Central SchemeCentral Govt (KVIC / State KVIB / DIC)
Prime Minister's Employment Generation Programme (PMEGP)
A credit-linked central government subsidy scheme administered by KVIC and DIC to establish new micro-enterprises in manufacturing (up to ₹50 Lakhs) and service sectors (up to ₹20 Lakhs).
Subsidy Rates by District Category
Category A (Remote Hills)
Chamoli, Uttarkashi, Pithoragarh, Rudraprayag, Champawat
35% margin money grant in rural areas / 25% in urban areas
Category B (Mid Hills)
Almora, Bageshwar, Pauri, Tehri Garhwal
35% margin money grant in rural areas / 25% in urban areas
Category C (Foot Hills)
Nainital & Dehradun hill areas
35% margin money grant in rural areas / 25% in urban areas
Category D (Plains)
Haridwar & Udham Singh Nagar
25% margin money grant in rural areas / 15% in urban areas
Eligible Assets & Expenditure
- •Primary processing & manufacturing machinery
- •Workstation setups, electrical equipment & workshop tools
- •Essential workshop civil shed construction
- •Testing, packaging & service instruments
Ineligible Costs (Exclusions)
- •Expansion of already existing running units (new projects only)
- •Retail trading, showrooms or plain grocery shops
- •Prohibited negative industries (tobacco, liquor, meat processing)
Additional Policy Incentives & Reliefs
- ✓Uttarakhand is classified as Special Category / Hilly State receiving highest 35% subsidy rate
- ✓Low own contribution: only 5% to 10% promoter investment required
- ✓Covered under CGTMSE collateral-free bank guarantee without third-party guarantee
Mandatory Filing Checkpoints
- 1.Minimum 8th pass qualification for projects above ₹10 Lakhs (mfg) or ₹5 Lakhs (service).
- 1.Online portal filing with KVIC before project sanction by financing bank.
- 1.EDP (Entrepreneurship Development Programme) training completion.
Looking for industry-specific guidelines? Explore our dedicated section on Manufacturing Subsidies.
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