Prime Minister Employment Generation Programme (PMEGP)

What is Prime Minister Employment generation Programme (PMEGP)?

Prime Minister Employment Generation Programme (PMEGP)- The Scheme is implemented by Khadi and Village Industries Commission (KVIC), as the nodal agency at the National level. At the State level, the Scheme is implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs) and District Industries Centres (DICs) and banks. The Government subsidy under the Scheme is routed by KVIC through the identified Banks for eventual distribution to the beneficiaries / entrepreneurs in their Bank accounts.

PM Employment Generation Program: Pass class eight, self-employed will get 10 lakh

PM Employment Generation Program – If you are unemployed and want to do self employment instead of job then there is good news for you. You will be given financial assistance of up to 10 lakhs through the District Industries Center, as well as a grant of 15 to 25 percent margin money in the financial help received under the Prime Minister’s Employment Generation Program. For this it is necessary to pass class 8. Interested persons can apply online through the website www.pmegpeportal to set up a project of industry and service sector under the scheme.

Who can apply for PM Employment Generation Program ?

Any individual, above 18 years of age. At least VIII standard pass for projects costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business / service sector. Only new projects are considered for sanction under PMEGP. Self Help Groups (including those belonging to BPL provided that they have not availed benefits under any other Scheme), Institutions registered under Societies Registration Act,1860; Production Co-operative Societies, and Charitable Trusts are also eligible.

Existing Units Prime Ministers Employment Generation Programme (under PMRY, REGP or any other scheme of Government of India or State Government) and the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are NOT eligible.

Class VIII pass all unemployed above 18 years of age can apply. A maximum of 10 lakh can be planned for setting up a project in the industrial sector. Educated youth of every district can apply under the scheme through the District Industries and Enterprise Promotion Center for the purpose of setting up self-employment to unemployed youth / girls by the Department of Micro, Small and Medium Enterprises and Export Promotion.

What is the Objectives of PM Employment Generation Program (PMEGP) ?

(i) To generate employment opportunities in rural as well as urban areas of the country through setting up of new self-employment ventures/projects/micro enterprises.
(ii) To bring together widely dispersed traditional artisans/ rural and urban unemployed youth and give them self-employment opportunities to the extent possible, at their place.
(iii) To provide continuous and sustainable employment to a large segment of traditional and prospective artisans and rural and urban unemployed youth in the country, so as to help arrest migration of rural youth to urban areas.
(iv) To increase the wage earning capacity of artisans and contribute to increase in the growth rate of rural and urban employment.

What are The Benefits of PM Employment Generation Program (PMEGP) ?

• The maximum cost of the project/unit admissible under manufacturing sector is Rs.25 lakh and under business/service sector is Rs.10 lakh.
• Per capita investment should not exceed ₹ 1.00 lakh in plain areas and ₹ 1.50 lakhs in Hilly areas.
• Own contribution 5% to 10% of project cost.
• General category beneficiaries can avail of margin money subsidy of 25 % of the project cost in rural areas and 15% in urban areas. For beneficiaries belonging to special categories such as scheduled caste/scheduled tribe /women the margin money subsidy is 35% in rural areas and 25% in urban areas.

Get Information online for PM Employment Generation Program –

Self-employed youth can get detailed information on the website www.diupmsme.upsdc.gov.in/ udyam sarthi aap and www.pmegp e portal. Online application can be made till 16 August.

Information can also be obtained from the phone number 0522-2971262 of District Industries Center of Lucknow.

Quantum of Margin Money Subsidy is given as follows:

Categories of beneficiaries under PMEGP	Beneficiary’s own contribution (of project cost)	Rate of Subsidy
Area (location of project /unit)		Urban	Rural
General Category	10%	15%	25%
Special (including SC/ ST/ OBC/ Minorities/ Women, Physically handicapped, Ex-Servicemen, NER, Hill and Border areas etc.	05%	25%	35%

Take care of These things When You Are Applying for PM Employment Generation Program

Applicant’s age should be at least 18 years.
It is mandatory for the applicant to pass class eight for a project of five lakhs for the scheme of service sector and for a project of more than 10 lakhs for the establishment of an industry.
Applications will be accepted online only.

Grants for urban areas (PMEGP )

15% for general category candidates.
For Scheduled Castes / Tribes, Other Backward Classes, Minorities, Women, Ex-Servicemen, Disabled, 25 percent margin money subsidy will be available.

