Prime Minister’s Employment Generation Programme (PMEGP) scheme announced by Honorable Prime Minister of India on 15th August 2008 in his address from Red Fort is a credit linked Scheme of Govt. of India by merging erstwhile REGP and PMRY scheme. KVIC is the Nodal Agency at National Level.
The PM’s Employment Generation Programme (PMEGP) has an aim to create more than four lakh jobs by the end of 2017 which is quite a good number. It had been announced in 2000 and formally launched during fiscal 2008-09. PMEGP can be described is basically a combination of Rural Employment Generation Programme (REGP) and Pradhan Mantri Rozgar Yojana (PMRY). The Ministry of Micro, Small and Medium Enterprises (MoMSME) administers the program and the Khadi and Village Industries Commission (KVIC) implements it.
The major aim is to generate jobs in both rural and urban regions, by way of self-employment ventures, micro-enterprises, and other eligible projects. It also aims at bringing back the tradition of village artisanship and helping urban youth who are unable to get jobs due to one reason or the other. The program also looks to provide employment that is continuous and sustainable and make sure its beneficiaries’ earning capacities are enhanced.
This scheme increases employment in the most creative and traditional ways. Going back to the ancient professions, it restores culture as well as generates employment. Also, the urban youth which is not able to get jobs is helped in many ways. Both the urban and rural population is covered under one scheme which makes its scope wide and effective. It is a very effective scheme which is clear from the aim itself. Also, it is a combination of two schemes which makes it more effective.
Areas Covered
Rural Areas declared under KVIC Act 2006
Also, the Scheme is to be implemented by KVIC, KVIB, and DIC.
Urban area – Only DIC
PMEGP Objectives
- Generating continuous and sustainable employment opportunities in Rural and Urban areas of the country
- Providing continuous and sustainable employment to a large segment of traditional and prospective artisans, rural and urban unemployed youth in the country through the setting up of micro enterprises.
- Facilitating the participation of financial institutions for higher credit flow to the micro sector.
PMEGP Eligibility
- Individuals above 18 years of age.
- VIII Std. pass required for the project above Rs.10.00 lakhs in manufacturing and above Rs. 5.00 lakhs for Service Sector.
- Self Help Groups and Charitable Trusts.
- Institutions Registered under Societies Registration Act- 1860.
- Production based Co-operative Societies.
- The scheme is applicable to all viable (technically as well as economically) projects in rural as well as urban areas, under Microenterprises sector.
- The maximum cost of the project acceptable under the manufacturing sector is Rs.25 lakhs and the business/services sector is RS.10 lakhs.
- Only one person from a family is eligible for obtaining financial assistance under the scheme.
- Assistance under the Scheme is available only for new projects
- The assistance under the scheme will not be available to activities indicated in the negative list under the scheme.
Special Treatment to:
- Scheduled Castes (SCs)
- Ex-servicemen
- Scheduled Tribes (STs)
- Differently-abled
- Other Backward Classes (OBCs)
- People from the Northeastern states
- Minorities
- People living in border areas and hills
- Women
Certain banks have been identified for the purpose of disseminating the funds to the eventual beneficiaries and the amount is normally credited to the designated bank accounts.
Documents Required for PMEGP Loan
Below Is the list of documents to be submitted along with the application form. Candidate must be filled application form properly and sign the form in the required place. Read the full list of documents required for a pmegp loan doesn’t miss any single point.
1. Age proof certificate required (photocopy)
2. Qualification Proof certificate -Academic and professional
(Required attestation on a photocopy of qualification certificate if Project Cost have Rs.5.00 lakhs under Business/Service Industry or above Rs.10.00 lakhs under Manufacturing Industry).
3. If the candidate has any experience, photocopy of certificate required
4. If candidate belongs to SC/ST/OBC/Ex-Servicemen/PHC etc attested photocopy required relevant caste.
5. Training Certificate (required if candidate have experience of EDP (Entrepreneurship Development Programme at least for two weeks)
6. Brief project in the Prescribed format: Templet required
7. An undertaking-cum-Certificate of Applicant in the manner that “I do hereby agree to invest a minimum 5% of the sanctioned amount of Project Cost (if Applicant belongs to SC/ST/OBC/PHC/Woman/Ex-Serviceman/Hill Border Areas) and minimum 10% of the sanctioned amount of Project Cost (if Applicant under General Category) of my own, if my project is sanctioned”.
Security
- Assets created out of the bank’s finance.
