Prime Minister’s Employment Generation Programme (PMEGP)

SN Parameters Prime Minister’s Employment Generation Programme (PMEGP)
1 Description The scheme is implemented by Khadi and Village Industries Commission (KVIC) functioning 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), District Industries Centres (DICs) and banks. In such cases KVIC routes government subsidy through designated banks for eventual disbursal to the beneficiaries / entrepreneurs directly into their bank accounts.
2 Nature of Assistance The maximum cost of the project/unit admissible for benefits under the scheme in manufacturing sector is increased to Rs 50 lakhs from Rs 25 lakhs and in the business/service sector, it is increased to Rs 20 Lakhs from Rs 10 lakhs. If total cost exceeding Rs 50 Lakhs (manufacturing sector) or Rs 20 Lakhs (Service Sector), the exceeding amount may be provided by banks without any subsidy.
3 Support under PMEGP
Categories Beneficiary Contribution Rate of Subsidy
Area Urban Rural
General Category 10% 15% 25%
Special Category 05% 25% 35%
2nd Loan for upgradation 2nd Loan Beneficiary Contribution 2nd Loan Subsidy
All Categories 10% 15% (20% for NER & Hill States)
4 Support under 2nd Loan Maximum cost of Project under manufacturing sector is Rs 1 Crore, and under service sector is Rs 25 Lakhs.
5 Eligibility Conditions 1. Individual above 18 Years of age
2. For project cost above 10 lakhs in manufacturing sector and above 5 lakhs in service sector, the beneficiary should possess at least 8th Standard pass qualification.
3. Existing Units and the units that have already availed Government Subsidy under any other Scheme of GoI or State Government are not eligible .
4. Assistance available only for new projects.
5. Only one person from one family (self and spouse) is eligible

For 2nd Loan

1. MM Claimed has to be adjusted on completion of 3 years
2. First loan has to be successfully repaid in time
3. Unit is profit making with good turnover and having potential for further growth
6 EDP 1. EDP is now optional for project cost upto Rs 2Lakhs 2. EDP Training of 5 days mandatory for project costs upto Rs 5 Lakhs
3. EDP Training of 10 days mandatory for project costs above Rs 5 Lakhs
7 Negative List of activities 1. Any industry connected with Meat (Slaughtered) or sale of intoxicant items, any hotel or dhaba or sales outlet serving liquor will not be allowed, however serving/ selling of non-vegetarian food at Hotels/ Dhabas will be allowed
2. Activities prohibited by Local Governemnt
3. Manufacturing of Polythene carry bags of thickness less than 75 microns and manufacturing of carry bags or containers made of recycled plastic
4. Any industry connected with cultivation of crops like Tea, coffee, rubber etc , sericulture, horticulture, floriculture, animal husbandry will now be allowed, however off farm/ farm linked activities in connection with sericulture, horticulture, floriculture etc will be allowed

Allowed list connected with Animal Husbandry

1. Dairy- Milk and other dairy products through Primarily Cows but also Sheep, goat, camels, buffalo, horses and donkeys
2. Poultry- Poultry, kept for their eggs and for their meat including chicken, turkey ,geese & ducks
3. Aquaculture – Farming of aquatic organisms including fish, molluscs, crustaceans and aquatic plants
4. Insects- including Bees, Sericulture, etc