Pmegp scheme guidelines

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For official use only

GUIDELINES ON PRIME MINISTER’S EMPLOYMENT
GENERATION PROGRAMME (PMEGP)

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.

Regp6/desk/new sch.pmegp/guide.

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3. Quantum and Nature of Financial Assistance

Levels of funding under PMEGP

Categories of beneficiaries Beneficiary‟s Rate of Subsidy
under PMEGP contribution (of project cost)
(of project
cost)
Area (location of Urban Rural
project/unit)
General Category 10% 15% 25%
Special (including SC / ST / 05% 25% 35%
OBC /Minorities/Women, Ex-
servicemen, Physically
handicapped, NER, Hill and
Border areas etc.
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
Act,1860;
(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.


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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 necessary.
(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 Work-
shed/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).
Note:
(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


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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 (NYKS), 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 /
KVIBs.
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.


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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 (PIs).
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 (Industries)
(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).


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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
Scheme.


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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 consideration.
(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.


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(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 agencies.

(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
Ministry.

(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 areas.


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(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 e-tracking, 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) and
(v) Negative List (Para 29 of the guidelines refers)

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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.


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(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.


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(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
Under
Prime Minister‟s Employment Generation
Programme (PMEGP)

Ministry of Micro, Small and Medium Enterprises

(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

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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

14
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 separately.

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.


15

(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
KVIC.

15. Workshops:

a) Objectives:

(i) To brief potential beneficiaries about benefits under the
PMEGP Scheme and other KVIC Schemes like PRODIP,
SFURTI, etc.
(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, etc.
(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.


16

(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 (CLCSS), Credit Guarantee Fund Trust for Micro
and Small Enterprises (CGTSME), etc.
(v) Briefing about support schemes related to cluster and
marketing by NABARD and SIDBI.
(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
format.
(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

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 provisions.

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 basis.

(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.


18

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 released.

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

19
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 (RICS)‟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
forward-backward 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 Margin Money
( in Nos) (subsidy)(Rs.crore)
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
agencies.

23.2 Criteria for distribution of targets under PMEGP:

The following are the broad suggested criteria for distribution of
state-wise targets:
(i) Extent of backwardness of State;
(ii) Extent of unemployment;
(iii) Extent of fulfillment of targets under PMRY and REGP in
2007-08;
(iv) Extent of recovery of loans under PMRY and REGP in 2007-
08;
(v) Population of State/Union Territory; and
(vi) Availability of traditional skills and raw material.


20
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.

Criteria Weightage for determining targets
KVIC/KVIBs DICs
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.


21

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

22
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 MSME.

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.


23

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
rebate.

e) Rural Transport (Except Auto Rickshaw in Andaman & Nicobar
Islands, House Boat, Shikara & Tourist Boats in J&K and Cycle Rickshaw).


24

APPLICANT ID: (OFFICE USE)

APPLICATION FORM FOR FINANCIAL ASSISTANCE UNDER PRIME MINISTER'S
EMPLOYMENT GENERATION PROGRAMME (PMEGP)

Preference for sponsoring agency of the project to Bank : (mark )

KVIC KVIB DIC Rural Urban

TO

……………………………….

………………………………

Details in blocks should be entered in CAPITAL LETTERS only

1. Name of the applicant/ Institution Name

D D M M Y Y Y Y
2. Date of Birth

3. Sex Male Female

4.Father's name /Spouse’s Name/ Contact Person Name (if Institution):

5. Communication Address:

Taluk/Block:
District:
Email: Contact No

6. Address of proposed location of unit : Rural Urban

Taluk/Block:
District:

7. Name of the preferred Bank Name & Address in the area for Project sanction

Bank Name:
Address:

Taluk/Block
District:
Branch Code:

8. Qualification
Academic Technical


25

9. Whether Entrepreneur Development Programme (EDP)
Yes No
(at least 2 weeks) undergone: (mark )

Period of training Certificate Issue
Name & Address of Training Institute
From To Date

10. Whether the applicant belongs to (mark )
Ex-
SC ST OBC PHC Minority Hill Boarder Area General
Serviceman

11.Whether the project for Manufacturing Business/Service
(mark ) unit unit

12. Name of the project / business activity proposed:

13. Amount of loan required (in Rs.)
Building Capital Expenditure Loan
Type Working
(own/ Work shed, Machinery & . Pre capital/cash Total
leased/ Building etc equipment operative Cost credit Limit
Rented)

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
Address

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

NOTE:
 Own contribution must be invested 5% for SC/ST/OBC/PHC/woman/ Ex-
serviceman/ 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
Date: KVIC/ KVIB/DIC

26


27

IDENTIFICATION OF POTENTIAL BENEFICIARIES

MWCD
AWWA NYKS
Panchayat
Institutions
SC/ST/Min
ority Corp.

Electronic
Hoarding Press Advertisement Media

Identification of
Potential Beneficiaries

Orientation
Programme
Awareness Camp
Workshop
Seminar etc..

Screening of
Applications
By Dist. TFC

Skill
Development
Training if need


28

FLOW CHART – FUNCTION OF TASK FORCE COMMITTEE

KVIC KVIB DIC

Data Data Updation
Entry

TASK FORCE
COMMITTEE

Decision of
Committee

Application
Process

Convener of TFC Financing Bank

DIRECTORATE OF REGP/PMEGP
KHADI AND VILLAGE INDUSTRIES COMMISSION, MUMBAI-56


29

FLOW CHART – EDP TRAINING

KVIC KVIB DIC

Financing Bank

Sanction
Rejection

To be trained Already Trained

EDP TRAINING
CENTERS

Release of Loan

DIRECTORATE OF REGP/PMEGP


30

FLOW OF GOVT. SUBSIDY

MINISTRY OF
MSME

KVIC MUMBAI

KVIC
Field
Offices

KVIB DIC

NODAL
BANK

FINANCING
BANK

BENEFICIARIES


31

FLOW CHART - PHYSICAL VERIFICATION

KVIC KVIB DIC

Verification List of
Report Beneficiary
ees

STATE DIRECTOR
KVIC

Verification

Consolidated Report
List of
Report duly Beneficiaries
Certified by SO

PHYSICAL VERIFICATION
AGENCY

Payments

KVIC Letter for Subsidy
CENTRAL OFFICE Adjustment

DIRECTORATE OF REGP / PMEGP


32

REPORTING SYSTEM
1. GroupWise No. of Projects.
2. Govt. Subsidy Utilization
3. Employment Generated
4. Financial Range wise Projects
5. Social Category wise Projects
6. Social Category wise Govt. Subsidy Utilization
7. Social Category wise Employment
8. Progress under Backward and Forward Linkages

KVIB DIC Div. Office
KVIC

KVIC FIELD OFFICE
(After Including KVIC Report)

KVIC
MUMBAI

Ministry of
MSME


33

A
OPERATIONAL GUIDELINES ON OPERATION OF BANK
ACCOUNT ON PMEGP SCHEME

1. INTRODUCTION :

The Prime Minister's Employment Generation Programme is being
implemented w.e.f. financial year 2008-09 by the Ministry of MSME, Govt.
of India, New Delhi with Khadi & V.I. Commission being the Nodal Agency
for implementation of the scheme. Under the scheme, Govt. Subsidy
ranging from 15% to 35% will be provided for the projects financed by the
Bank to the beneficiary. For the purpose, the Ministry of MSME will
provide funds on yearly basis to KVIC.

2. Releases from the Ministry of MSME :

i) The Ministry of MSME will release amount of Govt. Subsidy on
installment basis to KVIC as per the allocation made for the year
by the Government.

ii) For releases of said funds, KVIC will put a demand before the
Ministry. The said demand should be based on the target fixed
for the year.

