Chief Minister Employment Generation Programme

The Government of Karnataka has launched Scheme called Chief Minister Employment Generation Programme to provide more employment opportunities to Rural Artisans. The entrepreneur who is interested to avail this benefit will be provided loan from the banks and the Margin Money will be provided by Karnataka State Khadi and Village Industries Board/District Industries Centers. This Margin Money will be adjusted to loan account of the Entrepreneur only after 3years of Successful establishment and running of the Units.

The Government of Karnataka, through its order No.CI 134 CSC 2015 Dated:15-10-2015 has released guidelines for the implementation of the scheme in respect of Micro Industrial Units.

The Implementation is regulated by the Director and Commissioner, Department of Industries and Commerce, at the State Level along with the CEO of the Karnataka Khadi and Village Industries Board and the District Level Committee headed by the Deputy Commissioner/District Magistrate of the Concerned District

The Salient features of the scheme

1. Beneficiaries own Contribution The Entrepreneur should deposit his own contribution in the financing branch bank SB A/c @ mentioned below before release of First installment of loan portion. (a) 10% of project cost in case of general category. (b) 5% of project cost in case of special category.
2. EDP Training The beneficiary should under go EDP training before released of 1st installment loan amount from the financing branch for the projects for the period of 1 week. EDP is compulsory.
3. Educational Qualification The beneficiary should have Minimum pass in 8th std for availing of loan for the projects.
4. Rural area definition Revenue Village or a any area whose population does not exceed 20,000.
5. Village Industries definition Any industry location in rural area which produces any goods (except the product shown in Negative list) or render any service with or without the use of power. The Margin Money Scheme benefits will not be provided to Khadi, Polyster, Wool and Silk industries which are provided with rebate by state and central governments.
6. Per capita investment The fixed capital investment per head employment should not exceed Rs.1, 00, 000/-
7. Rural Transports This Scheme is not applicable for financial assistance in respect of rural transport.
8. Negative live The unit should not take up the production of products included in the negative lists.
9. Limit of Project Cost The Maximum limit of project cost is Rs.10.00 lakhs.

The loans for the projects will be provided by the selected Nationalized Banks, Private Scheduled Banks, Grameena Banks and Co-operative Banks. The Margin Money component will be provided by the implementing agencies.

The Margin Money component details are as furnished below.

Category Beneficiary contribution (in% of Project cost Bank loan (in% of project cost) Margin Money percentage of project cost (Credited to Financing Banks and beneficiary A/c.
General Category 10% 90% 25%
Special Category SC/ST, OBC, Minority, Women, Physically Challenged/Ex-servicemen) 5% 95% 35%


As per the scheme the RURAL AREA means.Any area classified Village as per the revenue records or any area population of which does not exceed 20,000 persons

  1. Project cost (a) Service Industry maximum Rs.10.00 Lakhs (b) Production Industry maximum Rs.25.00 lakhs.
  2. Eligible Borrowers: Individual entrepreneur of 21 years and above age ,Registered Association/Co-Operative society /Self Help Groups /Stri Shakti Groups are eligible and Partnership firm / Private Company / Hindu un divided family are not eligible.
    One Family can avail onetime benefit only.
  3. Margin Money:The Projects implemented in the rural area are eligible for Margin Money (Middle End Subsidy)The general Category entrepreneur is eligible for 25% of Project cost as Margin Money (Middle End Subsidy) The project implemented by a special category (SC / ST / OBC / Minorities / woman / ex-service man /Physical Handicapped ) beneficiary is eligible for 35% of the project cost as Margin Money.
  4. The general category enterpreneurs has to invest 10% of the project cost as his own contribution and rest of the amount has to be borrowed by the Banks.In case of special category beneficiary .5% own contribution has to be invested in the project. and rest of the amount has to be borrowed by the banks.
  5. Once the project is sanctioned it is obligatory for the beneficiary to under go for an EDP Training for the period prescribed by the District level Committee. After release of bank finance Bank will be submit Margin Money claim in the prescribed form. After receipt of Margin Money (middle end subsidy) it will be kept in TDR for three (3) years in the name of the beneficiary. No interest will be paid on TDR amount and no interest will be levied on equal loan amount The TDR.amount will be credited to borrowers loan account after three (3) years after verification of working of unit.
  1. Public sector Banks
  2. All Regional Rural Banks
  3. Co-Operative Banks approved by SLBC

EDP Training is mandatory for all those beneficiaries who have been sanctioned assistance under CMEGP entrepreneur as prescribed under the rules.

