Prime Minister's Employment Generation Programme
PRIME MINISTER’S EMPLOYMENT GENERATION PROGRAMME (PMEGP)
BACKGROUND
Prime Minister’s Employment Generation Programme (PMEGP) scheme was announced by Hon’ble Prime Minister of India on 15th August, 2008 in his address from Red Fort.
This is a Credit Linked Subsidy Scheme of Govt. of India formed by merging erstwhile Rural Employment Generation Programme (REGP) and Prime Minister’s Rojgar Yojana (PMRY) scheme. It is a central sector scheme administered by the Ministry of Micro, Small and Medium Enterprises (MoMSME).
Khadi & Village Industries Commission is the Nodal Agency at National Level and State KVIC (Khadi and Village Industries Commission) Directorates, State KVIB (Khadi and Village Industries Board) and DICC (District Industries & Commerce Centre) are implementing agencies at the State level.
OBJECTIVES
1.To generate continuous and sustainable employment opportunities in Rural and Urban areas of the country.
2.To provide continuous and sustainable employment to a large segment of traditional and prospective artisans, rural and urban unemployed youth in the country through setting up of micro enterprises.
3.To facilitate participation of financial institutions for higher credit flow to micro sector.
ELIGIBILITY
1.Individuals above 18 years of age.
2.Class-VIII Std. pass required for project above Rs.10.00 lakhs in manufacturing and above Rs.5.00 lakhs for Service Sector.
3.Self Help Groups and Charitable Trusts.
4.Institutions Registered under Societies Registration Act- 1860.
5.Production based Co-operative Societies.
SALIENT FEATURES
1.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 ratio of 30:30:40 between KVIC/KVIB/DICC respectively.
2.No income ceiling for setting up of projects.
3.Assistance under the Scheme is available only to new units to be established.
4.Existing units or units already availed any Govt. Subsidy either under State/Central Govt. Schemes are not eligible.
5.Any industry including Coir Based projects excluding those mentioned in the negative list.
6.Per capita investment should not exceed Rs. 1.00 lakh in plain areas and Rs. 1.50 lakhs in Hilly areas.
7.Maximum project cost of Rs. 25.00 lakhs in manufacturing sector and Rs. 10.00 lakhs in Service Sector.
AREA OF OPERATION
Rural Area:- Scheme to be implemented by KVIC including KVIB and DICC.
(‘Rural Area’ means the area comprised in any Village and includes the area comprised in any town, the population of which does not exceed twenty thousand or such other figure as the Central Government may specify from time to time). Urban Areas are under the purview of DICC only.
QUANTUM OF MARGIN MONEY SUBSIDY
| Categories of beneficiaries under PMEGP | Beneficiary’s own contribution (of project cost) | Rate of Margin Money | |
| Urban | Rural | ||
| General Category | 10% | 15% | 25% |
| Special (including SC/ST/OBC/ Minorities/ Women, Ex-Servicemen, Physically handicapped, NER, Hill and Border areas etc.) | 5% | 25% | 35% |
E-TRACKING UNDER PMEGP
To bring in transparency in implementation of PMEGP scheme as well as to create data base 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 transparency in the decision processes, leads to better governance and prevents corruption in implementation.
The AKVIB has been implementing the PMEGP Scheme since 1995. The achievements during the last 3 years are shown below:-
| Sl No | Year | No. of project | Margin Money | Employment Generation |
| Sanctioned by Bank | Released (In Lakh) | (In Numbers) | ||
| 1 | 2014-15 | 1370 | 1254.079 | 4457 |
| 2 | 2015-16 | 898 | 752.874 | 2651 |
| 3 | 2016-17 | 1030 | 984.52 |
(Up to 31-03-2017)