Prime Minister's Employment Generation Programme (PMEGP)

The Prime Minister's Employment Generation Programme (PMEGP) is a credit-linked subsidy scheme by the Ministry of MSME. It aims to generate employment by establishing micro-enterprises in rural and urban areas, merging previous schemes like PMRY and REGP.

What is the PMEGP?

PMEGP is a government initiative providing financial assistance through margin money subsidies and bank loans to individuals and groups for setting up new micro-enterprises or upgrading existing ones in the non-farm sector.

Key Objectives of the Scheme

· Employment Generation: To create self-employment opportunities in rural and urban areas.

· Artisan Support: To bring together traditional artisans and unemployed youth.

· Migration Reduction: To reduce rural youth migration to urban areas.

· Income Enhancement: To increase the wage-earning capacity of workers and artisans.

Eligibility Criteria for the Scheme

· Age: Any individual above 18 years.

· Education: For projects above ₹10 lakh in manufacturing and ₹5 lakh in service, at least VIII standard pass.

· New Projects: Assistance is only for new projects sanctioned under PMEGP.

· Existing Units (Upgradation): Units must have successfully adjusted PMEGP subsidy, repaid the first loan, and be profit-making.

· Family Limit: Only one person per family is eligible.

Benefits of the Scheme

· Margin Money Subsidy:

o General Category: 15% (Urban), 25% (Rural).

o Special Category (SC/ST/OBC/Women/etc.): 25% (Urban), 35% (Rural).

o Upgradation: 15% (20% in NER and Hill States).

· Loan Assistance: Banks provide the balance loan amount.

· Project Cost Limits:

o Manufacturing: ₹50 lakh (new), ₹1 crore (upgradation).

o Service/Business: ₹20 lakh (new), ₹25 lakh (upgradation).

· Backward and Forward Linkages: Support for training, workshops, and marketing.

How to Apply for the Scheme?

1. Online:

a. Visit the KVIC website: https://www.kviconline.gov.in/pmegpeportal/.

b. Apply for new or existing units through the online portal.

2. Offline:

a. Download the application form.

b. Submit the filled form to KVIC/KVIB/DIC/Coir Board offices.

Documents Required for Application

· Caste Certificate.

· Special Category Certificate (if applicable).

· Rural Area Certificate.

· Project Report.

· Education/EDP/Skill Development Training Certificate.

· Any other applicable document.

FAQs About the Scheme

1. Who is eligible?
Individuals above 18 years, meeting educational and project criteria.

2. What is the subsidy amount?
Varies based on category and location, up to 35%.

3. How do I apply?
Online through the KVIC portal or offline at designated offices.

4. Are existing units eligible?
Yes, for upgradation, if they meet specific criteria.

5. What are the project cost limits?
₹50 lakh/₹1 crore for manufacturing, ₹20 lakh/₹25 lakh for service.

Why Should You Apply for the Scheme?

PMEGP provides a valuable opportunity for individuals to start their own micro-enterprises, creating employment and enhancing their income. The scheme's subsidies and loan assistance make it easier to access the necessary capital and support.

Conclusion

The PMEGP is a significant initiative that promotes self-employment and entrepreneurship in India. By providing financial assistance and support, the scheme contributes to economic growth and the creation of sustainable livelihoods.