Entrepreneurship boosts the economy and creates jobs. To support this, India launched the Prime Minister’s Employment Generation Programme (PMEGP). This program encourages self-employment in various sectors. In this blog, we’ll look at PMEGP’s features, benefits, and success stories.

About Prime Minister’s Employment Generation Programme(PMEGP)

The Indian government introduced a new subsidy program called the State Head’s Work Age Program (PMEGP). It combines the Top State Leader’s Rojgar Yojana (PMRY) and the Rustic Business Age Program (REGP) to create business opportunities for micro-enterprises in rural and urban areas. The Ministry of Micro, Small, and Medium Enterprises (MSME) will administer the PMEGP program actively. The Khadi and Town Industries Commission (KVIC), under the Ministry of MSME, will be the single nodal agency at the national level, actively implementing the plan.

At the State level, the Plan will be executed through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centers (DICs), and banks. KVIC will direct the government grant under the Plan to identified Banks for possible distribution to the recipients/entrepreneurs in their Bank accounts.

Eligibility Conditions of Beneficiaries

Any person over 18 years old can receive assistance for setting up projects under PMEGP. There is no income limit for this support.

For projects in the manufacturing sector that cost more than Rs. 10 lakh and more than Rs. 5 lakh in the business or service sector, beneficiaries must have at least an eighth-grade pass certificate.

Only new projects approved under PMEGP are eligible for assistance from the Scheme.

Self-help groups, including those affiliated with Below Poverty Line (BPL) households, are also eligible for assistance under PMEGP if they have not received benefits from any other scheme.

Organizations registered under the 1860 Societies Registration Act, Creation Co-employable Social orders, and Beneficent Trusts are eligible for assistance.

Existing Units that have previously received Government Subsidy under any other Government of India or State Government scheme, including PMRY, REGP, or any other scheme, are ineligible.

(PMEGP) Scope

The plan is pertinent to all suitable (actually as well as monetarily) projects in country as well as metropolitan regions, under the miniature ventures area.
The greatest expense of the task acceptable under the assembling area is Rs.50 lakhs and the business/administrations area is Rs.20 lakhs.
The program only allows one member of a family to receive financial assistance.
The scheme only provides assistance to new projects.
The activities listed on the negative list will not be eligible for assistance under the scheme.

Objectives of (PMEGP)

The Prime Minister’s Employment Generation Programme (PMEGP) aims to create new microbusinesses, self-employment projects, and ventures in both urban and rural areas, generating job opportunities. Additionally, the program strives to provide self-employment options for rural and urban youth and revive traditional artisans. Moreover, PMEGP offers stable employment to traditional artisans and unemployed youth, preventing migration to cities. Furthermore, the scheme supports artisans’ livelihoods and expands job opportunities in both urban and rural areas. In conclusion, PMEGP promotes entrepreneurship, skill development, and inclusive economic growth, benefiting society across the nation.

Other eligibility conditions

(i) Along with the Margin Money (subsidy) Claim, the beneficiary is required to present a certified copy of the caste/community certificate or other relevant document issued by the competent authority for other special categories.

. ( ii) When necessary, a certified copy of the institutions’ bye-laws must be attached to the Margin Money (Subsidy) Claim.
(iii) Capital expenditures and one cycle of working capital will be included in the project cost. Projects without Capital Use are not qualified for funding
under the Plan. Projects with a cost greater than Rs. 5 lakh and no need for working capital require approval from the Regional Office or Controller of the Bank’s Branch, and claims must include a certified copy of approval from the Regional Office or Controller, as appropriate.

Features of the PMEGP Scheme

This program can be utilized by any industry, including coir-based projects (with the exception of those on the negative list). The scheme’s maximum per capita investment is Rs 1 lakh in plain areas and Rs 1.5 lakh in hilly areas. Help under the PMEGP is simply accessible to new units that are to be laid out
There is no pay roof for setting up projects
Existing units or units that are now benefiting of any administration appropriation (State or Focal) are ineligible
Any industry including coir-based projects (barring those referenced in the negative rundown) can exploit this plan .

PMEGP – Associated Challenges

he Scheme is crippled by structural issues and a high rate of Non-Performing Assets (NPAs). From 2015-2016 to 2019-2020, assistance of Rs. 10,169 crore was provided. Out of this, Rs. 1,537 crore has turned out to be NPA.

A deficiency in skills, lack of market study, low demand, and stiff competition are believed to be the key reasons for such a large number of NPAs.

This scheme doesn’t have specific annual targets like other central schemes. States and banks don’t have the pressure to meet annual loan disbursement targets, which might impact the program’s effectiveness. Learn more about different Government Schemes on the provided link.

Implementing Agencies

The Khadi and Village Industries Commission (KVIC), Mumbai, a statutory body established by the Khadi and Village Industries Commission Act, 1956, will serve as the single nodal agency at the national level. District Industries Centers in rural areas, State Khadi and Village Industries Boards (KVIBs), and State Directorates of KVIC will implement the plan at the state level. The Plan may be carried out by State Locale Ventures Focuses (DICs) in metropolitan regions. KVIC will collaborate with State KVIBs and State DICs to organize and carry out screenings in metropolitan and provincial areas. NSIC, Udyami Mitras enrolled in the Rajiv Gandhi Udyami Mitra Yojana (RGUMY), Panchayati Raj Foundations, and other well-known NGOs will also be included in KVIC and DICs.

(PMEGP) know more about

Visit www.kvic.org.in and www.kviconline.gov.in to learn more about the program and to submit an application. Share permission Off Content Teaser The Government of India has approved the introduction of a new credit-linked subsidy program called the Prime Minister’s Employment Generation Programme (PMEGP). This program combines the two schemes that were in place up until March 31, 2008, namely the Prime Minister’s Rojgar Yojana (PMRY) and the Rural Employment Generation Programme (REGP The Ministry of Micro, Small, and Medium-Sized Enterprises is in charge of administering the PMEGP central sector scheme. The single nodal agency at the national level will be the Khadi and Village Industries Commission (KVIC), a statutory organization under the Ministry of MSME’s administrative control. Inform most recent update Off Divisions/Locale Region Areas Rundown Hojai Request 0

PMEGP – Credit-linked Subsidy Program for MSMEs

Interest Rate	Shall vary from lender to lender
Age Criteria	Minimum 18 years or above
Maximum Project Cost	Rs. 50 lakhs for Manufacturing Unit
	Rs. 20 lahks for Service Unit
Subsidy on Project	From 15% to 35%
Eligible Entities	Business owners, Entrepreneurs, Institutions, MSMEs, Co-operative Societies, Charitable Trusts & Self Help Groups (SHGs)
Applicant’s Education Qualification	At least 8th class pass and further as per sole discretion of PMEGP

Prime Minister’s Employment Generation Programme (PMEGP) is integrated with two earlier schemes, viz. Prime Minister Rojgar Yojana (PMRY) and the Rural Employment Generation Programme (REGP) were working along similar lines to generate employment among the youth.

Under PMEGP, initiated by Govt. The Government has come up with a few changes to the existing scheme by increasing the maximum project cost from the existing Rs Rs 10 lakh to Rs 20 lakh for service units and Rs. 25 lakhs to Rs 50 lakh for manufacturing units.

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