Prime Minister's Employment Generation Programme

Submitted by pradeep on Mon, 06/05/2024 - 13:56
Scheme Open
Prime Minister's Employment Generation Programme (PMEGP) Logo
  • Credit link subsidy offered to new and existing micro enterprises.
  • Up to 35% of subsidy can be avail under programme.
Customer Care
  • PMEGP Contact details: 022-26711017
  • PMEGP Helpdesk:
Overview of the Scheme
Name of  Scheme Prime Minister's Employment Generation Programme (PMEGP)
Launch Year 2008
Benefits Provide assistance to set up a micro enterprise in rural and urban areas.
Beneficiary Any Individual, SHG, registered institutions, co-operative society and charitable trust.
Nodal Department Khadi and Village Industries Commission
Subscription Subscribe here to get Update Regarding Scheme
Mode of Apply Applicants may submit their PMEGP Application through online offline


  • With the aim of generating new employment opportunities in both rural and urban non farm sectors, the government of India announced the Prime Minister's Employment Generation Programme (PMEGP) in 2008.
  • The announced scheme merges two operational schemes, namely the Prime Minister Rojgar Yojana and Rural Employment Generation Programme.
  • PMEGP scheme is administered by the Ministry of Micro, Small and Medium Enterprises, while its implementation is carried out by Khadi and Village Industries Commission (KVIC).
  • In the aforementioned area, the government will provide subsidy to establish micro enterprises.
  • This scheme help the traditional artisans and unemployed youth of rural and urban areas to come together, providing them with self employment opportunities at their respective places.
  • Continuous and sustainable employment may stop the migration of both rural and urban youth.
  • An increase in daily wage earnings may also contribute towards the employment growth in rural and urban areas.
  • Only one applicant from each family, whose minimum age is above 18 years are eligible to apply for the scheme.
  • Both new as well as existing units are eligible for the assistance.
  • Beneficiary authentication will be done at district level by the implementing agency and banks.
  • The bank will sanction about 90% of the project cost for general and 95% for the special category applicants.
  • Beneficiary may repay this loan in a period of 3 to 7 years with applicable interest rate.
  • In each financial year, the government will allocate an estimated budget to disburse the funds towards to set up new or existing units.
  • A dedicated portal for Prime Minister's Employment Generation Programme is launched in 2016, where applicants may submit their application online.

Benefits of Scheme

  • Government will provide subsidy to establish a new existing micro enterprises and offer a 2nd loan to existing units under the programme; as detailed in the table below.
    New Units 2nd loan for Existing Units
    The maximum project cost admissible for establishing new units is 50 lakh and 20 lakhs for manufacturing and business or service sector respectively. The maximum project cost admissible for existing units for upgradation of manufacturing sector is Rs 1 Cr.
    Remaining balance of the project cost excludes contribution of the applicants will be provided by the banks The maximum project cost admissible for existing business or service sector for upgradation is Rs 25 lakh.
    In case the project cost exceeds the threshold limit for manufacturing and business or private sector, the balance cost shall be provided by the bank with any government subsidy. If the total project cost exceeds the given threshold limit then the rest amount shall be provided by the bank without any subsidy offered.

    Subsidy for urban and rural general applicants is 15% and 25% respectively.

    Subsidy for special category of urban and rural applicants is 25% and 35% respectively.

    Except NER and hill states beneficiary, the subsidy available for other region is 10% while for the former it is 20%.

Eligibility Criteria

  • Applicants who may fulfil the below mentioned conditions are eligible to apply for Prime Minister's Employment Generation Programme (PMEGP) Scheme.

For new units

  • Any individual applicant must be above 18 years.
  • Self Help Groups, registered institutions under societies registration act, production co-operative societies and charitable trust are also eligible.
  • To set up a project only one person from each family are eligible for the scheme.
  • To set up new projects under the scheme, there will be no limit on the assistance available.
  • Applicants must have completed 8th standard, if they wish to set up a project of Rs 10 lakh in Manufacturing sector and above Rs 5 lakh in Business or service sector.
  • Only new projects sanctioned under PMEGP are eligible for assistance.
  • Existing units that availed assistance or subsidy under PMRY, REGP or any other government scheme are not eligible.
  • Projects with capital expenditure are only eligible for financing under the scheme.
  • Land cost must be excluded from the project cost.
  • Ready shed cost or long lease or rental work shed/workshop can be included in the project for a period of 3 maximum years.
  • Only viable micro enterprises includes village industry projects are applicable except project prohibited by the respective local government.

For upgradation of existing units

  • Subsidy claimed under PMEGP must be adjusted within 3 years of lock in period.
  • First loan issued under the scheme must be repaid within the allotted time.
  • Unit must be in profit with good turnover and possess potential of further growth.

Documents Required

  • Certain documents are required from the applicants to apply for the PMEGP scheme, which are given as:
    • Aadhaar Card
    • Passport size photo
    • Caste Certificate
    • Special Category Certificate (if applicable)
    • Rural Area Certificate
    • Report of the project
    • Certificate of education/EDP/Skill Development training
    • PAN Card
    • Address Proof
    • Other documents as required

How to apply

  • Interested and eligible beneficiary may apply for the PMEGP scheme online through KVIC Website and offline by sending the filled in application to the respective MSME DI.
  • Applicants may follow the applicable procedure for both new units and existing unit; as discussed below.

New Units

  • Open Khadi and Village Industries Commission Portal.
  • Select the 'New Registration' link from the home page.
  • Fill the detailed application form appear on your screen.
  • Upon saving the application form, applicants generated username and password will be sent to the registered mobile number.
  • Upload the documents in the scanned format.
  • review the application form before final submission.
  • After final submission, applicants ID will be generated, whose details will be sent to your email ID.
  • Print the submitted application form and with the details generated you can track your application form.
  • District level monitoring committee set up by the KVIC will verify your application and documents.
  • Once verified the sanction letter will be issued to the applicants.
  • Applicants may also track their application status online.

Existing Units

  • Open KVIC Website first.
  • Select the application for existing unit link on the home page.
  • Choose the online application from the pop up window.
  • Fill the personal details to fetch your details.
  • Post this, you have to provide the last loan sanction details.
  • Afterwards, fill the detailed application form.
  • Upload the documents as required.
  • Finally, submit the filled in application form.
  • The officials of the KVIC will verify your application and your units potential.
  • After fulfilling all the conditions, a sanction letter will be issued.

Offline Application

  • For offline application, the applicants must visit the KVCI website.
  • Select the Application for New Registration Units.
  • On the new page, select the offline application in regional languages.
  • From the list of languages download the application form you hail from.
  • Generate the print out of the application form and enter all the details.
  • Post this, affix all the relevant documents to it and send it to the MSME DI of your respective state.

Offline Application Forms in Regional Language

Important Link

Contact Details

Also see
Scheme Type Govt

Matching schemes for sector: Business

Sno CM Scheme Govt
1 Credit Guarantee Scheme for Startups CENTRAL GOVT

Add new comment

Plain text

  • No HTML tags allowed.
  • Lines and paragraphs break automatically.

Rich Format