KVIC Gives Big Boost to Small Businesses in South India
The Khadi and Village Industries Commission (KVIC) has disbursed ₹300 crore as margin money subsidy to 11,480 beneficiaries across India.
The disbursement took place on 17th June 2025 during a virtual event from KVIC’s Rajghat office in New Delhi.
Chairman Shri Manoj Kumar transferred the subsidy directly to the bank accounts of the beneficiaries using an online system.
Out of the total amount, South Indian states received ₹116 crore. These funds support 4,565 projects in Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, and Puducherry.
The sanctioned loans for these projects total ₹343 crore. The aim is to create more jobs and help rural entrepreneurs.
PMEGP: A Gateway to Self-Employment
The Prime Minister’s Employment Generation Programme (PMEGP) helps people start small businesses with financial aid.
It offers a subsidy on the margin money, making it easier for applicants to get loans and launch ventures.
“PMEGP is a social movement that connects youth, women, and artisans with self-reliance,” said Shri Manoj Kumar.
He added that the scheme supports Atmanirbhar Bharat, a vision of Prime Minister Narendra Modi for a strong and self-reliant India.
Inclusive Growth Across Regions
This disbursement event saw participation from all six Indian regions. KVIC ensured wide coverage and inclusive support for various sections of society.
The scheme benefits a diverse group including youth, women, SC/ST entrepreneurs, and minority communities.
Ms. Roop Rashi, CEO of KVIC, and other senior officials attended the virtual event and encouraged more people to apply.
How Beneficiaries Can Apply
To benefit from PMEGP, applicants can visit the KVIC Online Portal or nearby KVIC district offices.
The scheme covers both manufacturing and service sector units, making it suitable for a wide range of business ideas.
Impact on the Ground
In states like Kerala and Tamil Nadu, many artisans and first-time entrepreneurs now have the funds to begin work.
For example, Kavita, a handloom worker in Palakkad, received support to start her own weaving unit through PMEGP.
NGOs working in rural and tribal areas also welcomed this move. It helps reach people who often lack access to formal loans.