Srinagar, Aug 7: Jammu & Kashmir has seen a notable participation in the Prime Minister’s Employment Generation Programme (PMEGP), with over 1.2 lakh beneficiaries receiving support under the scheme during the last three years.
However, the region has also witnessed a decline in the number of loan sanctions and beneficiaries for 2024-25, reflecting broader trends in the MSME sector.
According to data released by the Ministry of Micro, Small, and Medium Enterprises in the Lok Sabha, Jammu & Kashmir sanctioned 25,606 loans in 2023-24, benefiting 15,065 individuals. However, in the ongoing financial year 2024-25, 17,579 loans were sanctioned, but the number of beneficiaries dropped to 9,863, marking a significant dip compared to previous years.
The reasons behind this decline are multifaceted. One of the key contributing factors is the increase in the average project cost per unit, which rose from Rs 9.83 lakh in FY 2021-22 to Rs 12.36 lakh in FY 2024-25.
This has resulted in a higher outflow of margin money subsidy per unit, affecting the number of beneficiaries assisted under the scheme due to budget constraints.
Another contributing factor is the viability of projects being appraised by banks, as each project is assessed on its potential for success. Despite the decrease in the number of beneficiaries, the government continues to focus on the growth of MSMEs, especially those with potential for expansion. (KNO)
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