How to File RTI for PMEGP Employment Generation Subsidy — Rejection, Disbursement and Transparency

The Prime Minister's Employment Generation Programme (PMEGP) is one of India's largest credit-linked subsidy schemes for self-employment, providing government subsidies of 15%–35% of the project cost for new manufacturing and service enterprises. Administered by the Ministry of Micro, Small and Medium Enterprises (MSME) and implemented primarily through the Khadi and Village Industries Commission (KVIC), KVIC is a public authority under Section 2(h) of the RTI Act, 2005 and is fully bound by all RTI obligations.

Despite large annual allocations, many entrepreneurs find their PMEGP applications rejected without clear reasons, subsidies unreleased months after loan disbursement, or bank loans denied after KVIC recommended them. RTI is the most effective tool to demand transparency on eligibility criteria, selection committee processes, bank-wise disbursement data, and the gap between annual targets and actual achievement.

Understanding the Three-Tier Implementing Structure

PMEGP does not have a single implementing authority — it operates through three agencies simultaneously, and directing your RTI to the wrong one is one of the most common mistakes applicants make.

KVIC State/Divisional Offices (Central Government) handle PMEGP applications from rural areas (villages and towns with population below 20,000 under PMEGP guidelines). KVIC State Offices and Divisional Offices scrutinise applications, convene Selection Committees, recommend projects to banks, and release subsidies from the Central Government's allocation. Since KVIC is a Central Government body, RTI filed with KVIC CPIOs is governed by the central RTI framework, and the second appeal goes to the Central Information Commission (CIC).

State Khadi and Village Industries Boards (KVIBs) are separate statutory bodies constituted under individual state governments — they are not part of KVIC. KVIBs receive their own PMEGP quota from the Ministry and implement the scheme within their state under state government authority. RTI against a KVIB must be filed with the KVIB's SPIO through the relevant state RTI portal, and the second appeal goes to the State Information Commission — not the CIC.

District Industries Centres (DICs) are state government offices under the state's industries department that handle PMEGP applications from urban areas. For RTI about an application processed by a DIC, file with the DIC's APIO/SPIO through the state RTI portal; the second appeal goes to the State Information Commission.

KVIC Headquarters, Mumbai is the correct authority for national-level policy documents, project cost ceilings, aggregate state-wise data, Ministry instructions to implementing agencies, and KVIC Board decisions. For district-level application status or rejection reasons, approach the State or Divisional Office, not HQ.

Understanding which tier processed your application — and whether it was KVIC, a KVIB, or a DIC — determines not just where to file your RTI, but which information commission handles your appeals.

What Can You Achieve with RTI under PMEGP?

RTI is particularly powerful for the following categories of PMEGP grievances:

• Obtain the rejection reason in writing — the specific eligibility criterion, scoring deficiency, or document cited — for an application rejected at the KVIC/KVIB/DIC stage
• Confirm whether your application was forwarded to a bank and on what date, or at what stage it is stuck
• Get the selection criteria and scoring methodology used by the Selection Committee to rank applications in your district for a given financial year
• Obtain the composition of the District Level Task Force (DLTF) — the members, meeting dates, and quorum — to verify whether the selection process followed prescribed guidelines
• Access bank-wise loan sanction and subsidy disbursement data for your state or district to identify patterns of under-disbursement by specific banks
• Verify PMEGP target vs achievement for your state and district — how many projects were sanctioned versus the annual target, and how much subsidy was released versus allocated
• Trace the status of a pending subsidy release — whether KVIC has transferred the subsidy to the bank and whether the bank has created the Term Deposit Receipt (TDR) in your name
• Confirm the current project cost ceiling and subsidy rates by category to check whether your application was evaluated correctly

Where to File: Matching Your Question to the Right Authority

How to File on rtionline.gov.in

1. Go to rtionline.gov.in and register or log in.
2. Click Submit Request and select Ministry of Micro, Small and Medium Enterprises from the ministry dropdown.
3. Select Khadi and Village Industries Commission as the public authority.
4. Draft your application clearly, referencing your PMEGP application number, the financial year, and your district. For policy/aggregate data questions, state that you are seeking information held at the national/HQ level.
5. Pay ₹10 via net banking, debit card, or UPI. BPL cardholders are exempt and must attach a BPL card copy.
6. Submit and note the registration number for follow-up and appeals.

To reach a KVIC State or Divisional Office by post, address your application to the CPIO at the relevant state/divisional office address (available on KVIC's website), enclose an Indian Postal Order (IPO) for ₹10, and send by speed post, retaining the receipt.

What Specific Information Can You Ask For?

