Launched in August 2008, the Prime Minister’s Employment Generation Programme (PMEGP) is a credit-linked subsidy scheme under the Ministry of Micro, Small, and Medium Enterprises (MSME). PMEGP aims to create employment opportunities by establishing micro-enterprises in both rural and urban areas. This scheme merges two earlier initiatives—Prime Minister’s Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP)—and focuses on generating sustainable self-employment at a local level.
Benefits
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Margin Money Subsidy:
- Financial assistance to set up new enterprises and upgrade existing units.
- Subsidy rates depend on the location (urban/rural) and category of beneficiary (general or special).
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Backward and Forward Linkages:
- Funds allocated for awareness campaigns, training programs, exhibitions, and IT infrastructure development.
- Support for setting up Entrepreneurship Facilitation Centres and Centers of Excellence.
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Upgradation Support:
- Financial assistance available for existing PMEGP, REGP, or MUDRA units to modernize or expand operations.
Eligibility
For New Enterprises:
- Any individual above 18 years of age.
- No income ceiling for assistance.
- For projects costing over ₹10 lakh in manufacturing or ₹5 lakh in service/business, the applicant must have at least an eighth-grade education.
- Units that have already availed of subsidies under other government schemes are not eligible.
For Upgrading Existing Units:
- Must have successfully adjusted the first PMEGP subsidy after three years.
- The unit should have a good profit record and show potential for further growth.
Application Process
Online (New Units):
- Register on the PMEGP portal.
- Fill out the online form and upload the required documents.
- Submit the application for review.
Online (Existing Units – 2nd Loan):
- Log in to the second loan portal.
- Complete the form and attach necessary documents.
- Submit for consideration.
Offline:
Applications can also be submitted through the District Industries Centre or designated State offices of KVIC.
Documents Required
- Caste certificate (if applicable)
- Special category certificate
- Rural area certificate
- Project report
- Education and training certificates
- Bank details
- Any other applicable documents
Frequently Asked Questions
Q: What is the maximum project cost allowed under PMEGP?
A: The maximum cost for manufacturing units is ₹50 lakh; for service/business units, it is ₹20 lakh.
Q: How much subsidy can be availed?
A: Subsidies range from 15% to 35% of the project cost, depending on the beneficiary’s category and location.
Q: Can I apply online for PMEGP?
A: Yes, applications can be submitted online through the PMEGP portal.
Q: What is the role of KVIC in the PMEGP scheme?
A: KVIC acts as the central implementing agency, ensuring smooth operation, training, and fund disbursement under the scheme.
Q: What happens if my application is rejected?
A: If your application is rejected, you may reapply after addressing the stated issues and providing the correct information and documents.