KVIC Disburses Over Rs 300 Crore in Margin Money Subsidy to 11,480 Service Providers

The Khadi and Village Industries Commission (KVIC) has successfully disbursed a substantial margin money subsidy of โน300 crore to 11,480 beneficiaries in the service sector across India. This initiative, part of the Prime Ministerโs Employment Generation Programme (PMEGP), was conducted virtually on June 17, 2025, with a total loan sanction of โน906 crore. The event took place at the Rajghat office in New Delhi, where KVIC Chairman Manoj Kumar and his team facilitated the transfer of funds directly to the beneficiaries’ bank accounts.
Significance of the PMEGP
During the virtual event, KVIC Chairman Manoj Kumar emphasized the importance of the PMEGP in fostering a self-reliant and developed India under Prime Minister Narendra Modi‘s leadership. He highlighted that the scheme transcends mere financial assistance, evolving into a social movement that empowers countless youth, women, and artisans to pursue self-employment and entrepreneurship. Kumar noted that the PMEGP plays a crucial role in generating employment opportunities and promoting self-reliance in villages across the nation.
Regional Participation in Fund Disbursement
The disbursement program saw active participation from all six zones of the country. In the Central Zone, a subsidy of โน72 crore was allocated to 2,403 projects in states such as Uttar Pradesh, Madhya Pradesh, Chhattisgarh, and Uttarakhand, with a total loan sanction of โน218 crore. The East Zone received โน22 crore for 996 projects across Bihar, Jharkhand, Odisha, West Bengal, and the Andaman & Nicobar Islands, amounting to a loan sanction of โน71 crore.
In North India, states including Punjab, Haryana, Himachal Pradesh, Jammu & Kashmir, Ladakh, Rajasthan, and Chandigarh benefited from a subsidy of โน61 crore for 2,713 projects, with loans totaling โน184 crore. The North East Region, which includes states like Assam, Manipur, and Meghalaya, received a subsidy of โน2 crore for 81 projects.
Support for Southern and Western States
In the Southern states of Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, Kerala, and Puducherry, a significant subsidy of โน116 crore was disbursed, covering 4,565 projects, with loans exceeding โน343 crore. Meanwhile, in the Western Zone, which includes Maharashtra, Gujarat, and Goa, more than โน26 crore was allocated for 722 projects, supported by a loan sanction of โน82 crore. This widespread financial support underscores the government’s commitment to enhancing entrepreneurship across diverse regions.
Impact of PMEGP on Employment
Since its inception, the PMEGP has emerged as a cornerstone for entrepreneurship and self-reliance in both rural and urban India. To date, the program has facilitated the establishment of over 1 million micro-enterprises, with loans amounting to โน73,348 crore sanctioned by the Government of India. In return, beneficiaries have received a margin money subsidy of โน27,166 crore. The initiative has created direct and indirect employment for more than 9 million individuals, solidifying its status as one of the most effective self-employment schemes in the country. The PMEGP not only promotes self-employment but also embodies the Prime Minister’s vision of a self-reliant India.
Observer Voice is the one stop site for National, International news, Sports, Editorโs Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.