The Government of India has approved a credit-linked subsidy, namely the PMEGP, which is Prime Minister’s Employment Generation Programme. It came into existence after merging two schemes, namely PMRY, which is Prime Minister’s Rozgar Yojana, and REGP Rural Employment Generation Programme. They existed till 31.03.2008
What is Prime Minister’s Employment Generation Programme?
Prime Minister’s Employment Generation programme is a scheme that was launched on 15th August, 2008 during his address to the nation from Red Fort. It is a credit-linked scheme of the Government at the centre. The Government backs it as beneficiaries get between 15% and 35% relaxation from the government through credit-linked subsidies. The subsidy scheme empowers them to set up a new project based on the type of industry ranging from Micro, Small or Medium Enterprises. The scheme’s implementation is formally done by the KVIC that is Khadi and Village Industries Commission.
Eligibility
- Individuals who are over 18 years
- Institutions Registered under Societies Registration Act – 1860
- 8th pass is a mandatory aspect, especially for manufacturing projects that are beyond Rs. 10 lakhs and Service projects amounting to Rs. 5 lakhs
- Self Help groups and Charitable trusts
Benefits of the PMEG Loan Scheme
- Providing low-interest subsidies and loans to individuals who set up micro-enterprises in the non-farm sector either in urban or rural areas.
- To create continuous and sustainable employment opportunities and put the organized sector and unemployed youth towards strengthening the country’s economy.
- Financial institutions increase cash flow because of the regular inflow; the people aren’t dependent on money lenders and their regular tantrums or obstructions.
- The subsidy helps people on a large scale without discrimination, as the formalities associated with eligibility criteria aren’t stringent.
- It gives unemployed youth and traditionally dependent artisans a better future.
Prime Minister’s Employment Generation according to categories:
| Beneficiary Categories | Beneficiary’s share | Urban subsidy rate | Rural subsidy rate |
| General | 10% | 15% | 25% |
| Special | 5% | 25% | 35% |
Documents Required
- Caste Certificate
- Report of the project
- Rural Area certificate
- Special category certificate wherever applicable
- Certificate of any training to acquire skills etc.
Also Read: Pradhan Mantri Mudra Yojana: Process, Benefits & Eligibility
How to Apply for PMEGP?
- Visit the official website namely https://www.kviconline.gov.in/pmegpeportal/pmegphome/index.jsp
- Click on “Apply” which you can see easily below the “Application for New Unit” tab
- You will be directed to a new page like here https://www.kviconline.gov.in/pmegpeportal/jsp/pmegponline.jsp
- Now, here you have to fill complete information. So, once you fill out the application form online and accordingly click on “Save Applicant Data”.
- On the next page, you must upload compulsory documents to prove yourself and your identity.
- Now, submit application. You will receive a unique Application ID on your registered Email ID. Based on the application that you submitted; the concerned department will receive the same in an electronic form.
- The concerned department will get in touch with you, within 5 working days either through phone or in person.
- The applicant must submit a copy of the EDO training certificate, Aadhar number, and photo to the Financing Bank as early as possible (within 30 days max.); once he/she is informed about the sanctioning of the loan.
PMEGP loans are given to microenterprises and village industries projects. However, certain activities are prohibited by the authorities for many reasons, including environmental/socio-economic factors. Additionally, certain businesses are categorized as negative in the guidelines.
- The industry is connected to the meat business in any way, whether processing, canning, or serving items.
- Similarly, individuals who manufacture or produce Pan/Cigar/Beedi etc. can’t apply for loans, as these are intoxicants.
- Carry bags are manufactured from polyethylene with less than 75 microns in thickness. Since it is governed by the Ministry of Environment, Forest and Climate
- Activities that are discouraged or prohibited as it has a direct impact on the environment or socioeconomic factors, such as cutting of trees, which result in soil erosion
- The business connected with the cultivation of crops, such as coffee, tea, rubber, etc., isn’t permitted under PMEGP. However, certain ‘off-farm’ related activities, such as horticulture, sericulture, floriculture, etc., are 100% permissible.
Whom should you contact in case of concerns, queries, or doubts?
The government has issued a direct ‘contact number’ and ‘mail ID’ to sort out queries instantly. This gives a personal touch to people’s concerns, who can get them addressed without having to visit the offices.
State Director, KVIC
Dy. CEO (PMEGP), KVIC, Mumbai
The landline number is Ph: 022-26711017
In case you want to mail them, then Email: [email protected]