PMEGP: Over 4 lakh jobs generated by micro enterprises under govt’s job scheme during April-Jan FY23

Skill, labour and talent for MSMEs: Launched in 2008, the scheme provides credit up to Rs 50 lakh to aspiring entrepreneurs for launching their new manufacturing units and up to Rs 20 lakh for new service units.

Written by Sandeep Soni

February 13, 2023 19:40 IST

pmegp, prime minister employment generation programme, micro enterprises, entrepreneur, margin money subsidy, msme loans, msme credit, budget session, bhanu pratap singh verma

In FY22, 8.25 lakh employment was generated with 1.03 lakh units set up during the year.

Skill, labour and talent for MSMEs: 4.43 lakh jobs have been created with 55,499 new micro units set up till January in the current fiscal under the government’s Prime Minister’s Employment Generation Programme (PMEGP). According to the data shared by the minister of state in the MSME ministry Bhanu Pratap Singh Verma in the Rajya Sabha on Monday, Rs 1,782 crore in margin money (subsidy) was disbursed to support new units as of January 31, 2023, under PMEGP which promotes entrepreneurship to generate employment through financial assistance to individuals.

Launched in 2008 and implemented by the Khadi & Village Industries Commission (KVIC), the scheme provides credit up to Rs 50 lakh (increased from earlier up to Rs 25 lakh) to aspiring entrepreneurs for launching their new manufacturing units and up to Rs 20 lakh (from Rs 10 lakh earlier) for new service units. The scheme was also extended over the 15th Finance Commission Cycle from 2021-22 to 2025-26 with an outlay of Rs 13,554.42 crore.

Also read: PMEGP units set up in FY22 crossed 1 lakh mark for first time in 14 years: MoS MSME Bhanu Pratap Singh Verma

In FY22, 8.25 lakh employment was generated with 1.03 lakh units set up during the year while in FY21, 5.95 lakh jobs were created with 74,415 new enterprises launched. Before Covid, 5.33 lakh jobs were generated in FY20 with 66,653 new units set up.

“Under PMEGP, general category beneficiaries can avail of margin money subsidy of 25 per cent of the project cost (new business) in rural areas and 15 per cent in urban areas. For beneficiaries belonging to special categories such as scheduled castes, scheduled tribes, OBCs, minorities, women, ex-servicemen, physically handicapped, beneficiaries belonging to northeastern region, hills and border areas, etc., the subsidy is 35 per cent in rural areas and 25 per cent in urban areas,” Verma said.

Also read: Modi govt’s PMEGP scheme enables over 25,000 new enterprises, over 2 lakh jobs in H1 FY23

However, existing units under other government schemes such as Pradhan Mantri Rozgar Yojana, Rural Employment Generation Programme, etc., and units that have already availed government subsidy under any other scheme are not eligible for PMEGP.