The central government has released a margin money subsidy of Rs 1,000 crore under the Prime Minister’s Employment Generation Programme (PMEGP). This funding will support 11,333 beneficiaries across the country in establishing new micro-enterprises.
Banks have sanctioned loans worth approximately Rs 3,260 crore for these enterprises. The initiative is expected to generate over 1.02 lakh employment opportunities.
Union Minister for Micro, Small and Medium Enterprises (MSME) Jitan Ram Manjhi announced the release of a ₹1,000 crore subsidy at an event held on October 28 at Kartavya Bhawan-3 in New Delhi. Minister of State for MSME Shobha Karandlaje and the Ministry Secretary Bharat Khera were also present on the occasion.
Since the 2014-15 financial year, the Prime Minister’s Employment Generation Programme (PMEGP) has facilitated the establishment of over 8.38 lakh micro-enterprises through bank loans amounting to more than ₹70,000 crore, supported by margin money subsidies exceeding ₹25,193 crore. The programme has generated approximately 75 lakh employment opportunities across the country.
Prior to the latest release, PMEGP had supported 25,895 micro-enterprises during the 2026-27 financial year, providing subsidy assistance worth ₹794.52 crore as of October 2026.
The scheme has also contributed to inclusive entrepreneurship, with nearly 80% of assisted units located in rural areas. Around 40% of the enterprises are owned by women, while nearly half of the beneficiaries belong to Scheduled Castes, Scheduled Tribes and Other Backward Classes.
The PMEGP scheme offers subsidised financial assistance to aspiring entrepreneurs seeking to set up new micro-businesses in non-farm industries. The programme is overseen by the Ministry of MSME and implemented nationwide by the Khadi and Village Industries Commission (KVIC). This support prioritizes women entrepreneurs, marginalized communities, the North-Eastern region, and Aspirational Districts.
(PIB)
