With the aim of creating new employment opportunities in rural and urban non-agricultural sectors, the Government of India announced the Prime Minister’s Employment Generation Program (PMEGP) in 2008.
The PMEGP Scheme merges two operational schemes namely Pradhan Mantri Rozgar Yojana and Pradan Mantri Employment Generation Programme.
The PMEGP scheme is administered by the Ministry of Micro, Small and Medium Enterprises, while its implementation is carried out by the Khadi and Village Industries Commission (KVIC). In the above mentioned area, the government provides subsidy (PMEGP subsidy) to set up small enterprises.
PMEGP scheme benefits?
New units, Maximum project cost for setting up new units is Rs 50 lakh and Rs 20 lakh for manufacturing and trading or service sector.
The remaining balance of the project cost will be provided by the banks apart from the applicant’s contribution. If the project cost exceeds the threshold limit for manufacturing and trade or private sector, the balance cost will be provided by the bank along with any government subsidy.
There is 15% and 25% subsidy for urban and rural general applicants respectively. Also 25% and 35% subsidy will be given to special category urban and rural applicants respectively.
What is the eligibility to avail this scheme (PMEGP Eligibility)
Any individual applicant must be above 18 years of age.
Self-help groups, organizations registered under the Societies Registration Act, producer cooperatives and charitable trusts are also eligible.
Only one person from each family is eligible for the scheme to set up the scheme.
For setting up new projects under the scheme, there is no limit on the assistance available.
10 lakh in manufacturing sector and above Rs 5 lakh in trade or service sector, applicants must have completed 8th standard.
Only new projects sanctioned under PMEGP are eligible for assistance.
Existing units receiving assistance or subsidy under PMRY, REGP or any other government scheme are not eligible.
Capital expenditure projects are only eligible for financing under the scheme.
Cost of land should be excluded from project cost.
Cost of ready shed or long lease or hire work shed / workshop for a maximum period of 3 years can be included in the scheme.
PMEGP documents (Required documents)
- Aadhaar card
- Passport size photo
- Caste certificate Special Category Certificate (if applicable)
- Rural area certificate Project report Certificate of Education/EDP/Skill Development Training
- PAN card
- Address proof Other documents as required.
How to apply for PMEGP scheme
Interested and eligible beneficiary can apply for PMEGP scheme online through KVIC website and offline by sending filled application to respective
MSME DI. PMEGP, contact details PMEGP Contact Details: 022-26711017 ykbaramatikar.kvic@gov.in Divisional Office Hubli : 0836-2282882, 9741482882
kvicdohubli@rediffmail.com State Office Bangalore080-25665885