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PM’s Employment Generation Programme

Published on: March 11, 2016 | Updated on: February 3, 2017

PM's Employment Generation Programme

The PM’s Employment Generation Programme (PMEGP) looks to create more than four lakh jobs in the upcoming fiscal – 2016-17. It had been announced in 2000 and formally launched during fiscal 2008-09. PMEGP can be described as a credit-linked subsidy programme that is essentially a combination of Rural Employment Generation Programme (REGP) and Pradhan Mantri Rozgar Yojana (PMRY). The Ministry of Micro, Small and Medium Enterprises (MoMSME) administers the programme and the Khadi and Village Industries Commission (KVIC) implements it. The KVIC directorates are responsible for administering the programme at the state level.

What is the aim of the Employment Generation Programme?

The primary aim is to generate jobs in both rural and urban regions, by way of self-employment ventures, micro enterprises, and other eligible projects. It also aims at bringing back the tradition of village artisanship and helping urban youth who are unable to get jobs due to one reason or the other. The programme also looks to provide employment that is continuous and sustainable and make sure its beneficiaries’ earning capacities are enhanced thus.

Who are eligible and who are not?

The programme has some definite eligibility criteria. It only provides assistance to new projects that have been sanctioned by the authorities. To start with, the applicant needs to be older than 18 years in order to be deemed fit to receive assistance under the programme. The programme does not have any upper limit of income as far as granting assistance is concerned.

The concerned applicant needs to have studied till at least eighth standard in case of manufacturing sector projects that are worth more than INR 10 lakh and business or service sector projects, which are in excess of INR 5 lakh. Self-help groups can receive assistance under the programme. This is especially applicable to BPL families. However, they should not be the beneficiary of any similar programme.

Any institution that has been registered under Societies Registration Act, 1860 can be regarded eligible for assistance under PMEGP. This programme is also open to charitable trusts and production-based cooperative societies. In case an existing unit is already a beneficiary of the REGP, PMRY, or any similar programme of the Indian Government or a state government, it will be deemed ineligible. The same is applicable for any other unit that is receiving subsidy from the central government or a state government.

Industries that will not get assistance under the programme

  • Any industry or business that deals with meat, beedi, pan, cigar, cigarette, liquor, tobacco or toddy.
  • Any industry that is in the business of pashmina wool or similar products that need hand weaving and hand spinning – ones that are already being benefitted by the Khadi Programme and enjoy sales rebates.
  • Any industry or business that is related to tea, coffee, rubber, sericulture, horticulture, floriculture and animal husbandry.
  • Rural transport, with the only exceptions being cycle rickshaws, auto rickshaws in Andaman and Nicobar Islands, and house boats, tourist boats, and shikaras in Jammu and Kashmir
  • Any industry that is related to items that may cause environmental issues such as polythene carry bags.

How is the assistance provided?

For people belonging to the general category, the beneficiary needs to be able to contribute at least 10% of the project costs. The union government, in this case, provides 15% of the funding for projects in urban areas and 25% in case of ones being executed in rural areas. In case of applicants regarded as being special, the beneficiary needs to contribute at least 5% of the costs. For such cases, the central government provides 25% of the funding (urban projects) and 35% of the funding (rurally-done projects).

The following individuals are regarded as special:

  1. Scheduled Castes (SCs)
  2. Ex-servicemen
  3. Scheduled Tribes (STs)
  4. Differently-abled
  5. Other Backward Classes (OBCs)
  6. People from the Northeastern states
  7. Minorities
  8. People living in border areas and hills
  9. Women

Certain banks have been identified for the purpose of disseminating the funds to the eventual beneficiaries and the amount is normally credited to the designated bank accounts.

Which industries will be benefitted?

The PGEP benefits the following industry groups:

  1. Agro-based food processing industries
  2. Polymer and chemical-based industries
  3. Forest-based industries
  4. Rural engineering and biotech industries
  5. Handmade paper and fibre industries
  6. Service and textile industries
  7. Mineral-based industries
  8. Application procedure

How to become beneficiaries of the programme?

The Khadi & Village Industries Commission (KVIC) issues advertisements in electronic and print media asking for applications and project proposals to be put forward by entities willing to become beneficiaries of the programme. This is done following consultation between divisional and state directors of KVIB and Director of Industries for that particular state. The applicants can also submit their applications online and then get printouts of the application. Once they have done this, they can then submit it to the concerned office along with necessary documents such as detailed project reports. They can download applications from the official website of KVIC.


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Showing 18 Comments :

hi sir I want to know the latest details of pmegp scheme for year 2018 January 1st on ward’s, how much subsidy I can able to get if I am belong to sc, St, obc in karnataka. what is the interest rate for men & women. If I will get loan after that how many days required for getting subsidy.
Please kindly give above information


Sirs in 2010 i was the convenor of a SHG and availed a pmegp ĺoan for the SHG. That project was sucess and all loans refunded. Now i am not the convenor and now wish to do some other mfg industry under pmegp. Sir is there any restriction.for me to avail scheme again

Harphoolsinghsingaria November 6, 2016 at 5:59 pm



when will the loan sanctioned after applying pmegp scheme

udayakumar gangadharan October 7, 2016 at 12:54 pm

I want start a business of interior works like wooden joineries & shutters., wooden furnitures & intrior designs, steel works for domestic & commercial buildings, plumbing & electrical works. etc
for this i need further assistance
please give me the guidance for getting loan for this. I am from kerala state


Really great thing.
I would like to apply.
But how ?


In pmegp scheme, which is the last date to fill application….and we can’t seen any notification of this scheme…..so we are waiting for this scheme in year of 2016_17….pls inform sir…..please inform the time duration to fill the applications in Karnataka state….my e-mail id rathodsunil054@gmail.com


Dear Sir,

I could not find any guidelines issued in PMEGP scheme regarding adjustment of Back-ended subsidy after completion of the 3 years lock-in period from the date of receipt of subsidy. Also inform in case the unit become sick after 3 years and presently closed and account is in Standard at the bank. When the Bank can adjust the subsidy amount after completion of the lock in period also is it a last payble amont of loan.

bhoopendra kumar yogi August 17, 2016 at 12:24 am

Sir please tell me may I apply pmegp scheme I belong to obc I am from karoli districket rajasthan

Ratnakar Bindhani August 15, 2016 at 11:00 pm

Plz all details send for me, bcz I can apply…recently sir

Ratnakar Bindhani August 15, 2016 at 10:47 pm

Very nice


Anu Radha is a lucky lady In her comment she has mentioned that the bankers are ready to sanction once the subsidy is credited to her account.Here the scheme has been implemented In my case my daughter being a dhalit women engineer he has been begging for an industrial manufacturing unit loan for the last six months from Indian bank ,Tirunelveli Jn Branch.The branch Manager is openly critising STANDUP INDIA programme initiated recently by our Dynamic Prime minister of india Still she is fighting with them.This issue has been reported in the DPG Portal also.But no use.

Anu Radha Sharma August 10, 2016 at 10:56 am

I have applied for loan under PMEGP scheme through DIC in J&k bank Patel nagar kathua by the name m/s International Bat Factory in Feb.2016.I have completed all formalities but even then they are not releasing amount. They says that when subsidy is released then loan is given to you.Sir how this subsidy is come in my account through online


how to apply and where?


plz send all details for which i can apply on August 2016

Deepa Srivastava July 21, 2016 at 12:11 pm

Kindly send details of latest schemes and when to apply in July/August 2016.

dhanraj bhimte June 30, 2016 at 5:00 pm

Pradhan mantri ujwal yojna

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