Prime Minister's Employment Generation Programme (PMEGP)
Ministry of Micro, Small and Medium Enterprises
The program is carried out by the Khadi and Village Industries Commission (KVIC) as the main coordinating body on a national scale. At the state level, it’s managed through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs), and banks. In this process, KVIC channels government subsidies through specified banks to eventually reach the beneficiaries or entrepreneurs, directly into their bank accounts.
Nature of assistance
- Maximum project/unit cost:
- Manufacturing sector: ₹ 25 lakhs
- Business/service sector: ₹ 10 lakhs
- Rate of subsidy under PMEGP (of project cost):
- General category:
- Urban: 15%
- Rural: 25%
- Special category (including SC/ST/OBC/Minorities/Women, Ex-servicemen, Physically handicapped, NER, Hill and Border areas, etc.):
- Urban: 25%
- Rural: 35%
- General category:
- The banks will provide the remaining amount of the total project cost in the form of term loan and working capital.
Who can apply?
- Eligibility criteria:
- Any individual above 18 years of age.
- Must have at least VIII standard pass for projects costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business/service sector.
- Consideration for sanction under PMEGP:
- Only new projects are eligible.
- Additional eligible entities:
- Self Help Groups (including those belonging to BPL provided they have not availed benefits under any other Scheme).
- Institutions registered under Societies Registration Act, 1860.
- Production Co-operative Societies.
- Charitable Trusts.
- Non-eligibility:
- Existing Units (under PMRY, REGP or any other scheme of Government of India or State Government).
- Units that have already availed Government Subsidy under any other scheme of Government of India or State Government.
How to apply?
The State/Divisional Directors of KVIC, in collaboration with KVIB and the Director of Industries of respective states (for DICs), will locally advertise through print and electronic media to invite applications and project proposals from interested beneficiaries looking to establish enterprises or start service units under PMEGP.
Beneficiaries also have the option to submit their applications online at https://www.kviconline.gov.in/pmegpeportal/pmegphome/index.jsp. They can then print out the application and submit it to the respective offices along with a Detailed Project Report and other necessary documents.
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FAQs
Rs.25.00 lakhs for manufacturing unit and Rs.10.00 lakhs for Service Unit
Categories of beneficiaries under PMEGP | Rate of (Margin Money) Subsidy | |
Area (location of project/unit) | Urban | Rural |
General Category | 15% | 25% |
Special (including SC / ST / OBC /Minorities/Women, Ex-servicemen, Physically handicapped, NER, Hill and Border areas etc. | 25% | 35% |