Prime Minister’s 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 into their bank accounts.

Benefits of Prime Minister’s Employment Generation Programme (PMEGP)
  • MSMEs can upgrade their competence in terms of business and technologies by getting rated through independent, renowned and professional rating agencies empanelled with NSIC.
  • MSEs which get rated under NSIC- “Performance and Credit Rating scheme” have the liberty to get rated by any one of the rating agencies of their preference.
  • It also invariably increases their creditability in business and helps them in getting timely credit from banks at liberal rate of interest.
Nature of Assistance
The maximum cost of the project/unit admissible in manufacturing sector is Rs.25 lakhs and in business/service sector is Rs.10 lakhs.
Levels of funding under PMEGP:

Categories of Beneficiary’s under PMEGP                         Beneficiaries contribution (of project cost) Rate of subsidy (of project cost)       
Area (location of
  Urban Rural
Special (including SC/ST/ OBC/ Minorities /Women, Ex-servicemen, Physically handicapped, NER, Hill and Border areas, etc.) 5% 25% 35%

The balance amount of the total project cost will be provided by the banks as term loan and working capital.

Who can apply?
Any individual above 18 years of age can apply. The beneficiary must have passed at least VIII standard 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. SHGs (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 (under PMRY, REGP or any other scheme of Government of India or State Government) and units that have already availed Government subsidy under any other scheme of Government of India or State Government are not eligible.
How to apply?

The State/Divisional Directors of KVIC in consultation with KVIB and Director of Industries of the respective states (for DICs) will give advertisements locally through print & electronic media inviting applications along with project proposals from prospective beneficiaries desirous of establishing the enterprise/starting of service units under PMEGP.

The beneficiaries can call or Whatsapp at 07678456921.


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