Central · Central Subsidy
Prime Minister Employment Generation Programme
- Maximum benefit
- 15–35% subsidy on project cost up to ₹50 Lakh (Mfg) / ₹20 Lakh (Service)
- Who can apply
- Micro, Small enterprises
- Status
- Applications paused, since 31 March 2026
Is PMEGP open? Key facts at a glance
Applications paused. PMEGP (Central): 15–35% subsidy on project cost up to ₹50 Lakh (Mfg) / ₹20 Lakh (Service).
PMEGP was approved for 2021-22 to 2025-26. When we checked on 20 October 2026, both the PMEGP 2.0 portal (pmegp.msme.gov.in, launched in June 2026) and the older portal said fresh application submission is presently unavailable and will be enabled once the continuation of the scheme, with revised guidelines, is approved. Until it is, treat new applications as closed and do not prepare one. We will update this page when the portal reopens.
Status checked: 20 Oct 2026. How we check our information
| Status | Applications paused, since 31 March 2026 |
|---|---|
| Level | Central government scheme |
| Type of benefit | Margin Money Subsidy |
| Maximum benefit | 15–35% subsidy on project cost up to ₹50 Lakh (Mfg) / ₹20 Lakh (Service) |
| Project cost range | ₹2 Lakh – ₹50 Lakh |
| Who can apply | Micro, Small enterprises (Manufacturing, Service) |
| Implementing agency | KVIC (nodal agency), with State KVIBs and District Industries Centres |
| Where to apply | PMEGP 2.0 portal (Ministry of MSME) |
| Source document | Ministry of MSME — PMEGP scheme guidelines; PIB, 7 May 2026 (during 2021-22 to 2025-26 PMEGP used its approved outlay of ₹13,554.42 crore and set up 4,03,706 units; no approval for the next cycle); status from the PMEGP 2.0 portal (20 Oct 2026) |
| Last verified | 20 Oct 2026 · How we check |
What is PMEGP?
PMEGP provides margin money subsidies for setting up new micro-enterprises. Higher subsidies are available for women, SC/ST, and rural entrepreneurs.
What are the key benefits of PMEGP?
- Margin money subsidy of 15% of project cost in urban areas and 25% in rural areas for general-category applicants.
- Special categories — SC, ST, OBC, minorities, women, ex-servicemen, transgender persons, persons with disabilities, and applicants in the North East, hill and border areas or aspirational districts — get 25% (urban) and 35% (rural).
- Own contribution of 10% of project cost (5% for special categories); the bank lends the balance.
- Maximum project cost ₹50 lakh for manufacturing and ₹20 lakh for service units.
- Successful PMEGP units can take a second loan for upgradation — up to ₹1 crore (manufacturing) or ₹25 lakh (service) — with a 15% subsidy (20% in the North East and hill states).
Who can apply for PMEGP?
- Any individual above 18 years; self-help groups, registered societies, production co-operatives and charitable trusts can also apply.
- At least Class VIII pass for projects above ₹10 lakh in manufacturing or ₹5 lakh in services.
- Only new units. Existing units, and units that have already received a Government subsidy, are not eligible (except for the second loan).
- One beneficiary per family.
Eligible business types
MSME categories covered
Eligible industries
Which documents are needed for PMEGP?
- Aadhaar
- PAN
- Education Certificate
- EDP Training Certificate
- Project Report
- Caste Certificate (if applicable)
Can PMEGP be combined with other schemes?
This scheme can be combined with the following for higher total benefits:
Why are PMEGP applications rejected?
- Already availed subsidy
- Age below 18
- Existing unit
- No EDP training
Subsidy Setu's DPR preparation process addresses all common rejection points before filing.
Frequently asked questions about PMEGP
- Is PMEGP open?
- No. Applications paused, since 31 March 2026. PMEGP was approved for 2021-22 to 2025-26. When we checked on 20 October 2026, both the PMEGP 2.0 portal (pmegp.msme.gov.in, launched in June 2026) and the older portal said fresh application submission is presently unavailable and will be enabled once the continuation of the scheme, with revised guidelines, is approved. Until it is, treat new applications as closed and do not prepare one. We will update this page when the portal reopens. Status last verified: 20 Oct 2026.
- Who can apply for PMEGP?
- Micro, Small enterprises (Manufacturing, Service).
- What is the maximum benefit under PMEGP?
- 15–35% subsidy on project cost up to ₹50 Lakh (Mfg) / ₹20 Lakh (Service).
Guides on PMEGP
Related schemes
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