Micro, small & Medium Enterprises

• Any individual, above 18 years of age.
• There will be no income ceiling 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.

• Projects without Capital Expenditure are not eligible for Financing under the Scheme.
• Cost of the land should not be included in the Project cost. Cost of the ready built shed as well as long lease or rental Work-shed/Workshop can be included in the project cost subject to restricting such cost of ready built as well as long lease or rental workshed/workshop to be included in the project cost calculated for a maximum period of 3 years only.
• PMEGP is applicable to all new viable microenterprises, including Village Industries projects except activities prohibited by local Government/Authorities keeping in view environment or socio-economic factors and activities indicated in the negative list of the guidelines (Para 30 of the guidelines).

• Trading activities

  • Business / Trading activities in the form of sales outlets may be permitted in NER, Left wing Extremism (LWE)-affected districts and A & N Islands.
  • Retail outlets/Business - selling Khadi products, Village Industry products procured from Khadi and Village Industry Institutions certified by KVIC and products manufactured by PMEGP units and SFURTI clusters only may be permitted under PMEGP across the country.
  • Retail outlets backed by Manufacturing (including processing) / Service facilities may be permitted across the country.
  • The maximum cost of the project for Business / Trading activities as above [(a) and (b)] may be Rs.20 lakh (at par with the maximum project cost for Service sector).
  • Maximum 10% of the financial allocation in a year in a state may be used for Business / Trading activities as above [(a), (b) and (c)].
• Transport activities -Transport activities viz purchase of Cab/Van/ Boat/Motorboat/Shikara etc. for transportation of tourists or general public will be allowed. A ceiling of 10% on the extent of projects financed under transport activities is applicable in all areas except NER, Hilly region, LWE-affected districts and A & N Islands, Goa, Puducherry, Daman & Diu, Dadra Nagar Haveli, J&K, Lakshadweep, or other specific areas as may be declared so by the Government.
• All new units setup under PMEGP will be mandatorily registered under Udyam Portal before Physical Verification of the Unit and the adjustment of the Margin Money in the PMEGP beneficiary loan account.

Note:

• Only one person from one family is eligible for obtaining financial assistance for setting up of new enterprise under PMEGP. The ‘family’ includes self, spouse and unmarried children.

• All existing units financed under PMEGP/MUDRA scheme whose margin money claim has been adjusted and the first loan availed should have been repaid in stipulated time are eligible to avail the benefits.
• The unit should have been making profit for the last three years.
• Beneficiary may apply to the same financing bank, which provided first loan, or to any other bank, which is willing to extend credit facility for second loan.
• Registration under Udyam portal is mandatory.