Prime Minister’s Employment Generation Programme [PMEGP]

PMEGP is credit linked Scheme of Govt. of India by merging erstwhile REGP and PMRY scheme. The Scheme is implemented through KVIC and State/UT Khadi & V.I. Boards in Rural areas and through District Industries Centres in Urban and Rural areas in ratio of 30:30:40 between KVIC / KVIB / DIC respectively.

Objectives

To generate employment opportunities in rural as well as urban areas of the country through setting up of new self-employment ventures/projects/micro enterprises

Beneficiaries

PMEGP is applicable to all new viable micro enterprises, including Village Industries projects except activities indicated in the negative list of Village Industries. Existing/old units are not eligible

Level of Financial Assistance: 

Note:

• The maximum cost of the project/unit admissible for Margin Money subsidy under Manufacturing sector is Rs. 50 lakhs
• The maximum cost of the project/unit admissible for Margin Money subsidy under Business/Service sector is Rs. 20 Iakhs.
• The balance amount (excluding the own contribution)of the total project cost will be provided by Banks.
• If the total project cost exceeds Rs. 50 lakhs or Rs. 20 Iakhs for Manufacturing and Service/Business sector respectively, the balance amount may be provided by Banks without any Government subsidy.
• Urban area includes Municipality & Corporation; Rural area includes village/Panchayat.

2^nd Loan for upgradation of existing PMEGP / REGP / MUDRA units

• The maximum cost of the project/unit admissible for Margin Money subsidy under Manufacturing sector for upgradation is Rs. 1.00 crore. Maximum subsidy would be Rs.15 lakh (Rs.20 lakh for NER and Hill States).
• The maximum cost of the project/unit admissible for Margin Money subsidy under Business/Service sector for upgradation is Rs. 25 lakh. Maximum subsidy would be Rs.3.75 lakh (Rs.5 lakh for NER and Hill States).
• The balance amount (excluding the own contribution)of the total project cost will be provided by Banks.
• If the total project cost exceeds Rs. 1.00 Crore or Rs. 25.00 Iakhs for Manufacturing and Service/Business sector respectively, the balance amount maybe provided by banks without any Government subsidy.

 Eligibility Conditions of Beneficiaries:

• Any individual, above 18 years of age
• There will be no income ceiling and no upper age limit for assistance for setting up projects under PMEGP.
• For setting up of project costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business /service sector, the beneficiaries should possess at least VIII standard pass educational qualification.
• Assistance under the scheme is available only for new projects sanctioned specifically under the PMEGP.
• Existing Units (under PMRY, REGP or any other scheme of Government of India or State Government) and the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are not eligible.

Negative list of Activities:

• Any Industry / Business connected with Meat(slaughtered), i.e., processing, canning and/or serving items made of it as food, production/Manufacturing or sale of intoxicant items like Beedi/Pan/ Cigar/Cigarette etc., any Hotel or Dhaba or sales outlet serving liquor, preparation/producing tobacco as raw materials, tapping of toddy for sale will not be allowed. 

(a)However, serving/selling non-vegetarian food at Hotels/Dhabas will be allowed.

• Activities prohibited by Local Government/Authorities keeping in view environment or socio-economic factors will not be allowed.
• Manufacturing of polythene carry bags of less than 75 microns thickness and manufacture of carry bags or containers made of recycled plastic for storing, carrying, dispensing or packaging of food stuff and any other item which causes environmental problems. Thickness of polythene carry bags shall be governed by the Ministry of Environment, Forest and Climate Change notification for plastic waste management rules and amendments from time to time.
• Any Industry/Business connected with cultivation of crops/plantation like Tea, Coffee, Rubber etc. sericulture (Cocoon rearing), Horticulture, Floriculture, Animal Husbandry will not be allowed.(a)However, value addition under these will be allowed under PMEGP. Off Farm/Farm Linked activities in connection with sericulture, horticulture, floriculture etc. will also be allowed.

