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Objectives
(i) 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. (ii) 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. (iii) 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. iv)To increase the wage-earning capacity of workers
and artisans and contribute to increase in the growth rate of rural and urban
employment.
Eligibility Conditions of Beneficiaries
For PMEGP new enterprises (Units)
i. Any
individual, above 18 years of age ii. There will be no income ceiling for
assistance for setting up projects under PMEGP. iii. For setting up of project
costing up to Rs.50 lakh in the Manufacturing sector and up to Rs. 20 lakh in
the Business /Service sector, the beneficiaries should possess at least VIII
standard pass educational qualification. iv. Assistance under the scheme is
available only for new projects sanctioned specifically under the PMEGP. vi)
Existing Units (under PMRY, REGP or any other scheme of Government of India or
State Government) and the units that have already availed Government Subsidy
under any other scheme of Government of India or State Government are not
eligible.
Other eligibility conditions for PMEGP (New units)
(I)
Projects without Capital Expenditure are not eligible for Financing under the
Scheme. (ii) Cost of the land should not be included in the Project cost. Cost
of the ready built shed as well as long lease or rental Work-shed/Workshop can
be included in the project cost subject to restricting such cost of ready built
as well as long lease or rental workshed/workshop to be included in the project
cost calculated for a maximum period of 3 years only. (iii) PMEGP is applicable
to all new viable microenterprises, including Village Industries projects
except activities prohibited by local Government/Authorities keeping in view
environment or soclo-economic factors and activities indicated in the negative
list of the guidelines.
Trading activities
a).
Business I Trading activities in the form of sales outlets may be permitted in
NER, Left Wing Extremism (LWE)-affected districts and A & N Islands. b).
Retail outlets/Business - selling Khadi products, Village Industry products
procured from Khadi and Village Industry Institutions certified by KVIC and
products manufactured by PMEGP units and SFURTI clusters only may be permitted
under PMEGP across the country. c). Retail outlets backed by Manufacturing
(including processing) / Service facilities may be permitted across the
country. d. The maximum cost of the project for Business / Trading activities
as above [(a) and (b)] may be Rs.20 lakh (at par with the maximum project cost
for Service sector). e. Maximum 10% of the financial allocation in a year in a
state may be used for Business / Trading activities as above [(a), (b) and
(c)].
Financial Institutions
i. All
Public Sector Banks
ii. All
Regional Rural Banks, Co-operative Banks, Private Sector Scheduled Commercial
Banks regulated by RBI
iii.
Small Industries Development Bank of India (SIDBI)