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Sep 26, 2008


1. The Scheme
Government of India has approved the introduction of a new credit
linked subsidy programme called Prime Minister’s Employment Generation
Programme (PMEGP) by merging the two schemes that were in operation till
31.03.2008 namely Prime Minister’s Rojgar Yojana (PMRY) and Rural
Employment Generation Programme (REGP) for generation of employment
opportunities through establishment of micro enterprises in rural as well as
urban areas. PMEGP will be a central sector scheme to be administered by
the Ministry of Micro, Small and Medium Enterprises (MoMSME). The
Scheme will be implemented by Khadi and Village Industries Commission
(KVIC) -
 a statutory organization under the administrative control of the
Ministry of MSME as the single nodal agency at the National level. At the
State level, the Scheme will be implemented through State KVIC
Directorates, State Khadi and Village Industries Boards (KVIBs) and District
Industries Centres (DICs) and banks. The Government subsidy under the
Scheme will be routed by KVIC through the identified Banks for eventual
distribution to the beneficiaries / entrepreneurs in their Bank accounts.
The Implementing Agencies, namely KVIC, KVIBs and DICs will associate
reputed Non Government Organization (NGOs)/reputed autonomous
institutions/Self Help Groups (SHGs)/ National Small Industries
Corporation (NSIC) / Udyami Mitras empanelled under Rajiv Gandhi Udyami
Mitra Yojana (RGUMY), Panchayati Raj institutions and other relevant
bodies in the implementation of the Scheme, especially in the area of
identification of beneficiaries, of area specific viable projects, and providing
training in entrepreneurship development.
2. Objectives
(i) To generate employment opportunities in rural as well as urban
areas of the country through setting up of new self-employment
ventures/projects/micro enterprises.
(ii) To bring together widely dispersed traditional artisans/ rural
and urban unemployed youth and give them self-employment
opportunities to the extent possible, at their place.
(iii) To provide continuous and sustainable employment to a large
segment of traditional and prospective artisans and rural and
urban unemployed youth in the country, so as to help arrest
migration of rural youth to urban areas.
(iv) To increase the wage earning capacity of artisans and contribute
to increase in the growth rate of rural and urban employment.
3. Quantum and Nature of Financial Assistance
Levels of funding under PMEGP
Categories of beneficiaries
under PMEGP
(of project cost)
Rate of Subsidy
(of project cost)
Area (location of project/unit) Urban Rural
General Category 10% 15% 25%
Special (including SC / ST /
OBC /Minorities/Women, Exservicemen,
handicapped, NER, Hill and
Border areas etc.
05% 25% 35%
Note: (1) The maximum cost of the project/unit admissible under manufacturing sector is Rs.
25 lakh.
(2) The maximum cost of the project/unit admissible under business/service sector is
Rs. 10 lakh.
(3) The balance amount of the total project cost will be provided by Banks as term loan
4. Eligibility Conditions of Beneficiaries
(i) Any individual, above 18 years of age
(ii) There will be no income ceiling for assistance for setting up
projects under PMEGP.
(iii) For setting up of project costing above Rs.10 lakh in the
manufacturing sector and above Rs. 5 lakh in the business
/service sector, the beneficiaries should possess at least VIII
standard pass educational qualification.
(iv) Assistance under the Scheme is available only for new
projects sanctioned specifically under the PMEGP.
(v) Self Help Groups (including those belonging to BPL provided
that they have not availed benefits under any other Scheme)
are also eligible for assistance under PMEGP.
(vi) Institutions registered under Societies Registration
(vii) Production Co-operative Societies, and
(viii) Charitable Trusts.
(ix) Existing Units (under PMRY, REGP or any other scheme
of Government of India or State Government) and the units
that have already availed Government Subsidy under any
other scheme of Government of India or State Government
are not eligible.
4.1 Other eligibility conditions
(i) A certified copy of the caste/community certificate or relevant
document issued by the competent authority in the case of other
special categories, is required to be produced by the beneficiary
to the concerned branch of the Banks along with the Margin
Money (subsidy) Claim.
. (ii) A certified copy of the bye-laws of the institutions is required to
be appended to the Margin Money (subsidy) Claim, wherever
(iii) Project cost will include Capital Expenditure and one cycle of
Working Capital. Projects without Capital Expenditure are not
eligible for financing under the Scheme. Projects costing more
than Rs.5 lakh, which do not require working capital, need
clearance from the Regional Office or Controller of the Bank’s
Branch and the claims are required to be submitted with such
certified copy of approval from Regional Office or Controller, as
the case may be.
(iv) Cost of the land should not be included in the Project cost. Cost
of the ready built as well as long lease or rental Workshed/
Workshop can be included in the project cost subject to
restricting such cost of ready built as well as long lease or
rental workshed/workshop to be included in the project cost
calculated for a maximum period of 3 years only.
(v) PMEGP is applicable to all new viable micro enterprises,
including Village Industries projects except activities indicated in
the negative list of Village Industries. Existing/old units are not
eligible (Para 29 of the guidelines refers).
(1) The Institutions/Production Co-operative Societies/Trusts specifically registered as such
and SC/ ST/ OBC/ Women/ Physically Handicapped / Ex-Servicemen and Minority
Institutions with necessary provisions in the bye-laws to that effect are eligible for Margin
Money (subsidy) for the special categories. However, for Institutions /Production
Cooperative Societies/Trusts not registered as belonging to special categories, will be
eligible for Margin Money (Subsidy) for general category.
(2) Only one person from one family is eligible for obtaining financial assistance for setting
up of projects under PMEGP. The ‘family’ includes self and spouse.
5. Implementing Agencies
5.1 The Scheme will be implemented by Khadi and Village Industries
Commission (KVIC), Mumbai, a statutory body created by the Khadi and
Village Industries Commission Act, 1956, which will be the single nodal
agency at the national level. At the State level, the scheme will be
implemented through State Directorates of KVIC, State Khadi and Village
Industries Boards (KVIBs) and District Industries Centres in rural areas. In
urban areas, the Scheme will be implemented by the State District
Industries Centres (DICs) only. KVIC will coordinate with State KVIBs/State
DICs and monitor performance in rural and urban areas. KVIC and DICs
will also involve NSIC, Udyami Mitras empanelled under Rajiv Gandhi
Udyami Mitra Yojana (RGUMY), Panchayati Raj Institutions and other NGOs
of repute in identification of beneficiaries under PMEGP.
5.2 Other Agencies
The details of other agencies to be associated by nodal agencies in the
implementation of PMEGP are as under:
i) Field Offices of KVIC and its State offices
ii) State KVI Boards
iii) District Industries Centre (DIC) of all State Governments/Union
Territories Administrations reporting to respective Commissioners
/Secretaries (Industries).
iv) Banks/Financial Institutions.
v) KVI Federation
vi) Department of Women and Child Development (DWCD), Nehru
Yuva Kendra Sangathan (NYK, The Army Wives Welfare
Association of India (AWWA) and Panchayati Raj Institutions
vii) NGOs having at least five years experience and expertise in Project
Consultancy in Small Agro & Rural Industrial Promotion and
