Prime Minister's Employment Generation Programme

Hon. Prime Minister Dr. Manmohan Singh on 15th August 2008, the 61st anniversary of India’s independence, announced a new scheme, the Prime Minister’s Employment Creation Program, to empower entrepreneurs to set up micro enterprises by the Ministry of Micro, Small and Medium Enterprises, Government of India.
Pradhan Mantri Yojana, Khadi, and Village Industries Commission’s REGP: This new scheme has been implemented by combining both schemes.

(A) Objective : To help increase employment in rural areas. To provide self-employment opportunity to those in needy employment and the educated unemployed in rural and urban areas. Stop the migration of unemployed youth and traditional artisans from villages to cities.

(B) Definition of Industry under the Scheme : All industries are eligible for the benefit of the scheme except the negative industries decided by the Khadi Commission.

LIST OF NEGATIVE INDUSTRIES :-
  • Industries related to meat processing, canning, BDs, the production and sale of leaf cigar tobacco, hotels, dhabas selling liquor or tadi, agricultural produce, e.g., tea,coffee, cocoon rearing, horticulture, floriculture, and animal husbandry industries, are not allowed. The manufacture of polythene carry bags of less than 75 microns thickness is allowed, as are activities prohibited by local governments or authorities considering environmental or socio-economic factors. No.
  • Added activities related to sericulture, horticulture, floriculture, and animal husbandry have been allowed.
  • The following industries and businesses related to animal husbandry will be permitted:
  • Dairy-Milk and other milk products mainly through cows and also milk and other milk products from sheep goats, camels, buffaloes, horses and donkeys, poultry farming, fisheries, insect related activities.
  • Pig rearing, which is a major means of livelihood in NER, is allowed only in NER states.
(C) Definition of Village, Rural Area of Village Industry : To help increase employment in rural areas. To provide self-employment opportunity to those in needy employment and the educated unemployed in rural and urban areas. Stop the migration of unemployed youth and traditional artisans from villages to cities.

(D) Eligibility of Beneficiary : All industries are eligible for the benefit of the scheme except the negative industries decided by the Khadi Commission.
1. An individual above 18 years of age shall be the beneficiary.
2. Income limit not applicable.
3. At least 8th pass five lakhs for the above case.
4. Funding will be provided for new projects only. No financial assistance will be given to working units.
5. Self-Help Savings Groups are eligible.
6. Societies incorporated under the Act of 1860; Trustees (registered with the Charity Commissioner); Co-operative Societies incorporated under the Act of 1960.
7. Mode of Application : Application through online mode.

Classification of financial assistance under PMEGP

Under this scheme, there is a loan assistance limit of 50 lakhs for businesses in the manufacturing industry and 20 lakhs for businesses in the service industry. The funding categories are as shown below. The level of margin money offered under this scheme will be as follows:
 
Groups of Beneficiaries under PMEGP Entrepreneur’s Own Participation Margin Money (of Project Cost)
Urban Rural
General 10% 15% 25%
Special Group (SC/ST/minority/Backward class/Women/Ex-Servicemen/Disabled/NER/Hill and Border areas) 5% 25% 35%