Prime Minister’s Employment Generation Programme (PMEGP)

This scheme known as the https://www.estartindia.com">"Prime Minister’s Employment Generation Programme (PMEGP)" is a credit related subsidy programme that is administered by means of the Ministry of Micro, Small and Medium Enterprises, Government of India. Khadi and Village Industries Commission (KVIC), is the nodal agency at national level for application of the scheme. At state level the scheme is applied through KVIC, KVIB as well as District Industries center. The Government subsidy as per this scheme is routed by KVIC through the recognized banks for eventual distribution towards the beneficiaries or businesspersons into their bank accounts.

Eligibility

An individual with age of 18 years or more is eligible

Passing standard VIII is needed for a project above Rs 5 lakh in the service sector as well as above Rs 10 lakh in the manufacturing sector

The institutions registered under Societies Registration Act- 1860

Production based co-operative societies

Self-help groups as well as charitable trust

The key features of the scheme

The Scheme is executed through Khadi and Village Industries Commission, State Khadi and Village Industries Commission Directorates, State Khadi and Village Industries Boards and District Industries Centres and banks in Urban and Rural areas in the ratio of 30:30:40 amid Khadi and Village Industries Commission / Khadi and Village Industries Boards / DIC respectively

The aid under the PMEGP is only available towards new units that are to be established

There is no earnings ceiling for setting up projects

The existing units or units that are already receiving any government subsidy (State or Central) are not eligible

Any industry which includes coir based projects (not including those mentioned in the negative list) could take advantage of this scheme https://www.estartindia.com

The per capita investment as per this scheme must not go beyond Rs 1 lakh in plain areas and Rs 1.5 lakh in hilly areas.

Maximum project cost Rs 10 lakh in the service sector as well as Rs 25 lakh in the manufacturing sector is this limit.

Areas of Operation

Rural area, as mentioned under Khadi and Village Industries Commission Act 2006 – Scheme, involves the area comprised in any village and comprises the area comprised in any town. The population must not go beyond twenty thousand or such additional figure as the Central Government might state from time to time. In the urban area, only District Industries Centres (DIC) is included.

Negative list of activities

Businesses / Industries linked with processing/productions/sale of meat or intoxicant products like pan/beedi/cigarette etc.

Businesses/ Industries connected with sericulture, cultivation, floriculture, horticulture.

Manufacturing of containers of recycled plastic/polythene carry bags of less than 20 microns

Processing of pashmina wool as well as additional items which involve hand spinning and hand weaving which falls within the purview of Khadi Certification Rule.

Rural transport (excluding houseboat, shikara, tourist boat in Andaman and Nicobar Islands and in Jammu and Kashmir, auto rickshaw and cycle rickshaw.)

CNG auto rickshaw shall be allowable only in Andaman and Nicobar Islands and North Eastern Region of the nation with the prior.

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