Grants for rural areas (PMEGP )

25% for general category candidates
For Scheduled Castes / Tribes, Other Backward Classes, Minorities, Women, Ex-Servicemen, Handicapped, 35 percent margin money subsidy will be available for rural areas.
Benefit of interest subvention up to a maximum of 13 percent is also provided to the beneficiaries under Deendayal Gramodyog Rozgar Yojana. Self-employment from 10 to 25 lakhs can be planned.

Summary Prime Minister’s Employment Generation Programme (PMEGP)

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Frequently asked questions on PMEGP scheme –

Q. What is maximum project cost allowed under PMEGP?

A. Rs.25.00 lakhs for manufacturing unit and Rs.10.00 lakhs for Service Unit

Q. Whether cost of land includes in the project cost?

A. No.

Q. How much Margin Money (Govt. Subsidy) admissible?

Categories of beneficiaries under PMEGP	Rate of (Margin Money) Subsidy (of project cost)
Area (location of project/unit)	Urban	Rural
General Category	15%	25%
Special (including SC / ST / OBC /Minorities/Women, Ex-servicemen, Physically handicapped, NER, Hill and Border areas etc.	25%	35%

Q. What is the component of project cost?

A. Capital Expenditure Loan, one cycle of working capital and 10% of project cost as own contribution in case of General category and 5% of project cost in case of weaker section.

Q. Who are the beneficiaries?

A. Individual Entrepreneurs, Institutions, Co-operative Societies, Self Help Groups, Trusts

Q. Which are the financial agencies?

A. 27 Public Sector Banks ,Regional Rural Banks(RRB), Co-operative Banks and Private Scheduled Commercial Banks approved by respective State Task Force Committee.

Q. How the capital expenditure loan / Cash Credit Limit be utilized ?

A. Working Capital at least once should touch 100% limit of Cash Credit within three years of Lock-in period of M.M. and not less than 75% of the utilization of the sanction limit on an average.

Q. Where the beneficiary has to submit his/her application/ Project?

A- Beneficiary can submit his/her application/Project online on kvic website www.kvic.org.in / kviconline.gov.in/pmegpeportal. List of office addresses of KVIC/KVIB/DIC are available at our website.

Q. What is Village Industry ?

A. Any Village Industry (except those mentioned in the negative list) located in the Rural Area which produces any goods or renders any service with or without the use of power and in which the fixed capital investment for head of a full time artisans or worker does not exceed Rs.1.00 lakh in plain area and Rs.1.50 lakhs in hilly areas and for A & N Island and Laxdeep Rs.4.5 Lakhs.

Q. What is rural area ?

A. Any area classified as Village as per the revenue record of the State, irrespective of the population. It also includes an area even if classified as town provided its population does not exceed 20000

Q. What is Age limit ?

A. Any adult beneficiary above 18 years is eligible for financing under PMEGP.

Q. What are the main criteria of project?

A. It should fulfill the criteria of rural area (for Rural Area project), per capita investment, own contribution, negative list and the unit should be new one

Q. Whether EDP training is compulsory?

A. Before MM Claim through PMEGP eportal ,EDP training of 10 working days for Project cost More than 5.00 lakhs and 6 Working days training for upto Project Cost 5.00 lakhs to the beneficiary is compulsory

Q. Whether collateral security is mandatory?

A. As per RBI guidelines the project costing upto Rs.10.00 lakhs under PMEGP loans are free from collateral security. The CGTSME provided collateral guarantee for the project beyond Rs.5.00 lakhs and upto Rs.25.00 lakhs under PMEGP scheme.

Q. What is the helpline for the beneficiary in preparation of the project ?

A. 30 model projects uploaded on kvic.org.in website

Q. Whether an entrepreneur can submit more then one project ?

A- No

Q. What is the definition of family ?

A- Husband and spouse.

Q. Whether Unit can be set up in urban Area.

A- Yes through DIC only.

Q. Whether existing unit can avail funds under PMEGP ?

A – No, only new unit .

Q. Whether model projects are available with KVIC.

A – yes, Industry wise model projects are available at kvic.org.in

Q: where training centers are available to undertake EDP?

A – List of EDP training centers including 582 training center of RSETI/RUDSETIS are available at our websitekvic.org.in

Q. What is lock in period for Govt. Subsidy?

A- 3 years.

Q:- Can project be financed jointly from two different sources (Bank/Financial Institutions)?

A – No, it is not eligible.

Q:- How much own contribution to be deposited?

Categories of beneficiaries under PMEGP	Beneficiary’s contribution (of project cost)
General Category	10%
Special (including SC / ST / OBC /Minorities/Women, Ex-servicemen, Physically handicapped, NER, Hill and Border areas etc.	05%