Ministry of Micro, Small and Medium Enterprises, in collaboration with Khadi and Village Industries Commission (KVIC), is driving the Prime Minister’s Employment Generation Programme (PMEGP) across the nation. PMEGP facilitates the establishment of micro-enterprises in the non-farm sector, aiming to provide self-employment opportunities to traditional artisans, rural, and urban unemployed youth.
Budget Related Brief
The Prime Minister’s Employment Generation Programme (PMEGP) has been allocated a substantial outlay of Rs. 13,554.42 Crore over the 15th Finance Commission Cycle for the period of five years from 2021-22 to 2025-26. This significant investment underscores the government’s commitment to fostering entrepreneurship and generating employment opportunities across diverse socio-economic segments.
Changes in the Scheme as in 2024
Several modifications and improvements have been introduced in the PMEGP scheme in 2024 to enhance its effectiveness:
– Increased maximum project cost from Rs. 25 lakh to Rs. 50 lakh for manufacturing units and from Rs. 10 lakh to Rs. 20 lakh for service units.
– Modified definition of village industry and rural area for PMEGP, encompassing areas under Panchayati Raj institutions as rural and areas under municipalities as urban.
– All implementing agencies now accept and process applications irrespective of rural or urban categorization.
– PMEGP applicants in aspirational districts and transgender individuals are treated as special category applicants, eligible for higher subsidies.
Benefits of the Scheme
1. Employment Generation: PMEGP fosters the creation of sustainable employment opportunities, benefiting an estimated 40 lakh individuals over five financial years.
2. Margin Money Subsidy: General category beneficiaries can avail a margin money subsidy of up to 25% in rural areas and 15% in urban areas, while special category beneficiaries receive higher subsidies of 35% in rural and 25% in urban areas.
3. Project Cost Limits: The scheme accommodates a wide range of projects, with maximum project costs of Rs. 50 lakh for manufacturing units and Rs. 20 lakh for service units.
4. Geographical Distribution: Around 80% of assisted units are in rural areas, with approximately 14% located in aspirational districts, ensuring equitable development across regions.
Data Insights
– Since its inception in 2008-09, PMEGP has supported about 7.8 lakh micro-enterprises with a subsidy of Rs. 19,995 Crore, generating sustainable employment for approximately 64 lakh individuals.
– In FY 2021-22, there was a notable increase of around 40% in employment generated under PMEGP compared to FY 2018-19.
– Awareness camps, workshops, and exhibitions are organized to propagate KVI schemes, supplemented by print and electronic media publicity.
– KVIC initiatives such as the Honey Mission and Kumbhar Sashaktikaran Programme uplift rural artisans’ livelihoods and enhance employment prospects.
The Prime Minister’s Employment Generation Programme stands as a testament to the government’s commitment to fostering entrepreneurship and inclusive growth, empowering individuals across diverse socio-economic backgrounds.
