Prime Minister’s Employment Generation Programme (PMEGP) is a credit linked subsidy programme administered by the Ministry of Micro, Small and Medium Enterprises, Government of India. Khadi & Village Industries Commission (KVIC), is the nodal agency at national level for implementation of the scheme. At state level the scheme is implemented through KVIC, KVIB and District Industries center. This scheme aims to generate employment opportunities by promoting industrial service and manufacturing activities in rural and urban areas of the state.
Objective
- To generate employment opportunities in rural as well as urban areas through setting up of self employment ventures.
- To provide continuous and sustainable employment to a large segment of traditional and prospective artisans and unemployed youth, so as to help arrest migration of rural youth to urban areas.
Scope of PMEGP
- The scheme is applicable to all viable (technically as well as economically) projects in rural as well as urban areas, under Micro enterprises sector.
- The maximum cost of the project admissible under manufacturing sector is Rs.25 lakhs and business/services sector is RS.10 lakhs.
- Only one person from family is eligible for obtaining financial assistance under the scheme.
- Assistance under the Scheme is available only for new projects
- The assistance under the scheme will not be available to activities indicated in the negative list under the scheme.
Eligible Entrepreneurs / Borrowers
- Any individual, above 18 years of age
- The beneficiaries should have passed at least VIII standard, for setting up of project costing above Rs.10 lacs in the Manufacturing Sector and above Rs. 5 lacs in the business /Service Sector,
- Self Help Groups (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
- Charitable Trusts.
Subsidy Entitlement & Bank Finance
Subsidy from KVIC and the bank finance depends on the cost of project as per details given below :
| Bank finance | Subsidy from KVIC | Promoter’s contribution | ||
|---|---|---|---|---|
| Urban area | Rural area | |||
| General Category beneficiary / institution | 90% | 15% | 25% | 10% |
| Special category beneficiary/institution | 95% | 25% | 35% | 5% |
Security
- Assets created out of the bank’s finance.
- Personal guarantee of the proprietor / promoter.
- No collateral security up to Rs. 5 lakhs.
- Eligible units will be covered under Credit Guarantee Fund scheme for Micro & small Enterprises – CGMSE. (excluding Margin Money / subsidy component)
PMEGP in Rajasthan:
During the financial year 2018-19, 1,609 units were provided loans from banks and ₹47.42 crore margin money was provided by the Government.
References:
- BoB website
- MSME Website
