Full form, vision, and institutional framework
- Full Form: Prime Minister's Employment Generation Programme (PMEGP).
- Nodal agency: Administered by the Ministry of MSME and implemented nationally by KVIC as the single nodal agency.
- State-level implementation: Executed through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs), and commercial banks.
- Generates sustained self-employment opportunities in rural and urban areas by supporting micro-enterprises.
Project limits and margin money subsidy structure
- Eligible sectors: Covers manufacturing projects (up to statutory ceilings) and service sector projects (up to statutory ceilings).
- Rural subsidies: General category beneficiaries receive 25% margin money subsidy, while special categories (women, SC/ST, OBC, minorities, ex-servicemen, PH) receive 35% subsidy in rural areas.
- Urban subsidies: General category receives 15% subsidy, while special categories receive 25% subsidy in urban areas.
- Own contribution: Beneficiaries contribute only 5% to 10% of the total project cost as promoter equity.
Eligibility and online application via KVIC e-portal
- Individuals above 18 years of age are eligible; educational qualification of at least Class 8 pass is required for higher-value projects.
- Covers agro-processing, food manufacturing, carpentry, metal fabrication, rural transport services, and modern service workshops.
- Apply online through the PMEGP e-Portal (kviconline.gov.in) with Aadhaar, detailed project report (DPR), caste certificate, and bank details.
Official source
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KVIC PMEGP Portal ↗Related on KisanPe
Common questions
What is the full form of PMEGP?
Prime Minister's Employment Generation Programme.
Which ministry oversees PMEGP?
The Ministry of Micro, Small and Medium Enterprises (MSME), Government of India.
What is the highest subsidy percentage available under PMEGP?
Special category beneficiaries setting up projects in rural areas receive up to 35% margin money subsidy.
What is the official website for PMEGP loan applications?
Applications are submitted online at the KVIC PMEGP portal: kviconline.gov.in.
General guidance, not personal advice. For your farm, ask your local Krishi Vigyan Kendra or agriculture officer.
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