ABOUT PMEGP

Prime Minister's Employment Generation Programme

(PMEGP) was introduced in 2008 by merging two schemes - P.M's Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP). The scheme is implemented by Khhadi and Village Industries Commission as the nodal agency at the national level.

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Prime Minister's Employment Generation Programme

supports projects in various sectors including:

Food processing
Leather products
Handmade paper and fiber products
Readymade garments
Plastics and chemicals
Healthcare and pharmaceuticals
Engineering and services
Other rural and traditional industries
Other small & urban enterprise

Implementing Agencies

Khaadi and Village Industries Commission (KVIC)
State KVIC Directorates
State Khadi and Village Industries Boards (KVIBs)
District Industries Centres (DICs)
NBFC

Objectives of PMEGP

To generate employment opportunities in rural and urban areas through self-employment ventures
To provide continuous and sustainable employment to traditional artisans and rural/urban unemployed youth
To increase the wage earning capacity of artisans
To develop entrepreneurial skills and aptitude among rural/urban unemployed youth
To facilitate participation of financial institutions for higher credit flow to micro sector

Subsidy Structure

The Prime Minister's Employment Generation Program offers a Margin Money Subsidy (15% to 35%) on PMEGP loans for new micro-enterprises, varying by beneficiary category (General/Special) and project location (Urban/Rural). The subsidy, up to ₹25 lakh (manufacturing) & ₹up to 25 lakh (service/Othres) for new units, is provided by the government to promote self-employment in the non-farm sector. Subsidy Rates (as % of Project Cost):

General Category: 20%
Special Category (SC/ST/Women/Minorities/PH/Ex-Servicemen/NER): 25% (Urban) / 35% (Rural)