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Why in news?

  • In a significant policy decision, the Ministry of Micro, Small and Medium Enterprises (MSME) has done away with the role of District Level Task Force Committee (DLTFC), headed by the Distt. Collectors, in recommending the proposals under the Prime Minister Employment Generation Program (PMEGP), thereby simplifying the entire procedure.
  • As per the amended guidelines, Khadi and Village Industries Commission (KVIC), the nodal agency for implementing PMEGP scheme, after due diligence, will directly clear the proposals/applications of the prospective entrepreneurs and will forward it to the Banks for taking credit decisions.
  • As of now, the proposals were scrutinized by the DLTFC, that often led to inordinate delays in sanctioning of the projects.

How will this help?

  • The pace of employment generation in the country is just going to accelerate.
  • A major bottleneck has been removed with the discontinuation of the DLTFC in approving the projects under PMEGP.
  • The government’s move has come at a time when the employment sector has taken a hit due to nationwide lockdown in the wake of the Corona disease.
  • The amendment in the policy would pave the way for swift implementation of projects and create new employment opportunities in rural and semi urban areas under the PMEGP scheme.


  • 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

  1. To generate continuous and sustainable employment opportunities in Rural and Urban areas of the country
  2. 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.
  3. To facilitate participation of financial institutions for higher credit flow to micro sector.

Eligibility to avail this scheme:

  1. Individuals above 18 years of age
  2. VIII Std. pass required for project above Rs.10.00 lakhs in manufacturing and above Rs. 5.00 lakhs for Service Sector
  3. Self Help Groups and Charitable Trusts
  4. Institutions Registered under Societies Registration Act- 1860
  5. Production based Co-operative Societies

Read More about KVIC here:

July 2024