PRIME MINISTERS

EMPLOYMENT GENERATION
PROGRAMME
(P M E G P)
Govt.ofIndia

Khadi and Village

Industries Commission
(KVIC)
National Nodal Agency
For PMEGP

Welcomes You
2

Salient Features
A new Central sector Scheme of Govt. of India by
merging REGP and PMRY scheme.
scheme
State Khadi & V.I.Board and District Industries
centre of State Government have also been
associated in implementation of the programme.
Special Package of subsidy to promote rural
industrialization.
Empowering
entrepreneurs
through
Skill
Development and entrepreneurial development
programme (EDP)
3

Objectives
To generate employment opportunities in rural
and urban areas of the country through self
employment ventures/ projects / micro
enterprises.
To bring together widely dispersed traditional
artisans / rural and urban unemployed youth
and
give
them
self

employment
opportunities to the extent possible, at their
place.
l

Objective

cont.

To provide continuous and sustainable

employment to a large segment of traditional
and prospective artisans,
rural and urban
unemployed youth in the country for their
better livelihood.
To increase the wage earning capacity of
artisans and contribute to increase in the
growth rate of rural and urban employment.
T facilitate
To
f ilit t participation
ti i ti off financial
fi
i l institutions
i tit ti
for higher credit flow to micro enterprises.

Eligibility
Individuals above 18 years of age
VIII Std. Passed (project costing above
Rs.10.00 lakhs in manufacturing and above
Rs 5 00 lakhs for Service Sector)
Rs.5.00
Self Help Groups
Institutions Registered under Societies
Registration Act- 1860.
Production based Co-operative Societies
Charitable
C
a tab e Trusts
usts
6

ELIGIBILITY

cont..

No income ceiling for setting up of projects.

Assistance
A
i t
under
d the
th Scheme
S h
i available
is
il bl only
l
to new units to be established.

Existing
E
i ti
units
it or units
it already
l d availed
il d any
Govt. Subsidy either under State / Central
Govt Schemes are not eligible.
Govt.
eligible
7

Certificates to be attached alongwith Application

Age proof certificate

Caste certificate if beneficiaries are from special
categories (SC/ST/Minority/Ex-Servicemen etc..)
Educational qualification certificate if beneficiaries
opting project cost above Rs.10.00 lakhs in case
manufacturing
g and above Rs.5.00 lakhs for
service sector.
Rural Area Certificate.
Photo Identity Card.
Residential Certificate.
Copy of Project Report.
8

Implementing Agencies
For easy approach and accessibility, three agencies will work
in each district.

Khadi & Village Industries Commission

Khadi & Village Industries Boards
District Industrial Centres of State Govts.
Facilitators

Rajiv Gandhi Udyami Mitra Yojana

Ministry of Women & Child Development
Panchayati Raj Institutions
KVI Federations
Nehru Yuva Kendra Sangathan
A
Army
Wives
Wi
Welfare
W lf
Association
A
i i
9

Financing Agencies
All Public Sector Banks
All Regional Rural Banks
SIDBI
Co-operative Banks approved by a committee
headed by the Secretary,
Secretary Industries of the
State.
Private
P
i t Sector
S t Commercial
C
i l Banks
B k approved
d by
b
a committee headed by the Secretary,
Industries of the State.
10

Industry
Any industry including Coir Based projects
excluding those mentioned in the negative list.
Per capita investment should not exceed Rs.1.00
Rs 1 00
lakhs in plain areas and Rs.1.50 lakhs in Hilly
areas.
Maximum project cost for Rs.25.00
Rs 25 00 lakhs in case
of manufacturing and Rs.10.00 lakhs for Service
Sector.
11

AREA OF OPERATION

Rural area Scheme

S h
t be
to
b
implemented by
KVIC, KVIB & DIC.

Urban area Only by DIC .

12

Quantum and Nature of Financial Assistance

Categories of beneficiaries
under PMEGP

Beneficiarys
contribution
( f project
(of
j t
cost)

Area

Rate of Subsidy
(of Project Cost)

Urban

Rural

(location of project/unit)

General Category

10%

15%

25%

Special Category

05%

25%

35%

(including SC/ST/OBC/
Minorities/ Women, ExServicemen, Physically
handicapped, NER, Hill and
Border areas etc)
13

BANK FINANCE
The Bank will sanction 90% of the project cost in
case of General category beneficiary and 95% in
case special category of beneficiary / institutions.
The Bank will disburse full amount suitably for
setting
g up
p of the p
project.
j
Credit Guarantee Scheme of Ministryy of MSME is
also available for PMEGP units to facilitate
entrepreneurs for collateral security free loans.
14

