PMEGP scheme: Centre disburses ₹504.68 crore subsidy to 22,259 new units

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PMEGP scheme: Centre disburses ₹504.68 crore subsidy to 22,259 new units

Synopsis

The Centre released ₹504.68 crore in PMEGP subsidies for 22,259 new rural units in a single online disbursement — the latest signal of how far the Khadi sector has travelled from its cottage-industry roots, with a ₹1.87 lakh crore turnover record and an eye on ₹2.51 lakh crore next.

Key Takeaways

KVIC disbursed ₹504.68 crore in PMEGP margin money subsidies to 22,259 new projects on 18 June 2025 .
Banks have sanctioned approximately ₹1,485 crore in loans; projects expected to employ 2,44,849 people.
Over the past 12 years , PMEGP has supported 10.84 lakh units with ₹29,623 crore in subsidies, generating jobs for 97.95 lakh people.
Khadi sector turnover has reached a record ₹1.87 lakh crore ; new target set at ₹2.51 lakh crore .
80% of Haryana's Khadi artisans are women, according to Chief Minister Nayab Singh Saini .
3,645 machines and toolkits distributed virtually to 972 artisans across 7 states and UTs at the Khadi Rozgar Utsav .

The Centre's Khadi and Village Industries Commission (KVIC) disbursed online margin money subsidies worth ₹504.68 crore to 22,259 new projects for village artisans and micro enterprises across India under the Prime Minister's Employment Generation Programme (PMEGP) on 18 June 2025, according to a statement from the Ministry of Micro, Small and Medium Enterprises (MSME). Banks have sanctioned loans of approximately ₹1,485 crore for these projects, which are expected to generate employment for 2,44,849 people.

Khadi Rozgar Utsav in Haryana

The disbursement took place at a 'Khadi Rozgar Utsav' held at Siwani in Bhiwani district, Haryana. KVIC Chairman Manoj Goyal and Haryana Chief Minister Nayab Singh Saini presided over the event. In addition to the subsidy release, 3,645 modern machines and toolkits were distributed virtually to 972 artisans across seven states and union territories — Haryana, New Delhi, Himachal Pradesh, Odisha, Uttarakhand, Uttar Pradesh, Goa, and Tripura.

Sector Milestones and Targets

KVIC Chairman Manoj Goyal highlighted that the Khadi and Village Industries sector has recorded total production of approximately ₹1.25 lakh crore and a turnover of ₹1.87 lakh crore — described as a record level — while providing employment to 2.04 crore people nationwide. He attributed these gains to the collective efforts of artisans, weavers, rural entrepreneurs, and Khadi institutions across the country. The sector has now set an ambitious turnover target of ₹2.51 lakh crore.

Goyal further noted that over the past 12 years, more than 10.84 lakh new units have been established under the PMEGP, with the government providing margin money subsidies totalling ₹29,623 crore, resulting in employment for approximately 97.95 lakh people.

Haryana's Khadi Landscape

Chief Minister Nayab Singh Saini said khadi remains a symbol of Swadeshi and has embodied the labour, dignity, and self-respect of crores of Indians since the freedom movement. He noted that approximately 58,796 artisans are employed through 96 active Khadi and Village Industries institutions in Haryana, and that more than 1.27 lakh people in the state have secured employment under the Village Industries Development Scheme.

Women at the Centre of the Khadi Revolution

Saini highlighted that 80 per cent of artisans associated with the Khadi sector in Haryana are women, describing it as a new revolution in women's empowerment. He added that a comprehensive system is being put in place to ensure products reach markets across India and abroad through both local outlets and e-commerce platforms.

This latest disbursement underscores the Centre's continued push to scale rural employment through structured subsidy pipelines — with the PMEGP's cumulative footprint now spanning over a decade of grassroots enterprise creation.

Point of View

₹29,623 crore in subsidies, 97.95 lakh jobs over 12 years — are substantial on paper, but the scheme's impact per rupee deserves scrutiny. Margin money subsidies create units; they do not guarantee their survival. The more telling metric would be how many of the 22,259 new beneficiaries are still operational three years from now. The 80% women-artisan figure from Haryana is a genuinely striking data point that mainstream coverage tends to bury — it suggests the Khadi sector may be one of the Centre's more effective, if underreported, women's livelihood instruments.
NationPress
12 Aug 2026

Frequently Asked Questions

What is the PMEGP scheme and who benefits from it?
The Prime Minister's Employment Generation Programme (PMEGP) is a credit-linked subsidy scheme administered by KVIC that helps village artisans and micro enterprises set up new units. Beneficiaries receive margin money subsidies from the government alongside bank loans to fund their projects.
How much subsidy was disbursed under PMEGP on 18 June 2025?
KVIC disbursed ₹504.68 crore in online margin money subsidies to 22,259 new projects on 18 June 2025. Banks have also sanctioned approximately ₹1,485 crore in loans for these units.
How many jobs are expected to be created from this disbursement?
The 22,259 new projects are expected to generate employment opportunities for 2,44,849 people, according to the MSME Ministry statement.
What is the Khadi sector's current turnover and future target?
The Khadi and Village Industries sector has recorded a turnover of ₹1.87 lakh crore, described as a record level, with total production at approximately ₹1.25 lakh crore. The sector has set a new target of ₹2.51 lakh crore in turnover.
Where was the Khadi Rozgar Utsav held and what else took place there?
The Khadi Rozgar Utsav was held at Siwani in Bhiwani district, Haryana. Apart from the subsidy disbursement, 3,645 modern machines and toolkits were distributed virtually to 972 artisans across seven states and union territories including Haryana, Delhi, Himachal Pradesh, Odisha, Uttarakhand, Uttar Pradesh, Goa, and Tripura.
Nation Press
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