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Prime Minister's

Programme, India
• For the Benefit of Unemployed people, the Ministry of Micro
Small and Medium Entreprises proposed a credit linked subsidy
program called Prime Minister's Employment Generation
Programme in the year 2008.
• Government of India approved the introduction of this scheme
by merging the two schemes namely Prime Minister's Rojgar
Yojana and Rural Employment Generation Programme for
generation of employment opportunities in rural as well as
urban areas.
• To generate continuous and sustainable employment opportunities in
Rural and Urban areas of the country.
• Increase artisans’ wage earning capacity and contribute to raise the
growth rate of urban and rural employment.
• To provide employment to a large segment of traditional and
prospective artisans, unemployed youth by the means of setting up
of micro enterprises.
• To facilitate participation of financial institutions for higher credit
flow to micro sector.
Nature of Financial Assistance
The subsidy levels or cost limit of units or projects that
could be established was extended to the rural and urban
areas as well.
To ensure inclusive growth, higher subsidy levels are given
to those beneficiaries that belong to marginalized society
sections like Schedule Tribes, Schedule Castes, Women,
Minorities, Other Backward Classes, Physically Challenged,
• Individuals above 18 years of age
• VIII Std. pass required for project above Rs.10.00 lakhs in
manufacturing and above Rs. 5.00 lakhs for Service
• Self Help Groups and Charitable Trusts.
• Institutions Registered under Societies Registration Act-
• Production based Co-operative Societies
Salient features of the scheme
• No income ceiling for setting up of projects.
• Assistance under the Scheme is available only to new units to be
• Any industry including Coir Based projects except specifically
mentioned otherwise.
• Per capita investment should not exceed Rs. 1.00 lakhs in plain areas
and Rs. 1.50 lakhs in Hilly areas.
• Maximum project cost of Rs. 25.00 lakhs in manufacturing sector and
Rs. 10.00 lakhs in Service Sector.
• By Khadi and Village Industries Commission, the scheme
is implemented through District Industries Centres, Khadi
and Village Industry Boards, and State Directorates of
KVIC in rural areas.
• On the other hand, urban areas implementation will be in
coordination with State District Industries Centres only.
• KVIC is coordinating with State DICs/State KVIBs to
monitor performance in urban and rural areas.

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