Atal Pension Yojana to continue, SIDBI gets Rs5,000 crore infusion

The Union Cabinet on Wednesday approved an equity infusion of Rs5,000 crore into the Small Industries Development Bank of India (SIDBI), a move aimed at strengthening credit flow to micro, small and medium enterprises (MSMEs). According to an official statement, the equity capital will be infused by the Department of Financial Services (DFS) in three tranches. Of the total amount, Rs3,000 crore will be infused in the financial year 2025–26 at a book value of ₹568.65 per share as on March 31, 2025. The remaining Rs2,000 crore will be infused in two equal tranches of Rs1,000 crore each in the financial years 2026–27 and 2027–28, at the book value as on March 31 of the respective preceding financial years.Following the equity support, the number of MSMEs receiving financial assistance from SIDBI is expected to rise from 76.26 lakh at the end of financial year 2025 to around 102 lakh by the end of financial year 2028. This translates into the addition of nearly 25.74 lakh new MSME beneficiaries. Around 6.90 crore MSMEs currently generate employment for approximately 30.16 crore people, averaging 4.37 persons per enterprise. Based on this estimate, the addition of new MSME beneficiaries is expected to generate employment for around 1.12 crore people by the end of financial year 2027–28.
The Cabinet also approved the continuation of Atal Pension Yojana till the year 2030-31, along with the extension of funding support for promotional and developmental activities. The scheme was launched in May 2015 with the objective of providing old-age income security to workers in the unorganised sector. The scheme offers a guaranteed minimum pension, ranging from one thousand to five thousand rupees per month after attaining the age of 60, depending on the subscriber’s contribution. Over eight crore 66 lakh subscribers have been enrolled so far under the scheme, making it a cornerstone of the country’s inclusive social security framework.