Prime Minister’s Employment Generation Program

PMEGP UPSC: Relevance

• GS 3: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

PMEGP KVIC: Context

• In the year 2021-22, KVIC, in Jammu and Kashmir, has established the highest number of manufacturing and service units under its flagship scheme- Prime Minister’s Employment Generation Program (PMEGP).

प्रधान मंत्री रोजगार सृजन कार्यक्रम

PMEGP: Key points

• KVIC has also created the highest number of jobs in comparison with all other states and UTs in India.
• In 2021-22,
• KVIC had set a target of 3360 PMEGP units in J&K but buoyed by the Centre’s major push to local manufacturing, it ended up establishing a whopping 21,640 units and thus exceeding the target by a massive 544%.

What is PMEGP?

• Prime Minister’s Employment Generation Program (PMEGP) is a credit linked subsidy programme that was approved in 2008 by merging the two schemes, namely Prime Minister’s Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP).
• It 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).
• 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.\

PMEGP objectives

• 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.

PMEGP eligibility

• Individuals above 18 years of age.
• VIII Std. pass required for project above Rs.10.00 lakhs in manufacturing and above 5.00 lakhs for Service Sector.

PMEGP features

• The Scheme is implemented through KVIC and State/UT Khadi Boards in Rural areas and through District Industries Centres in Urban and Rural areas in ratio of 30:30:40 between KVIC / KVIB / DIC respectively.
• No income ceiling for setting up of projects.
• Assistance under the Scheme is available only to new units to be established.
• Existing units or units already availed any Govt. Subsidy either under State/Central Govt. Schemes are not eligible.
• Per capita investment should not exceed Rs. 1.00 lakhs in plain areas and Rs. 1.50 lakhs in Hilly areas.
• Maximum project cost of Rs. 25.00 lakhs in manufacturing sector and Rs. 10.00 lakhs in Service Sector.

PMEGP Subsidy given

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