Prime Minister's Employment Generation Programme (PMEGP)

Prime Minister's Employment Generation Programme (PMEGP)

The Prime Minister’s Employment Generation Programme (PMEGP) is a credit-linked subsidy program launched by the Ministry of Micro, Small and Medium Enterprises (MSME), Government of India. It aims to generate employment opportunities through the establishment of micro-enterprises in both rural and urban areas.

The scheme is implemented by Khadi and Village Industries Commission (KVIC) at the national level and by State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), and District Industries Centres (DICs) at the state level.

Key Features of PMEGP:

• 1. Financial Assistance – Subsidy of 15% to 35% on project cost depending on the location and category of the entrepreneur.
• 2. Project Cost – Up to ₹25 lakh for manufacturing and ₹10 lakh for service sectors.
• 3. Eligible Beneficiaries – Individuals above 18 years with at least 8th-grade education, self-help groups, institutions registered under Societies Act, trusts, and co-operative societies.
• 4. No Collateral Required – Projects up to ₹10 lakh do not require any collateral security as per RBI guidelines.
• 5. Skill Development – Training is provided to entrepreneurs before disbursal of funds to ensure effective utilization.