Know Your Rights: PM's employment generation programme

The scheme is implemented by the Ministry of Micro, Small and Medium Enterprises, Government of India.

Bimal BhutaUpdated: Monday, November 28, 2022, 10:43 AM IST
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PM Narendra Modi | PTI Photo

The Prime Minister's Employment Generation Programme (PMEGP) facilitates the generation of employment opportunities for unemployed youth across the country by assisting in the set-up of micro-enterprises in the non-farm sector.

The scheme is implemented by the Ministry of Micro, Small and Medium Enterprises, Government of India. It provides funding support for the establishment of new businesses. Since its inception, around 7.8 lakh micro enterprises have been assisted with a subsidy of Rs19,995 crore, generating sustainable employment for an estimated 64 lakh persons.

Features

The maximum fund provided for manufacturing units is Rs. 50 lakh while for service units it is Rs. 20 lakh. According to this scheme, the business owner needs to contribute 5-10% of the project cost, while the government will cover 15-35%, depending on various conditions.

The partnering banks provide applicants with term loans at competitive interest rates for the remainder of the project cost. Collateral is not required for projects costing up to Rs. 20 lakh under the PMEGP scheme.

The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) provides a collateral guarantee for the project beyond Rs5 lakh and up to Rs50 lakh under the PMEGP scheme.

Project list of businesses that come under PMEGP

https://www.kviconline.g ov.in/pmegp/pmegpweb/doc s/jsp/newprojectReports.jsp

Eligibility

Any individual over the age of 18 can apply Self-help groups (SHGs) and charitable trusts can apply Societies registered under Societies Registration Act, 1860, can apply For projects costing more than Rs10 lakh in the manufacturing sector and more than Rs5 lakh in the business / service sector, minimum education up to standard VIII (pass) is required.

PMEGP only considers new projects for approval Existing units that have previously received government subsidy under any other scheme of the Government of India or the State Government are ineligible.

Required Documents

PAN card, Aadhaar card, VIII Pass certificate etc

Entrepreneur Development Programme (EDP) training certificate

Academic and technical course certificates

Any other documentation that the bank or NBFC requires

How to obtain EDP certificate

The objective of the Entrepreneurship Development Programme (EDP) is to provide orientation and awareness pertaining to various managerial and operational functions like finance, production, marketing, taxation, enterprise management, banking formalities, bookkeeping, etc.

The online training can be taken by registering with this online elearning portal on a PC or by downloading mobile apps. The e-portal can be accessed at http://www.udyami.org.in or http://www.kvic.udyami.org.in or by downloading the mobile app 'Udyami' from the 'Google Play' store.

How to apply online for PMEGP

Visit the official website of PMEGP https://www.kviconline. gov.in/pmegpeportal/jsp/ pmegponline.jsp

Follow guidelines for filling out the online PMEGP application After filling in all required details, click on 'Save Applicant Data' Upload all documents for final submission of the application form Once application is submitted, ID number and password will be sent to registered mobile number

How long does it take

After the training program is completed which is of around 16 days, the approximate time duration to avail loan under PMEGP from banks is approximately two months in total.

Whom to contact

State Director, KVIC Dy CEO (PMEGP), KVIC, Mumbai Phone: 022-26711017

(The writer is a Vile Parle-based social activist)

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