In this article we are providing detailed information about Prime Minister’s Employee generation scheme/programme. This Scheme is implemented by Khadi and village industries Commission (KVIC). This is nodal agency at National level. At State level this scheme is implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs) and District Industries Centres (DICs) and banks.
Under the Scheme, the Government subsidy is routed by KVIC through identified banks for the eventual distribution to beneficiaries / entrepreneurs in their bank accounts.
In manufacturing sector, the maximum cost of the project is Rs.25 lakh.
In business/service sector, the maximum cost of the project is Rs. 10 lakh.
Who are Eligible to apply this Scheme?
- Any Individual above 18 years of age are eligible to apply this scheme.
- Atleast VIII Standard pass is required for the projects costing above Rs. 10lakh in manufacturing sector and above Rs. 5 lakh in business/service sector.
- Only new projects are to be considered for sanction under this PMEGP Scheme.
- Self Help Groups
- Institutions registered under societies registration act, 1860; Production Cooperative societies and charitable trusts are also eligible to apply for this scheme.
Existing Units (under PMRY, REGP or any other scheme of Government of India or State Government) and the units that have already availed Government subsidy under any other scheme of Government of India or State Government are NOT ELIGIBLE.
1.The maximum cost of project/unit admissible under manufacturing sector is Rs. 25 lakh .
2. The maximum cost of project/unit admissible under business/service sector is Rs. 10 lakh.
3. In plain areas, the per capita investment should not exceed to 1.00 lakh.
4. In Hilly areas, the per capita investment should not exceed to 1.50 lakhs.
5. The Own contribution of the project cost is 5% to 10%.
6. In rural areas, General Category beneficiaries can avail the margin money subsidy of 25% of the project cost.
7. In urban areas, General Category beneficiaries can avail the margin money subsidy of 15% of the project cost.
8. For the beneficiaries belonging to special categories such as women/SC/ST the margin money subsidy is 35% in rural areas.
9. For the beneficiaries belonging to special categories such as women/SC/ST the margin money subsidy is 25% in urban areas.
To apply for the Prime Minister Employment Generation Programme: Click Here
For more details on this scheme, you can visit: official website.
Frequently Asked Questions on PMEGP
Q. What is the maximum project cost allowed under PMEGP?
Ans: For manufacturing Unit: Rs.25 lakhs and for service unit: Rs. 10 lakhs.
Q. Which are the financial agencies?
Ans: 27 Public sector banks, Regional Rural Banks (RRBs),Co-operative banks, and private scheduled commercial banks approved by the respective state task force committee.
Q. Where does the beneficiary have to submit his/her application?
Ans: Beneficiary can submit his/her application online on kvic website – www.kvic.org.in/ kviconline.gov.in/pmegpeportal.
Q. What is Age limit?
Ans: Any adult beneficiary above 18 years is eligible for financing under PMEGP.
Q. Whether EGP training is compulsory?
Ans: EGP training: 10 working days for project cost more than 5 lakhs and 6 working days for project cost upto 5 lakhs