  1. Application with recent passport photograph.
  2. Project Report.
  3. Age proof
  4. Educational qualification document
  5. EDP Training Certificate
  6. Voter Id/ Ration card copy.
  7. Rural Certificate for Units proposed.
  8. List of Machineries to be purchased.
  9. Caste certificate for SC/ST/OBC/Minority
  10. Physically Handicapped Certificate
  11. Ex-serviceman Certificate.
  12. IEM-1

Some of the Activities which can be taken under this scheme:

  1. Cottage pottery Industry
  2. Lime stone, Lime shell and other lime products Industry.
  3. Stone cutting,crushing,carving, and engraving for temples and buildings.
  4. Utility Articles made out of stone.
  5. Slate and Slate pencil Making.
  6. Manufacture of plaster of Paris.
  7. Utensil washing powder.
  8. Fuel Briquetting
  9. Jewellery out of Gold ,Silver ,Stone , Shell and Synthetic materials.
  10. Manufacture of Gulal ,Rangoli.
  11. Manufacture of Bangles.
  12. Manufacture of Paints ,Pigments ,Varnishes, and Distemper.
  13. Manufacture of Glass Toys.
  14. Glass decoration-Cutting ,Designing anf Polishing.
  15. Gem Cutting.
  16. Iodised Salt.
  1. Handmade Paper.
  2. Manufacture of Katha.
  3. Manufacture of Gums and Resins.
  4. Manufacture of Shellac.
  5. Cottage Match Industry, Manufacture of Fire works and Agarbhattis.
  6. Bamboo and Cane work.
  7. Manufacture of Paper cups,Bags and other Paper containers.
  8. Manufacturre of exercise Books,binding,Envelope making ,register making,including all other stationery items made out of paper
  9. Khustattis and Broom Making
  10. Collection,Processing & Packing of forest Products.
  11. Photo framing
  12. Manufacture of Jute Products.(under fibre Industry)
  1. Processing packing and marketing of cereals,spices,Condiments,Masala etc.
  2. Noodles Making.
  3. Power atta Chakki
  4. Daliya Making.
  5. Mini rice Shelling Unit.
  6. Palmgur making and other palm products industry.
  7. Manufacture of Cane gur and Khandsi
  8. Indian Sweets making
  9. Sugar cane juice catering unit
  10. Bee-Keeping.
  11. Fruits and Vegetable processing,Preservation and canning including Pickles
  12. Ghani oil Industry
  13. Menthol Oil
  14. Fibre
  15. Collection of Forest Plants and Fruits for Medicvinal Purpose
  16. Processing of Maize and Ragi
  17. Pith work,Manufacturing of Pith mats and Garlands etc.
  18. Cashew Processing
  19. Leaf cup making
  20. Milk Products making unit.
  21. Cattle feed,Poultry feed making.
  1. Flaying,curing and tanning of hides and skins an ancillary Industries connected with the cottage leather works.
  2. Cottage soap Industry.
  3. Manufacture of Rubber goods (dipped latex products)
  4. Products out of Rerxin,PVC etc.
  5. Horn and Bone Including ivory products.
  6. Candle,Camphor, and sealing wax making.
  7. Manufacture of Packing items of Plastic.
  8. Manufacture of Bindi
  9. Manufacture of Mehandi
  10. Manufacture of essence oil
  11. Manufacture of Shampoos
  12. Manufacture of hair-oil
  13. Detergents and washing Powder making (Non toxic)
  1. Carpentry
  2. Blacksmithy.
  3. Manufacture of House hold Alluminium utensils
  4. Manufacture and use of Manure and methane (Gober) Gas from cow dung and other waste products.(such as flesh of dead animals, night soil etc).
  5. Vermi compost
  6. Manufacture of Decorative bulbs, bottles, glass etc.
  7. Umbrella Assembling.
  8. Solar and wind energy implements
  9. Manufacture of Handmade utensils out of Brass.
  10. Manufacture of Handmade utensils out of copper.
