PM's Employment Generation Programme extended for 5 yrs till 2025-26

The government has approved the extension of the Prime Minister's Employment Generation Programme (PMEGP) for five years from 2021-22 to 2025-26 with an outlay of Rs.13554.42 crore. 

PMEGP had been launched in 2008 to facilitate the generation of employment opportunities for unemployed youth across the country by assisting setting up of micro-enterprises in the non-farm sector.

Since its inception in 2008-09, about 7.8 lakh micro enterprises have been assisted with a subsidy of Rs 19,995 crore generating estimated sustainable employment for 64 lakh persons. About 80 per cent of the units assisted are in rural areas and about 50 per cent units are owned by SC, ST and women categories, explained Ministry of Micro, Small & Medium Enterprises in an official statement. 

"The PMEGP has now been approved for continuation over the 15th Finance Commission Cycle for five years from 2021-22 to 2025-26 with an outlay of Rs.13554.42 crore," read the statement. The government expects the scheme to create sustainable estimated employment opportunities for about 40 lakh persons in five financial years.

The government has also increased the maximum project cost from the existing Rs 25 lakh to Rs 50 lakh for manufacturing units and from existing Rs.10 lakh to Rs.20 lakh for service units. 

It has modified the definition of village industry and rural area for PMEGP. Now, areas falling under Panchayti Raj institutions will be accounted under rural area, whereas areas under municipality to be treated as urban area.

All implementing agencies are now allowed to receive and process applications in all areas irrespective of the rural or urban category. PMEGP applicants under aspirational districts and transgender will be treated as special category applicants and entitled for higher subsidy.

"Higher rate of Margin Money subsidy - 25 per cent of the project cost in urban area and 35 per cent of the project cost in rural areas, for special category applicants including, SC, ST, OBC, women, Transgender, Physically Disabled, NER, Aspirational and Border district applicants. For General category applicants subsidy is 15% of the project cost in urban area and 25 per cent of the project cost in rural areas," noted the ministry.  

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