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
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 criteria for PMEGP:
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.
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% |
Note:
Average Margin money : ₹ 1.70 lakhs per project
Average Employment : 7 persons per project
GR's and Notifications | |
PMEGP Guidelines 2008 | View Details |
Increase in limit of collateral free loan from ₹ 5 lakhs to ₹ 10 Lakhs 2010 - 26.07.2010 | View Details |
GR PMEGP 2008 - 18.08.2008 | View Details |