Ministry of MSME Releases ₹1000 Crore PMEGP Margin Money Subsidy
The Ministry of Micro, Small and Medium Enterprises (MSME) achieved a significant milestone in promoting self-employment and grassroots entrepreneurship with the release of ₹1,000 crore in Margin Money subsidy under the Prime Minister's Employment Generation Programme (PMEGP). Union Minister for MSME Shri Jitan Ram Manjhi released the subsidy during a special function at Kartavya Bhawan-3, New Delhi on October 28, 2026, attended by Minister of State Sushri Shobha Karandlaje, Secretary Shri Bharat Khera, and senior officials from the Ministry, Khadi and Village Industries Commission (KVIC), National Small Industries Corporation (NSIC), and the Office of the Development Commissioner (MSME).
PMEGP Scheme Details and Implementation
PMEGP is a flagship credit-linked subsidy programme aimed at creating sustainable self-employment opportunities through establishment of new micro-enterprises in the non-farm sector. The scheme is administered by the Ministry of MSME and implemented nationally by KVIC with support from other designated implementing agencies including KVIBs, District Industries Centres and Coir Board. The programme provides financial assistance in the form of margin money subsidy on bank-sanctioned project loans for setting up new micro-enterprises, along with awareness generation, handholding, capacity building, market linkages, monitoring and post-establishment support through KVIC field offices and Implementing Agencies.
Current Subsidy Impact and Employment Generation
The release of ₹1,000 crore margin money subsidy will facilitate support to 11,333 beneficiaries who have received bank-sanctioned project loans amounting to approximately ₹3,260 crore for establishing new micro-enterprises across various sectors. These enterprises are expected to generate more than 1.02 lakh sustainable employment opportunities, primarily in rural areas across the country. The assistance is strategically targeted to advance women-led entrepreneurship, socially inclusive development among SC and ST communities, and balanced regional development with special focus on the North Eastern Region and Aspirational Districts.
Historical Performance and Inclusive Achievements
Since FY 2014-15, PMEGP has facilitated the establishment of more than 8.38 lakh micro enterprises through bank-sanctioned loans exceeding ₹70,000 crore and margin money subsidy of over ₹25,193 crore, resulting in the generation of approximately 75 lakh sustainable employment opportunities across the country. The programme demonstrates strong commitment to inclusive and equitable development with nearly 80% of assisted units established in rural areas, approximately 50% of beneficiaries belonging to SC, ST and OBC categories, and around 40% of enterprises owned by women entrepreneurs.
Current Fiscal Year Performance
Prior to this release, during FY 2026-27, PMEGP had already supported 25,895 micro enterprises with margin money subsidy amounting to ₹794.52 crore as of October 2026. With the additional ₹1,000 crore subsidy tranche, the scheme is expected to further accelerate entrepreneurship development and employment generation across the country. The Union Minister emphasized the critical role of micro enterprises in driving economic growth, fostering innovation, and generating livelihoods at the grassroots level, reiterating the Government's commitment to supporting aspiring entrepreneurs from rural areas, women, Scheduled Castes, Scheduled Tribes, Other Backward Classes, and economically weaker sections.