3. Flow of Funds from KVIC to field offices :
i) Immediately after receipt of funds from the Ministry, the KVIC will
release proportionate amount to all the State and Divisional offices
of KVIC based on the target fixed for the States. The said release
will be made after following the procedure as made in the KVIC Act.

ii) A separate Bank account as main account i.e. KVIC-SO-PMEGP
Savings Bank Account will be opened by all State offices for the
purpose and all sorts of releases to PMEGP will be operated through
this accounts only. Likewise, Divisional offices of KVIC will open
main account on PMEGP known as KVIC-DO-PMEGP in the town
where the Divisional Office is situated.
iii) No other Bank accounts including the REGP Bank accounts already
in operation at State / Divisional offices should be clubbed
with this account and any return / refund / resource generation
received by the State / Divisional offices on REGP should not be
kept in the PMEGP Bank accounts. It has to be a separate
account for PMEGP only.


34

4. Opening of Nodal Branch Accounts :
i) The State Director in consultation with the lead Bank of the
State,CEO, KVIB and Director, Industries of State Government
will open three separate SB Accounts in the name of KVIC-
PMEGP, KVIB-PMEGP and DIC-PMEGP in one Nodal Branch of
each Nationalized Bank after obtaining advance stamped receipt
from the authorized officers of KVIB and Director (Industries) of the
State.
ii) It is not compulsory to open accounts in Nodal branch of each Bank.
It will be opened only on the basis of requirement and the Bank‟s
operation considering the anticipated projects to be sanctioned by
them, area of operation in the State, availability of number of
branches etc. In other words, account will be opened only in the
Banks who are likely to finance PMEGP projects and are expected to
avail the Govt. Subsidy for those projects.

iii) The Nodal Branch accounts should be in the State Capital only.

iv) In case of Divisional offices of KVIC, only Nodal Branch account
in the name of KVIC- DO- PMEGP will be opened in each
Nationalized Bank as per their requirement within the jurisdiction
of the Divisional offices will be opened and operated. However, the
location of the Bank account of Nodal branch should be in the
city/town where the Divisional office is located. This is for the
purpose that the Divisional office will sanction Govt. Subsidy only in
case of projects in respect of KVIC only.

v) After opening of Nodal Branch Bank accounts, the same will be
intimated by the State Director to the CEO, KVIB and Director,
Industries with details like Bank account number, address of the
Nodal branch and amount deposited etc.

5. Operation of Nodal Branch Bank Account :
i) The State Director, KVIC will operate the KVIC Nodal branch Bank
accounts either directly or through his authorized officer/s not below
the rank of Asstt. Director.

ii) In case of KVIB Nodal Branch Bank accounts and Director of
Industries Nodal Branch Bank accounts, the said accounts will be
non-operative accounts (without cheque facility) as
previously in REGP. The State Director, KVIC will authorize the
authorized officer/s of KVIB and Directorate of industries to
operate their respective accounts through letter of transaction i.e.
for transferring funds from Nodal Branch toFinancing Bank.

iii) Interest earned on the said accounts should be transferred to KVIC
Main Accounts at State Level from time to time. This interest should
not be utilized towards the payment of Govt. Subsidy.

35
iv) The release of Govt. Subsidy to the Financing Branch from
Nodal Branch will be made as per provisions of the Scheme.

v) The Nodal Branch Bank accounts is to be operated exclusively for
the purpose of release of Govt. Subsidy to the financed project and
not for any expenditure under Backward Forward Linkages like EDP,
Exhibition etc. The said expenditure under Backward Forward
Linkages will be operated from separate accounts to be opened by
KVIC, KVIB and DICs. Separate guidelines on the same is being
issued.


36

B
Operational Guidelines on Functioning of modalities of
District Task Force Committee

1. Introduction:

I. The Prime Minister's Employment Generation Programme is being
implemented w.e.f. financial year 2008-09 by the Ministry of
MSME, Govt. of India, New Delhi with Khadi & V.I. Commission
being the Nodal Agency for implementation of the scheme. The
scheme is being implemented through KVIC and KVIB's of the
States in the rural areas and through DIC's in both Rural and
Urban areas with an objectives to develop "An improved
system of identification of beneficiaries".
II. It has been decided to have a transparent system of scrutiny of
applications at the first stage, so that right beneficiaries are
identified for availing bank loan for their project. Proper
identification of beneficiaries with required skill, knowledge,
attitude and aptitude will help in efficient management of the
unit/enterprise and sustainability of the same in long run for the
purpose. Starting from inviting applications to forwarding of the
project to the bank will be made through a committee known as
"District Task Force".

2. Inviting Applications :
I. The State Director, KVIC of the concerned states will issue an
advertisement through local print and electronic media i.e.
Regional News Papers, local T.V. Channels, Radio etc. for wider
publicity at periodical intervals inviting applications from potential
beneficiaries for sanction of projects under PMEGP Scheme.
Details of office address of KVIC/KVIB/DIC may also be given for
submission of applications, to enable the beneficiaries living in
remotest area.
III. Apart from issuance of advertisement to the effect, the State
Director may also take help of NYKS, SC/ST/Minority Finance &
Development Corporations, MWCD, AWWA, Panchayati Raj
Institution etc. for mobilization of applications and forward the
same to the designated authorities.

IV. A standard Application format and advertisement have been
devised by KVIC and all the prospective entrepreneurs may be
instructed to apply in the said format only which is enclosed.

IV. Based on the standardized format of applications and
advertisement in English, the concerned State Director may get it
translated into regional language and issue advertisement
accordingly.


37

V. Under the PMEGP Scheme, a beneficiary can avail Govt. subsidy
either through KVIC or KVIB or DICs. While submitting
applications, the beneficiary may have to make a choice in this
regard and it should be clearly mentioned in the application
format.
VI. Based on his choice of availment of Govt. Subsidy on his project,
the beneficiary will have to submit the application either at KVIC
or KVIB or DIC for the purpose.

3. Preliminary scrutiny of applications:
1. A preliminary scrutiny may be made at the initial stage by the
concerned State/Divisional Director in case of KVIC, authorized
officer/Committee in case of State KVIB and DICs so as to ensure
the fulfillment of laid down criteria, if any fixed. It may be ensured
that the beneficiary has not taken benefit of any other subsidy
scheme of Central / State Govt. and if so, the said applications may
be out-rightly rejected. The said applications will be kept in custody
of the rejecting officer/committee and a summary of such cases
alongwith reason be placed before the District Task Force for their
final approval/ rejection. Only the District Task Force will have the
power to reject any application.

2. All the applications received by KVIC/KVIB/DIC will be placed
before District Task Force.

4. District PMEGP Task Force :
I. A District Level “District PMEGP Task Force” for the purpose of
scrutiny of applications and finalizing the beneficiaries to be
sanctioned with project under PMEGP Scheme will be formed. The
Committee consists of the following members :
a. District Magistrate/Deputy Commissioner/Collector - Chairman
b. Lead Bank Manager - Member
c. Representative of KVIC - Member
d. Representative of KVIB - Member
e. Representative of DIC - Member
f. Representative of NYKS/SC/ST/Women Corpn. - Spl. Invitee
g. Representative of MSME-DI/ITI/Polytechnic - Spl. Invitee
h. Representatives from Panchayats - 3 members
(To be nominated by Chairman/ Dist.Magistrate/ Dy. Commissioner /
Collector by rotation. every year)
i. General Manager, DIC or Rep.of KVIC or Rep.of KVIB
- Member Convenor


38

NB : 1)The Committee will meet once in every two months or as
decided by the Chairman of the Committee i.e. District
Collector based on the target of the district and the no. of
applications received.

