What is the Prime Minister’s Employment Generation Programme (PMEGP)?


Prime Minister's Employment Generation Programme (PMEGP)

There were two Indian government schemes were running till 2008 namely Prime Minister’s Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP) which government has merged and introduced a new program known as Prime Minister’s Employment Generation Programme. This scheme is administered by the Ministry of Micro, Small and Medium Enterprises (MoMSME).

The main objectives of this scheme is to To facilitate participation of financial institutions for higher credit flow to micro sector , To generate continuous and sustainable employment opportunities in Rural and Urban areas of the country and To provide continuous and sustainable employment to a large segment of traditional and prospective artisans, rural and urban unemployed youth in the country through setting up of micro enterprises.

The main area of operation of PMEGP is Rural Area as declared under KVIC Act 2006 – Scheme to be implemented by KVIC, KVIB and DIC (“Rural Area” means the area comprised in any Village and includes the area comprised in any town, the population of which does not exceed twenty thousand or such other figure as the Central Government may specify from time to time as declared under KVIC Act 2006) . Urban area – Only District Industries Centres (DIC). The Implementing Agencies, namely KVIC, KVIBs and DICs will associate reputed Non Government Organization (NGOs)/reputed autonomous institutions/Self Help Groups (SHGs) / National Small Industries Corporation (NSIC) / Udyami Mitras empanelled under Rajiv Gandhi Udyami Mitra Yojana (RGUMY), Panchayati Raj institutions and other relevant bodies in the implementation of the Scheme, especially in the area of identification of beneficiaries, of area-specific viable projects, and providing training in entrepreneurship development.

Eligibility for PMEGP 

Production based Co-operative Societies. Self Help Groups and Charitable Trusts. Individuals above 18 years of age. Institutions Registered under Societies Registration Act- 1860. VIII Std. pass required for the project above Rs.10.00 lakhs in manufacturing and above Rs. 5.00 lakhs for Service Sector.

The Scheme is implemented through KVIC and State/UT Khadi & V.I. Boards in Rural areas and through District Industries Centres in Urban and Rural areas in the ratio of 30:30:40 between KVIC / KVIB / DIC respectively. No income ceiling for setting up of projects. Assistance under the Scheme is available only to new units to be established. Existing units or units already availed any Govt. Subsidy either under State/Central Govt. Schemes are not eligible. Any industry including Coir Based projects excluding those mentioned in the negative list. Per capita investment should not exceed Rs. 1.00 lakhs in plain areas and Rs. 1.50 lakhs in Hilly areas. The maximum project cost of Rs. 25.00 lakhs in the manufacturing sector and Rs. 10.00 lakhs in Service Sector.

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