Portal closed for business, startup dreams on hold
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Since April, the online portal for PMEGP — a flagship self-employment scheme — was completely shut for two months and has only recently reopened partially. As of now, only applicants from the scheduled caste (SC) category are allowed to submit applications. General category applicants, who constitute a significant share of aspiring business owners, continue to face an indefinite freeze.
"There has never been such a blanket closure since the scheme launched in 2008," said Bhupinder Singh, functional manager at the District Industries Centre (DIC), Ludhiana.
"The application process has continued uninterrupted even with changes in govt. This is the first time we've seen a prolonged stoppage."
Growing Demand
PMEGP is administered by the MSME (micro, small & medium enterprises) ministry and implemented nationally by the Khadi and Village Industries Commission (KVIC). At the state and district levels, it is executed by KVIC directorates, state khadi boards, and district industries centres.
The scheme offers financial assistance for setting up new micro-enterprises in both manufacturing and service sectors, based on a credit-linked subsidy model. Under current guidelines, applicants can seek loans of up to ₹50 lakh for manufacturing and ₹20 lakh for service or trading units, with a govt subsidy of 15 to 35%, depending on the category and area. District officials say demand has surged in recent years.
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"Our annual allocation target was ₹3 crore earlier, but last year the demand rose to ₹20 crore," said Bhupinder Singh.
No Clarity From Centre
Rakesh Kumar Kansal, general manager of the DIC, confirmed that the shutdown was due to technical restrictions from the central govt. "The portal was non-functional for two months after April. It now accepts only SC category applications. We're awaiting further instructions from the Centre on when general category processing will resume," he said.
The delay has left many prospective entrepreneurs in a state of confusion and frustration. "We were informed about the scheme in recent seminars, but what's the point if applications haven't been accepted for months?" said Gagandeep Singh, an aspiring applicant. "The govt must act and open the scheme to all categories." Without a clear timeline from the central authorities, the indefinite delay threatens to derail the entrepreneurial ambitions of hundreds across Ludhiana, undermining the very goal of the employment generation programme.
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