- Prime Minister’s Employment Generation Programme (PMEGP) is a central sector scheme administered by the Ministry of Micro, Small and Medium Enterprises since 2008-09.
- It is a major credit-linked subsidy programme aimed at assisting first generation entrepreneurs for setting up micro enterprises in the non-farm sector by helping traditional artisans and unemployed youth.
- At the national level, the Scheme is being implemented by Khadi and Village Industries Commission (KVIC), a statutory organization under the administrative control of the Ministry of MSME, as the single nodal agency.
- At the State level, the Scheme will be implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs) and District Industries Centres (DICs) and banks.
- Under the scheme, loans are being provided by all Public Sector Banks, selected Private Sector Banks and Co-operative Banks with margin money subsidy (refers to the amount that the government contributes to beneficiaries availing PMEGP loan) being given by the Ministry of MSME through KVIC.
- The scheme is applicable to all viable projects in rural as well as urban areas, under the Micro enterprises sector.
- The maximum cost of the project admissible under the manufacturing sector is Rs.25 lakhs and the business/services sector is Rs.10 lakhs.
- Only one person from a family is eligible for obtaining financial assistance under the scheme.
- Assistance under the Scheme is available only for new projects.
Eligible Entrepreneurs / Borrowers
- Any individual, above 18 years of age
- The beneficiaries should have passed at least VIII standard, for setting up of project costing above Rs.10 lacs in the Manufacturing Sector and above Rs. 5 lacs in the business /Service Sector,
- Self Help Groups
- Institutions registered under Societies Registration Act, 1860
- Production Co-operative Societies
- Charitable Trusts
Why in News?
- The Government released margin money subsidy of Rs. 100 crores to 3083 beneficiaries under the PMEGP scheme. This will create new employment opportunities for around 25,000 people.