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PM Employment Generation Programme Extended For 5 Years Till FY26; To Create 40 Lakh Jobs

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The government has extended the Prime Minister’s Employment Generation Programme (PMEGP) for five years from 2021-22 to 2025-26 with an outlay of Rs 13,554.42 crore. This will facilitate the generation of employment opportunities for the unemployed youth across the country by assisting setting up of micro-enterprises in the non-farm sector.

Since its inception in 2008-09, about 7.8 lakh micro enterprises have been assisted with a subsidy of Rs 19,995 crore generating estimated sustainable employment for 64 lakh persons. About 80 per cent of the units assisted are in rural areas and about 50 per cent of units are owned by the Scheduled Caste (SC), Scheduled Tribe (ST) and women categories.

“The PMEGP has now been approved for continuation over the 15th Finance Commission Cycle for five years from 2021-22 to 2025-26 with an outlay of Rs 13,554.42 crore,” the Ministry of Micro, Small & Medium Enterprises has said in a statement.

The statement also said some major modifications have been made to the scheme. The maximum project cost has been increased from the existing Rs 25 lakh to Rs 50 lakh for manufacturing units and from the existing Rs 10 lakh to Rs 20 lakh for service units.

The definition of village industry and rural area for PMEGP has been modified — areas falling under Panchayati Raj institutions to be accounted under rural area, whereas areas under municipality to be treated as urban areas. All implementing agencies have been allowed to receive and process applications in all areas irrespective of the rural or urban category.

PMEGP applicants under aspirational districts and transgender will be treated as special category applicants and entitled to a higher subsidy.

“The scheme will create sustainable estimated employment opportunities for about 40 lakh persons in five financial years,” the ministry said adding that all the states and Union Territories will be covered under the Prime Minister’s Employment Generation Programme.

“Higher rate of Margin Money subsidy — 25 per cent of the project cost in urban area and 35 per cent of the project cost in rural areas, for special category applicants including, SC, ST, OBC, women, transgender, physically disabled, NER, aspirational and border district applicants. For general category applicants, subsidy is 15 per cent of the project cost in urban areas and 25 per cent of the project cost in rural areas,” the statement added.Any individual above 18 years of age can apply for the scheme and only new projects are considered for sanction under the PMEGP

Any individual above 18 years of age can apply for the scheme and only new projects are considered for sanction under the PMEGP.

The scheme is implemented by the Khadi and Village Industries Commission (KVIC) functioning as the nodal agency at the national level. At the state level, the scheme is implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs) and banks. In such cases KVIC routes government subsidy through designated banks for eventual disbursal to the beneficiaries/ entrepreneurs directly into their bank accounts.

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