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Prime Minister Employment Generation Program (PMEGP):

GS Paper 2:

Syllabus: 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.



The Ministry of Micro, Small and Medium Enterprises has approved the extension of the Prime Minister’s Employment Generation Programme (PMEGP) for five years till FY26.


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 ₹50 lakhs in manufacturing and ₹20 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.



  • The scheme will create sustainable estimated employment opportunities for about 40 lakh persons in five financial years.
  • It facilitates generation of employment opportunities for unemployed youth across the country by assisting setting up of micro-enterprises in the non-farm sector.



Prelims Link:

  1. PMEGP.
  2. Eligibility.
  3. Benefits.

Mains Link:

Discuss the significance of PMEGP.


Q.3) Consider the following statements:

    1. PMEGP is a central sector scheme.
    2. It is administered by the Ministry of Finance.

Choose the correct answer using the codes given below:

    1. 1 only.
    2. 2 only.
    3. Both.
    4. None.

Sources: the Hindu.