Prime Minister's Employment Generation Programme (PMEGP)

Government of India has introduced 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 will be a central sector scheme to be administered by the Ministry of Micro, Small and Medium Enterprises (MoMSME). The Scheme will be implemented by Khadi and Village Industries Commission (KVIC), a statutory organization under the administrative control of the Ministry of MSME as the single nodal agency at the National level. At the State level, the Scheme will be implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs) and District Industries Centres (DICs) and banks. 

Objectives:

 (i) To generate employment opportunities in rural as well as urban areas of the country through setting up of new self-employment ventures/projects/micro enterprises.

(ii) To bring together widely dispersed traditional artisans/ rural and urban unemployed youth and give them self-employment opportunities to the extent possible, at their place.

(iii) To provide continuous and sustainable employment to a large segment of traditional and prospective artisans and rural and urban unemployed youth in the country, so as to help arrest migration of rural youth to urban areas.

 (iv) To increase the wage earning capacity of artisans and contribute to increase in the growth rate of rural and urban employment.

Implementing agencies & Area:

KVIC and KVIBs in rural areas of the country and DICs in both rural and urban areas of the country. In Puducherry the scheme will be implemented by District Industries Centre in Urban Areas i.e. Municipal Areas and by Puducherry Khadi & Village Industries Board (PKVIB) in Rural Areas i.e. Commune Panchayat Areas

Maximum Project size:

Rs.50.00 lakhs for manufacturing sector and Rs.20.00 lakhs for service sector.

Quantum and Nature of Financial Assistance

Levels of funding under PMEGP

Note:

(1) The maximum cost of the project/unit admissible under manufacturing sector is Rs. 25 lakh.

(2) The maximum cost of the project/unit admissible under business/service sector is Rs. 10 lakh.

(3) The balance amount of the total project cost will be provided by Banks as term loanloan

Eligibility Conditions of Beneficiaries: 

(i) Any individual, above 18 years of age

(ii) There will be no income ceiling for assistance for setting up projects under PMEGP.

(iii) For setting up of project costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business /service sector, the beneficiaries should possess at least VIII standard pass educational qualification. 

(iv) Assistance under the Scheme is available only for new projects sanctioned specifically under the PMEGP.

(v) Self Help Groups (including those belo eligible for assistance under PMEGP.

(vi) Institutions registered under Societies Registration Act,1860;

(vii) Production Co-oper PMRY, REGP or any other scheme of Government of India or State Government) and the units that havnt are not eligible.

Other eligibility conditions:

(i) A certified copy of the caste/community certificate or releved to be produced by the beneficiary to the concerned branch of the Banks along with the Margin Money (subsidy) Claim.

(ii) A certisubsidy) Claim, wherever necessary.

(iii) Project cost will include Capital Expenditure and one cyclProjects costing more than Rs.5 lakh, which do not require working capital, need clearance from the Regional h such certified copy of approval from Regional Office or Controller, as the case may be.