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Prime Minister’s Employment Generation Program


PMEGP UPSC: Relevance

  • GS 3: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.



  • In the year 2021-22, KVIC, in Jammu and Kashmir, has established the highest number of manufacturing and service units under its flagship scheme- Prime Minister’s Employment Generation Program (PMEGP).

प्रधान मंत्री रोजगार सृजन कार्यक्रम

PMEGP: Key points

  • KVIC has also created the highest number of jobs in comparison with all other states and UTs in India.
  • In 2021-22,
  • KVIC had set a target of 3360 PMEGP units in J&K but buoyed by the Centre’s major push to local manufacturing, it ended up establishing a whopping 21,640 units and thus exceeding the target by a massive 544%.


UPSC Current Affairs


What is PMEGP?

  • Prime Minister’s Employment Generation Program (PMEGP) is a credit linked subsidy programme that was approved in 2008 by merging the two schemes, namely Prime Minister’s Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP).
  • It is a central sector scheme administered by the Ministry of Micro, Small and Medium Enterprises (MoMSME).
  • At the national level, the Scheme is being implemented by Khadi and Village Industries Commission (KVIC).
  • At the State level, the Scheme will be implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs) and District Industries Centres (DICs) and banks.\


PMEGP objectives

  • To generate continuous and sustainable employment opportunities in Rural and Urban areas of the country
  • To provide continuous and sustainable employment to a large segment of traditional and prospective artisans, rural and urban unemployed youth in the country through setting up of micro enterprises.
  • To facilitate participation of financial institutions for higher credit flow to micro sector.


PMEGP eligibility

  • Individuals above 18 years of age.
  • VIII Std. pass required for project above Rs.10.00 lakhs in manufacturing and above 5.00 lakhs for Service Sector.


UPSC Current Affairs


PMEGP features

  • The Scheme is implemented through KVIC and State/UT Khadi Boards in Rural areas and through District Industries Centres in Urban and Rural areas in ratio of 30:30:40 between KVIC / KVIB / DIC respectively.
  • No income ceiling for setting up of projects.
  • Assistance under the Scheme is available only to new units to be established.
  • Existing units or units already availed any Govt. Subsidy either under State/Central Govt. Schemes are not eligible.
  • Per capita investment should not exceed Rs. 1.00 lakhs in plain areas and Rs. 1.50 lakhs in Hilly areas.
  • Maximum project cost of Rs. 25.00 lakhs in manufacturing sector and Rs. 10.00 lakhs in Service Sector.


PMEGP Subsidy given

Categories of beneficiaries under PMEGP Beneficiary’s own contribution (of project cost) Rate of Subsidy
Urban Rural
General Category 10% 15% 25%
Special (including SC/ST/OBC /Minorities/ Women, Ex-Servicemen, Physically handicapped, NER, Hill and Border areas etc) 05% 25% 35%


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