Ms. Asaraf Unnisa L and Dr. Amulya M
Government has been implementing a credit linked subsidy programme named Prime Minister's Employment Generation Programme (PMEGP) in 2008 by merging the two schemes namely Prime Minister's Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP), with Khadi and Village Industries Commission (KVIC) as the nodal agency. PMEGP has been implemented at the national level for generating employment in the country by setting up of microenterprises in the nonfarm sector. Under PMEGP, general category beneficiaries can avail of margin money subsidy of 25 per cent of the project cost in rural areas and 15 per cent in urban areas. For beneficiaries belonging to special categories such as scheduled castes, scheduled tribes, OBCs, minorities, women, ex-servicemen, physically handicapped, beneficiaries belonging to North Eastern Region, hill and border areas, etc., the margin money subsidy is 35 per cent in rural areas and 25 per cent in urban area. Under the scheme, the maximum cost of project is Rs 25 lakh in the manufacturing sector and Rs 10 lakh in the service sector. Government has released Rs 1,019 crore as margin money. The government had released 1,093.06 crore as margin money subsidy under the programme. Nearly 41,000 jobs have been created under the Scheme in 2015.