Technical Consultancy Services, Rural Development, Social Welfare
having requisite infrastructure and manpower and capable of
reaching Village and Taluk level in the State or Districts. NGOs
should have been funded by State or National Level Government
Agency for any of its programmes in the preceding 3 years period.
viii) Professional Institutions/Technical Colleges recognized by
Government/University and University Grants Commission (UGC)/
All India Council for Technical Education (AICTE) having
department for vocational guidance or technical courses providing
skill based training like ITI, Rural Polytechnic, Food Processing
Training Institute, etc.
ix) Certified KVI institutions aided by KVIC / KVIB provided these are
in category A+, A or B and are having required infrastructure,
manpower and expertise for the role.
x) Departmental and Non-Departmental Training Centres of KVIC /
xi) Micro, Small and Medium Enterprises Development Institutes
(MSME-DIs), MSME Tool Rooms and Technical Development
Centres, under the administrative control of Office of Development
Commissioner, MSME.
xii) National Small Industries Corporation’s (NSIC) offices, Technical
Centres, Training Centres, Incubators and Training cum Incubation
Centres (TICs) set up in PPP Mode.
xiii) National level Entrepreneurship Development Institutes like
National Institute for Entrepreneurship and Small Business
Development (NIESBUD), National Institute for Micro, Small and
Medium Enterprises (NIMSME) and Indian Institute of
Entrepreneurship (IIE), Guwahati under the administrative control
of Ministry of MSME, their branches and the Entrepreneurship
Development Centres (EDCs) set up by their Partner Institutions
xiv) Udyami Mitras empanelled under Rajiv Gandhi Udhyami Mitra
Yojana of Ministry of MSME.
xv) PMEGP Federation, whenever formed.
6. Financial Institutions
(i) 27 Public Sector Banks.
(ii) All Regional Rural Banks.
(iii) Co-operative Banks approved by State Level Task Force Committee
headed by Principal Secretary (Industries)/Commissioner
(iv) Private Sector Scheduled Commercial Banks approved by State
Level Task Force Committee headed by Principal Secretary
(Industries)/Commissioner (Industries).
(v) Small Industries Development Bank of India (SIDBI).
7. Identification of beneficiaries:
The identification of beneficiaries will be done at the district level by a
Task Force consisting of representatives from KVIC/State KVIB and State
DICs and Banks. The Task force would be headed by the District Magistrate
/ Deputy Commissioner / Collector concerned. The Bankers should be
involved right from the beginning to ensure that bunching of applications is
avoided. However, the applicants, who have already undergone training of at
least 2 weeks under Entrepreneurship Development Programme (EDP) /
Skill Development Programme (SDP) / Entrepreneurship cum Skill
Development Programme (ESDP) or Vocational Training (VT) will be allowed
to submit applications directly to Banks. However, the Banks will refer the
application to the Task Force for its consideration. Exaggeration in the cost
of the project with a view only to availing higher amount of subsidy should
not be allowed. KVIC will devise a score card in consultation with SBI and
RBI, and forward it to the District Level Task Force and other State/District
functionaries. This score board will form the basis for the selection of
beneficiaries. This score card will also be displayed on the websites of KVIC
and Ministry. The selection process should be through a transparent,
objective and fair process and Panchayati Raj Institutions should be involved
in the process of selection (Para 11 (i)(b) of the guidelines refers).
8. Bank Finance
8.1 The Bank will sanction 90% of the project cost in case of General
Category of beneficiary/institution and 95% in case of special category of the
beneficiary/institution, and disburse full amount suitably for setting up of
the project.
8.2 Bank will finance Capital Expenditure in the form of Term Loan and
Working Capital in the form of cash credit. Project can also be financed by
the Bank in the form of Composite Loan consisting of Capital Expenditure
and Working Capital. The amount of Bank Credit will be ranging between
60-75% of the total project cost after deducting 15-35% of margin money
(subsidy) and owner’s contribution of 10% from beneficiaries belonging to
general category and 5% from beneficiaries belonging to special categories.
This scheme will thus require enhanced allocations and sanction of loans
from participating banks. This is expected to be achieved as Reserve Bank of
India (RBI) has already issued guidelines to the Public Sector Banks to
ensure 20 % year to year growth in credit to MSME Sector. SIDBI is also
strengthening its credit operations to micro enterprises so as to cover 50
lakh additional beneficiaries over five years beginning 2006-07, and is
recognized as a participating financial institution under PMEGP besides
other scheduled/ Commercial Banks.
8.3 Though Banks will claim Margin Money (subsidy) on the basis of
projections of Capital Expenditure in the project report and sanction thereof,
Margin Money (subsidy) on the actual availment of Capital Expenditure only
will be retained and excess, if any, will be refunded to KVIC, immediately
after the project is ready for commencement of production.
8.4 Working Capital component should be utilized in such a way that at
one point of stage it touches 100% limit of Cash Credit within three years of
lock in period of Margin Money and not less than 75% utilization of the
sanctioned limit. If it does not touch aforesaid limit, proportionate amount
of the Margin Money (subsidy) is to be recovered by the Bank/Financial
Institution and refunded to the KVIC at the end of the third year.
8.5 Rate of interest and repayment schedule
Normal rate of interest shall be charged. Repayment schedule may
range between 3 to 7 years after an initial moratorium as may be prescribed
by the concerned bank/financial institution. It has been observed that banks
have been routinely insisting on credit guarantee coverage irrespective of the
merits of the proposal. This approach needs to be discouraged.
RBI will issue necessary guidelines to the Banks to accord priority in
sanctioning projects under PMEGP. RBI will also issue suitable guidelines as
to which RRBs and other banks will be excluded from implementing the
9. Village Industry
Any Village Industry including Coir based projects (except those
mentioned in the negative list) located in the rural area which produces any
goods or renders any service with or without the use of power and in which
the fixed capital investment per head of a full time artisan or worker i.e.
Capital Expenditure on workshop/ workshed, machinery and furniture
divided by full time employment created by the project does not exceed Rs. 1
lakh in plain areas and Rs.1.50 lakh in hilly areas.
10. Rural Area
(i) Any area classified as Village as per the revenue record of the
State/Union Territory, irrespective of population.
(ii) It will also include any area even if classified as town, provided its
population does not exceed 20,000 persons.
11. Modalities of the operation of the Scheme
(i) Project proposals will be invited from potential beneficiaries at district
level through press, advertisement, radio and other multi-media by
KVIC,KVIBs and DICs at periodical intervals depending on the target
allotted to that particular district. The scheme will also be advertised
/publicized through the Panchayati Raj Institutions which will also
assist in identification of beneficiaries.
(a) Sponsoring of project by any agency is not mandatory. The beneficiary
can directly approach Bank/Financial Institution along with his/her
project proposal or it can be sponsored by KVIC/ KVIBs /
DIC/Panchayat Karyalayas etc. However, the applications received
directly by the Banks will be referred to the Task Force for its
