MSME ministry seeks additional ₹5,000 crore for job generation scheme

The ministry of micro, small and medium enterprises is seeking an additional ₹5,000 crore for the Prime Minister's Employment Generation Programme due to a surge in subsidy claim applications. Budget constraints and an overwhelming number of applications have led to delays in subsidy disbursement. In FY24, Union Bank of India had the highest subsidy claim and release under the scheme. The government subsidizes a percentage of the loan amount for self-employment ventures, with applicants required to contribute towards the project cost. Despite the high demand, the budget allocation for PMEGP in the current year is lower than the revised estimates for the previous year.