Gov't Scheme Helps Launch Gwalior Herbal Unit
Under the Prime Minister's Employment Generation Programme (PMEGP), an entrepreneur in Gwalior, Meenakshi Nagar, built a business focused on herbal rituals. The unit now reportedly employs more than 20 women. The story was shared to highlight the impact of government schemes on fostering micro-entrepreneurship.
- The Prime Minister's Employment Generation Programme (PMEGP) is a credit-linked subsidy scheme where beneficiaries can receive a margin money subsidy of 15% to 35% of the project cost. For a woman entrepreneur in an urban area like Gwalior, the subsidy is 25% of the project cost, with only a 5% personal contribution required. - The Khadi and Village Industries Commission (KVIC) is the national nodal agency for implementing the scheme. Beyond disbursing subsidies, KVIC's mandate includes promoting rural industries like herbal products, providing skill development, and assisting with marketing through fairs and its own retail outlets. - For the period of 2021-22 to 2025-26, the government has approved an outlay of ₹13,554.42 crore for the PMEGP scheme. The goal is to support the establishment of approximately 400,000 new micro-enterprises and create an estimated 3 million employment opportunities. - The PMEGP scheme prioritizes smaller ventures, with a significant number of assisted projects having a cost of less than ₹10 lakh. As per RBI guidelines, loans up to ₹10 lakh under this program are free from collateral security, lowering the entry barrier for first-time entrepreneurs. - In the state of Madhya Pradesh, where Gwalior is located, a study noted that 1,138 enterprises were supported under the program in a single year, indicating the scheme's long-term presence in the region. - This program is part of a broader government focus on supporting artisans and traditional industries. The newer PM Vishwakarma scheme, launched in 2023, specifically targets 18 traditional trades, offering skill training with a ₹500 daily stipend and up to ₹15,000 for modern toolkits.
