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Prime Minister Employment Generation Program (PMEGP)

Year of commencement: 2008-2009


To generate sustainable employment opportunities in Rural and Urban areas of the country by promoting new and self-employment ventures, it aims to reduce unemployment and underemployment, particularly among educated and unemployed youth. It was introduced in 2008 by merging 2 earlier schemes, PMRY (Prime Minister Rojgar Yojana) and REGP (Rural Employment Generation  Program).

Eligibility :

  • Any individual, above 18 years of age
  • There will be no income ceiling for assistance for setting up projects under PMEGP.
  • For setting up of project costing above Rs.10 lakh 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.
  • Assistance under the scheme is available only for new projects sanctioned specific

    Project Cost :

  • The maximum cost of the project/unit admissible for margin money subsidy under manufacturing sector is ₹ 50 Lakh.
  • The maximum cost of the project/unit admissible for margin money subsidy under service sector is ₹ 20 Lakh.

  • 10 % for General Category
  • 5% for Special category (including SC/ST/OBC, Minorities, Women, Ex-Servicemen, Transgender, Differently abled/NER, Aspirational Districts,  Hills & Border Areas etc.)

  • General category – 15% for Urban Area 25% for Rural Areas.
  • Special category -  25% for Urban Areas 35% for Rural Areas .

    Nodal Agency :
  • 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.