Srinagar, Jul 30: Jammu and Kashmir recorded the highest number of applications under the Prime Minister’s Employment Generation Programme (PMEGP) among all States and Union Territories during the last five financial years, with banks sanctioning more than 98,000 projects, according to data tabled in Parliament on Thursday.
Replying to a starred question raised by MP Shreyas M. Patel in the Lok Sabha, Union Minister for Micro, Small and Medium Enterprises (MSME) Jitan Ram Manjhi said the time taken for sanctioning loans and releasing margin money (MM) subsidy under PMEGP depends on several factors, including completion of the application process with supporting documents, appraisal of project viability by financing banks, credit decisions, deposit of the beneficiary’s own contribution, completion of the mandatory Entrepreneurship Development Programme (EDP) training, and submission of subsidy claims by banks.
According to the official data, banks in Jammu and Kashmir received 36,181 applications under PMEGP in 2021-22, 39,341 in 2022-23, 38,667 in 2023-24, 28,697 in 2024-25, and 10,411 in 2025-26. During the same period, 23,955, 26,777, 25,522, 17,365, and 5,363 applications, respectively, were sanctioned, taking the total number of approved projects to 98,982 over five years.
The data further revealed that margin money subsidy was released for 21,648 projects in 2021-22, 12,023 in 2022-23, 15,065 in 2023-24, 9,863 in 2024-25, and 7,837 in 2025-26.
Manjhi informed the House that, on average, implementing agencies take 58 days to process PMEGP applications, banks require 70 days to sanction loans, while the Khadi and Village Industries Commission (KVIC) takes 84 days to release the margin money subsidy.
“The Government closely monitors the implementation of the Prime Minister’s Employment Generation Programme (PMEGP), including the time taken for sanctioning loans and disbursing financial assistance in the form of margin money subsidy across the country,” the minister said.
He said the government has undertaken several corrective measures to streamline the approval process, improve coordination with financing banks, expedite disposal of applications and ensure timely release of subsidies.
These measures include regular monitoring of pending applications and subsidy claims through Quarterly Bankers’ Meetings at the State and Zonal levels, as well as State Level Monitoring Committee (SLMC) and District Level Monitoring Committee (DLMC) meetings.
To facilitate project preparation, over 1,000 model Detailed Project Reports (DPRs) covering different sectors have been uploaded on the PMEGP portal. The government has also waived educational qualification requirements for manufacturing projects costing up to Rs 10 lakh and service-sector projects up to Rs 5 lakh to reduce entry barriers for entrepreneurs.
In addition, EDP training has been exempted for projects costing up to Rs 2 lakh to accelerate approvals. PMEGP Helpdesks have also been established at the State level to guide applicants, while awareness programmes and financial literacy camps are being organised across all States and Union Territories, including aspirational districts, underperforming regions and the North-Eastern states.
The minister further said the PMEGP portal has been developed as an end-to-end digital platform and integrated with the Jan Samarth Portal, enabling seamless coordination with financing banks, SMS-based status updates for applicants, and facilitation of Udyam Registration, thereby improving transparency and efficiency in the scheme’s implementation.
