PMEGP — Prime Minister's Employment Generation Programme for Maharashtra Entrepreneurs
Credit-linked support for eligible new entrepreneurs and enterprises.
PMEGP Scheme Overview
Credit-linked support for eligible new entrepreneurs and enterprises.
Eligibility
Assess the enterprise, project location and applicable scheme conditions before submission.
Documentation
Coordinate the project documents and scheme-specific application requirements.
Make the incentive process a project workflow.
NM Corporation can assist with scheme identification, documentation and coordination based on the applicable government programme.
Prime Minister's Employment Generation Programme (PMEGP)
Prime Minister's Employment Generation Programme (PMEGP) is a credit-linked subsidy scheme administered by the Ministry of Micro, Small and Medium Enterprises (MSME) and implemented by the Khadi and Village Industries Commission (KVIC). It is designed to generate employment opportunities in rural and urban areas by setting up new self-employment ventures and micro-enterprises.
₹50 Lakh
Manufacturing Sector: Up to ₹50 lakh.
₹20 Lakh
Service/Business Sector: Up to ₹20 lakh.
Subsidy Details & Beneficiary Contribution
The government provides a "Margin Money" subsidy, and the applicant must provide a small initial contribution, with banks financing the remainder of the project cost.
| Applicant Category | Location | Govt Subsidy | Applicant Contribution |
|---|---|---|---|
| General | Urban | 15% | 10% |
| General | Rural | 25% | 10% |
| Special (Women, SC/ST, OBC, Minorities, Ex-servicemen, Physically Handicapped) | Urban | 25% | 5% |
| Special | Rural | 35% | 5% |
PMEGP empowers
entrepreneurs to build
sustainable businesses
and create employment
opportunities.
Key Eligibility Criteria
Age: Any individual above 18 years of age.
Education: Must have passed at least VIII standard if setting up a manufacturing project above ₹10 lakh or a service/business project above ₹5 lakh.
Project Status: Only new projects/micro-enterprises are eligible. Existing units or those that have already availed government subsidies under other schemes (like PMRY, REGP) are not eligible.
Sector: Must fall under the non-farm sector.
Entities: Self-help groups (including those belonging to BPL), institutions registered under the Societies Registration Act, production co-operative societies, and charitable trusts are also eligible.
Second Loan for Expansion/Upgradation
Successful PMEGP units that have repaid their initial loan and been profitable for the last three years can apply for a second loan to upgrade or expand.
Application Process & EDP Training
- Online Portal: All applications must be submitted directly through the KVIC PMEGP e-Portal.
-
Documents Required:
- Aadhaar Card and PAN Card.
- Detailed Project Report (DPR) covering cost, revenue, and technical feasibility.
- Educational Certificate (if the project exceeds ₹10 lakh for manufacturing or ₹5 lakh for service).
- Caste/Special Category Certificate (if claiming enhanced subsidy).
- Mandatory Training: Once approved, applicants must complete a 10-day Entrepreneurship Development Programme (EDP), which covers basic business management and operational skills before the loan is released.
- Subsidy Lock-In Period: The government subsidy (margin money) is not given as cash. It is kept in a Term Deposit Receipt (FDR) at the financing bank for 3 years. After the lock-in period and successful verification of the unit's operation, it is adjusted against the principal loan amount.
Negative List (Ineligible Activities)
PMEGP assistance is not available for certain activities, including but not limited to:
- Any industry/business connected with slaughtered meat, intoxicants (like beedi/pan/cigar), or tobacco products.
- Manufacturing of restricted plastic products (such as polythene carry bags below a certain thickness).
- Businesses involving crop cultivation, tea/coffee/rubber plantations, or rural transport (except auto-rickshaws in specific areas).
- Pure trading or retail sales outlets (except in specific underdeveloped regions like the North East or Left-Wing Extremism-affected districts).
NM Corporation
NM Corporation acts as a comprehensive industrial consultancy and licensing agency that guides new and expanding enterprises through the complexities of setting up and operating. We provide end-to-end turnkey services to ensure projects meet all statutory requirements and secure available financial benefits.
Here is how We assist with industrial and commercial projects:
Subsidy and Grant Management: They handle the application and compliance processes for various government financial schemes, including PMEGP and PSI-19, ensuring projects maximize their eligible subsidies and margin money.
Project Reports & Feasibility: They assist in drafting the Detailed Project Reports (DPRs) and financial plans required by banks and nodal agencies (like KVIC) to secure project financing and expansion loans.
Regulatory Clearances: They manage the entire liaisoning process to obtain mandatory approvals from local and state departments, such as the Maharashtra Pollution Control Board (MPCB), fire safety authorities, and environmental clearance boards.
Infrastructure & Land Setup: They facilitate the acquisition and development of industrial plots within zones like MIDC (Maharashtra Industrial Development Corporation) and DMIC AURIC, handling everything from non-utilization charge calculations to structural compliance for industrial sheds.
Utility Connections: They coordinate with agencies like MSEB to ensure essential utilities are established for greenfield manufacturing plants and new industrial facilities.
Government schemes should be matched to the actual project.
NM Corporation covers major Central and State government schemes relevant to MSMEs and industries in Maharashtra.
PMEGP — Prime Minister's Employment Generation Programme for Maharashtra Entrepreneurs
Ministry of MSME
PMEGP Scheme Overview
- Ministry: MSME
- Implementing Agencies: KVIC, KVIB, DIC
Objectives of PMEGP
- Generate self-employment opportunities
- Support new micro enterprises
PMEGP Financial Assistance
- General (Urban): 15%
- General (Rural): 25%
- SC / ST / Women / Minority (Urban): 25%
- SC / ST / Women / Minority (Rural): 35%
PMEGP Maximum Project Cost
- Manufacturing Sector: ₹50 Lakh
- Service Sector: ₹20 Lakh
Major MSME and industrial schemes we cover
The source material lists PSI-19, PMEGP, CGTMSE and food-processing related schemes among the covered programmes.
Need to know which scheme fits?
Start with your project, investment, location and business activity.