PMEGP: Prayagraj attains 100% target in providing aid

Under this scheme, financial assistance and subsidy ranging from 15% to 35% of the project cost is provided by the government to eligible entrepreneurs who set up new micro-enterprises

In the financial year 2023-24, the Prayagraj district has achieved 100% target ensuring that the benefit under the Prime Minister’s Employment Generation Programme (PMEGP) reaches the eligible.

For representation only (HT FIle Photo)

Under this scheme, financial assistance and subsidy ranging from 15% to 35% of the project cost, depending on the category and location of the beneficiary, is provided by the government to eligible entrepreneurs who set up new micro-enterprises, officials said.

A target of 116 beneficiaries was set in the district for the financial year 2023-24 and of which 100% has been achieved. Loan amounts of over ₹18.80 crore have been distributed by the designated bank to all 116 beneficiaries. Among these beneficiaries, subsidies amounting to over ₹17.20 crore have also been released to 51 people who claimed subsidy, officials informed.

Deputy commissioner, industries, Sharad Tandon, said that in the financial year 2022-23, financial assistance of over ₹14.20 crore was given in the district under this scheme, while in the financial year 2023-24 it increased to over ₹18.80 crore, which was over ₹4.60 crore more than the previous year.

In terms of subsidies given to them, in the year 2022-23, a subsidy of over ₹4.67 crore was given under this scheme, while in the year 2023-24, a subsidy of over ₹ 1.72. crore was given, he said.

More than 11,000 people have got employment locally in the financial year 2023-24 from this scheme alone, he added.

PMEGP is implemented by the Khadi and Village Industries Commission (KVIC) functioning as the nodal agency at the national level. At the state level, the scheme is implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs) and banks. In such cases, KVIC routes government subsidies through designated banks for eventual disbursal to beneficiaries / entrepreneurs directly into their bank accounts.

The maximum cost of the project/unit admissible in the manufacturing sector is ₹25 lakh and in the business/service sector, it is ₹ 10 lakh. Categories of Beneficiary’s Rate of subsidy under PMEGP (of project cost) area (location of project/unit) include general category 15%(Urban), 25%(Rural), Special 25% (Urban), 35% (Rural) (including SC/ ST/ OBC/ Minorities/Women, Ex-servicemen, Physically handicapped, NER, Hill and Border areas, etc).

The balance amount of the total project cost is provided by the banks in the form of term loan and working capital. Any individual above 18 years of age who has passed Class 8 at least can apply for projects costing above ₹10 lakh in the manufacturing sector and above ₹5 lakh in the business/service sector. Only new projects are considered for sanction under PMEGP.

Self Help Groups (including those belonging to BPL, provided that they have not availed benefits under any other scheme), institutions registered under Societies Registration Act,1860; production co-operative societies, and charitable trusts are also eligible.