Prime Minister’s Employment Generation Programme (PMEGP)
Ministry of Micro, Small and Medium Enterprises (MSME) is implementing Prime Minister’s Employment Generation Programme (PMEGP), which is a major credit-linked subsidy programme, aimed at generating self-employment opportunities through establishment of micro-enterprises in the non-farm sector by helping traditional artisans and unemployed youth.
General category beneficiaries can avail of margin money subsidy of 25 percent of the project cost in rural areas and 15% in urban areas. For beneficiaries belonging to special categories such as Scheduled Caste/Scheduled Tribe/OBC /Minorities/Women, Ex-serviceman, Physically Handicapped, NER, Hill and Border areas etc. the margin money subsidy is 35 percent in rural areas and 25% in urban areas.
Any individual above 18 years of age is eligible. For setting up of projects costing above Rs10 lakh in the manufacturing sector and above Rs. 5 lakh in the business /service sector, the beneficiaries should possess at least VIII standard pass educational qualification. The maximum cost of projects is Rs. 25 lakh in the manufacturing sector and Rs. 10 lakh in the service sector. Benefit can be availed under PMEGP for setting up of new units only.
Subsidy under PMEGP Scheme is provided by the Union Government. The PMEGP Scheme was launched during 2008-09. Since its inception, a total of 4.47 lakh micro enterprises have been assisted with a margin money subsidy of Rs 9326.01 crore providing employment to an estimated 37.32 lakh persons from inception till 2017-18 (up to 30.11.2017).
Khadi and Village Industries Commission (KVIC) is the nodal agency at the national level. At the State/District level, State offices of KVIC, KVIBs and District Industry Centres (DIC) are the implementing agencies in the States in the ratio of 30:30:40, a PIB release recently said.
An online PMEGP e-portal https://www.kviconline.gov.in/pmegpeportal/pmegphome/index.jsp has been introduced from 1st July 2016. Entire process is made real time and online. Applicant has to apply on the online portal and he can track the status of his application on the PMEGP-e-portal. There is an online feedback mechanism for providing feedbacks by the beneficiaries, which has been encouraging.
This Press Release is based on information given by the Minister of State for MSME (Independent Charge) Shri Giriraj Singh in a written reply to a question in Lok Sabha on 01.01.2018(Monday)
Janashree Bima Yojana For Khadi Artisans
It is a group insurance for khadi artisans formulated by KVIC with LIC.
Insurance cover to khadi artisans for natural death due to accident and loss of both eyes and both limbs, plus a scholarship up to 12th standard for two children
Khadi spinners and weavers aged between 18 years and 59 years, and below and marginally above poverty line. The scheme can be availed from KVIC.
Scheme For Promotion Of Innovation, Entrepreneurship, And Agro-Industry
The scheme launched in March 2015 is headed by Steering Committee of Ministry of MSME
Agriculture, pets & animals, social impact, healthcare & life sciences are the applicable industry for the scheme.
All MSMEs with an Entrepreneurs Memorandum (EM) registration are applicable for the scheme.
Aspire has been launched by the Indian government with an objective to set up a network of technology centres, incubation centres to accelerate entrepreneurship and also to promote startups for innovation and entrepreneurship in rural and agriculture-based industry. It also includes the setting up of Technology Business Incubators (TBIs). As per the June 2017 status report of Startup India Action Plan, 15 TBIs are being set up. 11 TBIs have been approved and four others are in advanced stages. Six Technical Business Incubators are in advanced stages of approval by DST. INR 34.92 Cr has been sanctioned and INR 15.3 Cr has been already disbursed to nine TBIs.
Fiscal Incentives: One-time grant of 50% of the cost of Plant & Machinery excluding the land and infrastructure or an amount up to INR 30 Lakhs, whichever is less to be provided for supporting 20 existing incubation centres.
One-time grant of 50% of the cost of Plant & Machinery excluding the land and infrastructure or an amount up to INR 100 Lakhs, whichever is less to be provided for setting up of new incubation centres.
Support would be provided for incubation of ideas at the inception stage, each idea would be provided financial support @INR 3 Lakhs per idea to be paid up front to the incubator to nurture the idea, with a target to support 450 ideas.
A one-time grant of INR 1 Cr will be provided to the eligible incubator as Seed Capital. The Incubator will invest as Debt/ Equity funding upto 50% of total project cost or INR 20 Lakhs per startup, whichever is less. 150 such innovative and successful ideas to be supported.
Rs 200 Lakhs for Accelerators to hold 10 workshops for incubates [out of the existing centres supported and new centres set up] to assist for creating successful business enterprises. Plans to conduct 10 such workshops.
Period of incubation to be 12 months to 24 months.
Market Development Assistance
Under this scheme, financial assistance are provided for khadi institutions to improve outlets and production processes besides giving incentive to customers
20 percent of production cost for khadi cotton, woolen silk and poly vastra against the approved production target
Khadi institutions of A+, A, B and C categories can avail the scheme from KVIC.
Programme for Promotion of Village Industry Cluster – Rural Industry Service Centre (RISC) for Khadi And Village Industry
It aims to provide infrastructure support and services for local units to upgrade production capacity and skills, and market promotion.
Under the scheme maximum of Rs 25 lakh with 25 percent self-contribution, in three equal instalments.
Farmers, entrepreneurs, NGOs, SHGs, etc can apply for the scheme online on KVIC website.