Selection of Beneficiaries
Project proposals will be invited from potential
beneficiaries at District level through
g Print and
Electronic Media by KVIC/KVIBs and DIC at
periodic intervals.
Facilitating agencies may also collect applications
and submit the same to the KVIC,KVIB and DICs
for placing the same before District Task Force
Committee.
To ensure the transparency in identification of
the beneficiaries, Panchayati Raj Institutions to
be involved in the process of selection.
15

Colour Coding
Colour Coding will be given for application, M. M.
Claim format, adjustment letter and physically
verification format for identifying the beneficiary
and source of application i.e. KVIC, KVIB, DIC.

KVIC
(White)

KVIB
(Light Yellow)

DIC
(Sky Blue)

16

How to apply?
Prescribed application may be downloaded from
KVIC website www.kvic.org.in/www.pmegp.in or
f
from
any field
fi ld offices
ffi
off KVIC or KVIB or DICs.
DIC
The application alongwith required certificate may
be submitted to any one of the Offices of KVIC or
KVIB or DICs.
The application will be placed before District Task
Force Committee byy respective
p
Offices.
Personal Interview will be conducted by District
Task Force Committee.
Committee
17

Cont
A District Task Force will be constituted to recommend
the applications for consideration of Banks.
Dist Magistrate / Deputy Commissioner/ Collector
: Chairman
Lead Bank Manager
: Member
Representative of KVIC / KVIB/DIC
: Member
Rep. of NYKS/SC/ST/Women Corporation : Special Invitee
Rep. of MSME-DI, ITI/Polytechnic
: Special Invitee
Rep. from Panchayat by rotation
: 3 Members
(To be nominated by Collector/
Di t Magistrate/
Dist.
M i t t / Deputy
D
t Commissioner
C
i i
General Manager, DIC/ Rep of KVIC /
KVIB
:Member Convenor

18

Cont.
Selection will be made on the basis of
b k
background
d and
d personall interview.
i t i
The District task force will forward its
recommendation to KVIC /KVIB /DICs within a
period of one month of the meeting.The
meeting The same
will be forwarded by the implementing
agencies to Financing Branch of the Bank
within 15 days of receipt of the same.

19

Operational Procedure
The Bank will take their own credit decision on
selection of projects.
projects In case of any rejection,
rejection the
same will be intimated to the District Task Force
with reasons.
After sanctioning of project, the beneficiary has to
d
deposit
it 5% or 10% off the
th project
j t costt as the
th case
may be, in the bank.
Project cost will include capital expenditure and
one cycle of working capital.
20

Entrepreneurs Development Programme (EDP)

Duration 2 weeks
Training Institutions
- Departmental and Non- Departmental
T i i Centres
Training
C t
off KVIC /KVIB
- Accredited training Centres
- EDP Institute of National repute like
NIESBUD,, NIMSME,, IIE,, EDI etc.
After release of 1st installment of loan, the bank
will sponsor
p
the entrepreneurs
p
for EDP training
g
which may be completed within one year.
21

Margin Money Release and Adjustment

The beneficiary will submit the Margin Money
claim through Financing Bank after release of first
installment of loan.
The Financing Branch will forward the same to the
respective Nodal branch.
The Nodal Branch after being satisfied that the
unit fulfills the criteria under PMEGP will release
the Margin
g Moneyy to the Financing
g Branch.
The original claim format to be forwarded to
respective office i.e. KVIC/KVIB/DIC by the Nodal
Branch of the Bank keeping a copy with them.
22

Margin Money Release and Adjustment

cont..

The lock in period of Margin Money is of 3

years in the TDR in the name of beneficiary
beneficiary.
No interest will be paid on the TDR and no
i t
interest
t will
ill be
b charged
h
d on loan
l
t th
to
the
corresponding amount of TDR.
Margin Money will be adjusted only after
physical verification.
The concerned agency will issue the Margin
Moneyy adjustment
j
letter to the Bank.
23

Physical Verification
100% Physical Verification of the units established
will be made within a period of 24 months from the
release of CE loan from Bank.

It will be done by out sourcing agencies having

expertise and experience in the field.

