Get Subsidy under Prime Minister’s Employment Generation Programme

Written By Sushma Singh

Khadi and Village Industries (KVI) production has been growing at a compound annual growth rate of 14.80% over the last 10 years. This is as per the data relating to KVI Sector compiled by Khadi and Village Industries Commission (KVIC), a statutory organization established under the KVIC Act 1956 for promoting and developing khadi and village industries in the country.


The Ministry of Micro, Small and Medium Enterprises has been supplementing the efforts of the State Governments in promoting rural industries. In particular, a credit-linked subsidy program named the Prime Minister’s Employment Generation Programme (PMEGP) was launched by this Ministry in 2008-09 and is being implemented through KVIC. PMEGP is particularly aimed at generating self-employment opportunities through the establishment of micro-enterprises including rural industries by helping traditional artisans and unemployed youth.


Under PMEGP, beneficiaries can establish micro-enterprises by availing of margin money subsidy of 25% of the project cost in rural areas; and in case of beneficiaries belonging to special categories such as scheduled castes/scheduled tribes /women the margin money subsidy is 35 %. In urban areas, the quantum of margin money subsidy is 15%; and for beneficiaries belonging to special categories, this is 25%. The maximum cost of the projects assisted under PMEGP is Rs 25 lakh in the manufacturing sector and Rs 10 lakh in the service sector.

To know more about these schemes and avail subsidy visit here.

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