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Ministry of MSME Flags PMEGP Outcomes in 15th Finance Commission Meeting
The Ministry of Micro, Small and Medium Enterprises reports record performance of PMEGP during the 15th Finance Commission period. The scheme is for micro-enterprise creation, rural employment, and inclusive entrepreneurship.
Prime Minister’s Employment Generation Programme:
| Dimension | Key Details |
|---|---|
| Finance Commission | The Finance Commission is a constitutional body under Article 280, established by the President every 5 years to recommend tax revenue distribution between the Centre and States. |
| Budget Utilisation | PMEGP has utilised ₹13,554.42 crore outlay during the 15th Finance Commission period. |
| Enterprises Established | Around 4,03,706 micro-enterprises have been established, surpassing the target of 4.02 lakh. |
| Employment Generation | PMEGP has generated around 36.33 lakh employment opportunities. |
| Rural Dominance | Around 80% of units have been established in rural areas. |
| Women Beneficiaries | Women account for nearly 40% of total units and receive 45% of the total Margin Money subsidy. |
| Social Categories | SC, ST, and OBC beneficiaries account for 54% of total beneficiaries. |
| Nodal Ministry | The Ministry of MSME is the nodal ministry for PMEGP. |
| Scheme Nature | PMEGP is a credit-linked subsidy scheme for setting up new micro-enterprises. |
| Implementing Agency | Khadi and Village Industries Commission implements PMEGP. |
| Aim | The scheme provides for sustainable employment opportunities in rural and urban areas. |
| Eligible Sector | The scheme applies to new micro-enterprises in the non-farm sector. |
| Scheme Mechanism | The scheme provides Margin Money subsidy on project cost, with 5–10% beneficiary contribution and remaining amount as bank credit. |
| Subsidy Rates | General category beneficiaries receive 25% subsidy in rural areas and 15% in urban areas, while SC, ST, OBC, women, PH, and NER beneficiaries receive 35% in rural areas and 25% in urban areas. |
| Individual Eligibility | Any individual aged 18 years and above is eligible under the scheme. |
| Education Requirement | Minimum 8th standard pass is required for projects above ₹10 lakh in manufacturing and above ₹5 lakh in services. |
| Unit Eligibility | Only new units are eligible for assistance, while existing units are not covered. |
| Other Eligible Entities | Self-Help Groups, institutions registered under the Societies Registration Act, and charitable trusts are eligible under the scheme. |