II. All the applications collected from different sources i.e.
KVIC/KVIB and DIC will be placed by the Member Convener of
the Committee for consideration before the committee.
III. The Committee will scrutinize applications and will either
accept or reject as the case may be.
IV. Based on the final list of applications found eligible, the
Committee will start finalizing the applications for
recommendation to banks based on the target and Govt.
subsidy sanctioned. Under no circumstances, the no. of
applications forwarded and subsidy involved should exceed the
proportion of the sanction made in favour of that particular
district in respect of Govt. subsidy. The process should be
completed within a period of 30 days positively except in
situation like natural calamities, or any other emergent
situation in the district like elections and law and order
problem etc.

5. Selection Procedure:

I. The Committee will decide the applications on the basis of
1) The information provided by the prospective beneficiary in
the applications itself and 2) By conducting personal interview
of the person concerned.
II. The recommendations of beneficiary for sanctioning purpose
will be based on technical qualification, skill, past experience,
geographical location and aptitude of the person in case of
projects in manufacturing sector. In case of Service
Industries, locational advantage, demand of that
Service/Business in that particular area and aptitude of the
person will be taken into consideration.

III. The District Task Force must take into consideration the
reservation made by the Govt. in respect of Weaker Sections
of Society such as SC/ST/OBC/Women/PHC/Minority/Ex-
Servicemen etc. while making the recommendations. The said
criteria may be strictly followed. To encourage different type
of industries, the Group Industrywise projects criteria as fixed
by the Commission from time to time should also be adhered.
The purpose is to provide proper representation in PMEGP
Scheme both in social category as well as proper spread of
various industry.


39
IV. However, in case sufficient no. of eligible
candidates are not available in a particular category and Govt.
subsidy may remain unutilized, the District Task Force in the
last quarter

may recommend the projects of other Category candidates for
sanctioning purpose. The objectives are to fully utilize the Govt.
subsidy amount, establishment of projects and generate
employment thereby.

6. Colour Coding:
i) Once the list of beneficiaries are finalized by the District Task
Force, the applications are to be bifurcated on the basis of the
beneficiary choice of organization for availing Govt. Subsidy
facility i.e. KVIC, KVIB and DIC.

ii) The colour form for KVIC should be White, for KVIB it is yellow
and for DIC it is sky blue.

iii) The concerned State Office of KVIC should provide the colour
form to KVIB and DICs in sufficient number from time to time.
The expenditure for printing will be met out by the State Office
from the funds to be made available under Backward & Forward
Linkages.

7. Minutes of the meeting:
I. The minutes of the meeting should be prepared by the
Member Convenor and duly signed by all the members
present in the meeting.

II. The minutes should consist the following.
a) No. of members present in the meeting alongwith date and
venue
b) No. of applications received.
c) No. of applications rejected at the time of scrutiny and the
reasons thereof in clear terms.
d) No. of applications rejected after interview and the reasons
thereof in clear terms.

e) No. of applications recommended showing name, address,
project name of the financing branch, qualification details
etc. in a chart form.


40
f) Chart showing social categorywise,
industrywise beneficiaries, proper representation to all
corners of the district.

8. General:

I. After the decision by the District Task Force, the Member
Convener will forward those applications to the concerned
State/Divisional offices of KVIC/State KVI Boards and DICs for
forwarding the same to the financing branch as per the choice
made by the applicant within 7 days of the meeting. The
concerned offices will forward the same to the financing
branch within 7 days of the receipt of the same. In case no
such choice of the financing branch and bank is made by the
applicant, the Member Convener of the Committee may
forward the same to the nearest branch of any bank close to
the residential address/site of the project of the beneficiary.
II. Recommendations made by the District Task Force does not
entail a person to be automatically selected for financing by
the Bank and availment of Govt. subsidy. He/She has to fulfill
the other conditions to be fixed by the Bank for financing
purpose. However, the said conditions should be realistic and
the bank may provide the reason either to the District Task
Force or to the Lead Bank Manger, so that the same can be
discussed in the next District Task Force for a final decision in
the matter.
VI. From receipt of applications to forwarding of the same to
financing branch, all the data should be entered into Online
Tracking Application System devised by KVIC . A separate
guidelines on the same is being issued shortly.
VII. The time frame for selection and forwarding should be strictly
adhered to.
VIII. Identification proof such as Voter Card, Ration Card as
required under law should be made compulsory and be
produced at the time of interview and duly attested zerox copy
of the same should be provided by the beneficiary at the time
of application.
IX. The documentation from receipt of applications to forwarding
of applications should be done on Online Basis providing
necessary details, for which guidelines are being issued
separately. Till the on line process is being operational, it may
be done manually.


41

C
OPERATIONAL GUIDELINES FOR
ENTERPRENEURSHIP DEVELOPMENT PROGRAMME
FOR PMEGP BENEFICIARIES

1. INTRODUCTION :

Ministry of Micro, Small & Medium Enterprises, Govt. of India in a
revolutionary step has decided to merge both the Central sponsored
subsidy scheme i.e. PMRY and REGP into one scheme named as „Prime
Minister Employment Generation Programme‟ (PMEGP). As per the
operational guidelines, a beneficiary has to undergo mandatory two weeks
Entrepreneurship Development Programme (EDP) before release of first
installment of the loan. Previously, the said training for REGP
beneficiaries is of 3 days duration and the beneficiary has to undergo
the training after release of first installment of loan. The main
objective of the training programme is to motivate, inspire, develop
confidence and build capacity for establishment of an enterprise, manage
and sustain the unit successfully.

2. OBJECTIVES:

 To impart knowledge on the concept of entrepreneurship, its
challenges and prospects
 To develop entrepreneurial competencies of viz., achievement
motivation, risk taking ability, confidence, goal setting ability of
the potential entrepreneurs.
 Impart knowledge on procedure and formalities of setting of an
enterprise/ business.
 Develop skills on management of a unit/ business establishment
including financial and marketing.
 To impart knowledge on identification of business opportunities
and preparation of business plan.

3. DURATION :

Two weeks (10 working days)

42

4. ELIGIBILITY :

Beneficiaries of PMEGP scheme whose projects have been
sanctioned and the first installment have not been released. The
training programme is mandatory for release of first installment of
loan to the selected beneficiaries of PMEGP scheme.

EXEMPTION :

Beneficiaries who have already undergone similar training at any
EDP institute of repute i.e. National or State level for a period of
minimum 2-3 weeks are exempted from attending the said training.

5. ELIGIBLE INSTITUTIONS FOR IMPARTING TRAINING:

 Departmental Multi Disciplinary Training Centers of KVIC and KVIBs.
 Non-departmental Training Centers functioning under the
administrative control of KVIC and KVIBs.
 Training Institutes / EDP institutes/ Educational Institutions
accredited by KVIC for the purpose.
 Recognised Training Institutes of District Industries centers.

N.B : A list of accredited training institutes for the purpose is
being circulated by KVIC.

6. CURRICULUM:

The topics to be covered during the course includes:-

i) Becoming an entrepreneur ; Challenges ahead
ii) Entrepreneurial competencies; Achievement motivation and
Attitude building, developing confidence.
iii) Establishment of an enterprise; identification of Business
opportunity and business plan preparation.
iv) Enterprise management ;


43
v) Managing the scarce finance; financial
planning and accounts maintenance.
vi) Marketing the product;
vii) Statutory laws, rules and regulations of Government to be
followed/ abide by the entrepreneur.
viii) Expansion, growth and sustainability of the enterprise;

7. COURSE PLAN:
DURATION –TWO WEEKS. PERIODS - 40

1st Session - 09.30 to 11.15 hrs.
TEA BREAK
2nd Session -11.30 to 01.15 hrs.
LUNCH
3rd Session - 14.00 to 15.45 hrs
TEA BREAK
4TH Session -16.00 to 17.45 hrs.


