The government has extended the Prime Minister’s Employment Generation Program (PMEGP) for five years from 2021-22 to 2025-26 with an outlay of Rs 13,554.42 crore. It will facilitate the creation of employment opportunities for unemployed youth across the country by assisting in setting up of micro enterprises in the non-farm sector.
Since its inception in 2008-09, around 7.8 lakh micro enterprises have been assisted in generating estimated permanent employment for 64 lakh persons with a subsidy of Rs 19,995 crore. About 80 per cent of the aided units are in rural areas and about 50 per cent units are owned by Scheduled Caste (SC), Scheduled Tribe (ST) and women categories.
“The PMEGP has now been approved to continue on the 15th Finance Commission cycle for five years from 2021-22 to 2025-26 with an outlay of Rs 13,554.42 crore,” the Ministry of Micro, Small and Medium Enterprises said in a statement.
The statement also said that some major changes have been made in the plan. The maximum project cost for construction units has been increased from the existing Rs 25 lakh to Rs 50 lakh and for service units to Rs 20 lakh from the existing Rs 10 lakh.
The definition of village industries and rural areas has been revised for PMEGP – areas under Panchayati Raj Institutions will be treated as rural areas, while those under municipalities will be treated as urban areas. All implementing agencies have been permitted to receive and process applications in all areas irrespective of rural or urban category.
PMEGP applicants under aspirational districts and transgender will be treated as special category applicants and will be entitled to higher subsidy.
“The scheme will create sustainable projected employment opportunities for about 40 lakh people in five financial years,” the ministry said, adding that all states and union territories would be covered under the Prime Minister’s Employment Generation Programme.
“Higher rate of margin money subsidy – 25 per cent of project cost in urban area and 35 per cent of project cost in rural areas, for SC, ST, OBC, women, transgender, physically challenged, special category including NER For applicants, aspirational and border district applicants. For general category applicants, the subsidy is 15 per cent of the project cost in urban areas and 25 per cent of the project cost in rural areas.’ Considered for approval under PMEGP
Anyone above the age of 18 years can apply for the scheme and only new projects are considered for approval under PMEGP.
The scheme is implemented by the Khadi and Village Industries Commission (KVIC) acting as the nodal agency at the national level. At the state level, the scheme is implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centers (DICs) and Banks. In such cases KVIC paves the way for Government subsidy through designated banks to the beneficiaries/entrepreneurs directly in their bank accounts for final disbursement.
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