Chief Minister Employment Generation Programme (CMEGP) – Maharashtra

GR No: Plan-2019 / Q.No.121 / Industry-7 dated 1-8-2019

1). The Scheme:

Government of Maharashtra has approved the introduction of a new credit linked subsidy programme called Chief Minister Employment Generation Programme (CMEGP) for generation of employment opportunities through establishment of Micro & Small Enterprises (project cost limited to Rs. 50 lacs) in rural as well as urban areas in the state.

2) Quantum and Nature of Financial Assistance, funding under CMEGP:

Categories of beneficiaries under CMEGP	Beneficiary’s Contribution (of project cost)	Rate of subsidy (of project cost)		Bank loan
Area (location of project/unit)		Urban	Rural	Urban	Rural
General Category	10%	15%	25%	75%	65%
Special Category (includes SC / ST /Women/ Ex- servicemen / differently abled)	5%	25%	35%	70%	60%

Note:

1. The maximum cost of the project/unit admissible under manufacturing sector is Rs.50 lakh. However, if the actual project cost is higher than the prescribed limit and the applicant seeks to become eligible under the scheme by manipulation (by reducing the cost of project) then such projects/units will not be considered.

2. The maximum cost of the project/unit admissible under service , Agro-based/ Primary Agro processing sector, E-vehicle based goods transport and other businesses, single brand service ventures (single brand-based chains, mobile service ventures) is Rs.10 lakhs.

3. Beneficiary’s Contribution in the project cost will be 5% to 10 % as per the Categories of Beneficiaries under CMEGP scheme and balance amount of the total project cost will be provided by Banks as term loan.

3) Eligibility criteria under the scheme:

1. Any individual between 18 to 45 years of age. For Special category (including SC/ST/Women/ Ex-servicemen/Differently abled) age is relaxed by 5 years.

2. Applicant(s) should be resident of Maharashtra. In case of birth outside Maharashtra, the applicant must possess domicile certificate.

3. There will be no income ceiling to become eligible for availing financial assistance.

4. The constitutions eligible for setting up new units/ventures established under the scheme are Proprietorship, Partnership and Self-Help Groups (SHG’s) registered with respective authorities.

5. For project/units cost between Rs.10 lakh to Rs.25 lakhs, the required educational criteria for the applicant is minimum 7th standard pass and for project/units above Rs.25 lakh the required educational criteria for the applicant is minimum 10th standard pass. The applicants should also preferably possess respective / relevant skills required for the project.

6. Only one person from a family will be eligible under the scheme. (Definition of family includes Self and spouse)

7. Assistance under the Scheme is available only for new projects/ventures.

8. Registered Self-Help Groups (including those belonging to BPL provided that they have not availed benefits under any other Central & State scheme) are eligible for assistance.

9. Existing Units and units that have availed benefit under PMRY, REGP, PMEGP or any other subsidy linked scheme of Government of India or State Government and also units that have already availed Government Subsidy under any other scheme of Government of India or State Government are not eligible under the scheme.

4) Other Eligibility Conditions under CMEGP:

1. For assistance as a Special Category, a certified copy of the caste / validity certificate or relevant document issued by the competent authority is required to be furnished by the applicant to the concerned implementing agency at the time of making application. Applicants with 21 types of benchmark disabilities covered under “The Rights of Persons with Disabilities Act, 2016” should furnish a valid disability certificate.

2. A certified copy of registration of SHG / constitution of the firm (Registrar of Firms) of the proposed project / unit is required, wherever necessary.

3. Cost of the land should not be included in the Project cost. Cost of the ready built-up work- shed/gala/workshop is admissible subject to maximum 20% of the total project cost.

4. Long lease / rental Work-shed/Workshop/gala can be included in the project cost subject to restricting such cost to be calculated proportionately on a pro-rata basis for three years.

5. Project cost will include Capital Expenditure (except cost of land) 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.

6. For Service sector & Agro based activities as specified above, new projects Work-shed/shop the maximum cost eligible is limited to 20% of total project cost whereas maximum working capital for such projects will be limited to a maximum of 30% of the total project cost.

7. Assistance under CMEGP is applicable to all new viable micro, small enterprises (project cost limited to Rs.50 lacs) including Village Industries.

8. SC & ST applicants will have reservation of 20% in the total yearly target.

9. Women applicants will have reservation of 30% in the total yearly target.

10. Differently abled applicants will have reservation of 3% as per the provisions of the Social Welfare Department GR dated 24.2.2019 in the total yearly target.

Note:

1. The SHGs registered as such specific SC/ST/Women/Differently abled/Ex-Servicemen SHGs or Composite, with necessary provisions in the bye-laws to that effect with concerned authorities are eligible for subsidy applicable to special category under the scheme. However, the SHGs not registered as special category as above, will be eligible for Subsidy applicable to general category.

2. Only one person from the family is eligible for obtaining financial assistance for setting up of projects under CMEGP. The “family” includes self and spouse.

5) Eligible Units under the scheme:

New Manufacturing, Service, Agro-based & Primary Agro processing activities, E-vehicle based goods transport and other businesses, single brand service ventures (single brand-based chains, mobile service ventures) sector projects/units, will be eligible under the CMEGP scheme. State level Monitoring and High-Power Committee will publish list of such eligible and non-eligible projects / units (Negative list) separately as and when required.

6) CMEGP Portal:

To implement a hassle-free CMEGP scheme the complete process is made online. A dedicated portal viz. https://maha-cmegp.gov.in has been developed for speedy and transparent implementation of the Scheme.

7) Bank Finance:

1. The Bank will sanction loan of 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. The term loan disbursement shall either be one-time or phase wise depending upon the nature of the project.

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.

3. Though Banks will claim Margin Money (subsidy) based on sanction of Capital & working capital expenditure of the project, the Margin Money (subsidy) if claimed in excess, must be refunded immediately to DOI, after the final disbursement.

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 DOI at the end of the third year.

Rate of interest and repayment schedule – Normal prevailing 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.

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