Beneficiaries under the Prime Minister’s Employment Generation Programme (PMEGP) in the Andaman and Nicobar Islands have been advised to contact their respective financing banks or sponsoring agencies to resolve documentation issues and expedite the processing of subsidy claims. The advisory follows the return of several incomplete or incorrectly submitted subsidy applications by the Khadi and Village Industries Commission (KVIC), Kolkata.
According to the Directorate of Industries, a considerable number of claims from previous years have been sent back by KVIC with remarks requiring corrections and resubmission. The administration has therefore urged all beneficiaries who have recently availed PMEGP loans to immediately reach out to their financing institutions, including the District Industries Centre (DIC), Khadi and Village Industries Board (KVIB), and Extension Offices of the Industries Department, to ensure proper compliance and documentation.
The PMEGP scheme, implemented by KVIC, aims to promote self-employment and entrepreneurship by extending credit-linked subsidies to micro and small enterprises. Beneficiaries receive financial support to start new ventures, with a portion of the loan amount reimbursed as subsidy upon successful verification and completion of procedural requirements. However, errors in documentation, incorrect submissions, or delays in filing can lead to processing issues, as has been observed in the recent case.
To facilitate faster settlement of pending claims, the administration has advised that beneficiaries coordinate closely with their financing banks and sponsoring agencies to rectify deficiencies identified by KVIC. Once corrections are made, the revised subsidy claims will be forwarded for approval and release.
Officials explained that after the subsidy is sanctioned and received from KVIC, it will be held in a fixed deposit account until the loan is repaid. The subsidy amount will subsequently be adjusted following third-party physical verification and the submission of the corresponding report. This process ensures accountability and proper utilization of government support funds.
The Industries Department has appealed to all PMEGP participants to cooperate fully with the respective agencies to avoid further delays in claim settlements. Beneficiaries have also been urged to maintain transparency and timely communication with their financial institutions to ensure smooth processing.
In case of doubts or assistance, entrepreneurs may contact the District Industries Centre at 232601 or the KVIB office at 233301. Officials have reiterated that the process of correcting and resubmitting claims is routine and crucial to maintaining compliance with central government norms.
The advisory comes at a time when the administration is making renewed efforts to streamline self-employment schemes and promote entrepreneurship among the island’s youth and small business community. The PMEGP has been one of the key enablers of rural enterprise in the Andaman and Nicobar Islands, helping beneficiaries set up ventures in sectors such as food processing, handicrafts, and service industries.
Officials have emphasized that timely resubmission of claims will help ensure quicker fund disbursement and uninterrupted operation of such ventures. The collaborative approach between KVIC, banks, and local industry offices aims to enhance transparency and improve the efficiency of central schemes at the grassroots level.
The advisory serves as a reminder to PMEGP beneficiaries to stay proactive in fulfilling documentation requirements. As the islands continue to promote small-scale entrepreneurship as a pillar of sustainable economic growth, effective communication and procedural compliance remain vital to ensuring that financial assistance reaches its intended recipients without delay.
