The Prime Ministers Employment Generation Programme Or PMEGP scheme is implemented by Khadi and Village Industries Commission (KVIC) functioning as the nodal agency at the national level. At the state level, the scheme is implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs) and banks. In such cases KVIC routes government subsidy through designated banks for eventual disbursal to the beneficiaries / entrepreneurs directly into their bank accounts.
Government of India had in August, 2008, approved the introduction of a new credit linked subsidy programme called Prime Minister’s Employment Generation Programme (PMEGP) by merging the two schemes that were in operation till 31.03.2008 namely Prime Minister’s Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP) for generation of employment opportunities through establishment of micro enterprises in rural as well as urban areas.
PMEGP was in operation during XI and XII Plan and has been approved for continuation beyond XII plan for three FY from 2017-18 to 2019-20. PMEGP is a central sector scheme being administered by the Ministry of Micro, Small and Medium Enterprises (MoMSME).
The Government subsidy under the scheme is routed by KVIC through the identified Banks for eventual distribution to the beneficiaries/entrepreneurs in their Bank accounts. The Implementing Agencies, namely KVIC, KVIBs and DICs will associate reputed autonomous institutions in the field of Entrepreneurship development in Gol and State Govt/Self Help Groups (SHGs)/ National Small Industries Corporation (NSIC)/Udyami Mitras empanelled under Rajiv Gandhi Udyami Mitra Yojana (RGUMY), RSETIs/RUDSETIs, Panchayati Raj institutions and other relevant bodies in the implementation of the Scheme, especially in the area of identification of beneficiaries, of area specific viable projects, and providing training in entrepreneurship development, handholding and mentoring of beneficiaries.
| Name of the Scheme | PMEGP |
|---|---|
| Title | Check the Prime Ministers Employment Generation Programme Details |
| Subject | Govt Of India launched the Prime Ministers Employment Generation Programme (PMEGP) |
| Category | Scheme |
| Website | https://msme.gov.in/ |
| Apply Online | https://www.kviconline.gov.in/pmegpeportal/ |
| Reference | PMEGP Scheme Guidelines |
The PM Employment Generation Programme scheme aims to promote generation of employment opportunities through establishment of micro enterprises in rural as well as urban areas.
Eligibility for MPEGP
- Should be an Indian Citizen
- Any individual, above 18 years of age.
- At least VIII standard pass for projects costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business / service sector.
- Only new projects are considered for sanction under PMEGP.
- Self Help Groups (including those belonging to BPL 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.
Existing Units (under PMRY, REGP or any other scheme of Government of India or State Government) and the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are NOT eligible.
Benefits of PMEGP
- Scheme for providing financial assistance to set up new enterprises
- MSMEs can upgrade their competence in terms of business and technologies by getting rated through independent, renowned and professional rating agencies empanelled with NSIC.
- MSEs which get rated under NSIC- “Performance and Credit Rating scheme” have the liberty to get rated by any one of the rating agencies of their preference.
- It also invariably increases their creditability in business and helps them in getting timely credit from banks at liberal rate of interest.
- The maximum cost of the project/unit admissible in manufacturing sector is Rs 25 lakhs and in the business/service sector, it is Rs 10 lakhs.\
- Rate of subsidy under PMEGP (of project cost)
– For General category – 15% (Urban), 25%(Rural)
– Special (including SC/ ST/ OBC/ Minorities/Women, Ex-servicemen, Physically handicapped, NER, Hill and Border areas, etc.) – 25% (Urban), 35% (Rural) - The balance amount of the total project cost will be provided by the banks in the form of term loan and working capital.
Nature of Assistance
- The maximum cost of the project/unit admissible in manufacturing sector is Rs.25 lakhs and in business/service sector is Rs.10 lakhs.
- Categories of Beneficiary’s Rate of subsidy under PMEGP (of project cost)
- Area (location of project/unit) General category 15%(Urban), 25%(Rural), Special 25%(Urban), 35%(Rural) (including SC/ ST/ OBC/ Minorities/Women, Ex-servicemen, Physically handicapped, NER, Hill and Border areas, etc.)
- The balance amount of the total project cost will be provided by the banks in the form of term loan and working capital.
Levels of funding under PMEGP:
| Categories of Beneficiary’s under PMEGP | Beneficiaries contribution (of project cost) | Rate of subsidy (of project cost) | |
| Area (location ofproject/unit) | Urban | Rural | |
| GENERAL CATEGORY | 10% | 15% | 25% |
| Special (including SC/ST/OBC/ Minorities/Women,Ex-servicemen,Physicallyhandicapped, NER,Hill and Borderareas, etc.) | 5% | 25% | 35% |
The balance amount of the total project cost will be provided by the banks as term loan and working capital.
How to apply for PMEGP?
- The State/Divisional Directors of KVIC in consultation with KVIB and Director of Industries of the respective states (for DICs) will give advertisements locally through print & electronic media inviting applications along with project proposals from prospective beneficiaries desirous of establishing the enterprise/starting of service units under PMEGP.
- The beneficiaries can also submit their application online at kviconline.gov.in/pmegpeportal/pmegphome/index.jsp and take the printout of the application and submit the same to respective offices along with the detailed project report and other required documents.
Who can apply for PMEGP?
Any individual above 18 years of age can apply. The beneficiary must have passed at least VIII standard for projects costing above Rs.10 lakh in the manufacturing sector, and above Rs.5 lakh in the business/service sector. Only new projects are considered for sanction under PMEGP. SHGs (including those belonging to BPL, provided that they have not availed benefits under any others cheme), Institutions registered under Societies Registration Act, 1860; Production Co-operative Societies, and Charitable Trusts are also eligible.
What is maximum project cost allowed under PMEGP?
Rs.25.00 lakhs for manufacturing unit and Rs.10.00 lakhs for Service Unit
Whether cost of land includes in the project cost?
No. Cost of land does not includes in the project cost.
What is the component of project cost?
Capital Expenditure Loan, one cycle of working capital and 10% of project cost as own contribution in case of General category and 5% of project cost in case of weaker section.
Who are the beneficiaries?
Individual Entrepreneurs, Institutions, Co-operative Societies, Self Help Groups, Trusts
Which are the financial agencies?
27 Public Sector Banks ,Regional Rural Banks(RRB), Co-operative Banks and Private Scheduled Commercial Banks approved by respective State Task Force Committee.
How the capital expenditure loan / Cash Credit Limit be utilized?
Working Capital at least once should touch 100% limit of Cash Credit within three years of Lock-in period of M.M. and not less than 75% of the utilization of the sanction limit on an average.
Where the beneficiary has to submit his/her application/ Project?
Beneficiary can submit his/her application/Project online on kvic website www.kvic.org.in / kviconline.gov.in/pmegpeportal. List of office addresses of KVIC/KVIB/DIC are available at our website.
What is Village Industry?
Any Village Industry (except those mentioned in the negative list) located in the Rural Area which produces any goods or renders any service with or without the use of power and in which the fixed capital investment for head of a full time artisans or worker does not exceed Rs.1.00 lakh in plain area and Rs.1.50 lakhs in hilly areas and for A & N Island and Laxdeep Rs.4.5 Lakhs.
What is rural area?
Any area classified as Village as per the revenue record of the State, irrespective of the population. It also includes an area even if classified as town provided its population does not exceed 20000
What is Age limit?
Any adult beneficiary above 18 years is eligible for financing under PMEGP.
What are the main criteria of project?
It should fulfill the criteria of rural area (for Rural Area project), per capita investment, own contribution, negative list and the unit should be new one