Prime Minister Employment Generation Programme (PMEGP): Objectives, How to Apply, Who can Apply and Key Facts

Prime Minister's Employment Generation Programme (PMEGP): It is administered by the Ministry of Micro, Small and Medium Enterprises (MSME). 

About Prime Minister's Employment Generation Programme (PMEGP)

It is a major credit-linked subsidy programme being implemented by the Ministry of MSME since 2008-09 which aimed at generating self-employment opportunities through the establishment of micro-enterprises in the non-farm sector by providing help to the traditional artisans and unemployed youth in rural as well as urban areas. The scheme was launched by the merging of two schemes namely Prime Minister’s Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP). 

Objectives of Prime Minister's Employment Generation Programme (PMEGP)

- In rural as well as urban areas, to create employment opportunities in the country by setting up new self-employment ventures or projects or micro-enterprises.

- To provide self-employment opportunities to widely spread traditional artisans or rural and urban unemployed youth by bringing them together to the extent possible, at their place.

- In the country, to provide continuous and sustainable employment to a large segment of traditional and prospective artisans and rural and urban unemployed youth. This is done to help the arrest migration of rural youth to urban areas. 

- To increase the wage-earning capacity of artisans so that they can contribute to increasing the growth rate of rural and urban employment.

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Implementation of the scheme

At the national level, the scheme is implemented by Khadi and Village Industries Commission (KVIC) functioning as the nodal agency. 

At the state level, the scheme is implemented through the channel of State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs), and banks. 

The subsidy has to be given through the designated banks for eventual disbursal to the beneficiaries or entrepreneurs directly into their bank accounts.

Nature of assistance of the scheme

- In the manufacturing sector, the maximum cost of the project or unit admissible is ₹25 lakhs and in the business or service sector, it is ₹ 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.)

- Banks provide the balance amount of the total project cost in the form of term loans and working capital. 

Eligibility Criteria or who can apply?

- Individuals above the age of 18 years can avail of the benefit of the scheme. The beneficiary individual must be at least 8th standard pass for setting up for projects costing above Rs 10 lakh in the manufacturing sector and above Rs 5 lakh in the business or service sector.

- Under PMEGP, only new projects are considered for sanction.

- Self Help Groups including those belonging to BPL as long as 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.

Who are not eligible?

The PMEGP loan is merely given to new units. Already established or existing units under PMRY, REGP, or any other government or state government scheme are not eligible. Also, the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are not eligible.

How to apply for the PMEGP scheme?

Advertisements are given at the local level by the State or Divisional Directors of KVIC in consultation with KVIB and Director of Industries of respective states for DICs through print and electronic media. Applications are invited along with the proposals of projects from prospective beneficiaries for establishing the enterprise or start of the service units under PMEGP. 

Online also the beneficiaries can submit their application. Then, they can take out the print out of the application and submit it to the respective offices along with the detailed project report and other required documents.

Therefore now you may have come to know about the Prime Minister's Employment Generation Programme (PMEGP), its objectives, how to apply, and its nature of assistance.

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_{Source: msme, pib}