Government of India has introduced a new credit linked subsidy programme called Prime Minister’s Employment Generation Programme (PMEGP) by merging the two schemes that were in operation till 31.03.2008 namely Prime Minister’s Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP) for generation of employment opportunities through establishment of micro enterprises in rural as well as urban areas.
The Scheme will be implemented by Khadi and Village Industries Commission (KVIC) at the National level. At the State level, the Scheme will be implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs) and District Industries Centres (DICs) and banks. The Government subsidy under the Scheme will be routed by KVIC through the identified Banks for eventual distribution to the beneficiaries / entrepreneurs in their Bank accounts.
The main objective is 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.
Note
The maximum cost of the project/unit admissible under manufacturing sector is Rs. 25 lakh.
The maximum cost of the project/unit admissible under business/service sector is Rs. 10 lakh. There will be no income ceiling for assistance for setting up projects under PMEGP.
For setting up of project costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business /service sector, the beneficiaries should possess at least VIII standard pass educational qualification.
A Task Force, consisting of the following members, will be set up to scrutinize the applications received by it.
Dist Magistrate/Deputy Commissioner/Collector - Chairman
Lead Bank Manager - Member
Representative of KVIC/KVIB - Member
Representative of NYKS/SC/ST Corporation - Special Invitee
Representative of MSME-DI, ITI/Polytechnic - Special Invitee
Representatives from Panchayats - 3 members
General Manager, DIC or State Director of KVIC -Member Convenor
After setting up the unit, incentives can be claimed under North East Industrial and Investment Promotion Policy (NEIIPP), 2007 where 30% of the cost incurred for setting up infrastructure in terms of working shed, plant and machinery, fixed assets etc. can be reimbursed besides other incentives which can be claimed under the same policy.