Following industries / Business connected with Animal Husbandry will also be allowed:

• Dairy — Milk and other dairy products through primarily Cows but also sheep, goats, camels, buffaloes, horses, and donkeys.
• Poultry - Poultry, kept for their eggs and for their meat, include chickens, turkeys, geese and ducks.
• Aquaculture — It is the farming of aquatic organisms including fish, molluscs,crustaceans and aquatic plants.
• Insects - including Bees, Sericulture, etc.

(As a special case piggery, which is a major source of livelihood in NER may also be allowed in NER states only)

Scheme Related GO's

• Guidelines

• Circular- Policy Decision on receipt of applications in physical form under PMEGP

Apply Online Click Here

Margin Money Grant to Nano Units

Margin Money Grant to Nano Units is a loan linked scheme operated by the Directorate of Industries and Commerce. The scheme aims to provide financial assistance to Nano units in the State, engaged in manufacturing, job work and service activity having any type of value addition. Units with project cost up to 10 Lakh will be covered in the scheme. Margin Money Grant shall be 30% of the Total Project cost . Women, Youth (Age between 18 and 40), Deferentially Abled Persons, Ex-Servicemen, and  persons belonging to SC/ST category will be eligible for 10% additional Grant.30% of the beneficiaries under the scheme shall be women entrepreneurs.

Features of the Scheme

• Units with project cost upto 10 Lakh will be covered in the scheme.
• Margin Money Grant of 30% to 40% of the Total Project cost according to the category of the applicant.
• Women, Youth (Age between 18 and 40), Differentially Abled Persons, Ex-Servicemen, and persons belonging to SC/ST category will be eligible for 10% additional Grant.
• 30% of the beneficiaries under the scheme shall be women entrepreneurs.
• Maximum assistance under this scheme shall be Rs 4 Lakh per unit.

Financial Assistance  

How to Apply 

Application can be submitted online or in person to the Assistant District Industries Officer, Taluk Industries Office concerned with all supporting documents, including the sanction letter with the recommendation from the financial institution and copy of pass book showing the details of beneficiary contribution.

Sanctioning Authority

General Manager, District Industries Centre is the sanctioning authority.

Other Points

The Project cost under this scheme shall include the following.

• Cost of land and its development including documentation charges. The cost of land and its development shall not exceed 10% of the project cost.
• Cost of building. This shall not exceed 25% of the project cost.
• Plant & Machinery, equipments including all accessories, tools, jigs, fixtures, essential office equipments and furniture, lab equipments, pollution control devices, generators.
• Electrification.
• Preliminary and pre-operative expenses which shall include Registration charges of the firm, engineering drawings, cost of the project report, Technical know- how, cost of technical supervision during the implementation period. However, these preliminary and pre-operative expenses shall not exceed 10 % of the project cost.
• Allowance for cost escalation (contingencies). The contingency allowance shall not exceed 10% of the cost of the item for which it is meant.
• Working Capital. The working capital shall not exceed 40% of the project cost or one working cycle, whichever is lower.

Check List

• Project Report
• Title Deed of Land/ Land Tax Receipt if applicable
• Ownership Certificate of building if applicable
• Registered Lease Deed or Rent Deed in such cases
• Proforma Invoice/Quotation of plant, machinery and electrification
• Valuation of approved Engineer, Chattered Engineer for Civil Construction
• Sanction letter from financial institution/Bank if any
• Any other document as demanded by the recommending/sanctioning authority

Eligibility

All new Nano proprietary enterprises in manufacturing / food processing and job works and units engaged in service sector having any type of value addition, whose project cost including fixed capital and working capital up to 10 lakhs are eligible for the assistance under the scheme. Preference is given to special categories such as women, handicapped persons, ex servicemen and persons belonging to SC/ST.Youth entrepreneurs up to the age of 40 are also given priority under the scheme.30% of the beneficiaries under the scheme shall be women entrepreneurs.

