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Financial Assistance for MSME

Mar 23, 2020

Financial Assistance under Prime Ministers Employment Generation Programme, PMEGP

For generating the employment in unban as we as rural area the MSME Department has started the Prime Minister’s Employment Generation Programme (PMEGP)

We can understand following points in this blog:

  1. What is PMEGP?
  2. Who is Implementation authority of this programme?
  3. What is nature of assistance?
  4. Who can apply?
  5. How to apply?
  6. What is PMEGP?

It means “Prime Minister Employment Generation Programme (PMEGP)”

  1. Who is Implementation authority of this programme?

Following are the Implementation Authority:

  • National Level: Khadi and Village Industries Commission (KVIC) as the nodal agency
  • State Level: KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs) and banks.
  1. What is nature of assistance?

Following is the Maximum Project/Unit Cost:

  • Manufacturing Sector:                                            25 Lakhs
  • Service Sector:                                                     10 Lakhs

Subsidy under PMEGP (of project cost):

  • For General Category:

(a)     Urban:                         15%

(b)     Rural:                          25%

  • For Special Category:

(a)     Urban:                         25%

(b)     Rural:                          35%

Note: Special Category including SC/ ST/ OBC/ Minorities/Women, Ex-servicemen, Physically handicapped, NER, Hill and Border areas, etc.

Bank Finance:

Balance amount of project cost: by the banks in the form of Term loan and Working capital.

  1. Who can apply?

Any Individual can apply subject to the following

          Age: above 18 years.

Education: At least VIII standard pass for projects costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business / service sector.

New Project: Only new projects are considered for sanction under PMEGP.

Self Help Groups: Self Help Groups including those belonging to BPL provided that they have not availed benefits under any other Scheme),

Institutions registered under Societies Registration Act,1860 can apply.

Production Co-operative Societies, and Charitable Trusts.

Note: Existing Units (under PMRY, REGP or any other scheme of Government of India or State Government) and the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are NOT eligible.

  1. How to apply?
  • Offline Application: The State/Divisional Directors of KVIC in consultation with KVIB and Director of Industries of respective states (for DICs) will give advertisements locally through print & electronic media inviting applications along with project proposals from prospective beneficiaries desirous of establishing the enterprise/ starting of service units under PMEGP.
  • Online Application: The beneficiaries can also submit their application online at https://www.kviconline.gov.in/pmegpeportal/pmegphome/index.jsp and take the printout of the application and submit the same to respective offices along with Detailed Project Report and other required documents.

Written by:

CA. Rajeev Ranjan Shrivastava

M: 8527701333

E: ca.rajranjan@gmail.com

W: www.digitalca.in