PMEGP Applications Take 58 Days To Process, Banks Take 70 Days For Loan Sanction: Govt

New Delhi, Jul 31 (KNN) Applications under the Prime Minister's Employment Generation Programme (PMEGP) take an average of 58 days to process by implementing agencies, while banks take 70 days for loan sanction and the Khadi and Village Industries Commission (KVIC) takes 84 days to release margin money subsidy, the government informed the Lok Sabha.

Delays Linked to Application and Credit Formalities

Minister of Micro, Small and Medium Enterprises Jitan Ram Manjhi said the time taken for sanction and disbursement of margin money subsidy depends on factors including completion of application formalities, project viability assessment and credit decisions by banks.

It also depends on beneficiary contribution, completion of Entrepreneurship Development Programme (EDP) training and submission of subsidy claims by financing banks.

The government monitors the implementation of PMEGP, including the processing and disbursement of financial assistance across states, including Karnataka.

Government Reviews Pending Applications to Speed Up Approvals

To expedite the process, pending applications and subsidy claims are reviewed through quarterly bankers' meetings at state and zonal levels, along with State Level Monitoring Committee and District Level Monitoring Committee meetings.

More than 1,000 model Detailed Project Reports covering various sectors have also been made available on the PMEGP portal to help applicants prepare project proposals.

Relaxed Requirements for Smaller PMEGP Projects

The government has waived educational qualification requirements for manufacturing projects up to Rs 10 lakh and service projects up to Rs 5 lakh. EDP training has also been exempted for projects up to Rs 2 lakh to speed up approvals for smaller projects.

PMEGP Helpdesks have been established at the state level to guide applicants and provide assistance. The government also conducts awareness programmes and financial literacy camps across states and Union Territories, including aspirational districts, underperforming areas and the North-Eastern Region.

Digital Platform Supports End-to-End PMEGP Processing

The PMEGP portal functions as an end-to-end digital platform and is integrated with financing banks through the Jan Samarth portal. The system provides SMS alerts to applicants at different stages and facilitates Udyam Registration.

The government said these measures are aimed at streamlining approvals, improving coordination with financing banks, expediting application disposal and ensuring timely release of margin money subsidies under PMEGP.

(KNN Bureau)