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Published by Sahil Das

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Published by: Sahil Das on Sep 24, 2010
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SCHEME GUIDELINES FOR Prime Minister EmploymentGeneration Programme (PMEGP)
This Prime Minister Employment Generation Programme (PMEGP)scheme is controlled by Ministry of Micro, Small and Medium Enterprises,Govt. of India.This scheme is to be implemented by Khadi & Village IndustriesCommission (KVIC), Govt. of India as single nodal agency at NationalLevel. At State Level, the Scheme is to be implemented by State Khadi &Village Industries Boards (KVIBs) in rural areas and by District IndustriesCentres (DICs) in Urban areas. District Task Force Committee has beenconstituted by Govt. of NCT of Delhi by order noF.NO.PMRY/4(27)PMEGP/2008/C11 1512-1528 dated 09/01/2009
The constitution of the committee are as under:i.Deputy Commissioner i.e. each DistrictChairmanii.Lead Bank Manager of SBIMembeiii.Representative of other Nationalized bank in the District as may be nominated by theChairman of the DTFCiv.Representative of Delhi Khadi & VillageIndustries Board, DelhiMember v.Representative of Khadi & VillageIndustries Commission Govt. of India, New DelhiMember vi.Representative of Delhi State SC/ST,OBC,Minority,PH,Financial &Development Corpn. DelhiMember vii.Representative of the MCD(FactoryLicencing Deptt.), DelhiMember viii.Representative of the Delhi PollutionControl CommitteeMember ix.Representative of the IndustriesDepartment, Govt. of NCT of DelhiMember x.Representative of the Office of MicroSmall & Medium Enterprises Institute,Govt. of India, Okhla, New DelhiMember 
xi.District Coordinator of Khadi & VillageIndustries Commission, Govt. of India, New DelhiMember Convenor The Delhi Govt. has decided to allow the DKVIB to operate both inRural and Urban Areas so as to enhance their functional operations keepingin view the shrinking of Rural Areas in Delhi on account of urbanization andregularization of many unauthorized colonies in Delhi by the Govt.The salient features of this scheme are as under: -
Quantum and Nature of Financial Assistance
: -The maximum cost of project/uit admissible under manufacturingsector is Rs. 25 lacs.The maximum cost of project/unit admissible under business /service sector is Rs. 10 lacs.
Categories of beneficiariesunder PMEGPBeneficiary’scontribution(of projectcost)Rate of Subsidy(of project cost)Term loanArea (location of project /unit)Urban Rural
The balanceamount of thetotal project costwill be provided by Banks as termloan.General Category10%15%25%Special (including SC/ST etc.)05%25%35%
The Government subsidy under the scheme will be routed by KVICthrough the identified banks for eventual distribution to the beneficiaries intheir Bank Accounts. Banks will sanction 90% of the project cost in case of General Category of beneficiary / institution and 95% in case of specialcategory of beneficiary / institution and disburse the full amount suitably for setting up the project
(ii)Eligibility Condition
: -
(i) Any individual, above 18 years of age(ii)There will be no income ceiling for assistance for settingup projects under PMEGP.(iii)For setting up of project costing above Rs.10 lakh in themanufacturing sector and above Rs. 5 lakh in the business /servicesector, the beneficiaries should possess at least VIII standard passeducational qualification.
Assistance under the Scheme is available only for newprojects
sanctioned specifically under the PMEGP.(v)Self Help Groups (including those belonging to BPLprovided that they have not availed benefits under any other Scheme)are also eligible for assistance under PMEGP.(vi) Institutions registered under Societies RegistrationAct,1860;(vii) Production Co-operative Societies, and(viii) Charitable Trusts.(ix)Existing Units (under PMRY, REGP or any other schemeof Government of India or State Government) and theunits that have already availed Government Subsidyunder any other scheme of Government of India orState Government are not eligible.
Other eligibility conditions:
(i)A certified copy of the caste/community certificate orrelevant document issued by the competent authority inthe case of other special categories, is required to beproduced by the beneficiary to the concerned branch of theBanks along with the Margin Money (subsidy) Claim.. (ii) A certified copy of the bye-laws of the institutions isrequired to be appended to the Margin Money (subsidy)Claim, wherever necessary.(iii) Project cost will include Capital Expenditure and one cycleof Working Capital. Projects without Capital Expenditureare not eligible for financing under the Scheme. Projectscosting more than Rs.5 lakh, which do not require workingcapital, need clearance from the Regional Office orController of the Bank’s Branch and the claims are requiredto be submitted with such certified copy of approval fromRegional Office or Controller, as the case may be.(iv) Cost of the land should not be included in the Project cost.Cost of the ready built as well as long lease or rentalWork-shed/Workshop can be included in the project costsubject to restricting such cost of ready built as well aslong lease or rental workshed/workshop to be included inthe project cost calculated for a maximum period of 3years only.(v) PMEGP is applicable to all new viable micro enterprises,including Village Industries projects except activitiesindicated in the negative list of Village Industries.Existing/old units are not eligible.
Note:(1) The Institutions/Production Co-operative Societies/Trusts specifically registered assuch and SC/ ST/ OBC/ Women/ Physically Handicapped / Ex-Servicemen andMinority Institutions with necessary provisions in the bye-laws to that effect areeligible for Margin Money (subsidy) for the special categories. However, forInstitutions /Production Cooperative Societies/Trusts not registered as belongingto special categories, will be eligible for Margin Money (Subsidy) for generalcategory.

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