Prime Minister’s Employment Generation Programme:
- PMEGP is a central sector scheme administered by the Ministry of Micro, Small and Medium Enterprises (MoMSME).
- Launched in 2008-09, it is a credit-linked subsidy scheme which promotes self-employment through setting up of micro-enterprises, where subsidy up to 35% is provided by the Government through Ministry of MSME for loans up to ₹25 lakhs in manufacturing and ₹10 lakhs in the service sector.
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.
Implementation:
- National Level- Khadi and Village Industries Commission (KVIC) as the nodal agency.
- State Level- State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs) and banks.
Eligibility:
- Any individual above 18 years of age, Self Help Groups, Institutions registered under Societies Registration Act 1860, Production Co-operative Societies and Charitable Trusts are eligible.
- Existing Units and the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are not eligible.
- Only new projects are considered for sanction under PMEGP.
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