Financial assistance

Maximum limit of margin money grant under the scheme shall be Rs 4 lakhs per unit as follows.

a. Loan given by financial institution/KFC/Co-operative bank: Minimum 40 % of the project cost

b. Promoter’s contribution: Minimum 30 % of the project cost

c. Margin money grand by Industries dept: 30 % of the project cost limited to a maximum of 3 lakhs

d. In case of special categories MMG will be 40 % of the project cost limited to a maximum of 4 lakhs and promoter’s contribution shall be 20%.

Procedure

a.Application shall be submitted to the Assistant District industries officer,Taluk Industries Office concerned with all supporting documents including the sanction letter with recommendation from the bank.

b.Copy of pass book showing the details of beneficiary contribution remitted to be submitted along with application.

Sanctioning Authority

General Manager, District Industries Centre is the sanctioning authority.

For Detailed Guidelines of the scheme Click here

For Application Form Click here

For Checklist Click here

For amendment related to scheme Click here

Apply Here for Margin Money Grant Click Here

PM Formalisation of micro food processing Enterprises Scheme (PM FME Scheme)

PM FME scheme is a centrally sponsored scheme that is designed to address the challenges faced by the micro enterprises and to tap the potential of groups and cooperatives in supporting the upgradation and formalization of these enterprises. The expenditure under the scheme would to be shared in 60:40 ratios between Central and State Governments.

Aims

The scheme aims to:

• Enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector; and
• Support Farmer Producer Organizations (FPOs), Self Help Groups (SHGs) and Producers Cooperatives along their entire value chain.

Financial Assistance

The objectives of scheme are to build capability of microenterprises to enable:

• Increased access to credit by existing micro food processing entrepreneurs, FPOs, Self Help Groups and Co-operatives;
• Integration with organized supply chain by strengthening branding & marketing;
• Support for transition of existing 2,00,000 enterprises into formal framework;
• Increased access to common services like common processing facility, laboratories, storage, packaging, marketing and incubation services;
• Strengthening of institutions, research and training in the food processing sector; and
• Increased access for the enterprises, to professional and technical support.

Coverage:  

 Under the scheme, 2, 00,000 micro food processing units will be directly assisted with credit linked subsidy. Adequate supportive common infrastructure and   institutional architecture will be supported to accelerate growth of the sector.

One District One Product:

The Scheme adopts One District One Product (ODOP) approach to reap the benefit of scale in terms of procurement of inputs, availing common services and marketing of products. ODOP for the scheme will provide the framework for value chain development and alignment of support infrastructure.

There may be more than one cluster of ODOP products in a district. A state may have a cluster of ODOP product consisting of more than one district. With respect to support to existing individual micro units for capital investment, preference would be given to those producing ODOP products. However, existing units producing other products would also be supported. In case of capital investment by groups, predominately those involved in ODOP products would be supported. New units, whether for individuals or groups would only be supported for ODOP products.

Support for common infrastructure and marketing & branding would only be for ODOP products. In case of support for marketing & branding at State or regional level, same products of districts not having that product as ODOP could also be included.

Programme Components:

The programme has four broad components addressing the needs of the sector:

• Support to individual and groups of micro enterprises;
• Branding and Marketing support;
• Support for strengthening of institutions;
• Setting up robust project management framework.

 Support to Individual Micro Enterprises:

Individual micro food processing units would be provided credit-linked capital subsidy @35% of the eligible project cost with a maximum ceiling of Rs.10.0 lakh per unit. Beneficiary contribution should be minimum of 10% of the project cost with balance being loan from Bank.

Eligibility criteria for individual micro enterprises under the scheme:

• Existing micro food processing units in operations
• Existing units should be those identified in the SLUP for ODOP products or by the Resource Person on physical verification. In case of units using electrical power, electricity bill would support it being in operations. For others units, existing operations, inventory, machines and sales would form the basis
• The enterprise should be unincorporated and should employ less than 10 workers
• The enterprise should preferably be involved in the product identified in the ODOP of the district. Other micro enterprises could also be considered;
• The applicant should have ownership right of the enterprise;
• Ownership status of enterprise could be proprietary / partnership firm;
• The applicant should be above 18 years of age and should possess at least VIII standard pass educational qualification;
• Only one person from one family would be eligible for obtaining financial assistance. The “family” for this purpose would include self, spouse and children
• Willingness to formalize and contribute10% of project cost and obtain Bank loan
• Cost of the land should not be included in the Project cost. Cost of the ready built as well as long lease or rental work shed could be included in the project cost. Lease rental of workshed to be included in the project cost should be for a maximum period of 3 years only.

