Overview of PMEGP
The Prime Minister's Employment Generation Programme (PMEGP) is a credit-linked subsidy scheme launched by the Government of India in 2008. It aims to generate employment opportunities in both rural and urban areas through the establishment of new micro-enterprises.
The scheme is implemented by the Khadi and Village Industries Commission (KVIC) at the national level, and by State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), and District Industries Centres (DICs) at the state level.
PMEGP is a flagship scheme designed to provide financial assistance for setting up new projects, thereby contributing to the economic development and self-reliance of individuals and communities across the country.
Key Objectives
- To generate employment opportunities in rural and urban areas through the establishment of new self-employment ventures/projects/micro enterprises.
- To provide continuous and sustainable employment to a large segment of traditional and prospective artisans and unemployed youth in rural and urban areas.
- To facilitate the participation of financial institutions for higher credit flow to the micro-enterprise sector.
- To prevent migration of rural youth to urban areas by providing them with self-employment opportunities at their doorstep.
Eligibility Criteria
General Eligibility
- Any individual, above 18 years of age.
- There will be no income ceiling for assistance for setting up projects under PMEGP.
- For projects costing above Rs. 10 lakh in the manufacturing sector and above Rs. 5 lakh in the business/service sector, the beneficiary should possess at least VIII standard pass educational qualification.
- Assistance under the scheme is available only for new projects.
- Self Help Groups (SHGs), provided that they have not availed benefits under any other scheme, Institutions registered under Societies Registration Act, 1860, Production Co-operative Societies, and Charitable Trusts are also eligible.
Project Cost Limits
- Manufacturing Sector: Max project cost Rs. 50 lakh.
- Service/Business Sector: Max project cost Rs. 20 lakh.
Beneficiary Contribution (Own Contribution)
- General Category: 10% of project cost.
- Special Category: 5% of project cost.
SC/ST/OBC/Minorities/Women/Ex-servicemen/ Physically Handicapped/NER
Financial Assistance and Benefits
Margin Money (Subsidy) for New Units
|
Categories of Beneficiaries under PMEGP (for setting up of new enterprises) |
Beneficiary's Contribution (of project cost) |
Rate of Subsidy (of project cost) |
|
|---|---|---|---|
| Urban | Rural | ||
| Area (location of project/unit) | |||
| General Category | 10% | 15% | 25% |
| Special Category (including SC, ST, OBC, Minorities, Women, Ex-Servicemen, Transgenders, Differently Abled, NER, Aspirational Districts, Hill and Border areas (as notified by the Government), etc. | 05% | 25% | 35% |
- The maximum cost of the project/unit admissible for Margin Money subsidy under the Manufacturing sector is Rs. 50 lakhs.
Bank Loan
The remaining portion of the project cost (after deducting the margin money subsidy and beneficiary's own contribution) will be provided by banks as term loan and/or working capital.
Banks will sanction 90% of the project cost for General Category and 95% for Special Category beneficiaries.
Training
Beneficiaries are provided with Entrepreneurship Development Programme (EDP) training to equip them with necessary skills for managing their enterprises successfully.
How to Apply
- Online Application: Visit the official PMEGP e-portal and fill out the online application form.
- Project Proposal: Prepare a detailed project proposal for your chosen manufacturing or service activity.
- Document Submission: Upload all required documents, including identity proof, address proof, educational qualification certificates, caste/category certificate (if applicable), and project report.
- Interview: Attend an interview at the District Industries Centre (DIC), KVIC, or KVIB office.
- Bank Sanction: If selected, your application will be forwarded to banks for sanction of the loan.
- EDP Training: Undergo mandatory Entrepreneurship Development Programme (EDP) training.
- Disbursement: Upon successful completion of training and bank formalities, the loan amount will be disbursed.