Pariksha SaathiRs 1,000 crore margin money subsidy released under PMEGP to support 11,333 new micro enterprises
Union Minister for MSME Jitan Ram Manjhi released Rs 1,000 crore of Margin Money (MM) subsidy under the Prime Minister's Employment Generation Programme (PMEGP) at a special function organised by the Ministry at Kartavya Bhawan-3, New Delhi, according to a release of 28 October 2026; Minister of State for MSME Shobha Karandlaje attended. The subsidy will support 11,333 beneficiaries, who have received bank-sanctioned project loans of about Rs 3,260 crore for setting up new micro-enterprises, and the enterprises are expected to generate more than 1.02 lakh sustainable employment opportunities, primarily in rural areas. The assistance is targeted at women-led entrepreneurship, socially inclusive development, particularly among SC and ST communities, and balanced regional development, with a special focus on the North Eastern Region (NER) and Aspirational Districts. Before this tranche was released, PMEGP had already supported 25,895 micro enterprises in FY 2026-27 with MM subsidy of Rs 794.52 crore to October 2026. PMEGP is a credit-linked subsidy programme for creating self-employment through new micro-enterprises in the non-farm sector; it is administered by the Ministry of MSME and implemented nationally by the Khadi and Village Industries Commission (KVIC), with KVIBs, District Industries Centres and the Coir Board among the other implementing agencies. Since FY 2014-15 it has facilitated the establishment of more than 8.38 lakh micro enterprises through bank-sanctioned loans exceeding Rs 70,000 crore and MM subsidy of over Rs 25,193 crore, generating about 75 lakh sustainable employment opportunities; nearly 80% of the units are in rural areas, nearly 50% of the beneficiaries belong to SC, ST and OBC categories, and around 40% of the enterprises are owned by women entrepreneurs.
Drafted with AI assistance from the official PIB release linked above and checked against it by a second AI pass. Not line-edited by a human.
Learning context
On 30 May 2022, the Ministry of MSME announced that PMEGP had been approved for continuation over the 15th Finance Commission cycle for five years, from 2021-22 to 2025-26, with an outlay of Rs 13,554.42 crore, and was expected to create sustainable employment for about 40 lakh persons in those five financial years. The maximum project cost was raised from Rs 25 lakh to Rs 50 lakh for manufacturing units and from Rs 10 lakh to Rs 20 lakh for service units, and applicants from aspirational districts and transgender applicants were to be treated as special category applicants, entitled to higher subsidy. The margin money subsidy was set at 25% of the project cost in urban areas and 35% in rural areas for special category applicants (including SC, ST, OBC, women, transgender, physically disabled, NER, aspirational and border district applicants), and 15% in urban areas and 25% in rural areas for general category applicants. The release said that since PMEGP's inception in 2008-09, about 7.8 lakh micro enterprises had been assisted with a subsidy of Rs 19,995 crore, generating estimated sustainable employment for 64 lakh persons.
Check yourself: for which period and with what outlay was PMEGP approved for continuation in 2022, and what margin money subsidy did it set for special category applicants in rural areas?
From 2021-22 to 2025-26 (the 15th Finance Commission cycle), with an outlay of Rs 13,554.42 crore; 35% of the project cost.
Revision task: from this release, note the subsidy amount, the number of beneficiaries, the bank loans and jobs linked to this tranche, the FY 2026-27 support before it, the national implementing agency and the cumulative figures since FY 2014-15; from the note, the 2021-22 to 2025-26 outlay, the project-cost ceilings and the subsidy rates.
Test yourself
According to a Ministry of MSME release of 28 October 2026, Rs 1,000 crore of margin money subsidy has been released under PMEGP to support 11,333 beneficiaries. Which body implements PMEGP at the national level?
Show the answer
Answer: Khadi and Village Industries Commission (KVIC)
The release says PMEGP, a credit-linked subsidy programme administered by the Ministry of MSME, is implemented nationally by the Khadi and Village Industries Commission (KVIC), with support from other designated implementing agencies such as KVIBs, District Industries Centres and the Coir Board. The Rs 1,000 crore tranche will support 11,333 beneficiaries whose bank-sanctioned project loans total about Rs 3,260 crore.
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