Prime Minister’s Employment Generation Programme (PMEGP) 2024 Overview
Launched in August 2008, the Prime Minister’s Employment Generation Programme (PMEGP) is a credit-linked subsidy scheme administered by the Ministry of Micro, Small and Medium Enterprises (MSME). This initiative is designed to generate job opportunities by supporting the establishment of micro-enterprises in both rural and urban areas. PMEGP helps create self-employment and aims to reduce migration to urban areas, contributing to economic stability and growth.
Key Features:
- Scheme Duration: Approved for the 15th Finance Commission cycle (2021-22 to 2025-26).
- Funding: ₹13,554.42 Crore allocated to set up approximately 4,00,000 projects, creating about 30,00,000 jobs.
- Unit Upgradation: 1,000 units will be upgraded annually.
Objectives
- Job Creation: Foster self-employment opportunities by establishing new micro-enterprises in rural and urban areas.
- Support for Artisans: Bring together traditional artisans and unemployed youth, offering them self-employment opportunities locally.
- Sustainable Employment: Provide continuous employment to prevent rural-to-urban migration.
- Increase Wage Capacity: Enhance wage-earning capacity, contributing to overall employment growth.
Implementing Agencies
- National Level: Khadi and Village Industries Commission (KVIC) administers the scheme.
- State Level: Implementation through State offices of KVIC, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs), Coir Board, and Banks.
Benefits
- Margin Money Subsidy
- New Micro-Enterprises:
- General Category: 15% subsidy for urban and 25% for rural areas.
- Special Category: 25% subsidy for urban and 35% for rural areas.
- Unit Upgradation:
- All Categories: 15% subsidy (20% in NER and Hill States).
- Backward and Forward Linkages
- 5% of the total allocation is earmarked for awareness camps, monitoring, training, and related activities.
Levels of Support
- For New Micro-Enterprises:
- Manufacturing Sector: Max project cost of ₹50,00,000.
- Business/Service Sector: Max project cost of ₹20,00,000.
- Bank Loan: Balance amount provided by banks if the project cost exceeds the subsidy limit.
- For Upgradation of Existing Units:
- Manufacturing Sector: Max cost of ₹10,00,00,000 with a subsidy of up to ₹15,00,000.
- Business/Service Sector: Max cost of ₹25,00,000 with a subsidy of up to ₹3,75,000.
PM Vishwakarma Yojana 2024: Government Offering ₹15,000 Monthly and ₹3 Lakh Loan Under This Scheme
Eligibility Criteria
For New Enterprises:
- General Criteria:
- Individuals above 18 years.
- No income ceiling for assistance.
- Educational qualification of at least VIII standard for projects above ₹10 lakh (Manufacturing) and ₹5 lakh (Business/Service).
- Exclusions:
- Existing units under PMRY, REGP, or other government schemes.
- Only one person per family is eligible.
For Upgradation:
- Criteria:
- Completion of a 3-year lock-in period for the first subsidy.
- Successful repayment of the first loan.
- Profitable unit with growth potential.
Documents Required
- Caste Certificate (if applicable)
- Special Category Certificate
- Rural Area Certificate
- Project Report
- Education/Training Certificates
- Any other applicable documents
Application Process
Step 1: Application for New Unit
- Visit the PMEGP Portal.
- Click on “Apply” under the “Application For New Unit” tab.
- Fill in the required details on the application form here.
- Upload the necessary documents and proceed with final submission.
Step 2: Application for Existing Units (2nd Loan)
- Visit the PMEGP Portal.
- Click on “Apply” under “Application For Existing Units (2nd Loan)” tab.
- Complete the form and upload required documents here.
Step 3: Login for Registered Applicants
- Visit the PMEGP Login Portal.
- Enter your User ID and Password to log in.
FAQs
Q1: What is PMEGP? A1: PMEGP is a credit-linked subsidy scheme aimed at generating employment by establishing micro-enterprises in rural and urban areas.
Q2: What are the main objectives of PMEGP? A2: The scheme aims to create job opportunities, support traditional artisans, provide sustainable employment, and enhance wage-earning capacity.
Q3: How can I apply for PMEGP? A3: You can apply online through the PMEGP Portal or visit your nearest KVIC office.
Q4: What documents are needed for application? A4: Required documents include a caste certificate, project report, education/training certificates, and other relevant documents.
Q5: Are there any exclusions under PMEGP? A5: Yes, industries related to meat processing, intoxicants, and certain agricultural activities are excluded.
Conclusion
The Prime Minister’s Employment Generation Programme (PMEGP) provides an excellent opportunity for individuals to establish micro-enterprises and contribute to economic development. By offering financial support and promoting self-employment, PMEGP aims to create job opportunities and support traditional artisans and unemployed youth. Whether you’re setting up a new business or upgrading an existing unit, PMEGP offers substantial benefits to help you succeed. Make sure to check the eligibility criteria and prepare your documents to apply through the official portal and take advantage of this empowering scheme.
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