Ministry of Micro,Small & Medium Enterprises

Prime Minister’s Employment Generation Programme (PMEGP)

Posted On: 02 AUG 2017 5:09PM by PIB Delhi

Prime Minister’s Employment Generation Programme (PMEGP) is a credit-linked subsidy programme aimed at generating self-employment opportunities through establishment of micro-enterprises in the non-farm sector by helping traditional artisans and unemployed youth. Any individual above 18 years of age is eligible. For setting up of projects costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business /service sector, the beneficiaries should possess at least VIII standard pass educational qualification. General category beneficiaries can avail of margin money subsidy of 25 % of the project cost in rural areas and 15% in urban areas. For beneficiaries belonging to special categories such as scheduled caste/scheduled tribe/OBC /minorities/women, ex-serviceman, physically handicapped, NER, Hill and Border areas etc. the margin money subsidy is 35% in rural areas and 25% in urban areas.


The Scheme was launched during 2008-09. A total of 4.23 lakh micro enterprises have been assisted with a margin money subsidy of Rs 8695.27 crore providing employment to an estimated 35.48 lakh persons since 2008-09 till 2016-17 across the country including the State of Maharashtra.


The State/UT-wise details of number of micro units setup and Margin Money disbursed under PMEGP during the last two years is given as Annexure-I.


Details of the target fixed/achieved during last three years in Maharashtra State are as follows:

  (Rs. In lakh)






Margin Money

Employment Generation


Margin Money disbursed

Employment Generated

















Following steps have been taken by the Government for effective implementation of PMEGP

Scheme and achieving the targets:

In order to streamline the process of application flow and fund flow and to bring in transparency and better financial management and to prevent parking of funds at Nodal bank level an online PMEGP-MIS web portal has been introduced. All applications and fund flow will be processed online in stipulated time frame.


       Publicity is being made through print and electronic media, awareness camps at District level and State level are being organized in order to propagate the PMEGP scheme for the development of micro industries.


Exhibitions are also conducted at district/state/zone and national level for providing      marketing support to the entrepreneurs/units.


 For speedy completion of EDP training, these are being conducted through   Departmental Training Centres as well as RSETIs/RUDSETIs as per MOU executed between KVIC & MCR.

Industries such as Khadi, processing of Pashmina Wool, handloom and power loom units, value added products for tea, coffee, rubber etc. and transport activities are now eligible for funding under PMEGP.


This Press Release is based on information given by the Minister of State for MSME Shri Giriraj Singh in a written reply to a question in Rajya Sabha on 02.08.2017 (Wednesday).




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