Prime Minister’s Employment Generation Program

The Prime Minister’s Employment Generation Program (PMEGP) was launched by the Ministry of Micro, Small and Medium Enterprises, Government of India in the year 2008-09. The objective of the scheme is to provide new employment opportunities by promoting industrial and service sector activities in urban and rural areas. The national level implementation and nodal agency is the Khadi and Village Industries Commission, Mumbai. At the state level, the Khadi and Village Industries Board and District Industries Centre act as the implementing agencies. Key provisions of the scheme include: Any individual above the age of 18 can benefit from the scheme. For projects in the manufacturing sector, the minimum educational qualification required is passing the 8th grade, and for projects in the business/service sector, the project cost should not exceed ₹10 lakh and ₹5 lakh respectively. According to the guidelines of the Reserve Bank of India, no collateral security is required for projects up to ₹10 lakh. Margin money is provided for loans up to ₹50 lakh in the industrial sector and up to ₹20 lakh in the service sector. Co-operative societies, charitable trusts, institutions registered under the Societies Registration Act 1860, and self-help groups are also eligible to apply for loans. The loan repayment period ranges from 3 to 7 years. For the general category of men, 15% margin money is provided for urban projects and 25% for rural projects, while candidates from SC/ST/OBC/minority/women/ex-servicemen/divyang categories are eligible for 25% margin money in urban areas and 35% in rural areas. One job is created for every ₹3 lakh of permanent investment. Applications can be submitted online at the provided portal.

• Financial assistance for setting up projects
• Margin money support
• No collateral security for small projects
• Employment generation
• Support for various beneficiary categories

Individuals must be:

• At least 18 years old
• Indian citizens with an Aadhar card
• Non-defaulters from banks

Ineligible activities include:

• Any industry/business related to meat
• Production/manufacturing and sale of addictive substances like bidis, paan, cigars, cigarettes, etc.
• Manufacturing of plastic bags less than 75 microns thick
• Any industry/business related to the cultivation of crops like tea, coffee, rubber, etc.
• Activities prohibited by state or central government.

Online

Applications can be submitted online at PMEGP Portal.
Required documents include:

• Caste Certificate Copy
• Education Qualification Marksheet/Certificate Copy
• Other Documents
• Sowing Certificate Copy

For more information, refer to the guidelines here and the order & circular here.