Ministry of Micro, Small & Medium Enterprises, Govt. of India has announced a new credit linked subsidy programme called Prime Minister’s Employment Generation Programme (PMEGP) on 15th August 2008, for generation of employment opportunities through establishment of micro enterprises in rural as well as urban areas. KVIC is the nodal agency for implementation of the scheme at the national level. The scheme will be implemented by KVIC/KVIBs in rural areas and by District Industries Centers in urban and other rural areas.

The Board is implementing the KVICs Prime Minister’s Employment Generation Programme through Banks with one time Margin Money Assistance (Subsidy) for developing viable V.I. projects. The PMEGP programme is not only a poverty alleviation programme but a compendium of different schemes under KVI Sector. The rate of Margin Money (subsidy) for projects of maximum cost of Rs. 25.00 lakh is 25 percent for General category and as far as weaker section beneficiaries like SC/ST/OBC/ Women/ Physically Handicapped/Ex. Servicemen and Minority Community etc. are concerned, 35 percent Margin Money (Subsidy) is being provided on maximum project cost upto Rs. 25.00 lakh.


Nodel Agency:

KVIC is the Nodal agency at national level to implement the scheme across the country.

Implementing agencies & Area:

KVIC and KVIBs in rural areas of the country and DICs in both rural and urban areas of the country.

Maximum Project Size:

Rs. 25.00 lakhs for manufacturing sector and Rs. 10.00 lakhs for service sector.

Educationa Qualification:

Minimum VIIIth  pass for the project cost above Rs. 10.00 lakh under manufacturing sector and above Rs. 5.00 lakh project cost under service sector.

EDP Training:

For manufacturing/service sector projects up to and inclusive of Rs. 5.00 lakhs project cost, EDP duration is 6 working days is mandatory.

For manufacturing/service sector projects with project cost of more than Rs. 5.00 lakhs, the EDP duration of 10 working days is mandatory.

How to Apply:

The scheme will be advertised through print and electronic media. The beneficiary can submit application along with project report at nearest KVIC/KVIB/DIC/Bank offices.

Document required:

Certificate of education qualification, Technical Qualification, Caste Certificate (wherever applicable), EDP Training Certificate (for beneficiaries already undergone).

Selection of Beneficiaries:

Beneficiaries will be selected through interview process by the District Task Force Committee handed by the District Magistrate/Dy. Commissioner/Collector.

Project sanction:

Project will be sanctioned by Financing branches of the Banks as per techno-economic viability. Amount of Bank Loan  Bank sanctions and release 90-95% loan of the sanctioned  project cost for women 95% loan will be given by Bank.

Own Contribution:

10% of the project cost in case of general category and 5% in case of weaker section beneficiaries. 5% contribution/equity of the project cost will be for women.

Govt. Subsidy level under the scheme:

of beneficiaries under
of Subsidy
cost of Project)
Special (including
SC/STs/OBCs/ Minorities / Women, Ex-Servicemen, Physically Handicapped,
NER, Hill and Border Areas)


PMEGP Scheme Procedures


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