PRIME MINISTER’S EMPLOYMENT GENERATION PROGRAMME (PMEGP)

  • Scheme:
    • Govt. of India introduced the scheme in August’2008 by merging PMRY and REGP. The scheme is being implemented by KVIC at nodal level and KVIB & DIC.at State Level.
    • PMEGP is a central sector scheme being administered by the Ministry of Micro, Small & Medium Enterprises (MoMSME).
  • Objectives of the Scheme:
    • • 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.
    • • 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.
    • • 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.
    • • To increase the wage-earning capacity of artisans and contribute to increase in the growth rate of rural and urban employment
  • Eligibility:
    • • Any individual, above 18 years of age.
    • • There will be no income ceiling for assistance for setting up projects under PMEGP
    • • 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.
    • • Assistance under the scheme is available only for new projects sanctioned specially under the PMEGP.
    • • The maximum cost of the project/unit admissible under manufacturing sector is Rs.50 lacs. The maximum cost of the project/unit admissible under business/service sector is Rs.20 lacs. (For upgradation of project under manufacturing Sector is Rs.1.00 crores).
    • • 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.
    • • Projects without Capital expenditure are not eligible for Financing under the scheme.
    • • Cost of the land should not be included in the Project cost. Cost of the ready built as well as long lease or rental Work-shed/Workshop can be included in the project cost subject to restricting such cost of ready built as well as long lease or rental workshed/workshop to be included in the project cost calculated for a maximum period of 3 years only.
    • • PMEGP is applicable to all new viable micro enterprises, including Village Industries projects except activities prohibited by local Government/ Authorities keeping in view environment or socio-economic factors and activities indicated in the negative list of the guidelines.
    • • Retails outlets/business selling Khadi Products, Village Industry projects procured from Khadi and Village Industry Institutions certified by KVIC and products manufactured by PMEGP/SFURTI units only may be permitted under PMEGP (across the country)
    • • Retail outlets backed by manufacturing (including processing)/service facilities may be permitted (across the country).
    • • Only one person from one family is eligible for obtaining financial assistance for setting up of projects under PMEGP. The ‘family’ includes self and spouse. Enhanced due diligence of the borrower to be ensured in cases where a family member other than the spouse engages in the same line of activity, more so if it involves trading activity. The identified beneficiaries must be subject to enhanced due diligence to ensure that genuine applicants are granted loans.
  • Rate of Interest
  • Processing Charge/Upfront Fee
  • Please Visit https://kviconline.gov.in/pmegpeportal/pmegphome/index.jsp or nearest SGB Branch for more scheme related details / information.