Prime Minister Employment generation Scheme
Prime Minister Employment Generation Programme or Scheme (PMEGP) is a credit-linked subsidy programme introduced by the government of India in 2008. PMEGP is a combination of two schemes, namely, Prime Minister’s Rojgar Yojna and Rural Employment Generation Programme.
This program focuses on generating self-employment opportunities through micro-enterprise establishments in the non-farm sector by helping unemployed youth and traditional artisans to find employemement.
Eligibility of PMEGP
- Individuals with age of 18 years or more
- Passing standard VIII is required for a project above Rs 5 lakh in the service sector and above Rs 10 lakh in the manufacturing sector
- Institutions registered under Societies Registration Act- 1860
- Production based co-operative societies
- Self-help groups and charitable trust across india.
Features of the PMEGP scheme
- Assistance under the PMEGP is only available to new units(industries) that are to be established.
- Maximum project cost Rs 10 lakh in the service sector and Rs 25 lakh in the manufacturing sector is this limit od PMEGP.
- There is no income ceiling for setting up projects/industries.
- The per capita investment under the scheme should not exceed Rs 1 lakh in plain areas and Rs 1.5 lakh in hilly areas.
- The Scheme is implemented through Khadi and Village Industries Commission, State Khadi and Village Industries Commission Directorates, State Khadi and Village Industries Boards and District Industries Centres and banks in Urban and Rural areas in the ratio of 30:30:40 between Khadi and Village Industries Commission / Khadi and Village Industries Boards / DIC respectively
- Any industry including coir based projects (excluding those mentioned in the negative list) can take advantage of this scheme
- Existing units or units that are already availing any government subsidy (State or Central) are ineligible.
Subsidy provided in this Scheme
General Category: The eligible subsidy is 25% of the cost of the project in rural areas and 15% in urban areas.
Special Category: The eligible subsidy is 35% of the cost of the project in rural areas and 25% in urban areas. The interest rates varies from 3 to 7%
Apply From the Official website of my.msme.gov.in