PMEGP to help people start their own business!
India has seen a big change in the last 16 years. Prime Minister's Employment Generation Programme (PMEGP) has opened new avenues of employment in villages. Under this scheme, small businesses started in rural areas that employed more people than in cities. However, there were also allegations that the government did not release subsidies to the beneficiaries on time.
Every small business started in villages has employed an average of 8.19 people. This figure is higher than in cities, where 8.07 jobs have been created per unit. The PMEGP scheme has created 80.52 lakh jobs so far, out of which 64.55 lakh jobs have been created only in villages. Out of the total 9.86 lakh businesses started under the scheme, 79.89% are in villages. That is, about 80% of the businesses have been started in rural areas. The remaining 20.11% have been started in urban areas. From 2008-09 to 2023-24, employment generated under PMEGP has increased by an average of 8.67% every year.
What is Prime Ministers Employment Generation Programme?
The government of india had launched a scheme called Prime Ministers Employment Generation Programme (PMEGP) to create new employment opportunities. This scheme has been created by combining two old schemes running till 31 march 2008 - 'Pradhan Mantri Rojgar Yojana' (PMRY) and 'Rural Employment Generation Program' (REGP).
The purpose of PMEGP scheme is that people can start their own work and get a job. This gives unemployed youth and artisans living in villages and cities an opportunity to work from home.
Recently, in response to a question asked in the Lok Sabha, the government has said that earlier approval of up to Rs 25 lakh was given to start a business, which has now been increased to Rs 50 lakh. If your business is doing well, you can get help of up to Rs 1 crore to expand it. Small businesses do not need to provide any guarantee for loans up to Rs 10 lakh. If a small business asks for a loan of up to Rs 25 lakh, the bank has to decide within 14 days whether to give the loan or not. This way businesses do not have to wait long for money.
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