PMEGP is a central sector scheme being administered by the Ministry of Micro, Small and Medium Enterprises. The scheme is implemented by Khadi and Village Industries Commission as the single nodal agency at the national level. The scheme has been designed with the objective of generating employment in rural as well as urban areas of the country through setting up of new self-employment ventures/projects/micro-enterprises.
Quantum & Nature of Financial Assistance :
|
Categories of beneficiaries under PMEGP (for setting up of new enterprises) |
Beneficiary’s contribution (of project cost) |
Rate of Subsidy (of project cost) |
|
Area (location of project/unit) |
Urban Rural |
|
|
10% |
15% 25% |
|
05% |
25% 35% |
Eligibility Conditions :
- Any individual above 18 years of age.
- For setting up of project costing above Rs. 10 lakh in the manufacturing sector and above Rs. 5 lakh in service sector, the beneficiaries should possess at least VIII standard pass educational qualification.
- Assistance under the scheme is available only for new projects sanctioned specifically under the PMEGP.
- Existing units and the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are not eligible.
Special Features :
- The maximum cost of the project/unit admissible under the manufacturing sector is Rs. 25 lakh.
- The maximum cost of the project/unit admissible under the service sector is Rs. 10 lakh.
- The balance amount of the total project cost will be provided by banks as Term loan and CC limit.
- Trading Activities are not allowed under this scheme.
- Only one person from one family is eligible for obtaining financial assistance for setting up of projects under PMEGP. The “family” includes self and spouse.
- For manufacturing units, the working capital component should not be more than 40% of the project cost and for units under service sector the working capital should not be more than 60% of the project cost.