Speed Post News Network
New Delhi : Ministry of Micro, Small and Medium Enterprises (MSME) is implementing Prime Minister’s Employment Generation Programme (PMEGP), a major 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.
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, according to a PIB release.
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 lakh with subsidy of 15% (20% for NER and Hilly state) from the year 2018-19.
A target for assisting 79,236 beneficiaries to establish their micro enterprises under PMEGP has been fixed during the year 2019-20 of which 54,361 beneficiaries have already been assisted up to March 15, 2020. This information was given by Nitin Gadkari, Union Minister for Micro, Small and Medium Enterprises, in written reply to a question in Lok Sabha on March 19, 2020.