(b) A Task Force, consisting of the following members, will be set up to
scrutinize the applications received by it.
Dist Magistrate/Deputy Commissioner/Collector - Chairman
Lead Bank Manager - Member
Representative of KVIC/KVIB - Member
Representative of NYKS/SC/ST Corporation - Special Invitee
Representative of MSME-DI, ITI/Polytechnic - Special Invitee
Representatives from Panchayats - 3 members
(To be nominated by Chairman/District
Magistrate/Deputy Commissioner/ Collector
by rotation)
General Manager, DIC or State Director of KVIC -Member Convenor
Note : Task Force may also co-opt representatives of other lending institutions.
(c) The Task Force will scrutinize the applications and based on the
experience, technical qualification, skill, viability of the project etc.,
the task force will shortlist the applications and call for an interview
of the applicants separately for rural and urban areas to assess their
knowledge about the proposed project, aptitude, interest, skill and
entrepreneurship abilities, market available, sincerity to repay and
make the proposed project success. The selected candidates will be
provided project formulation guidance and orientation by KVIC,
KVIBs and DICs who will also assist and guide them in project
formulation and submission to the concerned Bank in the area. The
applicants may also approach any of the other agencies listed in para
5.2 of these guidelines for assistance in this regard.
(d) KVIC will identify the Nodal Banks at State level in consultation with
State Governments and will forward the list to all the implementing
(ii) The release of funds to the implementing agencies will be in the
following manner:-
(a) Government will provide funds under PMEGP to the nodal
implementing agency, i.e. KVIC which will in turn, (within a
period of 15 days of receipt of the money from the Government),
place the margin money (subsidy)funds with the implementing
Banks at the State level in their respective accounts in accordance
with the targets allocated to each implementing agency. CEO,
KVIC will convey the margin money (subsidy) targets allotted to
each State to the Principal Secretaries/Secretaries (Industries)/
Commissioners (Industries) simultaneously. The target among
the Districts in the State will be assigned by the State Level
Bankers Coordination Committee. SLBCC will ensure that targets
are evenly distributed within each district. The State-wise targets
in respect of KVIC/KVIBs will be made available by KVIC to
SLBCC where overall allocation of district-wise targets will be
decided. Any modification of the targets for which KVIC is directly
responsible will be permitted only with the concurrence of the
(b) KVIC will place the margin money (subsidy) amount with the
Banks involved in the implementation of the scheme in
accordance with the targets allocated to the implementing Banks
in the State/ District. DICs, in close coordination with Banks,
will ensure that at least 50 % of the total margin money (subsidy)
allocated to them will be utilized in setting up of projects in rural
(c) KVIC being the single Nodal Agency at the National level, will
coordinate with the identified implementing agencies, i.e., KVIBs,
DICs and others. KVIC will carry out most of the important tasks
envisaged in the forward and backward linkages, including etracking,
web management, publicity, physical verification of
units, organizing EDP training programmes, awareness camps,
workshops and exhibitions and therefore will require to utilize
major share of the allocation under forward and backward
linkages. However, KVIC will ensure that it will reserve and
allocate at least 25 % of the total allocation under Forward and
Backward linkages, under the Scheme to DICs of different
participating States appropriately taking into account the demand
and extent of implementation. This money will be released to
DICs, only after obtaining an undertaking from the State
Government that the funds already provided under the erstwhile
PMRY Scheme’s Training and Pre motivational campaigns have
been fully utilized by the DICs. Any unspent balance available
under the training and contingencies of erstwhile PMRY Scheme
will be utilized for training and relevant expenditure under
PMEGP. DICs will submit monthly utilization report to KVIC in
this regard.
(d) The Task Force, under the chairmanship of District
Magistrate/Deputy Commissioner / Collector will hold quarterly
meeting with the Banks at district level to review the status of the
project proposals. Wherever the projects are rejected,
shortcomings/reasons will be furnished by the concerned Banks
to the implementing agencies concerned and the applicants
concerned will be requested by KVIC/KVIBs / DICs to provide
additional information/documents if required and concerned
representatives of KVIC, KVIBs and DICs, will provide assistance
to the applicants in this process. Since the Bank’s representative
will also be a member of the Task Force, it needs to be ensured
that maximum number of projects, cleared by the Task Force, is
sanctioned by the Banks. Chairman of the District Task Force
will review the performance of Banks and the loan repayment /
recovery status in the quarterly review meetings.
(e) Banks will take their own credit decision on the basis of viability
of each project. No collateral security will be insisted upon by
Banks in line with the guidelines of RBI for projects involving loan
upto Rs. 5 lakh in respect of the projects cleared by the Task
Force. However, they will appraise projects both technically and
economically after ensuring that each project fulfills inter alia the
criteria of
(i) Industry
(ii) Per Capita Investment
(iii) Own Contribution
(iv) Rural Areas (projects sponsored by KVIC/ KVIBs/DICs)
(v) Negative List (Para 29 of the guidelines refers)
It is essential that the applications cleared by the District Task
Force also fulfill these requirements at that stage itself so as to
avoid delays in approval of loans in Banks.
(f) Once the project proposals are received by KVIC, KVIBs, DICs or
Banks, the details of such proposals are to be fed in the web
based application tracking system with a unique registration
number for each beneficiary at the District level by the State
Offices of KVIC/State KVIBs/State DICs to enable the
entrepreneurs to track their application status at any point of
time. Till such time the e-tracking system becomes fully
operational (for which detailed guidelines will be issued by KVIC
separately to all concerned) disaggregated data in respect of
progress of each application, assistance availed by beneficiaries
belonging to special categories (category wise), employment details,
etc., will be maintained by KVIC/KVIBs/DICs and the data will be
reconciled every month with Director (PMEGP) in KVIC. The
status of such reconciliation will be reviewed by the District
Magistrate / Deputy Commissioner / Collector, in the Task Force
meetings and by CEO, KVIC in the review meetings at KVIC.
Separate colour code will be given to application form as well as
applications/claim forms of Margin Money (subsidy) through
KVIC/KVIBs/DICs, so as to help the beneficiaries and the
processing/sanctioning functionaries to identify and monitor the
progress of implementation.
(g) Once the project is sanctioned and before the first installment
of the Bank Finance is released to the beneficiary, Bank will
inform the State/Regional Office of the KVIC/KVIBs/State
DICs, as the case may be, for arranging EDP training (Para
12(i) of the guidelines refers) to the beneficiary, if he/she has
not already undergone such training. If he/she has already
undergone such training of at least 2 weeks duration, either with
the training centre of KVIC/KVIB /State DICs or the institutions
recognized by or under the administrative control of Ministry of
MSME or at any other training centre of repute, such beneficiary
