Prime Minister’s Employment Generation Programme [PMEGP]

PMEGP is credit linked Scheme of Govt. of India by merging erstwhile REGP and PMRY scheme. 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 / DIC respectively.

Objectives

To generate employment opportunities in rural as well as urban areas of the country through setting up of new self-employment ventures/projects/micro enterprises

Beneficiaries

PMEGP is applicable to all new viable micro enterprises, including Village Industries projects except activities indicated in the negative list of Village Industries. Existing/old units are not eligible

Level of Financial Assistance:

• Note:
  1. The maximum cost of the project/unit admissible for Margin Money subsidy under Manufacturing sector is Rs. 50 lakhs
  2. The maximum cost of the project/unit admissible for Margin Money subsidy under Business/Service sector is Rs. 20 Iakhs.
  3. The balance amount (excluding the own contribution)of the total project cost will be provided by Banks.
  4. If the total project cost exceeds Rs. 50 lakhs or Rs. 20 Iakhs for Manufacturing and Service/Business sector respectively, the balance amount may be provided by Banks without any Government subsidy.
  5. Urban area includes Municipality & Corporation; Rural area includes village/Panchayat.

• 2nd Loan for upgradation of existing PMEGP / REGP / MUDRA units
  1. The maximum cost of the project/unit admissible for Margin Money subsidy under Manufacturing sector for upgradation is Rs. 1.00 crore. Maximum subsidy would be Rs.15 lakh (Rs.20 lakh for NER and Hill States).
  2. The maximum cost of the project/unit admissible for Margin Money subsidy under Business/Service sector for upgradation is Rs. 25 lakh. Maximum subsidy would be Rs.3.75 lakh (Rs.5 lakh for NER and Hill States).
  3. The balance amount (excluding the own contribution)of the total project cost will be provided by Banks.
  4. If the total project cost exceeds Rs. 1.00 Crore or Rs. 25.00 Iakhs for Manufacturing and Service/Business sector respectively, the balance amount maybe provided by banks without any Government subsidy.

Eligibility Conditions of Beneficiaries:

• Any individual, above 18 years of age
• There will be no income ceiling and no upper age limit for assistance for setting up projects under PMEGP.
• For setting up of project costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business /service sector, the beneficiaries should possess at least VIII standard pass educational qualification.
• Assistance under the scheme is available only for new projects sanctioned specifically under the PMEGP.
• Existing Units (under PMRY, REGP or any other scheme of Government of India or State Government) and the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are not eligible.

Negative list of Activities:

Any Industry / Business connected with Meat(slaughtered), i.e., processing, canning and/or serving items made of it as food, production/Manufacturing or sale of intoxicant items like Beedi/Pan/ Cigar/Cigarette etc., any Hotel or Dhaba or sales outlet serving liquor, preparation/producing tobacco as raw materials, tapping of toddy for sale will not be allowed.

1. However, serving/selling non-vegetarian food at Hotels/Dhabas will be allowed.
   • Activities prohibited by Local Government/Authorities keeping in view environment or socio-economic factors will not be allowed.
   • Manufacturing of polythene carry bags of less than 75 microns thickness and manufacture of carry bags or containers made of recycled plastic for storing, carrying, dispensing or packaging of food stuff and any other item which causes environmental problems. Thickness of polythene carry bags shall be governed by the Ministry of Environment, Forest and Climate Change notification for plastic waste management rules and amendments from time to time.
   • Any Industry/Business connected with cultivation of crops/plantation like Tea, Coffee, Rubber etc. sericulture (Cocoon rearing), Horticulture, Floriculture, Animal Husbandry will not be allowed.(a)However, value addition under these will be allowed under PMEGP. Off Farm/Farm Linked activities in connection with sericulture, horticulture, floriculture etc. will also be allowed.

Following industries / Business connected with Animal Husbandry will also be allowed:

1. Following industries / Business connected with Animal Husbandry will also be allowed:
2. Poultry - Poultry, kept for their eggs and for their meat, include chickens, turkeys, geese and ducks.
3. Aquaculture — It is the farming of aquatic organisms including fish, molluscs,crustaceans and aquatic plants.
4. Insects - including Bees, Sericulture, etc.

(As a special case piggery, which is a major source of livelihood in NER may also be allowed in NER states only)

Scheme Related GO's

1. Guidelines
2. Circular- Policy Decision on receipt of applications in physical form under PMEGP

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Directorate of Industries Commerce, Vikas Bhavan P.O,Thiruvananthapuram Kerala 695033

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