Prime Minister Employment Generation Program

DEFINITION OF VILLAGE INDUSTRY AND RURAL AREA FOR PMEGP

Areas under Panchayati Raj Institutions will be counted as rural areas, while those under municipal corporations will be treated as urban areas

DEFINITION OF VILLAGE INDUSTRY AND RURAL AREA FOR PMEGP

All implementing agencies are allowed to receive and process applications irrespective of rural or urban category.

FEATURES

• Special Package of subsidy to promote rural industrialization.
• Empowering Entrepreneurs through Skill Development and Entrepreneurial Development Program (EDP)
• A new Central Sector Scheme of Govt. of India by merging REGP and PMRY scheme.
• State Khadi & V.I. Board and District Industries Centre of State Government have also been associated in implementation of the program.

OBJECTIVES

• 
  To facilitate the creation of employment opportunities for youth across the country by helping them to set up micro-enterprises in non-farm sectors.
• 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.
• 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.
• To increase the wage earning capacity of artisans and contribute to increase in the growth rate of rural and urban employment.

Eligibility Criteria

• Individual Entrepreneurs Only
• There will be no income ceiling for Assistance for setting up projects under PMEGP
• Individuals with age of 18 years or more
• Passing standard VIII is required for a project above Rs 5 lakh in the service sector and above Rs 10 lakh in the manufacturing sector

Quantum of Loan

• Manufacturing – 25 Lakh to 50 Lakh
• Service -10 lakh to 20 lakh

(To Entrepreneur for setting up new Manufacturing & Service Unit)

Extension of Scheme from 2021-22 to 2025-26

Lock in period for Govt. Subsidy – 3 Years

THOSE WHO ARE NOT ELIGIBLE

• Existing Units and the units that have already availed any Government Subsidy (under PMRY, REGP, PMEGP,CMEGP or any other scheme of Government of India or State Government) are not eligible.
• Projects without Capital Expenditure (Term Loan) are not eligible.
• Cost of Land cannot be covered under the project cost.
• All Implementing Agencies (KVIC, KVIB, DIC and Coir Board) can process applications in both rural as well as urban areas.
• Applicant should possess valid Aadhar Number.
• Applicant shall give his/her consent to authenticate demographic details such as Aadhar number, Name, Gender, Date of Birth and Mobile number from UIDAI server.

EDP TRAINING

• Before MM Claim through PMEGP e-portal
• EDP training of 10 working days for Project cost More than 5.00 lakhs.
• 5 Working days training for up to Project Cost 5.00 lakhs by the beneficiary is compulsory.
• EDP Training is not mandatory for Projects Up to Rs.2.00 Lakhs.

SECURITY

• As per RBI guidelines the project costing up to Rs.10.00 lakhs under PMEGP loans are free from collateral security. The CGTMSE provided collateral guarantee for the project up to Rs. 2.00 Crore

NEGATIVE LIST OF ACTIVITIES

• Any Industry/Business connected with Meat(Slaughtered), i.e. processing, canning and/or serving items made of it as food, Production/Manufacturing or sale of intoxicant items like Beedi/Paan/Cigar/Cigarette etc. Hotels or Dhaba or Sales outlet serving liquor, preparation/producing tobacco as raw materials, tapping of toddy for sale will not be allowed.
• However, serving/selling non-vegetarian food at Hotels/Dhabas will be allowed
• Activities prohibited by Local Government/Authorities keeping in view environment or Socio-economic factors will not be allowed.
• Manufacturing of polythene carry bags of less than 75 microns thickness and 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. Thickness of polythene carry bags shall be governed by the Ministry of Environment, Forest and Climate changes notification for plastic waste management rules and amendments from time to time.
• Any Industry/Business connected with cultivation of crops/plantation like Tea, Coffee, Rubber etc. sericulture (Cocoon rearing), Horticulture, Floriculture, Animal Husbandry will not be allowed.
• However, value addition under these will be allowed under PMEGP. Off Farm/Farm Linked activities in connection with sericulture, horticulture, floriculture etc. will be allowed.
• Following industry/Business connected with Animal Husbandry will also be allowed:
• Dairy-Milk and other dairy products through primarily Cows but also sheep, goats, camels, buffaloes, horses, and donkeys.
• Poultry-Poultry, kept form their eggs and for their meat, include chickens, turkeys, geese and ducks.
• Aquaculture-It is the farming of aquatic organisms including fish, molluscs, crustaceans and aquatic plants.
• Insects -Including Bees, Sericulture, etc.

(As a special case piggery, which is a major source of livelihood in NER may also be allowed in NER states only).

FINANCIAL AGENCIES

• All Public Sector Banks.
• Regional Rural Banks (RRB) Co-operative Banks.
• SIDBI and Private Scheduled Commercial Banks

(Regulated by RBI and approved by SLMC of concern State)

REQUIRED DOCUMENTS

• Passport Size Photo
• Aadhar Card
• Pan Card
• Project Report / Summary
• Population Certificate
• Bank Details
• Caste Certificate (if Belongs to SC , ST, OBC , Minority)
• Highest Qualification / Technical Certificate

PROCEDURE TO APPLY ONLINE PMEGP SCHEME APPLICATION FORM

• Visit the Official Website of Prime Minister Employment Generation Program i.e. www.kviconline.gov.in.
• On the Homepage, Click on the Option “PMEGP Option” button.
• On this page you will see the option of PMEGP E -Portal.
• After that, you have to click on the option of Online Application Form of Individual.
• Application Form page will be displayed on the screen.
•  Now, fill out the entire form by entering details like name, sponsoring agency, type of activity, first financing bank and so on.
• When completed, click on ‘save applicant data’
• Then, upload documents and prepare for final submission.
• Click on Submit Button for the final submission of the application.
• Post final submission, you will get an application ID and a password sent to your registered mobile number.