Bhubaneswar: Union Minister for Micro, Small and Medium Enterprises (MSME) Jitan Ram Manjhi has released ₹1,000 crore in Margin Money (MM) subsidy under the Prime Minister’s Employment Generation Programme (PMEGP), aimed at supporting the establishment of 11,333 new micro enterprises across the country.
The subsidy was released at a special programme organised by the Ministry of MSME at Kartavya Bhawan-3 in New Delhi. Minister of State for MSME Shobha Karandlaje, MSME Secretary Bharat Khera and other senior officials were present at the event.
The financial assistance will facilitate bank credit of approximately ₹3,260 crore for the beneficiary entrepreneurs and is expected to generate more than 1.02 lakh sustainable employment opportunities, particularly in rural areas.
PMEGP’s Impact Since 2014-15
PMEGP is a flagship credit-linked subsidy scheme of the Central Government designed to promote self-employment by supporting the establishment of new micro enterprises in the non-farm sector.
Since the financial year 2014-15, the scheme has facilitated the establishment of more than 8.38 lakh micro enterprises through bank-sanctioned loans exceeding ₹70,000 crore. The government has provided more than ₹25,193 crore in margin money subsidies, generating approximately 75 lakh employment opportunities across the country.
The scheme has also contributed to inclusive entrepreneurship. According to the Ministry, nearly 80 per cent of the assisted enterprises have been established in rural areas. Around 50 per cent of beneficiaries belong to SC, ST and OBC communities, while approximately 40 per cent of the enterprises are owned by women.
Focus on Women and Marginalised Communities
The latest ₹1,000 crore subsidy tranche is intended to strengthen women-led entrepreneurship, promote opportunities for Scheduled Castes and Scheduled Tribes, and encourage balanced regional development.
Special attention is being given to the North Eastern Region and Aspirational Districts to expand entrepreneurial opportunities in underserved areas.
Under PMEGP, eligible entrepreneurs receive margin money subsidies against bank-sanctioned project loans to establish new micro enterprises. The Khadi and Village Industries Commission (KVIC) is the national nodal implementing agency, working alongside Khadi and Village Industries Boards, District Industries Centres and the Coir Board.
The programme also provides support through awareness campaigns, training, capacity building, market linkages and post-establishment assistance.
Strong Performance in FY 2026-27
During FY 2026-27, PMEGP had already supported 25,895 micro enterprises with margin money subsidies amounting to ₹794.52 crore up to October 2026, according to the Ministry.
With the additional ₹1,000 crore release, the government expects to further expand the scheme’s reach and accelerate employment generation.
Speaking on the occasion, Jitan Ram Manjhi highlighted the importance of micro enterprises in driving economic growth, encouraging innovation and creating livelihoods at the grassroots level.
He reiterated the government’s commitment to supporting aspiring entrepreneurs, particularly women, rural communities, SC, ST and OBC beneficiaries, and economically weaker sections.
The initiative is part of the Centre’s broader efforts to strengthen India’s MSME ecosystem, promote local manufacturing and services, and advance the vision of a self-reliant and inclusive economy under Viksit Bharat.
-OdishaAge
