The Prime Minister's Employment Generation Programme (PMEGP) is a credit-linked subsidy scheme aimed at generating employment opportunities through the establishment of new micro-enterprises in both rural and urban areas.
Here is a breakdown of the eligibility criteria and required documents:
Eligibility Criteria for PMEGP
1. General Criteria for Individuals:
- Age: Any individual above 18 years of age.
- Income Ceiling: No income ceiling for assistance.
- New Projects: Assistance is available only for new viable projects sanctioned specifically under PMEGP. Existing units or units that have already availed government subsidies under any other scheme (like PMRY, REGP, etc.) are generally not eligible.
- Educational Qualification:
- For projects costing above Rs. 10 lakhs in the manufacturing sector and above Rs. 5 lakhs in the business/service sector, beneficiaries should possess at least an VIII standard pass educational qualification.
- Family Limit: Only one person from one family (self and spouse) is eligible to obtain financial assistance for setting up projects under PMEGP.
- Aadhaar: Applicant should possess a valid Aadhaar Number and provide consent for demographic detail authentication.
- Prohibited Activities: Certain activities are typically excluded, such as:
- Any industry/business connected with meat (slaughtered), or serving items made of it as food.
- Production/manufacturing or sale of intoxicant items like beedi, pan, cigar, cigarette, etc.
- Hotels or Dhaba’s or sales outlets serving liquor.
- Preparation/producing tobacco as raw materials.
- Any industry/business connected with the cultivation of crops/plantations like tea, coffee, rubber, sericulture (cocoon rearing), horticulture, floriculture, and animal husbandry. However, value addition activities related to these are permitted.
- Activities prohibited by local government/authorities due to environmental or socio-economic factors.
2. Other Eligible Entities:
- Self Help Groups (SHGs) (including those belonging to BPL, provided they have not availed benefits under any other scheme).
- Institutions registered under the Societies Registration Act, 1860.
- Production Co-operative Societies.
- Charitable Trusts.
3. EDP Training:
- Entrepreneurship Development Programme (EDP) training is compulsory for beneficiaries before the release of the loan by the banks.
- For project costs more than Rs. 5 lakhs, 10 working days of EDP training is required.
- For project costs up to Rs. 5 lakhs, 5 working days of EDP training is required.
- EDP training is not mandatory for projects up to Rs. 2 lakhs.
4. Collateral Security:
- As per RBI guidelines, projects costing up to Rs. 10 lakh under PMEGP loans are generally free from collateral security.
- The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) provides collateral guarantee for projects.
Required Documents for PMEGP
When applying for the PMEGP scheme, generally the following documents are required:
For Individuals:
- Aadhaar Card
- PAN Card
- Passport Size Photograph
- Project Report/Detailed Project Report (DPR): This is crucial and should outline your business plan, estimated costs, and projections. Model projects are often available on the PMEGP e-portal to assist with this.
- Highest Educational Qualification Certificate: Especially important if your project cost falls into the higher categories (above Rs. 10 lakh for manufacturing or Rs. 5 lakh for business/service).
- Caste/Community Certificate: If applying under special categories (SC/ST/OBC).
- Special Category Certificate: If applicable (e.g., Minorities, Women, Ex-Servicemen, Physically Handicapped, NER, Hill, and Border areas).
- Rural Area Certificate: If the project is located in a rural area.
- Entrepreneurship Development Programme (EDP)/Skill Development Training Certificate: If you have already undergone the training.
- Identity Proof: (e.g., Voter ID, Driving License)
- Address Proof: (e.g., Utility bills, Ration Card)
- Any other document required by the bank or financial institution on a case-to-case basis.
For Institutions (SHGs, Co-operative Societies, Trusts): In addition to the applicable documents from the individual list, institutions will typically need:
- Registration Certificate
- Authorization Letter/Copy of Bye-laws: Authorizing the secretary or other designated person to apply on behalf of the institution.
- Certificate for Special Category: If the institution itself is registered as belonging to a special category.
Important Notes:
- Applications are primarily submitted online through the PMEGP e-portal (kviconline.gov.in/pmegpeportal).
- All scanned documents should generally be uploaded (usually up to 1 MB size).
- The process involves checking eligibility, Aadhaar authentication, generating a user ID and password, filling out the application, uploading documents, and final submission.
- Applicants can track the status of their application online.
It's always advisable to refer to the official KVIC (Khadi and Village Industries Commission) website or contact the nearest KVIC/KVIB (Khadi and Village Industries Board)/DIC (District Industries Centre) office for the most up-to-date and specific information, as guidelines can sometimes be updated.
