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Govt extends PMEGP scheme till FY'26 with Rs 13,554 crore outlay

Govt extends PMEGP scheme till FY'26 with Rs 13,554 crore outlay

Govt extends PMEGP scheme till FY'26 with Rs 13,554 crore outlay
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By CNBC-TV18 May 30, 2022 5:13:19 PM IST (Updated)

The government has modified the existing scheme by increasing the maximum project cost from the existing Rs 25 lakh to Rs 50 lakh for manufacturing units and from the existing Rs 10 lakh to Rs 20 lakh for service units.

The Narendra Modi government on Monday approved the continuation of the Prime Minister's Employment Generation Programme (PMEGP) for five years from 2021-22 to 2025-26, according to an official statement.

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The outlay approved for the continuation of the scheme during the 15th Finance Commission cycle is Rs 13,554.42 crore.
The government has modified the existing scheme by increasing the maximum project cost from the existing Rs 25 lakh to Rs 50 lakh for manufacturing units and from the existing Rs 10 lakh to Rs 20 lakh for service units.
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Also, it has modified the definition of village industry and rural areas for PMEGP. Areas falling under Panchayati Raj institutions to be accounted for under rural areas, whereas areas under municipality to be treated as urban areas.
Further, 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 to a higher subsidy.
Since its inception in 2008-09, about 7.8 lakh micro enterprises have been assisted with a subsidy of Rs 19,995 crore generating estimated sustainable employment for 64 lakh persons. About 80 percent of the units assisted are in rural areas and about 50 percent of units are owned by SC, ST and women categories.
The government has implemented PMEGP in 2008 by merging two schemes in operation namely Prime Ministers Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP), with Khadi and Village Industries Commission (KVIC) as the nodal agency.
Under the PMEGP scheme, loans up to Rs 25 lakh are given for manufacturing and service industries, in which 15 to 35 percent subsidy is provided by the KVIC depending upon the area.
Micro-enterprises have been set up in the non-farm sector to felicitate the process even further. The General Category beneficiaries under the scheme can avail of a margin money subsidy of 25 percent of the project cost in rural areas and 15 percent in urban areas.
For beneficiaries belonging to special categories such as Scheduled Castes, Scheduled Tribes, OBCs, minorities, women, ex-servicemen and physically handicapped, the margin money subsidy is 35 percent in rural areas and 25 percent in urban area.
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