Guidelines Schemes

Scheme Guidelines:

1.1     The Government of India, Ministry of MSME launched a new Credit- linked Subsidy Programme called PMEGP, by merging two Schemes that were in operation till 31.03.2008, namely, Prime Minister’s Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP), for generation of employment opportunities for first generation entrepreneurs through establishment of micro enterprises in rural as well as urban areas.

1.2     The Government of India has designated KVIC as the single Nodal Agency at the National level for implementation of the Scheme. At the State level, the Scheme is being implemented through 3 Agencies, namely, State KVIC Office, Tripura KVIB and the DICs. The subsidy is routed by the implementing agencies through the nodal bank branches.

1.3     In certain respects, norms for PMEGP are more liberal than erstwhile PMRY and REGP Schemes. The ceiling for total Project Cost under PMEGP is Rs. 25 lakhs for manufacturing sector and Rs. 10 lakhs for service sector. The rate of subsidy is 25% for urban areas and 35% for rural areas. The own contribution of beneficiary required under the Scheme is 5% only. There is no requirement of collateral security for loans upto Rs.10 lakhs. There is no income ceiling for assistance under the Scheme. The requirement of minimum qualification of Class-VIII passed in only for project with total cost above Rs.10 lakhs in manufacturing sector and above Rs.5 lakhs in service sector. SHGs are also eligible for assistance.

1.4     Second financial assistance for expansion of existing successful PMEGP/Mudra units upto Rs.1.00 crore for mfg sector & Rs.25 Lakhs for service sector with subsidy of 20%, max.Rs.20.00 Lakh & Rs.5 Lakhs respectively (w.e.f 2018-19).

1.5     However, certain categories of economic activities are not eligible for assistance under the Scheme. Such activities include (i) Rural Transport (except CNG auto rickshaws) (ii) Industry/ Service connected with Cultivation of Crop/ Plantations (iii) Industry/ Service connected with Meat, Tobacco and Intoxicants etc. Business/ Trading activities, which were excluded initially, have been allowed from 2013-14 (with norms similar to service sector), subject to restriction that maximum 10% of annual margin money allocation can be used for this purpose.

1.6     Application for financial assistance under this scheme have to be submitted through “online” process (www.kvic.online.gov.in).

 

  • 2.      Performance so far:

 

2.1     The Programme was launched during 2008-09, but due to late allocation of targets to the State, the process could be started in January, 2009 only. Hence, not much progress could be achieved during 2008-09. Up to 2019-20 (March,2020), total financial support of about Rs.572.09 Crores has been provided to 13168 entrepreneurs under PMEGP in the form of Bank loan, on an average of Rs. 4.34 lakhs per enterprise. 

 

2.2    Achievement under PMEGP since inception:

(Rs in lakhs)

Year

Target

Sponsored

Sanctioned

Disbursed

No.

Amount

No.

Amount

No.

Amount

2008-09

393

377

1687.59

42

147.24

22

73.01

2009-10

393

937

3392.62

446

1709.32

386

1340.46

2010-11

1000

1901

8725.96

1041

4753.32

947

3859.22

2011-12

1500

3084

13505.53

1648

7097.41

1545

5858.87

2012-13

1500

4191

20013.70

1678

7663.69

1587

6165.71

2013-14

1500

4276

21925.01

1572

7720.33

1477

5259.94

2014-15

1500

4474

24959.15

1447

7109.63

1358

4690.57

2015-16

1500

3947

21214.95

1371

6652.01

1221

4771.75

2016-17

1692

4073

21032.97

1419

7328.12

1375

7041.52

2017-18

1605

4557

25225.90

1142

6321.70

1116

5735.73

2018-19

1500

4290

28544.60

980

5536.36

1176

6943.51

2019-20

1500

5228

32692.53

1039

5912.94

958

5469.42

Total

15583

41119

221317.21

13807

67866.71

13168

57209.71