Up to 35% Subsidy for New Projects

PMEGP Scheme: Get up to 35% Subsidy for Manufacturing & Service Units

Prime Minister's Employment Generation Programme

A credit-linked subsidy scheme launched by the Government of India for setting up new micro-enterprises to generate employment in rural and urban areas.

Subsidy Rate

15% - 35%

Higher subsidy for rural & special categories

Max Project Cost

₹50 Lakh

Manufacturing (₹20 Lakh for Service)

Own Contribution

5% - 10%

Of the total project cost

Eligible Sectors

Manufacturing & Service

New business ventures only

About PMEGP Scheme

The Prime Minister's Employment Generation Programme (PMEGP) is a flagship scheme of Ministry of MSME, Government of India.

It is implemented by Khadi and Village Industries Commission (KVIC) at the national level. In states, it is implemented through State KVIC Directorates, State KVIBs, and District Industries Centres (DICs).

The scheme aims to bring together widely dispersed traditional artisans and rural/urban unemployed youth to set up self-employment ventures.

Key Features

💰

Up to 35% Subsidy

Provides financial subsidy of 15% to 35% on total project cost, depending on location (urban/rural) and category.

⚙️

Broad Sector Coverage

Covers setting up new micro enterprises in manufacturing, processing, as well as service industries.

💼

Low Owner's Share

Only 5% of project cost is required as own contribution for special categories, and 10% for general categories.

🏡

Rural & Urban Reach

Administered globally, benefiting unemployed youth and traditional artisans across both urban and rural India.

🏦

Bank Funding Support

Rest of the project cost is sanctioned as a term loan and cash credit by partner commercial and public banks.

🎓

EDP Training Program

Compulsory Entrepreneurship Development Programme training is provided to equip you for successful business operations.

Who Can Apply?

Eligibility Rule 1

Any individual above 18 years of age.

Eligibility Rule 2

At least VIII standard pass educational qualification for projects costing above ₹10 Lakh in manufacturing and ₹5 Lakh in service sector.

Eligibility Rule 3

Self Help Groups (SHGs) and Charitable Trusts.

Eligibility Rule 4

Institutions registered under Societies Registration Act, 1860, and Production Co-operative Societies.

Key Benefits & Subsidies

Benefit 1

Subsidy ranges from 15% to 25% for General category in urban and rural areas respectively.

Benefit 2

Subsidy ranges from 25% to 35% for Special categories (SC/ST/OBC/Minorities/Women/Ex-servicemen/PH) in urban and rural areas respectively.

Benefit 3

Balance amount of project cost is provided by banks as term loans and working capital.

Benefit 4

Provides Entrepreneurship Development Programme (EDP) training to ensure successful running of the venture.

Documents Required

Aadhaar Card, PAN Card, and Caste Certificate (if applicable).

Educational Qualification Certificate (8th pass certificate for high-value projects).

Detailed Project Report (DPR) explaining project viability.

Population Certificate (Rural areas only, certified by Gram Panchayat).

Passport size photographs.

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