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Continuation of Prime Minister's Employment Generation Programme (PMEGP)

Continuation of Prime Minister's Employment Generation Programme (PMEGP)

In news:

The Cabinet Committee on Economic Affairs chaired by the Prime Minister Shri Narendra Modi has approved the continuation of Prime Minister's Employment Generation Programme (PMEGP) beyond 12th Plan for three years from 2017-18 to 2019-20.


  • Scheme will create sustainable estimated employment opportunities for 15 lakh persons in three financial years.
  • Khadi and Village Industries Commission (KVIC) is the nodal implementation agency at the national level. At the State/district level, State offices of KVIC, Khadi and Village Industries Boards (KVIBs) and District Industry Centres (DIC) are the implementing agencies. Applications are invited and processed on-line on PMEGP-e-portal.

Targets are fixed taking into account:

  • Extent of backwardness of State;
  • Extent of unemployment;
  • Extent of fulfillment of previous year targets;
  • Population of State/Union Territory; and
  • Availability of traditional skills and raw material.


PMEGP is a major credit-linked subsidy programme being implemented by the Ministry of MSME since 2008-09. The Scheme is aimed at generating self-employment opportunities through establishment of micro-enterprises in the non-farm sector by helping traditional artisans and unemployed youth in rural as well as urban areas.

A total of 4.55 lakh micro enterprises have been assisted with a margin money subsidy of Rs 9564.02 crore providing employment to an estimated 37.98 lakh persons from inception till 31.01.2018.

Modifications/improvements made in the Scheme:

  • Second loan of upto Rs. one crore to existing and better performing PMEGP units for upgrading with subsidy of 15%
  • Merger of Coir Udyami Yojana (GUY) in PMEGP;
  • Introduction of concurrent monitoring and evaluation
  • Mandatory Aadhaar and Pan card;
  • Geo-tagging of units;
  • Negative list under PMEGP amended allowing serving/selling non-vegetarian food at Hotels/Dhabas and Off Farm/Farm Linked activities.
  • Dispensing the ratio of 30:30:40 for KVIC/KVIB/DIC.