Prime Minister Employment Generation Programme (PMEGP / KVIC Subsidy)
Prime Minister Employment Generation Programme (PMEGP / KVIC Subsidy)
PMEGP Objectives
PMEGP aims to generate sustained employment, especially for artisans and unemployed youth in the non-farm sector, reduce rural-urban migration by providing local jobs, and alleviate poverty and unemployment to foster inclusive growth in all societal sections.
- Create continuous new employment opportunities.
- Promote entrepreneurship in the non-farm sector.
- Provide local employment to curb migration.
- Support balanced economic development and higher living standards.
Financial Assistance
New Micro-enterprises:
- Urban: 15% subsidy (General), 25% (Special category).
- Rural: 25% subsidy (General), 35% (Women, SC, ST, OBC, minorities).
- Maximum project cost: Manufacturing ₹50 lakh; Service/Trade ₹20 lakh.
Upgradation of Existing Units:
- Subsidy: 15–20%.
- Max financial assistance: ₹1 crore (manufacturing), ₹25 lakh (service/trade).
- Units must demonstrate profits and timely repayment of any previous PMEGP/REGP/MUDRA loans.
Eligibility
- Age above 18 years.
- Minimum 8th-grade pass if project cost exceeds ₹10 lakh in manufacturing or ₹5 lakh in services.
- Should not have availed subsidy under other schemes like PMRY or REGP.
Application and Documents
Applicants must apply online through the PMEGP portal and provide:
- PMEGP application form and detailed project/business plan.
- Education certificates and category-based certificates for special groups.
- Proof of residence (rural or urban) and registration certificates.
- Completion of compulsory Entrepreneurship Development Program (EDP) training is required prior to loan disbursement.
Significance and Exam Relevance
The scheme helps preserve traditional crafts, promotes local enterprises in economically weaker areas, reduces regional disparities, and increases job opportunities and economic participation. PMEGP is relevant for competitive exams focused on rural employment, economic decentralization, and poverty alleviation.
Future Directions
Plans include increasing financial limits for special categories and expanding the types of activities eligible under the scheme.