The PMEGP scheme, launched on 15th August 2008, merges the earlier PMRY and REGP schemes to promote employment through micro-enterprises. Implemented by KVIC at the national level, the scheme is executed in Himachal Pradesh by the H.P. Khadi and Village Industries Board, State KVIC offices, and DICs. Project proposals are submitted online to banks for sanction. Banks sanction 90% of the project cost for general category beneficiaries and 95% for special categories SC/ST/OBC/Min./Women/PHC/Ex-Servicemen, with the remaining 10% or 5% as the beneficiary’s own contribution. The Board releases Margin Money (subsidy) at 25% for general category and 35% for special categories. After sanction, beneficiaries must complete mandatory EDP training (6 days for projects up to ₹5 lakh, 14/10 days for projects above ₹5 lakh) before the first loan installment is released. The Margin Money is kept in a Term Deposit Receipt (TDR) for 3 years, with no interest paid on TDR and no interest charged on the corresponding loan amount. Physical verification of units is conducted by KVIC-engaged agencies, and Margin Money is adjusted after 3 years if the unit meets scheme parameters. In 2023-24, the Board sponsored 1064 projects, with 349 sanctioned, involving a project cost of ₹4293.60 lakh, Margin Money of ₹1431.20 lakh, and employment for 2792 individuals.
The objective of the scheme
- To generate employment opportunities in rural as well as urban areas of the country through setting up of new self-employment ventures/projects/micro enterprises.
- To bring together widely dispersed traditional artisans/ rural and urban unemployed youth and give them self-employment opportunities to the extent possible, at their place.
- To provide continuous and sustainable employment to a large segment of traditional and prospective artisans and rural and urban unemployed youth in the country, so as to help arrest migration of rural youth to urban areas.
- To increase the wage-earning capacity of workers and artisans and contribute to increase in the growth rate of rural and urban employment
The level of assistance under scheme is as under:-
(i)For setting up of new micro enterprise (units):-
| Categories of beneficiaries under PMEGP (for setting up of new enterprises) | Beneficiary’s contribution (of project cost) | Rate of Subsidy (of project cost) | |
| Area (location of project/unit) | Urban | Rural | |
| General Category | 10% | 15% | 25% |
| Special Category (including SC,ST,OBC, Minorities, Women, Ex-Servicemen, Transgenders, Differentlyabled, NER, Aspirational Districts, Hill and Border areas (as notified by the Government) etc. | 05% | 25% | 35% |
Note:
- The maximum cost of the project/unit admissible for Margin Money subsidy under Manufacturing sector is Rs. 50 lakhs.
- The maximum cost of the project/unit admissible for Margin Money subsidy under Business/Service sector is Rs. 20 lakhs.
- The balance amount (excluding the own contribution) of the total project cost will be provided by Banks.
If the total project cost exceeds Rs. 50 lakhs or Rs. 20 Lakhs for Manufacturing and Service/Business sector respectively, the balance amount may be provided by Banks without any Government subsidy.
Application Process:
The document mentions that project proposals are submitted through the PMEGP online portal to banks for sanction. For further details or to apply, visit KVIC website (https://kviconline.gov.in/).