To generate employment opportunities in rural as well as urban areas of the country through setting up of new selfemployment ventures/projects/micro enterprises in non-farm sector.Its is provide continuous and sustainable employment to a large segment of traditional and prospective artisans and rural and urban unemployed youth in the country, so as to help arrest migration of rural youth to urban areas.They increase the wage earning capacity of artisans and contribute to increase in the growth rate of rural and urban employment To facilitate participation of financial institutions for higher credit flow to micro sector.

Any individual, above 18 years of age. Minimal qualification of passing VIII standard is necessary for project above Rs.10.00 lakhs in Manufacturing and above Rs. 5.00 lakhs for Service Sector. This includes Self Help Groups and Charitable Trusts. Institutions registered under Societies Registration Act,1860. Production based Cooperative Societies.

Launched in 2008, it is central sector scheme. No income ceiling is there for assistance for setting up projects under PMEGP. It is a credit linked subsidy programme launched by merging the two schemes namely Prime Minister’s Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP). Implemented by:

  • Khadi and Village Industries Commission (KVIC) at National Level and
  • State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs) and District Industries Centres (DICs) and banks at State Level.

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.

The Government subsidy under the scheme is routed by KVIC through the identified Banks for eventual distribution to the beneficiaries/entrepreneurs in their Bank accounts. Per capita investment should not exceed Rs. 1.00 lakhs in plain areas and Rs. 1.50 lakhs in Hilly areas. The scheme’s targets are fixed taking into account the extent of backwardness of state; extent of unemployment; extent of fulfilment of previous year targets; population of state/union territory; and availability of traditional skills and raw material. A minimum target of 75 projects/district is awarded to all districts of the country to achieve inclusive growth. Higher rate of subsidy (25-35 per cent) will be applicable for women, SC/ST, OBC, Physically Disabled, NER applicants in rural areas. Under the scheme, beneficiaries can get loans up to ₹25 lakh in the manufacturing sector and ₹10 lakh in the service sector. Since its inception in 2008-09, a total of about 5.70 lakh micro enterprises have been assisted providing employment to an estimated 47 lakh persons, till 2019- 20.

The maximum cost of the project/unit admissible in manufacturing sector is Rs 25 lakhs and in the business/service sector, it is Rs 10 lakhs. The Rate of subsidy under PMEGP (of project cost): (i) For General category-15% (Urban), 25%(Rural), (ii) Special (including SC/ ST/ OBC/ Minorities/Women, Ex-servicemen, Physically handicapped, NER, Hill and Border areas, etc.) – 25% (Urban), 35% (Rural). The balance amount of the total project cost will be provided by the banks in the form of term loan and working capital.

Industry / Business connected with productions / processing / sale of meat or intoxicant items like Beedi / Pan / Cigar / Cigarette etc. Industry / Business connected with cultivation, sericulture, horticulture, horticulture. These are Manufacture of Polythene carry bags of less than 20 microns / containers of recycled plastic. Processing of Pashmina Wool and products involving hand spinning and hand weaving coming under purview of Khadi Certification Rule. Rural Transport (except Auto rickshaw, House boat, tourist boat in A & N Islands and except house boat, Shikara & Tourist Boats in Jammu & Kashmir and Cycle Rickshaw.) CNG Auto Rickshaw will be allowed only in A & N Islands and NER with the approval of Chief Secretary of the State on merit.

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