Question
Which of the following is incorrect regarding the PMEGP
scheme? ÂSolution
Prime Minister’s Employment Generation Programme (PMEGP ) was launched in 2008 by merging the two schemes namely Prime Minister’s Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP). It is a credit linked subsidy programme with focus on generating self-employment opportunities through micro-enterprise establishments in the non-farm sector by helping unemployed youth and traditional artisans . Only new projects are considered for sanction under PMEGP.    Eligibility - Any individual, above 18 years of age ; at least VIII standard pass for projects costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business / service sector.     Under the scheme assistance is given in form of subsidy on project cost for setting up a new microenterprise. The maximum cost of the project/unit admissible in manufacturing sector is Rs. 50 lakhs and in the business/service sector, it is Rs. 20 lakhs.  A second loan for upgradation of existing enterprise can be given if first loan under PMEGP/MUDRA has been successfully repaid in stipulated time   and the margin money claimed under PMEGP has been successfully adjusted   and t he unit is profit making with good turnover and having potential for growth . Â
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