PMEGP Scheme: Know Subsidy, Eligibility, and More

The Prime Minister Employment Generation Programme (PMEGP) is a Government of India-backed credit-linked subsidy scheme. Under this scheme, beneficiaries can get a subsidy amounting to 15-35% of the project cost from the government. PMEGP is an initiative of the Ministry of Micro, Small and Medium Enterprises and is implemented at a national level by the Khadi and Village Industries Commission (KVIC). As an entrepreneur, PMEGP can give you the financial assistance required to set up a new project. Read on to know more about the PMEGP scheme.

Eligibility Criteria for Prime Minister’s Employment Generation Programme (PMEGP) Scheme

Eligibility Requirement

Details

Age

Applicants must be above 18 years of age.

Education

Minimum educational qualification of at least the 8th standard is required.

Citizenship

Applicants must be Indian citizens and residents of India.

New Projects Only

Only new projects are considered for sanction; existing units are not eligible.

Eligible Entities

Individual entrepreneurs, Self-Help Groups (SHGs), registered institutions, production-based cooperative societies, and trusts.

Exclusions

Units existing under previous government schemes or availed subsidies from other schemes are not eligible.

 

Benefits of PMEGP (Prime Minister’s Employment Generation Programme)

1. Financial Assistance

One of the primary features of the PMEGP scheme is the provision of financial assistance to individuals seeking to establish micro-enterprises. It offers a maximum subsidy of Rs. 25 lakh for businesses in the manufacturing sector and up to Rs. 10 lakh for those in the business or service sector. This support aims to enable the establishment and growth of small businesses, thereby promoting entrepreneurship and self-employment.

PMEGP Subsidy Amount Overview

Sector Maximum Subsidy Amount

Manufacturing Rs. 50 lakh

Business/Service Rs. 20 lakh

1. Subsidy Rates

Under the PMEGP scheme, subsidy rates vary based on the category and location of the applicant. General category applicants are eligible for a subsidy rate of 15% in urban areas and 25% in rural areas.

Special category beneficiaries, including SC/ST/OBC/minorities/women, ex-servicemen, and others, receive higher subsidy rates of 25% in urban areas and 35% in rural areas. These subsidy rates significantly reduce the financial burden on applicants, making capital more accessible.

Category Subsidy Rate in Urban Areas Subsidy Rate in Rural Areas

General 15% 25%

Special 25% 35%

(SC/ST/OBC/minorities/women, ex-servicemen, etc.)

 

What are the documents required for PMEGP scheme?

Given below are the documents required to apply for scheme:

• Aadhar card
• Passport size photo
• Pan card
• Highest educational qualification certificate
• Machine Quotation
• EDP training certificate Contact for more Information
• GST certificate (if available)
• Project report summary/detailed project report
• Social/Special category certificate, if applicable
• Rural area certificate if applicable

 

Which activities/businesses are not eligible for PMEGP scheme?

There is a negative list of activities that are not permitted according to the PMEGP scheme guidelines.

• Processing, canning and/or serving items made of meat.
• Manufacturing or sale of intoxicant items like beedi/pan/ cigar/cigarette.
• Sales outlet serving liquor.
• Activities prohibited by local government/authorities keeping in view environment or socio-economic factors.
• Manufacturing of polythene carry bags of less than 75 microns thickness and I 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.
• Any Industry/Business connected with the cultivation of crops or plantations like tea, coffee, rubber etc. sericulture (cocoon rearing), horticulture, and floriculture.

For more Guidance, Get in touch with an maxsubsidy.com Business Expert. Max Subsidy Center can also help you obtain PMEGP SUBSIDY