PMEGP Scheme (Prime Minister Employment Generation Programme)

The Prime Minister’s Employment Generation Programme (PMEGP) is the initiative of the Prime Minister’s Office which seeks to promote self-employment and create new employment opportunities across the micro level enterprises in the rural and urban areas.
Objectives of PMEGP
The PMEGP Scheme has several primary objectives:
- To generate sustained and continuously new employment opportunities.
- To promote entrepreneurship in the non-farm sector particularly for artisans and unemployed youth.
- To address rural-urban migration through employment opportunities at the local level.
- To address poverty and unemployment in India and promote growth in all sections of society.
Financial Assistance and Subsidy Details
For New Micro-Enterprises
PMEGP financially assists those individuals who wish to establish new businesses.
Subsidy Rates:
- Urban Areas:
- General Category: 15 Percent of the project cost.
- Special Category: 25 Percent of the project cost.
- General Category: 25 percent Percentage of the project expenditures.
- Female, SC, ST, OBC, other minority categories: 35 percent of the expenditure made on the project.
Maximum Project Cost:
- Manufacturing: ₹50 lakh.
- Service/Trade: ₹20 lakh.
PMEGP Loan Form And Process:
After determining the appropriate subsidy and the beneficiary’s contribution, banks need to provide loans for the remaining project cost.
Upgrading Existing Units
An existing micro-enterprise may also seek modernization.
- Uniform Subsidy: 15-20 percent.
- Maximum Financial Assistance:
- ₹1 crore for manufacturing units.
- ₹25 lakh for service/trading units.
For these units to qualify, units will have to exhibit operating profits and serviced the credit provided to them earlier through PMEGP/REGP/MUDRA on time.
Qualifying criteria
New Businesses
Candidates should satisfy the following conditions to be eligible.
- Age: Over 18 years.
- PMEGP Academics:
An applicant must be at least 8th standard pass if his or her project investment is more than ₹10 lakh in manufacturing and more than ₹5 lakh in the service industry.
- Population Certificate For PMEGP:
Some applicants may be required to produce proof of residing in rural or urban areas to benefit from the location.
- Other Conditions:
- The applicants must not have used the subsidy given under other schemes like the Prime Minister Rozgar Yojana Application Form or REGP schemes.
For Upgrading Existing Units
These units should comply with the following after loan revision:
- It has been ensured that the first PMEGP loan has been serviced.
- Reasonable profit earning capacity exists along with good growth opportunities.
Application and Documentation Requirements
The applicants are required to login through the PMEGP portal and fill in the applications for the PMEGP Loan Form. The other necessary documents are as follows:
- EPMEGR Project Report along with the business development plan.
- All educational certificates.
- All category-based certificates for special applicants.
- Certificate of Registration for PMEGP along with proof of residence (either rural or urban).
Further, it must be noted that the beneficiaries will also have to undergo compulsory entrepreneurship development program (EDP) training for the PATMA scheme.
Significance of PMEGP Towards Increasing Employment Opportunities
Considering the scheme in relation to other poverty alleviation and employment generation programmes in India, the government seeks to:
- Assist and safeguard traditional crafts by providing a properly structured system for establishing local enterprises.
- Function an engine of development in backward and economically less developed areas to avoid imbalance development.
- Achieve higher living standards by creating many job opportunities and boosting economic participation.
PMEGP in Competitive Exams
For PMEGP UPSC candidates, learning more about the scheme is needed especially when it comes to rural employment, economic decentralization and poverty alleviation.
Role of Rapid Consulting in PMEGP Success
There are some companies such as Rapid Consulting which help in the smooth implementation of the scheme. They serve the stakeholders with the below-mentioned areas:
- Filing of application and PMEGP loan forms.
- Compliance with a set criteria.
- Maximizing subsidy allocation in order to have projects approved in record time.
Future Directions and Improvements
It is believed that the PMEGP will, in the near future, have proposals to –
- Raise the financial limits for special categories.
- Increase the range of activities that are permitted under the scheme.
Frequently Asked Questions
1. What types of projects are supported under PMEGP?
Micro enterprises that are local and non-farming are the projects that are supported by PMEGP provided such ventures are non-environmental harmful, or from the negative list.
2. Can existing businesses apply for PMEGP?
Yes, they can apply but in cases where the existing units are profitable and have reasonable loan repayments
3. What is required to apply on the PMEGP portal?
The applicants are need to provide a project report, proof of education, special category certificates and, most importantly, the PMEGP loan form.
4. How PMEGP is the best prime minister scheme for unemployed youth?
It helps in providing some incentives for an unemployed youth that want to establish businesses and employ others so that employment can be created in the area.
5. Why are population certificates relevant in the context of PMEGP?
They are used to assess if the applicant qualifies for either rural or urban subsidy rates under PMEGP.
How to Reach Us?
Website: Visit our official website for detailed information, and service offerings, and to schedule an online consultation.
Direct Contact: Call us at +91-9467248028 / 9416506136 or email info@rapidconsulting.in to discuss your needs directly with our experts.
Office Visit: Our offices are open for in-person consultations at 134, Rapid Consulting, First floor Below Paysam Restaurant, Near Samsung Care. Lajpat Nagar, Rajgarh Road Hisar, Haryana-125001.
Here, you can meet with our consultants who can provide personalized guidance tailored to your business’s specific circumstances. Engage with Rapid Consulting today to leverage their expertise in enhancing your business’s financial and operational performance through the Collateral Free Credit Guarantee Scheme and other beneficial state initiatives. Whether online, over the phone, or in person, Rapid Consulting is ready to assist you in advancing your business goals in Haryana.