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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%

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
Content owned by Directorate of Industries, Government of Maharashtra. Last Updated On: 11.02.2016