PMEGP Supports Over 8 Lakh Entrepreneurs With Rs 24,398 Crore in Subsidies Since 2014

The Prime Minister's Employment Generation Programme (PMEGP) has provided margin money subsidies worth Rs 24,398.61 crore to nearly 8.12 lakh micro entrepreneurs since the financial year 2014-15, helping generate employment for an estimated 73.08 lakh people, according to the government.

The flagship programme of the Ministry of Micro, Small and Medium Enterprises (MSME) is implemented by the Khadi and Village Industries Commission (KVIC). It focuses on promoting self-employment by supporting the creation of new micro enterprises, particularly in rural and semi-urban areas and across the non-farm sector.

Under PMEGP, aspiring entrepreneurs can receive margin money subsidies against bank-sanctioned loans. The financial support is intended to make access to credit easier and encourage individuals to establish sustainable businesses.

The government said the scheme has helped first-time entrepreneurs move from seeking employment to creating jobs, while enabling people with business ideas to establish enterprises with institutional financial support.

Several beneficiary enterprises have grown substantially after receiving assistance under the programme.

One example is Skinkaanti Ayurveda, a handmade soap manufacturing business established by Pooja Sharma in Parwanoo, Himachal Pradesh. The enterprise began with a project cost of Rs 25 lakh and received financial support through the State Bank of India.

The business has since expanded into what the ministry describes as India's largest handmade soap manufacturing unit, recording an annual turnover of around Rs 30 crore and employing 300 people. Women account for approximately 95 per cent of its workforce.

The company combines Ayurvedic formulations with modern manufacturing methods and has introduced processes aimed at improving production efficiency and reducing costs. Its products are sold across India through retail and institutional distribution channels.

Another beneficiary highlighted by the ministry is Ess Pee Quality Products, a food-processing enterprise established by Surender Pal Singh Nagi in Mohali, Punjab.

The business started with a project cost of Rs 21 lakh, financed through Bank of Baroda. It has since grown into an enterprise with an annual turnover of around Rs 38 crore and employs approximately 130 people.

The company manufactures products including honey, cookies and fruit jams and has expanded its international market to 26 countries, including the United States, Australia and France.

The government said such businesses demonstrate how credit support and subsidy assistance under PMEGP can help first-generation entrepreneurs establish enterprises, expand operations and create employment.