What are the objectives of the Prime Minister's Employment Generation Programme (PMEGP)?

Prime Minister’s Employment Generation Programme (PMEGP) is a credit-linked subsidy programme aimed at generating self-employment opportunities through establishment of micro-enterprises in the non-farm sector by helping traditional artisans and unemployed youth.
Government introduced the new scheme by merging the two schemes Prime Minister’s Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP) in 2008.
PMEGP is a central sector scheme administered by the Ministry of Micro, Small and Medium Enterprises. At the national level, the Scheme is being implemented by Khadi and Village Industries Commission (KVIC). At the State level, the Scheme will be implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs) and District Industries Centres (DICs) and banks.
Objectives of the scheme

  • To generate continuous and sustainable employment opportunities in Rural and Urban areas of the country
  • To provide continuous and sustainable employment to a large segment of traditional and prospective artisans, rural and urban unemployed youth in the country through setting up of micro enterprises.
  • To facilitate participation of financial institutions for higher credit flow to micro sector.

Indian agriculture has surplus workforce and there is a need to transfer this excess workforce to other sectors. PMEP aims to create Job creators by encouraging entrepreneurship.
Therefore, the government has approved the continuation of Prime Minister’s Employment Generation Programme (PMEGP) beyond the 12th Plan period for three years to 2019-20 with a total outlay of Rs 5,500 crore. The scheme will create sustainable estimated employment opportunities for 15 lakh persons in three financial years.


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