Prime Minister Employment Generation Program (PMEGP)

Context: Chairman, Khadi and Village Industries Commission recently released  margin money grant of Rs 100.29 crore to 3223 beneficiaries of Uttar Pradesh, Madhya Pradesh, Chhattisgarh and Uttarakhand under the Prime Minister Employment Generation Program (PMEGP) implemented by KVIC in Varanasi.

About Prime Minister Employment Generation Program (PMEGP):

• The Government of India approved the introduction of a credit linked subsidy programme called Prime Minister’s Employment Generation Programme (PMEGP) in 2008 for generation of employment opportunities through establishment of micro enterprises in rural as well as urban areas.
• It allows entrepreneurs to set up factories or units.
• It is a central sector scheme being administered by the Ministry of Micro, Small and Medium Enterprises (MoMSME).
• Implementing Agency at the National Level: Khadi and Village Industries Commission (KVIC) – a statutory organization under the administrative control of the Ministry of MSME.
• Eligibility Criteria:
  • Any individual, above 18 years of age.
  • Only new projects/units are considered for sanction of loans.
  • Self-help groups that have not availed benefits under any other public scheme, societies, production co-operative societies, and charitable trusts.
• Maximum Cost of Project/Unit Admissible:
  • Manufacturing Sector: 50 lakh
  • Service Sector: 20 lakh
• Government Subsidy:
  • Rural Areas: 25% for general category and 35% for special category, which includes SC/ST/OBC/Minorities, NER, Hill and Border Areas, transgender, physically disabled, north eastern region, aspirational and border district applicants.
  • Urban Areas: 15% for general category and 25% for special category.
• Loans are provided by Public Sector Banks, Regional Rural Banks, Co-operative Banks and Private Scheduled Commercial Banks approved by respective State Task Force Committee.

About Khadi and Village Industries Commission (KVIC):

• The Khadi and Village Industries Commission (KVIC) is a statutory body formed in April 1957 (During 2nd Five Year plan) by the Government of India, under the ‘Khadi and Village Industries Commission Act of 1956’.
• It is an apex organization under the Ministry of Micro, Small and Medium Enterprises, about khadi and village industries within India.
• The commission has three main objectives:
  • The Social Objective – Employing in rural areas
  • The Economic Objective – Providing saleable articles
  • The Wider Objective – Creating self-reliance amongst people and building up a strong rural community spirit.
• KVIC implements the following schemes:
  • Prime Minister’s Employment Generation Programme (PMEGP).
  • Interest Subsidy Eligibility Certificate (ISEC) Scheme.

Source: PIB

Previous Year Questions

Q.1) With reference to Urban Cooperative Banks in India, consider the following statements:

1. They are supervised and regulated by local boards set up by the State Governments.
2. They can issue equity shares and preference shares.
3. They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1996

Which of the statements given above is/are correct? (2021)

1. 1 only
2. 2 and 3 only
3. 1 and 3 only
4. 1, 2 and 3

Q.2) Which of the following statements is/are correct regarding the Maternity Benefit Amendment Act, 2017? (2019)

1. Pregnant women are entitled for three months pre-delivery and three months post-delivery paid leave.
2. Enterprises with creches must allow the mother minimum six creche visits daily.
3. Women with two children get reduced entitlements.

Select the correct answer using the code given below.

1. 1 and 2 only
2. 2 only
3. 3 only
4. 1, 2 and 3