Andhra Bank
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Prime Minister Employment Generation Programme (PMEGP)


A new credit linked subsidy programme introduced by Government of India, Ministry of Micro, Small and Medium Enterprises by merging two schemes 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 in urban areas.

 
 Purpose

  • To generate employment opportunities in rural as well as urban areas of the country through setting up of new self employment ventures/ micro enterprises
  • To provide continuous and sustainable employment to a large segment of traditional and prospective artisans and rural & urban unemployed youth in the country, so as to help arrest migration of rural youth to urban areas.
  • To increase wage earning capacity of artisans and contribute to increase in the growth rate of rural and urban employment.
 
  Eligibility

  1. Any individual, above 18 years of age
  2. No income ceiling for assistance for setting up projects under PMEGP , but the assistance is avialble only new projects sanctioned specifically under PMEGP.
  3. For setting up of projects costing above Rs.10.00 lakh in manufacturing sector and above Rs.5.00 lakh in the business/ service sector, the beneficiaries should possess at least VIII standard pass educational qualification.
  4. Self help groups (including those belonging to BPL provided that they have not availed benefits under any other schemes) are eligible.
  5. Only one person from one family(which includes self and spouse) is eligible
  6. Existing units/ units already availed Government subsidy under any other scheme are not eligible.
  7. Applicable to all new viable micro enterprises, including Village Industries projects except activities included in the negative list.
 
  How to Apply
  1. The prospective borrowers has to file the applications through On line. No manual applications will be allowed under PMEGP since 01.05.2016.
  2. Applicants will be provided with User Id and password at the time of initial registration for their use and provided with application ID on final submission by KVIC. 
 Ceiling on Project cost

  1. The maximum cost of the project/ unit admissible under manufacturing sector is Rs.25.00 lakh.
  2. The maximum cost of the project/ unit admissible under business/ service sector is Rs.10.00 lakh.
 
  Bank finance

  1. 90% in case of General category
  2. 95% in case of Special category
 
  Beneficiary contribution

  1. For General category: 10% of project cost
  2. For special categories like SC/ST/OBC/ Minorities/ Women, Ex-servicemen, Physically handicapped etc.,:5% of Project cost
 
 Rate of Subsidy

  Urban areas Rural areas
For general category 15% of Project cost 25% of Project cost
For special categories
25% of Project cost 35% of Project cost
 
  Implementing agencies

Khadi and Village Industries Commission(KVIC),Mumbai at National level State Directories of KVIC, State Khadi and Village industries Boards(KVIBs) and District Industries Centres at State level.

 
  Identification

Will be done at District level by a Task force consisting of representatives from KVIC/State KVIB and State DICs and Banks.
 
  Repayment

3 to 7 years after initial moratorium prescribed by the concerned bank.