PMEGP may get 5-year extension till 2030-31 with Rs 15,000 crore outlay
The government is examining a five-year extension of the Prime Minister's Employment Generation Programme (PMEGP) until 2030-31 with an estimated outlay of ₹15,000 crore. The scheme will undergo modifications including reduced documentation requirements and removal of collateral mandates for vulnerable, rural and first-time entrepreneurs, according to people familiar with the developments. An official stated that the government is "evaluating certain parameters to optimise the use of funds to enable support to a larger number of beneficiaries," with a final decision pending consultation with the finance ministry.
Since its launch in 2008-09, PMEGP has sanctioned loans worth ₹91,000 crore. During the current five-year period from 2021-22 to 2025-26, the scheme generated an estimated 3.63 million jobs and helped establish more than 400,000 micro-enterprises. Margin money subsidy amounting to ₹13,453 crore was disbursed to more than 400,000 units during this period. According to the MSME ministry, 80% of enterprises established under the scheme were located in rural areas, while women accounted for 40% of supported micro-enterprises and received around 45% of total margin money subsidy disbursed.
Other proposed modifications may include pre-sanction physical verification reports and geo-tagging. Anil Bhardwaj, secretary general of the Federation of Indian Micro and Small & Medium Enterprises, suggested integrating modern technology and digital platforms to enhance transparency and accessibility, and including third-party intermediaries to facilitate onboarding of self-help groups.
