Prime Minister’s Employment Generation Programme
Why in News?
The Ministry of MSME reported that during the 15th Finance Commission cycle (2021–22 to 2025–26), the scheme established 4,03,706 micro-enterprises, exceeding its target of 4.02 lakh.
Key Objectives
- Self-Employment: To create self-employment opportunities for first-generation entrepreneurs in rural and urban areas.
- Sustainable Livelihood: To provide sustainable employment to traditional artisans and unemployed youth near their homes to prevent migration.
- Micro-Enterprise Growth: To facilitate the setting up of new micro-enterprises in the non-farm sector.
Implementation Agencies
- Nodal Agency: Khadi and Village Industries Commission (KVIC) at the national level.
- State Level: Implemented by State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs), and banks.
Eligibility Criteria
- Age: Any individual above 18 years of age.
- Educational Qualification:
- Class 8 pass required for projects above ₹10 lakh (Manufacturing) or ₹5 lakh (Service).
- No qualification required for projects below these limits.
- Eligible Entities: Individuals, Self Help Groups (SHGs), Charitable Trusts, and Co-operative Societies.
- Exclusions: Only new projects are eligible. Units that have already availed of other government subsidies are not eligible.
Financial Assistance & Subsidies
The scheme provides "Margin Money" (subsidy) on the total project cost:
| Category of Beneficiary |
Beneficiary Contribution |
Subsidy (Urban) |
Subsidy (Rural) |
| General Category |
10% |
15% |
25% |
| Special Category* |
05% |
25% |
35% |
Special Categories include SC, ST, OBC, Minorities, Women, Ex-servicemen, Transgenders, Differently-abled, and those in North Eastern Regions (NER), Hill, and Border areas.
Project Cost Limits
- Manufacturing Sector: Maximum project cost of ₹50 lakh.
- Service/Business Sector: Maximum project cost of ₹20 lakh.
- Upgradation: Existing well-performing PMEGP units can apply for a second loan of up to ₹1 crore for manufacturing and ₹25 lakh for services with a 15–20% subsidy.
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