Prime Minister's Employment Generation Programme, India
There is good news to unemployed people because MSME (Ministry of Micro, Small and Medium Enterprises) proposed a credit linked subsidy program named PMEGP (Prime Minister's Employment Generation Programme).
The government of India introduced this on August 15, 2008 by merging two schemes called REGP (Rural Employment Generation Programme) and PMRY (Prime Minister's Rojgar Yojana).
Objectives of the Programme
PMEGP was launched to generate employment opportunities by establishing micro enterprises in urban as well as in rural areas. Here are the objectives of this program:
- Increase artisans’ wage earning capacity and contribute to raise the growth rate of urban and rural employment.
- Provide sustainable and continuous employment to a huge portion of prospective and traditional artisans as well as urban and rural unemployed youth to help arrest rural youth to urban areas migration.
- To bring widely dispersed traditional artisans/urban and rural unemployed youth together in order to give them opportunities for self-employment.
- To generate employment opportunities for both urban and rural country areas by setting up new self-employment micro enterprises/projects/ventures.
Nature of Financial Assistance
The approval of this proposal came from Cabinet Committee on Economic Affairs. The subsidy levels or cost limit of units or projects that could be established was extended to the rural areas as well. To ensure inclusive growth, higher subsidy levels are given to those beneficiaries that belong to marginalized society sections like Schedule Tribes, Schedule Castes, Women, Minorities, Other Backward Classes, Physically Handicapped, etc.
Subsidy levels under PMEGP Include:
|Categories of beneficiaries under PMEGP||Owner’s contribution||Rate of Subsidy|
|(of cost of Project)|
|Special (including SC/STs/OBCs/Minorities/ Women, Ex-servicemen, Physically Handicapped, NER, Hill and Border Areas )||05%||25%||35%|
Eligibility of Beneficiaries
Here is a list of eligibility conditions for those who want to be beneficiaries of this program:
- Any individual as long as he or she is 18 years old and above.
- For setting up PMEGP projects, no income ceiling is required for assistance.
- Beneficiaries should have a standard pass educational qualification at least for setting up project in the manufacturing section costing over Rs.10 lakh and in the service/business sector above Rs. 5 lakh.
- Only new projects specifically sanctioned under PMEGP is available for assistance under the scheme.
- Self Help Groups that have not availed of any benefit from other schemes are also eligible for this assistance.
- Charitable Trusts
- Production Co-operative Societies
- Institutions registered under the Societies Registration Act 1860
- Those existing units (under REGP, PMRY, or other schemes under State Government or Government of India) as well as those units that have previously availed any Government Subsidy are not eligible here.
Other Eligibility Conditions Include the Following:
- PMEGP is also applicable to new viable micro enterprises including the projects of Village industries except those listed in negative activities.
- For application of institutions, certified copy of bye-laws is required to be attached to Margin Money (subsidy) claim.
- Certified copy of community/caste certificate or other relevant document that’s issued by any competent authority. In case of special categories, this is required to be produced to the branch of the concerned bank along with Margin Money (subsidy) claim.
- Project cost will include one cycle of Working Capital and Capital Expenditure. Projects costing over Rs. 5 lakh does not require working capital and does not need clearance from Bank’ Branch Controller or Regional Office – claims are required and should be submitted with a copy of certified approval from Controller or Regional Office. Take note that projects without Capital Expenditure will not be eligible under this financing scheme.
- The cost of the land should be included in Project cost. Rental or long lease Workshop/Workshed as well as ready built land is calculated for a 3-year maximum period only.
This scheme will be implemented through KVIC (Khadi and Village Industries Commission), Mumbai – this is a statutory body that’s created by KVIC Act 1956 with a single nodal agency at national level. The scheme is implemented through District Industries Centres, KVIBs (Khadi and Village Industry Boards), and State Directorates of KVIC in rural areas.
On the other hand, urban areas implementation will be in coordination with DICs (State District Industries Centres) only. As of today, KVIC is coordinating with State DICs/State KVIBs to monitor performance in urban and rural areas. To identify beneficiaries under PMEGP, DICs and KVIC will also involve Udyami Mitras empanelled under RGUMY (Rajiv Gandhi Udyami Mitra Yojana), NSIC, Panchayati Raj Institutions and other reputable NGOs (Non-Government Organizations).
Source of Information: Ministry of Micro, Small and Medium Enterprises (in details), Naresh Kadyan (District Khadi and Village Industries Officer)
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