PMEGP (Prime Minister’s Employment Generation Programme)

Government of India has approved the introduction of a new credit linked subsidy programme (central sector scheme) in 2008 called Prime Minister’s Employment Generation Programme (PMEGP) by merging the two existing schemes namely Prime Minister’s Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP). It is a flagship scheme of Ministry of Micro, Small and Medium Enterprises (MoMSME) whereby Micro Enterprises in non-farm sector are set up every year creating employment opportunities across the country.


The objective of the scheme is generation of employment opportunities through establishment of micro enterprises in rural as well as urban areas. Some other objectives are:

  • To generate employment opportunities in rural as well as urban areas of the country through setting up of new 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 and rural and urban unemployed youth in the country, so as to help arrest migration of rural youth to urban areas.
  • To increase the wage earning capacity of artisans and contribute to increase in the growth rate of rural and urban employment

Nodal Agency

It is administered by the Ministry of Micro, Small and Medium Enterprises (MoMSME). The Scheme will be implemented by Khadi and Village Industries Commission (KVIC). At the State/District level, State offices of KVIC, KVIBs and District Industry Centres(DIC) are the implementing agencies in the States in the ratio of 30:30:40.

The Government subsidy under the Scheme is routed by KVIC through the identified Banks for eventual distribution to the beneficiaries / entrepreneurs in their Bank accounts.

An online PMEGP e-portal has been introduced from 1st July 2016. Entire process is made real time and online.

Cost of Project under PMEGP

The maximum cost of the project/unit admissible under manufacturing sector is Rs. 25 lakh and minimum cost is Rs 10 lakh.

The maximum cost of the project/unit admissible under business/service sector is Rs. 10 lakh and minimum cost is Rs 5 lakh.


  • Any individual above 18 years of age is eligible.
  • 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
  • Self Help Groups (including those belonging to BPL provided that they have not availed benefits under any other Scheme) are also eligible for assistance under PMEGP


A beneficiary has to undergo a two week mandatory EDP training if he has not already undergone any such training.

Entrepreneurship Development Programme (EDP):

The objective of EDP is to provide orientation and awareness pertaining to various managerial and operational functions like finance, production, marketing, enterprise management, banking formalities, bookkeeping, etc.

Since the inception of scheme, a total of 4.47 lakh micro enterprises have been assisted with a margin money subsidy of Rs 9326.01 crore providing employment to an estimated 37.32 lakh persons from inception till 2017-18 (up to 30.11.2017).

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