Scheme for providing financial assistance to set up new enterprises under PMEGP
Related Scheme Prime Minister Employment Generation Programme (PMEGP)
Description 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 in their Bank accounts.
Nature of assistance The maximum cost of the project/unit admissible under manufacturing sector is Rs.25 lakh and under business/service sector is Rs.10 lakh.
Levels of funding under PMEGP
Categories of beneficiaries under PMEGP Beneficiary’s contribution (of project cost) Rate of Subsidy (of project cost)
Area (location of project/unit)
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%

The balance amount of the total project cost will be provided by Banks as term loan as well as working capital.
Who can apply? Any individual, above 18 years of age. At least VIII standard pass 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. Self Help Groups (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 the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are NOT eligible.
How to apply? The State/Divisional Directors of KVIC in consultation with KVIB and Director of Industries of 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.
The beneficiaries can also submit their application online at http://www.kviconline.gov.in/pmegp/pmegponlineapp and take the printout of the application and submit the same to respective offices along with Detailed Project Report and other required documents.
Apply Now Check Eligibility Application Procedure Download Scheme Guidelines