PM's Employment Generation Programme

The Prime Minister's Employment Generation Programme (PMEGP) facilitates the generation of employment opportunities for unemployed youth across the country by assisting in the set-up of micro-enterprises in the non-farm sector. The scheme is implemented by the Ministry of Micro, Small and Medium Enterprises, Government of India. It provides funding support for the establishment of new businesses.

- Bimal Bhuta

Since its inception, around 7.8 lakh micro enterprises have been assisted with a subsidy of Rs19,995 crore, generating sustainable employment for an estimated 64 lakh persons.

Features

The maximum fund provided for manufacturing units is Rs50 lakh while for service units it is Rs20 lakh.

According to this scheme, the business owner needs to contribute 5-10% of the project cost, while the government will cover 15-35%, depending on various conditions. The partnering banks provide applicants with term loans at competitive interest rates for the remainder of the project cost. Collateral is not required for projects costing up to Rs20 lakh under the PMEGP scheme. The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) provides a collateral guarantee for the project beyond Rs5 lakh and up to Rs50 lakh under the PMEGP scheme.

Project list of businesses that come under PMEGP