To facilitate generation of employment opportunities for unemployed youth across the country, the Centre on Monday approved the extension of the Prime Minister’s Employment Generation Programme (PMEGP) for five years from 2021-22 to 2025-26 with an outlay of Rs 13,554.42 crore.
The scheme was first rolled out in 2008 to provide job opportunities to unemployed youth across the country by assisting setting up of micro-enterprises in the non-farm sector. Since its inception, about 7.8 lakh micro enterprises have been assisted with a subsidy of Rs 19,995 crore generating estimated sustainable employment for 64 lakh persons.
The government said that about 80 per cent of the units assisted are in rural areas and about 50 per cent units are owned by SC, ST and women categories.
Here are the following major improvements made in the existing scheme:
– Increasing the maximum project cost from existing Rs 25 lakh to Rs 50 lakh for manufacturing units and from existing Rs 10 lakh to Rs 20 lakh for service units.
– Modify definition of village industry and Rural Area for PMEGP. Areas falling under Panchayti Raj institutions to be accounted under rural area, whereas areas under Municipality to be treated as urban area.
– All Implementing Agencies are 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 treated as Special category applicants and entitled for higher subsidy.
The Centre now expects the scheme to create sustainable estimated employment opportunities for about 40 lakh persons in five financial years and it will cover all the States/UTs.
“Higher rate of Margin Money subsidy – 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% of the project cost in urban area and 25 per cent of the project cost in rural areas,” noted the ministry.