44

Days 1st Session 2nd Session 3rd Session 4th Session
1 Registration & Rapport Entrepreneurship; Characteristic
Inauguration building s of an
Charms &
& entrepreneur;
Challenges
Unfreezing A matter of
attitude and
skill.
2 Internalizing of Continued Continued Continued
entrepreneur
competencies;
Thematic
Appreciation test
( TAT)
3 Risk Taking Problem solving Communication Leadership
behavior and creativity
4 Business plan Establishment Legal formalities for Resource
preparation of an setting up of the mobilization
enterprise; unit and support
Systematic system; Role
approach of supporting
organizations.
5 Managing the Quality Design and Packing Manpower
enterprise; management management
Purchasing,
inventory/ material
management.
6 SATURDAY: Visit to a Small Scale Industry preferably run by a successful
entrepreneur.
7 SUNDAY:
8 Accounts & Book- Continued Working capital Break even
keeping: management. analysis
9 Costing, Pricing and Marketing Continued Customer
profit management. strategy and management.
Sales
Techniques.
10 Time Management Sustainability Enterprise growth; Continued
of an unit; Product
Precautions diversification and
needed expansion
11 Crisis management. IT factor for Union & State laws Continued.
managing an to be followed by an
unit; An unit; Sales Tax, Vat,
impending Income Tax etc.
need
12 Interaction with a Continued Programme Valedictory
successful Evaluation
entrepreneur/s; his
experience of

45
establishment /
managing an unit.
Total working days : 10 One day for study visit

8. BATCH SIZE :
20 Trainees per batch.
9. EXPENDITURE PER BATCH :
i) For Departmental & Non - departmental Training Centres of KVIC
/ KVIB
a) Boarding –
Rs.150 X 20 X 14 days = Rs.42,000/-
b) Lodging - Free
c) Guest faculty -
35 Session X Rs.500 = Rs.17, 500/-
d) Study material -
20 X Rs. 200 = Rs. 4,000/-
e) Stationery –
20 X Rs.100 = 2,000/-
f) Miscellaneous Expenditure –
20 X Rs.200 = Rs.4, 000/-
g) Incentive to institute - Rs.5, 000/- per batch.
Expenditure per batch:
ii) For Accredited Training Centres of KVIC / KVIB / DIC
a) Lodging of participants including Hall charge -
Rs.1, 000/- per day i.e. 15 days = Rs. 15,000/-
b) Boarding - Rs.150 X 20 X 14 days = Rs.42,000/-
c) Guest faculty -
35 Session X Rs.500 = Rs.17, 500/-
d) Study material -
20 X Rs. 200 = Rs. 4,000/-
e) Stationery –
20 X Rs.100 = 2,000/-

f) Miscellaneous Expenditure –
20 X Rs.200 = Rs.4,000/-

46
g) Incentive to institute - Rs.5, 000/- per batch.

SUM TOTAL OF EXPENDITURE PER BATCH
(In Rs.)
Sr.No. Head of KVIC/KVIB Accredited
Expenditure Training Training
Centres Centers
1 Lodging of Free 15,000
Participants
2 Boarding 42,000 42,000
3 Guest faculty 17,500 17,500
4 Study material 4,000 4,000
5 Stationery / Printing 2,000 2,000
etc.
6 Misc. expenditure 4,000 4,000
7 Incentive to Institute 5,000 5,000
TOTAL : 74,500 89,500

Per head expenditure at KVIC/KVIB Training Centers: Rs.3,725/-
Per head expenditure at Accrediting Training Centers :Rs.4,475/-

10. EVALUATION:
i) Immediately after completion of EDP, the participants may be
instructed to fill up the Evaluation Form in the format provided to them
in the last day of programme.

ii) The evaluation format should be submitted to KVIC officials only.
ii) Based on said Evaluation Reports submitted by the participants
separately, the course evaluation reports will be
prepared by the state/ divisional director and it may submitted
to the Director, PMEGP and Director, HRD within 15 days of
the completion of the course.
11. GENERAL :
i) KVICs,KVIBs and DICs will sponsor their beneficiaries for EDP
training either to Departmental and non-departmental training
centres of KVIC or to the accredited training centres. Once the
training is completed, they will have to send the expenditure statement
duly certified to the concerned State Office of KVIC.

ii) The expenditure on EDP will be reimbursed by concerned State
Office, KVIC directly to EDP training centre.

iii) While inviting guest faculties, preference and best efforts should
be made to invite persons having requisite qualifications and experience

47
needed for the particular topics. Further Government officials
and entrepreneurs having long experience may be invited for
delivering lecture on the topics such as taxation laws, laws to be
followed for establishment of an enterprise etc.

D
PMEGP Online Application Tracking System
The Directorate of Information Technology, Khadi & Village Industries
Commission, Mumbai has designed and developed the web based PMEGP online
application tracking to monitor the scheme and also tracking the status of
application at beneficiary level. The system will facilitate to view the application status
at any point of time through internet and generate various reports from time to time
by implementing agencies, KVIC central office and Ministry of MSME. The system
can track the status of application right from submission and till adjustment of
Govt.Subsidy.

SEPARATE GUILDLINES ON THE SYSTEM IS BEING ISSUED
SHORTLY


48

E
OPERATIONAL GUIDELINES FOR PHYSICAL
VERIFICATION OF REGP & PMEGP UNITS

Ministry of Micro, Small & Medium Enterprises, Govt. of India in a
revolutionary step has decided to merge both the Central sponsored
subsidy scheme i.e. PMRY and REGP into one scheme named as „Prime
Minister Employment Generation Programme‟ (PMEGP). The REGP
scheme was in operation till 31-3-2008. As per the guidelines of PMEGP
Scheme the physical verification of the units established is compulsory.
The said verification is to be completed in respect of the units within 24
months of establishment of the units. Considering the limitations of
manpower, it has been decided to conduct physical verification by
outsourcing reputed National / State level agencies.

SEPARATE GUILDLINES ON THE SYSTEM IS BEING
ISSUED SHORTLY


49

F
Operational Guidelines for Reporting and Monitoring
H
1. Introduction:

The Prime Minister's Employment Generation Programme is being
implemented w.e.f. financial year 2008-09 by the Ministry of MSME, Govt.
of India, New Delhi with Khadi & V.I. Commission being the Nodal Agency
for implementation of the scheme. As per the guidelines of the scheme
Ministry of MSME will be the Controlling and Monitoring Agency for
implementation of the Scheme. KVIC being the Nodal Agency for
implementation will report to the Ministry on periodical basis which will be
reviewed and further suggestions, change or modification for smooth
implementation of the scheme will be made by the Ministry.
2. Reporting :

i) The PMEGP Scheme will be implemented in the field through KVIC,
KVIB and DICs of State Government. Statewise targets will be allocated
to them on yearly basis and the said target will be reallocated Districtwise
& Bankwise as per approved criteria in consultation with State Level
Bankers Committee.
ii) KVIB and DICs of the States will report to the State Director, KVIC
of the concerned States on monthly basis on the performance /
achievement made by them in the particular month in a prescribed format
. The said report invariably reaches the State Director latest by 3 rd of
every month for the previous month.
iii) The said information includes
a) Achievement in respect of Group wise number of projects
b) Govt. Subsidy utilization
c) Employment Generated
d) Financial Range wise and Social Category wise projects.

e) Social Category wise Govt. subsidy utilization and Employment
generated.
f) Progress under Backward and Forward Linkages


50
g) In case of non achievement of targets,
reasons to be specified and action plan for completing the
backlog.

iv) The said information should also be put in the web based reporting
system devised by KVIC.

v) The concerned State Director, KVIC by including its performance of
the reporting month will prepare a consolidated report and send it to the
Director (REGP/PMEGP) latest by 5th of every month.

vi) The Divisional Offices of KVIC will send the performance report
directly to Director (REGP/PMEGP) latest by 5th of every month.

vii) The State / Divisional offices of KVIC will send the performance
report every month only through web based reporting system.

viii) The Director (REGP/PMEGP) will scrutinize and consolidate the
reports received from State and Union Territories. A Statewise
consolidated report will be sent to Ministry of MSME latest by 10 th
every month.

