Prime Minister's Employment Generation Programme (PMEGP)

प्रधानमंत्री रोजगार सृजन कार्यक्रम

What is the PMEGP Scheme?

Prime Minister’s Employment Generation Programme (PMEGP) is a major credit-linked subsidy scheme launched by merging two schemes namely Prime Minister’s Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP) for generating employment opportunities by establishing micro-enterprises in urban and rural areas in the non-farm sector.

The scheme was launched in 2008.
It is a central sector scheme administered by the Ministry of Micro, Small and Medium Enterprises (MoMSME).
The programme is being implemented by the Khadi and Village Industries Commission (KVIC) at the national level. It is the single nodal agency for the implementation of the programme.
It allows entrepreneurs to set up factories or units.
The Scheme is being implemented through banks, District Industries Centers (DICs), State KVIC Directorates and State Khadi and Village Industries Boards (KVIBs) at the state level.
Individuals above the age of 18 years, Self Help Groups (SHGs), Cooperative Societies involved in the production, and institutions that are registered under the Societies Registration Act of 1860 are eligible for benefits under this programme.
Assistance is provided under the scheme only to the new units, units that have availed government subsidies under either the state or the central government schemes; existing units are not eligible for subsidy under PMEGP.
Physically disabled, OBC, SC/STs, women, northeastern region (NER) applicants in rural areas are eligible for a higher rate of subsidy.

Objectives of PMEGP

Generation of sustainable and continuous employment opportunities in both rural as well as urban areas in the country.
Provision of sustainable and continuous employment to a wide segment of prospective and traditional artisans, unemployed youth in rural and urban areas by establishing micro-enterprises for employment generation.
Smooth flow of credit to the micro sector by facilitating the participation of financial institutions.

Features of the PMEGP Scheme

Any industry including coir based projects (excluding those mentioned in the negative list) can take advantage of this scheme
The per capita investment under the scheme should not exceed Rs 1 lakh in plain areas and Rs 1.5 lakh in hilly areas.Assistance under the PMEGP is only available to new units that are to be established
There is no income ceiling for setting up projects
Existing units or units that are already availing any government subsidy (State or Central) are ineligible
Any industry including coir based projects (excluding those mentioned in the negative list) can take advantage of this scheme

Eligibility:

Any individual, above 18 years of age.
Only new projects/units are considered for sanction of loans.
Self-help groups that have not availed benefits under any other public scheme, societies, production co-operative societies, and charitable trusts.

Government Subsidy:

Rural Areas: 25% for general category and 35% for special category, which includes SC/ST/OBC/Minorities, NER, Hill and Border Areas, transgender, physically disabled, north eastern region, aspirational and border district applicants.
Urban Areas: 15% for general category and 25% for special category.

You Can Also Read This Policies: Bihar Agri Investment Promotion Policy, PMFME Scheme, Startup Policy 2022, Industrial Policy 2016

Role of Banks:

Loans are provided by Public Sector Banks, Regional Rural Banks, Co-operative Banks and Private Scheduled Commercial Banks approved by respective State Task Force Committee.

Significance:

The scheme will create sustainable estimated employment opportunities for about 40 lakh persons in five financial years.
It facilitates generation of employment opportunities for unemployed youth across the country by assisting setting up of micro-enterprises in the non-farm sector.
Besides providing financial support, the government needs to conduct an intensive training programme to help potential entrepreneurs focus on the right market and right products.
Government has to focus on the micro segment with better technology and marketing support.

FAQs

1. What is the Prime Minister Employment Generation?

Prime Minister’s Employment Generation Programme (PMEGP) is a major credit-linked subsidy scheme launched by merging two schemes namely:

Prime Minister’s Rojgar Yojana (PMRY) and
Rural Employment Generation Programme (REGP)

PMEGP will be generating employment opportunities by establishing micro-enterprises in urban and rural areas in the non-farm sector.

2. Who is eligible for Prime Minister employment Generation?

Any individual, above 18 years of age.
The beneficiaries should have passed at least VIII standard, for setting up of projects costing above Rs.10 lakhs in the manufacturing sector and above Rs. 5 lakhs in the business/service sector.

3. How do I get a Pmegp subsidy?

Under the PMEGP project, beneficiaries are required to pay a minimum portion for the project cost and avail subsidy on loan taken from the banks linked with the scheme. The subsidy is decided based on the category and area to which the applicant belongs.

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