Prime Minister’s Employment Generation Programme (PMEGP)- All about PMEGP scheme- Guidleines:
Government of India has approved the introduction of a new credit linked subsidy programme called Prime Minister‟s Employment Generation Programme (PMEGP) by merging the two schemes that were in operation till 31.03.2008 namely Prime Minister‟s Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP) for generation of employment opportunities through establishment of micro enterprises in rural as well as urban areas.
* The scheme is administered by the Ministry of Micro, Small and Medium Enterprises (MoMSME)
*The scheme is implemented by Khadi and Village Industries Commission (KVIC)
functioning as the nodal agency at the national level. At the state level, the scheme
is implemented through State KVIC Directorates, State Khadi and Village Industries
Boards (KVIBs), District Industries Centres (DICs) and banks. In such cases KVIC
routes government subsidy
through designated banks for eventual disbursal to the
beneficiaries / entrepreneurs directly into their bank accounts.
*An outlay of Rs.5500.00 Crore has been approved for PMEGP for three financial years (2017-18 to 2019-20) to set up 2.5lakh projects with creation of 20 lakh employment @8 persons per project). In addition 1000 Units will be upgradated in each Financial Year.
Objective of the scheme:
(i) 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.
(iii) To provide continuous and sustainable employment to a large segment of traditional and prospective artisans and rural and urban unemployed youth in the country, so as to help arrest migration of rural youth to urban areas.
(iv) To increase the wage earning capacity of artisans and contribute to increase in the growth rate of rural and urban employment.
Financial assistance and promoter's contribution:
Funds under PMEGP Scheme will be available under two major heads
1. Margin Money Subsidy
(i) Funds will be allocated under annual Budget Estimates towards disbursement of Margin Money for setting up of new micro enterprises(units) ; and
ii) From the funds allocated under BE for the Margin Money subsidy, Rs. 100 cr or as approved by the competent authority will be earmarked for each FY towards disbursement of Margin Money for upgradation of existing PMEGP units.
2. Backward and Forward Linkages :
5% of the total allocation under BE for a Financial Year against the PMEGP shall be earmarked as funds under Backward and Forward Linkages and will be utilized for arranging awareness camps, exhibitions, bankers meeting, TA/DA, publicity, EDP, Physical verification, concurrent evaluation, etc. and settlement of other residual liabilities by the KVIC.
Levels of funding under PMEGP :
Eligibility Conditions of Beneficiaries :
For PMEGP new enterprises (Units)
(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 Iakh 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.
(iv) Assistance under the Scheme 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 subsidy 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.
Other eligibility conditions for PMEGP (New units):
(i)Projects without Capital Expenditure are not eligible for financing under the Scheme. Projects costing more than Rs.5 lakh, which do not require working capital, need clearance from the Regional Office or Controller of the Bank's Branch and the claims are required to be submitted with such certified copy of approval from Regional Office or Controller, as the case may be.
(ii) Cost of the land should not be included in the Project cost. Cost of the ready built shed as well as long lease or rental Work-shed/Workshop can be included in the project cost subject to restricting such cost of ready built as well as long lease or rental workshed/workshoP to be included in the project cost calculated for a maximum period of 3 years only.
(iii) PMEGP is applicable to all new viable micro enterprises, including Village Industries projects except activities prohibited by local Government/Authorities keeping in view environment or socio-economic factors and activities indicated in the negative list of the guidelines (Para 30 of the guidelines refers)
(iv)Trading activities
(a) Business / trading activities in the form of sales outlets may be permitted in NER, LWE-affected districts and A & N Islands. (
b) Retail outlets/business - selling Khadi products, Village Industry products procured from Khadi and Village Industry Institutions certified by KVIC and products manufactured by PMEGP/SFURTI units only may be permitted under PMEGP across the country.
(c) Retail outlets backed by manufacturing (including processing) / service facilities may be permitted (across the country).
(d) The maximum cost of the project for business / trading activities as above [(a) and (b)] may be Rs.10 lakh (at par with the maximum project cost for service sector).
(e) Maximum 10% of the financial allocation in a year in a state may be used for business / trading activities as above [(a), (b) and (c)].
(v) Transport activities
Transport activities viz purchase of Cab/Van/ Boat/Motor Boat/Shikara etc for transportation of tourists or general public will be allowed. A ceiling of 10% on the extent of projects financed under transport activities will be imposed in all areas except NER, hilly region, LWE-affected districts and A & N Islands, Goa, Puducherry, Daman & Diu, Dadra Nagar Haveli, J&K, Lakshadweep or other specific areas as may be declared so by the Government.
Note:
(1) The Institutions/Production Co-operative Societies/Trusts specifically registered as such and SC/ ST/ OBC/ Women/ Physically Handicapped / ExServicemen and Minority Institutions with necessary provisions in the byelaws to that effect are eligible for Margin Money (subsidy) for the special categories. However, for Institutions/Production Cooperative Societies/Trusts not registered as belonging to special categories, will be eligible for Margin Money (Subsidy) for general category.
(2) Only one person from one family is eligible for obtaining financial assistance for setting up of projects under PMEGP. The 'family' includes self and spouse.
For up-gradation of existing PMEGP/MUDRA units:
(i) Margin Money claimed under PMEGP has been successfully
adjusted,
(ii) First loan under PMEGP/MUDRA has been successfully
repaid in
stipulated time.
(iii) The unit is profit making with good turnover and having
potential for
growth in turnover and profit with modernization/upgrading
the
technology.
Implementing Agencies :at the national level :
Khadi and Village Industries Commission (KVIC), Mumbai, a statutory body created by the Khadi and Village Industries Commission Act, 1956, which will be the single nodal agency at the national level
At the State level:
Identification of beneficiaries:
Entrepreneurship Development Programme (EDP) -PMEGP
The objective of EDP is to provide orientation and awareness pertaining to various managerial and operational functions like finance, production, marketing, enterprise management. banking formalities, bookkeeping, etc. The duration of the training would be for atleast 5 days for projects with project cost upto Rs.10 lakh and for project with cost above Rs.10 lakh, the duration of EDP would be atleast 10 days. The training will include interaction with successful rural entrepreneur, banks as well as orientation through field visits. The EDP will be conducted through KVIC, KVIB Training Centers as well as Accredited Training Centers run by Central Government, NSIC, the three national level Entrepreneurship Development Institutes (EDIs), i.e., NIESBUD, NIMSME and 11E, and their partner institutions under the administrative control of Ministry of MSME, State Governments, Banks, Rural Development and Self Employment Training Institutes (RUDSETI) reputed NGOs, and other organizations / institutions, identified by the Government from time to time. EDP will be mandatory for all the PMEGP beneficiaries. However, the beneficiaries who have undergone EDP earlier of duration not less than two weeks through KVIC/KVIB or reputed Govt.training centers will be exempted from undergoing fresh EDP. The training centres / institutes will be identified by KVIC and extensive publicity will be provided about the training centres / institutes, content of courses available, duration, etc. by circulating the same to all the Implementing Agencies.
The applicants, who have already undergone training of at least 2 weeks under Entrepreneurship Development Programme (EDP) / Skill Development Programme (SDP) / Entrepreneurship cum Skill 6 Development Programme (ESDP) or Vocational Training (VT) need not undergo EDP training again. Such applicants would also be given priority in selection.
Download full gudelines issued by Govt of india. (PDF)
- All about PMEGP scheme){kind=link}
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