Frequently Asked Questions(FAQ)
1 : What is maximum project cost allowed under PMEGP?
A : Rs.50.00 lakhs for manufacturing unit and Rs.20.00 lakhs for Service Unit.
2 : Whether cost of land can be included in the project cost?
A : No.
3 : How much Margin Money (Govt. Subsidy) is admissible?
4 : What are the component of project cost?
A : Capital Expenditure(Term Loan) Loan, working capital and 10% of project cost as own
contribution in case of General category and 5% of project cost in case of weaker section.
5 : Who are the beneficiaries?
A : Individual Entrepreneurs Only.
6 : Which are the financial agencies?
A : All Public Sector Banks ,Regional Rural Banks(RRB), Co-operative Banks,SIDBI and Private
Scheduled Commercial Banks regulated by RBI and approved by SLMC of concern State.
7: Where does the beneficiary has to submit his/her application/ Project?
A : Beneficiary can submit his/her application/Project online on kvic website kviconline.gov.in/pmegpeportal. List of office addresses of KVIC/KVIB/DIC/COIR are available at our website.
8 : What is the Employment Criteria ?
A : Any Village Industry (except those mentioned in the negative list) located in the Rural/Urban 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 artisans or worker does not exceed Rs.3.00 lakh in plain area and Rs.4.50 lakhs in hilly areas and for A & N Island and Lakshadweep Rs.4.5 Lakhs.
9: What is rural area ?
A : Any area classified as Village as per the revenue record of the State/UT, irrespective of the population. All the areas, irrespective of Population, following unde Panchayat Raj Institutions.
10 : What is Age limit ?
A : Any adult beneficiary above 18 years is eligible for assistance under PMEGP.
11 : What are the main criteria of project?
A : It should fulfill the criteria of rural area (for Rural Area project), per capita investment, own contribution, negative list and the unit should be new one.
12 : Whether EDP training is compulsory?
A : Before MM Claim through PMEGP eportal ,EDP training of 10 working days for Project cost More than 5.00 lakhs and 5 Working days training for upto Project Cost 5.00 lakhs by the beneficiary is compulsory. EDP Training is not Mandatory for Projects Upto Rs.2.00 Lakhs.
13 : Whether collateral security is mandatory?
A : As per RBI guidelines the project costing upto Rs.10.00 lakhs under PMEGP loans are free from collateral security. The CGTMSE provided collateral guarantee for the project upto Rs. 2.00 Crore.
14 : What is the helpline for the beneficiary in preparation of the project ?
A : Model projects are available in PMEGP ePortal.
15 : Whether an entrepreneur can submit more then one project ?
A : No.
16 : What is the definition of family ?
A : Self and Spouse.
17 : Whether Unit can be set up in urban Area.?
A : Yes through All Implementing Agencies.
18 : Whether existing unit can avail funds under PMEGP ?
A : No, only new unit are eligible except for 2nd Loan for existing (REGP/PMEGP/MUDRA) units .
19: Whether model projects are available with KVIC.
A : yes, Industry wise model projects are available at kvic.org.in.
20 : where training centers are available to undertake EDP?
A : List of EDP training centers including 582 training center of RSETI/RUDSETIS are available at our website kvic.org.in.
21 : What is lock in period for Govt. Subsidy?
A : 3 years.
22 : Can project be financed jointly from two different sources (Bank/Financial Institutions)?
A : No, it is not eligible.
23 : How much own contribution is to be deposited?
Categories of beneficiaries under PMEGP Own contribution (of project cost) General Category 10% Special (including SC / ST / OBC /Minorities/Women/Transgender, Ex-servicemen, Physically handicapped, NER, Hill and Border areas etc. 05%
24 :Which Activity (Industry) Not allowed under PMEGP Scheme ( Negative List)?
A : The Following list of activities will not be permitted under PMEGP for setting up of micro enterprises/ projects/ units.
i. 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/Paan/Cigar/Cigarette etc. Hotels or Dhaba or Sales outlet serving liquor, preparation/producing tobacco as raw materials, tapping of toddy for sale will not be allowed.
(a) However, serving/selling non-vegetarian food at Hotels/Dhabas will be allowed.
ii. Activities prohibited by Local Government/Authorities keeping in view environment or Socio-economic factors will not be allowed.
iii. Manufacturing of polythene carry bags of less than 75 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. Thickness of polythene carry bags shall be governed by the Ministry of Environment, Forest and Climate changes notification for plastic waste management rules and amendments from time to time.
iv. Any Industry/Business connected with cultivation of crops/plantation like Tea, Coffee, Rubber etc. sericulture (Cocoon rearing), Horticulture, Floriculture, Animal Husbandry will not be allowed.
(a) However, value addition under these will be allowed under PMEGP. Off Farm/Farm Linked activities in connection with sericulture, horticulture, floriculture etc. will be allowed.
Following industry/Business connected with Animal Husbandry will also allowed:
(a) Dairy-Milk and other dairy products through primarily Cows but also sheep, goats, camels, buffaloes, horses, and donkeys.
(b) Poultry-Poultry, kept form their eggs and for their meat, include chickens, turkeys, geese and ducks.
(c) Aquaculture-It is the farming of aquatic organisms including fish, molluscs, crustaceans and aquatic plants
(d) Insects -Including Bees, Sericulture, etc.
(As a special case piggery, which is a major source of livelihood in NER may also be allowed in NER states only).
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