PMEGP may get 5-year extension till 2030-31 with Rs 15,000 crore outlay; govt weighs easier norms
The government is considering extending the Prime Minister's Employment Generation Programme until 2030-31 with an estimated Rs 15,000 crore outlay, while easing access for vulnerable, rural and first-time entrepreneurs. Proposed changes include less documentation and no collateral requirements, as the scheme has sanctioned Rs 91,000 crore in loans so far.
New Delhi: Officials are considering extending the Prime Minister's Employment Generation Programme (PMEGP) until 2030-31, allotting roughly ₹15,000 crore for its execution. The government is scrutinizing potential alterations to the scheme, such as simplifying documentation requirements and waiving collateral for disadvantaged, rural, and first-time entrepreneurs. To date, the initiative has sanctioned loans amounting to ₹91,000 crore, launched in 2008-09 and recently extended for another five years.
The PMEGP has been instrumental in generating an estimated 3.63 million jobs and establishing over 400,000 micro-enterprises from 2021-22 to 2025-26. Anil Bhardwaj, Secretary General of the Federation of Indian Micro and Small & Medium Enterprises, commended the scheme's success, stating it has yielded significant results on the ground. He suggested potential enhancements, including a pre-sanction physical verification report and geo-tagging.
80% of enterprises initiated under PMEGP are situated in rural areas, with women comprising 40% of the supported micro-enterprises. Additionally, 45% of the margin money subsidy disbursed went to female entrepreneurs. To further streamline the scheme, experts propose integrating modern technology and digital platforms, as well as involving third-party intermediaries to facilitate enrollment of self-help groups and individuals unfamiliar with the program.
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