  11. Manufacture of Handmade utensils out of Bell metal.
  12. Other Articles made out of Brass, Copper and Bell metal.
  13. Production of radios.
  14. Production of Cassette Player whether or not fitted with the radio
  15. Production of voltage Stabilizer.
  16. Manufacture of electronic clocks and alarm time Pieces.
  17. Carved wood and artistic furniture making.
  18. Tin smithy
  19. Motor Winding
  20. Wire net making.
  21. Iron grill making.
  22. Manufacture of Rural Transport vehicles such as hand carts,bullock cart,Small boats, cycle rickshaw,Motorised carts etc.
  23. Manufacture of Musical Instruments.
  1. Cycle Assembly / Repair.
  2. Service station for two wheeler, Three wheeler and four wheeler.
  3. Readymade Garments.
  4. Tailoring.
  5. Boutique Work
  6. Toys and Doll Making.
  7. Thread Balls and Woolen Balling, Lacchi Making.
  8. Embroidery
  9. Manufacture of surgical Bandages
  10. Stove Wicks.
  11. Embroidery of Fabrics
  12. Laundry
  13. Barber
  14. Plumbing
  15. Servicing of Electric wiring, electronics Domestic appliances and equipments.
  16. Repairs of Diesel Engine, Pump set etc.
  17. Tyre Vulcanizing unit
  18. Agriculture servicing like Sprayers for insecticides, Pumpset service etc.
  19. Hiring of Sound system like loud speakers amplifier mike etc.
  20. Battery Charging
  21. Art Board Painting
  22. Cycle repair shops.
  23. Masonary
  24. Band Troupe
  25. Tea stall
  1. Breweries & Distilleries of all types excluding winery.
  2. Khandasari and Jaggery making enterprises.
  3. Photo Studios & Color Processing and instant photo printing Enterprises.
  4. Photo Copying, Xerox machines, Fax machines, Data Entry, data Recovery enterprises.
  5. Fertilizer mixing units.
  6. Units engaged in Re-packing of Drugs/Medicines/Chemicals without any processing or value addition.
  7. All types of Saw Mills excluding manufacture of particle board/Low Density Fiber Board (LDF)/Medium Density Fiber Boards (MDF)/High Density Fiber Boards (HDF).
  8. Beedies/Cigarettes/Cigars/Gutka & other Tobacco based products manufacturing enterprises.
  9. Azoic/Reactive Dyes manufacturing enterprises.
  10. Fire Cracker manufacturing enterprises.
  11. Industries manufacturing and/or utilizing ozone depleting substances.
  12. Laundries including Power Laundries.
  13. Brick making Enterprises excluding Cement Hollow Blocks, Wire Cut & Fly Ash Bricks and Refractory Bricks.
  14. Poultry excluding hatcheries.
  15. Popcorn and Ice candy making Enterprises excluding Ice Cream Manufacturing.
  16. Coffee roasting and grinding units having installed capacity of less than 2MT/day capacity.
  17. Clock and Watch/Mobile/Compute and Hardware equipment’s repair enterprises.
  18. Cassette recording (Audio & Video enterprises).
  19. Cyanide Manufacturing enterprises.
  20. Mining and Mining Equipment’s.
  21. Lime kiln/burnt lime units.
  22. X-ray clinics and clinical/pathological laboratories and scanning, M.R.I. testing enterprises.
  23. All industries of mobile nature like rigs, concrete/tar mixing plants/hot mix plants including site oriented industries.
  24. Units engaged in manufacture of Chrysolite Asbestos (White crystal).
  25. All types of Saloons, Spas, and Massaging Centers etc.
  26. All types of hotels/restaurants/resorts/amusement parks etc.

For Further details:

Contact nearest KVIB /DIC /Bank Offices.


Khadi Bhavan ,No.10,Jasma Bhavan Road, Bangalore-560052. Phone :22643445/22643439 E-mail :