SRINAGAR: The release of further Margin Money (MM) subsidy under the Prime Minister’s Employment Generation Programme (PMEGP) is contingent on approval for continuation of the scheme, the Union Government informed the Rajya Sabha on Monday, potentially affecting future subsidy disbursements to beneficiaries in Jammu and Kashmir.
According to data tabled by the Ministry of Micro, Small and Medium Enterprises, 1,46,410 beneficiaries in Jammu and Kashmir were sanctioned loans under PMEGP from its inception in 2008-09 through 2025-26. The loans sanctioned to these beneficiaries amounted to Rs 8,424.10 crore, while Rs 2,149.71 crore in Margin Money subsidy was disbursed during the period.
The Government said PMEGP was in continuation only up to March 31, 2026, and an Expenditure Finance Committee (EFC) meeting has been conducted for continuation of the scheme for the next five years. Further release of Margin Money subsidy will depend on approval for the scheme’s continuation.
The clarification came in response to Rajya Sabha Unstarred Question No. 1694 regarding pending Margin Money subsidy under PMEGP.
The Ministry did not provide a State- or district-wise figure for beneficiaries awaiting subsidy, nor did it give a break-up of delays attributed to shortage of funds, procedural issues, banks or administrative reasons. Instead, it linked further subsidy releases to the pending decision on continuation of the scheme.
Jammu and Kashmir recorded a marked increase in PMEGP loan sanctions in recent years. The number of beneficiaries sanctioned loans rose from 14,562 in 2020-21 to 23,944 in 2021-22, reaching 26,742 in 2022-23. The figure stood at 25,484 in 2023-24, 17,346 in 2024-25 and 6,378 in 2025-26.
The loan amount sanctioned in JK also peaked at Rs 1,569.15 crore in 2022-23, before declining to Rs 1,467.79 crore in 2023-24, Rs 1,035.78 crore in 2024-25 and Rs 451.06 crore in 2025-26.
The Margin Money subsidy disbursed in JK stood at Rs 467.14 crore in 2021-22, the highest annual amount recorded in the data, followed by Rs 239.94 crore in 2022-23, Rs 282.50 crore in 2023-24, Rs 239.41 crore in 2024-25 and Rs 155.45 crore in 2025-26.
Across India, PMEGP has sanctioned loans to 12,64,975 beneficiaries since its inception, involving a total loan amount of Rs 1,06,128.32 crore, while Rs 29,623.41 crore in Margin Money subsidy has been disbursed.
PMEGP is aimed at promoting self-employment and generating employment through the establishment of micro-enterprises. The latest government response leaves the future release of the subsidy component dependent on the formal approval for the scheme’s continuation beyond March 2026.
