Chief Minister Employment Generation Programme

The Chief Minister Employment Generation Programme (CMEGP) – is a scheme launched by the state government of Maharashtra. It aims to support new entrepreneurs in starting businesses and establishing enterprises. The government offers cash credit or term loans through this scheme. 

The sanctioned project cost depends on the type of enterprise set up and includes both rural and urban areas. For the manufacturing sector, the project cost is limited to ₹50 Lakhs, while for the service sector, the cost is capped at ₹10 Lakhs.

The subsidy rate varies depending on whether the enterprise is in an urban or rural area. 

The primary objective of the CMEGP scheme is to promote the establishment of more business opportunities for micro and small enterprises. Additional objectives look to:

• Establish 1 Lakh micro and small enterprises over the next 5 years

• Increase job opportunities within the state

• Achieve the targeted employment of 8-10 Lakh

• Create 10,000 enterprises with the Directorate of Industry

Here are some key features of the scheme:

• The project cost is maximum ₹50 Lakhs for manufacturing and ₹10 Lakhs for services

• It offers a comfortable repayment period – 36-84 months, with an additional 6-month moratorium

• The programme is administered by the Maharashtra government and the industry directorate under the industries department

• The program is implemented through the regional investment centre, Maharashtra State Khadi Board, and Industrial Development Corporation board under the director of enterprises and banks 

The Chief Minister Employment Generation Programme offers several benefits, including an easy credit facility for startups. Other key advantages include:

• Generating direct and indirect employment opportunities for youth, particularly in rural or underdeveloped areas

• Encouraging individuals to start small businesses by offering financial assistance, skill development, and resources

• Access to loans, grants, or subsidies at lower interest rates to support business ventures and training

• Growth opportunities of various sectors like agriculture, technology, and handicrafts in the country

• Promoting regional economic growth through job creation, increased production, and innovation

The funding provided for the establishment of businesses in the state depends on the area of the unit and the category you fall under. The funding is as follows:

The interest rate on a loan from CMEGP depends on the Return On Investment (ROI) as follows:

• When the ROI is 12.95%, the applicable interest rate will be the Prime Lending Rate (PLR) of 2.75%

• In all other cases, the PLR will be 15.75% per annum 

The repayment tenure for a term loan ranges from 36 to 84 months. This excludes the additional 6-month moratorium period. 

To be eligible for this loan scheme, you need to be a resident of Maharashtra, and only one person from your family can apply. Other eligibility criteria include:

• You need to be a citizen of Maharashtra

• Only one person from a family, either yourself or your spouse, can apply for the scheme

• Any new micro or small enterprise setup in Maharashtra can receive this loan

• You need to apply exclusively through the CMEGP portal

• You have to be between 18-45 years of age. For special categories, the age limit is reduced by 5 years

• You must be an unemployed youth or belong to a special category

• For project units above ₹10 Lakhs, the qualification is minimum 7th standard pass, and for those above ₹25 Lakhs, it is a 10th pass

To apply for the CMEGP scheme, you need to have the required documents, including an education certificate and a caste certificate.

• Passport-size photographs

• Aadhaar Card

• PAN card

• Birth certificate, residence certificate, or school transcripts

• Caste certificate if applicable 

• Domicile certificate

• Undertaking form

• Project Profile 

• Special Category certificate

• Population certificate if you are a rural applicant

• Clearance/approved certificate provided by the bank

In a family, only one person is allowed to apply for CMEGP Maharashtra. Additionally, individuals who have received benefits from other government loan schemes are ineligible to apply. 

• Only one person per family, either you or your spouse, can apply for the CMEGP Maharashtra scheme 

• Individuals who have received benefits from other government loan schemes are ineligible 

Here are the steps to apply for the CMEGP Maharashtra scheme and receive financial assistance.

1. Visit the official website of Chief Minister Employment Generation Programme (CMEGP) at https://maha-cmegp.gov.in/

2. Fill out the provided application form by clicking on ‘Click here to download’ in the ‘Notice’ section. District-level Scrutiny and Coordination Sub-Committee (DLSCC) under the DICs will check the form and prepare a list of applicants.

3. The District Level Task Force Committee (DLFTC) will approve the list of applicants and forward it to the bank

4. The bank will sanction the loan amount and Entrepreneurship Development Programme (EDP) training will be provided to budding entrepreneurs

5. The bank will claim the subsidy

6. The Head Office (HO) will review and approve the claim, following which the margin money will be disbursed 

The following CMEGP scheme does not have an annual target for disbursing loans to applicants. Some additional challenges include:

• Lack of infrastructure

• There is a risk of non-performing assets in startup businesses

• Low-cost labour results in low-quality work