Government extends PMEGP, outlays Rs 13,554 crore

The PMEGP scheme got an extension for five years with an outlay of over Rs 13,554 crore. In addition, the scheme has undergone a few changes

   
PMEGP extension

The government has approved the continuation of the Prime Minister’s Employment Generation Program (PMEGP) over the 15th Finance Commission Cycle for five years from 2021-22 to 2025-26. Also, the government announced an outlay of Rs 13,554.42 crore for the scheme.

Since its beginning in 2008-09, around 7.8 lakh miniature endeavours have been helped with the sponsorship of Rs 19,995 Crore, producing assessed good work for 64 lakh people. Approximately 80 per cent of the units helped are in provincial regions, and around half units are possessed by SC, ST, and ladies classifications.

Furthermore, the scheme has undergone enhancements. The government has raised the maximum project cost for manufacturing units from Rs 25 lakh to Rs 50 lakh, and for service units from Rs 10 lakh to Rs 20 lakh.

The scheme has also modified the definition of village industry and rural area 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.

Also, all implementing agencies are allowed to receive and process applications in all areas irrespective of the rural or urban category. KVIC acts as the national level nodal agency. While, at the state and district levels state office of KVIC, State KVIBs and DICs are the implementing agencies. Under the new regime, PMEGP applicants under aspirational districts and transgender will be treated as Special category applicants and entitled to the higher subsidy.

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According to the government, the extended scheme will create sustainable estimated employment opportunities for about 40 lakh persons in five financial years. Under the scheme, margin money subsidy is to be given to applicants, of 25 per cent of the project cost in urban area and 35 per cent of the project cost in rural areas, for special category applicants including, SC, ST, OBC, women, Transgender, Physically Disabled, NER, Aspirational and Border district applicants. For General category applicants subsidy is 15 per cent of the project cost in the urban area and 25% of the project cost in rural areas.

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