Chief Ministers self Employment Generation Programme (CMEGP) was introduced in Karnataka in order to set up the micro-enterprises in rural parts of the state.
By investing capital up to INR 10 lakhs through district industries centre and Karnataka State Khadi and Village industries board, CMEGP encourages self employment among aspirant rural entrepreneurs. The main idea behind the launch of this scheme is eradicating unemployment and generation jobs.
CM Self Employment Generation Programme – Quick Facts
- Comprehensive detail of the project is available here
- The detailed answers for the frequently asked questions are available by clicking the here
- More information can be collected from here or here
The scheme has two components -the urban and rural scheme. Rural area means any area classified as a village as per the revenue record of the state, irrespective of population. The rural area will also include any area though it classified as a town but its population does not exceed 20,000 persons as per census 2001.
Aim Of Chief Ministers Self Employment Generation Programme
This project aims at providing all necessary assistance to set up Micro-enterprises to first-generation entrepreneurs. CMEGP’s assistance includes new ideas, planning, building project proposal, providing loans and subsidies under various loan schemes from different banks like nationalised/commercial/regional and rural banks.
The main objective of the programme is to make them self employed and create an additional avenue for employment.
Role Of Financial Institutions
Financial institutions have to sanction loans to applicants recommended by district industries centres through interview. Banks have to take prior approval from the District Level Task Force Committee (DLTFC) for sanctioning higher loans than the recommended amount.
Chief Ministers Self Employment Generation Programme – Eligibility criteria
- Minimum: 18 years
- Maximum: 35 years for general
- Maximum 45 years for Special Category (SC/ST/OBC/minorities/Ex-servicemen/PPH/Women)
For projects worth of Rs 5 lakhs and above minimum qualification is 8th standard pass.
- Scheduled caste: 15%
- Scheduled Tribe:7.5%
- OBC: 27%
- Physically disabled: 03%
- Ex-servicemen: 01%
- Minority: 05%
- Women Overall: 30%
How To Apply For Chief Minister Self Employment Generation Programme
The eligible candidates can apply online here. Once this link is clicked the candidate needs to select the agency from which he wants financial support. Aadhaar is compulsory to avail the benefit. The application can be downloaded from here. The submitted application can be edited here: Below is how you can apply:
- District Industries Centres (DICS) and Karnataka Khadi and Village Industries Board (KVIB) call applications from unemployed First Generation Entrepreneurs
- First Generation Entrepreneurs can submit their applications for setting ups of manufacturing and service units.
- DIC and KVIB present this application before the district-level task force committee.
- After conducting an interview, committee and recommends applications to nationalised/commercial banks/Regional Rural banks for sanction of composite loan.
- DIC and KVIB and other agencies will provide assistance like sanctioning loans, power supply, approval from local bodies and allotment of land or sheds.
- DIC’s and KVIB ensure timely commissioning of the projects and monitor the progress on a monthly basis.
- This assistance will be provided only for first-generation entrepreneurs
- Units can’t claim this fund for expansion/modernization/diversification
- Applicants should not avail any loans under PMEGP or any other scheme.
- An applicant has to undergo EDP training before the sanction of the subsidy. Financial banks can release loan to the applicants but they have to complete the training and has to produce the certificate before the sanction of the subsidy.
- The applicants who have already undergone one week EDP training from CEDOK, RUDSET, RSETI or any other government recognised institutions are exempted from EDP training.
- No income limit
Chief Ministers Employment Generation Programme Application – Documents To Be Enclosed
- Application with a recent passport photo
- Project report
- Age proof
- Education qualification documents
- EDP training certificate
- Voter ID/ Ration card
- Permission from Grama Panchayath
- List of machinery to be purchased
- caste certificate
- Physically handicapped certificate
- Ex-servicemen certificate
Details Of The Subsidy
Subsidy from the Government (INR. in Lakhs)
|Category Of Beneficiaries||Promoter’s Contribution On Project Cost||Subsidy On The Project Cost|
|General||10%||25% (Maximum 2.50 lakhs)|
|Special Category (SC/ST, backward community, minorities, women, ex-servicemen/physically handicapped)||5%||35%(Maximum 3.50 lakhs)|
Chief Ministers Self Employment Generation Programme – How To Obtain Subsidy
An applicant can claim the subsidy after the release of the composite loan.
Soon after obtaining a sanction letter of the subsidy Joint Director for District industries centre will certify all the necessary documents.
Bank will deposit the subsidy amount in the name of the beneficiary.
Joint verification committee will examine the working condition of the unit and repayment of the loan, after completion of three years from the date of release of the first instalment of the loan.
- Khandasari and jaggery manufacturing units
- Photo studio and color processing and instant photo printing enterprises
- Photocopying/Xerox machines/fax machines/data entry/data recovery enterprises
- Laundries including power laundries
- Popcorn and ice candy making enterprises
- Coffee roasting and grinding units with less than 2 ton capacity per day
- Clock and watch/mobile/computer and hardware equipment repair enterprises.
- All industries of mobile nature like tent house, cable network, centring works, vermin compost, trasher etc.
- All industries of saloons Ayurvedic spas, natural therapy centres etc.
- Hotels and restaurants excluding outlets serving liquor, sales of beedies/cigarettes and other tobacco-based products.
Negative List Of CMEGP
Any industry/business connected with meat (slaughtered)
- Production/manufacturing or sale of intoxication items like Beedi/Pan/Cigar cigarette any hotel or dhaba or sales outlet serving liquor.
- Any industry or business connected with the cultivation of crops or plantations like coffee, tea, rubber etc. sericulture or Cocoon rearing, and floriculture and horticulture.
- Animal husbandry like pisciculture, piggery, poultry etc.
- Manufacturing of polythene carry bags of less than 20 microns thickness.
- Manufacturing any other item which causes environmental problems.
- Breweries and distilleries of all types excluding winery
- fertilisers mixing units
- Units engaged in re-packing of drugs/medicines/chemicals without any processing or value addition
- All types of Saw Mills excluding manufacture of particleboard, Low and Medium and high-Density Fiber Boards
- Cigarettes, Beedie, Cigars, Gutka & Tobacco based products manufacturing businesses
- Azoic and Reactive Dyes manufacturing enterprises
- Fire Cracker manufacturers
- Industries manufacturing and / or utilizing Ozone-depleting substances
- Cassette recording both audio & video] companies
- Cyanide Manufacturing enterprises
- Mining and related equipment
- Limekiln and burnt lime units
- X-ray clinics and clinical, pathological laboratories, and scanning, M.R.I. testing enterprises Units engaged in the manufacture of Chrysolite Asbestos (White crystal)
- Massaging Centres
- All industries of mobile nature like concrete, rigs, tar mixing and hot mix plants including site oriented industries.
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