Prime Minister’s Employment Generation Programme (PMEGP) is a credit linked subsidy programme administered by the Ministry of Micro, Small and Medium Enterprises, Government of India. Khadi & Village Industries Commission (KVIC) is the nodal agency at the national level for implementing of the scheme. At state level the scheme is implemented through KVIC, KVIB and District Industries center.
PMEGP being implemented by this aims at generating self-employment opportunities through establishment of micro enterprises in the non-farm sector by helping traditional artisans and unemployed youth.
Activities that can be taken up under PMEGP are as follows.
- Agro Based & Food Processing Industry (ABFPI)
- Forest Based Industry (FBI)
- Mineral Based Industry (MBI)
- Polymer & Chemical Based Industry (PCBI)
- Rural Engineering & Bio Technology Industry (REBTI)
- Handmade Paper & Fiber Industry (HMPFI) and Service & Textiles
The maximum cost of the projects is Rs. 25 lakh in the manufacturing sector and Rs. 10 lakh in the service sector. Project’s cost includes Capital Expenditure and one cycle of working capital. Cost of the land is not included in the project cost. Only one person from a family is eligible for obtaining financial assistance under this scheme.
Eligibility:
- Any individual, above 18 years of age
- For setting up of projects costing above Rs.10 lakh in the Manufacturing Sector and above Rs. 5 lakh in the business /Service Sector, The beneficiaries should have passed at least VIII standard educational qualification.
- 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
- Charitable Trusts
Benefits:
General category beneficiaries can avail of margin money (MM) subsidy of 25% of the project cost in rural areas and 15% in urban areas, personal contribution is 10%.
For beneficiaries belonging to special categories such as SC/ST/OBC/Minorities/Women, ex-serviceman physically handicapped, NER, Hill and Border areas etc. the MM subsidy is 35% in rural areas and 25% in urban areas, personal contribution is 5%.
| Categories of beneficiaries under PMEGP | Beneficiary’s contribution (of project cost)
|
Rate of subsidy
(of project cost ) |
|
| Location of project / unit
|
Urban | Rural | |
| General Category
|
10% | 15% | 25% |
| Special (including SC/ST etc.)
|
05% | 25% | 35% |
MM (Subsidy) released in favour of the borrower is kept in the Term Deposit Receipt (TDR) of three years at Financing branch in the name of the beneficiary/institution. This is adjusted in the loan account after physical verification of the units after three years.
Entrepreneurs Development Programme (EDP) training is mandatory for the PMEGP beneficiaries. After sanction of the loan and before disbursement, each beneficiary has to undergo 1-2 weeks EDP programme being conduct by KVIC through RSETI/ RUDSETI training centers and other training centers run by central or state government
How to Apply:
Beneficiaries can apply online in a simplified single page online form. The form is Available at http://www.kviconline.gov.in /pmegp / pmegponlineapp
Revealing the plans of his Ministry for financial year 2016-17, Union MSME Minister Kalraj Mishra in a Budget 2016 press conference held in New Delhi on March 08, 2016 said that Rs. 1,139 crore has been allocated under the Prime Minister’s Employment Generation Programme (PMEGP). This is expected to generate employment for more than 4,25,000 people.The utililisation of the allocation under PMEGP will assist 55 thousand projects with Margin Money.
