Prime Minister’s Employment Generation Programme:
The Ministry of Micro, Small and Medium Enterprises has approved the extension of the Prime Minister’s Employment Generation Programme (PMEGP) for five years till FY26.
- The PMEGP has now been approved for continuation over the 15th Finance Commission Cycle for five years from 2021-22 to 2025-26 with an outlay of Rs 13,554.42 crore.
- The Government of India approved the introduction of a credit linked subsidy programme called Prime Minister’s Employment Generation Programme (PMEGP) in 2008 for generation of employment opportunities through establishment of micro enterprises in rural as well as urban areas.
- It allows entrepreneurs to set up factories or units.
- It is a central sector scheme being administered by the Ministry of Micro, Small and Medium Enterprises (MoMSME).
- Implementing Agency at the National Level: Khadi and Village Industries Commission (KVIC) – a statutory organization under the administrative control of the Ministry of MSME.
- Any individual, above 18 years of age.
- Only new projects/units are considered for sanction of loans.
- Self-help groups that have not availed benefits under any other public scheme, societies, production co-operative societies, and charitable trusts.
- Maximum Cost of Project/Unit Admissible:
- Manufacturing Sector: Rs. 50 lakh
- Service Sector: Rs.20 lakh
- Government Subsidy:
- Rural Areas: 25% for general category and 35% for special category, which includes SC/ST/OBC/Minorities, NER, Hill and Border Areas, transgender, physically disabled, north eastern region, aspirational and border district applicants.
- Urban Areas: 15% for general category and 25% for special category.
- Role of Banks: Loans are provided by Public Sector Banks, Regional Rural Banks, Co-operative Banks and Private Scheduled Commercial Banks approved by respective State Task Force Committee.