Prime Minister Employment Guarantee Programme [PMEGP]
The central government has established the PMEGP scheme to provide employment opportunities to the country’s unemployed youth. Loans ranging from ₹10 to ₹ 25 lakhs are made available to the country’s unemployed youth in order for them to start their own businesses. The primary goal of this scheme is to create job opportunities for the country’s youth through the establishment of micro-enterprises in the non-agriculture sector.
The Prime Minister’s Employment Generation Programe (PMEGP) merged two previous schemes, namely the Prime Minister Rojgar Yojana (PMRY) and the Rural Employment Generation Programe (REGP), both of which aimed to create employment opportunities for young people.
The Parameters used by the Central Government to frame the scheme are as follows
Backwardness of the state
State population
Availability of traditional skills and raw materials
Unemployment within the state
Features
The government will award 75 projects in each district under this scheme.
Women, SC, ST, OBC, physically disabled, and NER applicants will receive higher subsidies.
The government will administer the entire scheme process online. Everything will be done online, starting with the distribution of application forms and ending with the money being credited to the account.
Industries Which Can Be Set Up Using the PMEGP Scheme Benefits
Forest-based industries
Mineral based industries
Food & agriculture industry
Engineering & chemical based industry
Textiles (except khadi)
Service based industries
Non-conventional energy-based industries
Eligible Borrowers
Any individual, above 18 years of age.
No income ceiling for assistance for setting up of projects under PMEGP.
Should possess at least VIII standard pass educational qualification for setting up of project costing above Rs.10 lakh in Manufacturing sector and above Rs.5 lakh in Business / Service Sector.
Only new projects.
Existing units (PMRY, REGP or any other scheme of Govt. of India or State Govt.) and the units that have already availed Govt. Subsidy under any other scheme of Govt. of India or State Govt. are not eligible.
Projects without capital expenditure are not eligible.
Cost of land is not included in Project Cost.
Only one person from one family (self and spouse) is eligible under this scheme
Range: 3 to 7 years after an initial moratorium period.
For MSMEs: RLLR linked
For Non MSMEs: RLLR and MCLR Linked (based on activities)
Benefits of CGTMSE Scheme
The Ministry of Micro, Small and Medium Enterprises (MoMSME) has approved the continuation of the PMEGP Scheme for 5 years from FY 2021-22 to FY 2025-26. The scheme is implemented by KVIC which acts as Nodal agency at State level. The State director of the concerned state is authorized to monitor and implement the scheme and activities under BFL besides attending various meetings and workshops.
Note:
Maximum cost of Project/unit for Margin Money Subsidy
Manufacturing Sector: Rs.50 lakh.
Business / Service Sector: Rs.20 lakh
The Balance amount of total project cost is provided by Bank
If the total Project / Unit Cost exceeds Rs.50 lakh and Rs.20 lakh for manufacturing and Business / Service sector respectively, the balance amount may be provided by the Bank without any Government Subsidy.
Note:
Maximum cost of Project/unit for Margin Money Subsidy for upgradation
Manufacturing Sector: Rs.1.00 crore. Maximum subsidy would be Rs.15 lakh (Rs.20 lakh for in NER and Hill States)
Business / Service Sector: Rs.25 lakh. Maximum subsidy would be Rs.3.75 lakh (Rs.5 lakh for in NER and Hill States)
The Balance amount of total project cost is provided by Bank.
If the total Project / Unit Cost exceeds Rs.1.00 crore and Rs.25 lakh for Manufacturing and Business / Service sector respectively, the balance amount may be provided by Bank without any Government Subsidy.
Process flow and steps
Step1
Know the eligibility criteria
Age above 18
No income ceiling
Proprietorship firms only
Education above 8th
Only for new project
Not for other scheme beneficiaries
Step2
Approach the bank & apply through PMEGP portal
Nodal agencies & implementing agencies– KVIC, KVIB & DIC
Application will be forwarded to nodal agencies
Nodal officer discussion with applicant
Correction ,scoring and negative list checking
Forward correct application to bank
Step3
Sanction of loan
Sanction letter copy will be forwarded to IA & applicant
Sanction letter forwarded to online EDP portal
Step4
EDP training
Step5
Loan disbursement
Step6
Subsidy release
KVIC transfers subsidy to your bank. It will have lock in period of 3 yrs and will be kept as FD without any interest. The subsidy amount will be deducted from total chargeable loan amount,i,e no interest will be charged for this subsidy[loan] amount.
Step7
Subsidy disbursed to applicant after 3 yrs
contact us
Contact us
Like what you’ve seen? Get in touch to learn more.
