Prime Minister Employment Generation Programme (PMEGP)

Prime Minister Employment Generation Programme (PMEGP)


This Prime Minister Employment Generation Programme (PMEGP) scheme is controlled by Ministry of Micro, Small and Medium Enterprises, Govt. of India.
This scheme is started by Khadi & Village Industries Commission (KVIC), Govt. of India as single nodal agency at National Level.  At State Level, the Scheme is to be implemented by State Khadi & Village Industries Boards (KVIBs) in rural areas and by District Industries Centres (DICs) in Urban areas.

The Delhi Govt. has decided to allow the DKVIB to operate both in Rural and Urban Areas so as to enhance their functional operations keeping in view the shrinking of Rural Areas in Delhi on account of urbanization and regularization of many unauthorized colonies in Delhi by the Govt.
The salient features of this scheme are as under: –Prime-Minister-Employment-Generation-Programme-Scheme

(i) Quantum and Nature of Financial Assistance: –

The maximum cost of project/unit admissible under manufacturing sector is Rs.25 lacs.
The maximum cost of project/unit admissible under business / service sector is Rs.10 lacs.

Categories of beneficiaries under PMEGP        Beneficiary’s contribution
       (of  project cost)
Rate of Subsidy (of project cost)Term loan
Area (location of project / unit)UrbanRuralThe balance amount of the total project cost will be provided by Banks as term loan.
General Category10%15%25%
Special (including SC/ST etc.)05%25%35%


Name of the schemePrime Minister’s Employment Generation Programme (PMEGP)
1About the SchemeThe Government of India, have merged Rural Employment Generation Programme ( REGP) with Prime Minister Rozgar Yojana (PMRY) and introduced a new scheme called Prime Minister Employment Generation Programme (PMEGP) w.e.f.01.04.2008 (As such PMRY scheme is closed).
2.Objectivei) 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.

ii) To bring together widely dispersed traditional artisans /rural and urban unemployed youth and give them self-employment opportunities to the extent possible, at their place.

3.Purpose of LoanFor setting up of eligible viable activities underPrime Minister Employment Generation Programme (PMEGP) scheme.
4.Nature of Credit FacilityTerm loan & Cash Credit facility.
5.Eligibility Conditionof Beneficiaries


(i) Any individual, above 18 years of age
(ii) There will be no income ceiling for assistance for setting up projects under PMEGP.
(iii) For setting up of project costing above Rs.10 lakh in the manufacturing sector and above Rs.5lakh in the business /service sector, the beneficiaries should possess at least VIII standard pass educational qualification .
(iv) Assistance under the Schemes is available only for new projects sanctioned specifically under the PMEGP.
(v) Self Help Groups (including those belonging to BPL provided that they have not availed benefits under any other Scheme) are also eligible for assistance under PMEGP.
(vi) Institutions registered under Societies Registration Act,1860;
(vii) Production Co-operative Societies, and
(viii) Charitable Trusts.
(ix) 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.

and Nature of Financial Assistance :


The details of Beneficiaries contribution and rate of subsidy are as under :

Categories of beneficiaries under PMEGPBeneficiarycontribution project costRate of Subsidy (of project cost)
Area (location of project/unit) UrbanRural
General Category10%15%25%
Special (including SC/ST/OBC/Minorities/ Women, Ex-servicemen, Physically, NER, handicapped, Hill and Border areas etc 




7.Maximum cost of project :


(i)The maximum cost of the project/unit admissible under manufacturing sectors is Rs. 25 lakh.

(ii) The maximum cost of the project/unit admissible under business / service sector isRs.10 lakh.

8.Nodal Agency Khadi and Village Industries Commission (KVIC) will be the single National level nodalimplementation agency for PMEGP .
At the State level, the Scheme will be implemented through State KVIC Directorates, State Khadiand Village Industries Boards (KVIBs) and District Industries Centers (DICs) and banks.


All the branches of Dena Bank.

Any person interested to avail loan under the said scheme may contact nearest branch for further details.