- Personal guarantee of the promoter is also required.
- No collateral security is needed up to the amount of Rs. 5 lakhs.
- Credit Guarantee Fund Scheme for Micro & small Enterprises will cover the Eligible units.
Implementing Agencies
- The Scheme will be implemented by Khadi and Village Industries Commission
(KVIC), Mumbai, a statutory body created by the Khadi and Village Industries. - In rural areas, the scheme will be implemented by the state and the village industry board.
- In urban areas, the Scheme will be implemented by the State District Industries Centres
(DICs) only.
Branches Where it is Implemented
All the branches of Dena Bank
Any person interested to avail loan under the said scheme may contact the nearest branch for further details.
Features
- The Scheme is implemented through KVIC and State/UT Khadi & V.I. Boards in Rural areas and through District Industries Centres in Urban and Rural areas in the ratio of 30:30:40 between KVIC / KVIB / DIC respectively.
- No income ceiling for setting up of projects.
- 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.
- Any industry including Coir Based projects excluding those mentioned in the negative list.
- Per capita investment should not exceed Rs. 1.00 lakhs in plain areas and Rs. 1.50 lakhs in Hilly areas.
- The maximum project cost of Rs. 25.00 lakhs in the manufacturing sector and Rs. 10.00 lakhs in Service Sector.
Financial Institutions
- 27 Public Sector Banks and all Regional Rural Banks
- Co-operative Banks
- Private Sector Scheduled Commercial Banks
- Small Industries Development Bank of India (SIDBI).
Funds Distributed
Categories of beneficiaries under PMEGP Beneficiary’s own contribution (of project cost) Rate of Subsidy.
- Urban-Rural
- General Category 10% 15% 25%
- Special (including SC/ST/OBC /Minorities/ Women, Ex-Servicemen, Physically handicapped, NER, Hill, and Border areas etc) 05% 25% 35%
Important points
(1) The maximum cost of the project is Rs. 25 lakh in the manufacturing sector.
(2) The maximum cost of the project is Rs. 10 lakh under the business sector.
(3) The balance amount of the total project cost will be provided by Banks as
term loan
E-tracking under PMEGP
- To bring in transparency in the implementation of PMEGP scheme as well as to create a database of PMEGP beneficiaries, e-tracking of PMEGP applications introduced.
- Focus on First In First Served (FIFS) in the processing of applications at all stages.
- The system ensures complete lucidity in the decision processes, leads to better governance and prevents corruption in implementation.
Industries Restricted
- Meat, beedi, pan, cigar, cigarette, liquor, tobacco or toddy industries.
- Any industry that is in the business of pashmina wool or similar products that need hand weaving and hand spinning – ones that are already being benefitted by the Khadi Programme and enjoy sales rebates.
- Any industry or business that is related to tea, coffee, rubber, sericulture, horticulture, floriculture and animal husbandry.
- Rural transport, with the only exceptions being cycle rickshaws, auto rickshaws in Andaman and Nicobar Islands, and houseboats, tourist boats, and shikaras in Jammu and Kashmir
- Polythene carry bags industries
Industries Benefitted
- Agro-based food processing industries
- Polymer and chemical-based industries
- Forest-based industries
- Rural engineering and biotech industries5. Handmade paper and
- Handmade paper and fiber industries
- Service and textile industries
- Mineral-based industries
- Application procedure
PMEGP Scheme Loan Interest Rate & Repayment
Under the scheme, PMEGP Loan Interest Rate is determined by the MSE sector. Under this scheme, repayment of the loan can be done from 3 years to 7 years.
How to Apply PMEGP
How to become beneficiaries of the programme?
Advertisements are being put up in electronic and print media asking for applications and project proposals to be put forward by entities willing to become beneficiaries of the programme. Once this is done, it can be submitted to the concerned office along with necessary documents such as detailed project reports. Applications can be downloaded from the official website of KVIC.
For any other query, feel free to visit the PMEGP official website given below
Fill the form on PMEGP official website
https://www.kviconline.gov.in/pmegpeportal/jsp/pmegponline.jsp
PMEGP PDF
Here is a Downloadable link of PMEGP pdf files New PMEGP guidelines you can also read pdf on our site.
Conclusion:
The scheme comprises huge funds and its detailed distribution. The combination of two schemes increases its responsibility such that a chaos is not created. Also, the website provides detailed information about the steps to apply so that rural or uneducated people don’t suffer. We hope the scheme to be effective as it claims to be in the coming years.