need not undergo further EDP training.
(h) First installment of the loan will be released to the beneficiary
only after completion of EDP training of at least 2 weeks (Para 12
of the guidelines refers) specially designed for the purpose, which
will be organized by KVIC / KVIBs / DICs or the institutions
recognized by or under the administrative control of Ministry of
MSME or at any other training centre of repute. Those who have
already undergone training from the recognized institutions need
not undergo further EDP training.
(i) After the successful completion of EDP training arranged by the
KVIC/KVIBs/State DICs, the beneficiary will deposit with the
bank, the owner’s contribution. Thereafter, the bank will
release first installment of the Bank Finance to the beneficiary.
(j) Projects sanctioned will be declared ineligible for Margin Money
(subsidy) assistance if the EDP training is not completed.
(k) After the release of Bank finance either partly or fully, Bank will
submit Margin Money (subsidy) claim in the prescribed format to
the designated Nodal Branch of the State/Region where KVIC has
placed lump sum deposit of Margin Money (subsidy) in advance in
the Savings Bank Account in the name of KVIC, for release of
Margin Money (subsidy). In the case of projects financed by the
branches of the Regional Rural Banks, the financing branches of
the RRBs will have to submit the Margin Money (subsidy) Claim to
their Head Office, which, in turn, will submit the consolidated
claims to the designated Nodal Branch of their sponsoring Bank.
In the case of projects financed by SIDBI, the guidelines issued by
SIDBI for release of loan/margin money (subsidy) will be followed.
Though the margin money (subsidy) will be released by the
designated Nodal Branch of the Bank, KVIC/State DIC is the
final authority to either accept the project/claim or reject,
based on the parameters of the Scheme. Detailed grounds for
rejections shall be maintained by KVIC/KVIBs/DICs. A separate
system of acknowledging grievances or complaints will be
instituted by KVIC/KVIBs and DICs and a monthly report with
the details of grievances / complaints received and the status /
action taken for their redressal shall be furnished to CEO, KVIC
by KVIBs and DICs. A consolidated report will be forwarded to
the Ministry of MSME every quarter by CEO, KVIC.
(l) Once the Margin Money (subsidy) is released in favour of the
loanee, it should be kept in the Term Deposit Receipt of three
years at branch level in the name of the beneficiary/Institution.
No interest will be paid on the TDR and no interest will be
charged on loan to the corresponding amount of TDR.
(m) Since “Margin Money” (subsidy) is to be provided in the form of
subsidy (Grant), it will be credited to the Borrowers loan account
after three years from the date of first disbursement to the
borrower/institution, by the Bank.
(n) In case the Bank’s advance goes “bad” before the three year
period, due to reasons, beyond the control of the beneficiary, the
Margin Money (subsidy) will be adjusted by the Bank to liquidate
the loan liability of the borrower either in part or full.
(o) In case any recovery is effected subsequently by the Bank from
any source whatsoever, such recovery will be utilized by the Bank
for liquidating their outstanding dues first. Any surplus will be
remitted to KVIC.
(p) Margin Money (subsidy) will be ‘one time assistance’, from
Government. For any enhancement of credit limit or for
expansion/modernization of the project, margin money (subsidy)
assistance is not available.
(q) Margin Money (subsidy) assistance is available only for new
projects sanctioned specifically under the PMEGP. Existing units
are not eligible under the Scheme.
(r) Projects financed jointly i.e. financed from two different sources
(Banks / Financial institutions), are not eligible for Margin Money
(subsidy) assistance.
(s) Bank has to obtain an undertaking from the beneficiary before
the release of Bank Finance that, in the event of objection
(recorded and communicated in writing) by KVIC /KVIB/State
DIC, the beneficiary will refund the Margin Money (subsidy) kept
in the TDR or released to him after three years period.
(t) Banks / KVIC / KVIBs / DICs have to ensure that each
beneficiary prominently displays the following sign-board at the
main entrance of his project site:-
………………………………..(Unit Name)
Financed By ……………… (Bank), District Name
Prime Minister’s Employment Generation
Programme (PMEGP)
Khadi and Village Industries Commission
(Ministry of MSME, Govt. of India)
(u) Margin Money (subsidy) Claim will be submitted by the Financing
Branch of the Bank to the designated Nodal Branch at the earliest
possible time.
12. Entrepreneurship Development Programme (EDP)
12.1 The objective of EDP is to provide orientation and awareness
pertaining to various managerial and operational functions like finance,
production, marketing, enterprise management, banking formalities,
bookkeeping, etc. The duration for EDP under REGP was only 3 days,
whereas, under PMRY it was 10 days. During various meetings, discussions
and recommendations of Department Related Parliamentary Standing
Committee for Industry (DRPSCI) it was felt that 3 days were not adequate
for providing this inputs effectively and, hence two to three weeks period
has been provided under PMEGP which will include interaction with
successful rural entrepreneur, banks as well as orientation through field
visits. The EDP will be conducted through KVIC, KVIB Training Centers as
well as Accredited Training Centers run by Central Government, NSIC, the
three national level Entrepreneurship Development Institutes (EDIs), i.e.,
NIESBUD, NIMSME and IIE, and their partner institutions under the
administrative control of Ministry of MSME, State Governments, Banks,
Rural Development and Self Employment Training Institutes (RUDSETI)
reputed NGOs, and other organizations / institutions, identified by the
Government from time to time. EDP will be mandatory for all the PMEGP
beneficiaries. However, the beneficiaries who have undergone EDP earlier of
duration not less than two weeks through KVIC/KVIB or reputed training
centers will be exempted from undergoing fresh EDP. The training centres /
institutes will be identified by KVIC and extensive publicity will be provided
about the training centres / institutes, content of courses available,
duration, etc. by circulating the same to all the Implementing Agencies.
12.2. Budget for EDP Charges to the Training Centers
An amount of Rs. 2500/- to Rs.4000/- per trainee for a period of two to
three weeks towards course material, honorarium to guest speakers, lodging,
boarding expenses, etc. is admissible under the Scheme. KVIC will
reimburse the expenditure to the training centres / institutes chosen for the
purpose, in accordance with the procedures to be separately devised by it
and circulated to KVIBs and DICs.
13. Physical verification of PMEGP Units
100% physical verification of the actual establishment and working
status of each of the units, set up under PMEGP, including those set up
through KVIBs and DICs, will be done by KVIC, through the agencies of
State Government and/or, if necessary by outsourcing the work to
professional institutes having expertise in this area, following the prescribed
procedures as per General Financial Rules (GFR) of Government of India.
Banks, DICs and KVIBs will coordinate and assist KVIC in ensuring 100 %
physical verification. A suitable proforma will be designed by KVIC for such
physical verification of units. Quarterly reports, in the prescribed format will
be submitted by KVIC to the Ministry of MSME.
14. Awareness Camps
14.1 KVIC and State DICs will organize awareness camps, in close
coordination with each other and KVIBs, throughout the country to
popularize PMEGP and to educate potential beneficiaries in rural, semi rural
