PMEGP Scheme (Prime Minister's Employment Generation Programme) {प्रधानमंत्री रोजगार सृजन कार्यक्रम}

Updated on Jul 10, 2020

Overview

The Central Government launched the Prime Minister Employment Generation Program to help the small and medium entrepreneurs of our country and increase employment opportunities in our country. This scheme was very successful and so, the government has recently extended this scheme for the financial year 2019-20.

Objectives

Through this scheme, the government wants to motivate the country's people to start self-employment ventures and new projects. So, the start of new projects can create employment opportunities in rural and urban areas. The government is giving more subsidies in the projects to be started in rural areas under this scheme. People can start projects in rural areas, and people of these areas do not have to go outside their zone or district for employment. With this scheme's help, the government wants to increase the rate of jobs in rural and urban areas.

The government's decision to extend the duration of this subsidy-linked scheme will create more jobs that will be generated in our country in the coming years. With the Prime Minister Employment Generation Program (PMEGP) help, the government will help the people of our country financially in starting a new business. The Khadi and Village Industries Commission has implemented this scheme on the national level, and at this stage, all the work related to this scheme will be looked after by KVIC.

KVIB (Khadi and Village Industries Board) has been given the responsibility to run this scheme properly at the state level. KVIB will work with DIC (District Industries Center) to look after the work related to this scheme at the state and district levels. The government grant provided for this scheme is by the banks associated with the system and linked to the bank accounts of the beneficiaries. Plus, it is the responsibility of the KVIC to check if the process is done correctly.

Budget 

The government has set a budget of Rs 5500 crore for the Prime Minister's Employment Generation Program, and this budget has also been approved. This budget will be invested in this expansion plan.

With the extension of the term of Prime Minister Employment Generation Program, 15 lakh people of our country will be able to get jobs, and many new projects can be started.

Benefits

  • Any person above the age of 18 years can apply for the Prime Minister Employment Generation Program.
  • If a person starts a project related to the production sector, which is above 10 lakh rupees, then in such a case, that person can apply for this scheme only if he is class VIII pass. That is, if that person is not the eighth pass and starts a project above the amount of 10 lakhs, he will not benefit from this government scheme.
  • On the other hand, if a person begins such a project related to the business and services sector, which is above five lakh, then in such a case, that person will benefit from this scheme only if he passes class VIII.
  • The advantage of the PMEGP scheme will be given only to new projects. Existing projects are excluded from this scheme. Therefore, if you start a new project, only you apply to take advantage of this scheme.
  • If a person is taking advantage of any other program run by the government, then that person cannot apply for this scheme.

Subsidy 

Only those projects for manufacturing sectors will be allowed for a maximum cost of up to INR 25 lakh and similarly only the plans for the business or service sector, which will cost of INR 10 lakh. Under this scheme, the general category people will receive 25% of the project cost as subsidy by the government. These 25% margin money subsidy was only for general category people in rural areas. Simultaneously, for the general category of people of urban areas, the government has fixed the margin money subsidy at 15%.

The beneficiaries who belong to special categories such as SC / ST / Women, money subsidy margin has been fixed at 35% and 25% in rural and urban areas, respectively. As per the rules of this scheme, the per capita investment in the natural area must not exceed INR 1 lakh, and the per capita investment in the hilly areas must not exceed INR 1.5 lakh.

Amendments

  • The government has approved several amendments in the PMEGP scheme, and these amendments are as follows,
  • As per the Cabinet Committee's approval, the program will be expanded for the period 2017-18 and 2019-20.
  • The better performing PMEGP units will be able to upgrade themselves with a subsidy of 15%. Apart from this, a loan amount of INR 1 crore will also be provided by the government.
  • According to the amendments made in this scheme, this scheme will be combined with the Coir Entrepreneur Scheme (CUY). Apart from this, the PMEGP scheme's beneficiaries will also have to provide their Aadhaar and PAN number.
  • The government has fixed 40 percent of the working capital for working units (manufacturing). At the same time, 60 percent of capital has been set by the government for the trade and services sector.
  • According to the new amendment, the government will also provide a ratio of 40:30:30 to DIC, KVIB, and KVIC.
  • The bill also mentions the approval to sell non-vegetarian food in hotels, dhabas, off farms.

Application Process for PMEGP Scheme

Step 1: Visit the PMEGP portal.

Step 2: Now, you have to click on the 'PMEGP online application for individual applicants' ​link on th​at​ page. 

Step 3: On clicking, the application form page will open, and you will have to fill this application form.

Step ​4:​ After filling the application form, you submit it, and in this way, your registration will be done. After registration, you will be given a password along with a user ID, which will be useful in your further processing.

Frequently Asked Questions

Q. What is the PMEGP scheme?

The Central Government had launched the Prime Minister Employment Generation Program to help the small and medium entrepreneurs of our country and to increase employment opportunities in our country.

Q. Who launched the scheme?

The Ministry of MSME launched the scheme.

Q. When was this scheme launched?

The scheme was launched in 2008, and after the successful implementation, it was extended till 2020.

Q. What is the objective of the scheme?

The objective of the scheme is that the government wants to motivate the people of the country to start self-employment ventures and new projects. So, the start of new projects can create employment opportunities in rural and urban areas of the country.

Q. What are the benefits of this scheme?

The primary benefit under this scheme is that the government is giving more subsidies in the projects to be started in rural areas under this scheme. So that people can start projects in rural areas also, and people of these areas do not have to go outside their city or district for employment.

Q. What was the budget for the scheme?

The government has set a budget of Rs 5500 crore for the Prime Minister's Employment Generation Program.

Q. What is the subsidy rate under this scheme?

Under this scheme, the general category people will receive 25% of the project cost as subsidy by the government. The beneficiaries who belong to special categories such as SC / ST / Women, money subsidy margin has been fixed at 35% and 25% in rural and urban areas, respectively.

Q. What is the per capita investment limit?

As per the rules of this scheme, the per capita investment in the natural area must not exceed INR 1 lakh, and the per capita investment in the hilly areas must not exceed INR 1.5 lakh.

Q. What projects are allowed under this scheme?

The projects for manufacturing sectors will be allowed for a maximum cost of up to INR 25 lakh and similarly only the plans for the business or service sector, which will cost of INR 10 lakh


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WRITTEN BYVarsha Verma

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