The Prime Ministers Employment Generation Programme (PMEGP) has been running successfully in the 4th year of its implementation. So far an amount of 2,955 crore rupees have been released by the Ministry under this scheme. In an encouraging trend, 1.36 lakh projects have been assisted so far, generating 13.16 lakh employment. According to KVIC. more than 90 per cent of these units have been set up. For this year, 68 per cent of margin money allocation has already been released to states with more demand coming in from many states. The scheme is expected to continue over the next five-year plan with more than double the fund allocation.
PMEGP is a Central Sector Scheme administered by the Ministry of Micro, Small and Medium Enterprise. At the State/UT level, the Scheme is implemented through field offices of State KVIC, State/UT Khadi and Village Industries Boards and District Industries Centers with the involvement of banks. The objectives of this scheme are-to generate employment opportunities in rural as well as urban areas of the country through setting up of new self-employment ventures or projects or micro enterprises; to bring together widely dispersed traditional artisans or rural and urban unemployed youth and give them self-employment opportunities to the extent possible, at their place; to provide continuous and sustainable employment to a large segment of traditional and prospective artisans and rural and urban unemployed youth in the country, so as to help arrest migration of rural youth to urban areas; and to increase the wage earning capacity of artisans and contribute to increase in the growth rate of rural and urban employment.