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Union Government extended PMEGP till FY26 with an outlay of Rs 13,554

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PMEGP extended till FY26 with Rs 13,554 crore outlay

On May 30 2022, The Prime Minister’s Employment Generation Programme (PMEGP) was extended for continuation till the financial year (FY) 2025-26 with the total outlay of approx. Rs 13,554 crore, with an aim of creating sustainable employment opportunities for about 40 lakh persons in five financial years.

  • The extension of the scheme is over the 15th Finance Commission Cycle for five years from 2021-22 to 2025-26.
  • All the States and Union Territories will be covered under the Scheme.

Key Modifications:

Some of the major modifications in the existing scheme include –

i.Increase in Maximum project cost from Rs 25 Lakhs to Rs 50 Lakhs for manufacturing units and from Rs 10 Lakhs to Rs 20 Lakhs for service units.

ii.The definition of Village industry and rural areas are modified for PMEGP with areas falling under Panchayti Raj institutions to be accounted under rural areas, whereas areas under municipal corporations to be treated as urban areas.

iii.All the implementing agencies are allowed to receive and process applications irrespective of the rural or urban category.

iv.The PMEGP applicants under the aspirational districts and transgender will be treated as special category applicants and entitled for higher subsidy.

v.For the Special category applicants such as Scheduled Caste (SC), scheduled Tribe (ST), Other Backward Class (OBC), Women, transgender, physically disabled, North-eastern Region, aspirational and border district applicants gets magin money subsidy at the rate of 25 percent of the project cost in urban area and 35 percent of the project cost in rural areas.

vi.For the general category applicants, the subsidy is 15 percent of the project cost in urban areas and 25 percent of the project cost in rural areas.

vii.The entire process of application to sanction and release of funds by banks is online through the portal. Any individual above 18 years of age is eligible. Click Here


i.Since the inception of PMEGP in 2008-09, about 7.8 lakh micro enterprises have received assistance with a subsidy of Rs 19,995 crore, generating estimated sustainable employment for 64 lakh persons.

ii.About 80 percent of the units assisted are in rural areas and about 50 percent are owned by SC, ST and women categories.

About Prime Minister’s Employment Generation Programme (PMEGP):

i.The Prime Minister’s Employment Generation Programme (PMEGP) is the flagship scheme of the Ministry of Micro, Small & Medium Enterprises (MSME) implemented to facilitate generation of employment opportunities for unemployed youth across the country by assisting the setting up of micro-enterprises in the non-farm sector. 

ii.The Khadi and Village Industries Commission (KVIC) is the national level nodal agency. At the State or District level State office of KVIC, State Khadi & Village Industry Boards (KVIB) and District Industry Centres (DIC) are the implementing agencies. 

iii.Coir Board is the implementing Agency for the Coir Units.