The full form of PMEGP is “Prime Minister’s Employment Generation Programme.” It is a credit-linked subsidy program launched by the Government of India to encourage and support entrepreneurship among the youth and create sustainable employment opportunities in the rural and urban areas.
Objectives of PMEGP
- To generate sustainable self-employment opportunities in both rural and urban areas of the country.
- To provide financial assistance to micro-enterprises and small entrepreneurs to establish new ventures.
- To facilitate the creation of new enterprises by supporting traditional and non-traditional projects.
- To generate substantial employment opportunities, particularly for the marginalized sections of society and unemployed youth.
- To promote the culture of entrepreneurship and encourage the establishment of micro-enterprises that can grow into small-scale industries.
Eligibility Criteria for PMEGP
- Individual Entrepreneurs: Any individual above 18 years of age can apply for the PMEGP loan, provided they have completed at least VIII standard education for projects in the manufacturing sector and X standard education for service sector projects.
- Self-Help Groups (SHGs): SHGs that have not availed any other government subsidy can also apply for financial assistance under PMEGP.
- Institutions: Trusts, registered societies, and cooperatives can also apply for the program if they have not received any other government assistance for the same project.
- Industry Sector: PMEGP supports projects in both the manufacturing and service sectors. However, some activities are not eligible for the scheme, such as those engaged in the production of tobacco, intoxicants, and hazardous substances.
- Project Cost: The project cost for manufacturing units should be within Rs. 25 lakhs, while for service sector projects, it should not exceed Rs. 10 lakhs.
- Location: PMEGP is applicable to projects set up in both rural and urban areas, except for the North-Eastern region and the hilly areas, where special concessions are provided.
It’s essential to note that the eligibility criteria and other details may be subject to changes or updates by the government over time, so applicants should always refer to the official PMEGP website or relevant government authorities for the most current information.