Prime Minister Employment Generation Programm(PMEGP)2018– Subsidy & Eligibility

Published Date - 27 April 2018 03:48:40 Updated Date - 27 April 2018 03:52:39

Prime Minister’s Employment Generation Programme (PMEGP) is a credit linked subsidy programme administered by the Ministry of Micro, Small and Medium Enterprises, Government of India. Khadi & Village Industries Commission (KVIC), is the nodal agency at national level for implementation of the scheme. At state level the scheme is implemented through KVIC, KVIB and District Industries center. This scheme will generate self employment opportunities through establishment of micro enterprises in non-farm sector. Interested candidates can check subsidy amount and eligibility criteria to apply online through the PMEGP e-Portal

Indian govt. will also lay emphasis on helping traditional artisans and unemployed youths. The primary objective is to increase the wage earning capacity of artisans and to increase employment rate. Under PMEGP 2018 Scheme, govt. sets the target on the basis of backwardness of state, extent of unemployment and population.                                                   

Khadi, Textiles, Coir, Handicraft and other small scale industries plays a vital role in the socio-economic empowerment of poor people, under-privileged and women.

Prime Minister Employment Generation Programme 2018

  • PMEGP Scheme helps its beneficiaries to set up projects which costs above Rs. 10 lakh in manufacturing sector and Rs. 5 lakh in Business / Service sector.
  • The maximum cost of project which is eligible for financial assistance is Rs. 25 lakh for Manufacturing sector and Rs. 10 lakh for services sector.
  • Central govt. has set a target of 75 projects in each district across the country for more inclusive growth.
  • Moreover, there is also a 2nd loan facility of upto Rs. 1 crore is available for existing and better performing PMEGP Units.
  • Khadi and Village Industries Commission (KVIC) implements this scheme at the National level. At the State level, State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs) and banks implements PMEGP Scheme.

KVIC provides the govt. subsidy to beneficiaries / entrepreneurs directly into their bank accounts through identified banks. Earlier this year, the central govt. has decided to continue PMEGP for the next 3 years i.e till 2020. For more details, visit the official website –



  • To generate employment opportunities in rural as well as urban areas through setting up of self employment ventures.
  • To provide continuous and sustainable employment to a large segment of traditional and prospective artisans and unemployed youth, so as to help arrest migration of rural youth to urban areas.


  • The scheme is applicable to all viable (technically as well as economically) projects in rural as well as urban areas, under Micro enterprises sector.
  • The maximum cost of the project admissible under manufacturing sector is Rs.25 lakhs and business/services sector is RS.10 lakhs.
  • Only one person from family is eligible for obtaining financial assistance under the scheme.
  • Assistance under the Scheme is available only for new projects
  • The assistance under the scheme will not be available to activities indicated in the negative list under the scheme.

Eligible Entrepreneurs / Borrowers

  • Any individual, above 18 years of age
  • The beneficiaries should have passed at least VIII standard, for setting up of project costing above Rs.10 lacs in the Manufacturing Sector and above Rs. 5 lacs in the business /Service Sector,
  • Self Help Groups (including those belonging to BPL provided that they have not availed benefits under any other Scheme).
  • Institutions registered under Societies Registration Act,1860
  • Production Co-operative Societies
  • Charitable Trusts.        

Non Eligible – All the existing units under PMRY, REGP and any other central govt. / state govt. schemes are NOT eligible. Even any unit that has taken the govt. subsidy under any govt. scheme are NOT eligible.

Subsidy Under PMEGP 2018

Following the maximum limits for cost of projects under PMEGP which is Rs. 25 lakh for manufaturing sector and Rs. 10 lakh for business / service sector, central govt. provides subsidy. The distribution of margin subsidy is as follows:-


Subsidy for Urban Area Beneficiary

Subsidy for Rural Area Beneficiary

Own Contribution

General Category

15% of Total Project Cost

25% of Total Project Cost

10% of Total project Cost

Special Category including SC / ST/ OBC / Minorities / Women, Physically handicapped, Ex-Servicemen, NER, Hill and Border areas etc.

25% of Total Project Cost

35% of Total Project Cost

5% of Total Project Cost

However for this subsidy, the per capita investment must not exceed Rs. 1.00 lakh in plain areas and Rs. 1.50 lakhs in Hilly areas. Moreover, each beneficiary must pay his own contribution which is around 5% to 10% of total project cost.


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