The Prime Minister’s Employment Generation Programme (PMEGP) was launched by which Ministry of the Government of India during 2008-09?

The correct answer is Ministry of Micro, Small and Medium Enterprises.

Key Points

• Prime Minister’s Employment Generation Programme (PMEGP) is a credit-linked subsidy program.
• It was launched in 2008 for the generation of employment opportunities through the establishment of microenterprises in rural and urban areas.
• It is a central sector scheme being administered by the Ministry of Micro, Small and Medium Enterprises (MSME).
• Implementing Agency at the National Level is Khadi and Village Industries Commission(KVIC).
  • It is a statutory organization under the administrative control of the Ministry of MSME.
• Features of the scheme are as follow-
  • It allows entrepreneurs to set up factories or units.
  • Any individual above 18 years of age is eligible for this scheme.
  • Only new projects/units are considered for sanction of loans.
  • Maximum Cost of Project/Unit Admissible for Manufacturing Sector is Rs. 25 lakh.
  • Maximum Cost of Project/Unit Admissible for  Service Sector is Rs. 10 lakh.
  • The government has decided to provide Subsidy in Rural Areas - 25% for the general category and 35% for the special category, which includes SC/ST/ OBC/Minorities, Northeast Region, Hill, and Border Areas. and, In Urban Areas- 15% for general category and 25% for special categories.
  • Under the scheme, loans are provided by Public Sector Banks, Regional Rural Banks, Co-operative Banks, and Private Scheduled Commercial Banks approved by respective State Task Force Committee.

Additional Information

• The Ministry of Micro, Small and Medium Enterprises, a branch of the Government of India.
• It is the apex executive body for the formulation and administration of rules, regulations, and laws relating to micro, small and medium enterprises in India.
• The Ministry of Micro, Small & Medium Enterprises (M/o MSME) aims to cultivate a vibrant MSME sector by fostering its growth and development.
• The ministry's vision includes promoting sectors such as Khadi, Village and Coir Industries, in partnership with associated Ministries/Departments, State Governments, and other stakeholders.
• To qualify as a Micro, Small or Medium Enterprise according to the MSME, an enterprise's investment should not exceed Rs.50 crore and its annual turnover should not be more than Rs.250 crore.
• Key statistics and insights of MSME sector are available through official surveys and reports, such as the NSS 73rd Round Survey (2015-16) and the All India Census of MSME.
• The Ministry oversees the registration of new MSMEs.
• There are statutory bodies and other offices attached to the Ministry, such as the Khadi and Village Industries Commission (KVIC).