Prime Minister’s Employment Generation Programme (PMEGP) subsidy Ministry of Micro, Small and Medium Enterprises, India


Ministry of micro, small and medium enterprises


The scheme is implemented by Khadi and Village Industries Commission (KVIC) as the nodal agency at the national level. At the state level, the scheme is implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs) and District Industries Centres (DICs) and banks. The Government subsidy under the scheme is routed by KVIC through the identified banks for eventual distribution to the beneficiaries/entrepreneurs into their bank accounts.

Sponsored By

Central Government of India


Provides subsidy, implemented by KVIC through identified banks, only for new projects


Any individual above 18 years of age can apply. The beneficiary must have passed at least VIII standards for projects costing above Rs.10 lakh in the manufacturing sector, and above Rs.5 lakh in the business/service sector. Only new projects are considered for sanction under PMEGP. SHGs (including those belonging to BPL, provided that they have not availed benefits under any other scheme), institutions registered under Societies Registration Act, 1860; Production Co-operative Societies and Charitable Trusts are also eligible.

Existing units (under PMRY, REGP or any other scheme of Government of India or State Government) and units that have already availed Government subsidy under any other scheme of The government of India or State Government are not eligible.



The maximum cost of the project/unit admissible in manufacturing sector is Rs.25 lakh and in business/service sector is Rs.10 lakh. Levels of funding under PMEGP:

The balance amount of the total project cost will be provided by the banks as term loan and working capital.
Categories of beneficiaries under PMEGP Beneficiary’s contribution (of project cost) Rate of subsidy (of project cost)
Area (location of project/unit) UrbanRural
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%

How To Apply

A Udyami Helpline: Dial 1800-180-6763 [Toll Free Number] for queries relating to this Schemes.

The State/Divisional Directors of KVIC in consultation with KVIB and Director of Industries of the 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.

Date of Launch





Micro, small and Medium enterprises

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