PMEGP is a central sector scheme being administered by the Ministry of Micro, Small and Medium Enterprises (Mo MSME).The scheme is being implemented by Khadi and Village Industries Commission (KVIC), a statutory organization under the administrative control of the Ministry of MSME as the single nodal agency at the National level. At the State level, the scheme is implemented through State offices of KVIC, State Khadi and Village Industries Boards (KVIBs),District Industries Centres (DICs), Coir Board(for coir related activities) and Banks. Government may also involve other suitable agencies for implementation of the scheme. The Government subsidy under the scheme is routed by KVIC through the nodal Bank to the Financing Bank branches & subsequently transferred to the beneficiary account after completion of lock-in period based on the outcome of the physical verification report.

Objectives (i) To generate employment opportunities in rural as well as urban areas of the country through setting up of new self-employment ventures/projects/micro enterprises. (ii) To bring together widely dispersed traditional artisans! rural and urban unemployed youth and give them self-employment opportunities to the extent possible, at their place. (iii) To provide continuous and sustainable employment to a large segment of traditional and prospective artisans and rural and urban unemployed youth in the country, so as to help arrest migration of rural youth to urban areas. iv)To increase the wage-earning capacity of workers and artisans and contribute to increase in the growth rate of rural and urban employment.

Eligibility Conditions of Beneficiaries 

For PMEGP new enterprises (Units)

i. Any individual, above 18 years of age ii. There will be no income ceiling for assistance for setting up projects under PMEGP. iii. For setting up of project costing above Rs.10 lakh in the Manufacturing sector and above Rs. 5 lakh in the Business /Service sector, the beneficiaries should possess at least VIII standard pass educational qualification. iv. Assistance under the scheme is available only for new projects sanctioned specifically under the PMEGP. vi) 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.

Other eligibility conditions for PMEGP (New units)

(i) Projects without Capital Expenditure are not eligible for Financing under the Scheme. (ii) Cost of the land should not be included in the Project cost. Cost of the ready built shed as well as long lease or rental Work-shed/Workshop can be included in the project cost subject to restricting such cost of ready built as well as long lease or rental workshed/workshop to be included in the project cost calculated for a maximum period of 3 years only. (iii) PMEGP is applicable to all new viable microenterprises, including Village Industries projects except activities prohibited by local Government/Authorities keeping in view environment or soclo-economic factors and activities indicated in the negative list of the guidelines.

Financial Institutions

i. All Public Sector Banks

ii. All Regional Rural Banks, Co-operative Banks, Private Sector Scheduled Commercial Banks regulated by RBI

iii. Small Industries Development Bank of India (SIDBI)