and urban areas about the Scheme. The awareness camps will involve
participation from the unemployed men and women with special focus on
special category, i.e., SC, ST, OBC, Physically challenged, Ex-servicemen,
Minorities, Women, etc. The requisite information/details in this regard will
be obtained by KVIC/KVIBs/DICs from State level organizations like SC/ST
Corporations, AWWA, NYKS, reputed NGOs and Employment exchanges.
There will be two camps permissible for a district, one by KVIC in
coordination with concerned KVIB and another by DIC. KVIC and DIC
should preferably consider organizing these camps jointly for a specific
district. A Committee consisting of Lead Bank, KVIC/KVIB/DIC and
Principal, Multi Disciplinary Training Centres (MDTC) of KVIC will shortlist
the beneficiaries and send them for training as well as RICS for project
formulation and to Bank for project sanction. The amount specified can be
spent on publicity, arrangement and other necessary expenses for organizing
such camps, which will be communicated by KVIC in their guidelines
14.2 Mandatory activities to be undertaken in the awareness camps:
(i) Publicity through banners, posters, hoardings and press
advertisements in local newspapers.
(ii) Presentation on the scheme by KVIC/KVIB/DIC officials.
(iii) Presentation by Lead Bank of the area.
(iv) Presentation by successful PMEGP/REGP Entrepreneurs.
(v) Distribution of sanction letters to PMEGP entrepreneurs who have
been sanctioned the project by Bank.
(vi) Press conference
(vii) Collection of data (in the prescribed format) from the potential
beneficiaries, which will include information like profile of
beneficiaries, skills possessed, background and qualifications,
experience, project interested in, etc. For ascertaining the training
(as described in para 12 of the guidelines) a committee consisting of
representatives of Lead Bank, KVIC, KVIB, DIC and Principal,
MDTC will shortlist the beneficiaries and send them for orientation
and training. They will also be sent to RICS and Banks for project
formulation and project sanction, respectively.
viii) A Shelf of Projects for consideration under PMEGP, prepared by
KVIC has already been circulated by KVIC/Ministry to some of the
prominent State Industries Secretaries and Banks including State
Bank of India, Central Bank of India, Canara Bank, Allahabad
Bank and Union Bank of India. For any further inclusion of
projects in the shelf already prepared, KVIBs and DICs shall
forward the details of such projects to KVIC. KVIC will in turn,
expand the Shelf of Projects, in due course, in consultation with
Banks, KVIBs and DICs, by utilizing the provisions in ‘Training and
Orientation’ under forward and backward linkages.
(ix) Marketing Support
(a) Marketing support for the products, produced by the units
under PMEGP may be provided through KVIC’s Marketing Sales
outlets, as far as possible. KVIC will reserve the right to provide
such a support based on quality, pricing and other parameters
to be separately circulated by KVIC to KVIBs/DICs.
(b) Besides the above, Exhibitions, Workshops at District/State
Zonal/National and International levels, Buyer-Seller Meets,
etc., will be arranged for the benefit of PMEGP beneficiaries by
15. Workshops
a) Objectives
(i) To brief potential beneficiaries about benefits under the
PMEGP Scheme and other KVIC Schemes like PRODIP, SFURTI,
(ii) To create a Data Bank of PMEGP units regarding products
produced, services /business activity details, production, supply
capacity, present marketing set up employment and project cost,
(iii) To interact with PMEGP entrepreneurs to obtain feed back
about the units, their problems, support required, success
stories etc.
(iv) To involve experts in marketing and export to support PMEGP
units in these areas.
Note: (i). It should be ensured that a minimum number of 200 prospective entrepreneurs
participate in the Workshop.
(ii) One State level Workshop for KVIC and one for DIC are permissible.
(iii) KVIC and DIC may consider organizing these Workshops jointly in a specific State
(iv) One representative of KVIC and DIC will participate in each Workshop.
b) The State Level Workshop will include the following activities:
(i) Presentation of PMEGP Scenario of the State.
(ii) Presentation of views of Banks on PMEGP by senior officials of
lead Bank in the State.
(iii) Sharing of experience and success stories by PMEGP/REGP
entrepreneurs, providing special emphasis to entrepreneurs
belonging to special categories.
(iv) Briefing about support Schemes of KVIC like Product
Development, Design Intervention and Packaging (PRODIP), Rural
Industrial Service Centres (RISC), Scheme of Fund for
Regeneration of Traditional Industries (SFURTI), Micro and Small
Enterprises Cluster Development Programme (MSECDP), Credit
Linked Capital Subsidy Scheme for Technology Upgradation
(CLCS, Credit Guarantee Fund Trust for Micro and Small
Enterprises (CGTSME), etc.
(v) Briefing about support schemes related to cluster and marketing
(vi) Utilizing the services of NYKS, MWCD, AWWA for involving the
rural youth, weaker sections, women, minorities, ex-servicemen,
physically challenged, war widows in PMEGP.
(vii) Presentation on Domestic and Export Market Potential available,
by Marketing experts.
(viii) Open house discussion with PMEGP entrepreneurs on
implementation issues, constraints encountered, further supports
required, etc., and arriving at possible solutions.
(ix) Data collection of PMEGP entrepreneurs in the prescribed
(x) Arranging the exhibition cum sale of PMEGP products.
(xi) Formation of PMEGP Federation.
(xii) Press conference.
(c) KVIC will be co ordinating these workshops and will get the annual
calendar of workshops approved by the Ministry, in advance.
16. Exhibitions
PMEGP Exhibitions will be organized by KVIC at National, Zonal, State
and District Levels and special exhibitions for North Eastern Zone in co
ordination with KVIBs and DICs, to promote products produced by PMEGP
units. KVIC will get the annual calendar of exhibitions to be conducted at
various parts of the country, approved by the Ministry in advance. Separate
pavilions will be provided for display of products produced by units set up
through KVIBs/DICs. Separate logos and nomenclature for rural
entrepreneurs and urban entrepreneurs will be worked out by
KVIC/KVIBs/DICs. For example, for rural PMEGP exhibitions nomenclatures
like GRAMEXPO, GRAMUSTAV, GRAM MELA, etc., may be used. KVIC, in
coordination with KVIBs and DICs will be organizing one district level
exhibition (per district), one State level exhibition and one Zonal level
exhibition, annually.
17. Participation in International Exhibitions
Participation by PMEGP units is envisaged in International Exhibitions
like India International Trade Fair (IITF), etc., for developing their export
market. KVIC will organize participation in the international exhibitions in
coordination with KVIBs and DICs and will seek the list of willing units from
KVIBs and DICs. KVIC will ensure that the units desirous of participating in
the fair, set up through KVIBs and DICs are considered judiciously on the
basis of merit, variety and quality of the products. A maximum amount of
Rs. 20 lakh will be provided to meet expenditure on rental charges for
pavilion, fabrication of stalls and towards display, demonstration etc. KVIC
may meet the rest of the expenditure out of its regular marketing budget
18. Bankers Review Meetings
PMEGP is a bank driven scheme and the final sanction of project and
release of loan is done at the level of concerned Bank. It is therefore
imperative that KVIC, KVIBs and DICs interact regularly with the higher
officials of Bankers at District/ State/National level to ensure that the bottle
necks, if any, in implementation, are resolved, outcomes are effectively
achieved and targets are met. Bankers Review Meeting at following levels
shall be organized as below:
