Prime Minister’s Employment Generation Programme (PMEGP)

In News 

• 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.

About Prime Minister’s Employment Generation Programme (PMEGP)

• The scheme is implemented by Khadi and Village Industries Commission (KVIC) functioning as the nodal agency at the national level. 
• At the state level, the scheme is implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs) and banks.
• It aims to facilitate generation of employment opportunities for unemployed youth across the country by assisting the setting up of micro-enterprises in the non-farm sector. 

Major modifications/improvements have been made in the existing Scheme:

• Increasing the maximum project cost from existing Rs.25 lakh to Rs. 50 lakh for manufacturing units and from existing Rs.10 lakh to Rs.20 lakh for service units.
• Modify definition of village industry and Rural Area for PMEGP. Areas falling under Panchayti Raj institutions to be accounted under rural areas, whereas areas under Municipality to be treated as urban areas.
• All Implementing Agencies are 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.
• States/districts covered: All the States/UTs will be covered under the Scheme.

Objectives 

• To generate employment opportunities in rural as well as urban areas of the country through setting up of new self-employment ventures/projects/micro enterprises.
• To bring together widely dispersed traditional artisans/ rural and urban unemployed youth and give them self-employment opportunities to the extent possible, at their place.
• To provide continuous and sustainable employment to a large segment of traditional and prospective artisans and rural and urban unemployed youth in the country, so as to help arrest migration of rural youth to urban areas.
• To increase the wage earning capacity of artisans and contribute to increase in the growth rate of rural and urban employment.

Source:PIB