Understanding The Prime Minister's Employment Generation Programme (PMEGP)

The Prime Minister's Employment Generation Programme (PMEGP) is a credit-linked subsidy programme introduced by the Indian government in 2008 to help promote entrepreneurship and generate employment opportunities in both urban and rural areas. The scheme is implemented by the Khadi and Village Industries Commission (KVIC), an autonomous organization under the Ministry of Micro, Small and Medium Enterprises (MSME).

How PMEGP Works and Eligibility Criteria

The PMEGP scheme aims to provide financial assistance to micro and small

entrepreneurs in the form of credit and subsidies for starting new ventures or

expanding existing ones. The scheme offers a subsidy of 15% to 35% of the

project cost for urban areas and 25% to 35% for rural areas, depending on the category

of the beneficiary.

To be eligible for the PMEGP scheme, the applicant must be 18 years or

above and have passed at least the 8th standard. The beneficiary should also be

a permanent resident of India and should not have availed of any other government

subsidy for the same project. The project should not be in the negative list of

the KVIC, and the applicant should not have a criminal record.

PMEGP Loan Details and Scheme List

Under the PMEGP scheme, loans of up to Rs. 50 lakhs can be availed, and

the repayment period is up to 7 years, including a moratorium period of 6-18

months. The scheme is available for various sectors, including agriculture,

agro-based industry, food processing, textiles, handicrafts, and engineering.

The KVIC maintains a list of approved projects under the PMEGP scheme,

which includes various manufacturing and service activities. Applicants can

choose a project from the list or propose a new project that fits the criteria

and guidelines of the scheme.

PMEGP Subsidy and Launch Date

The PMEGP scheme provides a subsidy of 15% to 35% of the project cost,

depending on the category of the beneficiary and the location of the project.

The scheme was launched on 15th August 2008 and has since been revised and updated to improve its implementation and impact.

Impact of PMEGP Scheme: Statistics

The PMEGP scheme has had a significant impact on promoting

entrepreneurship and employment generation in both urban and rural areas.  As per recent data, approximately 8.58 lakh

micro-enterprises have been assisted with a subsidy of Rs. 21,509 crore under

the scheme, which has generated an estimated employment opportunity for around 70

lakhs people. Moreover, it is worth noting that around 80% of the assisted units are located in rural areas and around 50% are owned by SC, ST,

and women entrepreneurs, which indicates the inclusivity of the program

PMEGP Scheme and Broader Social and Economic Goals

The PMEGP scheme has not only contributed to promoting entrepreneurship

and employment generation but also to broader social and economic goals. The

scheme has helped reduce migration from rural to urban areas by providing

employment opportunities in rural areas. It has also promoted the use of local

resources and traditional skills, thereby preserving and promoting cultural

heritage.

In conclusion, the PMEGP scheme is an essential initiative by the Indian government to promote entrepreneurship and employment generation. The scheme provides financial assistance and support to micro and small entrepreneurs in both urban and rural areas, thereby contributing to broader social and economic goals.

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