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Extension of the Prime Minister’s Employment Generation Programme (PMEGP)

  • Posted By
    10Pointer
  • Categories
    Polity & Governance
  • Published
    1st Jun, 2022

Context

The Ministry of Micro, Small and Medium Enterprises has approved the extension of the Prime Minister’s Employment Generation Programme (PMEGP) for five years till FY26.

Key-points

  • Increased project cost: The government has increased the maximum project cost for manufacturing units from $25 lakh to $50 lakh, and for service units from $10 lakh to $20 lakh.
  • Altered definitions: For the scheme, the definitions of village industry and rural area have also been altered. 
    • Territories under Panchayati Raj institutions will be classified as rural, while areas under municipal jurisdiction will be classified as urban.
  • Handling application: All implementing agencies, regardless of whether they are rural or urban, are allowed to receive and handle applications in all areas.
  • Special category applicants: In addition, PMEGP applicants from aspirational districts and transgender applicants would be recognised as special category applicants and will be eligible for a greater subsidy.
    • For special category candidates such as SC, ST, OBC, women, transgender, physically challenged, north eastern region, aspirational, and border district applicants, the margin money subsidy under the scheme would be 25% of the project cost in urban areas and 35% of the project cost in rural regions.
  • Subsidy for general category: The subsidy is 15% of the project cost in urban areas and 25% of the project cost in rural regions for general category applicants.

About Prime Minister’s Employment Generation Programme (PMEGP) 

  • Prime Minister Employment Generation Programme (PMEGP) is a central sector scheme launched by the Government of India in 2008. 
  • It is a credit linked subsidy scheme, where interest is subsidized. This scheme is an amalgamation of two schemes-
    • Prime Minister Rojgar Yojana (PMRY)
    • Rural Employment Generation Programme (REGP).
  • The Ministry of Micro, Small and Medium Enterprises (MSME) administers the programme.
  • The programme is being implemented by the Khadi and Village Industries Commission (KVIC) at the national level. 
    • It is the single nodal agency for the implementation of the programme.
  • The Scheme is being implemented through banks, District Industries Centres (DICs), State KVIC Directorates and State Khadi and Village Industries Boards (KVIBs) at the state level.
  • Individuals above the age of 18 years, Self Help Groups (SHGs), Cooperative Societies involved in the production, and institutions that are registered under the Societies Registration Act of 1860 are eligible for benefits under this programme.
  • Assistance is provided under the scheme only to the new units, units that have availed government subsidies under either the state or the central government schemes; existing units are not eligible for subsidy under PMEGP.
  • In order to achieve inclusive growth across the country, a minimum of 75 projects will be awarded to each district.
  • Physically disabled, OBC, SC/STs, women, northeastern region (NER) applicants in rural areas are eligible for a higher rate of subsidy.

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