PMEGP

Prime Minister's Employment Generation Programme (PMEGP)

Ministry of Micro, Small and medium enterprises, Government of india

Operative period of scheme:-13.05.2022 to 2025-26
Objectives:-
- To generate employment opportunities in rural as well urban areas of the country through setting up of new self- employment ventures/projects/micro enterprises.
- 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.
Benefits available to Only for Micro Unit
- 1. New unit
- 2. Expansion of PMEGP/REGp/MUDRA Unit
ACTIVITIES COVERED UNDER THIS SCHEME All Sectors are eligible for assistance under this scheme.

Subsidy Cap

1. FOR NEW MICRO ENTERPRISE

"Categories of beneficiaries under PMEDP ( for setting up of new enterprises )"	Promotor's Contribution	Rate of subsidy
Area ( location of project/unit )	-	Urban	Rural
General Category	10%	15%	25%
Special Category	5%	25%	35%

Maximum Cost of project eligible for subsidy

Sector	Eligible Cost of project
For Manufacturing Sectors	50 Lakhs
For Service Sectors	20 Lakhs

2. FOR 2ND LOAN UPGRADATION OF EXISTING PMEGP/ REGP / MUDRA UNITS

Categories of beneficiaries under PMEDP ( for upgradation of existing units )	Promotor's Contribution (of project cost)	Rate of subsidy (of project cost)
All Categories	10%	15% (20% in NER and Hill States)

Maximum Cost of project eligible for subsidy

Sector	Eligible Cost of project	Maximum Subsidy benefit
For Manufacturing Sectors	100 Lakhs	15 lacs (Rs.20 lakh for NERand Hill States )
For Service Sectors	25 Lakhs	3.75 lacs (Rs.5 lakh for NERand Hill States )

Project Cost:-

Cost of plant & machinery and Working capital are components of project cost, excluding land, subject to Working capital margin should not be more than 40% of project cost

Other important eligibility conditions

Assistance available for new projects under PMEGP
Any individual , above 18 years
Only one person can avail benefit from one family ( family includes self and spouse )
For setting up Project above 10 lacs and 5 lacs for manufacturing sector and service sector respectively, should possess at least 8 pass educational qualification.
Cost of land would not be include in project cost
Training of minimum 10 days/60 hours of entrepreuner is complusory
Subsidy application shall be made to implementing agency before sanction of term loan.

Plant & Machinery

Only new plant & machinery is eligible. Second hand machinery would not be eligible for assistance

Spare & Accesserioes of main Plant & Machinery.

Yes, assistance on spare & accessories of main plant & machinery is available.

Location of Machinery

Anywhere in India

Timeline for Machinery Installation

No time line

Machinery Specification

Technological upgraded

Term loan conditions:
Qualified lending institution	only RBI approved bank is allowed
Sanction date	-
Maximum loan	For General Category - 90% of Project Cost For Special Category - 95% of Project Cost
Tenure of loan (Minimum )	Between 3 to 7 years
Transfer of existing loan	Not allowed
Project financed by more than one Banks	Unit would not be eligible for assistance under PMEGP
Where subsidy be credited/Kept	Subsidy will be kept as TDS for 3 years from date of reference date. After completion of 3 years, subsidy amount will be credited in term loan account of beneficiary.