Business opportunity - money making scheme: PMs Employment Generation Programme gives chance to get self-employed

Prime Minister’s Employment Generation Programme: Are you planning to start your own small business and need assistance? Are you finding it difficult to get adequate credit to start your own business? Don't worry because the government will help you in your endeavors to get adequate credit.

Ministry of Micro, Small and Medium Enterprises (MSME) is implementing Prime Minister’s Employment Generation Programme (PMEGP), which is a credit-linked subsidy programme aimed at generating self-employment opportunities through establishment of micro-enterprises in the non-farm sector. The scheme is helping traditional artisans and unemployed youth.
 
The scheme is being implemented by Khadi and Village Industries Commission (KVIC), State Khadi and Village Industries Board (KVIB) and District Industries centres (DIC). Under the scheme, loan is being provided by all Public Sector Banks, selected Private Sector Banks and Co-operative Banks with margin money subsidy being given by Ministry of MSME through KVIC.

Any individual above 18 years of age is eligible for applying under the scheme. General category beneficiaries can avail margin money subsidy of 25% of the project cost in rural areas and 15% in urban areas. Beneficiaries belonging to Special Categories such as Scheduled Caste/Scheduled Tribe/OBC /Minorities/Women, Ex-serviceman, Physically handicapped, NER, Hill and Border areas etc. can avail margin money subsidy of 35% in rural areas and 25% in urban areas.

The maximum cost of projects can be Rs 25 lakh in the manufacturing sector and Rs 10 lakh in the service sector. Benefit can be availed under PMEGP for setting up of new units only.

Further, Ministry of MSME has also introduced a new component of second financial assistance for expansion/upgrading the existing PMEGP/MUDRA units for manufacturing unit up to Rs.1.00 cr. and for service/ trading unit up to Rs 25 lakhs with subsidy of 15% (20% for NER and Hilly state) from the year 2018-19.

According to a government release at least 54361 beneficiaries have been assisted as on 15 March 2020 for the financial year 2019-2020 (April-March). The Margin Money Subsidy disbursed by the government during this period was over Rs 1622 cr.

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The targeted beneficiaries for the financial year are 79236 against an allocation of over Rs 2396 cr,the release said.

During the year 2018-19 the government had disbursed Rs 2070 cr.