PMEGP Scheme is an employment generation scheme which has been set up by the Ministry of Small-Scale Industries of India. Its goal is to offer funds to youths who are jobless, traditional craftsmen, and everyone else who wishes to set up a small business in the non-farm sub-sector. Due to Credit-cum-Subsidy Scheme for Employment Generation, PMEGP Scheme supports self-employment in villages and cities and the formation of micro and small businesses.
What Is The PMEGP Scheme?
The Prime Minister’s Employment Generation Programme (PMEGP) is a government scheme that offers financial support to people who want to start new micro-enterprises. Due to the subsidies of up to 35% of project cost for its implementation, this scheme provides support to self-employment and prevents excessive reliance on conventional commerce.
PMEGP Scheme- Key Features
The PMEGP scheme encourages entrepreneurship because the credit linked with subsidies for new business promotion is available. Here are the key features:
- Subsidy-Linked Financial Assistance: Again, depending on the area of operation and sector, the scheme offers a subsidy ranging between 2/3 of the project cost and one-third of cost; or between 15% and 35% of the total cost.
- Focus on New Enterprises: The govt scheme is available only for new entrants or greenfield companies to ensure that help is given to new and unique initiatives rather than existing ventures.
- Mixed Eligibility: It is extendible to anyone like an individual, SHG, charitable trust, co-operative societies, institution etc.
PMEGP Scheme- Benefits
The PMEGP gives numerous incentives to facilitate the start-up formation of small-scale enterprises for manufacturing goods or service sectors. Key benefits include
- Financial Assistance: Manufacturing entrepreneurs can avail up to ₹ 25 lakhs and service sector enterprises can avail financial help up to ₹10 lakhs.
- Encouraging New Ventures: The government scheme is confined to green field projects and encourages the setting up of new ventures and self-employment.
- Employment Generation: In addition to fostering new entrepreneurial initiatives, the scheme also creates employment in the resulting enterprises, primarily in rural and other unserved urban regions.
PMEGP Scheme- Eligibility Criteria
To qualify for the PMEGP scheme, applicants must be:
- Adults over eighteen years of age.
- From economically weaker sections or another underprivileged section of society like artisans and unemployed youths.
- Looking to set up a company from the ground up (greenfield investment).
PMEGP Scheme- Documents Required
Applicants need to submit several documents to apply for the PMEGP scheme, including:
- Caste Certificate if any.
- The certificates offered for rural applicants include; the Rural Area Certificate.
- Project Report containing the business plan of the Project.
For the complete set of information regarding the PMEGP scheme, Its benefits, features, Loan limit and loan details, objectives, eligibility criteria and documents required read the comprehensive article on Jaagruk Bharat.
PMEGP Scheme- Step-By-Step
For detailed guidance on how to apply read the step-by-step guide provided by Jagruk Bharat titled PMEGP Scheme – Prime Minister’s Employment Generation Programme for New Entrepreneurs
Conclusion
The PMEGP scheme is one of the most important government-supported ventures for generating self-employment and reducing unemployment in rural and urban India. By providing funds for investment into fresh ventures it supports the youth and traditional craftsman, hence proving itself helpful in the modernization and generation of the country’s economic growth.
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