PMEGP (Prime Minister's Employment Generation Programme)

PMEGP (Prime Minister's Employment Generation Programme) is a credit-linked subsidy scheme launched by the Indian government to promote self-employment opportunities and generate sustainable employment in rural and urban areas of India. The scheme is implemented by the Khadi and Village Industries Commission (KVIC), in collaboration with various financial institutions. Here are the key details about PMEGP:

Objectives:

The primary objectives of NSIC are as follows:

  • Objective: The primary objective of PMEGP is to provide financial support and assistance to individuals and groups for setting up new micro-enterprises or expanding existing ones, thereby creating employment opportunities.
  • Eligibility: PMEGP is open to all Indian citizens above the age of 18 years, including individuals, self-help groups, institutions, and charitable trusts. The scheme specifically encourages participation from socially and economically backward sections, including SC/ST, OBC, women, minorities, ex-servicemen, and differently-abled individuals.
  • Subsidy and Loan: PMEGP offers a subsidy on the project cost in the form of a margin money subsidy (MMS) ranging from 15% to 35% of the project cost in rural areas and 25% to 35% in urban areas. The remaining project cost can be financed through a bank loan, which is also facilitated under the scheme.
  • Project Cost: The maximum project cost allowed under PMEGP is Rs. 25 lakhs for manufacturing enterprises and Rs. 10 lakhs for service enterprises. The cost includes both capital expenditure (machinery, equipment, etc.) and working capital requirements.
  • Selection Process: The selection of beneficiaries under PMEGP is done through a district-level Task Force Committee, which evaluates and approves the project proposals based on the viability, market potential, and employment generation potential.
  • Application Process: Interested individuals or groups can apply for PMEGP through the online portal (www.kviconline.gov.in/pmegpeportal) or by submitting physical application forms to the respective District Industry Centers (DICs) or KVIC offices. The application should include a detailed project report, along with other necessary documents as specified by the KVIC.
  • Training and Orientation: PMEGP also emphasizes entrepreneurship development and provides training and orientation programs to the beneficiaries to enhance their skills and business management capabilities.
  • Repayment and Monitoring: The bank loan provided under PMEGP is repayable over a specific period with an interest rate determined by the lending institution. The progress and performance of the project are monitored by the KVIC and the lending institutions on an ongoing basis.

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