PM Employment Generation Programme (PMEGP) 

About:

• The scheme is to assist first generation entrepreneurs for setting up of micro enterprises across the country.
• It is a major credit-linked subsidy scheme launched by merging two schemes namely Prime Minister’s Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP) for generating employment opportunities by establishing micro-enterprises in urban and rural areas in the non-farm sector.
• It was launched in 2008 as central sector scheme.

Objectives:

• To generate employment opportunities in rural as well as urban areas of the country through setting up of new self employment ventures/projects/micro enterprises in non-farm sector. 
•  To provide continuous and sustainable employment to a large segment of traditional and prospective artisans and rural and urban unemployed youth in the country, so as to help arrest migration of rural youth to urban areas. 
• To increase the wage earning capacity of artisans and contribute to increase in the growth rate of rural and urban employment.
• To facilitate participation of financial institutions for higher credit flow to micro sector.

Eligibility:

• Any individual above 18 years of age, Self Help Groups, Institutions registered under Societies Registration Act 1860, Production Co-operative Societies and Charitable Trusts are eligible.
• Existing Units and the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are not eligible.
• Only new projects are considered for sanction under PMEGP.
• Minimal qualification of passing VIII standard is necessary for project above Rs.10.00 lakhs in manufacturing and above Rs. 5.00 lakhs for Service Sector.

Salient features:

• It is Implemented by Khadi and Village Industries Commission (KVIC) at National Level and State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs) and District Industries Centres (DICs) and banks at State Level. 
• No income ceiling is there for assistance for setting up projects under PMEGP. 
• Assistance under the Scheme is available only to new units to be established. 

• Existing units or units already availed any Govt. Subsidy either under State/Central Govt. Schemes are not eligible. 
• The Government subsidy under the scheme is routed by KVIC through the identified Banks for eventual distribution to the beneficiaries/entrepreneurs in their Bank accounts. 

• Per capita investment should not exceed Rs. 1.00 lakhs in plain areas and Rs. 1.50 lakhs in Hilly areas. 
• The scheme’s targets are fixed taking into account the extent of backwardness of state; extent of unemployment; extent of fulfillment of previous year targets; population of state/union territory; and availability of traditional skills and raw material. 
• A minimum target of 75 projects/district is awarded to all districts of the country to achieve inclusive growth. 
• Higher rate of subsidy (25-35 per cent) will be applicable for women, SC/ST, OBC, Physically Disabled, NER applicants in rural areas 
• Under the scheme, beneficiaries can get loans up to ₹25 lakh in the manufacturing sector and ₹10 lakh in the service sector. 
• Since its inception in 2008-09, a total of about 5.70 lakh micro enterprises have been assisted providing employment to an estimated 47 lakh persons, till 2019- 20.