(i) Lead District Managers Meet (LDM): This will be organized by State
Office and Divisional Office of KVIC jointly with KVIB and DIC. The
focus of the meeting will be to inform and educate the bank officials at
LDM level about PMEGP and regularly monitor and review the
implementation of the scheme. The meeting will be held on quarterly
(ii) Zonal review meeting: To review and monitor the PMEGP scheme,
zonal review will be conducted quarterly by KVIC in 6 zones where
representatives of KVIC, KVIB and DIC will participate in the review.
Concerned Bank officers will also be invited.
(iii) Top level Bankers Meeting: KVIC will organize the Top Level Bankers
meeting half yearly (in June and December) so that proper monitoring
can be done at the beginning and towards the end of the financial year.
CMDs/Senior Executives of nationalized Banks, representatives from
Ministry of MSME, State DICs and KVIBs will participate in the National
level Bankers meeting which will be chaired by CEO, KVIC. All the
States/UTs will be invited in two groups and KVIC will ensure that
around half of the States/UTs’ representatives (of KVIBs and DICs)
participate in each of these half yearly review meetings. The meeting
will focus on reviewing the targets and will examine the issues related to
policy decisions relating to banks for the implementation of PMEGP.
19. Orientation and Training under PMEGP
The staff and officers of KVIC, KVIB, DIC and concerned
agencies have to be sensitized on the operational modalities of PMEGP
which can be imparted in the ‘one day training workshops’ to be conducted
throughout the country at State / District levels by KVIC (in coordination
with KVIBs) and DICs. 40 such programmes per year will be organized by
KVIC and DICs (each). KVIC and DICs may organize such training
workshops jointly, wherever feasible, on the basis of guidelines to be issued
by KVIC separately, for this purpose.
20. TA/DA of Staff and Officers
The officers of KVIC, KVIBs and DICs will carry out relevant field visits
and monitoring activities of PMEGP. A provision of Rs. 1 crore per year is
proposed towards TA/DA of staff and officers for monitoring and reviewing
PMEGP, which includes administrative expenses like stationery,
documentation, contingencies, etc., and around 40% of this amount can be
earmarked for DICs. KVIC will issue separate guidelines incorporating the
detailed modalities of certification of the expenditure, laying down the norms
for such field visits so as to optimally utilize the assistance and ensure
economy in expenditure.
21. Publicity and promotional activities
21.1 PMEGP should be popularized through aggressive publicity campaigns
including posters, banners, hoardings, radio jingles, television messages,
advertisements in local papers, press conferences, also involving VVIPs and
distinguished guests in major events of PMEGP.
21.2 Release of advertisement/publicity for PMEGP.
Advertisement will be issued /published in English, Hindi and local
language newspapers. For District level events, quarter page advertisement
will be released and for State level events, half a page advertisement will be
Keeping in view the significance of publicity and promotional activities
required to be undertaken for PMEGP, an amount of Rs.16 Crore will be
allocated during the four years period. 25 % of funds will be earmarked by
KVIC to DICs for release of advertisement/ publicity of the Scheme, in
accordance with the guidelines framed by KVIC while ensuring maximum
coordination and synergy of efforts with KVIBs and DICs.
22. MIS Package, Application Tracking System, E-Portal and other
supporting packages
22.1 E-governance is a vital requirement for effective monitoring and
reviewing of the scheme. In addition, data base of existing REGP
beneficiaries as well as PMRY have also to be documented. A separate
PMEGP website will be constructed by KVIC, including all the relevant
linkages with Ministry of MSME, State KVIBs, DICs, NIC and Banks,
providing all the necessary information. Application tracking system will also
be introduced by KVIC in coordination with KVIBs / DICs for PMEGP
beneficiaries. In addition Rural Industrial Consultancy Services (RIC’s
software package for project preparation of KVIC will be extended to all
training centers in the country for assisting potential beneficiaries to prepare
project under PMEGP. A separate provision is available under forwardbackward
linkages for the purposes for use by KVIC.
22.2. KVIC will issue further guidelines in regard to utilization of funds
for the purposes outlined in the backward and forward linkages by
ensuring proper documentation etc., from KVIBs and DICs. Proper
account of the expenditure in this regard will be maintained by
State/KVIBs/DICs and monitored by KVIC regularly.
23. Proposed Estimated Targets under PMEGP
23.1 The following estimated targets have been proposed under PMEGP
during the four years, i.e., from 2008-09 to 2011-12.
Year Employment
( in Nos)
Margin Money
2008-09 616667 740.00
2009-10 740000 888.00
2010-11 962000 1154.40
2011-12 1418833 1702.60
Total 3737500 4485.00
Note: 1. An additional amount of Rs.250 crore has been earmarked for backward and
forward linkages.
2. To begin with, the targets would be distributed between KVIC (including State
KVIBs) and State DICs in the ratio of 60:40 to ensure comparatively greater
emphasis to micro enterprises in rural areas. The margin money subsidy
would also be allocated in the same ratio. DICs will ensure that at least 50%
of the amount allocated to them will be utilized in the rural areas.
3. The annual allocation of targets would be issued State-wise to the implementing
23.2 Criteria for distribution of targets under PMEGP
The following are the broad suggested criteria for distribution of statewise
(i) Extent of backwardness of State;
(ii) Extent of unemployment;
(iii) Extent of fulfillment of targets under PMRY and REGP in
(iv) Extent of recovery of loans under PMRY and REGP in 2007-
(v) Population of State/Union Territory; and
(vi) Availability of traditional skills and raw material.
23.3 KVIC will assign targets to State KVIC Directorates/ KVIBs and State
Governments. Target at District levels will be decided by State Level Bankers
Coordination Committee. SLBCC will ensure that targets are evenly
distributed within each district. The State-wise targets in respect of
KVIC/KVIBs will be made available by KVIC to SLBCC where overall
allocation of district-wise targets will be decided. Any modification of the
targets for which KVIC is directly responsible will be permitted only with the
concurrence of the Ministry. KVIC will identify the Nodal Bank Branches in
consultation with State Governments and place the Margin Money (subsidy)
with these branches both for rural and urban areas. For assigning the
targets of subsidy and other parameters (number of units, employment
opportunities, etc.) to KVIC Directorates / KVIBs, KVIC will adopt the criteria
of rural population of the State, backwardness of the State (based on 250
backward districts identified by Planning Commission) and past performance
of the State under REGP Scheme for deciding the targets as per weightages
given below. Similarly, for assigning the targets to DICs, KVIC will adopt the
criteria of backwardness of the State (based on 250 backward districts
identified by Planning Commission), urban unemployment level (as reflected
in the Planning Commission’s report (2002) on ‘Special Group on targeting
ten million employment opportunities per year’ and rural population of the
State. From the second year (i.e., 2009-10) onwards, the performance of
PMEGP during the previous year(s) will also be given appropriate weightage,
for deciding the targets. The approximate weightages to be assigned for
determining the targets to the implementing agencies are given below.
Weightage for determining Criteria targets
