PMEGP SCHEME, Prime Minister’s Employment Generation

Program (PMEGP) is a new credit-linked subsidy program approved by the Government of India. This scheme is administered by the Ministry of Micro, Small, and Medium Enterprises (MoMSM).

Prime Minister’s Employment Generation Programme (PMEGP) is a Central Government Scheme that combines two schemes namely Rural Employment Generation Programme (REGP) and Prime Minister’s Rojgar Yojana (PMRY). Both schemes aimed to generate employment opportunities through establishing more micro-enterprises in the urban areas and rural areas.

This scheme is implemented by different authorities at the national level and state level. At the national level, the scheme is being implemented by the single nodal agency which is under the administrative control of the Ministry of MSME that is- Khadi and Village Industries Commission (KVIC).

At the UT level, the PMEGP Scheme will be implemented through the State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), and District Industries Centers (DICs) and banks.

This Subsidy under this scheme provided by the Government will be routed through KVIC through the Identity Banks for in due course of distribution to the entrepreneurs/ beneficiaries in their Bank Accounts.

KVIC routes the government subsidy through designated banks for eventual disbursal to the entrepreneurs /beneficiaries directly into their bank accounts. KVIC routes the direction to the State Level by State Khadi and Village Industries Boards (KVIBs), District Industries Centers (DICs), and banks to directly give the advantage of the scheme subsidy or money to the beneficiaries or entrepreneurs.

Aims or Objectives of PMEGP Scheme

Nature of Assistance

  • The maximum cost of the unit or project admissible in the manufacturing sector is ₹25 lakhs and in the service or business sector, it is ₹10 lakhs.
  • Own contribution 5% to 10% of the project cost.
  • To develop more Employment Opportunities through new self-employment ventures, micro-enterprises, and projects. This scheme emphasizes rural as well as urban areas.
  • This scheme emphasizes bringing together and providing a sustainable and continuous employment to a large segment of traditional and prospective artisans and to urban and rural unemployed youth in the country.
  • The aim of this scheme is to increase the earning capacity of artisans and contribute to increasing the growth rate of urban and rural employment.

Subsidy Given Under PMEGP Scheme:- 

General Category:- 

Own Contribution – 10%

Subsidy Given According To Areas:-

Urban Areas – 15%

Rural Areas – 25%

Bank Finance – 90%

Special (including SC/ ST/

OBC/ Minorities/ Women, Physically handicapped, Ex-Servicemen, NER, Hill and Border areas, etc.:- 

Own Contribution-  

Subsidy Given According To Areas:-

Urban Areas – 25%

Rural Areas – 35%

Bank Finance – 95%

Who can apply?

  1. Any individual, above 18 years of age. At least VIII standard pass for projects costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the service or business sector. Only new projects are considered for sanction under PMEGP.
  2. Self Help Groups (including those belonging to BPL provided that they have not availed benefits under any other Scheme)
  3. Production Co-operative Societies.
  4. Institutions registered under Societies Registration Act, 1860.
  5. Charitable Trusts.

Also, those who are already availed under any other Government Subsidy Scheme of Government of India or State Government are NOT ELIGIBLE.

If you are further interested in knowing more about this topic and want to seek some expert help, Contact:-

Sunanda Rao, Career Counselor