Odisha Ranks Fifth in India for PMEGP Loan Approvals
State sees surge in youth entrepreneurship, strong monitoring boosts loan disbursal efficiency
Bhubaneswar: Odisha has emerged as one of the top-performing states under the Prime Minister’s Employment Generation Programme (PMEGP), securing the fifth position nationally in loan approvals for first-generation and young entrepreneurs in the 2025–26 fiscal year. The achievement reflects the state’s growing focus on promoting self-employment and strengthening the micro-enterprise ecosystem.
PMEGP, administered by the Ministry of MSME, is a credit-linked subsidy scheme designed to empower youth by enabling them to start manufacturing and service-based ventures. The programme offers loans up to Rs 50 lakh for manufacturing projects and Rs 20 lakh for service units, with subsidies ranging from 15 to 35 per cent depending on the project type and location.
According to the PMEGP dashboard, Odisha has shown exceptional progress this year. Out of 9,924 applications received across all 30 districts, 8,327 have already been approved for loan sanctioning by banks. This high approval rate showcases the state’s efficiency in processing applications and extending timely support to aspiring entrepreneurs.
The faster scrutiny of applications has also led to the release of more than Rs 62.71 crore in margin money by 15 banks, enabling beneficiaries to kickstart ventures across multiple sectors.
The PMEGP scheme, closely monitored by the Prime Minister’s Office (PMO), has seen growing interest among youth aiming for stable and independent income sources. This year’s applications included 5,858 from general category unemployed youth, followed by 1,392 from SCs, 1,828 from OBCs, 783 from STs, and 63 from minority communities.
Odisha has also emerged as the top state in receiving the highest number of general-category PMEGP applications this year. In the previous fiscal, out of 15,946 applicants, 15,135 were selected for bank loans—highlighting Odisha’s consistently strong performance in encouraging self-employment.
Officials attribute the state’s high ranking to effective monitoring and streamlined coordination with banks. MSME commissioner-cum-secretary D Prasanth Kumar Reddy noted that the government’s proactive approach has significantly reduced processing delays.
“Time-bound scrutiny of applications and close follow-up with financing institutions have ensured quick movement of cases at the entry level. The government is committed to supporting first-generation entrepreneurs,” he said.
In addition to facilitating loan approvals, the state government is exploring ways to integrate PMEGP-supported units with branding support, market linkages, and digital commerce platforms. These steps aim to enhance the long-term sustainability of micro-enterprises and enable them to compete in wider markets.
“We will also be monitoring how the credits supported by banks translate into employment generation,” Reddy added, underscoring the broader goal of strengthening Odisha’s rural and semi-urban economy through entrepreneurship.
With improved processes, strong demand, and strategic support mechanisms, Odisha continues to solidify its position as a leading hub for youth-driven self-employment under PMEGP.
