The government of India has approved the establishment, through merging the two schemes in operation until 31.03.2008, that is Prime Minister RojgarYojana (PMRY) and Rural Employment Generation Programme (REGP) to generate employment opportunities through the creation of micro-enterprises, of a new lending-related subsidy program called the Prime Minister’s Employment Generation Program (PMEGP). PMEGP is to be a central sector scheme managed by the Ministry of Micro, Small and Medium Enterprises (MoMSME). Khadi and the Village Industries Commission (KVIC) is implementing the scheme as the national single nodal agency, a status organization under the administrative control of the Minister of MSME. At the State level, the Scheme will be enforced through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs) and District Industries Centres (DICs) and banks.

The Government subsidy under the Scheme will be routed by KVIC via the specified Banks for eventual distribution to the beneficiaries/entrepreneurs in their Bank accounts. The Implementing Agencies, namely KVIC, KVIBs, and DICs will associate reputed Non-Government Organization (NGOs)/reputed autonomous institutions / Self Help Groups (SHGs)/ National Small Industries Corporation (NSIC) / UdyamiMitrasimpaneled under Rajiv Gandhi UdyamiMitraYojana (RGUMY), Panchayati Raj Institutions and other relevant bodies in the implementation of the Scheme, particularly in the area of identification of beneficiaries, of area-specific viable projects, and providing training in entrepreneurship growth.


  1. Setting up new self-employment businesses/project/micro-companies to build jobs in rural as well as urban areas in the world.
  2. To get traditional craftsmen / rural and urban unemployed youth together and to provide them with the ability to work for themselves as much as possible.
  • Ensure that a broad segment of traditional and potential craftsmen, rural and urban unemployed youth in the country have continuous and sustainable work to help prevent rural youth migration into urban areas.
  1. To improve the wage income of craftsmen and to contribute to the rise of rural and urban job growth.


  • Any Individual, above 18 years of age.
  • For projects above Rs.10 in the manufacturing sector and above 5 in the business/service sector, the minimum level pass VIII is 5 lakh.
  • Sanctions to PMEGP only include new projects.
  • Self Help Groups (including those belonging to BPL provided that they have not availed benefits under any other Scheme), Institutions registered under Societies Registration Act, 1860; Production Co-operative Societies, and Charitable Trusts are also eligible.

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.