What is PMEGP
PMEGP is a credit-linked subsidy scheme implemented by the Khadi & Village Industries Commission (KVIC) under the Ministry of Micro, Small & Medium Enterprises (MSME) to generate employment by setting up self-employment ventures in rural & urban areas.
The idea: encourage unemployed youth, traditional artisans, etc., to start micro‐businesses (manufacturing/service) by providing subsidy + bank loan.
It covers new projects only (not existing businesses under certain conditions).
Website link 🖇️
Source: KVIC https://share.google/f1EBLnBOYCEBUARfO
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Key Features / Benefits
Maximum project cost: For manufacturing sector up to ₹ 50 lakh, for business/service sector up to ₹ 20 lakh.
Subsidy rates:
General category in rural areas: ~ 25% subsidy. In urban areas: ~ 15%.
Special category (SC/ST/OBC/Minorities/Women/Ex-servicemen/Physically challenged/NE/Hilly/Border areas): ~ 35% in rural, ~ 25% in urban.
Beneficiary contribution (margin money): General category ~ 10%; Special category ~ 5%.
The cost of land is not included in project cost; cost of ready‐built/rented shed can be included up to 3 years.
Encourages local employment and supports rural areas.
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Eligibility
Applicant must be 18 years or older.
Educational qualification: For projects costing above certain thresholds (e.g., manufacturing above ₹10 lakh, or service above ₹5 lakh), minimum standard VIII pass. For smaller projects, no fixed educational requirement.
Only new enterprises/projects are eligible — existing units under PMRY/REGP or other government subsidy schemes may be ineligible.
Entities apart from individuals: SHGs, societies, charitable trusts, co‐operative societies can also apply in some cases.
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What kinds of projects / sectors
Manufacturing sector: any non‐agricultural manufacturing activity (traditional and modern).
Service/Business sector: service enterprises, business ventures (within limits).
Some exclusions apply (for example certain trading activities, etc.) — you’ll want to check in your state.
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How to Apply – Step by Step
Here’s a fairly current process (for 2025) to apply for PMEGP:
1. Visit the official PMEGP web portal: e.g., the KVIC portal.
2. Check your eligibility: refer to the eligibility criteria page.
3. Fill the online application form:
On the portal click “Application for New Unit” or similar.
Provide Aadhaar, basic personal details, project details, etc.
4. Upload required documents: e.g., ID proof (Aadhaar), address proof, educational certificate, caste/special category certificate (if applicable), project report, etc.
5. Submit the application online; print a copy of the application.
6. Submit the printed application along with copies of documents to the concerned agency (could be KVIC office, state nodal agency, bank, etc as per your state).
7. Select / approach a bank or financial institution (as per your state’s instructions) which will sanction the bank loan + subsidy component.
8. After approval, the unit is set up; then monitoring etc may follow.
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Documents Required
Mostly the following (may vary slightly by state):
Aadhaar card, PAN card, address proof.
Caste certificate / special category certificate if applicable.
Educational certificate (if required).
Project report (detailing the business/project cost, scale, location, etc.).
Proof of bank account (for loan/subsidy).
For institutions (SHG, society): registration certificate, bye‐law authorisation, etc.
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Things to Note / Tips
Make sure the project is new — existing units under similar subsidy schemes may be disqualified.
Choose a bank that participates in PMEGP in your region and coordinate with them early.
Prepare a clear, realistic project report. Even though the subsidy reduces cost, you still need viability.
Your eligibility category (general vs special) and rural vs urban location affects subsidy % and your contribution.
Just submitting the application doesn’t automatically guarantee approval — bank and nodal agency scrutiny will apply.
After getting sanction, you should follow through with the setup of the unit as per scheme rules to avoid losing subsidy.
Monitor the portal/application status (after login) to see the progress.
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Applying from Telangana / Hyderabad
Since you are in Hyderabad/Telangana, you should check with the Telangana state nodal agency or the District Industries Centre (DIC) in your district for the PMEGP scheme. Each state/UT may have a specific implementation office. Use the portal above (KVIC e-portal) and check for your state’s list of banks and application process.
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