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GoI implements “Prime Minister’s Employment Generation Programme” scheme

Recent in News:

Shri Narayan Rane, Minister, MSME in presence of Shri Manoj Kumar Chairman, Khadi and Village Industries Commission (KVIC) inaugurated 72 Units assisted under PMEGP and Disbursement of Margin Money Subsidy to 720 PMEGP Beneficiaries on 17th September 2022


The Prime Minister’s Employment Generation Programme (PMEGP) is a flagship scheme of the Ministry of MSME, which was launched during the year 2008 – 09 (September 2008) by merging the erstwhile Rural Employment Generation Programme (REGP) implemented by KVIC and Pradhan Mantri Rojgar Yojana (PMRY) implemented by District Industries Centers

This is a credit linked subsidy scheme for generation of employment opportunities through establishment of micro enterprises in rural as well as urban areas of the Country.

KVIC is the nodal Agency at the national level to implement the scheme designated by Ministry of MSME, Government of India – with the active participation of banks, State Khadi & Village Industries Boards, District Industries Centers (DICs) and Coir Board for coir related activities in both rural as well as urban areas of the country.

Maximum cost of the project eligible for subsidy under the scheme in the manufacturing sector is Rs. 50.00 lakh, and Rs. 20.00 lakh in the service sector.

Other Facts :

⊗Any adult beneficiary above 18 years is eligible for assistance under PMEGP.

⊗Only meant for 1 project.

⊗The defination of family is self and spouse.

⊗To motivate, inspire, confidence and build capacity for establishment of an enterprise,
manage and sustain the unit successfully by beneficiary. As per operational guideline
approved by Ministry of Micro, Small & Medium Enterprises, Govt. of India PMEGP
beneficiary has to undergo two weeks (10 Days)& six days ( the project cost up to Rs 5.00
lakhs) Entrepreneurship Development Programme (EDP) before release of sanctioned loan
to beneficiaries.

⊗The Following list of activities will not be permitted under PMEGP for setting up of micro enterprises/ projects/ units.
i. Any industry/Business connected with Meat(Slaughtered), i.e. processing, canning and/or serving items made of it as food, Production/Manufacturing or sale of intoxicant items like Beedi/Paan/Cigar/Cigarette etc. Hotels or Dhaba or Sales outlet serving liquor, preparation/producing tobacco as raw materials, tapping of toddy for sale will not be allowed.
(a) However, serving/selling non-vegetarian food at Hotels/Dhabas will be allowed.
ii. Activities prohibited by Local Government/Authorities keeping in view environment or Socio-economic factors will not be allowed.
iii. Manufacturing of polythene carry bags of less than 75 microns thickness and manufacture of carry bags or containers made of recycled plastic for storing, carrying, dispensing or packaging of food stuff and any other item which causes environmental problems. Thickness of polythene carry bags shall be governed by the Ministry of Environment, Forest and Climate changes notification for plastic waste management rules and amendments from time to time.
iv. Any Industry/Business connected with cultivation of crops/plantation like Tea, Coffee, Rubber etc. sericulture (Cocoon rearing), Horticulture, Floriculture, Animal Husbandry will not be allowed.
(a) However, value addition under these will be allowed under PMEGP. Off Farm/Farm Linked activities in connection with sericulture, horticulture, floriculture etc. will be allowed.
Following industry/Business connected with Animal Husbandry will also allowed:
(a) Dairy-Milk and other dairy products through primarily Cows but also sheep, goats, camels, buffaloes, horses, and donkeys.
(b) Poultry-Poultry, kept form their eggs and for their meat, include chickens, turkeys, geese and ducks.
(c) Aquaculture-It is the farming of aquatic organisms including fish, molluscs, crustaceans and aquatic plants
(d) Insects -Including Bees, Sericulture, etc.
(As a special case piggery, which is a major source of livelihood in NER may also be allowed in NER states only).

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