Prime Minister’s Employment Generation Programme (PMEGP):
- 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 4 Agencies, namely, State KVIC Office, Coir Board, 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 (October,2019), total financial support of about Rs.530 Crores has been provided to 12421 entrepreneurs under PMEGP in the form of Bank loan, on an average of Rs.4.26 lakhs per enterprise.
2.2 Achievement under PMEGP since inception:
(Rs in lakhs)
- *As on 31/10/2019 as per online report. Amount of loan calculated @33% of average MM. Disbursement including backlog cases of 2018-19.