Prime Minister’s Employment Generation Programme (PMEGP) aims to promote employment generation opportunities through the establishment of micro-enterprises in rural as well as urban areas.

PMEGP: Implementation

It is implemented by Khadi and Village Industries Commission (KVIC). KVI) is functioning as the nodal agency at the national level. At the state level, the scheme is implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs) and banks.

PMEGP: Nature of assistance

  • The maximum cost of the project or the unit admissible in the manufacturing sector is Rs 25 lakhs, In the business or service sector, it is Rs. 10 lakhs.
  • Rate of subsidy under PMEGP:
  • For General category 15%(Urban), 25%(Rural)
  • For Special category 25%(Urban), 35%(Rural) (including SC/ ST/ OBC/ Minorities/Women, Ex-servicemen, Physically handicapped, NER, Hill and Border areas, etc.)
  • The balance amount of the total project cost will be provided by the banks in the form of term loan and working capital.

PMEGP: Eligibility

  • Any individual, above 18 years of age.
  • At least VIII standard pass for projects costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business or service sector.
  • Only new projects are considered for sanction under PMEGP.
  • Self Help Groups, Institutions registered under Societies Registration Act,1860; Production Co-operative Societies, and Charitable Trusts are also eligible.
  • Existing Units and the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are NOT eligible.

PMEGP: How to apply?

The State/Divisional Directors of KVIC in consultation with KVIB and Director of Industries of respective states (for DICs) will give advertisements. It will be locally through print & electronic media inviting applications along with project proposals from prospective beneficiaries desirous of establishing the enterprise or start of service units under PMEGP.
The beneficiaries can also submit their application online at and take the printout of the application and submit the same to respective offices along with Detailed Project Report and other required documents.

PMEGP: Whom to contact?

State Director, KVIC
Address available at
Dy. CEO (PMEGP), KVIC, Mumbai
Ph: 022-26711017
Email: ykbaramatikar[dot]kvic[at]gov[dot]in

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