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Prime Minister’s Employment Generation Program (PMEGP)

Overview
Eligibility Criteria
Implementation
Statistics
Notifications

Overview

The Ministry of Micro, Small & Medium Enterprises (MSME), Government of India, has launched a new scheme called PRIME MINISTER’S EMPLOYMENT GENERATION PROGRAMME (PMEGP) to empower first generation entrepreneurs in rural and urban areas for setting up micro enterprises by merging Rural Employment Generation Programme (REGP) and Prime Ministers Rojgar Yojana (PMRY). The scheme is launchedon 15th Aug 2008 by Govt. of India.The scheme is implemented through agencies namely Khadi & Village Industries Commission, Khadi & Village Industries Board and District Industries Centre (Directorate of Industries) in the state. KVIC is the nodal agency for implementation of the scheme.

Features of the scheme

₹ 25 lakhs cost of the project under manufacturing sector and ₹ 10 lakhs under Business/ Service sector. 90 to 95% amount will be given as loan by banks and 5 to 10% will be applicants share
Scheme is implemented through Nationalized Banks, Regional Rural Banks and IDBI

Nature of Financial Assistance

Categories of beneficiaries under PMEGP	Beneficiary's contribution (of project cost)	Rate of Subsidy (of project cost)
Area (location of project/unit)	--	Urban	Rural
General Category	10%	15%	25%
Special category (including SC / ST / OBC /Minorities/Women, Ex-servicemen, Physically Handicapped, NER, Hill and Border areas etc.)	5%	25%	35%

Eligibility

Eligibility criteria for PMEGP:

Any individual, above 18 years of age
No Family Income Ceiling
For setting up of project costing above ₹ 10 lakh in the manufacturing sector and above ₹ 5 lakh in the service sector, the beneficiaries should passed at least VIII standard.
Individual applicant as well as Institutions registered under Societies Registration Act,1860, Self Help Groups (including those belonging to BPL provided that they have not availed benefits under any other Scheme), Co-operative Societies, and Charitable Trusts are also eligible for assistance under PMEGP.
Assistance under the Scheme is available only for new project.
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.

Implementation

The Govt. of India is grant –in- aid (subsidy) under the scheme will be routed by KVIC through the identified banks for distribution to the beneficiaries/ entrepreneurs in their bank accounts. The target allocated by Govt. of India is distributed by KVIC to all concerned agencies. As per the scheme guidelines, district offices scrutinizes all the applications that are received and put them before the Task Force Committee under the chairmanship of District Collector for recommendation to the concern financing banks. After the inspection and proper documentation by the beneficiaries financing bank sanction and disburse the loan under the scheme claim for margin money funds (subsidy) from Nodal Banks. After receipt of the claim, nodal bank disburse margin money (subsidy) amount to the concern bank.

The Margin money (subsidy) is kept in deposit for 3 years period. After completion of this lock-in period (3 years) and by confirming the regular payment by beneficiary, margin money (subsidy) is adjusted against his loan account.

Statistics

PMEGP Yearwise Performance ( DIC/KVIC/ KVIB Agency ) (₹ in Lakhs):

Year	Target			Sanctioned by Financial Banks			MM settled against Target
	Number of Projects	Margin Money Amount	Employment	Number of Projects	Margin Money Amount	Number of Projects	Margin Money Amount	Employment
2008-09	5526	6628.89	55273	3376 61%	4235.24 64%	1688 31%	2268.39 34%	13303 24%
2009-10	8872	9900.07	82501	7968 90%	9776.05 99%	4218 48%	5772.74 58%	31494 38%
2010-11	3415	4779.80	34150	6131 180%	8259.48 173%	3898 114%	5132.88 107%	31752 93%
2011-12	3379	4730.14	33790	5466 162%	9557.42 202%	2624 78%	4437.23 94%	20622 61%
2012-13	2980	6865.53	23840	4154 139%	7087.44 103%	3617 121%	6828.23 99%	22736 95%
2013-14	4981	6648.87	39848	3970 80%	8419.76 127%	2183 44%	4737.63 71%	15561 39%
2014-15	5623	7823.27	44984	5251 93%	10948.48 140%	3239 58%	7255.15 93%	14380 32%
Total	34776	47376.57	314386	36316 104%	58283.87 123%	21467 62%	36432.25 77%	149848 48%

Note:

Average Margin money : ₹ 1.70 lakhs per project

Average Employment : 7 persons per project

PMEGP Yearwise Performance (Only DIC Agency) (₹ in Lakhs):

Year	Target			Sanctioned by Financial Banks			MM settled against Target
	Number of Projects	Margin Money Amount	Employment	Number of Projects	Margin Money Amount	Number of Projects	Margin Money Amount	Employment
2008-09	2210	2651.57	22096	1511 68%	1709.08 64%	408 18%	575.38 22%	2832 13%
2009-10	3813	3799.51	31663	4489 118%	4916.03 129%	2456 64%	2921.23 77%	13691 43%
2010-11	1370	1917.52	13700	3123 228%	4334.19 226%	1538 112%	2063.05 108%	8339 61%
2011-12	1351	1892.05	13510	3680 272%	5752.57 304%	1192 88%	1872.09 99%	7464 55%
2012-13	1196	2750.20	9568	2705 226%	4318.87 157%	2203 184%	3854.27 140%	13823 144%
2013-14	2037	2568.61	16296	1737 85%	3935.42 153%	892 44%	1900.82 74%	6676 41%
2014-15	2463	3415.64	19704	2493 101%	5172.09 151%	1474 60%	3419.09 100%	6676 34%
Total	14440	18995.10	126537	19738 137%	30138.25 159%	10163 70%	16605.93 87%	59501 47%