Jammu and Kashmir has recorded the highest number of applications under the PMEGP, with banks sanctioning over 98,000 projects in the last five years.
Srinagar, India Jul 31, 2026 ALN: Jammu and Kashmir has emerged as a leader in applications under the Prime Minister's Employment Generation Programme (PMEGP), recording the highest number of sanctioned projects among all States and Union Territories over the last five financial years. According to data presented in Parliament, banks in the region have sanctioned more than 98,000 projects, reflecting a significant commitment to fostering entrepreneurship and generating employment opportunities in a region that has faced economic challenges.
The PMEGP, launched in 2008, aims to promote self-employment through the establishment of micro enterprises in both the manufacturing and service sectors. It provides financial assistance in the form of margin money subsidy to new entrepreneurs, which is crucial for those who may lack the necessary capital to start their own businesses. The scheme is particularly important in Jammu and Kashmir, where traditional employment opportunities have been limited due to various socio-economic factors.
In response 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 detailed the processes involved in sanctioning loans and releasing margin money subsidy under PMEGP. He explained that the timeline for these processes is influenced by a variety of factors, including the completion of the application process with all necessary supporting documents, the viability appraisal of projects by financing banks, credit decisions, the deposit of the beneficiary's own contribution, completion of the mandatory Entrepreneurship Development Programme (EDP) training, and the submission of subsidy claims by banks.
According to the official data shared by the minister, banks in Jammu and Kashmir received a total of 36,181 applications under PMEGP in the financial year 2021-22. This number increased to 39,341 in 2022-23, before witnessing a slight decline to 38,667 in 2023-24. The applications further decreased to 28,697 in 2024-25 and 10,411 in 2025-26. The total number of sanctioned applications during these years was also significant, with 23,955 projects approved in 2021-22, 26,777 in 2022-23, 25,522 in 2023-24, 17,365 in 2024-25, and 5,363 in 2025-26. Cumulatively, this resulted in a total of 98,982 approved projects over the five-year period.
Furthermore, the data indicated that margin money subsidies were released for a varying number of projects each year, with 21,648 projects receiving subsidies in 2021-22, followed by 12,023 in 2022-23, 15,065 in 2023-24, 9,863 in 2024-25, and 7,837 in 2025-26. These figures highlight a fluctuating but overall positive trend in the support provided to new entrepreneurs in the region.
The minister also provided insights into the average time taken by different entities involved in the PMEGP process. On average, implementing agencies take about 58 days to process applications, while banks require approximately 70 days to sanction loans. The Khadi and Village Industries Commission (KVIC), which plays a key role in releasing the margin money subsidy, takes about 84 days to complete this process. These timelines are crucial for entrepreneurs who are often eager to get their businesses off the ground.
In his address to the Lok Sabha, Manjhi emphasized the government's commitment to closely monitor the implementation of PMEGP, which includes tracking the time taken for loan sanctioning and the disbursement of financial assistance across the country. He acknowledged the challenges faced in the process and outlined several corrective measures that have been undertaken to streamline the approval process. These measures aim to improve coordination with financing banks, expedite the disposal of applications, and ensure timely release of subsidies.
To facilitate project preparation for aspiring entrepreneurs, the government has uploaded over 1,000 model Detailed Project Reports (DPRs) on the PMEGP portal, covering a wide range of sectors. This initiative is designed to provide guidance to potential applicants and reduce the complexity associated with project planning. Additionally, the government has waived educational qualification requirements for manufacturing projects costing up to Rs 10 lakh and service-sector projects up to Rs 5 lakh, thereby lowering entry barriers for many aspiring entrepreneurs.
Moreover, the EDP training has been exempted for projects costing up to Rs 2 lakh, which is expected to accelerate the approval process for small-scale entrepreneurs. To further assist applicants, PMEGP Helpdesks have been established at the State level, providing guidance and support throughout the application process. Awareness programmes and financial literacy camps are also being organized across all States and Union Territories, including aspirational districts, underperforming regions, and the North-Eastern states, to ensure that potential entrepreneurs are well-informed about the opportunities available to them.
The minister highlighted the technological advancements made to improve the PMEGP's efficiency. The PMEGP portal has been developed as an end-to-end digital platform and is integrated with the Jan Samarth Portal, which facilitates seamless coordination with financing banks. This integration allows for SMS-based status updates for applicants, ensuring they remain informed about their application progress. Additionally, the platform facilitates Udyam Registration, which is essential for micro and small enterprises in India, thereby improving transparency and efficiency in the scheme's implementation.
In conclusion, Jammu and Kashmir's achievement in leading PMEGP applications signifies a proactive approach towards enhancing entrepreneurship and employment generation in the region. The government's initiatives to streamline processes, reduce barriers to entry, and leverage technology are crucial steps in fostering a thriving ecosystem for small businesses. As the region continues to develop, the sustained support for entrepreneurs through programs like PMEGP will be vital in addressing unemployment and driving economic growth in Jammu and Kashmir.
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