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Prime Ministers Employment Generation Program(PMEGP)
Prime Ministers Employment Generation Program(PMEGP)
Updated on Jan. 28, 2022, 5:25 a.m.
Prime Ministers Employment Generation Programme (PMEGP) is the major programme introduced by the Ministry of Micro, Small and Medium Industries (MOMSME). It was launched in the year 2008 after merging two different schemes like the Prime Ministers Rojgaar Yojnaa and the Rural Employment Generation Programme.
It is good in generating the highest level of employment opportunities through small and micro enterprises in the Manufacturing segment by giving assistance to the unemployed youth and traditional artisans.
The PMEGP is under the Ministry of MSME and it is implemented by the Khadi and Village Industries Commission (KVIC) at the national and the state level.
At the state level, it is executed by the
- State Khadi and Village Industries Commission.
- State Khadi and Village Industries Boards.
- District Industries Centers.
- Banks.
PMEGP scheme was launched with following objectives:
- Believe in generating the uninterrupted employment and self-employment opportunities in rural and urban areas of India.
- Encouraging the participation of the financial institution for higher credit flow to the micro sector.
- Offering continuous employment to huge group of rural youth to destroy the rural migration to urban areas in India.
- Bring rural unemployed youth to self-employment and bring them par with urban youth in India.
- Enhance the wage earning capacity of the youths and contribute to rural and urban employment.
Who can apply under PMEGP scheme?
Following person can apply under PMEGP scheme:
- Must be above the age of 18 years.
- Institutes registered under Society Registration Act 1860.
- No income ceiling is required for this plan.
- Existing units under the Rural Employment Generation Program and Pradhan Mantri Rojgaar Yojna or any other schemes, are not qualified to avail this scheme.
- Production based cooperative societies.
- Charitable institutions, trust and self-help organisations.
- New Units going to be established will get full assistance.
- Must be 8th standard pass out for the project above 5 lakh in service segment and project above 10 lakhs in the manufacturing segment.
- Certified copy of the caste/community certificate.
- Project cost consists of capital expenditure and working capitals. Without it the PMEGP financing scheme will not be eligible.
- Project costing more than 5 lakhs and does not require the working capital requires the clearance from the Regional Office/Controller of Bank Branch.
Training Under PMEGP:
The officers and staff of the KVIC, and DIC will be given methodical training to make them aware of the rules present in the training curriculum. This is done at the local, district, state and national levels. Approximately, 50 such program are done by the KVIC to educate the masses in India.
Implementing Agencies Under The PMEGP:
The Scheme will be executed by the Khadi and Village Industries Commission (KVIC) Mumbai, a statutory body created by the Khadi and Village Industries Commission Act 1956, a single agency in India. In urban areas PMEGP, is implemented by the State district industries centers SDIC only. Khadi and Village Industries commission will join with the state sponsored district industries centers and regulate the performance in the rural and urban areas. It will comprise of Udhyami Mitras working under the Panchayati Raj institutions and other NGO of repute in identifying beneficiaries under the PMEGP.
Subsidy:
There are two categories where one can get the benefits regarding the Pradhan Mantri Rojgaar Yojna given below.
General Category: Eligibility is 25% of cost of the project in the rural areas is 15% in the urban areas.
Special Category: The eligible subsidy is 35% of the cost of the project in the rural areas and 25% in the urban areas.
How to apply under PMEGP scheme?
You can apply using the website
https://www.kviconline.gov.in/pmegpeportal/pmegphome/index.jsp
- Identification of beneficiaries is at a district levels by task force.
- Task force comprises of the District Magistrate, Collector and Commissioner.
- Applicant’s already undergone training under the Entrepreneurship Development Program, Skill Development program; Vocational Training is allowed to submit the applications to the respective banks.
KVIC will create a scorecard with SBI and RBI and forward to the District Level Task Force and other state beneficiaries.
Documents Required For Making PMEGP Loan Application:
- Aadhar Card.
- PAN Card.
- Special Certificate namely the physically handicapped, Ex-serviceman, North East Regions, Border areas and others.
- Nativity Certificate.
- Skill Development Certificate from recognised institute.
- Authorisation letter.
The financial institutions for making the PMEGP successful are:
- 27 Public sector banks.
- All the regional rural banks.
- Co-operative banks approved by the state level task force.
- Private sector commercial banks.
- SIDBI (Small Industries Development Board of India)
Nature of Financial Assistance
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Categories Under PMEGP
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Beneficiary Contribution
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Rate of Subsidy
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Area
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Urban
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Rural
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General Category
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10%
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15%
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25%
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Special Category
(Including SC, ST, OBC, Minority, PH, NER, Hill, Border Areas)
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5%
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25%
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35%
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Workshops:
Workshops and exhibitions are done by the KVIC to:
- Brief the possible beneficiaries about the advantages of the PMEGP and schemes like PRODIP and SFURTI(Scheme of Funds for Regeneration of Traditional Industries).
- Create a data bank of the PMEGP units regarding the services, Products, Services, Business Activities, Supply, Marketing Patterns, Production, Employment and Project Costs.
- Interact with owners getting benefits under PMEGP about the Nature of Units, Support, Problems and success stories.
- Involve experts in management marketing/exports to upgrade PMEGP units.
- Briefing on obstacles faced, execution issues, assistance needed, reaching solutions is done in this workshop.
- In rural areas the KVIC (Khadi and Village Industries Commission) will conduct exhibitions like the GRAMEXPO,GRAM MELA, GRAM UTSAV, GRAM SIDDI and others to promote the PMEGP.
Conditions For Distribution Of Targets Under PMEGP
The criteria for allocating the amount under PMEGP to the states are influenced by factors like:
- Extent of backwardness of the state.
- Fulfil the targets under PMRY (Pradhan Mantri Rozgaar Yojna).
- Extent of recovering the loans.
- Population of the State/Union Territory.
- Availability of raw materials and skilled people.
Negative Activities Under The PMEGP.
The following list of activities will not be permitted under the PMEGP for establishment of the micro enterprises/projects/units.
- Industries dealing with animal husbandry like the Pisciculture, Poultry.
- Businesses like tea plantations, horticulture, floriculture, coffee do not qualify.
- Hotel, Motels and sales outlets of brandy, whisky are not allowed.
- Items like Cigar, Pan, Cigarette is not allowed under this scheme.
- Polythene bags carrying less than 20 micron carry bags or containers are not allowed.
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