PMEGP: PM Modi’s pet scheme disbursed 83% applications in FY21 so far to set-up new enterprises

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September 28, 2020 5:40 PM

Credit and Finance for MSMEs: Out of 111, public and private banks, maximum applications were disbursed by State Bank of India followed by Jammu and Kashmir Bank, Punjab National Bank, Canara Bank and Bank of Baroda between April 1, 2020, and September 28, 2020.

msme, small business, micro enterprisePMEGP provides assistance up to Rs 25 lakh for projects to be set-up in the manufacturing sector and up to Rs 10 lakh for new enterprises in the service sector.

Credit and Finance for MSMEs: The Modi government’s flagship Prime Minister’s Employment Generation Programme (PMEGP) has disbursed 83 per cent of the applications for margin money claim so far in the current financial year to set-up new micro-enterprises across the country, as per the government data available. Out of 22,124 applications with banks involving Rs 660 crore, 18,455 have been disbursed involving Rs 551.65 crore, according to the real-time data updated on the nodal agency Khadi and Village Industries Commission (KVIC) portal for the scheme. Claims are currently under process for 279 projects involving Rs 10.15 crore.

The credit-linked subsidy programme PMEGP provides assistance up to Rs 25 lakh for projects to be set-up in the manufacturing sector and up to Rs 10 lakh for new enterprises in the service sector, according to the scheme’s details on the MSME Ministry portal. The scheme also supports self-help groups, institutions registered with Societies Registration Act,1860, production co-operative societies, and charitable trusts. However, existing enterprises supported by Pradhan Mantri Rozgar Yojana, Rural Employment Generation Programme or other central and state government schemes along with businesses that have already availed government subsidy under any other scheme of Government of India or state governments are not eligible to secure credit under the PMEGP.

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Out of 111, public and private banks, maximum applications were disbursed by State Bank of India (1,749 with Rs 40.41 crore), Jammu and Kashmir Bank (1,498 applications involving Rs 30.55 crore), Punjab National Bank (1,376 applications with Rs 37.97 crore), Canara Bank (1,291 applications involving Rs 42.22 crore), and Bank of Baroda (1,131 applications having Rs 45.79 crore amount disbursed) etc. between April 1, 2020, and September 28, 2020.

Meanwhile, the government has disbursed Rs 1,25,425 crore out of the Rs 3 lakh crore under the Emergency Credit Line Guarantee Scheme (ECLGS) as on September 21, 2020, to 25,74,181 MSME and individual accounts, as per the data tweeted by the Finance Minister Nirmala Sitharaman’s office. Out of overall disbursement, Rs 1,22,808 crore was credited into 25,24,788 MSME accounts while disbursement into remaining 49,393 individual was only Rs 2,617.08 crore.

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