PM Employment Generation Programme (PMEGP)

✦Key Features

• Subsidy: 15% urban/25% rural for general category; 25%/35% for SC/ST/women/minorities/physically challenged
• Project cost: up to ₹50 lakh (manufacturing) and ₹20 lakh (service/trading)
• 9.9 lakh+ micro-enterprises established; 79.4 lakh employment generated since 2008
• Implemented by KVIC (Khadi and Village Industries Commission), state KVIBs, state DIC
• PMEGP 2.0: enhanced from ₹25 lakh to ₹50 lakh in Budget 2023-24
• No income ceiling; applicant must be 18+ years; 8th pass for manufacturing
• One applicant: one unit (no second PMEGP loan for same beneficiary)

✓Eligibility Criteria

• Any individual above 18 years of age is eligible to apply for setting up micro-enterprises.
• For projects costing above Rs. 10 lakh in manufacturing, the applicant must have at least passed VIII standard.
• Self Help Groups, Co-operative Societies, and Charitable Trusts are also eligible beneficiaries.
• The scheme is only applicable to new units and not for existing units already receiving government subsidy.

★Benefits

• Provision of margin money subsidy ranging from 15% to 35% based on the applicant category and location.
• Access to bank-funded credit for project costs up to Rs. 50 lakhs for manufacturing units.
• Mandatory Entrepreneurship Development Programme (EDP) training to ensure business sustainability.
• Provision of handholding support for marketing and quality control of products.

▶Application Process

• Submit the application online via the PMEGP e-Portal managed by KVIC.
• Prepare and upload a Detailed Project Report (DPR) specifying the technical and financial viability.
• The application is scrutinized by the District Level Task Force Committee (DLTFC).
• Upon approval, the application is forwarded to banks for loan sanction and disbursement.

₹ Budget Allocation

2132

Funding Ratio (Centre:State): Subsidy: General (15% Urban, 25% Rural); Special (25% Urban, 35% Rural)

Historical Context

Launched in 2008 by merging Prime Minister's Rozgar Yojana (PMRY) and Rural Employment Generation Programme (REGP).