Telangana Industries Department

Self Employement Scheme



1. The Scheme

Government of India has approved the introduction of a new credit linked subsidy programme called Prime Minister’s Employment Generation Programme (PMEGP) by merging the two schemes that were in operation till 31.03.2008 namely Prime Minister’s Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP) for generation of employment opportunities through establishment of micro enterprises in rural as well as urban areas. PMEGP will be a central sector scheme to be administered by the Ministry of Micro, Small and Medium Enterprises (MoMSME). The Scheme will be implemented by Khadi and Village Industries Commission (KVIC), a statutory organization under the administrative control of the Ministry of MSME as the single nodal agency at the National level. 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.

2. Quantum and Nature of Financial Assistance Levels of funding under PMEGP


Categories of beneficiaries
under PMEGP

Beneficiary’s contribution
(of project cost)

Rate of Subsidy
(of project cost)

Area (location of project/unit)




General Category




Special (including SC / ST /
OBC /Minorities/Women, Exservicemen, Physically
handicapped, NER, Hill and
Border areas etc.





Note: (1) The maximum cost of the project/unit admissible under manufacturing sector is Rs. 25 lakh.
(2) The maximum cost of the project/unit admissible under business/service sector is Rs.10 lakh.
(3) The balance amount of the total project cost will be provided by Banks as term loan

3. Eligibility Conditions of Beneficiaries

(i) Any individual, above 18 years of age
(ii) There will be no income ceiling for assistance for setting up projects under PMEGP.
(iii) For setting up of project costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business /service sector, the beneficiaries should possess at least VIII standard pass educational qualification.
(iv) Assistance under the Scheme is available only for new projects sanctioned specifically under the PMEGP.
(v) Self Help Groups (including those belonging to BPL provided that they have not availed benefits under any other Scheme) are also eligible for assistance under PMEGP.
(vi) Institutions registered under Societies Registration Act,1860;
(vii) Production Co-operative Societies, and

  1. Charitable Trusts.
  2. Existing Units (under PMRY, REGP or any other scheme of Government of India or State Government) and the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are not eligible.

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