From Vision to Reality: PMEGP Powers J&K's Job Market

Srinagar, Jan 7: The Prime Minister's Employment Generation Programme (PMEGP) has emerged as a transformative initiative in Jammu and Kashmir, making significant contributions to job creation and economic development.

According to official data released up to December 30, 2024, the PMEGP has successfully generated approximately 7,35,436 jobs since its inception in FY 2008-09. This impressive figure reflects the scheme’s effectiveness and its pivotal role in supporting local entrepreneurs.

Since its launch, the PMEGP has extended assistance to 92,396 units across the region, with a cumulative margin money subsidy disbursement totalling Rs. 1,849.17 crore over the last 16 years. The financial support provided by PMEGP is crucial for entrepreneurs in establishing micro-enterprises, thereby fostering self-employment and reducing unemployment rates in the area.

Recent trends show a particularly strong performance, with FY 2021-22 marking a record high for both unit assistance and job creation.

During this fiscal year alone, the PMEGP assisted 21,648 units, resulting in the creation of approximately 1,73,184 jobs.

This peak highlights the program's role in stimulating economic activity and creating sustainable employment opportunities for the youth in Jammu and Kashmir.

The current financial year (2024-25) has also commenced on a positive note, with 2,991 units receiving assistance, which has already generated 23,928 jobs. This follows a robust performance in FY 2023-24, where 15,065 units were supported, resulting in the creation of 1,20,520 employment opportunities. This upward trend is indicative of the increasing demand for the PMEGP and its adaptability to the needs of the local economy.

Since FY 2019-20, the PMEGP has demonstrated consistent growth, with annual assistance ranging from 5,365 units to over 21,000 units.

The margin money subsidy disbursement has particularly varied, peaking at Rs. 467.19 crore  in FY 2021-22. This significant financial backing enables entrepreneurs to invest in their businesses, ultimately leading to job creation and economic stability.

The PMEGP is a major credit-linked subsidy program designed to generate self-employment opportunities through the establishment of micro-enterprises in the non-farm sector. It primarily assists traditional artisans and unemployed youth in both rural and urban areas. The Khadi and Village Industries Commission (KVIC) serves as the nodal agency at the national level, while state-level implementation is carried out through various local bodies.

The programme allows for a maximum project cost of  Rs 50 lakh in the manufacturing sector and Rs. 20 lakh  in the service sector. The banks involved in the scheme will sanction 90% of the project cost for the general category and 95% for special categories, which include SC, ST, OBC, minorities, women, ex-servicemen, and differently-abled individuals.

The PMEGP particularly emphasizes inclusivity, as nearly 50% of the units supported are established by SC/ST/Women, and around  80% of these units are situated in rural areas. The average subsidy provided to generate employment is approximately Rs. 32,440 per unit, showcasing the program’s efficiency in providing financial assistance to new entrants in various industries.