Govt extends PMEGP scheme for five more years with Rs 13.5k crore outlay

Ease of Doing Business for MSM Es: The government on Monday announced the extension of its scheme for employment generation Prime Minister’s Employment Generation Programme (PMEGP) over the 15th Finance Commission Cycle from 2021-22 to 2025-26 with an outlay of Rs 13,554.42 crore. In addition, multiple modifications have also been made to the scheme including increasing the maximum financial assistance offered from existing Rs 25 lakh to Rs 50 lakh to entrepreneurs for setting up new manufacturing units and from existing Rs 10 lakh to Rs 20 lakh for new service units. Launched in 2008-09, the scheme has supported around 7.8 lakh micro-enterprises with a subsidy of Rs 19,995 crore to create employment for around 64 lakh people, the MSME Ministry said in a statement. Around 80 percent of the units assisted under PMEGP are in rural areas and about 50 percent of units are owned by scheduled caste, scheduled tribe, and women entrepreneurs. Khadi and Village Industries Commission (KVIC) is the national nodal agency of the scheme.

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