KVIC Signs MoU with Department of Posts to Boost PMEGP Implementation and Entrepreneurship

KVIC will also provide training to these postal employees to ensure accurate and efficient verification processes.

In a significant step towards realizing Prime Minister Shri Narendra Modi's vision of a developed India, the Khadi and Village Industries Commission (KVIC), under the Ministry of Micro, Small and Medium Enterprises (MSME), has signed a Memorandum of Understanding (MoU) with the Department of Posts, which operates under the Ministry of Communications. The agreement was formalized on Tuesday at the KVIC office in Rajghat, New Delhi.

Under this MoU, postal employees across India will conduct physical verification of new units established under the Prime Minister Employment Generation Programme (PMEGP). KVIC will also provide training to these postal employees to ensure accurate and efficient verification processes.

The signing ceremony was attended by key dignitaries, including KVIC Chairman Shri Manoj Kumar, Joint Secretary of MSME Shri Vipul Goyal, CEO of KVIC Shri Vatsalya Saxena, and General Manager of the Department of Posts Ms. Manisha Bansal Badal. The MoU was signed by Dr. Amanpreet Singh, Deputy General Manager, on behalf of the Department of Posts, and Shri Rajan Babu, Deputy CEO of PMEGP, on behalf of KVIC.

With this collaboration, KVIC will leverage the extensive network of 1,65,000 post offices across India, including 139,067 located in rural areas. This partnership aims to enhance the efficiency of PMEGP by expediting the physical verification of units and faster settlement of margin money subsidies.

KVIC Chairman Shri Manoj Kumar highlighted that this MoU aligns with Prime Minister Modi’s vision of fostering a cooperative work culture between government departments. The collaboration with the Department of Posts, with its over 150-year-old communication network, is expected to significantly bolster the implementation of PMEGP, which has been instrumental in promoting entrepreneurship and generating employment across the country.

Since its inception, PMEGP has facilitated the establishment of over 9.69 lakh new projects, creating employment opportunities for more than 84.64 lakh entrepreneurs. To date, the scheme has disbursed margin money subsidies amounting to Rs 25,563.44 crore against loans totaling Rs 69,021.29 crore. In the last financial year alone, PMEGP generated employment for over 9.80 lakh entrepreneurs and distributed margin money subsidies exceeding Rs 3,093 crore.

Shri Manoj Kumar also emphasized the tremendous growth of Khadi and Village Industries over the past decade, noting that under Prime Minister Modi's leadership and the guidance of the MSME Ministry, the turnover of Khadi and Village Industries has surpassed Rs 1.55 lakh crore for the first time in independent India’s history. This period has seen a five-fold increase in sales and a four-fold increase in production, leading to the creation of 10.17 lakh new jobs in the sector.

The MoU marks a milestone in the efforts to drive economic development and entrepreneurship across India, with the collaboration between KVIC and the Department of Posts playing a crucial role in achieving these objectives.