Unleashing Entrepreneurship with the Prime Minister’s Employment Generation Programme (PMEGP)
The Indian government, in its quest to stimulate economic growth and create job opportunities, has introduced a remarkable scheme known as the Prime Minister’s Employment Generation Programme (PMEGP). This initiative is designed to provide financial assistance to individuals who are keen on setting up new enterprises.
Synopsis:
An Overview of PMEGP
The PMEGP is a national-level scheme administered by the Khadi and Village Industries Commission (KVIC). The KVIC serves as the nodal agency, coordinating with State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs), and banks at the state level to implement the scheme effectively.
The government subsidy under this scheme is routed through designated banks, which then disburse it directly into the beneficiaries’ bank accounts. This ensures a seamless and transparent process, encouraging more individuals to take advantage of the scheme.
Financial Assistance under PMEGP
The PMEGP provides substantial financial assistance to budding entrepreneurs. For projects in the manufacturing sector, the maximum cost of the project or unit admissible under this scheme is ₹ 25 lakhs. For the business or service sector, the limit is ₹ 10 lakhs.
The rate of subsidy under PMEGP varies based on the category of the beneficiary and the location of the project or unit. For the general category, the subsidy is 15% for urban areas and 25% for rural areas. For special categories, including SC/ST/OBC/Minorities/Women, Ex-servicemen, Physically handicapped, NER, Hill and Border areas, etc., the subsidy is 25% for urban areas and 35% for rural areas.
The remaining amount of the total project cost is provided by the banks in the form of a term loan and working capital.
Eligibility Criteria for PMEGP
The PMEGP is open to any individual above 18 years of age. For projects costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business/service sector, the individual should be at least an VIII standard pass.
In addition to individuals, 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, and Charitable Trusts are also eligible to apply.
It’s important to note that only new projects are considered for sanction under PMEGP. Existing Units (under PMRY, REGP or any other scheme of Government of India or State Government) and the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are not eligible.
How to Apply for PMEGP?
The application process for PMEGP has been made simple and user-friendly. The State/Divisional Directors of KVIC, in consultation with KVIB and Director of Industries of respective states (for DICs), release advertisements locally through print and electronic media. These advertisements invite applications along with project proposals from prospective beneficiaries who wish to establish an enterprise or start service units under PMEGP.
Beneficiaries can also submit their applications online at the official PMEGP portal. After submitting the online application, they need to print out the application and submit it to the respective offices along with a Detailed Project Report and other required documents.
The Prime Minister’s Employment Generation Programme (PMEGP) is indeed a significant step towards promoting entrepreneurship and generating employment opportunities. By providing financial assistance and making the process transparent and straightforward, the scheme encourages more individuals to step into the world of entrepreneurship and contribute to the nation’s economic growth.