Applications would be invited at the district level on an ongoing basis for Units, from those interested in availing the benefits under the Scheme. District Level Committee should study the report submitted by Resource Persons for each Unit and interview the interested persons. For the cases recommended by the District Level Committee, the DPR along with necessary documents should be submitted to the Banks for sanction of loan.

 Group category: FPOs / SHGs / Co-operatives

 Farmer Producer Organizations (FPOs)/Producer Cooperatives:

FPOs and Producer Cooperatives would be provided the following support:

• Grant @35% with credit linkage;
• Training support;
• It should preferably be engaged in processing of ODOP produce
• It should have minimum turnover of Rs.1 crore
• The cost of the project proposed should not be larger than the present turnover

 Self Help Groups (SHGs):

 Seed Capital

• Seed capital @ Rs40,000/- per member of SHG for working capital and purchase of small tools would be provided under the scheme.
• Priority would be given for SHGs involved in ODOP produce in giving seed capital
• Seed capital would be provided at the federation level of SHGs.
• This would be given as grant to the SHG federation by SNA/ SRLM.
• SHG federation would provide this amount as a loan to the members of SHGs to be repaid to the SHG.
  
  

Support to individual SHG member

as a single unit of food processing industry with credit linked grant @35% with maximum amount being Rs 10 lakh.

The SHGs should have sufficient own funds for meeting 10% of the project cost and 20% margin money for working capital or sanction of the same as grant from the State Government.

The SHG members should have for a minimum period of 3 years’ experience in processing of the ODOP product.

 Support for capital investment

Support for capital investment at federation of SHG level, with credit linked grant @35%.

 Training & Handholding Support to SHGs

Training & Handholding Support to SHGs: Assistance for training with the help of local resource persons in SRLM.

Support for common infrastructure

Support for common infrastructure would be provided to FPOs, SHGs, cooperatives, any Government agency or private enterprises. Credit linked grant would be available @ 35%.Support for ODOP product only.

Common infrastructure created under the scheme should also be available for other units and public to utilize on hiring basis for substantial part of the capacity.

The following common infrastructure would be funded under the Scheme:

• Premises for assaying of agriculture produce, sorting, grading, warehouse and cold storage at the farm-gate.
• Common processing facility for processing of ODOP produce.
• Incubation Centre.

Marketing and branding support

Marketing and branding support would be provided to groups of FPOs/SHGs/ Cooperatives or an SPV of micro food processing enterprises under the Scheme.

Eligible items for support

• Training relating to marketing to be fully funded under the scheme.
• Developing a common brand and packaging including standardization to participate in common packaging.
• Marketing tie up with national and regional retail chains and state level institutions.
• Quality control to ensure product quality meets required standards.
• Branding and marketing - should be at the district, regional or state level.
• Support for branding and marketing would be limited to 50% of the total expenditure.
• The proposal should relate to ODOP
• Minimum turnover of product to be eligible for assistance should be Rs 5 crore.

Online application for PM FME scheme: click here

Scheme for Interest Subvention to Nano Household Enterprises

This scheme has been introduced to promote the Nano and household enterprises in the state. The scheme intends to provide financial assistance in the form of interest subvention to nano and household enterprises on a reimbursement basis for the term loan availed by the unit. The units engaged in the manufacturing,services as well as job work can apply under the scheme.

Nano and Household unit

A unit which satisfies the following conditions;

• The fixed capital investment is 10 lakh or less,
• Engaged in the manufacturing,services or job work,
• In white and green category as per pollution control norms,
• Connected load is 5 HP or less.