24

NEGATIVE LIST OF ACTIVITES

a) Any Industry/business connected with Meat
(slaughter) i.e. processing, canning and/or
serving 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.
b) Any industry / business connected with
cultivating of crops / plantation like Tea, Coffee,
Rubber etc.
etc
sericulture (cotton rearing),
rearing)
Horticulture, Floriculture, Animal Husbandry like
Pisciculture,
Piggery,
Poultry,
Harvester
machines etc.
25

NEGATIVE LIST OF ACTIVITES

Cont

d) Manufacture of Polythene carry bags of less than 20

microns thickness and manufacture of carry bags or
containers made up of recycled plastic for storing,
storing
carrying, dispensing or packaging of food stuff and
any other item which causes environmental
problems.
bl
e) Industries such as processing of Pashmina Wool and
such other products like hand spinning and hand
weaving, taking advantage of Khadi Programme
under the purview of Certification Rules and availing
sales rebate.
f) Rural Transport (except Auto rickshaw in Andaman &
Nicobar Islands,
Islands House boat,
boat Shikara & Tourist Boats
in Jammu & Kashmir and Cycle Rickshaw).
26

ROLE OF NODEL AGENCY AT STATE LEVEL

Dissemination of Scheme.
P idi clarification
Providing
l ifi ti and
d updations.
d ti
Enforcing (spirit) of the Scheme guidelines.
Co-ordination with Implementing Agency (IA)
and Banks.
C ll i off data
Collection
d
and
d reporting.
i
Monitoring and pursuance.
Backward & Forward linkages.
EDP.
27

STATE LEVEL MONITORING COMMITTEE

a) Secretary Industries

Chairman

b)) Director Industries

Member

c) Chief Executive Officer, KVIB

Member

d) Rep.
Rep of public sector Banks

Member

e) Rep. of SC/ST Corporation

Member

f)

Rep of Dept
Rep.
Dept. Panchayati Raj

Member

g) Rep. of State Women Dev. Corp.

Member

h) Rep.
R
off SIDBI

M b
Member

i)

Rep. of NABARD

Member

j)

State Director, KVIC

Member Convenor
28

ROLE OF IMPLEMENTING AGENCIES

Conducting Awareness Camp for public.

Generating and collection of project proposals.
Hand holding support in preparation of project
profiles wherever necessary.
p
y
Registering of project proposals.
Scrutiny and forwarding of project proposals
to DTFC-15 days.
Calling
g for interview and placing
p
g of rejections
j
to DTFC.
Follow-up
p with Banks.
29

ROLE OF FINANCING BANKS

Credit decision.
No collateral up to Rs. 10.00 lakhs.
Technical feasibility & economical viability
i) Industry / Service.
ii) Per
P capita
it investment.
i
t
t
iii) Rural Area.
i ) Own
iv)
O
Contribution.
C t ib ti
v) Negative list.
Sanction of loan
loan.
After release of 1st installment, Bank will inform
KVIC for EDP training
training.
Contd..2
30

ROLE OF FINANCING BANKS

contd..2

Own Contribution.
Loan disbursement.
Claming of subsidy.
TDR 3 years no interest.
i t
t
In case of loan going bad.
bad
Credit Guarantee Scheme.
31

ROLE OF DTFC

Analysis of application/proposal and

personal interviews.
interviews
A) Manufacturing :
- Technical qualification.
- Skill.
- Past experience.
- Geographical location.
location
- Aptitude.
Contd.
32

ROLE OF DTFC

B) Service Industries :
- Locational advantage.
advantage
- Demand of that service..
- Aptitude.
Accept
p or reject
j
within 30 days.
y
Social categories and Range.
Not to be done :- Physical verification/pre-inspection.
- Scaling down the project proposal
33

ROLE OF NODAL BANK

Opening of account by KVIC in all PMEGP

implementing Banks.
a) KVIC PMEGP.
JKVIB PMEGP.
DIC PMEGP.
b) Advance stamped receipt-JKVIB & DIC.
Settling of subsidy to Financing Banks.
No Project with Bank No account.
No operational Bank Accounts for KVIB & DICletter of authority will be issued by KVIC.
R f d off iinterest.
Refund
t
t
34

POINT FOR DISCUSSION AND DECISION

Finalisation of the documents to be taken

from the beneficiaries proposed as under.
- Age proof.
q
- Educational qualification.
- Caste Certificate for weaker section.
- Identification proof e.g. Voter Card,
Ration Card etc.
- Residential proof.
- Project Report with quotation.
- Blue print in case of Shed.
35

BANK-WISE ALLOCATION OF TARGET FOR 2012-13

(Rs. in lakhs)
Sr. No.

Name of the Bank

Target of PMEGP
for 2012-13

Phy.

