Prime Minister's Employment Generation Programme (PMEGP)
Published on April 15, 2025
Overview
The Prime Minister's Employment Generation Programme (PMEGP) is a credit-linked subsidy program administered by the Ministry of Micro, Small and Medium Enterprises, Government of India. Launched in 2008, it aims to generate employment opportunities in rural and urban areas by supporting the establishment of new micro-enterprises.
Eligibility Criteria
- Any individual above 18 years of age
- Education qualification: At least 8th grade pass for projects costing above ₹10 lakh in the manufacturing sector and above ₹5 lakh in the service sector
- Self Help Groups, Charitable Trusts, and registered Co-operative Societies
- Existing units and units that have already availed government subsidy under any other scheme are not eligible
Financial Assistance
The maximum cost of the project/unit admissible under manufacturing sector is ₹50 lakh and under service sector is ₹20 lakh.
Categories of Beneficiaries under PMEGP
| Categories of Beneficiaries | Beneficiary's Contribution (of project cost) | Rate of Subsidy (of project cost) |
|---|---|---|
| General Category | 10% | Urban: 15%, Rural: 25% |
| Special Category (SC/ST/OBC/Minorities/Women, Ex-servicemen, Physically handicapped, NER, Hill and Border areas) | 5% | Urban: 25%, Rural: 35% |
Application Process
- Register and apply online on the PMEGP e-portal
- Applications are initially screened by the District Task Force Committee (DTFC)
- After approval, the application is forwarded to the financing bank
- Upon sanction of the loan, the subsidy is placed with the bank
- The bank disburses the loan excluding the subsidy amount
Success Stories
Thousands of entrepreneurs across India have benefited from the PMEGP scheme. For instance, Mr. Rajesh Kumar from Bihar established a small food processing unit with PMEGP assistance and now employs 15 people from his village. Similarly, Ms. Priya Sharma from Rajasthan started a handloom business that has grown into a successful export venture.
Contact Information
For more information, contact your nearest District Industries Centre (DIC), Khadi and Village Industries Commission (KVIC), or Khadi and Village Industries Board (KVIB) office.