The government has extended the Prime Minister’s Employment Generation Programme (PMEGP) for five years with an outlay of Rs 13,554.42 crore. The extension of PMEGP from 2021-22 to 2025-26 was announced on Monday.
However, certain modifications have been also made to the scheme including increasing the maximum financial assistance offered from existing Rs 25 lakh to Rs 50 lakh to entrepreneurs for setting up new manufacturing units and from existing Rs 10 lakh to Rs 20 lakh for new service units. As per the modified definition of village industry and rural area, the areas falling under Panchayati Raj institutions will be treated under rural area, whereas areas under municipality to be recognized as urban areas. All implementing agencies have been 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 recognized as special category applicants and entitled to a higher subsidy.
The MSME Ministry said in a statement that since its launch in 2008-09, the PMEGP scheme has supported about 7.8 lakh micro-enterprises with a subsidy of Rs 19,995 crore and generated employment opportunities for around 64 lakh people. An estimated 80 percent of the units assisted are in rural areas and about 50 percent of units are owned by the Scheduled Caste (SC), Scheduled Tribe (ST), and women categories.
He further added that the scheme will generate sustainable estimated employment opportunities for about 40 lakh people in five financial years.
