The Parliamentary Standing Committee on Industry, chaired by Rajya Sabha MP Tiruchi Siva, has presented its 328th report in Parliament concerning the review of the implementation of the Prime Minister’s Employment Generation Program (PMEGP) of the Ministry of Micro, Small, and Medium Enterprises. The committee has recommended the removal of the educational requirement barrier up to the eighth grade for traditional artisans.
The committee stated that applicants under the nano category should be provided with special privileges or additional benefits, as a new ‘nano’ category (in addition to the existing micro, small, or medium categories) was already proposed in the 327th report (2025-26). Therefore, the educational requirement barrier up to the eighth grade for traditional artisans should be removed. A single-window approval system should be implemented to facilitate rapid approval and reduce procedural delays. An automated, menu-driven application form should be established to screen out ineligible applicants. The report recommends leveraging AI technology in PMEGP operations to improve service delivery.
The committee has also recommended the implementation of a mobile-based notification system to provide real-time updates on PMEGP applications in all 22 scheduled languages, ensuring that forms for beneficiaries are available both online and offline in all 22 scheduled languages. To streamline the process and reduce delays, a self-certification mechanism for loan applications up to a predetermined amount should be implemented. Additionally, it is recommended to strengthen capacity-building initiatives for entrepreneurs, provide continuous support, and develop training modules on digital literacy, financial management, and entrepreneurship in collaboration with the Ministry of Skill Development and Entrepreneurship.
The text emphasizes the launch of a digital skills program, highlighting the importance of focusing on youth and women artisans for job creation. It suggests increasing awareness through media, workshops, awareness camps, and social media. Continuous monitoring of the plan should be conducted, and identified shortcomings must be addressed. A dedicated help desk should be established to provide real-time assistance, and it’s recommended to implement an output-based training and eligibility system under the PMEGP scheme.
Additionally, in collaboration with the RBI, a uniform and streamlined interest/margin rate for MSMEs should be established across all banks, and it is suggested that the ministry and banks provide detailed educational materials and training for applicants to prepare project reports and manage funds. Both banks and private banks should actively promote PMEGP, and a data-driven formula should be recommended to focus on citizen welfare rather than just profit-making, as well as to allocate margin money and performance-based incentives for the northeastern states.