3. Monitoring:

There will be four tier monitoring system on implementation of the
scheme.
A) State Level
B) Zonal Level
C) National Level
D) Ministry of MSME level

A) State Level Monitoring:
i) There will be State Level Monitoring committee which will consists
of the following members for reviewing the performance of
PMEGP scheme.

a) Principal Secretary/IDC, Dept. of Industries - Chairman
b) Director of Industries - Member
c) CEO, KVIB - Member
d) Rep. of major public sector Banks
in the State - 5 Members
e) Rep. of SC/ST Corporation - Member

51
f) Rep. of Dept. Panchayati Raj
- Member
g) Rep. of State Women Dev. Corp. - Member
h) Divisional Directors of KVIC in State - Member
i) Rep. of SIDBI - Special invitee
j) Rep. of NABARD - Special invitee
k) State Director, KVIC - Member Convenor

ii) The State Level Monitoring Committee will meet at least once in a
quarter.
iii) The functions of the committee includes
a) to review the performance / achievement made in
implementation of PMEGP by KVIC / KVIB / DIC separately
in the quarter. The review should focus on total
achievement in relation to target, imbalance, if any in social
category wise, industry wise and Area wise and action taken
from wider publicity of the scheme.

b) Suggest ways for improving performance and to correct
the imbalances, if any.

c) The Committee should ensure that the performance of
PMEGP are regularly reviewed in the District Consultative
Committee (DCC) / District Level Review Committee (DLRC)
headed by District Collector / District Magistrates by
including it as permanent agenda point.

d) Reviewing the reporting system made by KVIC, KVIB and
DICs.
e) To review the sanction made by the Bank in relation to the
recommendations made by District Task Forces.
f) Imparting of EDP training to selected beneficiaries.
g) Any other matter related to PMEGP scheme.

iv) The expenditure on the meeting of the said committee will be met
out by the State Office, KVIC as per approved guidelines.

B. Zonal Level Committee:
i) The Zonal Level Committee will review the performance /
achievement made in the PMEGP scheme. The said committee
comprises of following members :

a) Chief Executive Officer, KVIC : Chairman

52
b) Director of Industries in each State of the Zone : Members
c) CEOs of State / UTs KVIBs : Members
d) Lead Bank Managers of each State : Members
e) State / Divisional Directors of each State :
in the Zone : Members
f) Zonal Dy.C.E.O. of KVIC : Member Convenor

ii) The committee will meet atleast once in a quarter.
iii) The functions of the committee includes
a) to review the performance / achievement made in implementation
of PMEGP by KVIC / KVIB / DICs of each State in the Zone
separately on quarterly basis.

b) Reviewing the reporting system made by KVIC, KVIB and DICs.
c) To review the sanction made by the Bank in relation to the
recommendations made by District Task Forces.
d) Imparting of EDP training to selected beneficiaries.
e) Any other matter related to PMEGP scheme.

out by the State Office of KVIC in the Zone where the meeting is
being held as per approved guidelines for Backward & Forward
Linkages.

C. National Level Committee:
i) The National Level Monitoring Committee consists of following
Members :
a) Hon‟ble Chairman, KVIC : Chairman
b) Chief Executive Officer, KVIC : Member
c) Financial Adviser of KVIC : Member
d) Rep. of MSME : Member
e) CMDs of all Public Sector Banks : Members
f) CEOs of State/UT KVIBs : Members
g) Director of Industries of State Govts. : Member
h) Rep. of RBI : Member
i) Zonal Dy.C.E.O.s of KVIC : Members

53
j) Director, REGP/PMEGP : Member Convenor

ii) The Committee will meet once in six months.
iii) The functions of the committee includes :

a) To review the performance / achievement made in
implementation of PMEGP, Statewise / Bankwise.

b) Suggesting policy measures and changes for smooth
implementation of the scheme.

c) Any other matter in relating to implementation of PMEGP with
permission of Chair.

out by Director, REGP/PMEGP as per approved guidelines.

D. Monitoring by Ministry of MSME, Govt. of India:
The meeting will be chaired by Secretary, Ministry of MSME, Govt. of
India to review and monitor the overall implementation PMEGP Scheme in
the country and to take policy decisions. Following are the participants :

a) Principal Secretaries /IDC of Dept. of Industries of all State
Governments/ U.T. Administrations
b) Chief Executive Officer, KVIC
c) CMDs of all Public Sector Banks

The expenditure on the meeting, any other meetings being conducted by
the Ministry in connection with PMEGP scheme and also the advertisement
being issued by the Ministry of MSME on PMEGP will be met by the KVIC
out of funds available under Backward & Forward Linkages head of
PMEGP.


54

OPERATIONAL GUIDELINES FOR ALLOCATION OF TARGETS

1. Statewise Target Allocation by Central Office, KVIC, Mumbai. G
The total subsidy sanctioned by the Ministry of MSME under PMEGP
for 2008-09 is Rs.74000.00 lakhs. 10% of the total is earmarked for
giving additional subsidy dose to backward States. Out of remaining, H
60% will be implemented through KVIC and KVIB in rural areas and
remaining 40% will be implemented through DIC in both rural and urban
areas.

2. The total subsidy has been allocated on 60:40 basis between KVIC,
KVIB and DICs to all State / UTs proportionately on the basis of total
population of the State / UT as per Census of India 2001.

3. In case of KVIC field offices / KVIBs, 60% of the allocation is
reallocated on the basis 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.
Similarly, remaining 40% of the allocation for assigning the targets to
DICs, the criteria adopted is 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 As per Year” and Rural Population of the State.

The 10% of total kept for giving additional dose to backward States
have been allocated for both KVIC / KVIB and DICs proportionately as per
backwardness of the States.

The approximate weightages assigned for determining the targets to the
implementing agencies are given below :
Criteria Weightage for determining
targets
KVIC /KVIBs DICs

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% --

55

4. Reallocation of targets at State Level:

i) After receiving the Statewise targets, the State / Divisional Director,
KVIC, CEO / UT KVI Board and Director of Industries of respective
State Govts. will jointly reallocate the States target among the
Districts in consultation with SLBC. If needed, SLBC may be
requested for a special meeting for this purpose.

ii) While allocating the targets Districtwise, for KVIC and KVIB, the
criteria to be adopted is rural population of the District,
Backwardness of the District and past performance of the Districts
under REGP Scheme. In case of DICs, backwardness of the
District, urban unemployment level and rural population of the
District may be taken into consideration.

