MSME Ministry promotes agro-based industries in rural areas through PM Employment Generation Programme

New Delhi [India], February 5 : The Ministry of Micro, Small, and Medium Enterprises (MSME) is actively supporting the growth of agro-based industries in both rural and urban areas of India through the Prime Minister's Employment Generation Programme (PMEGP), implemented by the Khadi and Village Industries Commission (KVIC).
According to a press release by the Ministry of Ministry of Micro, Small and Medium Enterprises, under PMEGP, the program provides assistance to entrepreneurs in establishing new units in the non-farm sector, particularly focusing on agro-based industries.
The initiative is designed to boost economic activities in both rural and urban settings.
General category beneficiaries can avail a Margin Money (MM) subsidy of 25 per cent of the project cost in rural areas and 15 per cent in urban areas.
Special categories, including Scheduled Castes, Scheduled Tribes, OBCs, Minorities, Women, Ex-servicemen, Differently-Abled, Trans-genders, beneficiaries from North-eastern Region, Hill and Border areas, and Aspirational Districts, receive a higher Margin of Money subsidy of 35 per cent in rural areas and 25 per cent in urban areas, read the press release.
The contribution from General Categories is 10 per cent of the project cost, while Special Categories contribute 5 per cent. The maximum project cost is capped at Rs 50 lakhs in the manufacturing sector and Rs 20 lakhs in the service sector.
Since 2018-19, a second financial assistance of up to Rs 1 crore for the upgradation and expansion of well-performing existing PMEGP/REGP/MUDRA units has been introduced, providing a subsidy of 15 per cent (20 per cent for North Eastern Region and hilly areas).
The program's success is evident in the state-wise details of Margin Money (MM) disbursed and units set up under PMEGP over the last five years and the current year.
To further boost entrepreneurship in the village industries, several steps have been taken, including a two-day free online Entrepreneurship Development Programme (EDP) by KVIC for prospective entrepreneurs, providing 1056 model Detailed Project Reports (DPRs) on various industries (including agro-based ones) on the PMEGP portal, organizing webinars for youth awareness, facilitating marketing support through exhibitions, and launching online selling of all KVI products through www.khadiindia.gov.in, read the press release.
Short films showcasing successful entrepreneurs are being presented during workshops and awareness camps to create awareness about the PMEGP scheme. Radio jingles in regional languages have also been created for wider awareness.
The flexibility in training modes, providing information in six regional languages on the PMEGP portal, and allowing offline application submissions for prospective beneficiaries in rural areas who are not acquainted with online processes, are steps taken to make the program accessible and inclusive.
This comprehensive approach by the Ministry of MSME demonstrates a commitment to promoting rural and agro-based industries, fostering economic growth, and empowering entrepreneurs across the nation.