Note

• Manufacturing units which are eligible to claim assistance under the Entrepreneur Support Scheme or any other schemes of Govt. of India or Govt. of Kerala cannot apply under the scheme.
• Unit which has availed special low rate of interest from Government Agencies are not eligible for further interest subvention under this scheme.

Benefit of the scheme

• The unit will be eligible for interest subvention to an extent of 6% per annum for the term loan availed by the unit on reimbursement basis for three years.
• For women and SC/ST enterprises, the interest subvention will be 8% for three years.
• The assistance shall be limited to the fixed percentage of the composite investment upon
  (a) plant & machinery,
  (b) other fixed assets including essential office equipments and
  (c) electrification. Cost of Land and Building shall not be included in the Fixed Capital Investment under this scheme.
• In the event of default of re-payment of loan with interest at the end of 1st year, the subvention will not be passed. The same is applicable for 2nd and 3rd years.

Negative List

Photo Studios and Colour Processing Centres, Breweries and Distilleries of all types, Saw mills, Soap Grade Sodium Silicate, Asbestos processing except units in which the quantum of asbestos used in the production process is less than 25% and environmental and occupational health hazards have been taken care of to satisfaction of authorities concerned, Metal Crushers including Granite Manufacturing units, All types of Steel Re rolling Mills, Units manufacturing iron ingots, Calcium Carbide, Cement manufacturing except units manufacturing cement from fly ash, Potassium Chlorate, Cashew industrial units, Power intensive units based on electro thermal/ electro chemical processor units where total power requirement exceeds 5000 KVA of contract load or where the cost of power is more than 33% of cost of production of the items manufacture except where the units generate their power requirement in excess of 5000 KVA of contract load by own captive power. 

How to Apply

      Application can be submitted online or in person to the Assistant District Industries Officer, Taluk Industries Office concerned with all supporting documents.

      To Apply Online Click Here

Kerala stressed MSMEs Revival & Rehabilitation Scheme

The Kerala stressed MSMEs Revival & Rehabilitation scheme intends to provide financial and other handholding support to the MSMEs which show signs of stress and to convert their non-productive assets into productive assets. The maximum assistance admissible for each unit, all reliefs and assistances put together, under the scheme will be limited to Rs. 5 Lakh.

Assistance/Relief Available from Government

Restructuring of existing loan account

If the bank is willing to restructure the existing loan account and extent additional term loan/working capital loan based on the Revival Project recommendations of the Expert Committee, the unit is eligible for the following one time Assistances. These assistances are also eligible for self financed units availing term loan/working capital loan as part of the Revival Package recommended by the Expert Committee.

a)   Margin Money Grant

50% of the margin insisted by the bank/Financial Institution towards additional working capital loan and term loan, will be payable as Grant Assistance limited to Rs 2 lakhs.

b)   Interest Subvention Assistance

 To provide a financial assistance in the form of interest subvention on a reimbursement basis for the additional term loan and additional working capital loan availed by the units based on the Revival Project Report recommended by the expert committee.  The interest subvention is 6% per annum subject to a maximum amount of Rs 1 lakh. The interest subvention is limited for one (first) year on the loan sanctioned by the financial institution/bank. 

Restart Expenses

The following one time assistances shall be payable as Re-start expenses based on the Revival Project recommendations of the Expert Committee.

• In cases where no term loan is availed for the purchase of brand new additional/balancing plant & machinery, 50% of the cost of Additional/Balancing Plant and Machinery limited to Rs 1.50 lakhs will be payable as one time assistance.
• 50% of the cost incurred for the inevitable repair and maintenance of existing Plant and Machinery and Building limited to Rs 1.00 lakh will be reimbursed.

Clearance of Statutory Dues

If there is statutory dues existing for the unit related to the agencies like KSEB, GST/Commercial Tax, Excise, Pollution Control Board etc. 50% of the dues limited to Rs 40,000 shall be payable as one time assistance based on the Revival Project recommendations of the Expert Committee.

To Apply Online Click Here

Cost of Revival Project Report

Cost of preparation of RPR will be reimbursed @100%, Rs.10,000/- per unit.