Government of India has approved the introduction of a new credit linked subsidy programme called Prime Minister’s Employment Generation Programme (PMEGP)  for generation of employment opportunities through establishment of micro enterprises in rural as well as urban areas.


  • 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.


  • Any individual, above 18 years of age.
  • At least 8th standard pass for projects costing above Rs.10 lakh in the manufacturing sector and above Rs.5 lakh in the business/service sector.
  • Self Help Groups (including those belonging to BPL provided that they have not availed benefits under any other Scheme) are also eligible for assistance under PMEGP.
  • 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.


  • The maximum cost of the project/unit admissible under manufacturing sector is Rs. 25 lakh and under business/service sector is Rs.10 lakh
Categories of beneficiaries under PMEGP Beneficiary’s contribution (of project cost) Rate of Subsidy (of project cost)
Area (location of project/unit)
Urban Rural
General Category                 10%
15% 25%
Special (including SC / ST / OBC / Minorities / Women, Ex-servicemen, Physically handicapped, NER, Hill and Border areas, etc.                 05%
25% 35%

 Nodal Agency:

Khadi and Village Industries Commission(KVIC)

How to apply:

  • The Stade/Divisional Directors of KVIC of respective states will give advertisements locally through print &electronic media inviting applications along with project proposals from prospective beneficiaries.
  • The beneficiaries can also submit their application online and take the printout of the application and submit the same to respective offices along with detailed Project Report and other required documents.

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  • joshi shitalkumar


    we have already 5 hectors land in Maharashtra village so i want to start a new dairy farm in my land . i servy a good market of milk this area and good facility of my land in this project i will definitely success for this project .so pls help me to lone for this project my proposal is now redye to submit i want 50 lakh lone for this project.

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  • reddeppa reddy

    hi sir this is reddeppa reddy, my father is farmer and we have 4 hectors of land in Andhrapradesh village, we want buy cows and buffaloes to start a dairy form, in my location there is good demand for milk products,i will defenetly success by this project. help me how to get the loan for this project my proposal irady to submit now i want 20lacs for this project

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