PMEGP Scheme (Prime Minister’s Employment Generation Programme)
Video Explanation & Insights
Prime Minister’s Employment Generation Programme
Launched in August 2008, the Prime Minister’s Employment Generation Programme (PMEGP) is a credit-linked subsidy scheme under the Ministry of Micro, Small, and Medium Enterprises (MSME). PMEGP aims to create employment opportunities by establishing micro-enterprises in both rural and urban areas.
This scheme merges two earlier initiatives—Prime Minister’s Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP)—and focuses on generating sustainable self-employment at a local level.
Key Benefits of the PMEGP Scheme
Financial assistance to set up new enterprises and upgrade existing units. Subsidy rates range from 15% to 35% depending on location (urban/rural) and beneficiary category (general/special).
Support for awareness camps, entrepreneurship development programs, exhibitions, and technological support.
Financial assistance available for existing PMEGP, REGP, or MUDRA units to modernize or expand operations.
Eligibility Criteria
Any individual above 18 years of age. There is no income ceiling. For projects costing over ₹10 lakh in manufacturing or ₹5 lakh in service/business, the applicant must have at least an 8th-grade education.
The existing unit must have successfully adjusted the first PMEGP subsidy after a period of three years, have a good profit record, and show potential for expansion.