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Prime Minister Employment Generation Program (PMEGP)

Topics Covered: Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes; mechanisms, laws, institutions and bodies constituted for the protection and betterment of these vulnerable sections.

Prime Minister Employment Generation Program (PMEGP):

Why in News?

PMEGP projects records 44% implementation jump.

About Prime Minister’s Employment Generation Programme:

PMEGP is a central sector scheme administered by the Ministry of Micro, Small and Medium Enterprises (MoMSME).

Launched in 2008-09, it is a credit-linked subsidy scheme which promotes self-employment through setting up of micro-enterprises, where subsidy up to 35% is provided by the Government through Ministry of MSME for loans up to ₹25 lakhs in manufacturing and ₹10 lakhs in the service sector.


National Level- Khadi and Village Industries Commission (KVIC) as the nodal agency.

State Level- State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs) and banks.


  • Any individual above 18 years of age, Self Help Groups, Institutions registered under Societies Registration Act 1860, Production Co-operative Societies and Charitable Trusts are eligible.
  • Existing Units and the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are not eligible.
  • Only new projects are considered for sanction under PMEGP.

Sources: pib.