The approximate weightages assigned for determining the targets to the
implementing agencies at District level are given below :

Criteria Weightage for determining
targets
KVIC /KVIBs DICs

1. Rural population of the District 40% 30%
2. Backwardness of the District 30% 40%
3. Urban unemployment level at -- 30%
District
4. Past performance of REGP in the 30% --
District

5. The targets allocated to KVIC and KVIB are bifurcated on 50:50
basis except in the State of Jammu and Kashmir, Goa, Mizorum,
West Bengal and Nagaland. In these States, the targets between
KVIC and KVIB are allocated in the ratio of 30:70.

6. The calculation of number of projects, the average subsidy per
project is taken as Rs.1.20 lakhs.

7. For calculation of employment, the average employment per
project is estimated at 10 persons.


56

H
SPECIMEN ADVERTISEMENT FOR INVITING APPLICATIONS

For creation of Self Employment Opportunities, Khadi and V.I.
Commission is implementing Prime Minister‟s Employment
Generation Programme (PMEGP).The Scheme aims at establishment
of new enterprise to be financed by the Bank. Subsidy ranging from
15 % to 35% will be provided on the Project cost of the unit.

Applications are invited from Unemployed Youths above the age of
18 years in the prescribed format available with Office of KVIC
____________ or KVIB _____________ and all District industries
Centres.

The application can also be downloaded from KVIC website-
www.kvic.org.in.

Persons or their family members already availed subsidy/ Margin
Money under PMRY/REGP or any other central/State subsidy scheme
are not eligible.

State Director

Note : May be translated in Regional language and be advertised.


57

I
OPERATIONAL GUIDELINES FOR
BACKWARD FORWARD LINKAGES

DISTRICT LEVEL AWARNESS CAMPS :

These camps are to be arranged jointly by KVIC/KVIB/DIC in the
district.
1. Participants

i) KVIC officials
ii) State KVIB officials
iii) Revenue Officer
iv) Local Bank Officials
v) Local NGOs
vi) DIC officials
vii) Representatives of Panchayats
viii) Prospective Entrepreneurs

2. Duration of Camps

4 to 6 hours

3. Topics to be covered

a) The KVIC official has to explain about KVIC, its aims and objectives, its
functions and commitment in the rural and urban areas, the role of
DICs, the role of the KVIC in rural industrialization in detail, the
significant achievement of KVIC and then make a presentation,
preferably through power point about the details of the Scheme and its
operation procedure.
b) To make aware about different circulars instructions issued on the
Scheme by KVIC to the participants, if necessary by providing them
copies of thereof. Material/Computer floppy on Scheme‟s presentation
through Power Point may either be prepared in the Local language or
English/Hindi version of the Scheme may be collected from the Central
Office to have uniformity of presentation through out the country.
However, wherever necessary modification may be made to suite the
local requirement.
c) After initial introduction as above, the KVIC/KVIB/DICs official has to
throw open the subject matter for open house discussion, where they
have to give required clarification on the points raised or has to solve
the problems faced by the PMEGP entrepreneurs.
d) The KVIC/KVIB/DICs official has to introduce a successful entrepreneur
in the camp to share his experience with others.
e) They should open a discussion on locally available raw material based
Industries and on other potential industries in the area.

58

f) Group wise Industry wise targets already communicated should be
discussed based on the locally available raw material and concentration
of the market outsourcing, so that the group industry targets can be
achieved.

g) The officials organizing the awareness camp has to maintain an
attendance register and separate register for recording problems raised
in the camp and clarification provided by them. The Minutes of the said
camp along with list of persons attended the camp be furnished to the
State Director and Dy. CEO of the Zone.

h) Local cultural programme may be arranged wherever possible.

i) The State Director has to furnish feedback about the number of
projects received by the Banks as a result of such camp in the Village
also needs to be furnished to Director (REGP/PMEGP). If any assistance
is provided as a follow up action to the said camp also needs to be
prominently mentioned in the feed back report.

j) To be ensure that KVIC/KVIB/DIC banner is prominently displayed at
the venue of the camp.

k) A standard power point presentation CDs both in Hindi and English
languages will be prepared with voiceover by the Directorate of PMEGP
and sufficient number of CDs will be provided to each KVIC, KVIB and
DIC offices for making presentation at District Level Awareness Camps.
If needed, same can be translated into regional languages by the
respective offices and the expenditure may be met out of Backward &
Forward Linkages fund provided to their respective offices.

FINANCIAL PATTERN :

1 Printing of Pamphlets on PMEGP Rs.5000
2 Local Advertisement Rs5000
3 Conveyance Rs.1000
4 Tea/Snacks Rs.3000
5 Contingency Rs.1000
6 Hiring hall/Sound System Rs.5000
7 Hiring of Laptop and projector Rs. 500
for presentation
Total Rs.20,500

Interchange of expenditure from one head to another is permitted within
overall allocation.


59

STATE LEVEL WORKSHOP ON PMEGP:

These workshops are to be arranged jointly by KVIC/KVIB/DIC
in the State.

1 Participants

i) State Government functionaries preferably Secretary/Joint
Secretary of Institutional Finance

ii) Secretary/Joint Secretary of Industries Department
iii) State Level functionaries of SSI/DRDA
iv) The Convener of SLBC
v) Regional/Zonal Managers/LDMS of public Sector Banks
vi) Chairman of RRBs
vii) General Manager of the RBI
viii) Managing Director of the Private Commercial Bank approved by
the State Task Force Committee for implementation of PMEGP in
the state
ix) Chairmen of Co operative Banks approved by State Task Force
Committee for implementation of PMEGP in the State
x) Officials of the NABARD and SIDBI
xi) KVI Officials
xii) Chairman and CEO/managing Director/Secretary/Executive
Officer and other officials of the State KVI Board.
xiii) NGOs in the State
xiv) General Managers of DICs.
xv) DVIO‟s
xvi) PMEGP beneficiaries.

2. Duration of the Workshop:

4 to 6 hours.

3. Topics to be covered:

(a) The KVIC official has to explain about KVIC, its aims and objectives,
its functions and commitment in the rural and urban areas, the role of
KVIB/DICs, the role of the KVIC in rural industrialization in detail , the
significant achievement of KVIC and then make a presentation,
preferably through power point about the details of the Scheme and its
operation procedure.

(b) To make aware about different circulars instructions issued on the
Scheme by KVIC to the participants, if necessary by providing them
copies of thereof. Material/Computer floppy on Scheme‟s presentation
through Power Point may either be prepared in the Local language or
English/Hindi version of the Scheme may be collected from the Central
Office to have uniformity of presentation through out the country.

60

However, wherever necessary modification may be made to suite the
local requirement.

k) After initial introduction as above, the KVIC/KVIB/DIC officials has to
throw open the subject matter for open house discussion, where he has
to give required clarification on the points raised or has to solve the
problems faced by the PMEGP entrepreneurs.

l) The KVIC/KVIB/DIC official has to introduce a successful entrepreneur
in the camp to share his experience with others.

m) They should open a discussion on locally available raw material based
Industries and on other potential industries in the area.

n) GroupWise industry targets already communicated should be discussed
based on the locally available raw material and concentration of the
market outsourcing, so that the group industry targets can be
achieved.

O) It should be ensured that KVIC/KVIB/DIC banner is prominently
displayed at the venue of the camp.

Note

After the State Level Workshop is conducted, the minutes of the said
workshop along with attendance sheet and photographs of the workshop is to
be submitted to the Director ( REGP/PMEGP ) without fail. Non receipt of
such report may result in stoppage of further sanction of funds.
In each workshop KVIC‟s PMEGPs banner may be prominently displayed.

