Focus: Government Policies and Interventions
Why in News?
On Prime Minister’s 72nd birthday, KVIC Launches 72 PMEGP units to empower artisans.
Prime Minister Employment Generation Program (PMEGP)
- The Prime Minister’s Employment Generation Programme (PMEGP) the result of the merger of two schemes – Prime Minister’s Rojgar Yojana (PMRY) and The Rural Employment Generation Programme (REGP).
- PMEGP is a credit-linked subsidy scheme which promotes self-employment through setting up of micro-enterprises, where subsidy up to 35% is provided by the Government through Ministry of MSME for loans up to ₹25 lakhs in manufacturing and ₹10 lakhs in the service sector.
- PMEGP was established for generation of employment opportunities through establishment of micro enterprises in rural as well as urban areas.
- PMEGP is a central sector scheme administered by the Ministry of Micro, Small and Medium Enterprises (MoMSME).
- At the national level, the Scheme is being implemented by Khadi and Village Industries Commission (KVIC), a statutory organization under the administrative control of the Ministry of MSME as the single nodal agency.
- At the State level, the Scheme will be implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs) and District Industries Centres (DICs) and banks.
Objectives of PMEGP
- To generate continuous and sustainable employment opportunities in Rural and Urban areas of the country
- To provide continuous and sustainable employment to a large segment of traditional and prospective artisans, rural and urban unemployed youth in the country through setting up of micro enterprises.
- To facilitate participation of financial institutions for higher credit flow to micro sector.
Eligibility to avail this scheme:
- Individuals above 18 years of age
- VIII Std. pass required for project above Rs.10.00 lakhs in manufacturing and above Rs. 5.00 lakhs for Service Sector
- Self Help Groups and Charitable Trusts
- Institutions Registered under Societies Registration Act- 1860
- Production based Co-operative Societies