Prime Ministers Employment Generation Programme (PMEGP)

Prime Ministers Employment Generation Programme (PMEGP)

This scheme is known as the “Prime Minister’s Employment Generation Programme (PMEGP)” is a credit-related subsidy programme that is administered by means of the Ministry of Micro, Small and Medium Enterprises, Government of India. Khadi and Village Industries Commission (KVIC), is the nodal agency at the national level for application of the scheme. At the state level, the scheme is applied through KVIC, KVIB as well as District Industries centre. The Government subsidy as per this scheme is routed by KVIC through the recognized banks for eventual distribution towards the beneficiaries or businesspersons into their bank accounts.


•    An individual with age of 18 years or more is eligible

•    Passing standard VIII is needed for a project above Rs 5 lakh in the service sector as well as above Rs 10 lakh in the manufacturing sector

•    The institutions registered under Societies Registration Act- 1860

•    Production-based co-operative societies

•    Self-help groups as well as charitable trust

The key features of the scheme

•    The Scheme is executed through Khadi and Village Industries Commission, State Khadi and Village Industries Commission Directorates, State Khadi and Village Industries Boards and District Industries Centres and banks in Urban and Rural Areas in the ratio of 30:30:40 amid Khadi and Village Industries Commission / Khadi and Village Industries Boards / DIC respectively.

•    The aid under the PMEGP is only available towards new units that are to be established

•    There is no earnings ceiling for setting up projects

•    The existing units or units that are already receiving any government subsidy (State or Central) are not eligible

•    Any industry which includes coir based projects (not including those mentioned in the negative list) could take advantage of this scheme

•    The per capita investment as per this scheme must not go beyond Rs 1 lakh in plain areas and Rs 1.5 lakh in hilly areas

•    Maximum project cost Rs 10 lakh in the service sector as well as Rs 25 lakh in the manufacturing sector is this limit

Areas of Operation

Rural area, as mentioned under Khadi and Village Industries Commission Act 2006 – Scheme, involves the area comprised in any village and comprises the area comprised in any town. The population must not go beyond twenty thousand or such additional figure as the Central Government might state from time to time. In the urban area, only District Industries Centres (DIC) is included.

Negative list of activities

•    Businesses / Industries linked with processing/productions/sale of meat or intoxicant products like pan/beedi/cigarette etc.

•    Businesses/ Industries connected with sericulture, cultivation, floriculture, horticulture.

•    Manufacturing of containers of recycled plastic/polythene carry bags of less than 20 microns

•    Processing of pashmina wool as well as additional items which involve hand spinning and hand weaving which falls within the purview of Khadi Certification Rule.

•    Rural transport (excluding houseboat, shikara, tourist boat in Andaman and Nicobar Islands and in Jammu and Kashmir, auto-rickshaw and cycle rickshaw.)CNG auto rickshaw shall be allowable only in Andaman and Nicobar Islands and North Eastern Region of the nation with the prior authorization of Chief Secretary of the State on merit.


Groups of beneficiaries under PMEGP

Beneficiary’s own contribution (of project cost)

Rate of Subsidy    






General Category




Special Category (which includes SC, ST, OBC, Minorities, Women, Ex-Servicemen, Physically handicapped, NER, Hill, as well as Border areas etc)





The rate of Interest and Repayment Schedule:

The normal interest rate is applicable to the enterprise from time to time. The Repayment Schedule varies from 3 -7 years.


Neither collateral security nor any third party guarantee is asserted here. Any assets made from the bank loan must be hypothecated to Bank.

Nodal Agency

At the national level, KVIC is the nodal agency. The scheme shall be applied through Khadi and Village Industries Commission, Khadi and Village Industries Boards as well as DIC in both rural and urban areas.


A 2 weeks training period is compulsory for all the beneficiaries.

Process or applying at PMEGP e-portal

Firstly one must visit the website my.msme.gov.in or kviconline.gov.in

After that click the link “Prime Minister Employment Generation Programme” or “PMEGP ePortal”

Now, an individual is required to click on “Online Application Form For Individual” in order to fill the application form.

Then the PMEGP Application Form would be then visible here.

The guidelines for filling the Online PMEGP Application for an Individual Applicant is mentioned below

1    Aadhaar Number of the applicant

2    Name of Applicant as per Aadhar Card

3    Sponsoring Agency - Agency where the application is required to be submitted

4    State and District

5    Sponsoring Office

6    Gender and Date of Birth (DD-MM-YYYY)

7    Select the Social Category from the options

8    Educational Qualification

9    Address for Communication:  The individual must fill the complete postal address which includes State, District, Pin Code, Mobile No., Email and PAN No.

10    Unit Location: Select Unit Location (i.e. Rural OR Urban)

11    Proposed Unit Address: The individual must fill the complete Unit address of the unit which includes Taluka, District, and Pin Code

12    Type of Activity: Select from the activity list, that is Service or Manufacturing

13    Name of the Activity:

     •    Select Industry from the given list of Industries

     •    Type the specific product description.

14    Whether EDP Training Undergone: Select one i.e. Yes or No from the given list

15    Training Institute's Name:  If EDP Training Undergone YES, enter Training Institute Name in detail.

16    Loan Required:

         •    Capital Expenditure: Enter CE loan in rupees.

         •    Working Capital: Enter WC loan in rupees.

         •    Total Loan: There is an automatic calculation of total loan.

17    Bank Details: Enter IFSC code

18    After entering the requisite information, the individual must click on “Save Applicant Data”

19    Upload the documents for final submission

20    After final submission, the individual’s ID and Password shall be sent to the Registered Mobile No

Here the applicant seeking for registration is required to fill all the required information and click the “Submit” button to complete the registration procedure.

Finally, the registered candidates could log into the “PMEGP portal” and may fill the remaining form in order to finish the application procedure.

eStartIndia is the professional tech-based online business and legal services providing a platform which helps the clients to simplify the procedures of all kinds of registration, implementation, tax concerns and any additional legal compliance and services related to the business in India.


eStartIndia Team

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