PRIME MINISTER’S EMPLOYMENT

GENERATION PROGRAMME
(P M E G P)

Presented by: Kirankumar Parmar

Sr. Manager, Skill Development
Marwadi University
Location: MA 162,
Mobile No.:7573042213

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Objectives
To generate employment opportunities in rural and urban areas
of the country through self employment ventures/ projects /
micro enterprises.
To bring together widely dispersed traditional artisans / rural and
urban unemployed youth and give them self – employment
opportunities to the extent possible, at their place.
To provide continuous and sustainable employment to a large
segment of traditional and prospective artisans, rural and urban
unemployed youth in the country for their better livelihood.
To increase the wage earning capacity of artisans and contribute
to increase in the growth rate of rural and urban employment.
To facilitate participation of financial institutions for higher credit
flow to micro enterprises.
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Eligibility
Any individual, above 18 years of age
There will be no income ceiling for assistance
VIII Std. Passed (project costing above Rs.10.00 lakhs in
manufacturing and above Rs.5.00 lakhs for Service Sector)
Only to new units to be established.
Existing units or units already availed any Govt. Subsidy
either under State / Central Govt. Schemes are not eligible.
Self Help Groups, Institutions registered under
Societies Registration Act, 1860; Production Co-
operative Societies, and Charitable Trusts.
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Certificates to be attached along with
Application
Age proof certificate

Caste certificate if beneficiaries are from special categories

(SC/ST/Minority/Ex-Servicemen etc..)
Educational qualification certificate if beneficiaries opting
project cost above Rs.10.00 lakhs in case manufacturing
and above Rs.5.00 lakhs for service sector.

EDP training certificate if already undergone such training.

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Implementing Agencies
For easy approach and accessibility, three agencies will work in each
district.
 Khadi & Village Industries Commission
 Khadi & Village Industries Boards
 District Industrial Centres of State Govts.

Facilitators
 Rajiv Gandhi Udyami Mitra Yojana
 Ministry of Women & Child Development
 Panchayati Raj Institutions
 KVI Federations
 Nehru Yuva Kendra Sangathan
 Army Wives Welfare Association

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Financing Agencies
All Public Sector Banks

All Regional Rural Banks

SIDBI

Co-operative Banks approved by a committee headed by

the Secretary, Industries of the State.
Private Sector Commercial Banks approved by a committee
headed by the Secretary, Industries of the State.

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Industry
Any industry including Coir Based projects excluding those
mentioned in the negative list.

Maximum project cost for Rs.25.00 lakhs in case of

manufacturing and Rs.10.00 lakhs for Service Sector

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AREA OF OPERATION
Rural area as declared under KVIC Act 2006 – Scheme
to be implemented by KVIC, KVIB and DIC.

Urban area - Only DIC

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Quantum and Nature of Financial Assistance
Categories of Beneficiary’s Rate of Subsidy
beneficiaries under contribution (of (of Project Cost)
PMEGP project cost)
Area (location of Urban Rural
project/unit)
General Category 10% 15% 25%
Special (including 05% 25% 35%
SC/ST/OBC/Minorities/
Women, Ex-Servicemen,
Physically handicapped,
NER, Hill and Border
areas etc

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BANK FINANCE
The Bank will sanction 90% of the project cost in case of
General category beneficiary and 95% in case special
category of beneficiary / institutions.

The Bank will disburse full amount suitably for setting up

of the project.

Credit Guarantee Scheme of Ministry of MSME is also

available for PMEGP units to facilitate entrepreneurs for
collateral security free loans.

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Selection of Beneficiaries
Project proposals will be invited from potential
beneficiaries at District level through Print and Electronic
Media by KVIC/KVIBs and DIC at periodic intervals.
Facilitating agencies may also collect applications and
submit the same to the KVIC,KVIB and DICs for placing
the same before District Task Force Committee.
To ensure the transparency in identification of the
beneficiaries, Panchayati Raj Institutions to be involved in
the process of selection.

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How to apply?
https://www.kviconline.gov.in/pmegpeportal/jsp/loginPage.jsp
Online application through above portal
The application will be placed before District Task Force
Committee by respective Offices.
Personal Interview will be conducted by District Task Force
Committee.
Selection will be made on the basis of background and personal
interview
The District task force will forward its recommendation to
KVIC /KVIB /DICs within a period of one month of the meeting.
The same will be forwarded by the implementing agencies to
Financing Branch of the Bank within 15 days of receipt of the
same.
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Operational Procedure
The Bank will take their own credit decision on selection
of projects. In case of any rejection, the same will be
intimated to the District Task Force with reasons.
After sanctioning of project, the beneficiary has to deposit
5% or 10% of the project cost as the case may be, in the
bank.
First installment of loan will be released to Beneficiaries
only after completion of EDP training.
Project cost will include capital expenditure and one cycle
of working capital.

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Entrepreneurs Development Programme
(EDP)
Duration – 2 weeks
Training Institutions –
- Departmental and Non- Departmental
Training Centres of KVIC /KVIB
- Accredited training Centres
- EDP Institute of National repute like
NIESBUD, NIMSME, IIE, EDI etc.

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Skill Development
District Task Force will recommend needy
entrepreneurs for skill development programme.

Skill Development / Skill Upgradation will be

provided as per requirement to the entrepreneurs by
Training Centres accredited with Ministry of MSME
and reputed institutions of KVIC / KVIB / State Govts.
, DIC.

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Margin Money Release and Adjustment
The beneficiary will submit the Margin Money claim
through Financing Bank after release of first installment of
loan.
The Financing Branch will forward the same to the
respective Nodal branch.
The Nodal Branch after being satisfied that the unit fulfills
the criteria under PMEGP will release the Margin Money to
the Financing Branch.
The original claim format to be forwarded to respective
office i.e. KVIC/KVIB/DIC by the Nodal Branch of the Bank
keeping a copy with them
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Margin Money Release and Adjustment
Acknowledgement letter in the prescribed format will be
issued by the KVIC/KVIB/DIC to the Nodal Branch on
receipt of original claim format.
The lock in period of Margin Money is of 3 years in the
TDR in the name of beneficiary.
No interest will be paid on the TDR and no interest will be
charged on loan to the corresponding amount of TDR.
Margin Money will be adjusted only after physical
verification.

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Physical Verification
100% Physical Verification of the units established will be
made within a period of 24 months from the release of CE
loan from Bank.

It will be done by out sourcing agencies having expertise

and experience in the field.

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NEGATIVE LIST OF ACTIVITES
Any Industry/business connected with Meat (slaughter)
i.e. processing, canning and/or serving items like Beedi /
Pan / Cigar / Cigarette etc. any Hotel or Dhaba or sales
outlet serving liquor, preparation / producing tobacco as
raw materials, tapping of toddy for sale.
Any industry / business connected with cultivating of
crops / plantation like Tea, Coffee, Rubber etc.
sericulture (cotton rearing), Horticulture, Floriculture,
Animal Husbandry like Pisciculture, Piggery, Poultry,
Harvester machines etc.

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NEGATIVE LIST OF ACTIVITES
Manufacture of Polythene carry bags of less than 20 microns
thickness and manufacture of carry bags or containers made up
of recycled plastic for storing, carrying, dispensing or packaging
of food stuff and any other item which causes environmental
problems.
Industries such as processing of Pashmina Wool and such other
products like hand spinning and hand weaving, taking
advantage of Khadi Programme under the purview of
Certification Rules and availing sales rebate.
f) Rural Transport (except Auto rickshaw in Andaman &
Nicobar Islands, House boat, Shikara & Tourist Boats in Jammu
& Kashmir and Cycle Rickshaw).
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