level has been slow due to delays in selection of beneficiary, tendering, land issues, and execution of projects, especially infrastructure-related works. (v) Delay in Providing State Matching Share: Since PMSSY works on a matching share basis, timely release of the State share is essential. In some cases, States could not release their share on time due to financial constraints, which affected the utilisation of Central funds. (vi) Lack of viable Project Proposals: Some States did not submit enough financially and technically sound projects as per PMSSY guidelines. Weak project planning and limited technical capacity affected approvals and fund utilisation. (vii) Regular Monitoring by DoF, GoI: The Department of Fisheries, GoI, regularly reviews the physical and financial progress of the scheme through weekly Senior official Meeting (SoMs) and periodic regional review meetings (RRMs) with States/UTs. Despite close monitoring, actual utilisation depends on the pace of implementation of approved projects/activities by States. (b) to (d) : The Department of Fisheries, Government of India, supports fisheries startups under the Pradhan Mantri Matsya Sampada Yojana(PMMSY) to promote innovation, sustainability, and efficiency through seed funding and incubation support. The Department of Fisheries, Government of India in collaboration with Startup India under Invest India, Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce & Industry had on 13th January 2022 organized a Fisheries Startup Grand Challenge and awarded 12 fisheries startups with cash grants of Rs. 2.00 lakh each, along with incubation support and seed funding of Rs. 20.00 lakh (General category) and Rs. 30.00 lakh (SC/ST/Women) for 10 startups to develop viable pilots for commercialization. Further, to promote innovation, boost private investments, enhance productivity, and strengthen market linkages, the Department of Fisheries, Government of India has also approved 39 project proposals with subsidy assistance of Rs. 31.22 crore under the Entrepreneur Model of PMMSY. *****