Khadi

P.M.E.G.P

P.M.E.G.P

PRIME MINISTERS EMPLOYMENT GENERATION PROGRAMME

The Ministry of MSME,G.O.I has clubbed the PMRY Scheme with REGP scheme and has introduced the new scheme Prime Ministers Employment Generation Programme (PMEGP) for the year 2008-09.

Scheme Details

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 18 years and above age ,Registered Association/Co-Operative society /Self Help Groups /Stri Shakti Groups. 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.(for urban area General category 15% and special category 25%).
  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 two weeks. 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) t=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 PMEGP the entrepreneurs who have been sanctioned Rs.2.00 lakhs are below to undergo 3 days training and above Rs.2.00 lakhs have to undergo 2 weeks training at KVIC recoginsed Training institutions.

  1. Application form ( in color code-yellow.)
  2. Two Passport size Photographs.
  3. Residential Proof (Ration Card ).
  4. Project Report.
  5. Qualofication Certificate.
  6. Caste Certificate.
  7. Population Certificate of the Area.
  8. Land /Shed Documents.
  9. General Licence from Panchayat.
  10. Machinery quotation.

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. Industry connected with meat i.e. processing canning serving items made of it,
  2. Intoxicant items like Beedi / Pan / cigar / Cigarette etc.
  3. Dhaba Serving Liquor, Preparation /Producing tobacco as raw material.
  4. Tapping of toddy for sale,connected with cultivation of crops /plantations,Harvester Machines,
  5. manufacturing of polythene carry bags of less than 20 microns thickness.
  6. manufacturing of carry bags or container made of recycled plastic for storing ,carrying ,dispensing or packaging of food stuff.
  7. Processing of Pashmina wool and such other products like hand spinning and hand weaving.
  8. Khadi programme availing sales rebate
  9. Rural Transport (Except Auto Rickshaw in Andaman & Nicobar Islands,House Boat,Shikaraand Tourist Boats in J&K and cycle Rickshaw).

PMEGP a revolutionary decision of ministry of MSME,Govt of India by merging PMRY and REGP schemes:

  1. Nodal Agency: KVIC is the Nodal agency at national level to implement the scheme across the country.
  2. Implementing Agencies & Area : KVIC & KVIBs in rural areas of the country and DICs in both rural and urban areas of the country.
  3. Maximum Project Size : Rs.25.00 lakhs for manufacturing sector and Rs.10.00 lakhs for service sector.
  4. Educational Qualification : Minimum of 8th pass for the project cost above Rs.10.00 lakg under manufacturing sector and above Rs.5.00 lakh project cost under service sector.
  5. EDP Training : 2 weeks EDP training is Mandatary.after completing EDP training only,first installment of Bank loan will be released.persons already undergone training of 2 weeks will be exempted for further training.
  6. How to Apply : The scheme will be advertised through print and electronic media.The beneficiary can submit application along with project report at nearest KVIC/KVIB/DIC/Bank Offices
  7. Documents required : Certificate of education qualification ,Technical Qualification ,Caste Certificate (wherever applicable),EDP Training Certificate (for Beneficiaries already undergone )
  8. Selection of Beneficiaries : Beneficiaries will be selected through interview process by the District Task Force Committee headed by the District Magistrate /Dy.Commisioner /Collector.
  9. Project Sanction : Project will be sanctioned by Financing branches of the bnaks as per techno-economic viability.
  10. Amount of Bank Loan : Bank Sanctions and release 90-95% loan of the sanctioned project cost.
  11. Own Contribution : 10% of the project cost in case of general category and 5% in case of weaker section bebeficiaries.
  12. Govt.Subsidy level under the scheme :
    Categories of Beneficiaries under Owner’s Contribution Rate of Subsidy
    ( of cost of Project )
    Area Urban Rural
    General Category 10% 15% 25%
    Special Category (including SC/STs/OBCs/Minorities/women,Ex-service man ,Physically Handicapped,NER,Hill and Border areas) 05% 25% 35%
  13. Marketing Support : As a marketing support for the products produced by PMEGP units,exhibitions,Buyer-seller meet etc,will be arranged to promote their products.
  14. Physical Verification : As a monitoring part and to know the impact of the scheme and to ensure proper utilization of Govt.Subsidy ,100% physical verification will be conducted.
  15. Monitoring : Monitoring will be done at state/Zonal /National level.
  16. Backward & Forward Linkages : As a support service ,funds will be provided for Backward & Forward Linkagesunder the scheme.
  17. Industry Groups : Agro & Food Processing Industry ;Forest based Industry ;Handmade paper/Fibre;Mineral Based Industry;Polymer & Chemical based Industry;Rural Engineering & Bio-Technology;Service Inustry including Textiles.
  18. Negative List : 1. Industry connected with meat i.e; processing canning serving items made of it, 2. Intoxicant items like Beedi / Pan / cigar / Cigarette etc. 3. Dhaba Serving Liquor, Preparation /Producing tobacco as raw material. 4. Tapping of toddy for sale,connected with cultivation of crops /plantations,Harvester Machines, 5. manufacturing of polythene carry bags of less than 20 microns thickness. 6. manufacturing of carry bags or container made of recycled plastic for storing ,carrying ,dispensing or packaging of food stuff. 7. Processing of Pashmina wool and such other products like hand spinning and hand weaving . 8. Khadi programme availing sales rebate 9. Rural Transport (Except Auto Rickshaw in Andaman & Nicobar Islands,House Boat,Shikaraand Tourist Boats in J&K and cycle Rickshaw).
Khadi Industry:
  1. Cotton Khadi
  2. Silk Khadi
  3. Woolen Khadi
  4. Polyvastra Khadi
Village Industries:
  1. Cotton Khadi
  2. Silk Khadi
  3. Woolen Khadi
  4. Polyvastra Khadi
    I.Mineral Based Industry :
  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.
    II . Forest Based Industry
  1. Cottage pottery Industry
  2. Handmade Paper.
  3. Manufacture of Katha.
  4. Manufacture of Gums and Resins.
  5. Manufacture of Shellac.
  6. Cottage Match Industry, Manufacture of Fire works and Agarbhattis.
  7. Bamboo and Cane work.
  8. Manufacture of Paper cups,Bags and other Paper containers.
  9. Manufacturre of exercise Books,binding,Envelope making ,register making,including all other stationery items made out of paper Khustattis and Broom Making
  10. Collection,Processing & Packing of forest Products.
  11. Photo framing
  12. Manufacture of Jute Products.(under fibre Industry)
    II . Agro Based and Food 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.
    IV. Polymer and Chemical Based Industry
  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)
    V. Rural Engineering & Bio Technology ( REBT )
  1. Carpentry.
  2. Blacksmithy.
  3. Manufacture of House hold Aluminum 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, Motorized carts etc
  23. Manufacture of Musical Instruments.
    VI. 123Service Industry
  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

For Further details:

Contact nearest KVIC / KVIB /DIC /Bank Offices.

KARNATAKA STATE KHADI & VILLAGE INDUSTRIES BOARD

Khadi Bhavan ,No.10,Jasma Bhavan Road, Bangalore-560052. Ph :080-22266852,22643439,22643445, Fax : 080-22643446 E-mail : kvibdopmegp@gmail.com