1. Rural Population of the State 40 % 30 %
2. Backwardness of the State 30 % 40 %
3. Urban Unemployment level - 30 %
4. Past performance of REGP 30 % -
24. Rehabilitation of Sick Units
Sick units under PMEGP for their rehabilitation will be linked with
RBI’s Guidelines for rehabilitation of sick small scale industrial units issued
to all Scheduled Commercial Banks vide their letter
RPCD.No.PLNFS.BC.57/06.04.01/2001-2002 dated 16th January, 2002.
25. Registration
Registration with the KVIC/KVIBs/State DICs under the Scheme is
voluntary. No registration fee will be charged from the beneficiaries and the
funds available under Forward and Backward linkage will be utilized to meet
expenses on documentation cost, etc.
Beneficiary will submit quarterly report about production, sales,
employment, wages paid etc. to the State/Regional Director of the
KVIC/KVIB/State DIC, and KVIC will in turn analyze and submit a
consolidated report to the Ministry of MSME, every six months.
26. Role of Private Sector (Scheduled, Commercial / Co-operative)
Banks in the implementation of PMEGP
The Scheme will also be implemented through the Private Sector
Scheduled Commercial Banks/Co-operative Banks on selective basis, after
verification of intending Banks’ last 3 years’ Balance Sheet and ascertaining
quantum of lending portfolio. Margin Money (subsidy) portion will be paid
on actual reimbursement basis to the Banks by KVIC.
27. Monitoring and evaluation of PMEGP
27.1 Role of Ministry of MSME
Ministry of MSME will be the controlling and monitoring agency for
implementation of the scheme. It will allocate target, sanction and release
required funds to KVIC. Quarterly review meeting will be held in the Ministry
on the performance of PMEGP. CEO, KVIC, Principal Secretaries /
Commissioners (Industries) responsible for implementation of the Scheme in
States through DICs, Representatives of State KVIBs and Senior officials of
Banks will attend the meeting.
27.2 Role of KVIC
KVIC will be the single Nodal Implementing Agency of the Scheme at
the National level. CEO, KVIC will review the performance with State KVIBs,
DICs and Banks every month and submit a monthly performance report to
the Ministry. The report will include the component wise details of
beneficiaries indicating the amount of the Margin Money (subsidy) allotted,
employment generated and the projects set up. KVIC will ensure that the
margin money (subsidy) is utilized as per the sub component plans approved
for SC, ST, Women, etc. The targets and achievement will also be monitored
at the Zonal, State and District levels by the Dy.CEOs, Directors of KVIC and
the Commissioner /Secretary of Industries (DIC), of the States concerned.
The existing REGP units will continue to be monitored by the KVIC as
hitherto fore, and separate monthly report submitted directly to Ministry of
27.3 Role of State Governments / Union Territories
The Scheme will be reviewed half yearly by Chief Secretary of the
State. Representatives KVIC, Ministry of MSME, State Director (KVIC) CEO,
KVIB, Secretary / Commissioner (Industries) of the State, Senior Officials of
the Banks and other officials concerned will attend the meeting. State
Governments {Commissioners / Secretaries (Industries)} will forward their
monthly reports to KVIC, specifying the component wise details of
beneficiaries indicating the amount of the Margin Money (subsidy) allotted,
employment generated and the projects set up, which will be analyzed,
compiled and consolidated by KVIC and a comprehensive report forwarded to
Ministry every month. The existing PMRY units will continue to be
monitored by the State DICs, as hitherto fore, and report submitted directly
to Ministry of MSME.
28. Evaluation of the Scheme
A comprehensive, independent and rigorous evaluation of the scheme
will be got done after two years of its implementation. Based on the findings
of the evaluation study the scheme would be reviewed.
29. Negative List of Activities
The following list of activities will not be permitted under PMEGP for
setting up of micro enterprises/ projects /units.
a) Any industry/business connected with Meat(slaughtered),i.e.
processing, canning and/or serving items made of it as food,
production/manufacturing or sale of intoxicant items like Beedi/Pan/
Cigar/Cigarette etc., any Hotel or Dhaba or sales outlet serving liquor,
preparation/producing tobacco as raw materials, tapping of toddy for sale.
b) Any industry/business connected with cultivation of crops/ plantation
like Tea, Coffee, Rubber etc. sericulture (Cocoon rearing), Horticulture,
Floriculture, Animal Husbandry like Pisciculture, Piggery, Poultry, Harvester
machines etc.
c) Manufacturing of Polythene carry bags of less than 20 microns
thickness and manufacture of carry bags or containers made of recycled
plastic for storing, carrying, dispensing or packaging of food stuff and any
other item which causes environmental problems.
d) Industries such as processing of Pashmina Wool and such other
products like hand spinning and hand weaving, taking advantage of Khadi
Programme under the purview of Certification Rules and availing sales
e) Rural Transport (Except Auto Rickshaw in Andaman & Nicobar
Islands, House Boat, Shikara & Tourist Boats in J&K and Cycle Rickshaw).
Preference for sponsoring agency of the project to Bank : (mark )
Details in blocks should be entered in CAPITAL LETTERS only
1. Name of the applicant/ Institution Name
3. Sex Male Female
4.Father's name /Spouse’s Name/ Contact Person Name (if Institution):
5. Communication Address:
Email: Contact No
6. Address of proposed location of unit : Rural Urban
7. Name of the preferred Bank Name & Address in the area for Project sanction
Bank Name:
Branch Code:
8. Qualification
Academic Technical
2. Date of Birth
9. Whether Entrepreneur Development Programme (EDP)
(at least 2 weeks) undergone: (mark )
Yes No
Period of training
Name & Address of Training Institute
From To
Certificate Issue
10. Whether the applicant belongs to (mark )
Minority Hill Boarder Area General
11.Whether the project for
(mark )
12. Name of the project / business activity proposed:
13. Amount of loan required (in Rs.)
Capital Building Expenditure Loan
Work shed,
Building etc
Machinery &
. Pre
operative Cost
credit Limit
14. Details of earlier or current Loan/grant and subsidy availed from
Central/state Govt. Scheme/or any other similar scheme.
Activity of the Project with
Amount( in Rs.) Year of Sanction
I certify that all information furnished by me is true; and that I and any of my
dependent have not borrowed any money under Subsidy Linked Scheme from
any central/State Government or bank for establishing any such project.
Date : Signature of the applicant
• Own contribution must be invested 5% for SC/ST/OBC/PHC/woman/ Exserviceman/
North East Reason/Hill Boarder Area and 10% for General
• Total Project Cost should not exceed 25 lakhs for Manufacturing unit and 10 lakhs
for Business/service unit.
• Applicant will not be entitled for additional Margin Money(Subsidy) in case of
Own Contribution over and above the prescribed limit.
• VIIIth pass for Manufacturing Unit above Rs.10 lakhs project cost and under
Service Sector above Rs.5 lakhs
• Application should be submitted complete in all respect along with attested
copies of the following documents:
1. Certificate of qualification-academic and technical (if project cost above 5 lakhs
under business/service industry or above 10 lakhs under Manufacturing industry)
2. Relevant Certificate for SC/ST/OBC/Minority/Ex-Servicemen/PHC
3. if Entrepreneur Development programme(EDP) training undergone (at least for two
weeks) then submit photocopy of the certificate
For Official Use only (Rejected/ to be placed before District Task force committee)
Reasons (if rejected):
Place: Signature, Name and Designation of Officer
Visibility: Everyone
Posted: Friday September 26, 2008, 8:28 pm
Tags: pmegp [add/edit tags]

