Government of India has approved the
introduction of a new credit linked subsidy programme called Prime Minister’s Employment Generation
Programme (PMEGP) by merging the two schemes that were in operation till
31.03.2008 namely Prime Minister’s Rojgar Yojana (
(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 artisans and contribute to increase in the growth rate of rural and
urban employment.
3. Quantum
and Nature of Financial Assistance
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, |
05%
|
25%
|
35% |
Note: (1) The maximum cost of the project/unit
admissible under manufacturing sector is Rs. 25 lakh.
(2)
The maximum cost of the project/unit admissible under business/service sector
is Rs. 10 lakh.
(3) The balance amount of the total project
cost will be provided by Banks as term loan