Overview
The Prime Minister’s Employment Generation Programme (PMEGP) is a flagship scheme launched in 2008 by the Ministry of Micro, Small and Medium Enterprises (MSME) to promote self-employment by supporting individuals in setting up new micro-enterprises in both rural and urban areas. It merges two earlier schemes — PMRY and REGP — into one unified platform.
Objectives
- Generate employment opportunities for youth and artisans.
- Promote self-reliance and rural industrialization.
- Encourage micro and small enterprises through financial aid and training.
Eligibility
- Individuals above 18 years.
- Minimum 8th pass for higher-value projects.
- SHGs, co-operative societies, and registered institutions are eligible.
- Only new projects qualify.
Financial Assistance
- Manufacturing sector: Up to ₹50 lakh.
- Service sector: Up to ₹20 lakh.
- Loans are supported by government subsidy and margin money.
Subsidy Rates
| Category | Urban | Rural |
|---|---|---|
| General | 15% | 25% |
| Special (SC/ST/OBC/Women/PH etc.) | 25% | 35% |
Application Process
- Apply online via KVIC portal.
- Submit documents and project report.
- Application is reviewed by KVIC/KVIB/DIC and sent to banks.
- Approved loans are disbursed with linked subsidy.
Training and Support
Related Posts
- Mandatory Entrepreneurship Development Programme (EDP) training.
- Conducted by RSETIs, KVIC, and MSME institutes.
- Teaches business, finance, marketing, and digital skills.
Key Sectors Covered
- Food processing
- Handicrafts
- Textile & garments
- Beauty parlors
- Repair services
- E-commerce and digital services
Monitoring
- KVIC and state-level bodies monitor performance.
- Units are geo-tagged for digital tracking.
- Regular evaluations and impact studies are done.
Challenges
- Delay in loan sanctioning.
- Low awareness in rural areas.
- Difficulty accessing bank credit beyond ₹10 lakh.
- Limited EDP training centers.
Recent Enhancements
- Higher loan ceilings.
- Easier norms for backward regions.
- Second loan facility under PMEGP 2.0.
- Digital application and tracking system.
Impact and Success
- Created lakhs of employment opportunities.
- Empowered rural youth, women, and artisans.
- Promotes Make in India and Atmanirbhar Bharat vision.
Comparison with Other Schemes
| Scheme | Key Feature |
|---|---|
| PMEGP | Subsidy + Loan for new businesses |
| MUDRA | Loan only for existing micro units |
| Stand-Up India | Loans for SC/ST and Women entrepreneurs |
| Startup India | Funding for tech-based innovation startups |
Conclusion
PMEGP is a transformative initiative to generate jobs, encourage entrepreneurship, and foster inclusive economic growth. With a focus on self-employment, training, and financial inclusion, it supports the government’s mission of building a self-reliant India.
