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All StatesBusiness & MSMECentral Scheme

PMEGP (Prime Minister Employment Generation Programme)

Managed by: Ministry of Micro, Small and Medium Enterprises (Khadi and Village Industries Commission (KVIC))

About the Scheme

PMEGP is a major credit-linked subsidy program targeting employment generation through the establishment of new micro-enterprises in rural and urban areas.

Welfare Benefits & Assistance

  • •Credit-linked subsidy for new projects: up to Rs. 50 Lakhs (manufacturing) and Rs. 20 Lakhs (service)
  • •State-backed margin money subsidy ranging from 15% to 35% based on location and category

Eligibility Criteria

State ResidencyCitizen of India
Age Limits18 years or above
Family Income CapUnemployed individuals starting new micro-enterprises
Social Class / CategoryAll categories (enhanced benefits for SC/ST/OBC/Women)

Additional Prerequisites

  • Must have passed at least Class 8 for projects costing above Rs. 10 Lakhs (manufacturing) and Rs. 5 Lakhs (service)

Documents Required for Application

Tip: Keep scanned color copies of these documents ready before starting your application.

How to Apply (Step-by-Step Guide)

1

Apply on the PMEGP e-Portal (kviconline.gov.in/pmegpeportal)

Who Should Apply?

  • ✓Budding entrepreneurs looking to set up manufacturing or service start-ups in India

Who Should NOT Apply?

  • ✗Existing business expansion projects (under primary route)
  • ✗Under 18 years

Frequently Asked Questions (FAQs)

Can I expand my existing unit under PMEGP?
PMEGP is primarily for new projects. However, a separate second loan scheme exists for upgrading well-performing existing PMEGP units.

Related Welfare Schemes

Banglashree Scheme

Who Can Apply:

New or expanding MSME units in West Bengal

Key Benefits:
•Capital investment subsidies ranging from 10% to 40% based on location zone
•Interest subsidy up to 6% on term loans
Updated: July 2026

Karmasathi Prakalpa Scheme

Who Can Apply:

Unemployed youth (Class 8 pass, aged 18-50) looking to start business in WB

Key Benefits:
•Subsidized self-employment credit loan up to Rs. 2 Lakhs
•State government provides 15% subsidy of project cost (max Rs. 25,000)
Updated: July 2026

Artisans Facilitation Supports

Who Can Apply:

Registered handicraft and handloom artisans in West Bengal

Key Benefits:
•Free access to government-sponsored exhibitions and melas for product sale
•Travel and transport allowances for transporting goods to exhibitions
Updated: July 2026

Handloom and Khadi Weavers Scheme

Who Can Apply:

Registered handloom weavers and weaving cooperative groups in WB

Key Benefits:
•Supply of raw yarn at 10% subsidized rates
•Work-shed construction subsidies up to Rs. 25,000
Updated: July 2026

Scheme Details

State / CentralCentral Government
AuthorityKhadi and Village Industries Commission (KVIC)
SubcategoryEntrepreneurship Grant
Launch Date2008
Target Beneficiarymsme, entrepreneurs
Official Helpline1800-345-5505