Prime Minister’s
Employment Generation Programme (PMEGP)
A major credit-linked subsidy programme of the Government of India designed to establish micro enterprises in rural and urban areas, merging PMRY and REGP.
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The Scheme
The Government of India approved the introduction of the **Prime Minister’s Employment Generation Programme (PMEGP)** by merging two prominent schemes: the *Prime Minister’s Rojgar Yojana (PMRY)* and the *Rural Employment Generation Programme (REGP)*.
Administered by the **Ministry of Micro, Small and Medium Enterprises (MoMSME)**, PMEGP functions as a central sector scheme. The Government subsidy is routed by the National Nodal Agency through identified banks for direct credit into the bank accounts of beneficiaries and entrepreneurs.
Administered By
Ministry of MSME
Nodal Agency
KVIC (National)
Target Locations
Rural & Urban Areas
Implementing Agencies
PMEGP is executed via a structured framework spanning national, state, and district levels:
National Level Nodal
Khadi and Village Industries Commission (KVIC)
State Level Nodal
State KVIC Directorates & State Khadi and Village Industries Boards (KVIBs)
District Level & Finance
District Industries Centres (DICs), Commercial Banks, and Partner Institutions
Program Objectives
The primary targets are aimed at employment generation and uplifting the traditional artisan base.
Self-Employment & Venture Creation
Generate continuous employment opportunities in rural as well as urban areas of the country through setting up of new self-employment ventures, projects, and micro enterprises.
Youth and Artisan Mobilization
Bring together widely dispersed traditional artisans and rural/urban unemployed youth, providing them with self-employment opportunities at their regional locations.
Arresting Rural Migration
Provide continuous and sustainable employment to a large segment of traditional artisans and rural/urban unemployed youth to help arrest migration to urban areas.
Enhancing Earning Capacity
Increase the wage earning capacity of artisans and contribute significantly to accelerating the growth rate of rural and urban employment.