PMEGP - Prime Minister’s Employment Generation Program

 1. Snapshot

Launch: 2008

• Ministry: MSME

• Nodal Agency: KVIC

• Type: Credit Linked Subsidy Scheme

• Objective: Promote self-employment through micro-enterprises

  2. Key Features

• Project Cost Limit:

  • Manufacturing: ₹50 lakh

  • Service: ₹20 lakh

• Subsidy: 15%–35%

• Beneficiary Contribution:

  • General: 10%

  • Special Category: 5%

  3. Eligible Activities

✔ Manufacturing:

• Food processing (flour mill, pickles)

• Textile/garment units

• Engineering workshops

✔ Service:

• Repair shops

• Beauty parlours

• E-service centres

❌ Not Eligible:

• Trading activities

• Tobacco/alcohol

  4. Financial Pattern

• Bank Loan: 90–95%

• Subsidy: Back-ended (kept in TDR for 3 years)

 5. Banking Lens

• Only new units eligible

• Viability-based appraisal

• Classified under Priority Sector (MSME)

 6. Governance & Economic Impact

• Promotes entrepreneurship & MSMEs

• Reduces rural unemployment

• Strengthens financial inclusion

. Official Source

• KVIC Portal: https://www.kvic.gov.in

• PMEGP Guidelines (MSME Ministry)