Prime Minister Employment Generation Programme (PMEGP)

2 years ago Sarkari user 1

Scheme for providing financial assistance to set up new enterprises under PMEGP


The aim of the Prime Minister Employment Programme (PMEGP) is to create employment opportunities in rural and urban areas by Entrepreneurs ventures and project or micro enterprises. PMEGP was launched on 15th August 2008 to give power to the first generation entrepreneurs to create micro enterprises. PMEGP is a credit-linked subsidy programme launched by Ministry of MSME in 2008-09 for creation of employment in both rural and urban area of the country.


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

General Category: Beneficiary’s contribution (of project cost) 10%

Rate of Subsidy (of project cost)- (Urban 15%), (Rural 25%)

Special (including SC / ST / OBC / Minorities / Women, Ex-servicemen, Physically handicapped, NER, Hill and Border areas,  : 

Beneficiary’s contribution (of project cost) 05%

Rate of Subsidy (of project cost)- (Urban 25%), (Rural 35%)

Note: The balance amount of the total project cost will be provided by Banks as term loan as well as working capital.

Prime Minister Employment Generation Programme (PMEGP)
Prime Minister Employment Generation Programme (PMEGP)


Any individual, above 18 years of age. At least VIII standard pass for projects costing above Rs.10 lac in the manufacturing sector and above Rs. 5 lakh in the business / service sector. Only new projects are considered for sanction under PMEGP. Self Help Groups (including those belonging to BPL provided that they have not availed benefits under any other Scheme), Institutions registered under Societies Registration Act,1860; Production Co-operative Societies, and Charitable Trusts are also eligible.
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.

How to Apply:

The State/Divisional Directors of KVIC in consultation with KVIB and Director of Industries of respective states (for DICs) will give advertisements locally through print & electronic media inviting applications along with project proposals from prospective beneficiaries desirous of establishing the enterprise/ starting of service units under PMEGP.

The beneficiaries can also submit their application online at and take the printout of the application and submit the same to respective offices along with Detailed Project Report and other required documents.

If you require any further information, let me know in the comment box.