Prime Minister Employment Generation Programme 2021

Prime Minister Employment Generation Programme (PMEGP) 2020

The educated youngsters of the nation look for befitting job opportunities. It is necessary for the betterment of their living standards. However, the combined efforts of the government and private sectors fail to generate so many occupational opportunities, to meet the demand. Thus, the central government, under the watchful eyes of Prime Minister Narendra Modi decided to develop and launch the Prime Minister Employment Generation Programme. This scheme was implemented in 2016. The central government will offer lucrative subsidies on bank credits. It will encourage people and associations to set up their business ventures. In a recent announcement, the Prime Minister highlighted that the scheme will be continued during the 2019 – 2020 financial years.


Launch details of the scheme

Name of the schemePrime Minister Employment Generation Programme 2020 or PMEGP
Launched inIndia
Launched byNarendra Modi
Date of announcement2016 – 2027
Implementation date2017
Target beneficiaries of the schemeIndividuals and organizations
Scheme approved byCabinet Committee on Economic Affairs (CCEA)
Scheme is monitored byKhadi and Village Industries Commission (KVIC)
Estimate beneficiary count15 lakhs
Budget allocated for the schemeRs. 5500 crore
Official portal for the

Online application procedure for the scheme

  1. Official portals – The Prime Minister pointed out that the individuals, who desire to acquire the perks of this project, must apply through the authorized portals. Two separate websites have been launched. The applicant can either click on or the links to gain access to the scheme details.
  2. Link for application – When the homepage opens, the applicant can either click on the link that highlights the name of the program or click on the link that is marked as “PMEGP ePortal.”
  3. Access to digitized enrollment options – Licking on any of the above two links will trigger the site to bring up the digitized application form options.
  4. Registration for individuals – In an independent person wants to apply, then he/she needs to click on the link “Online Application Form For Individual.”
  5. Access to application form – As soon as the applicant clicks on the link, the digitized for, will come up on the computer screen.
  6. Form Fill-up – Several fields are present in the enrollment form. It is mandatory for the candidate to type in the correct details in each of these fields.
  7. Form submission – Once the portal-based registration form has been filled in with the correct details, the candidate must click on the button that is marked as “Submit.”
  8. PMEGP Login – Once the preliminary application has been completed successfully, the candidate can use the credentials to make the authorized PMEGP Login. After this, the applicant can access the main enrollment form, and type in the necessary details.
  9. Application for non-individuals – The in charge of an organization can also opt for the scheme benefits. Such candidates need to fill in a separate form. The applicant can get to the digitized application form by clicking on the link.

Necessary eligibility for the program

  1. Citizens of the country – The scheme draft highlights that only the legal citizen of India will be able to register and acquire the perks of this project.
  2. Age requirement – It has been mentioned in the draft that only those applicants will be allowed to become a part of this scheme, who have completed the legal age of 18 years.
  3. Educational requirement – It is mandatory that the candidate has attended regular school. The candidates, who have appeared for and passed the final examination of class 8, can enroll for this scheme.
  4. Project budget – The candidates, who meet the educational criterion, can get Rs. 10 lakh or more loan. The money will be offered to applicants, who are associated with manufacturing sectors. If the applicant is associated with any service or business sector, then he/she will acquire a credit that crosses the Rs. 5 lakh mark.
  5. Only for new projects – The financial assistance will be offered for the development and implementation of new projects.
  6. Perks for SHGs – The Self-Help Groups, which work with people, who possess BPL certificates, can apply for the benefits of this scheme. The financial assistance will be sanctioned only if these groups have not received perks under similar schemes.
  7. Other eligible organizations – Government registered charitable trusts, co-operative societies and other institutes can also apply and avail the benefits of this new program.
  8. Not for government institutes – If any institute is getting grants from either/or state or central government, they will be considered invalid for this project.

Details of subsidy

It has been highlighted that the applicants, who run any manufacturing unit, can receive a maximum financial grant of Rs. 25 lakhs, under the PMEGP program. If the applicant offers any service, or has a business, then the maximum monetary assistance, offered as bank loan will be Rs. 10 lakhs.

Applicant CategorySubsidy For Inhabitants Of Urban AreasSubsidy For Inhabitants Of VillagesContribution Made By Applicants
General Applicants15% of the cost of the either project25% of the cost of the entire project10% of the project expenses
ST, SC, OBC And Minority Applicants25% of the cost of the project35% of the cost of the entire project5% of the project expenses
Physically Disabled, Ex-Army Individuals, Residents Of Hilly And Boarder Areas25% of the cost of the project35% of the cost of the entire project5% of the project expenses

Parameters of the program

  1. The central government officials will grant the applicant after evaluating the backwardness of the native state of the applicant.
  2. The assessment of the percentage of unemployment and the target achievement data, from the last years, will be done.
  3. The total population of the area will be a key determinant.
  4. The assessment of the skill limit of the people and the presence of traditional raw materials will be taken in account.

The scheme guidelines also highlight that the central government will offer the credit to 75 projects, in every district. Apart from portal-based application, the fund sanctioning will also be carried out via the virtual platforms.

Modifications in the program made by CCEA

  1. Those PMEGP units, which have utilized the credit amount appropriately, and have been able to acquire the target, will be offered a second loan. The amount of this loan package will be Rs. 1 crore.
  2. Merging Coir Udyami Yojana can be merged with the Prime Minister Employment Generation Programme for better performance.
  3. Continuous monitoring and evaluation techniques will be implemented.
  4. The interested applicants will have to submit copies of their PAN and Aadhar Cards to avail the scheme perks.
  5. It has been made necessary for the beneficiary units to upload their locational details with Geo Tagging.
  6. The scheme will include the hotels, which sell non-veg dishes. The units, which carry out farm-related activities, will be allowed to register for this project.
  7. The KVIC: KVIB: DIC ratio has been settled at 30:30:40.
  8. Manufacturing units, partaking in the scheme will have to arrange 40% capital. The service offering units will have to arrange 60% capital.

The central government has stated that the Prime Minister Employment Generation Programme has been developed by the MSME or Ministry of Medium, Small and Micro Enterprises. The scheme will give a necessary boost to the business enthusiasts, who desire to establish micro, small or medium ventures. Central reports shed light on the fact that around 37.98 people will be able to get jobs by the end of January 2020. The operations of the project will include about 4.55 lakh micro venture. The central government will be offering a whopping subsidy that amounts to Rs. Rs 9564.02 crore. The establishment of new businesses, especially in the rural areas, will improve the overall GDP of the country.

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