22

Jharkhand Gmn. Bank

280
10
80
600
8
80
180
10
20
10
50
10
10
230
50
90
80
80
10
600
310
146

23

State Bank of Bikaner &

Jaipur

10

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

All h b d Bank
Allahabad
B k
Andhra Bank
Bank of Baroda
Bank of India
Bank of Maharashtra
Canara Bank
Central Bank of India
Corporation Bank
Dena Bank
Indian Bank
Indian Overseas Bank
O.B.C.
Punjab & Singh Bank
Punjab National Bank
Syndicate Bank
Union Bank
United Bank of India
UCO Bank
Vijaya Bank
State Bank of India

21

Vananchal Grmn. Bank

TOTAL :

2954

M.M.
(lakhs)

643.86
643
86
23.00
183.96
1379.70
18.40
183.96
413.91
23.00
45.99
23.00
114.98
23.00
23.00
528.89
114.98
206.96
183 96
183.96
183.96
23.00
1379.70
712.85
335.73
23.00
6792.73

Target of KVIC
for 2012-13

Target of JKVIB
for 2012-13

Phy.

M.M. (lakhs)

Phy.

84
3
24
180
2
24
54
3
6
3
15
3
3
69
15
27
24
24
3
180
93
44

193.20
193
20
6.90
55.20
414.00
4.60
55.20
124.20
6.90
13.80
6.90
34.50
6.90
6.90
158.70
34.50
62.10
55 20
55.20
55.20
6.90
414.00
213.90
101.20

84
3
24
180
2
24
54
3
6
3
15
3
3
69
15
27
24
24
3
180
93
44

6.90

886

2037.82 886

M.M.
(lakhs)

193.20
193
20
6.90
55.20
414.00
4.60
55.20
124.20
6.90
13.80
6.90
34.50
6.90
6.90
158.70
34.50
62.10
55 20
55.20
55.20
6.90
414.00
213.90
101.20
6.90

Target of DIC
for 2012-13

Phy.

112
4
32
240
4
32
72
4
8
4
20
4
4
92
20
36
32
32
4
240
124
58
4

2037.82 1182

RURAL

M.M. (lakhs)

Phy. M.M. (lakhs)

257.46
257
46 56
9.19 2
73.56 16
551.70 120
9.19 2
73.56 16
165.51 36
9.19 2
18.39 4
9.19 2
45.97 10
9.19 2
9.19 2
211.48 46
45.97 10
82.75 18
73 56 16
73.56
73.56 16
9.19 2
551.70 120
285.04 62
133.33 29
9.19

URBAN

2717.10 591

128.73
128
73
4.60
36.78
275.85
4.60
36.78
82.75
4.60
9.19
4.60
22.99
4.60
4.60
105.74
22.99
41.38
36 78
36.78
36.78
4.60
275.85
142.52
66.66
4.60

Phy.

M.M. (lakhs)

56
2
16
120
2
16
36
2
4
2
10
2
2
46
10
18
16
16
2
120
62
29

128.73
128
73
4.60
36.78
275.85
4.60
36.78
82.75
4.60
9.19
4.60
22.99
4.60
4.60
105.74
22.99
41.38
36 78
36.78
36.78
4.60
275.85
142.52
66.66

1358.55 591

4.60
1358.55

DISTRICT-WISE ALLOCATION OF TARGET FOR 2012-13

(Rs in lakhs)
(Rs.
Sr. No. Name of Districrts

PMEGP Target
2012-13
Phy.

Bokaro

Chatra

Deoghar

Dhanbad

Dumka

E. Singhbhum

Garhwa

Giridih

Godda

10

Gumla

11

Hazarirbagh

12

Jamtara

13

Khunti

14

Koderma

15

Latehar

16

Lohardaga

17

Pakur

18

Palamu

19

Ramgarh

20

Ranchi

21

Sahebganj

22

Saraikela

23

Simdega

24

W. Singhbhum

TOTAL :

180
75
140
200
130
220
100
210
120
100
170
60
50
70
70
40
70
170
60
309
100
100
60
150

M.M. (lakhs)

413.91
172.46
321.93
459.90
298.94
505.89
229 95
229.95
482.90
275.94
229.95
390.92
137.97
114.98
160.97
160.97
91.98
160.97
390 92
390.92
137.97
710.55
229.95
229.95
137.97
344.93

2954 6792.73

Target of KVIC
2012-13

Target of JKVIB
2012-13

Phy.

Phy.

