Empowering Employment and Entrepreneurship: Prime Minister’s Employment Generation Programme (PMEGP)
The Government of India has taken a significant step towards fostering employment opportunities and entrepreneurship by introducing the Prime Minister’s Employment Generation Programme (PMEGP). This initiative merges two previously operational schemes, the Prime Minister’s Rojgar Yojana (PMRY) and the Rural Employment Generation Programme (REGP), with the aim of generating employment across both rural and urban areas through the establishment of micro enterprises.
PMEGP operates as a central sector scheme under the administration of the Ministry of Micro, Small and Medium Enterprises (MoMSME). The Khadi and Village Industries Commission (KVIC), a statutory organization under the administrative control of the Ministry of MSME, acts as the single nodal agency at the national level. The implementation of the scheme takes place at various levels, involving State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs), and banks.
The scheme envisions providing government subsidies to beneficiaries and entrepreneurs through identified banks. Various implementing agencies, including KVIC, KVIBs, and DICs, collaborate with Non-Government Organizations (NGOs), autonomous institutions, Self Help Groups (SHGs), and other relevant bodies to facilitate the identification of beneficiaries and the development of viable projects. These agencies also play a crucial role in providing training in entrepreneurship development.
Objectives of PMEGP:
The key objectives of PMEGP are as follows:
- Generating Employment Opportunities: PMEGP aims to create employment opportunities in both rural and urban areas by establishing new self-employment ventures, projects, and micro enterprises.
- Empowering Traditional Artisans and Unemployed Youth: The program seeks to bring together traditional artisans and unemployed youth, providing them with self-employment opportunities in their respective regions.
- Preventing Rural-Urban Migration: By offering continuous and sustainable employment to traditional artisans and unemployed youth, the scheme aims to curb the migration of rural youth to urban areas.
- Enhancing Wage Earning Capacity: PMEGP aims to increase the wage earning capacity of artisans, contributing to the growth rate of rural and urban employment.
Financial Assistance under PMEGP:
The program offers different levels of funding based on the category of beneficiaries and their project location:
- For the general category, the subsidy rates range from 10% to 25%.
- Special categories, including SC/ST/OBC/Minorities/Women/Ex-servicemen/Physically handicapped, receive subsidies ranging from 5% to 35%.
The project cost eligible for funding varies depending on whether it falls under the manufacturing sector (up to Rs. 25 lakh) or the business/service sector (up to Rs. 10 lakh).
Eligibility Conditions:
To be eligible for assistance under PMEGP, beneficiaries must fulfill the following conditions:
- Individuals above 18 years of age.
- No income ceiling for assistance.
- Educational qualification requirements for projects costing above certain thresholds.
- Assistance available only for new projects sanctioned specifically under PMEGP.
- Self Help Groups, registered institutions, production co-operative societies, and charitable trusts are eligible.
- Existing units under previous schemes are not eligible.
Bank Finance and Repayment:
Banks sanction 90% to 95% of the project cost for general and special category beneficiaries respectively. The financing includes capital expenditure and working capital in the form of term loan or cash credit. The rate of interest and repayment schedule depend on the concerned bank/financial institution. RBI issues guidelines to prioritize PMEGP projects and specifies excluded banks.
Physical Verification and Negative List:
PMEGP units undergo 100% physical verification by KVIC, ensuring the establishment and working status of each unit. The scheme also maintains a negative list of activities that are not eligible, including certain industries related to meat processing, intoxicant items, certain plantations, and environmentally harmful activities.
Conclusion:
The Prime Minister’s Employment Generation Programme (PMEGP) stands as a comprehensive initiative to empower individuals, promote entrepreneurship, and address unemployment challenges in both rural and urban areas. By merging two successful schemes and providing financial assistance and guidance, PMEGP contributes to sustainable economic growth, increased employment opportunities, and enhanced skill development, ultimately shaping a more resilient and self-reliant India.