Targets, Achievement, and Policy Data (File with KVIC HQ)

1. PMEGP target (number of projects and subsidy outlay in rupees) assigned to KVIC for State Name and District Name for FY 20XX-XX, and the actual achievement — projects sanctioned, loans disbursed, and total subsidy released — as on date.
2. State-wise and district-wise PMEGP achievement report for FY 20XX-XX as submitted by KVIC to the Ministry of MSME, showing targets vs. actual sanctioned projects and subsidy amounts.
3. The current project cost ceiling (in rupees) applicable under PMEGP for manufacturing enterprises (rural and urban separately) and service enterprises (rural and urban separately), as in force from date.
4. The subsidy rates applicable to each beneficiary category — General (rural/urban), SC/ST/OBC/Women/Minority/Ex-Serviceman/Differently Abled (rural/urban) — as currently notified.
5. Copies of any operational guidelines, circulars, or instructions issued by KVIC HQ to State/Divisional Offices for PMEGP implementation in FY 20XX-XX, including category-wise and district-wise target allocation methodology.
6. Whether any PMEGP funds allocated to KVIC for State Name in FY 20XX-XX were surrendered to the Ministry unspent — if yes, the amount and the reason.

Selection Committee Composition and Process (File with KVIC State/Divisional Office or DIC)

7. Names and designations of all members of the District Level Task Force (DLTF) / Selection Committee constituted for District Name under PMEGP for FY 20XX-XX, as notified by the District Magistrate or competent authority.
8. Dates on which DLTF/Selection Committee meetings were held for District Name in FY 20XX-XX, the quorum at each meeting, and the number of applications reviewed at each meeting.
9. Copies of the minutes of DLTF meetings held in District Name during FY 20XX-XX at which PMEGP applications were reviewed and recommended (names of individual applicants may be redacted if required, but the number of applications, decisions, and reasons must be disclosed).
10. The scoring methodology and weightage criteria used by the DLTF to rank and select PMEGP applications in District Name for FY 20XX-XX, as prescribed in the operational guidelines or any standing instructions in force.

Bank-wise Loan Sanction and Subsidy Disbursement

11. Bank-wise data for PMEGP in State Name for FY 20XX-XX: for each participating bank — number of PMEGP applications received, number sanctioned, number disbursed, total loan amount sanctioned, and total subsidy amount released by KVIC.
12. Whether any bank in State Name was issued a notice or advisory by KVIC during FY 20XX-XX for under-performance in PMEGP loan sanctions or disbursements — if yes, the name of the bank and the nature of the notice.
13. The total PMEGP subsidy disbursed by KVIC HQ to banks in State Name during FY 20XX-XX on a quarterly basis, and the amount pending disbursement as on date.

Individual Application Status and Rejection (File with KVIC State/Divisional Office or DIC)

14. Current status of PMEGP application bearing number XXXX submitted on date at agency name/bank — the stage of processing and the reason for any pending or held status.
15. If the application was not forwarded to a bank, the specific grounds for non-recommendation, citing the relevant clause of the PMEGP operational guidelines under which the application was found ineligible.
16. The rejection rate for PMEGP applications processed by KVIC's State/Divisional Office in FY 20XX-XX: total applications received, number recommended for bank forwarding, number returned or rejected at KVIC's stage, and the most common stated reasons for rejection with frequency count.

First Appeal and Second Appeal

First Appeal (Section 19(1)): If the CPIO does not respond within 30 days, provides an incomplete reply, or denies information without adequate grounds, file a First Appeal with the First Appellate Authority (FAA) at KVIC — typically a senior officer at KVIC HQ or the State/Divisional Office — within 30 days of the date of decision or expiry of the 30-day response period, whichever is applicable.

Second Appeal (Section 19(3)): If the First Appellate Authority's response remains unsatisfactory or no response is received, file a Second Appeal with the Central Information Commission (CIC) within 90 days. KVIC is a Central Government statutory body under the Ministry of MSME — the CIC is the second appeal authority for all RTIs filed with KVIC CPIOs.

Important exception — state-level bodies: If your RTI was filed with a state KVIB (not KVIC) or a DIC (District Industries Centre), those are state government authorities. The second appeal for those RTIs goes to the relevant State Information Commission, not the CIC.

The CIC has consistently held that PMEGP beneficiary lists, selection criteria, and subsidy disbursement data are disclosable as they involve public funds and serve the larger public interest in government transparency. A denial on the grounds of Section 8(1)(j) (personal information) is not a blanket exemption for aggregated programme data — only genuinely personal details such as individual bank account numbers warrant protection, and the exemption must be applied on a document-by-document basis, not as a blanket refusal.

Penalty: Under Section 20 of the RTI Act, the CIC can impose a penalty of ₹250 per day (up to ₹25,000) on a CPIO who fails to respond without reasonable cause, and can recommend disciplinary action.