Credit and Financial assistance to MSMEs
Prime Minister’s Employment Generation Programme (PMEGP)
Description: The scheme aims 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. Another objective is to provide continuous and sustainable employment to all segments of traditional and prospective artisans and rural/urban unemployed youths in the country, so as to help and to arrest migration of rural youths to urban areas. Third objective is to increase the wage earning capacity of artisans and contribute to increase in the growth rate of rural and urban employment. The scheme is implemented by Khadi and Village Industries Commission (KVIC), 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) and District Industries Centres (DICs) and Banks. Only new projects are considered for sanction under PMEGP.
Nature of Assistance: The maximum cost of the project/unit is: Rs. 25 Lakhs in case of manufacturing sector and Rs. 10 Lakhs in case of business/service sector. 2 Subsidy under PMEGP (% of project cost): General category 15%(Urban), 25%(Rural); Special Category (including SC / ST / OBC / Minorities / Women, Exservicemen, Physically handicapped, NER, Hilly and Border areas, etc.): 25% (Urban), 35% (Rural).
Who can apply: Any individual, above 18 years of age can apply (For project costing above 10 lakh in manufacturing and 5 lakh in service sector. He should have passed at least VIII standard). Self Help Groups, Institutions registered under Societies Registration Act 1860; Production Co-operative Societies and Charitable Trusts are also eligible.
How to apply: Only online application is accepted. The beneficiaries can submit their application online at https://www.kviconline.gov.in/pmegpeportal/ pmeg phome/index.jsp.
New initiative: Second dose of assistance up to Rs. 1.00 crore to existing and better performing PMEGP/ MUDRA units for up grading with subsidy of 15% (20% in hilly/NER).
Whom to Contact: Khadi and Village Industries Commission (KVIC), “Gramodaya” 3, Irla Road, Vile Parle (West), Mumbai-400056 (Maharashtra), Helplinewww.kvic.org.in, Email:kvichg@bom3, vsnl.net.in Fax022-26711003, Tel-022-26714320- 25/26716323.