54
23
42
60
39
66
30
63
36
30
51
18
15
21
21
12
21
51
18
92
30
30
18
45
886

M.M. (lakhs)

124.20
52.90
96.60
138.00
89.70
151.80
69 00
69.00
144.90
82.80
69.00
117.30
41.40
34.50
48.30
48.30
27.60
48.30
117 30
117.30
41.40
211.60
69.00
69.00
41.40
103.50
2037.82

54
22
42
60
39
66
30
63
36
30
51
18
15
21
21
12
21
51
18
93
30
30
18
45
886

M.M. (lakhs)

124.20
50.60
96.60
138.00
89.70
151.80
69 00
69.00
144.90
82.80
69.00
117.30
41.40
34.50
48.30
48.30
27.60
48.30
117 30
117.30
41.40
213.90
69.00
69.00
41.40
103.50

Target of DIC
2012-13
Phy.

72
30
56
80
52
88
40
84
48
40
68
24
20
28
28
16
28
68
24
124
40
40
24
60

2037.82 1182

M.M. (lakhs)

165.51
68.96
128.73
183.90
119.53
202.29
91 95
91.95
193.09
110.34
91.95
156.31
55.17
45.97
64.36
64.36
36.78
64.36
156 31
156.31
55.17
285.04
91.95
91.95
55.17
137.92

RURAL
Phy.

36
15
28
40
26
44
20
42
24
20
34
12
10
14
14
8
14
34
12
62
20
20
12
30

2717.10 591

URBAN

M.M. (lakhs)

82.75
34.48
64.36
91.95
59.77
101.14
45 97
45.97
96.55
55.17
45.97
78.16
27.58
22.99
32.18
32.18
18.39
32.18
78 16
78.16
27.58
142.52
45.97
45.97
27.58
68.96

Phy.

36
15
28
40
26
44
20
42
24
20
34
12
10
14
14
8
14
34
12
62
20
20
12
30

1358.55 591

M.M. (lakhs)

82.75
34.48
64.36
91.95
59.77
101.14
45 97
45.97
96.55
55.17
45.97
78.16
27.58
22.99
32.18
32.18
18.39
32.18
78 16
78.16
27.58
142.52
45.97
45.97
27.58
68.96
1358.55

DISTRICT-WISE ACHIEVEMENT FOR THE YEAR 2011-12

Sr. No.

Name of Districrts

Ranchi
Khunti
Bokaro
Dhanbad
Hazaribagh
Ramgarh
Koderma
Chatra
Palamu
Garhwa
Latehar
E.Singhbhum
W.Singhbhum
Saraikela
Deoghar
Dumka
Jamtara
Godda
Pakur
Sahebganj
Lohardaga
Gumla
Si d
Simdega
Giridih

2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24

TOTAL :

No. of unit

Margin Money utilized

Phy.

M.M. (lakhs)

335
29
124
146
141
65
30
33
121
87
45
98
89
74
339
128
30
76
60
52
45
63
55

602.17
37.47
300.08
268.13
197.66
109.33
68.31
31.26
151.00
163.61
58.90
97.76
93.23
68.97
331.58
136.93
27.41
85.91
152.14
134.88
53.94
98.21
45.52

1005
87
372
438
423
195
90
99
363
261
135
294
267
222
1017
384
90
228
180
156
135
189
165

107

171.92

321

2372

3486.33

7116

Employment (Nos.)

BANK-WISE ACHIEVEMENT DURING 2011-12

(Rs. in lakhs)
Sr.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19

Name of the Bank

Bank of India
State Bank of India
Central Bank of India
Punjab National Bank
Allahabad Bank
Vijaya Bank
Indian Overseas Bank
Andhra Bank
UCO Bank
Union Bank
United Bank
Bank of Baroda
Canara Bank
Dena Bank
Syndicate Bank
Oriental Bank of Commerce
Bank of Maharashtra
Indian Bank
Jharkhan Gramin Bank

TOTAL :

No. of unit

Margin Money utilized

491
850
126
180
214
8
33
5
82
79
41
44
78
11
35
6
2
8
79

856.52
1073.13
184.43
265.87
345.18
20 93
20.93
84.84
15.30
64.93
131.41
81.05
80.39
87.07
15.68
52.32
5.00
2.75
13.08
106 43
106.43

2372

3486.33

INFORMATION

For any further information, you may

contact ::- Shri Sewa Lal, State Director, KVIC
Mob.: 082927 49512
- Shri
Sh i Nandu
N d R
Ram, Dev.
D
Officer,
Offi
KVIC
Mob.: 094303 53577
e-mail I.D. : stateoffice_ranchi@yahoo.com.

40

For further details, please visit our web

site
it www.kvic.org.in/www.pmegp.in
k i
i /
i
or any field offices of KVIC, KVIBs,
DIC and
DICs
dN
Nationalized
ti
li d B
Banks.
k

41