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Past Member (0)
Monday September 29, 2008, 1:28 am
Dear Shri. Naresh Kadyan,
Thanks for your mail requesting my message. I am really impressed by your concern about environment. Though Wild Animal Trade is anyway prohibited under WPA and banks will not normally sponsor any such project, we will also try to ensure the same. I will convey the same for appropriate action. Polythene 40 microns is also a good suggestion, but we may still consider banning the bag manufacturing. This can be done through a separate notice and I will try to initiate action in this regard.
And I convey my sincere thanks for your seeking my message for the pamphlet. But, it may not be appropriate to have my message. You may consider having State Government's Secretary / Commissioner (Industries) or even State KVIC Director's message. While I sincerely appreciate your intention, I regret that I may not fit into the task. I will be looking forward for any other assistance from my side.
Wishing you all the best on your efforts,
With regards,
S. Narayanan

Naresh Kadian (1203)
Tuesday September 30, 2008, 9:35 pm
Why Naresh Kadyan previous account deleted ? Explain care2......

Past Member (0)
Saturday December 27, 2008, 5:25 am
can i get to see any moddel project report for pottery and ceramics
if the place is in green zone can we still get the lone

sandeep manchekar

Sathish S. (0)
Tuesday April 27, 2010, 7:19 am

Prabhat K. (0)
Tuesday December 21, 2010, 10:58 am
Respected Kadyan,
We are small group of senior bank officials, having 30 years experience, in-depth knowledge of SME Financing & Balance Sheets. There are many Govt. schemes like PMEGP, CLCSS, Food Processing, and CGTMSE (for availing collateral free loan) where sizeable Govt. subsidy is available for SME sector, mainly for manufacturing, preservation and service oriented activities. We provide paper based support to entrepreneur who wants to avail Bank loan and get the Govt. Subsidy smoothly.

Every entrepreneur/person desirous to avail Bank loan need to submit Bank’s prescribed Application, Project Report and Balance Sheet detailing the financial analysis. We provide complete Application, Project Report, Balance Sheet, Financial Analysis, Appraisal, Subsidy Claim Application, CGTMSE coverage Application etc. with various supporting papers. This enables to avail bank loan smoothly, appraise the bank loan smoothly, get subsidy smoothly, and get coverage of CGTMSE smoothly.

For all these, our one time charge is 1% of the Project Cost. Entrepreneur can deposit the amount in our account and get 1st stages papers/documents by mail. It can be printed at any internet café or anywhere at nominal cost say within Rs. 100/-. We keep close contact over phone.

Purpose of providing consultancy: Suppose someone wants to avail a PMEGP (Prime Ministers Employment Generation Programme) loan. In PMEGP maximum Project Cost is Rs. 25 lacs and maximum Subsidy is Rs. 8.75 lacs. As per the system, the entrepreneur require to submit Govt. prescribed PMEGP Application alongwith Project Report to DIC (District Industries Centre). The DIC place it before Task Force Committee (TFC), headed by DC/DM. TFC invites entrepreneur for interview. After formal interview, they select it and forward it to Bank. Suppose, one has submitted Rs. 15 lacs Project Report and TFC recommends for only Rs. 12 lacs to the bank. Again, Bank has to take own credit decision/ assessment. Bank can enhance or reduce the quantum of loan depending upon the viability, feasibility of the project. Say, Bank assess loan for Rs. 10 lacs only. In that case entrepreneur should submit fresh Project Report for Rs. 10 lacs to get the subsidy smoothly at the later date. Because when Subsidy is claimed by financing branch from nodal branch, various parameters are adjudged on the basis of Project Report & Project cost like Margin, employment, per capita investment etc. The nodal branch has to submit PMEGP Claim Application, Project Report and other supporting papers documents to KVIC after release of subsidy.

To get rid of the above bottlenecks, we provide complete package for availing Bank Loan to Subsidy. Following papers/documents are being provided in two stages through mail against the one time payment of 1% of the Project Cost. Project cost does not include cost of land and existing building/workshed.


i) Project report – (with all financial analysis and 5 Yrs projected balance sheet)
ii) Application – Meant for submitting to DIC.
iii) Bank’s prescribed Application, duly complete in all respect.
iv) Bank’s Appraisal, duly complete in all respect with a view to support the Appraising Official of the Bank.
(Entrepreneur has to deposit 60% of our fee to get all above papers, i.e. 60% of 1% of the Project Cost)


v) Revised Project Report – in case Bank changes quantum of finance.
vi) Revised Bank’s prescribed Application, duly complete in all respect.
vii) Revised Bank’s Appraisal, duly complete in all respect with a view to support the Appraising Official of the Bank.
viii) PMEGP Claim Application, duly complete with all guidance of enclosures (it requires after disbursement of loan)
ix) CGTMSE Application, duly complete (where loan sanctioned without collateral security)
(Entrepreneur has to deposit 40% of our fee to get all above papers, i.e. 40% of 1% of the Project Cost)

Similarly, we provide stage-wise support for availing loan under CLCSS Scheme, Subsidy Scheme of Food Processing etc. Please note that we do not guarantee for sanction of a loan, it depends upon entrepreneur to convince and satisfy his banker. However, we can modify reports without any charge in case of need. We also provide free counseling over phone or mail to entrepreneur. We provide complete details of the scheme through mail free of charge. We can offer 40% of our remuneration to those persons who generate job for us. In such case entire 60% of our remuneration need to be deposited in 1st stage.

Since we are bankers, we can not communicate during day time. Preferable contact time is between 6 PM to 11 PM. We collect details over phone or mail for preparing Application, Project Report, and Balance Sheet etc. These can be delivered within 3 days. Our contact numbers are 9304770255, 9006639790, email

Sumit J. (0)
Tuesday June 14, 2011, 4:11 am
Sir, I am interested in setting up a RO project and will be thankful to you if i can get a sample project report to be submitted before PMEGP for subsidy.
My e-mail-id is



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(0 comments  |  discussions ) — hello world more
Blog: Garcinia Cambogia Reviews From Actual People Garcinia Pure Extract Is A Huge Success February 20 by Dany M.
(0 comments  |  0 discussions ) — \\nGarcinia Cambogia Reviews From Actual People Garcinia Pure Extract Is A Huge Success February 20\\r\\nGarcinia Cambogia System The Dr. Oz Lose Weight Quick Process Without Having Side Effects\\r\\nHe went on to say, “At any time I see a researcher... more
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