PM's Employment Generation Programme
Ministry of Micro, Small and Medium Enterprises (MSME) is implementing Prime Minister’s Employment Generation Programme (PMEGP), which is a major credit-linked subsidy programme aimed at generating self-employment opportunities through establishment of micro-enterprises in the non-farm sector by helping traditional artisans and unemployed youth.
The scheme is being implemented by Khadi and Village Industries Commission (KVIC), State Khadi and Village Industries Board (KVIB) and District Industries centres (DIC). Under the scheme, the loan is being provided by all Public Sector Banks, selected Private Sector Banks and Co-operative Banks with margin money subsidy being given by Ministry of MSME through KVIC.
Any individual above 18 years of age is eligible for applying under the scheme. General category beneficiaries can avail the margin money subsidy of 25 % of the project cost in rural areas and 15% in urban areas. Beneficiaries belonging to Special Categories such as Scheduled Caste/Scheduled Tribe/OBC /Minorities/Women, Ex-serviceman, Physically handicapped, NER, Hill and Border areas etc. can avail margin money subsidy of 35% in rural areas and 25% in urban areas. The maximum cost of projects can be Rs. 25 lakh in the manufacturing sector and Rs. 10 lakh in the service sector. The benefit can be availed under PMEGP for setting up of new units only.
Further, the Ministry of MSME has also introduced a new component of second financial assistance for expansion/upgrading the existing PMEGP/MUDRA units for manufacturing unit up to Rs.1.00 cr. and for service/ trading unit up to Rs.25.00 lakhs with a subsidy of 15% (20% for NER and Hilly state) from the year 2018-19.