FINANCIAL PATTERN FOR WORKSHOP

1 Hiring Halls, Chairs etc Rs.50,000/-
2 Hiring of Sound System Rs10,000/-
3 Printing and Stationary Rs..50,000/-
4 Tea/Snacks Rs. 10,000/-
5 Banners/displays Rs. 10,000/-
6 Misc Expn. Rs.2000/-
7 Conveyance Rs. 8000/-
8 Local Advertisement Rs.60,000/-
Total Rs.2,00,000/-

Interchange of expenditure from one head to another is permitted within
overall allocation.


61

STATE LEVEL WORKSHOPS FOR STAFF TRAINING:

Since the new scheme is being implemented, the field staffs of KVIC, KVIB
and DICs are to be trained in implementation procedure of the scheme. They are
to be trained in respect of the guidelines of the scheme, operational procedure and
other operational activities so that the scheme can be implemented in right
prospective. For the purpose, the state level workshops for training of the staff of
KVIC, KVIB, DICs and Banks will be conducted. The expenditure of the meeting
will be restricted to Rs.50,000/- per meeting. In Haryana, H.P. J & K, Rajasthan,
Punjab, Bihar, Jharkhand, Orissa, West Bengal, Assam, A.P., Karnataka, Kerala,
Tamilnadu, Gujarat, Maharashtra, Chattisgarh, M.P., Uttaranchal and Uttar
Pradesh, there will be four such workshops and in the states of Delhi, A.N. Island,
Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim.
Pondicherry and Goa there will be two such work shops. All these workshops will
be conducted during the first years of implementation of the Scheme. Funds for
the same will be met out of Backward Forward Linkages funds provided to field
offices of KVIC.

EDP TRAINING TO BENEFICIARIES:

SEPARATE CHAPTER HAS ALREADY BEEN PROVIDED IN THE GUIDELINES
FOR THE PURPOSE.

Quarterly Bankers Review Meeting:
(i) Lead Districts Managers Meeting (LDMs)
This will be organized by State/Divisional offices of KVIC jointly with
KVIB & DIC. The focus of the meeting will be to inform and aware the
Bank officials at LDM level about PMEGP, targets and implementation
of the scheme. The KVIC will meet the expenditure for conducting such
meeting. The maximum expenditure is restricted to an amount of
Rs.25.000/- to meet the relevant expenses.

(ii) Zonal Review meeting
To review and monitor the PMEGP scheme, Zonal Review will be
conducted quarterly by KVIC in six zones where Representatives of
KVIC, KVIB and DIC will participate in the review. Concerned Bank
officials will also be invited. KVIC will restrict the expenditure to a
maximum amount of Rs.50,000/- per meeting per zone to meet the
relevant expenses..


62

(iii) Top Level Bankers Meeting:
KVIC will organize the Top Level Bankers Meeting on half yearly basis
(in June and December) so that proper monitoring can be done at the
beginning and end of the financial year. CMDs/Senior Executives of
Nationalize Banks, Representatives of Ministry of MSME, State DICs and
KVIBs will participate in the national level Bankers Meeting which will
be chaired by Chairperson/CEO, KVIC. The meeting will focus on
reviewing the targets and will examine the issues related to policy
decisions relating to Banks for implementation of PMEGP. The
expenditure will be restricted to a maximum of Rs.5.00 lakhs per
meeting.

EXHIBITION:

To be organized jointly by KVIC/KVIB/DICs.

Financial Pattern :

 Dist. Level Exhibition @ Rs.1.00 Lakhs and at least 10 PMEGP
beneficiaries participation
 State Level Exhibition @ Rs.5.00 Lakhs with 25 PMEGP
beneficiaries participation
 Zonal Level Exhibition @ Rs.20.00 Lakhs with minimum 50
PMEGP beneficiaries participation.
 National level Exhibition @ Rs.40.00 lakhs with minimum 100
PMEGP beneficiaries participation.

Duration :

Dist. Level Exhibition Minimum 3 days
State Level Exhibition Minimum 7 days
Zonal Level Exhibition Minimum 10 days
National Level Exhibition Minimum 15 days

For each State/Region/UT, budget is being provided to conduct a fix
number of exhibitions and within the same budget it is permitted to
conduct more number of exhibitions without any additional budget
demanded.
S.N. Head of Expenditure Dist. Level State Level Zonal Level National
Level
1 Pendal 15,000.00 50,000.00 1,00,000.00 5,00,000.00
2 Printing Material 15,000.00 50,000.00 5,00,000.00 8,00,000.00
3 Display 35,000.00 2,00,000.00 5,00,000.00 7,00,000.00
Demonstration
4 Advertisement in local 25,000.00 1,50,000.00 8,00,000.00 15,00,000.00
Media, Newspaper at
the time of Exhibition
5 Misc. Expenditure 10,000.00 50,000.00 1,00,000.00 5,00,000.00
TOTAL 1,00,000.00 5,00,000.00 20,00,000.00 40,00,000.00


63

Within the budget, interchange of expenditure from one head to
another head is permitted.

FOLLOWING AREAS ARE TO BE COVERED :

 The Exhibition should preferably be inaugurated through the Hon‟ble
Minister, Industry Secretary, Development Commissioner or any other similar
dignitaries.

 All State Government Organizations/NGOs/Officials of the state KVI
Boards/DIC's and Banks may be invited for Exhibition.

 An arrangement should be made for demonstration of PMEGP products and
its sale in the Exhibition.

 The buyers-sellers meet may also be arranged at the place of Exhibition.
 Half-day discussion should be organized and necessary guidance should be
provided on quality control, package and design development. The
participants should also discuss on technical upgradation, skill development
and technical interface.
 Participants may be induced to participate in outside State Exhibitions and
outside State beneficiaries may be invited for such exhibition and their views
and experience in the production/marketing may be shared with other
participants of the State.
 Availability of raw material in outside State at cheaper/reasonable rate for
various products may be ascertained and made available to the participants
and their interaction may be arranged wherever necessary through the
interpreter to overcome the problem of language. Wherever possible
technical expert or marketing expert may be invited to guide the participants
in removing the bottlenecks of marketing.

 Other technical expert personalities such as designers, packagers, printers,
federations and marketing experts etc. may also be called for to participate in
the discussion to share their views and stress the importance of the subject
matters to the participants from sales promotions point of view.

 Co-sponsorship for the exhibition may be arranged through local banks,
NGOs, NABARD or any other Social Organisation devoted for Rural
Development.
 Detailed report on exhibition alongwith photographs of the event may be sent
to Director (REGP/PMEGP).


64
PROMOTIONAL ACTIVITIES:

Under Promotional Activities of PMEGP, following areas are to covered :
1. Hording/Banners at important places.
2. Publishing posters on PMEGP.
3. Workshops for KVIB/DIC/Employment Exchange Officers/Gram
Pradhans/Panchayats be conducted and insist their active participation
in each Workshop and Awareness Camp.

4. Publicity in Electronic and Print Media.
5. Printing of Village Industries directory with beneficiaries details.
6. For all the above activities in each advertisement KVIC name, PMEGP
Scheme and Ministry of MSME be compulsory displayed and while
sending the reports/photos, the clippings of such advertisement bearing
KVIC, PMEGP Scheme and Ministry name be sent to Directorate of
REGP/PMEGP in the absence of which no further funds be released.

PRINTING OF APPLICATIONS ON PMEGP :
The State/Divisional Directors of KVIC will arrange for printing of applications,
Marin money Claim format, EDP Training format as per colour code i.e. Projects
being forwarded to Task Force by KVIC will be in white colour, through KVIB in
yellow colour and through DICs in sky blue colour. The expenditure for the same
should be met out of B/F Linkages fund being provided to them.

