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CCEA Approves to Continue Prime Minister's Employment Generation Programme

Published on March 05, 2018
Modi-led Cabinet Committee on Economic Affairs has approved to continuation of Prime Minister's Employment Generation Programme.

The programme will be continued beyond 12th Plan for three years from 2017-18 to 2019-20 with a total outlay of Rs.5,500 crore.

Aim of the Scheme

The main purpose of the scheme is to create sustainable estimated employment opportunities for 15 lakh persons in three financial years.  A minimum target of 75 project/district is awarded to all districts of the country to achieve Inclusive Growth. Higher rate of subsidy (25% to 35%) will be applicable for women, SC/ST, OBC, Physically Disabled, NER applicants in rural areas.
Targets are fixed taking into account:
  • Extent of backwardness of State
  • Extent of unemployment
  • Extent of fulfillment of previous year targets
  • Population of State/Union Territory
  • Availability of traditional skills and raw material

Improvements in the scheme

  • Second loan of upto Rs. one crore to existing and better performing PMEGP units for upgrading with subsidy of 15%;
  • Merger of Coir Udyami Yojana (GUY) in PMEGP
  • Introduction of concurrent monitoring and evaluation
  • Mandatory Aadhaar and Pan card
  • Geo-tagging of units                                                       
  • Negative list under PMEGP amended allowing serving/selling non-vegetarian food at Hotels/Dhabas and Off Farm/Farm Linked activities.
  • Dispensing the ratio of 30:30:40 for KVIC/KVIB/DIC.
  • Cap the working capital component for manufacturing units to 40% of the project cost and for service/trading sector to 60% of the project cost.


Prime Minister's Employment Generation Programme is a credit-linked subsidy programme. It is implemented by Micro Small and Medium Enterprises since 2008-2009 with an aim of generating self-employment opportunities through establishment of micro-enterprises in the non-farm sector.

Expected Questions

 Prime Minister's Employment Generation Programme will be continued beyond 12th Plan for three years from 
a. 2016-18 to 2018-20
b. 2017-18 to 2019-20
c. 2016-17 to 2017-18
d. 2017-19 to 2019-22

Prime Minister's Employment Generation Programme is a credit-linked subsidy programme that aims at generating employment in
a. non-farm sectors
b. farming sectors
c. a and b both
d. None of the above
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