FORMAT FOR SPONSORING THE BENEFICIARY FOR UNDERGOING EDP TRAINING

ATTESTED PHOTO
OF THE BENEFICIARY

1 Name and Address of the beneficiary
2 Name of the Activity
3 Location of the Unit
4 Whether the beneficiary belongs to
SC/ST/OBC/Minority/Ex. Servicemen/
PHC/Women OR General
5 Name of Financing Bank with Add
6 Total Cost of the Project C.E. W.C.
7 Amount sanctioned with date
8 If the beneficiary is Institution, Name ___________________
Trust, Co.op Society, Name &
Designation of the Representative Designation _________________

I hereby sponsor Shri/Smt/Kum _______________________ undergoing EDP training at your Training
Institute.

Signature of the Branch Manager


65
(With Seal)
Place :
Date :

To,
1) The Principal,
_______________

2) The State/Divisional Director
KVIC ____________ for kind information

....................................................................................................................................
( Certificate to be issued by Training Centre )

Shri/Smt/Kum _________________________________sponsored by the above said Bank
has undergone 2-3 weeks EDP Training from ____________to __________kindly send the
recoupment of the expenditure of Rs. ___________________________at the earliest.

Signature of the Principal/Incharge
of the Training Centre
Place :

Date :

To,
The State Director,
Khadi and V.I. Commission,
________________________
_________________________

To,
The Divisional Director,
Khadi and V.I. Commission
___________________
___________________
Copy to : The Branch Manger (Financing Branch)
______________________________________
______________________________________


66

J
ACTION PLAN FOR PUBLICISING PRIME MINISTER
EMPLOYMENT GENERATION PROGRAMME (PMEGP)

I. OBJECTIVE :
To promote and publicize the Scheme of PMEGP among the target
audience, i.e., rural artisans and unemployed persons in rural areas as
well as bankers, policy makers and related organizations working for
rural development.

Utilization of effective medias of mass communication like Print
Media including press advertisements, leaflets, posters, etc., Electronic
Media including Radio and TV, Out-door Media, i.e., Hoarding,
Awareness Camps, etc.

II. ACTION PLAN :
To achieve the above objective, it is proposed to go in for the
following activities through the field offices of KVIC as well as
centralized campaign from the Central Office :

I) ADVERTISEMENT CAMPAIGN :

A) Print Media :
The Print Media includes the following :
a) Newspapers
b) Magazines
c) Posters, leaflets, etc.

It is proposed to go in for announcement advertisement of half page
on PMEGP in leading newspapers of English, Hindi and vernacular
newspapers, State-wise, announcing the launching of PMEGP Scheme
alongwith its salient features at DAVP rate. This will be followed by
advertisements and press features on PMEGP based on the local
circulation figures and their reach in rural areas for promoting the
scheme. Advertisement will be released on special occasions and
events like

67

 Independence Day,
 Republic Day,
 Mahatma Gandhi Jayanti,
 Holi,
 Consumers Day,
 Environment Day, Women's Day,
 Ambedkar Jayanti, etc.
and events like National Exhibitions, Seminars at Vigyan Bhavan,
Ashoka Hall, etc. Similarly, advertorials will be published in leading
magazines like India Today, Outlook, Frontline, In-flight magazines
like Namaskar, Darpan, Swagat, other magazines like Women's Era,
Saritha, Grihalakshmi and regional magazines like Malayala
Manorama, etc. Leaflets and posters will be printed for promoting
PMEGP Scheme which could be displayed in various KVIC/KVIB
offices, Banks and distributed in events like Awareness Camps,
Workshops, Exhibitions, Seminars, etc. and also in form of mailers in
newspapers and clip mail.

B. Electronic Media :
The Electronic advertisement will consist of the following :
i) Radio jingles
ii) TV Advertisement spots
iii) TV Strips
iv) Sponsoring Programmes like Question- answer on PMEGP.
v) Interviews of Chairperson, CEO, etc.
vi) TV Serial on PMEGP.
vii) Short film on PMEGP taking in success stories of REGP and
projecting the future potential of PMEGP and its benefit for
rural India.
viii)Advertisement on Internet in various sites like Yahoo, google,
redifmail, msn.com, etc.
DAVP rates will be insisted on all electronic media advertisements.

68

C. Out-door Publicity :
Out-door Publicity will be through following methods :
i) Hoardings at Airports, Railway Stations, Bus-stands, etc.
ii) Flex banners
iii) Translites
iv) Bus panels
v) Train panels
vi) Advertisement on train tickets

The hoardings will be put up before Collectrate Office, Bus-stands,
Block Panchayats and Railway Stations or Panchayat Office at District
level for promoting the scheme of PMEGP. Hoardings will also be put
up in all Airports of all State Capitals. It is proposed to target 300
districts for 2008-09 for hoardings. The hoardings will be installed
locally by the concerned State/Divisional Directors. The creative will
focus on PMEGP Scheme and invite unemployed artisans and rural
people to avail the benefit of the Scheme which shall be prepared
with the help of professional advertising agencies.

III. PRESS CONFERENCE AND PRESS PUBLICITY:

Adequate coverage will be given for promoting PMEGP in the form
of features and articles. For this purpose, regular press interaction,
press meets and press conferences will be organized coinciding with
events, achievements, etc. A professional in the area of press liaison
and media relations will be engaged on contract basis for this
purpose.

IV. PRINTING OF PUBLICATIONS, LITERATURES, ETC.:
It is proposed to bring out following literature/publications for
promoting PMEGP :-
i) 200 project profiles for benefit of potential beneficiaries.
ii) Leaflet in English and Hindi and local vernacular language on
PMEGP and its salient features.

69

iii) A Hand Book on PMEGP and its operational modalities for the
benefit of KVIC and KVIB field offices and banks.

iv) A Book on Success Stories on REGP Units which could be a
motivating factor for potential PMEGP beneficiaries.

V. SETTING UP OF PMEGP WEBSITE :

REGP/PMEGP Website has already been designed and is in the
process of finalization. The site will feature all relevant circulars,
policy guidelines as well as data base of REGP Units and their
products. This will also feature new events, policy circulars, details
of major achievements, progress report, etc.

VI. AWARENESS CAMPS/People’s Education Programme :
For promoting PMEGP Scheme effectively in rural areas, it is
proposed to organize awareness campaigns at district-level by
involving following agencies :
i) Panchayat Raj Institutions.
ii) Nehru Yuva Kendra.
iii) Women Development Organizations.
iv) State-level SC/ST and Minority Development Organizations.
v) Banks.
vi) KVI institutions.
The focus of the campaign will be to orient rural youth including women
with focus on SC/ST and Minorities on PMEGP and motivating them to
avail the benefit of the Scheme for self-employment. It is proposed to
have atleast one campaign in each district, i.e., 603 campaigns per year
which can be organized by KVIC, KVIB or a reputed NGO including Khadi
Institution. Banks will also be involved to brief about the Scheme and
monitor the proposals received out of such campaigns. A detailed list of
the potential beneficiaries will be maintained by the concerned
State/Divisional Office of KVIC and application forms will be distributed
to collect the data of the potential beneficiary and through details of the
project he/she is interested to set up. Screening will be done by local
Committee of the applications so received and the screened applicants
can be provided training/skill development through nearby MDTC or

70

accredited centers after which they shall be provided the support in
project formulation and then project will be submitted to banks for
sanction. The Banker will also be involved in the local Committee so as
to ensure sanction of viable projects under PMEGP.

The PEP under Publicity will also be utilized for purpose of
promoting PMEGP and related Schemes like SFURTI, RISC, etc.

Pmegp scheme guidelines

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